- Oct 3, 2018
- 3,165
| TYPE | Infrastructure |
| CLIENT | Russia |
| PROJECT | National Water Development & Security Program |
| PROJECT COST | 28,000,000,000.00 |
| COMPLETION DATE | 01/07/2025 |
| PROJECT INFORMATION | Following consultation with Bain & Co., the consultancy firm identified four areas of challenges for Russia to address the issues of water security and development. In a recent analysis conducted by Bain & Co., Russia faces pressing challenges that require attention to ensure sustainable water usage and development. Bain & Co.'s assessment underscores the critical imperative for Russia to address these multifaceted challenges promptly. By implementing strategic reforms in the legal framework, labor changes, governance cooperation, and water sectors, Russia can pave the way for resiliency in economic development. Bain & Co. addressed the following four points. Sanitation Access: While Russia has achieved universal access to water, there is a gap in sanitation services. Russia possesses one fifth of the world's fresh water reserve but this water amount is rather unevenly distributed within Russia's territory. Thus, the central and southern regions of European Russia, where 80% of the country's population and industry is concentrated, have only 8 % of water resources. The majority of the water supply and sanitation systems in the Russian Federation were constructed during the 1970s to 1980s and due to physical and technological wear, require replacement or modernization. The current state of water supply and sanitation infrastructure has an adverse impact on the environmental situation in the country. Wastewater Treatment: A significant portion of wastewater, about 15%, remains untreated. This poses environmental and public health risks, as untreated wastewater can contaminate natural water sources and spread diseases. Non-Revenue Water: Non-revenue water, which includes water lost before it reaches consumers due to leaks, theft, or meter inaccuracies, is a major issue. Russia loses 50% of its procured water, primarily through leaks in the distribution system. This inefficiency represents a substantial loss of resources and increases operational costs for water utilities. Nepotism and Procurement Issues: The construction and maintenance of Russia's water network are reportedly influenced by nepotism. Suppliers of essential components, such as pipes and valves, are selected based on their connections with local government bodies and utility companies rather than the quality of their products. This practice can lead to the use of substandard materials, further exacerbating issues like leaks and system failures. Sanitation Access: Description Cost Range (USD) Notes Septic Tank Installation $3,000 - $10,000 Depends on size, material (concrete, polyethylene, fiberglass) Excavation Costs $2,700 - $3,905 Required for below-ground installations Labor Costs for Installation $1,000 - $1,400 Additional to excavation costs Septic Tank Maintenance $120 - $350 (per pumping) Pumping required every 2-3 years Sewer System Connection Fees $1,500 - $4,000 Fees for connecting to municipal sewer systems Sewer System Installation $5,000 - $20,000 For areas without existing sewer lines Sewer System Maintenance Fees Varies Monthly/quarterly fees for municipal maintenance Wastewater Treatment: To address this issue the Russian Government has earmarked $28 billion dollars in subsidized funds for Russian citizens to directly access in the identified areas of concern. Using the E-Russia app citizens can send evidence of below-standard sanitation infrastructure including septic tanks and sewers and request a grant of up to $15,000. The cost of installing advanced sanitation facilities such as septic tanks and sewers can vary significantly based on various factors, including location, soil type, and the specific requirements of the installation. Therefore citizens can request an increase of the grant to $30,000 through the appeals board at the Ministry of Environment and Ecology. The municipality will be required to go with the more affordable alternative if it exists with the remaining credit returning back to the state for other usage. New anti-corruption laws will increase scrutiny and empower the competent investigation authority to react to tips about potential corruption in the process. Initial Capital Costs: Construction of treatment facilities. Purchase and installation of equipment (e.g., pumps, clarifiers, aerators, filters). Engineering and design costs. Permitting and regulatory compliance costs. Ongoing Operational Costs: Labor costs for plant operators and maintenance personnel. Energy costs for running equipment. Chemicals and consumables for the treatment process. Routine maintenance and repair of equipment. Compliance monitoring and reporting. The Russia Government will offer for large municipal plants, with a maximum subsidy cap of $20.2 billion and using the upper-cost estimate of $100 million per plant with the expected subsidy to cover 550 plants new plants. In addition, the Government will offer for small-to-medium-sized plants to fund 2,500 plants. Non-Revenue Water Technical Solutions Leak Detection and Repair: Regular Inspection: Implementing a regular inspection and maintenance program to identify and fix leaks promptly. Advanced Technologies: Utilizing advanced leak detection technologies such as acoustic sensors, ground-penetrating radar, and smart water meters. Pipeline Replacement and Rehabilitation: Replacing old and deteriorating pipes with new, durable materials to reduce the frequency of leaks. Using techniques such as pipe lining and pipe bursting to rehabilitate existing pipelines without extensive excavation. Pressure Management: Maintaining optimal water pressure in the distribution network to minimize stress on pipes and reduce leaks. Installing pressure-reducing valves and pressure management systems to control and stabilize water pressure. Smart Metering and Monitoring: Deploying smart water meters that provide real-time data on water usage and detect anomalies that may indicate leaks or unauthorized usage. Implementing Supervisory Control and Data Acquisition (SCADA) systems to monitor and control water distribution networks. These technical tools will be included under the overall project for citizens to access through E-Russia. The information provided by Bain & Co. represents the current best practices in the industry. These new technologies will be eligible for tariff-free entry if applied for through E-Russia and reviewed by the Ministry of Trade available for appeal. Managerial Solutions Water Audits: To Conduct regular water audits to identify the sources and extent of NRW and prioritize areas for intervention. To use data analytics through the E-Russia initiative to analyze water consumption patterns and identify discrepancies that may indicate water losses. Community Engagement and Education: To Educate the public about the importance of water conservation and the impact of NRW. To establish easy-to-use reporting systems for the public to report leaks and illegal connections through the E-Russia program and with local responsiveness. Improved Billing and Metering Practices: To ensure all water connections are accurately metered and meters are regularly calibrated and maintained. To implement effective billing systems that reduce the chances of revenue losses due to inaccurate metering or billing errors. Legal and Regulatory Measures: So strengthenthe enforcement of regulations against illegal connections and water theft. To develop policies and incentives that encourage efficient water use and investment in infrastructure upgrades and projects as opposed to wasteful investments. The Russian Government will finance these projects through a single $25 billion investment which will be supported by an additional $15 billion in Green T-Bonds. Lastly, the Government has recovered $12.5 billion in misappropriated funds and will redirect them for development and maintenance projects. Case Studies and Best Practices Singapore: Singapore’s Public Utilities Board (PUB) employs advanced metering infrastructure, real-time monitoring, and comprehensive water audits to maintain one of the lowest NRW rates in the world. Zaragoza, Spain: Zaragoza has successfully reduced its NRW through a combination of technical upgrades, public awareness campaigns, and improved metering and billing practices. The Russian Government will re-centralize the water utility companies under the oversight of the National Water Resource Management Company (NKUR). NKUR will be responsible for overseeing efficiency of the water utility companies and monitor their rates, competitiveness, and bidding process. Furthermore in light of growing local nepotism in the procurement and maintenance process, the Ministry of Justice has been instructed to conduct audits in high-risk identified areas for corruption and monitor the implementation of this program. The Ministry of Justice and Ministry of Environment and Ecology will further be granted additional powers pursuant to the Law No. 20453 to centralize the |
| ENCRYPTED | No |
