An analytical study of investment in the use of treated wastewater project in the Egyptian agricultural sector
Keywords:
CBA, EC 501, Investment, NPV, Treated WastewaterAbstract
Egypt is suffering from water scarcity and tried to pursue a package of policies to decrease the water deficit, by using unconventional resources like treated wastewater. Wastewater is 6.9 billion m3/year, the total of treated sewage is 5.1 billion m3 in 2019/20. The wastewater reuse potential in agriculture is 1 billion m3/year which leads us to question: What is the economic return on the use of treated sewage to reduce the water deficit and achieve targeted development? This paper aims to identify the value of investment projects in the sewage treatment sector and determine the cost and returns of treated wastewater in Agriculture by using (CBA) approach and indicators of financial analysis. The results prove that the binary stage is a commitment to the state and its responsibility to preserve the environment, the ratio of reuse of sewage to the total cost of wastewater treatment is 12%, while the ratio of the cost of compulsory treatment to the state to the total cost of wastewater treatment is 88%. It is expected that value add will increase and the benefits will be 22.5 billion L.E. The paper recommends encouraging investors to the wastewater treatment sector by setting up treatment units on their farms. NPV for the project is 388.71 Million L.E which means the project is greater than its cost, profitable, and, if the firm accepts the project, then the value of the firm would increase. PI for the project equals 1.2 Million L.E which means the investment in this project would be profitable and should be implemented and IRR is 16.4%, It is greater than the rate of cost of capital 14%, then investment in the concerned project would be profitable.
References
Abdel Wahaab, R. (2015). Water and Sanitation in Egypt. The African Development Bank (AFDB), Côte d’Ivoire, www.afdb.org/en/countries-north-africa/egypt
Abdou, A., Gawad, I. & ElZein, Z. (2019). Sustainable water treatment methods to be used in urban communities. Handbook of Environmental Chemistry, 75, 411–426. https://doi.org/10.1007/698_2017_105
Adrover, M., Farrús, E., Moya, G. & Vadell, J. (2012). Chemical properties and biological activity in soils of Mallorca following twenty years of treated wastewater irrigation. Journal of Environmental Management, 95 Suppl., S188-92. https://doi.org/10.1016/j.jenvman.2010.08.017
AbuZeid, K. M. (2021). Water sustainability in Egypt. Part I: Egypt’s water security strategies up to 2050 given potential GERD Impacts, The Egyptian Center for Economic Studies, Egypt, p31-32
AfDB/OECD/UNDP (2016). African Economic Outlook 2016: Special Theme: Sustainable Cities and Structural Transformation.
Albshir, T. (2020). Consensus and contradiction between internal rate of return and net present value in comparing two mutually exclusive projects, Imam Muhammad bin Saud Islamic University, Saudi Arabia September,p2,https://www.researchgate. net/publication/344381148_Consensus_and_Contrdiction_between_Internal_Rate_of_Return_and_Net_Present_Value_in_
comparing_two_Mutually_Exclusive_Projects_al_nd_alhalyt_alqymt_wsafy_aldakhly_alayd_mdl_myary_byn_waltard_altwafq_m_
Al-busaidi, A. & Ahmed, M. (2017). Water resources in arid areas: the way forward maximum – maximum use of treated wastewater in agriculture metadata of the chapter that will be visualized
in springer link. June 2019. https://doi.org/10.1007/978-3-319-51856-5
CAPMAS (2021). Annual Bulletin for Population.
CAPMS (2021). Annual Bulletin of Pure Water & Sanitation Statistics.
Corcoran, E., Nellemann, C., Baker, E., Bos, R. Osborn, D. & Savelli, H. (2010). Sick water ? The central role of wastewater management in sustainable development. UNEP, Norway,
Devi, M. G. (2009). A framework for determining and establishing the factors that affect wastewater treatment and recycling. University of Melbourne Parkville.
Drechsel, P., Scott, A., Sally, R., Redwood, M. & Bachir, A. (2010). Wastewater Irrigation and Health: Assessing and Mitigating Risk in Low-Income Countries. International Water Management Institute.
