The Study of Water Use and Treated Wastewater Discharge Charge Water use chargeforhydropower, aquaculture and recreation Final Report Submitted to The Federal Democratic Republic of Ethiopia Awash Basin Authority MelkaWerer, Ethiopia Prepared by: School of Civil and Environmental Engineering Addis Ababa Institute of Technology (AAiT) Addis Ababa University P. O. Box. 385, Addis Ababa, Tel. + 251- 111-232437 October, 2018 Addis Ababa Awash Basin Authority: The Study of Water Use and WP5: Final Report - Water use charge for hydropower, aquaculture and recreation Wastewater Discharge Charge Generated by 1. Dr Yilma Seleshi (Team Leader & Senior Water Resources Engineer / Hydropower Engineer) 2. Dr Abebe Getahun (Aquaculture expert) 3. Ato Fisum Teshome (Water Resources Engineer) 4. W/t Dure Mulatu (Hydrologist) Approved by:Dr. Geremew Sahilu 2 | Page Awash Basin Authority: The Study of Water Use and WP5: Final Report - Water use charge for hydropower, aquaculture and recreation Wastewater Discharge Charge Contents List of Tables and Figures............................................................................................................... 8 Abbreviations and Acronyms ......................................................................................................... 9 Executive summary ....................................................................................................................... 10 1 Introduction ............................................................................................................................ 18 1.1 Background and problem ......................................................................................... 18 1.2 Understanding of the ToR ........................................................................................ 21 1.3 Objectives of the study............................................................................................. 21 1.4 Team composition .................................................................................................... 21 2 Literature Review................................................................................................................... 22 2.1 Principles of water charging .................................................................................... 22 3 | Page Awash Basin Authority: The Study of Water Use and WP5: Final Report - Water use charge for hydropower, aquaculture and recreation Wastewater Discharge Charge 2.2 Experience in Water Charging (National / International) ........................................ 23 2.2.1 Hydropower charge setting literature review .................................................... 23 2.2.2 Aquaculture charge setting literature review .................................................... 34 2.2.3 Recreation water use charge setting literature review ...................................... 39 3 Method – technical aspect of water charge for hydropower, aquaculture and recreation water uses 42 3.1 Description of the study area ................................................................................... 42 3.2 Conceptual Framework for hydropower water use charge setting .......................... 43 3.3 Conceptual Framework for aquaculture water use charge setting ........................... 48 3.4 Conceptual framework for recreational water use charge ....................................... 50 3.5 Method of Data collection and Analysis .................................................................. 53 3.5.1 Approach for field work.................................................................................... 53 3.5.2 Team composition ............................................................................................. 53 3.5.3 Data Collection Methods .................................................................................. 54 3.5.4 Data Collection Instrument ............................................................................... 54 3.5.5 Sampling ........................................................................................................... 54 3.5.6 Field Visit Plan and Organization ..................................................................... 55 3.5.7 Field Survey Routes .......................................................................................... 55 3.5.8 Field work data and findings............................................................................. 57 4 Charge setting ........................................................................................................................ 69 4.1 Water charge setting for hydropower ...................................................................... 69 4.2 Water use charge setting for capture fishery and aquaculture ................................. 71 4.3 Water use charge for water-based recreation ........................................................... 73 5 Economic aspect hydropower, aquaculture and recreation water use charge setting ............ 74 4 | Page Awash Basin Authority: The Study of Water Use and WP5: Final Report - Water use charge for hydropower, aquaculture and recreation Wastewater Discharge Charge 5.1 Introduction .............................................................................................................. 74 5.1.1 Data collection methods .................................................................................... 75 5.1.2 Sampling ........................................................................................................... 75 5.1.3 Data collection instrument ................................................................................ 75 5.2 Findings.................................................................................................................... 76 5.2.1 Hydropower ...................................................................................................... 76 5.2.2 Fisheries ............................................................................................................ 78 5.2.3 Recreation ......................................................................................................... 80 6 Social aspect hydropower, aquaculture and recreation water use charge setting .................. 81 6.1 Methods of the study ................................................................................................ 81 6.1.1 Literature review ............................................................................................... 81 6.1.2 Survey ............................................................................................................... 81 6.1.3 In-depth interview ............................................................................................. 81 6.1.4 Key informant interview ................................................................................... 81 6.1.5 Focus Group Discussion (FGD)........................................................................ 81 6.1.6 Observation ....................................................................................................... 82 6.2 Data Collection Instruments .................................................................................... 82 6.2.1 Sampling ........................................................................................................... 82 6.3 Findings (Hydropower, recreation and aquaculture) ............................................... 83 6.3.1 Hydropower ...................................................................................................... 83 6.3.2 Recreation ......................................................................................................... 84 6.3.3 Aquaculture ....................................................................................................... 86 6.4 Mitigation of perceived negative impacts on charge ............................................... 89 5 | Page Awash Basin Authority: The Study of Water Use and WP5: Final Report - Water use charge for hydropower, aquaculture and recreation Wastewater Discharge Charge 6.5 Concluding Remarks and Recommendations .......................................................... 89 7 Conclusions and recommendations............................................................................................ 90 8 References .................................................................................................................................. 90 Annex I: ........................................................................................................................................ 96 1 Stakeholder consultation findings .......................................................................................... 96 1.1 Objective of the field visit........................................................................................ 96 1.2 Consultation with AwBA head office at MelkaWorer ............................................ 97 1.3 Consultation with Tendaho reservoir – fish production .......................................... 97 1.4 Consultation with Awash National Park .................................................................. 97 1.4.1 Summary ........................................................................................................... 97 1.4.2 Details of the consultation ................................................................................ 98 1.5 Consultation with Koka hydropower and reservoir ................................................