CUBA WATER/WASTEWATER INFRASTRUCTURE ASSESSMENT COMMITTEE COLLABORATION OPPORTUNITIES FOR ENGINEERS & ECONOMISTS: A “WORK-IN-PROGRESS” TO: ASSOCIATION FOR THE STUDY OF THE CUBAN ECONOMY (A.S.C.E.) MIAMI, FLORIDA AUGUST 7, 2008 BY: HELENA SOLO-GABRIELE, Ph.D., P.E. (ACE) ARMANDO I. PEREZ, Ph.D., P.E. (C-AACE) AS ADVISED BY: JUAN BELT, Ph.D. (USAID) LUIS VELAZQUEZ (USAID)
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CUBA WATER/WASTEWATERINFRASTRUCTUREASSESSMENT COMMITTEE
COLLABORATION OPPORTUNITIES FOR ENGINEERS & ECONOMISTS:A “WORK-IN-PROGRESS”
TO: ASSOCIATION FOR THE STUDY OF THE CUBAN ECONOMY (A.S.C.E.)MIAMI, FLORIDAAUGUST 7, 2008
BY: HELENA SOLO-GABRIELE, Ph.D., P.E. (ACE)ARMANDO I. PEREZ, Ph.D., P.E. (C-AACE)
AS ADVISED BY:JUAN BELT, Ph.D. (USAID)LUIS VELAZQUEZ (USAID)
DISCLAIMER
The opinions expressed in this The opinions expressed in this presentation are those of the authors presentation are those of the authors and do not necessarily represent the and do not necessarily represent the views of their employers or of their views of their employers or of their sponsoring engineering societies.sponsoring engineering societies.
Authors’ knowledge of Cuba is Authors’ knowledge of Cuba is based on limited information based on limited information available mostly on the Internet.available mostly on the Internet.
The advice provided by USAID staff The advice provided by USAID staff represents the staff’s own views and represents the staff’s own views and not necessarily that of the U.S. not necessarily that of the U.S. government.government.
OUTLINE OF PRESENTATION
Role of Committee before and during a Role of Committee before and during a political transition.political transition.
Cuba’s legal and institutional framework Cuba’s legal and institutional framework for the sector.for the sector.
Service delivery modes (including private Service delivery modes (including private operators) and structure of tariffs (user operators) and structure of tariffs (user fees).fees).
Water/wastewater issues in Havana Water/wastewater issues in Havana (sample).(sample).
Lessons learned from other countries.Lessons learned from other countries. Areas of potential collaboration with Areas of potential collaboration with
A.S.C.E.A.S.C.E. Contact information for Committee Contact information for Committee
CURRENT OR RECENT TARIFFS IN HAVANA V. PUERTO RICO & MIAMI-DADE COUNTY
PUERTO RICO
MIAMI-DADE COUNTY
RESIDENTIAL USER CLASS:
TARIFF: (b)
(PER CUBIC METER)
TARIFF: (c)
(PER CUBIC METER)
AVERAGE FOR WATER:
US $1.18 US $0.46
AVERAGE FOR WASTEWATER:
US $0.99 US $0.90
AVERAGE FOR WATER PLUS WASTEWATER:
US $2.17 US $1.36
CommentComment: Convertibility of peso to U.S. dollar is a complex issue.: Convertibility of peso to U.S. dollar is a complex issue.
(a)(a) Source: Article by EFE News Agency on Agbar (June 7, 2002) as cited in Wikipedia. Source: Article by EFE News Agency on Agbar (June 7, 2002) as cited in Wikipedia.(b)(b) Source: Puerto Rico Water and Sewer Authority (PRASA) (2007). Assumed average residential use and 5/8-inch meter. Source: Puerto Rico Water and Sewer Authority (PRASA) (2007). Assumed average residential use and 5/8-inch meter.(c)(c) Source: Miami-Dade Water and Sewer Department (MDWASD), 2008. Assumed 2.5 persons/household and 100 gal/person/day. Includes Source: Miami-Dade Water and Sewer Department (MDWASD), 2008. Assumed 2.5 persons/household and 100 gal/person/day. Includes
fixed charge and per volume charge. Assumed 5/8-inch meter.fixed charge and per volume charge. Assumed 5/8-inch meter.
HAVANA,CUBA
MAJOR USER CLASS:
TARIFF: (a)
(PER CUBIC METER)
RESIDENTIAL: 1 PESO (US $0.04)
HOTELS AND EMBASSIES:
US $1.00
COMPARISON OF SECTOR ACCOMPLISHMENT INDICATORS AMONG SELECTED COUNTRIES
(a) Comparison country chosen previously by economist Carmelo Mesa-Lago.
(b) Chosen for geographic proximity & similarity, tourism growth.
(c) Chosen for near-compliance to US Standards, lessons learned.
