Construction of wastewater treatment plants
Construction of wastewater treatment plants
Business Model Description
Invest in the construction, operation and / or installation of wastewater treatment plants and the provision of accessible services associated with the management of wastewater and sanitary trucks in areas with high population density and industrial areas through mixed financing including private investments, potential subsidies and / or patient capital.
Expected Impact
Increase coverage of water sanitation services benefiting public helath, the environment and corporates.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Paraguay: Central
- Paraguay: Cordillera
- Paraguay: Paraguarí
- Paraguay: Gran Asunción
Sector Classification
Infrastructure
Development need
Needs persist in sanitation, housing, waste management and transport infrastructure. Improved sanitation reaches 50% of homes and the case of improved water to 79%. The housing deficit affects a significant swath of the population, as there is a current deficit of 800,000 homes. In terms of solid waste, most of the waste generated at the national level is not managed (I).
Policy priority
Infrastructure is one of the most important aspects of development policies, and Paraguay demonstrates this through the following policies: the Institutional Strategic Plan of the Ministry of Public Works and Communications (II), and the Master Plan of Transport 2013 (III).
Gender inequalities and marginalization issues
gender inequality in access to infrastructure is notable, especially in rural areas. Women face significantly lower rates of economic activity and labor market participation compared to men. In addition, women in rural areas live in vulnerable working conditions and without access to social security (IV).
Investment opportunities introduction
the main areas of investment opportunities were identified to address gaps in the sector, including: solid waste management, affordable housing, road and river infrastructure, and wastewater management (V).
Key bottlenecks introduction
due to the current infrastructure deficit, Paraguay presents High investment requirements on infrastructure deployment, approximately US$2.8 billion annually (VI).
Waste Management
Development need
The average rate of urban solid waste (MSW) generation in Paraguay is around 1.2 kg / person / day, varying between 0.5 and 1.5 kg / person / day. The percentage of households with garbage collection as of 2017 is 45%. Much of the waste generated at the national level is not managed (VII).
Policy priority
The Government has recognized the importance of sustainable municipal solid waste management as a key area to contribute to the well-being of the country's environment. In this sense, it has developed and implemented the National Plan for the Integrated Management of Urban Solid Waste and the National Plan for the Integrated Management of Hazardous Waste (VIII).
Gender inequalities and marginalization issues
gender inequality in access to infrastructure is notable, especially in rural areas. Women face significantly lower rates of economic activity and labor market participation compared to men. In addition, women in rural areas live in vulnerable working conditions and without access to social security (IV)
Investment opportunities introduction
the growing concern for the environment and sustainability in Paraguay offers a favorable environment for the development of efficient water treatment and management projects in the country (IX).
Key bottlenecks introduction
due to the current infrastructure deficit, Paraguay presents High investment requirements on infrastructure deployment, approximately US$2.8 billion annually (VI).
Pipeline Opportunity
Construction of wastewater treatment plants
Invest in the construction, operation and / or installation of wastewater treatment plants and the provision of accessible services associated with the management of wastewater and sanitary trucks in areas with high population density and industrial areas through mixed financing including private investments, potential subsidies and / or patient capital.
Business Case
Market Size and Environment
Every day, 2.9 million cubic meters of untreated wastewater are discharged into the Paraguay River
> Every day, 2.9 million cubic meters of untreated wastewater are discharged into the Paraguay River and only 11% of sewage has a treatment before reaching the river. In other words, there is an 89% chance (3).
Indicative Return
> 25%
> In the economic and financial analysis of a pre-feasibility study for the implementation of a wastewater treatment plant in a Trujillo tannery in Peru, in 2017, an economic IRR of 38.35% and a financial IRR of 49.84%, at 5 years (4).
Investment Timeframe
Short Term (0–5 years)
> In the economic and financial analysis of a pre-feasibility study for the implementation of a wastewater treatment plant in a Trujillo tannery in Peru, in 2017, an economic IRR of 38.35% and a financial IRR of 49.84%, at 5 years (4).
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Impact Case
Sustainable Development Need
Both the improved water and sanitation services for precarious settlements present gaps, reaching 50% of the homes in the case of improved sanitation and 79% in the case of improved water (5).
There is a high demand for improvement, especially in relation to homes with access to improved (piped) water and the public sewerage network (5).
The Ypacaraí Lake basin, presents high levels of coliforms and nitrates (both coming from the sewers) in the waters of the streams that are tributaries to the Lake (1).
Gender & Marginalisation
Unequal access in rural areas to sanitation services / Unequal access for female-led households to sanitation services.
Expected Development Outcome
> Reduce pollution in streams, lakes and river.
> Increase water reuse in industries and protect national aquatic fauna.
