DESIGNING SUSTAINABLE BUSINESS MODELS FOR DECENTRALIZED WASTEWATER TREATMENT SYSTEMS (DEWATS)

Abstract

Expanding centralized wastewater services to all regions in Jordan is constrained by economic, topographical, and engineering challenges. As a result, decentralized wastewater treatment systems (DEWATS) are increasingly recognized as a complementary solution, particularly for rural and peri-urban areas where centralized connectivity is unfeasible. This study aims to design a sustainable and scalable business model for DEWATS in Jordan, with a focus on overcoming the institutional, financial, and regulatory barriers that have historically hindered their adoption. The research integrates spatial diagnostics, stakeholder consultations, institutional analysis, and a comprehensive financial and economic evaluation of three nature-based DEWATS configurations designed for settlements of up to 5,000 population equivalent (PE). Indicators such as average incremental cost (AIC), net present value (NPV), internal rate of return (IRR), and benefit-cost (B/C) ratios were used to evaluate technical and operational viability under both private and public investment scenarios. While all configurations demonstrated strong economic performance (IRRs > 27%, B/C > 3.7), financial feasibility remains weak without public capital support due to high per capita costs and limited revenue collection in small communities. The study identifies critical challenges, including undefined institutional mandates, lack of certified operators and regulators, insufficient cost-recovery mechanisms, and underdeveloped markets for private sector participation in O&M. Furthermore, existing tariff structures and bylaws do not adequately support capital investment or full operational cost recovery by private service providers. To address these gaps, the paper proposes a hybrid public-private-community business model incorporating performance-based service contracts, revised regulatory standards, and blended financing instruments. The model emphasizes the integration of DEWATS into spatial water safety planning, climate-resilient system design, and resource recovery to enhance environmental, social, and financial sustainability.