Public Disclosure Authorized Public Disclosure Authorized ENVIRONMENTAL MANAGEMENT IN Public Disclosure Authorized BOLIVIA Innovations and Opportunities Public Disclosure Authorized Sustainable Development Department Latin America and the Caribbean Region The World Bank Report Nº 73256-BO ENVIRONMENTAL MANAGEMENT IN BOLIVIA Innovations and Opportunities (June, 2013) Sustainable Development Department Latin America and the Caribbean Region The World Bank © 2013 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e mail: [email protected]. Note: Currency Equivalents: Boliviano (Bs.) US $1 = Bs. 7,0; Fiscal Year: January 1- December 31. Contents Acknowledgments .......................................................................................................................................................... viii Abbreviations ...................................................................................................................................................................... x Executive Summary ........................................................................................................................................................... 1 Chapter 1. Improved Water Supply, Sanitation, and Hygiene: Health Impacts ................................................ 14 1.1 Introduction .................................................................................................................................................. 15 1.2 Water Supply, Sanitation, Hygiene, and Poverty .................................................................................. 17 1.3 Annual Cost of Inadequate Water Supply, Sanitation, and Hygiene ............................................... 21 1.3.1 Burden of Diarrheal Disease from Inadequate Water, Sanitation, and Hygiene ..................... 21 1.3.2 Baseline Diarrheal Health Data ........................................................................................................... 22 1.3.3 Estimated Cost of Health Effects ........................................................................................................ 28 1.3.4 Averting Expenditures ........................................................................................................................... 29 1.4 Methodology of Cost-Benefit Analysis of Interventions in Bolivia’s Water Supply, Sanitation, and Hygiene Sector .................................................................................................................................................... 30 1.5 Health Benefits of Water Supply, Sanitation, and Hygiene Program ............................................... 33 1.6 Conclusions ................................................................................................................................................... 37 Chapter 2. Innovation in Solid Waste Management: Options for the Future ................................................... 38 2.1 Overall Context and Status of the Solid Waste Sector in Bolivia ................................................... 39 2.1.1 Volume and Types of Solid Waste ..................................................................................................... 39 2.1.2 Operational Management of Urban Sanitation Services ................................................................ 40 2.2 Strengthening the Sector ........................................................................................................................... 46 2.3 Key Implementation Issues: Financing, Regulation, Management and Contractual Models ....... 48 2.3.1 Financing Models for Urban Solid Waste Management ................................................................. 48 2.3.2 Regulation ................................................................................................................................................. 52 2.3.3 Management Models .............................................................................................................................. 53 2.3.4 Contractual Models ................................................................................................................................ 55 2.4 Options for the Future ............................................................................................................................... 55 2.4.1 Financing .................................................................................................................................................... 55 2.4.2 Regulation ................................................................................................................................................. 58 2.4.3 Management Models .............................................................................................................................. 60 2.4.4 Contractual Models ................................................................................................................................ 61 2.5 Conclusions ................................................................................................................................................... 62 Chapter 3. Reuse of Wastewater to Mitigate Water Scarcity: Case Studies in Cochabamba and Tarija .. 63 3.1 Current Situation Regarding the Reuse of Wastewater for Irrigation ........................................... 64 3.2 Reuse and Technology of Wastewater Stabilization Reservoirs ...................................................... 65 3.3 Case Study 1: Evaluation of the Stabilization Reservoir in Cochabamba as a Recommended Solution for Wastewater Reuse .............................................................................................................................. 69 3.3.1 Current Situation in the Wastewater Treatment Plant Area ...................................................... 69 3.3.2 Recommended Solution ........................................................................................................................ 69 3.3.3 Cost of Adopting the Proposed Solution ......................................................................................... 70 ii 3.3.4 Economic Evaluation .............................................................................................................................. 70 3.3.5 Impact on the Agricultural Sector ...................................................................................................... 71 3.3.6 Additional Benefits for the Economy ................................................................................................. 72 3.3.7 Results of the Economic Evaluation ................................................................................................... 74 3.3.8 Distributive Analysis............................................................................................................................... 74 3.3.9 Sensitivity and Risk Analysis ................................................................................................................. 75 3.4 Case Study 2: Evaluation of the Recommended Solution for Reuse of Effluents in Tarija ......... 76 3.4.1 Current Situation in the Wastewater Treatment Plant Area ...................................................... 76 3.4.2 Recommended Solution ........................................................................................................................ 77 3.4.3 Stabilization Reservoir Costs ............................................................................................................... 77 3.4.4 Economic Evaluation .............................................................................................................................. 78 3.4.5 Benefits to Farmers ................................................................................................................................ 78 3.4.6 Additional Impact on the Economy .................................................................................................... 79 3.4.7 Economic Evaluation Results ................................................................................................................ 79 3.4.8 Distributive Analysis............................................................................................................................... 80 3.4.9 Fees Required to Cover