Wastewater Treatment Facilities and Technologies
Wastewater Treatment Facilities and Technologies
Business Model Description
Investments in constructing and operating wastewater treatment facilities and innovative wastewater treatment technologies
Expected Impact
Investments in this IOA can reduce the deterioriation of surface water quality due to insufficient pollution control.
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
- Turkey: Black Sea Region
- Turkey: Central Anatolia Region
- Turkey: Eastern Anatolia Region
- Turkey: Marmara Region
- Turkey: Mediterranean Region
Sector Classification
Infrastructure
Development need
Turkey's performance on SDG 9 (Industry, Innovation and Infrastructure) exhibits major challenges, and significant challenges still remain for SDG 12 (Responsible Consumption and Production) according to the Sustainable Development Report 2020. (1)
Policy priority
The New Economy Program covering 2020-2022 emphasizes that projects on the "Zero Waste Initiative" will be extended. (2)
Gender inequalities and marginalization issues
Within the infrastructure sector, there is a high rate of informality among solid waste collectors. Workers in this area suffer from poor working conditions and a lack of social security. In terms of the provision of utilities, households with lower income levels face the risk of energy poverty. Fair employment practices and pricing mechanisms need to be implemented to address the issues of marginality within this sector. Investments in this area need to generate job opportunities within the green economy and promote energy-efficiency measures to decrease the household consumption costs.
Investment opportunities
The government has planned the following public investment amounts for urban infrastructure areas for 2020: 198 million TRY (29 million USD) for urbanization, 152 million TRY (22 million USD) for communication infrastructure, 71 million TRY (10 million USD) for environment and 67 million TRY (10 million USD) for municipal services. (3)
Key bottlenecks
Given high investment and operations costs, human capital and technology resources and governance needs, some urban infrastructure services such as wastewater treatment facilities cannot reach the desired efficiency levels. New models are needed to improve efficiency in urban infrastructure. (4)
Waste Management
Development need
Turkey is a water-stressed country. The annual per capita water supply is 1,365 cubic meters. Taking the negative impacts into consideration, this figure is projected to drop to 1,120 cbm in 2030. (5) Population access to wastewater treatment plants increased from 42% to 79% over 2005-16. (6)
Policy priority
The 11th Development Plan prioritizes provision of safe, clean drinking water and minimizing the negative effects of wastewater on population health. 11.7% of all wastewater was discharged as untreated in 2018. (7)
Gender inequalities and marginalization issues
There is a high rate of informality in the waste management sector of Turkey. Waste-pickers suffer from poor working conditions and a lack of social security. It is estimated that the informal recycling sector could be responsible for up to 30% of solid waste management. This is a key area of income for the urban poor and ethnic minorities. (20) (21)
Investment opportunities
Despite remarkable progress in wastewater management, 14% of residential wastewater is discharged without treatment. (6)
Key bottlenecks
Household water and wastewater tariffs exceed affordability limits in many provinces. Only a small number of Turkish water utilities have potential for tariff increase to finance new investments without harming the poorest households. (6)
Pipeline Opportunity
Wastewater Treatment Facilities and Technologies
Investments in constructing and operating wastewater treatment facilities and innovative wastewater treatment technologies
Business Case
Market Size and Environment
> USD 1 billion
1422 wastewater treatment facilities are planned to be built between 2017-2023. (8)
Approximately 27.6 billion TRY (4 billion USD) is allocated to wastewater and sewage investments by 2023. (8)
Indicative Return
20% - 25%
Based on interviews with active operators, returns from the construction of wastewater treatment facilities vary between 25-30%, while operating these facilities are associated with 10% losses. The overall return from investments in constructing and operating wastewater facilities is appr. 20%.
Investment Timeframe
Short Term (0–5 years)
The planning, design and construction phases of a wastewater treatment facility is completed between 2-5 years. (9)
Ticket Size
> USD 10 million
Market Risks & Scale Obstacles
Market - Highly Regulated
Capital - CapEx Intensive
Impact Case
Sustainable Development Need
Turkey is a water-stressed country facing the risk of water scarcity in the near future. The annual per capita water supply is 1,365 cubic meters (cbm) in Turkey. Taking the negative impacts into consideration, this figure is projected to drop to 1,120 cbm in 2030. (10)
Population access to wastewater treatment plants increased from 42% to 79% over 2005-16. (11)
Despite remarkable progress in wastewater management, 14% of residential wastewater is discharged without treatment. (11) 11.7% of all wastewater was discharged as untreated in 2018. (12)
Gender & Marginalisation
Industrial sites and mining zones discharge wastewater without treatment, which exposes communities living (particularly in rural areas whose livelihoods depend on wetlands) to health and economic risks.