> Improve sanitary conditions and water volumes with correct treatment and reduce cases of poisoning and diarrhea from drinking dirty water.
Gender & Marginalisation
Decrese inequalities in the access to sanitation services in rural areas and low income population.
Primary SDGs addressed
6.3.1 Proportion of domestic and industrial wastewater flows safely treated
6.3.2 Proportion of bodies of water with good ambient water quality
3.9.2 Mortality rate attributed to unsafe water, unsafe sanitation and lack of hygiene (exposure to unsafe Water, Sanitation and Hygiene for All (WASH) services)
1.4.1 Proportion of population living in households with access to basic services
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Indirectly impacted stakeholders
Public sector
Corporates
Impact Risks
Execution risks: > Lack of government incentives (6). > Under control of the final destination of wastewater (6).
Stakeholders: > Underdeveloped treatment and sanitation services sectors. > Unclear roles and responsibilities on the part of the sector authorities.
External risks: > Lack of budgetary inclusion of treatment programs (6).
Unexpected risks: > Specific regulations that limit scalability
Drop off: > The high cost of treatment plants for companies, taking into account that there are no government incentives for wastewater treatment (6).
Impact Classification
What
Postitive impact as it seeks to reduce inequality in sanitation services access
Who
Urban and rural population affected by the lack of clean water
Risk
Under control of the final destination of wastewater
Impact Thesis
Increase coverage of water sanitation services benefiting public helath, the environment and corporates.
Enabling Environment
Policy Environment
The National Development Plan 2030 - combines inclusive economic growth with environmental sustainability. Its goals include promoting renewable energy, reforestation, and the sustainable management of urban and industrial waste (7).
The Institutional Strategic Plan of the National Environmental Sanitation Service 2016 - has the mission of expanding water and sanitation services in communities with less than 10,000 inhabitants (8).
A Manual of General Environmental and Social Technical Specifications (METAGAS) was developed - for Potable Water and Sanitation Projects (9).
Financial Environment
Financing AFD PROINFRA -Hydraulic and sanitation works: storm and sewage drains, treatment plants, dredging, aqueducts, supply, among others (14).
AFD PROCRECER Financing - Financing for investment projects; rural, industrial, commercial and service development projects (14).
Law 60-90 (investment law) is eded on investments of national and/or foreign origin (15).
Regulatory Environment
Law No. 836/80 Health Code - regulates the functions of the State in the integral relative of the health of the people and the rights and obligations of persons in this field (10).
Law No. 293/93 Environmental Impact Assessment - . (Law No. 345/93. Amend Article 5 of Environmental Impact Assessment Law 294/93. Where environmental impact assessments are declared mandatory to the entire modification of the environment by works (11).
Paraguay's Water Resources Law 3.239/07: This law aims to regulate the sustainable and comprehensive management of all the waters and territories (12).
Law 1614/2000 of the Regulatory Framework for Drinking Water and Sanitary Sewerage Services in the provision of permissive services; tariff for permissives; dealer tariff; violations and sanctions; and the user (13).
Marketplace Participants
Private Sector
RB Ingeniería (Paraguay), Ecopreneur (Paraguay), Disal (Paraguay)
Government
Ministerio de Obras Públicas y Comunicaciones (MOPC), Ministerio del Ambiente y Desarrollo Sostenible (MADES), ESSAP, ERSAN
Multilaterals
BID, Banco de Desarrollo de América Latina (CAF), Banco Mundial (BM), Focem, BIRF
Non-Profit
Fundación Moisés Bertoni, WWF, Fundación Avina
Target Locations
Paraguay: Central
Paraguay: Cordillera
Paraguay: Paraguarí
Paraguay: Gran Asunción
References