Egyptian Ministry of Environment (2017). State of the Environment Report 2017 Arab Republic of Egypt. http://www.eeaa. gov.eg/portals/0/eeaaReports/SoE-2017/Egypt SOE 2017 –SPM English.pdf
Elbana, T. A., Bakr, N. & Elbana, M. (2019). Reuse of treated wastewater in Egypt: Challenges and opportunities. Handbook of Environmental Chemistry, 75(May 2017) Springer, Switzerland,
–453. https://doi.org/10.1007/698_2017_46
Elfanssi, S., Ouazzani, N. & Mandi, L. (2018). Soil properties and agro-physiological responses of alfalfa (Medicago sativa L.) irrigated by treated domestic wastewater. Agricultural Water
Management, 202(C), 231–240. https://econpapers.repec.org/RePEc:eee:agiwat:v:202:y:2018:i:c:p:231-240
El-Zanfaly, H. T. (2015). Wastewater reuse in agriculture: a way to develop the economies of arid regions of the developing countries. Journal of Environment Protection and Sustainable
Development, 1(3), 144–158. files.aiscience.org/journal/article/pdf/70140023.pdf%0A%0A
EPA (2012). EPA Guidelines for Water Reuse U.S. Environmental Protection Agency. Guidelines for Water Reuse, September, 643.
FAO (2015). The State of Food Insecurity in the World.
FAO (2017). Wastewater Treatment and Use in Agriculture. http://www.fao.org/docrep/T0551E
Fine, P., Halperin, R. & Hadas, E. (2006). Economic considerations for wastewater upgrading alternatives: An Israeli test case. Journal of Environmental Management, 78(2), 163–169.
https://doi.org/10.1016/j.jenvman.2005.04.014
Frascari, D., Zanaroli, G., Motaleb, M., Annen, G., Belguith, K., Borin, S., Choukr-Allah, R., Gibert, C., Jaouani, A., Kalogerakis, N., Karajeh, F., Rault, P., Khadra, R., Kyriacou, S., Li, W., Molle, B., Mulder, M., Oertlé, E. & Varela-Ortega, C. (2018). Integrated technological and management solutions for wastewater treatment and efficient agricultural reuse in Egypt, Morocco, and Tunisia: Solutions for wastewater treatment and reuse in North Africa. Integrated Environmental Assessment and Management, 14. https://doi.org/10.1002/ieam.4045
Grant, S. B., Saphores, J. D., Feldman, D. L., Hamilton, A. J., Fletcher, T. D., Cook, P. L. M., Stewardson, M., Sanders, B. F., Levin, L. A., Ambrose, R. F., Deletic, A., Brown, R., Jiang, S. C., Rosso, D., Cooper, W. J. & Marusic, I. (2012). Taking the “waste” out of “wastewater” for human water security and ecosystem sustainability. Science, 337(6095), 681–686. https://doi.org/10.1126/science.1216852
HBNRC (2015). Egyptian Code for the Use of Sewage in Agriculture. ECP, 501-2015.
Minstry of Water Resourses and Irrigation, (2018). Water Resources Development and Management Strategy, Egypt,p 15-17. www.mwri.gov.eg/water-staretgy-2050
Jaramillo, M. F. & Restrepo, I. (2017). Wastewater reuse in agriculture: A review about its limitations and benefits. Sustainability (Switzerland), 9(10). https://doi.org/10.3390/su9101734
Jeuland, M. (2015). Challenges to wastewater reuse in the MiddleEast and North Africa. Middle East Development Journal, 7, 1–25. https://doi.org/10.1080/17938120.2015.1019293
Loutfy, N. M. (2010). Reuse of wastewater in mediterranean region, Egyptian experience. Springer, 183–213. https://doi.org/10.1007/698_2010_76
Mahgoub, S. A. (2019). Microbial hazards in treated wastewater: Challenges and opportunities for their reusing in Egypt. Handbook of Environmental Chemistry, 75(June 2018), 313–336.
