Water-Energy Nexus Activity (WENEXA)

U.S. Assistance Leverages $28m Municipal Waste Water Reuse Project to Improve Water Situation in Nagpur, Maharashtra

In response to rising water shortages, both urban and rural, caused by inadequate infrastructure, excessive ground water pumping and rising demand by industrial and commercial users, the U.S. Government, through the U.S. Agency for International Development (USAID), supported the development of a large scale water reuse project in collaboration with the Nagpur Municipal Corporation (NMC).

In response to the ongoing water crisis, USAID’s Water and Energy Nexus Activity (WENEXA) team developed a water reuse project jointly with NMC in recognition of the fact that water reuse is a critical component in NMC’s long-term water resources master plan. Next, the WENEXA team developed detailed pre-feasibility studies and engaged various end-users and stakeholders to begin project development. NMC reached an agreement with MahaGenco (the 12,000 MW state-owned power generation company) to use treated waste water as a source for the substantial water needs of its power plants. 
 
Separately, NMC entered a project agreement with MahaGenco to supply up to 110 million litres per day (MLD) to a new 1,000 MW coal-fired power station to be owned and operated by MahaGenco. NMC will build a new sewage treatment plant capable of producing and conveying high quality water to MahaGenco, some 15 kms away.

This will result in the increased availability of fresh water for NMC from regional water reservoirs to serve its growing needs – some 1m people will directly benefit by this water reuse scheme. USAID is also pleased that NMC and MAHAGENCO have received a co-financing commitment of 70% of the INR 1.3 billion (US$28m) total project costs in the form of a capital grant from India’s JnNURM (Jawaharlal Nehru National Urban Renewal Mission) for the construction of this project. 

 For more information about USAID assistance programs, please visit http://www.usaid.gov/india/ .

The Goal of WENEXA:

The goal of WENEXA is to bridge the policy gap between the water and energy sectors so that problems involving the interaction of the two sectors can be addressed and reform efforts can move forward. Activities under this initiative aim to achieve progress in the following areas:

• Establishing a mutual understanding and framework for joint policy development between institutions in the water and energy sector;
• Strengthening and linking institutions in both sectors, specifically water and energy policy makers, ground water boards and power companies at the state level, and foster the formation of local level power companies;
• Specific water-energy projects that demonstrate cross-sectoral solutions and investment opportunities;
• A broadened understanding and willingness to implement energy-water solutions within targeted rural areas.

Water & Energy Nexus (WENEXA)
		The Water Energy Nexus Activity (WENEXA) is a bold initiative designed to address seemingly intractable problems whose roots lie at the intersection of India’s water and energy sectors. The Vicious Cycle: below cost electricity tariffs may have led to the overuse of water for irrigation, which in turn has produced dramatic declines in groundwater levels. Water Quantity: The mining of ancient aquifers from inexpensive deep wells has a direct negative social impacts; water tables fall below levels that can be hand-pumped, and water that was once free is replaced by water that must be purchased from deep well owners. Water Quality: Over-pumping causes a deterioration in the quality of the water being pumped, and in many areas, it is high in arsenic or other contaminants.

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		Jim Hogan Chief of Party A-6, Qutab Hotel & Apartments, Shaheed Jeet Singh Marg, New Delhi-110016  91-11-416 88773, 416 89084/5/6 Fax: 91-11-416 89087 Email: jim.hogan@paconsulting.com