1 AIT Asian Institute of Technology

An assessment of regulatory and economic measures in the management of Hanoi's sewerage system

AuthorTran Thi Hien Hanh
Call NumberAIT Thesis no.UE-99-06
Subject(s)Salwage (Waste, etc.)--Vietnam--Hanoi

NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Science.
PublisherAsian Institute of Technology
AbstractRapid growth of population and urban industrial activities in Hanoi have generated serious management problem in the city's sewerage and drainage system (for brevity henceforth referred as simply sewerage system). Regulatory and economic measures are basic tools for managing the sewerage system as for any other environmental management task. The environmental training and education (suasive measures) is also important for supporting the key management measures. With the above in view, this study investigated the scope of greater and effective application of these three sets (i.e. regulatory, economic, and suasive) of management measures to improve Hanoi's sewerage system. The results of this investigation are summarized below. Because of economic constraints and poor environmental management, most industrial and domestic wastewater in Hanoi has long been directly discharged into the sewerage system without treatment. The amount of wastewater currently discharged into this system is about 300,000m3/day. The amount of untreated wastewater from factories discharged into open channels include toxic materials such as lead, cadmium, chromic, mercury, arsenic. Their effects on public health and degrading the life quality of the city residents are serious. The review of the management measures of sewerage system in Hanoi city for this study was conducted by collecting information from secondary and primary sources. Although elements of all three major sets of management measures are found to exist, their application by the managing authorities is insufficient and inappropriate. The regulatory measures are based on the Command and Control (CAC) principle. The National Law on Environmental Protection (Articles 15 and 26) and the Law on Water Resource are two key sources of such regulatory measures. Regulations for management and protection of Hanoi's sewerage and drainage system including the provision of penalties for violation of sewerage system regulations are issued pursuant to the decision 6032/QD-UB. The latter is the basic source of major regulatory measures to manage the sewerage system of this city. Besides, the Vietnam Water Standards, passed by MOSTE (1995), play an important role in sewerage system management. Economic measures based on the principle of Market Based Incentives (MBis), of necessity, need to be accompanied the regulatory measures. Such measures considered in this study are subsidies, user charges and financial enforcement incentives. What is found include: subsidies are in the form of grant and soft loan from the central government to the authorities such as the Hanoi Sewerage and Drainage Company (HSDC) for maintaining and managing the sewerage system; the user charge for drainage and sewerage service is a 10% surcharge on the charge for water consumption; other charges are product charge, emission charge that are used to restrict pollution by industries in the city; the financial enforcement incentives are used in the form of penalties for violations of regulatory measures on sewerage and drainage system with punishment levels ranging from 20,000 VND to 500,000 VND for individuals and from 2,000,000 VND to 10,000,000 VND for organizations. The study has used eight evaluating criteria (clarity, practicability and efficiency, incentives for improvement, fairness, cost-effectiveness, enforceability, concordance with institutional framework, and moral consideration) to assess the management measures that are now applied 11 in the sewerage system management in Hanoi city. This assessment shows that the currently prevailing legal and regulatory framework is incomplete with overlapping institutional responsibilities and they bear signs of inconsistencies with related regulations and laws. For example, floodwater and wastewater from the Hanoi area (management task of HSDC) is discharged into the Red River and Nhue River (the latter is managed by MOARD). The questionnaire survey results also confirm that the regulations on the sewerage system and environmental laws are too general, and difficult to implement. The findings of the study show that fragmentation of responsibilities among agencies lead to inefficient regulations. The sewerage system includes 210 km sewers, whereas, HSDC manages 140 km. More than 60 km is thus left for maintenance by local authorities. Violations of regulations are always occurring for lack of enforceable policy. The standards system is not clear. The standard B level is required for all water bodies around Hanoi, including both drinking water and other water sources. Revenue from water supply charge and the surcharge on sewerage system do not adequately reflect supply and operation costs. In 1999, expenditure for the sewerage and drainage system management was 27,038 million, whereas, total revenue from general taxation, user charges of environmental services, water supply and sewerage system together was only 22,605 million VND. Remaining expenditure for these services come from grant or soft loans of national government. Price of water consumption is very low (1,500 VND!m\ which leads to waste of water and increase in wastewater volume into the sewerage system. Collection for water supply bill and surcharge for the sewerage service are ineffective because weakness in the collection system. Thus, the system is not cost-effective. The punishment levels are set too low to be effective as disincentives to potential polluters. The other set of measures that need to accompany the regulatory and economic measures is suasive measures. The findings on the state of applying these measures are as follows: some environmental education and awareness raising (BEAR) programs are in place; example is that of the Clean and Green Hanoi campaigns, directed by TUPWS. This has been implemented with cooperation of HSDC, URENCO, HWBC, factories in the city and local government and communities. The Hanoi Women's Union has also been active and effective in environmental awareness raising campaign by involving the housewives. However, these programs are fragmented and lack continuity. Weak knowledge base and weak links with public policy lead to lack of concordance in the institutional framework. The study's recommendations for improvement of sewerage management measures include: to clarify the standards system and regulations; to specify each agency's (e.g. MOARD, and HSDC) responsibilities; to strengthen the enforcement of regulations on sewerage system; monitoring programs to reduce overlapping tasks in the sewerage system management; and to increase practicability of the management measures and efficiency in their implementation. The economic measures should be reviewed for setting charges and fines at appropriate levels, and to reduce subsidies to achieve cost-effectiveness. The BEAR programs should be promoted through coordination among MOSTE, DOSTE, HSDC to ensure continuation of training programs and environmental awareness campaign. HSDC should strive to increase the level of funding in their annual operating budget for human resource development to improve skills of professionals, managers and equipment operators.
Year2000
TypeThesis
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Development and Sustainability (DDS)
Academic Program/FoSUrban Environmental and Management (UE)
Chairperson(s)Amin, A.T.M. Nurul ;
Examination Committee(s)Zimmermann, Willi;Thanh, Nguyen Cong ;
Scholarship Donor(s)Swiss Agency for Development and Cooperation (SDC);
DegreeThesis (M.Sc.) - Asian Institute of Technology, 2000


Usage Metrics
View Detail0
Read PDF0
Download PDF0