INDICATOR YARDSTICK
CUBA CHILE (a) COSTA RICA (a)
DOMINICAN REPUBLIC
(b)
PUERTO
RICO (c)
WATER: PERCENT POPULATION
SERVED
74 91 92 80 96
WATER: PERCENT FLOW
DISINFECTED
84 100 100 100 100
WATER: PERCENT “NON-REVENUE”
(LEAKS/LOSSES)
50 34 >50 40-65 40
WASTEWATER COLLECTION:
PERCENT POPULATION
SERVED
38 78 30 50 57
WASTEWATER: PERCENT FLOW
TREATED
19 16.70 4 49 100
(PAHO 2000)
RECEIVING WATER
OCEAN
RIV
ER
(AQ
UIF
ER
BE
LO
W R
IVE
R)
SourceWater
COMMUNITY WATER SUPPLY AND DISPOSAL
Collection
INDIVIDUAL WATER SUPPLY AND DISPOSAL
Distribution
WATERTREATMENT
PLANT
SEPTIC TANK
INDUSTRIAL WASTE
Effluent Disposal
INFLUENT WASTEWATERTREATMENT
PLANT
How Engineers View the Sanitary Infrastructure
47% Almendares-Vento Watershed– Almendares River (25 mi. long, shallow, contaminated)
– Vento Aquifer - located directly beneath the Almendares River
Source Water: Havana
Olivares-Rieumont et al. 2005
ALMENDARES RIVER
VENTO AQUIFER
COD = 32 to 291 mg/LEF >10, Pb, Cu, Cd, Zn
Water Treatment
Source water quality - poor
Treatment limited– Facilities for producing chlorine no
longer operational according to International Development Research Centre
– Chlorine metering systems in need of repair/replacement
Population self treating water– Boiling – Chlorine tablets
Potable Water Distribution Overall Cuba (PAHO 2000)
– 72% household connection– 21% easy access– 7% without access
Havana: Estimated hours of service per day (Cereijo ed. 1992) – 15% in good working condition– 70% provide water 2 to 4 hours per day– 15% carry water from collection tanks
Needs: repair leaks, replace valves, metering, back up power, surge surpressors on pumps, maintenance for chlorination systems (Alonso Hernandez)
Privatization in Havana and Varadero
($8M investment by AgBar, finanzas.com) 330 million m3/yr pumped (finanzas.com)
potential revenue of $300 M/yr
Wastewater Collection
38%, sewage collection 56%, latrines (Belt and Velazquez 2007)
Havana: Sewage collection system in disrepair (bulk over 80 years old) Cereijo ed. 1992
– 1913 designed for about 600,000 users– 1950s it serviced 1,000,000 million
(Scarpaci et al. 2002)
$30 Billion needed to renovate Havana’s sewer system (Chicago Tribune 2007)
1946, Sewer ConstructionU.Miami Photo Archive
Wastewater Treatment Estimate that 4% of wastewater
collected is treated (Wikipedia)
Havana: (Alonso Hernandez)
– Sedimentation Plant (Outfall to Playa El Chivo, population served = 950,000) Outfall in need of repair
– Biological Treatment Plant (Maria del Carmen, population served = 22,000) not operational untreated sewage to a tributary of the Almendares River
– 3 Other Collection Networks (population served 200,000), No treatment and problems with sewage pump stations
Effluent Disposal
Havana: Disposal to – Luyano: untreated sewage, oil refinery
waste, gas plant waste– Havana Bay: 4 slaughter houses, paint
plant, 2 thermal power plants, food processing factories
– Almendares: Raw sewage and industries near river
New wastewater treatment plant on Luyano River – – $24 Million to treat population of 62,000: ($20 Million from Cuba government, $4
Million from international partners, UNDP-GEF)
Luyano River
ALTERNATIVES:
CONSERVATION,
REUSE, TARIFFS
PROCESS FOR WATER “GAP ASSESSMENTS” INCLUDES ECONOMISTS
MAN-MADE DEMANDS
(POPULATION & INDUSTRY)
ECOLOGICAL DEMANDS
ASSESSMENTS OF PHYSICAL CONDITIONS
PUBLIC HEALTH STANDARDS
SOURCE ALTERNATIVES
TRANSMISSION ALTERNATIVES
TREATMENT ALTERNATIVES
STORAGE/ DISTRIBUTION ALTERNATIVES
COST ESTIMATES
PLANNING-LEVEL COST ESTIMATING
TOOLS (COST CURVES, ETC.)
(CANF, 1992; U.S. EPA, ETC.)
NON-MONETARY CRITERIA
PLAN SELECTION
AFFORDABILITY CRITERIA
PHASING PLAN
= Collaboration with Economists.
