How to Evaluate or Appraise Septage Management Project

How to Evaluate or Appraise Septage Management Projects

By: Dave Robbins, BeSecure

Objective Consistent, fair and objective reviews Technical accuracy Timely service Useful feedback and suggestions for program improvement Accessibility treat applicants like customers High level of credibility in decision making

Reviewers should strive to provide:Hint: Be prepared! Reviewers performance will be subject to periodic audits and evaluations.

How to evaluate projectsChecklistsToolkitsCase studiesPre-application meetingsFormal application presentations

Hint: Document all applicant contacts, findings and decisions

Make use of resources including:

Coming soon from USAID (Summer, 2015)Septage Management Decision Support Tool Over-reliance on technical assertions by the applicant. Reviewers should request: Technical Pitfalls Design reports that are fully documented Case studies and examples of successful applications especially for proprietary equipment Documentation for waste strength and volume Warranties for process equipment Effluent quality guarantees by equipment provider or engineer

Never assume the information is correct just because it is presented in a report. Verify!!Technical Pitfalls

Failure to verify social acceptability. Reviewers should request: Social Pitfalls Letters of support for projects from stakeholders, LGU, WD and regional officials Documentation of stakeholder involvement Reports from public hearings and meetings

LGU Appraisal of Social Soundness. Fair distribution of benefits and burdens Failure to verify financial viability. Reviewers should verify: Financial Pitfalls Documented cost for COPEX and OPEX Tariff and rate study (affordability) Projections that reflect inflation, community growth Reuse and resource recovery options fully explored What happens to the collected money (tariffs)? Ring fencing and transparency

Performing Financial review

Compare CAPEX and OPEX estimates against cost curves Have all potential sources of funding been identified: Internal Revenue Allotment Donor grants or low interest loans Tariffs and user fees Landbank, commercial banks Government cost share Have private sector opportunities been explored? Public Private Partnerships Build, Operate, Transfer Revenue projections based on tariffs

8Financial PitfallsProjectionsCurrent septage tariff per cubic meter of water2.5PesosAverage monthly cost per residential user45Pesos Average monthly cost per commercial user100PesosCommunity Growth Rate - residential5%Community Growth Rate - Commercial/Institutional2%Adjusted overall growth rate3.8%Annual Inflation rate5% Daily flow at year 09cubic meters Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10Number of homes6,3006,6156,9467,2937,6588,0418,4438,8659,3089,773Number of commercial/institutional700714728743758773788804820837Daily flow (cubic meters per day)9101011111112121313Monthly Income - Residential283,500297,675312,559328,187344,596361,826379,917398,913418,859439,802Monthly Income - Commercial70,00071,40072,82874,28575,77077,28678,83180,40882,01683,656Total monthly income353,500369,075385,387402,471420,366439,111458,748479,321500,875523,458Total Annual income4,242,0004,428,9004,624,6414,829,6555,044,3955,269,3385,504,9825,751,8526,010,4976,281,496Total residual (annual)795,521823,785848,193868,123882,881891,703893,740888,0532,228,8262,204,467Collection expenses1,418,1071,543,0851,679,0781,827,0551,988,0742,163,2842,353,9342,561,3872,787,1233,032,752Operation expense subject to inflation673,150706,808742,148779,255818,218859,129902,085947,190994,5491,044,277Fixed Operations Expenses1,355,2221,355,2221,355,2221,355,2221,355,2221,355,2221,355,2221,355,22200total Expenses3,446,4793,605,1153,776,4483,961,5324,161,5144,377,6344,611,2414,863,7983,781,6724,077,029Total Residual (cumulative)795,5211,619,3062,467,5003,335,6224,218,5035,110,2076,003,9476,892,0009,120,82611,325,293Aspects of good septage management plans

Programmatic aspectProject is consistent with Sustainable Sanitation PlanThere is support from LGU, WD, regional officialsThere is collaboration with private sectorThere are no opportunities for combining programsThe treatment site is appropriate for the intended use?The site was selected through public consultationThe financial and business models are viableThe collection system is viableThe technology package is feasible There is a local ordinance to support the programThe program will be promoted over the long termOpportunities for reuse of biosolids have been explored