https://doi.org/10.1007/698_2018_314
Ministry of Planning and Economic Development (2021). Egypt’s Voluntary National Review, Egypt. https://sustainabledevelopment. un.org/content/documents/279512021_VNR_Report_Egypt.pdf
Monteverdi, M. C., Da Canal, S., Del Lungo, A., Masi, S., Larbi, H. & De Angelis, P. (2014). Re-use of wastewater for a sustainable forest production and climate change mitigation under arid
environments. Annals of Silvicultural Research, 38(1), 22–31. https://doi.org/10.12899/ASR-778
Mota, A. G. (2015). Project Investment Analysis, ISCTE Business School, Portugal , https://repositorio.iscte-iul.pt/bitstream/10071/9636/1/PROJECT INVESTMENT ANALYSIS.pdf
MSEA, I. (2008). Improved Waste Water Reuse Practices Environmental Evaluation of Using Treated Wastewater in Agriculture: Luxor Demonstration Site. Report No. 45.
Oliveira, S. & Sperling, M. (2008). Reliability analysis of wastewater treatment plants. Water Research, 42. 1182–1194. https://doi.org/10.1016/j.watres.2007.09.001
Omran, E. S. E. (2019). Cloud-based non-conventional land and water resources for sustainable development in Sinai Peninsula, Egypt. Handbook of Environmental Chemistry, 75 (August
, 339–374. https://doi.org/10.1007/698_2017_63
Ministry of Planning and Economic Development (2015). Sustainable Development Strategy: Vision of Egypt 2030 , Egypt .
Prihandrijanti, M., Malisie, A., & Otterpohl, R. (2008). Cost–benefit analysis for centralized and decentralized wastewater treatment system (Case study in Surabaya-Indonesia). In:
Efficient management of wastewater, 259–268. https://doi.org/10.1007/978-3-540-74492-4_22
Sato, T., Qadir, M., Yamamoto, S., Endo, T. & Ahmad, Z. (2013). Global, regional, and country level need for data on wastewater generation, treatment, and use. Agricultural Water Management,
, 1–13. https://doi.org/10.1016/j.agwat.2013.08.007
Sewilam, A. (2020). Water for sustainable rural & agriculture development in Egypt. Alixandria Library Alixandria, Egypt, 10.
Sheikh, B. (2008). Socioeconomic aspects of wastewater treatment and water Reuse BT – Efficient management of wastewater. In: I. Al Baz, R. Otterpohl & C. Wendland (eds.) Efficient management of wastewater, Springer Berlin Heidelberg, 249–257.
Statistics, Centeral Agency for Public Mobilization and Statstics. (2020). Annual Bulletin Pure Water & Sanitation Statistics. Egypt, https://www.capmas.gov.eg/
Sunstein, C. (2021). Some costs & benefits of cost-benefit analysis. Daedalus, 150, 208–219. https://doi.org/10.1162/daed_a_01868
UN ESCWA (2019). Moving Towards Water Security in the Arab Region. The United Nations Economic and Social Commission for Western Asia, 3.
Welle, K., Ghezae, N., Naaman, R. & Aoubouazza, M. (2007). Regional water demand initiative for the Middle East and North Africa WaDImena Mid-Term. Review Final Report Commissioned
by WaDImena Submitted by ODI.
Wilson, G. (1994). Guide to benefit-cost analysis in transport Canada. September. The National Academies of Sciences Engineering Medicine , http://www.evaluaciondeproyectos.es/EsWeb/
Recursos/guias_acb/PDF/3.pdf.
Zidan, M. & Dawoud, M. (2013). Agriculture use of marginal water in Egypt: Opportunities and challenges. 661–679. https://doi.org/10.1007/978-94-007-5684-7_43
Zubari, W., Al-Karablieh, E., Khater, A., Choukr-Allah, R. & Abdrabo, M. (2013). Water governance in the Arab Region. UNDP,USA, 40-50, https://www.academia.edu/26354462/Water_Governance_in_the_Arab_Region_managing_scarcity_and_securing_the_future
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Bulgarian Journal of Agricultural Science
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
