Decentralized Water Treatment and Supply Systems
Decentralized Water Treatment and Supply Systems
Business Model Description
Construct and operate individual or collective decentralized water treatment and supply systems, such as rainwater harvesting, for households and companies operating in the industry, ensuring a continuous access to water for consumption and productive purposes.
Expected Impact
Improve water access of households and the industry, and enhance resource efficiency benefitting the conservation of water sources.
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
- Mauritius: Countrywide
- Mauritius: Rodrigues
Sector Classification
Infrastructure
Development need
Mauritius' fiscal leeway for infrastructural resilience risks falling short in addressing a multitude of climate-change related shocks (e.g., heavy rainfall, sea-level rise). Utility of country's unique marine assets and scarce water resources is menaced by inadequate industrial and domestic wastewater treatment, wide-spread water leakages and lack of storage facilities (1, 4).
Policy priority
Government of Mauritius allocated 40% of 2021/22 Budget, accounting to some USD 1.5 billion, for infrastructure development, including drainage and social housing projects, which is critical for Mauritius's objective of becoming a high-income country (HIC) (2, 46). USD 527 million financial assistance was received from the Indian government for the Metro Express project (47).
Gender inequalities and marginalization issues
In the context of Small Island Developing States (SIDS), application of circular economy principles and upgrading local infrastructure, especially in healthcare and education, are crucial for an ageing population with specialized needs and opportunities for youth and women (14, 15).
Investment opportunities introduction
For 2021-2022, MUR 2.8 billion (USD 62 million) are earmarked to infrastructure as part of the economic recovery program (2). The Government plans to invest MUR 190 billion (USD 4.3 billion) in social and economic infrastructure until 2026 (25). To stimulate private investment in infrastructure, 34 projects worth USD 1.5 billion are in the pipeline (26).
Key bottlenecks introduction
Being an island, Mauritius has limited land space, which experiences a strong competition between agricultural sector and private promoters (1), leaving little space for the development of infrastructure. Scale impedes profitable investments in circularity as waste segregation is limited and there is insufficient waste for closed loop (18).
Utilities
Development need
Enhancing the national water security through a sustainable use of the resource, as well as providing a continuous access to water to the population needs to be a priority in order to achieve SDG 6 (2, 3). In order to do so, water contamination and treatment issues (13.3% of household wastewater treated) (21), and water leakages also need to be addressed (4, 5).
Policy priority
Mauritius' Climate Change Adaptation Plan and Nationally Determined Contributions focus on addressing the growing water demand and access to clean water in light of shrinking water resources (6,7). The National Water Strategy and Integrated Water Management Plan promote an integrated and inter-sectoral management of water resources (8, 19).
Gender inequalities and marginalization issues
Granting a better access to water for the most vulnerable segments of the population is a priority for the Government (8).
Investment opportunities introduction
In 2021-2022, investments of MUR 9.4 billion (USD 217 million) were planned for the construction of a dam and a water treatment plant and MUR 3.2 billion (USD 74 million) are planned over the next 3 years to expand water storage and treatment facilities (2). Additionally, MUR 120 millions (USD 2.8 million) are dedicated to water distribution projects (2).
Key bottlenecks introduction
Fragmentation of water governance and responsibilities led to inefficient and ineffective management of the resource. Mauritius also lacks the necessary financial capacity, skills, and technology to explore the marine environment potential for water supply (4).
Water Utilities and Services
Pipeline Opportunity
Decentralized Water Treatment and Supply Systems
Construct and operate individual or collective decentralized water treatment and supply systems, such as rainwater harvesting, for households and companies operating in the industry, ensuring a continuous access to water for consumption and productive purposes.
Business Case
Market Size and Environment
Water demand will reach 1,200 million m3 in 2040 and currently only 13.3% of wastewater is treated
In 2020, Mauritius’s overall water utilization reached 997 m3 and the water demand is expected to increase to 1,200 million m3 in 2040 (44, 5).
Indicative Return
> 25%
A 252 m3 commercial rainwater harvesting tank installation in Portugal offered an IRR of 30%, resulting in 20% water savings (42).
Water supply solutions such as rainwater harvesting systems can reduce mains water consumption by up to 50% (22).
Investment Timeframe
Short Term (0–5 years)
The payback period for a commercial water supply system in Portugal was 5 years for an investment cost of EUR 240,843 (42).
Ticket Size
< USD 500,000
Market Risks & Scale Obstacles
Capital - Limited Investor Interest
Capital - CapEx Intensive
Impact Case
Sustainable Development Need
Mauritius's available water resources are expected to decline by up to 13% by 2050. Increasing the nation-wide capacity to collect rainwater, of which 21% was harvested for utility in 2017, is vital to ensure continuous supply of water (1, 7).
Water leakage caused by old infrastructure results in loss of 48-60% of the total water supply (5) whereas utilizable renewable potential of water was estimated at 1,233 million m3 per year (4).
Water quality is negatively impacted by pollution from dumping of solid waste, discharge of domestic and industrial effluents, and run off from agricultural lands (4). In 2015, 13% of household wastewater were safely treated (21) and 25% were connected to collective water treatment plants (24).
Gender & Marginalisation
24 hours water supply is available for 80% of the population during the wet season (8). Yet, people living in the rural areas have less access to drinking water than in urban areas (56.8% and 81.6%, respectively, in 2017) (24), especially in Rodrigues, which is more sensible to droughts (1).
The poorest, often women considering their lower employment and wage situation (20), usually have a lower access to water because they cannot afford the price of water or storage facilities (1).
