In this section, proposed mitigation measures will be evaluated from an economic perspective. Measures will be assessed based on their ability to deliver a net economic improvement to the health of the Dnieper River, as well as associated measures of energy efficiency and improved financial performance. As noted in previous sections, there is a range of projects for the Vodokanal that have potential benefits. The following is a summary of projects exclusively for wastewater treatment projects, as outlined by the Utility’s director. Table 10.1 : Planned Actions on Renovation and Upgrade of Water Supply and Sewage Collection System in the City of Smolensk for 2004-2006 No. Action Initial Feedback Environmental Benefits Identified Plant Rationale Wastewater Collection and Treatment 1. Upgrade of municipal WwTP: - Better treatment rates of pollutants in downstream processes - Decreased equipment wear - Reduce risk of accidental release - Beyond improving treatment efficiency, greater energy efficiency. 1) Mechanical treatment: - building for screening devices - sand separation devices 2) Modification of biological treatment technology for nitrogen and phosphorus removal - Realization of denitrification and phosphorus removal. - Less risk of entrophication - Decreased equipment wear - Beyond improving treatment efficiency, greater energy efficiency. 3) Renovation and upgrade of sludge treatment system at the municipal WwTP - Reduction in sludge load in lagoons - Improved operational efficiency - Beyond improving treatment efficiency, greater energy efficiency. 2. Construction of a local sewage treatment facility at the Oblast Tuberculosis Clinic site - Improvement of general epidemiological situation - Reduction in incidence of tuberculosis I- mproved biological safety of water reaching open bodies - Treatment for Oblast 3. Renovation of the central sewer pump station: - Repair/construction works - Pumping equipment (Denmark) - Improved operational efficiency - Need to modify and replace pumping technology - Reduce energy consumption 4. Renovation of biological treatment ponds - Reduce risk of accidental releases - Improved treatment and operational efficiency - Negative impacts: transportation and disposal of sludge - Improve operational efficiency 5. WwTP renovation in Krasny Bor - Reconstruction – Improve wastewater treatment at plant. - Improved technology, better treatment 6. Design of the municipal sewer network for the City of Smolensk to be adjusted to existing housing area development plans - Reduction in accidental leakages in network - Current system unable to manage sewage from new housing developments - Able to treat sewage discharges effectively 7. Construction of gravity collector to connect SPS-4 and SPS-2 - Improved operational efficiency - Operational cost reduction/improved energy efficiency 8. Renovation of sewer pump station - Improved operational efficiency - Replace obsolete equipment - Improved operational efficiency - Less energy used 9. SPS-9 closure and decommissioning (construction of 1.5 km gravity collector) - Improved operational efficiency - Decommissioning – savings in energy - Reduction in maintenance expenditures and manpower costs In section 9, as projects have been understood by our engineering team, all projects were identified to have a “benefit to the general environment,” as well as an “indirect benefit to the Dnieper River Basin.” Projects 2,4,5 and 7 were assessed to have a “direct benefit to the Dnieper Basin.” In discussions with plant staff, a number of conclusions can be drawn that could lead to a preference for certain projects. One such conclusion, that is evident across all projects identified, is that the more solid matter (i.e. sand, grit and trash) that can be removed earlier in the treatment process, the more efficient the facility’s operation will be. Given the current state of the MWTP infrastructure and equipment efficiencies, immediate gains may be obtained from implementing better grit chambers and screens. Such initiatives would have positive impacts on subsequent treatment process, and result in savings on repairs and maintenance and some reductions in energy usage. It is evident that the goals of the Utility are not always in alignment with the objectives of the Dnieper River SAP. Driven by improving treatment efficacy and reducing energy usage, Plant Management are focused primarily on reducing operating costs, as noted in Section 4, the major investments are planned for the facility. The operation of the facility continues to be a conundrum – a municipal business that pays taxes back to the municipality and is allowed to run at a sustained operating loss. While improving supply, and its efficiency, may yield some revenue gains (and small repair fund has been allocated for in 2003 (9.45 million roubles, or $326,000 USD)), the dilapidated infrastructure at the treatment facility requires an immediate upgrade. With 133 million roubles ($4.59 million USD) worth of projects planned for the treatment facility over 2003 to 2006, and no funds allocated, the SVK needs to prioritize its investments based on specific mitigation objective. The goal of the Dnieper River Basin SAP is to improve the water quality in the basin, encourage biodiversity and mitigate adverse impacts on trans-boundary systems. The following analysis has been undertaken with this in mind, and focuses exclusively on wastewater treatment.