Tannery management and Savar situation

The environment friendly tannery estate has been launched and its production and production process activities have also been visible there at Savar, Dhaka. The Common Effluent Treatment Plant (CETP) is the main component of this industrial basement through which we’ll get an environment friendly situation in the tannery cluster. It is a huge task to manage and maintain the operation and management situation of the CETP. As the commissioning of CETP has almost completed and its operation is ongoing, therefore a strong management system is needed to adopt for this new venture.

The management of a CETP of this kind at its post commissioning stages involves technical management and financial management.

The technical management involving operation, monitoring and maintenance of the system is uniformly carried out by a technical team comprising of general manager, managers of various sections, engineers, chemists and other staffs.

The financial management involves collecting treatment charges from the member tanneries based on the charging structure, allocating money for operation and maintenance of the CETP, allocate money for repairs, new additions and modifications in CTEP units based on the requirement and  liaison with regulatory agencies, public and media on the CETP affairs.

Before thinking the adaptation of management pattern for Savar tannery estate, we should have to look the patterns and practices tried and being used in management of tannery CETPs in various countries.

Management of the CETP by a company formed by the users

This is the most widely practiced system when the CETP treats exclusively tannery effluent. A public or private limited company is formed and all the member tanneries are allotted shares to become member of the company.

This company elects a Board of Directors, Managing Director and Chairman among themselves in a General Body meeting.

The Board of Director thereafter takes charge of the administration of CETP with the MD is responsible for day-to-day administration. No remuneration is generally given to BoD and the Directors would be re-elected or replaced every year.

This system is in practice with 13 CETPs in Tamil Nadu, India, one CETP in Kanpur, India. In Kolkata, the CETP is managed by a new association formed by the relocated tanneries (CLC tanners association), which can be considered as a variant of the above system. CETP in Pakistan and three CETPs in Italy are reportedly following the same practice.

The advantage of this practice is that the tanners would be directly responsible for the treatment and its charges, economisation of operation would be optimum and it has the maximum flexibility.

The disadvantage often experienced is that the payment is defaulted and the BoD, who are among the tanner fraternity do not take strict measures to collect the arrears resulting in poor financial health of the CETP. Another disadvantage is that there may be attempts to bypass the untreated waste to reduce the cost of CETP operation.

Management of the CETP by a company formed by the users, with limited presence of Government

In certain cases, where the CETP is implemented by a Government agency and their presence in this management is remain for a short time (say, two years). And thereafter the presence of government agency is withdrawn.  Otherwise the management practice is same as above.

Four CETPs implemented by a Government agency (TALCO) in Tamil Nadu India had its presence in the BoD for 2 to 3 years and once the company stabilised, Talco had handed over the company and CETP to the users.

The advantage is that some initial Governmental control would help to regularise the CETP operation and once its sustainability is ensured, the responsibility could be passed on to the users.

Also, effective treatment could be ensured by governmental supervision with beneficial environmental protection. The disadvantage is that the tanners may try to prolong the Government presence and may try to pass on financial liabilities to the Government.

Management of CETP by a Government body

In this case where a Government department is often the only handling agency of water and waste water management in the city, would be managing the CETP, similar to one of their facilities. Such a system is normally instituted only when the tannery effluent is treated in combination with municipal sewage.

One CETP in Kanpur, India and majority of CETPs in Italy and France are managed in this fashion. The advantage of the system is that maximum degree of treatment could be ensured and in some cases, better technical management. The collection of treatment charges also may be better. The disadvantage is that the tanners often try to pass on the responsibility to such body taking over the operation and seldom carry out the mandatory pre-treatment, spoiling the system. It is possible that the Government would be burdened with continuous expenditure in the CETP for long.

Recommendation for CETP at Savar Tannery Estate

As planned, initial two years of CETP operation would be carried out by the CETP contractor and a serious collection of charges would be coming into force only after two years, when the installation of tanneries would be somewhat stabilised.

As mentioned, in most part of the world, the CETPs are managed by the association of the member units through a well qualified technical team. Same pattern may be followed here.

A company or association may be formed by the tanners migrating to the estate and a Director board, elected by the tanners could manage administration of the CETP including collection of treatment charges. If the tannery associations are not confident enough to take over the management even after the two years, a management committee comprises the representatives of BSCIC and tannery associations may be entrusted with the task.

The technical team for regular operation of the CETP may be recruited in the beginning of the second year operation of the CETP, so that they can be trained thoroughly in the CETP operation by the contractor’s personnel. After completion of one year working experience with the contractor’s team, the handing over of the CETP by the contractor to the recruited team would be smooth and easy. This training  is a part of the scope of CETP Contractor.

The CETP tender is planned in such a manner those two years of operation of CETP with all inputs, except power is built in as a part of the scope of the tendered, so that only after two years, the tanners need to share the full cost of the CETP operation.

If the cost of power bill is still higher than what can be borne by the small number of tanneries, subsidizing the power to CETP may be considered depending on the situation. After the mandatory operating period of two years by the contractor, the operation and maintenance should be taken over by the designated agency to be formed from the user’s end.