Investments in this IOA can reduce the deterioration of surface water quality due to insufficient pollution control.
Expected Development Outcome
Investments in this IOA can reduce the deterioriation of surface water quality due to insufficient pollution control.
Investments in this IOA can improve watertreatment infrastructure to ensure that sewage and wastewater treatment services are provided at 100% by 2023. (8)
Gender & Marginalisation
Wastewater treatment is especially important for rural communities whose livelihoods depend on the sustainability of wetlands.
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
6.5.1 Degree of integrated water resources management
6.3.1: 35.03% (13) 6.3.2: N.A. 6.5.1: 70% (13)
6.3.1: Turkey's long-term objective for this indicator is 100%. (14)
11.6.2 Annual mean levels of fine particulate matter (e.g. PM2.5 and PM10) in cities (population weighted)
41.97 mgr/m^3 (11)
N.A.
12.4.2 (a) Hazardous waste generated per capita; and (b) proportion of hazardous waste treated, by type of treatment
12.5.1 National recycling rate, tons of material recycled
12.4.2: b) 6,623,186 tonnes (11) 12.5.1 - 151505.1 tonnes (11)
N.A.
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Planet
Outcome Risks
There is a risk of overinvestment to reach stringent national effluent standards that go beyond EU standards for nutrient removal. (8)
As wastewater treatment technologies are foreign-dependent, expanding such facilities without improving local technology is likely to increase dependence on foreign technology. (11)
Impact Risks
Efficiency Risk given the heavy involvement of local authorities in waste management
Endurance Risk given that the investment timeframes are heavily dependent on the duty terms of municipalities
Impact Classification
What
Increased access to clean water and enhanced marine ecosystems.
Who
People living in rural areas with limited access to wastewater treatment and sewage services will be served as well as life below water.
Risk
Involvement of municipalities in wastewater treatment facilities expose investments to uncertainty in terms of governance and leaves little governance capability for firms to maximize impact.
Impact Thesis
Investments in this IOA can reduce the deterioriation of surface water quality due to insufficient pollution control.
Enabling Environment
Policy Environment
(11th Development Plan): 2.4.5 Urban Infrastructure, 696. The main objective is to provide safe and clean drinking water access for all population and to minimize the adverse effects of wastewater on human health and environment through the effective management.
(11th Development Plan): 2.4.5 Urban Infrastructure, 697. Watershed planning, strategies and action plans will be implemented in an integrated way to address the protection, development and sustainable use of water resources.
(Policy document): 11th Development Plan, 2.4.5 Urban Infrastructure, 697.1. Regarding the protection and effective use of water resources, River Basin Management Plans, Sectoral Water Allocation Plans ... will be completed in the 25 basins of the country.
(11th Development Plan, ): 2.4.5 Urban Infrastructure, 697.2. The reuse of treated wastewater safely for beneficial purposes, primarily in agriculture will be planned at the river basin level, thus reducing pressures on water resources.
(11th Development Plan): 2.4.5 Urban Infrastructure, 698.4. PPP model will be utilized to finance wastewater treatment needs, while at the same time some barriers, such as lack of technical skill, capacity and, control will be overcome quickly.
Financial Environment
Wastewater treatment facilities are eligible to apply for a reimbursement of energy costs up to 50% from the Ministry of Environment and Urbanization. (17) Appx. 30 billion TRY (4.3 billion USD) in financing will be provided to investments in wastewater treatment by 2023 by the government. (8)
Fiscal incentives: Firms in OIZs with central wastewater treatment facilities are eligible for wastewater fee exemption. (18)
Other incentives: The Industrial Development Bank of Turkey signed an agreement with the Asian Infrastructure Investment Bank (AIIB) in 2018 on the Sustainable Energy and Infrastructure Loan, worth 200 million USD, to finance investments in areas incl. wastewater treatment. (19)
Regulatory Environment
(Regulation): The ultimate regulator of wastewater management in Turkey is the Ministry of Environment and Urbanization.
(Regulation): Turkish Law on Environment no. 2872 creates the basis of the legal framework for wastewater and solid waste management practices in Turkey.
