Implementing Clean Water Business Model

LightCastle Analytics Wing
August 31, 2017
Implementing Clean Water Business Model

The Opportunity

High water salinity is a serious concern in Southern Bangladesh. Since 2010, GIZ Bangladesh, in association with German Association, has collaborated with Bangladesh Government’s Sustainable & Renewable Energy Development Authority (SREDA) to build 122 solar-powered clean water technologies to cater to safe water needs for the peri-urban and rural populations across the Southern Delta. However, to ensure sustainability, multiple business models require exploration, and the ones that are most viable need implementation.

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Our Approach

Enter LightCastle (LCP) to support GIZ’s noble endeavor. The work was divided into two phases. LCP chose 5 sites – Barguna, Pirojpur, Satkhira, Khulna, and Barisal – to conduct in-depth market studies, gauging business potential and optimizing models, customized for each region. Variables such as income, proximity to homes, and prevalence of institutional buyers among others gave vital cues with respect to shortlisting business models. Based on market data in combination with the technical competence of three different technologies (pond water filtration, groundwater, and desalination), LCP primarily selected seven world-proven models and after a thorough cost-benefit analysis of each, recommended 3 models (micro-entrepreneurship, NGO and CBO) for pilot implantation across nine sites in three regions.

Running for one year, in phase 2, the assignment took on a more action-oriented approach. Albeit expensive, desalination technology rendered the purest form of water and, therefore, garnered the greatest demand. But to be able to sustain this expensive setup, a continuous and effective forward supply chain needed to be established. This led LCP to continuously engage with multi-level stakeholders ranging from public institutions to water technology partners to local organizations. Leveraging data points, LCP set up water ATMs at dispensing sites for price optimization. Furthermore, LCP employed water agents for mobile delivery, built capacity, carried out promotional campaigns, created forward market linkages, and maintained financial records to evaluate project effectiveness.

The Future

Based on initial results, the micro-entrepreneurship model looks to hold the most potential. Practical challenges constrained the effectiveness of the NGO and CBO model. The project, awaiting national approval, is expected to publicly commence from the 2nd quarter of 2017.

WRITTEN BY: LightCastle Analytics Wing

At LightCastle, we take a data-driven approach to create opportunities for growth and impact. We consult and collaborate with development partners, the public sector, and private organizations to promote inclusive economic growth that positively changes the lives of people at scale. Being a data-driven and transparent organization, we believe in democratizing knowledge and information among the stakeholders of the economy to drive inclusive growth.

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