    

The writer is a leather industry consultant

 

Tannery management and Savar situation

The environment friendly tannery estate has been launched and its production and production process activities have also been visible there at Savar, Dhaka. The Common Effluent Treatment Plant (CETP) is the main component of this industrial basement through which well get an environment friendly situation in the tannery cluster. It is a huge task to manage and maintain the operation and management situation of the CETP. As the commissioning of CETP has almost completed and its operation is ongoing, therefore a strong management system is needed to adopt for this new venture. The management of a CETP of this kind at its post commissioning stages involves technical management and financial management. The technical management involving operation, monitoring and maintenance of the system is uniformly carried out by a technical team comprising of general manager, managers of various sections, engineers, chemists and other staffs. The financial management involves collecting treatment charges from the member tanneries based on the charging structure, allocating money for operation and maintenance of the CETP, allocate money for repairs, new additions and modifications in CTEP units based on the requirement and liaison with regulatory agencies, public and media on the CETP affairs. Before thinking the adaptation of management pattern for Savar tannery estate, we should have to look the patterns and practices tried and being used in management of tannery CETPs in various countries. Management of the CETP by a company formed by the users This is the most widely practiced system when the CETP treats exclusively tannery effluent. A public or private limited company is formed and all the member tanneries are allotted shares to become member of the company. This company elects a Board of Directors, Managing Director and Chairman among themselves in a General Body meeting. The Board of Director thereafter takes charge of the administration of CETP with the MD is responsible for day-to-day administration. No remuneration is generally given to BoD and the Directors would be re-elected or replaced every year. This system is in practice with 13 CETPs in Tamil Nadu, India, one CETP in Kanpur, India. In Kolkata, the CETP is managed by a new association formed by the relocated tanneries (CLC tanners association), which can be considered as a variant of the above system. CETP in Pakistan and three CETPs in Italy are reportedly following the same practice. The advantage of this practice is that the tanners would be directly responsible for the treatment and its charges, economisation of operation would be optimum and it has the maximum flexibility. The disadvantage often experienced is that the payment is defaulted and the BoD, who are among the tanner fraternity do not take strict measures to collect the arrears resulting in poor financial health of the CETP. Another disadvantage is that there may be attempts to bypass the untreated waste to reduce the cost of CETP operation. Management of the CETP by a company formed by the users, with limited presence of Government In certain cases, where the CETP is implemented by a Government agency and their presence in this management is remain for a short time (say, two years). And thereafter the presence of government agency is withdrawn. Otherwise the management practice is same as above. Four CETPs implemented by a Government agency (TALCO) in Tamil Nadu India had its presence in the BoD for 2 to 3 years and once the company stabilised, Talco had handed over the company and CETP to the users. The advantage is that some initial Governmental control would help to regularise the CETP operation and once its sustainability is ensured, the responsibility could be passed on to the users. Also, effective treatment could be ensured by governmental supervision with beneficial environmental protection. The disadvantage is that the tanners may try to prolong the Government presence and may try to pass on financial liabilities to the Government. Management of CETP by a Government body In this case where a Government department is often the only handling agency of water and waste water management in the city, would be managing the CETP, similar to one of their facilities. Such a system is normally instituted only when the tannery effluent is treated in combination with municipal sewage. One CETP in Kanpur, India and majority of CETPs in Italy and France are managed in this fashion. The advantage of the system is that maximum degree of treatment could be ensured and in some cases, better technical management. The collection of treatment charges also may be better. The disadvantage is that the tanners often try to pass on the responsibility to such body taking over the operation and seldom carry out the mandatory pre-treatment, spoiling the system. It is possible that the Government would be burdened with continuous expenditure in the CETP for long. Recommendation for CETP at Savar Tannery Estate As planned, initial two years of CETP operation would be carried out by the CETP contractor and a serious collection of charges would be coming into force only after two years, when the installation of tanneries would be somewhat stabilised. As mentioned, in most part of the world, the CETPs are managed by the association of the member units through a well qualified technical team. Same pattern may be followed here. A company or association may be formed by the tanners migrating to the estate and a Director board, elected by the tanners could manage administration of the CETP including collection of treatment charges. If the tannery associations are not confident enough to take over the management even after the two years, a management committee comprises the representatives of BSCIC and tannery associations may be entrusted with the task. The technical team for regular operation of the CETP may be recruited in the beginning of the second year operation of the CETP, so that they can be trained thoroughly in the CETP operation by the contractors personnel. After completion of one year working experience with the contractors team, the handing over of the CETP by the contractor to the recruited team would be smooth and easy. This training is a part of the scope of CETP Contractor. The CETP tender is planned in such a manner those two years of operation of CETP with all inputs, except power is built in as a part of the scope of the tendered, so that only after two years, the tanners need to share the full cost of the CETP operation. If the cost of power bill is still higher than what can be borne by the small number of tanneries, subsidizing the power to CETP may be considered depending on the situation. After the mandatory operating period of two years by the contractor, the operation and maintenance should be taken over by the designated agency to be formed from the users end. The writer is a leather industry consultant