- (I) PNUD. 2023. Asunción Sustentable, un proyecto transformador que mira hacia el futuro. https://www.undp.org/es/paraguay/noticias/asuncion-sustentable-un-proyecto-transformador-que-mira-hacia-el-futuro (II) Ministerio de Obras Públicas y Comunicaciones. 2014. Plan estratégico. https://www.mopc.gob.do/nosotros/plan-estrat%C3%A9gico/ (III) Gobierno Nacional de Paraguay. 2020. Actualización del plan maestro de infraestructura y servicios de transporte del Paraguay 2018 - 2028. https://www.mopc.gov.py/application/files/3816/3302/7534/Actualizacion_del_Plan_Maestro_de_Infraestructura_y_Servicios_de_Transporte_del_Paraguay_2018_-_2028_-_Informe_Final.pdf (IV) ONU Mujeres. s.f. Paraguay. https://lac.unwomen.org/en/donde-estamos/paraguay (V) Infraestructure Interviews. 2021. (VI) Marketdata. 2022. Paraguay debe invertir el 6% del PIB hasta el 2030 para cerrar brecha en infraestructura. https://marketdata.com.py/noticias/paraguay-debe-invertir-el-6-del-pib-hasta-el-2030-para-cerrar-brecha-en-infraestructura-89777/ (VII) CONACYT. 2017. Reciclaje de residuos con inclusión social, valor ambiental y viabilidad económica, posibilidad de réplica de la experiencia ECOUNI en Paraguay. https://repositorio.conacyt.gov.py/bitstream/handle/20.500.14066/4035/14-INV-410-PropuestaTecnica2.pdf?sequence=2 (VIII) PNUD Paraguay. 2019. Planes de gestión de residuos permiten construir ciudades sostenibles. https://www.undp.org/es/paraguay/press-releases/planes-de-gesti%C3%B3n-de-residuos-permiten-construir-ciudades-sostenibles (IX) Bnamericas. 2021. Spotlight: Paraguay to reduce wastewater infra gap with US$1.2bn investment. https://www.bnamericas.com/en/features/spotlight-paraguay-to-reduce-wastewater-infra-gap-with-us12bn-investment
- (1) Ministerio del Ambiente y Desarrollo Sostenible. 2020. Lago Ypacaraí: Alcantarillado sanitario y plantas de tratamiento, soluciones de fondo. https://www.mades.gov.py/2020/06/10/lago-ypacarai-alcantarillado-sanitario-y-plantas-de-tratamiento-soluciones-de-fondo/
- (2) BID. 2015. Plan de Acción de Asunción, Paraguay. Programa Ciudades Emergentes y Sostenibles (CES). https://issuu.com/ciudadesemergentesysostenibles/docs/asunci__n_sostenible
- (3) Revista Mandu'a. 2022. El CAF aprueba créditos para obras de saneamiento. https://issuu.com/a.arza/docs/220429_tripa_mandua_abril_2022_pdf_completo
- (4) Correa Alayo & Vania Evelyn. 2017. Estudio de pre factibilidad para la implementación de una planta de tratamientos de aguas residuales en una Curtiembre de Trujillo. https://es.scribd.com/document/392354248/Correa-Alayo-Vania-Evelyn-1
- (5) Gobierno Nacional. 2019.
- (6) Reunión sectorial. 2020.
- (7) Gobierno del Paraguay. 2014. Plan Nacional de Desarrollo Paraguay 2030. https://www.stp.gov.py/pnd/wp-content/uploads/2014/12/pnd2030.pdf
- (8) Ministerio del Ambiente y Desarrollo Sostenible. 2016. Plan Estratégico Institucional del Servicio Nacional de Saneamiento Ambiental 2016. https://www.senasa.gov.py/application/files/1914/8902/4266/PEI_SENASA_2016-2020_aprobado.pdf
- (9) Empresa de Servicios Sanitarios del Paraguay. 2011. Manual de Especificaciones Técnicas Generales Ambientales y Sociales (METAGAS). https://es.slideshare.net/Essap-Pmsas/06manualdeespecificacionestcnicasambientalesgenerales-para-pas-metagas
- (10) Congreso de la nación paraguaya. 1980. Ley No. 836. https://www.bacn.gov.py/leyes-paraguayas/2399/ley-n-836-codigo-sanitario
- (11) Congreso de la nación paraguaya. 1993. Ley No. 294. https://www.bacn.gov.py/leyes-paraguayas/2374/ley-n-294-evaluacion-de-impacto-ambiental
- (12) Congreso de la nación paraguaya. 2007. Ley No. 3239. https://www.bacn.gov.py/leyes-paraguayas/2724/de-los-recursos-hidricos-del-paraguay#:~:text=%2D%20La%20presente%20Ley%20tiene%20por,ambientalmente%20sustentable%20para%20las%20personas
- (13) Congreso de la nación paraguaya. 2000. Ley No. 1614. https://www.bacn.gov.py/leyes-paraguayas/1694/ley-n-1614-general-del-marco-regulatorio-y-tarifario-del-servicio-publico-de-provision-de-agua-potable-y-alcantarillado-sanitario-para-la-republica-del-paraguay
- (14) Agencia Financiera de Desarrollo. S.F. Acerca de la AFD. https://www.afd.gov.py/que-es-la-afd
- (15) Congreso de la nación paraguaya. 1990. Ley 60/90 https://www.mre.gov.py/consulpar-rio-de-janeiro/application/files/6316/1608/8888/Ley_60_-_90_Incentivos_Fiscales_a_la_Inversion_Nacional_y_Extranjera.pdf