INTEGRATED WATER RESOURCES PLAN
(“IRP”)
(EXAMPLE: PUERTO RICO)
INSTITUTIONAL TRANSITION LESSONS LEARNED FROM OTHER COUNTRIES
Eastern Europe Transition:“Critical success factors” and relationship between tariffs and fluctuating affordability.(Infrastructure Department, Europe and Central Asia, World Bank, 2006)
Latin America:•Reform of politicized mode, regulatory agency for tariffs and quality, geographic regionalization of service.(Vivien Foster, Water Supply and Sanitation Board, World Bank, 2005)
•Analysis of departure of international operators, role of local operators, de-privatization trends.(Environmental Division, Inter-American Development Bank, 2007)
Puerto Rico:Integrated water resources (population/ecology balance), de-privatization, tariffs, geographic regions.(PR Department of Natural Resources, PR Aqueduct and Sewer Authority, various dates)
POTENTIAL FUTURE GEOGRAPHIC PLANNING/ SERVICE AREAS: BALANCING CRITERIA
ENGINEERS & PLANNERS:ENGINEERS & PLANNERS:
MATCH HYDROLOGIC MATCH HYDROLOGIC BOUNDARIES: RESOURCE BOUNDARIES: RESOURCE MANAGEMENT & REGULATION.MANAGEMENT & REGULATION.
ENCOMPASS ENTIRE PROVINCE(S): ENCOMPASS ENTIRE PROVINCE(S): MATCH GOVERNMENTS AND MATCH GOVERNMENTS AND DEMOGRAPHIC DATA.DEMOGRAPHIC DATA.
REGIONALIZE TREATMENT PLANTS: REGIONALIZE TREATMENT PLANTS: ECONOMY OF SCALEECONOMY OF SCALE, , CONCENTRATE SKILLED CONCENTRATE SKILLED OPERATORSOPERATORS..
ECONOMISTS:
• ECONOMY OF SCALE: ≥ 100,000 CONNECTIONS (YEPES, 1990).
• COMMERCIAL ATTRACTIVENESS: INCLUDE LARGE CITIES.
GEOGRAPHIC (TOPOGRAPHIC) SUB-REGIONS:BUILDING BLOCKS ALONG WITH PROVINCE BOUNDARIES FOR
BIGGER SERVICE AREAS
NOTE: Reproduced from “The Cuban Economy: Blueprint for Reconstruction”, The Endowment for Cuban American Studies of the Cuban American National Foundation (Editor: Dr. Manuel Cereijo), October 1992.
*Special Acknowledgements to: University of Miami Library Cuban Heritage Collection staff, Manuel Cereijo, Rafael Robayna, Jose A. Gonzalez, Victor Pujals, and many others!
QUESTIONS?QUESTIONS?
CUBA WATER/WASTEWATERINFRASTRUCTUREASSESSMENT COMMITTEE
COLLABORATION OPPORTUNITIES FOR ENGINEERS & ECONOMISTS:A “WORK-IN-PROGRESS”
TO: ASSOCIATION FOR THE STUDY OF THE CUBAN ECONOMY (A.S.C.E.)MIAMI, FLORIDAAUGUST 7, 2008
BY: HELENA SOLO-GABRIELE, Ph.D., P.E. (ACE)ARMANDO I. PEREZ, Ph.D., P.E. (C-AACE)
AS ADVISED BY:JUAN BELT, Ph.D. (USAID)LUIS VELAZQUEZ (USAID)
Total water use (potential $1 to 4 billion/yr industry)– 5.2 billion m3 (Cereijo ed. 1992)– 1.6 billion m3/yr (11.5 M people at 100 gpd)
64% groundwater (Cereijo ed. 1992)
Susceptible to saltwater intrusion
NEEDS FOR HAVANA
Funds to:– Protect source water quality (two tiered
approach)• Minimize discharges• Dredging
– Repair/rebuild chlorine production plants– Repair/rebuild distribution system– Provide sanitary collection system– Treat wastewater– Dispose of effluent properly (ocean
outfalls?) Regulatory system to maintain sanitation
standards (e.g. drinking water standards, industrial wastewater standards, etc…) (Belt and Velazquez 2007)
potential $1 to 4 billion/yr industry
PRIVATIZATION/ RE-STATIZATION/ “BUSINESS-LIKE” OPERATIONS: PUERTO RICO
PRIVATIZATION STUDIES OF “PRASA”
INTERNATIONAL PRIVATE OPERATOR(ISLAND-WIDE)
“PRASA” SELF-MANAGEMENT
“PRASA” DE-CENTRALIZED MANAGEMENT BY 5 SERVICE AREAS,“BUSINESS-LIKE” OPERATIONS
PRIVATIZATION PROCUREMENTS
RE-STATIZATION (CONTRACT TERMINATION)
STUDIES (INTERNAL & PRIVATE SECTOR ASSISTANCE)
Comment: Privatization of the water/wastewater sector is not easy!
POTENTIAL COLLABORATION BETWEEN COMMITTEE AND A.S.C.E. Institutional issues (especially Institutional issues (especially
regulatory).regulatory). Boundaries of service areas based Boundaries of service areas based
on tradeoffs of economy of scale vs. on tradeoffs of economy of scale vs. manageability, sustainability, manageability, sustainability, commercial factors, etc.commercial factors, etc.
Timing of tariff increases to match Timing of tariff increases to match affordability improvements after affordability improvements after transition income dip.transition income dip.
Prioritization of capital improvements Prioritization of capital improvements to foster economic engines (ports, to foster economic engines (ports, airports, etc.) to accelerate growth.airports, etc.) to accelerate growth.