Expected Development Outcome
Decentralized water solutions contribute to a more effective water resource use and management, such as reducing water losses, which would save MUR 858 million (USD 20 million) over 15 years. This will enable a response to the growing demand, estimated at 1,200 million m3 in 2040, which is close to the renewable usage potential (5, 6).
Decentralized water treatment systems minimize direct discharge to the environment and ensure that water will be safely treated before reuse or discharge, decreasing the harm on both human health and the environment (21).
Decentralized water solutions enable continuous water supply to inhabitants and further their resilience to water scarcity considering climate change. Rainwater harvesting can use 60% of the rain that is lost as runoff as a resource, and decrease soil erosion (23).
Gender & Marginalisation
Decentralized water treatment and supply facilities such as water storage or rainwater collection solutions can enhance the poorest household's access to water year-round, decreasing the cost of their water consumption when above 6m3 / month (since these are free of charge) (1).
Enhanced access to safe water can improve women’s participation in the public sphere and labor force since it will free some of their time from domestic responsibilities like water collection (34).
Decentralized water treatment and supply facilities enable a continuous access to water for people not connected to the public network and in Rodrigues, ensuring access to water in-between distributions, which occur on average every fortnight (1).
Primary SDGs addressed
6.1.1 Proportion of population using safely managed drinking water services
6.4.1 Change in water-use efficiency over time
6.4.2 Level of water stress: freshwater withdrawal as a proportion of available freshwater resources
99.866% (2020) (25).
Non-revenue water level was at 60% in 2020 (45).
21.48% (2018) (26). The annual freshwater abstraction in 2015 was 612 million m3 (13).
100% in 2020 (8).
Non-revenue water level at 37% by 2030 (35).
N/A
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)
0.6 / 100,000 population (2016) (26).
N/A
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Outcome Risks
Decentralized water solutions can be adopted in addition to the public water network, which may increase overall water consumption and further strain the water resources overall, such as aquifers.
The cost of water treatment and supply systems may be too high to make them accessible for the poorest segments of the populations, which may lead to a further increase of inequalities.
Impact Risks
External factors such as seasonal rainfall (75% of rainfall occurs between November and April), determine the impact of decentralized water systems over time and across different locations (23).
The impact of water treatment and supply systems may be difficult to quantify due to the difficulty of collecting data of such decentralized systems.
Impact Classification
What
Decentralized water treatment and supply systems grant continuous access to safe water to households and the industry and decrease pressure on underground water resources.
Risk
Due to the unpredictability of rainfall patterns as a result of climate change, the impact of decentralized water treatment and supply systems over time and locally may be limited.
Contribution
Water treatment and supply systems, in addition to solar-powered desalination in remote islands, contribute to continuous access to water for the Mauritian population.
Impact Thesis
Improve water access of households and the industry, and enhance resource efficiency benefitting the conservation of water sources.
Enabling Environment
Policy Environment
Mauritius' updated National Determined Contribution highlights the need for a better water resource management and recommends the development of rainwater harvesting as a response to water scarcity, especially small inhouse rainwater harvesting systems in Rodrigues (7).
The Mauritius Sustainable Island Strategy highlights the growing scarcity of water resources and a growing demand in water, and advocates for a more sustainable management and use of the resource (4).
The National Climate Change Adaptation Policy Framework emphasizes the growing scarcity of water and support a more efficient use of the resource (6).
The National Water Strategy promotes a more sustainable, equitable and just management and use of the water resources, and supports decentralized initiatives and involvement in water resources management (8).
The National Integrated Water Resources Management (IWRM) Plan supports the promotion of alternative water sources such as rainwater harvesting, water re-use and desalination, whose potential is largely untapped (41).
Financial Environment
Financial incentives: The Development Bank of Mauritius offers a Rainwater Harvesting System Loan Scheme for households of up to MUR 50,000 (USD 1,200) with a 3% rate and repayment up to 5 years (32).
Other incentives: The Technology and Innovation Scheme (TINNS) supports SMEs in their sustainable transition in offering grants (80% of total costs up to a maximum of MUR 150,000), with specific provisions for young and women entrepreneurs, including for water treatment mechanisms (40).
Regulatory Environment
Central Water Authority (Water Supply for Domestic Purposes) (Amendment) Regulations, 2008, amending the 1992 regulation: Regulates the water supply by the Central Water Authority to a private property for domestic purposes, such as through a written application by the owner / occupier (27).
Central Water Authority (Water Supply for Non-Domestic Purposes) (Amendment) Regulations, 2014, amending the 2011 regulation; Regulates the water supply to a private property for other than domestic purposes, including for irrigation and other agricultural purposes (28).
Rivers and Canal Act, 1863: Regulates the conservation of rivers and canals (29).
Ground Water Act, 1969: Declares all ground waters to vest in the state and defines the general rules for the abstraction of ground waters (30).
Waste Water (License for Discharge of Industrial Effluent into a Waste Water System) Regulations, 2019: Proscribes the discharge of industrial effluent into a wastewater system without a license from the Waste Water Management Authority (31).
Marketplace Participants
Private Sector
Aqua Science and Technology, Pure Aqua Inc., Long Beach Golf and Spa Resort and See, Artelia, Société Canal de Proence, Bas-Rhône Languedoc, Veolia Recycling and Environmental Services Mauritius.
Government
National Environmental Laboratory (NEL), Central Water Authority, Wastewater Management Authority, Water Resource Unity.
Multilaterals
African Development Bank (AfDB), United Nations Development Programme (UNDP), Global Environmental Facility (GEF).
Non-Profit
Agence Française de Développement (AFD).
Target Locations
Mauritius: Countrywide
Mauritius: Rodrigues
References
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