(Regulation): General Directorate of State Hydraulic Works' Wastewater Department works on final design, application projects, adjudication, and construction of waste water treatment plants for the settlements having municipal administration. (15)
Prior to approval by Ministry of Environment and Urban., projects should obtain approval from Provincial Directorate. Standards are set out in the Water Pollution Control Regulation, Urban Wastewater Treatment Regulation and Technical Procedure Communication on Wastewater Treatment Facilities. (16)
(Regulation): The "Regulation on Wastewater Treatment Plants Technical Methods" published in the Official Gazette issue no. 27527 of 2010 establishes the standards for wastewater management in Turkey.
Marketplace Participants
Private Sector
Mass Arıtma, Gezer Endustri.
Government
Ministry of Environment and Urbanization, municipalities, İlbank.
Multilaterals
EBRD, World Bank, EU through IPA funding.
Non-Profit
TAYÇED.
Target Locations
Turkey: Black Sea Region
Turkey: Central Anatolia Region
Turkey: Eastern Anatolia Region
Turkey: Marmara Region
Turkey: Mediterranean Region
References
- (1) Bertelsmann Stiftung & SDSN, 2020. Sustainable Development Report Dashboards 2020. https://dashboards.sdgindex.org/#/TUR
- (2) Presidency of Strategy and Budget, The New Economy Program 2020-2022. http://www.sbb.gov.tr/wp-content/uploads/2019/10/YeniEkonomiProgrami_OVP_2020-2022.pdf
- (3) Presidency of Strategy and Budget, 2020 Investment Program, http://www.sbb.gov.tr/wp-content/uploads/2020/03/2020_Yatirim_Programi.pdf
- (4) Presidency of Strategy and Budget, 2020 Annual Presidency Program. http://www.sbb.gov.tr/wp-content/uploads/2019/11/2020_Yili_Cumhurbaskanligi_Yillik_Programi.pdf
- (5) Statement by the Ministry of Agriculture and Forestry, 2019. https://www.hurriyetdailynews.com/turkey-may-face-water-scarcity-by-2030-official-150022
- (6) OECD Environmental Performance Reviews Turkey 2019. http://www.oecd.org/env/country-reviews/Highlights-Turkey-2019-ENGLISH-WEB.pdf
- (7) TUIK, 2019. Amount of wastewaer discharged from municipal sewage by receiving bodies. http://www.tuik.gov.tr/UstMenu.do?metod=temelist
- (8) Ministry of Environment and Urbanization, Wastewater Treatment Action Plan 2017-2023. https://webdosya.csb.gov.tr/db/cygm/dokumanlar/atiksu-aritimi--8230-9458-20180410150458.pdf
- (9) Wastewater Treatment Facilities Design Guide, Former Ministry of Forestry and Water, 2013.
- (10) Statement by the Ministry of Agriculture and Forestry, 2019. https://www.hurriyetdailynews.com/turkey-may-face-water-scarcity-by-2030-official-150022
- (11) OECD Environmental Performance Reviews Turkey 2019. http://www.oecd.org/env/country-reviews/Highlights-Turkey-2019-ENGLISH-WEB.pdf
- (12) TUIK, 2019. Amount of wastewaer discharged from municipal sewage by receiving bodies. http://www.tuik.gov.tr/UstMenu.do?metod=temelist
- (13) UNStats. SDG Indicators Database. https://unstats.un.org/sdgs/indicators/database/
- (14) Bertelsmann Stiftung & SDSN, 2020. Sustainable Development Report Dashboards 2020. Turkey. https://dashboards.sdgindex.org/profiles/tur/indicators
- (15) General Directorate of State Hydraulic Works, 2019. http://en.dsi.gov.tr/about-dsi-/administration-and-finance
- (16) Wastewater Treatment Facility Project Approval, Ministry of Environment and Urbanization, 2018.
- (17) Ministry of Environment and Urbanization. https://www.resmigazete.gov.tr/eskiler/2010/10/20101001-10.htm
- (18) Revenue Administration. https://www.gib.gov.tr/yardim-ve-kaynaklar/yatirimlarda-vergisel-tesvikler/ll-konularina-gore-vergisel-tesvikler/i-organize
- (19) TSKB, 2019. Press Release. http://www.tskb.com.tr/web/307-4287-1-1/tskb-site-en/en-hakkimizda/tskbden-haberler-en/tskbs-year-end-loan-volume-reaches-tl-28-2-billion
- (20) ILO, https://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---coop/documents/publication/wcms_715845.pdf
- (21) European Environment Agency, 2013. https://www.eea.europa.eu/publications/managing-municipal-solid-waste/turkey-municipal-waste-management/view
- (22) Turkis Statistical Services, 2021. https://cip.tuik.gov.tr/#
- (23) Ministry of Environment and Urbanization, 2017. Wastewater Treatment Action Plan 2017-2023.