Economic Assessment of Sanitation Interventions in Vietnam - WSP

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Economic Assessment of Sanitation Interventions in Vietnam | National Benefits of Improved Sanitation and HygieneTABLE 44: COSTS OF DOING BUSINESS: PRODUCTIONVariable:Firms saying that…HealthPoor workforce health affectstheir business (average score)(1 = unimportant; 5 = important)WaterPoor water quality affects theirbusiness(1 = unimportant; 5 = important)No. with responseHotelBeverageSectorsCivilengineeringConsultancy6 5 3 3 36 5 5 2 2They treat their own water 6 5 Yes No NoPoor local environment(1 = unimportant; 5 = important)6 5 3 3 2Affects customers 6 5 3 3 2Affects current workers 6 5 3 3 2Affects staff recruitment 6 5 3 3 2Other aspectsConsidered moving productionfacilities to industrial parks6 Not relevant No No NoTABLE 45: COSTS OF DOING BUSINESS: SALESVariable:Firms who say that…The location of salesoffice affects business(1 = unimportant;5 = important)Main measures takento deal with poorenvironmentConsidered moving salesoutlets to other parts oftownNo. withresponseIf no, why not 7N/A – not available (no responses)SectorsHotel Beverage Civil engineering Consultancy Pump and equipment7 5 2 3 3 37InternalmeasuresInternalmeasuresN/A N/A N/A7 No No No No NoFixedbuildingN/A N/A N/A N/A72Sanitation improvement means more business opportunitiesfor firms in Vietnam dealing in pumping and water, wastewaterequipment, and water and sanitation consultancy.Consultancy firms did not cite a link between improvedsanitation and expanding their business, since their activitiesare limited by the size of the market. However, respon-dents stated that if the environmental sanitation status wereimproved, they could expand their activities to includeother products not directly related to their current corebusiness. Sanitation improvement would lead to more businessopportunities for firms in Vietnam. The firms surveyedstated that they would be happy to pay more for better environmentalsanitation.Economic Assessment of Sanitation Interventions
Economic Assessment of Sanitation Interventions in Vietnam | National Benefits of Improved Sanitation and HygieneThe responses of beverage companies on location focusedon market factors, such as GDP growth and other marketpotential. Although these firms confirmed the importanceof having clean water supply for beer and other drink production,they said they would expand their business in Vietnamanyway. They also said improved sanitation standardsand regulations would not adversely affect their business inthe country.The following general conclusions can be made from thebusiness survey. First, firms assigned different levels of importanceto the environmental sanitation situation. The hotelbusiness considered environmental sanitation conditionsto be most important for all criteria: workforce health, waterquality from sources, pleasant environment for the staffto live, and availability of cheap and good land. The qualityof water sources is considered the most important criterionfor firms working in beverage production and consumergoods. Consulting firms prefer to select a location wheretheir staff can experience a pleasant environment, whichshould increase competitiveness. Sanitation improvementmeans more business opportunities for almost all of thefirms.5.3 SANITATION MARKETWherever it is used as fertilizer, the availability of nutrientsfrom human excreta can lead to the replacement of chemicalfertilizer, which saves costs (Werner C. et al, 2003).Furthermore, where fertilizer was not previously being usedoptimally, the nutritional content and economic value ofcrops may increase. Moreover, there are long-term benefitsto reducing the use of chemical and mineral fertilizers, especiallytaking into account the fact that some fossil resourcesare in increasingly short supply (e.g. phosphorous - see Box6). Alternatively, families with livestock may invest in abiogas digester, which provides bio-fuel for cooking, spaceheating and lighting.The reuse of human waste for fertilizer or biogas productioncannot be assumed to be population-wide, given culturalattitudes towards the handling and reuse of human waste,and low practical feasibility in many locations. Success oftendepends on local perceptions of the expected returnson re-use of human waste, whether for biogas or fertilizer.The number of households reusing human and animal fecesfor biogas and fertilizer purposes were determined from thelocation surveys and FGDs. The study estimated weight offecal matter and volume of gas produced, and the economicvalue of these products using local market prices.Biogas could also bring other benefits to the country. Thereduction in greenhouse gas emissions from biogas activitiesqualifies for ‘carbon credits’ under the Clean DevelopmentMechanism (CDM) of the United Nations FrameworkConvention on Climate Change. These credits can besold on the international market, resulting in revenue forthe country. Each biogas tank is equivalent to 2 credits thatcan be sold at 6 Euro each. According to the biogas project(MARD and SNV), biogas can bring about 1.8 millionEuro per year from 150,000 biogas tanks. Table 46 presentsa rough estimate of potential reuse values of waste from thewhole country as calculated from the ESI-1 study.TABLE 46: INPUT VALUES FOR ESTIMATION OF RETURNS TO REUSE OF HUMAN (AND ANIMAL) WASTEItems Unit Urban Rural TotalTotal households (HH) HHs 5.4 million 13.9 million 19.4 million% HHs applying Ecosan % 0.1% 1% 0.75%Number of HHs applying Ecosan HHs 5,400 139,200 144,660Human waste per year Kg/year 2.2 million 58.3 million 60.5 millionAnimal waste per year Kg/year 0 8.7 billion 8.7 billionTotal waste to be used for biogas Kg/year 2.2 million 8.8 billion 11.0 billion% to be used as fertilizer % 60% 60% 60%Amount of fertilizer Kg 1.3 million 5.3 billion 6.6 billionVolume of gas Liters 650,000 2,600 million 3,225 millionSource: ESI-1 study (WSP, 2009).www.wsp.org73
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Economic Assessment ofSanitation In
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Economic Assessment of Sanitation I
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ForewordTarget 10 of the Millennium
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Glossary of TermsBenefit-cost ratio
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AcknowledgmentsThe Economics of San
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V. National Benefits of Improved Sa
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Table 32. Sanitation coverage, and
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Figure 34. What factors were of mos
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Annex Table E1. Level of satisfacti
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Annex Table J1. Site U1 (Dong Thap,
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PopulationSelected Development Indi
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III.Study MethodsThe study methodol
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ANNEX TABLESANNEX A. STUDY METHODST
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Economic Assessment of Sanitation Interventions in Vietnam - WSP

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