Training Event Urban Water Conservation and Demand Management for Utilities and all other Stakeholders

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1 Training Event Urban Water Conservation and Demand Management for Utilities and all other Stakeholders 4th November 2008, Nanjing, PR China Drinking water loss reduction: Technical, Financial and administrative aspects Dr Jose Luis Martin-Bordes Programme Officer UNW-DPC, Bonn, Germany 1

2 What is UN-Water? UN-Water is an interagency-mechanism to: add value to existing programmes and projects to maximize coherence and consistency and enhance effectiveness of its actions follow-up of the World Summit on Sustainable Development (WSSD) water-related decisions and the Millennium Development Goals (MDGs) concerning water and sanitation 2

3 3 UN-Water Agencies and Programmes

4 UN-Water Decade Programme on Capacity Development (UNW-DPC) The office of UNW-DPC supporting the Water Decade Water For Life ( ), hosted by United Nations University (UNU) in Bonn, Germany addresses all forms of capacity development, water related education, training and other forms of knowledge transfer knowledge management & production mapping and assessment of capacities mapping and evaluation of activities adds value to and explores the synergies between the activities of participating UN-Water members 4

5 Training Event Urban Water Conservation and Demand Management for Utilities and all other Stakeholders 4th November 2008, Nanjing, PR China Drinking water loss reduction: Technical, Financial and administrative aspects Dr Jose Luis Martin-Bordes Programme Officer UNW-DPC, Bonn, Germany 5

6 What is Non-Revenue Water (NRW)? NRW is the difference between the volume of water put into a water distribution system and the volume that is billed to costumers NRW comprises 3 components: Physical losses (real losses) leakage, overflows, underground Commercial losses customer meter, errors, theft Unbilled authorized consumption firefighting, consumer groups Unaccounted-for water Water transmission and distribution losses 6

7 How much water is lost? Very few data are available because of lack of adequate monitoring systems (water utility) and national reporting systems A recent report of the ADB (47 water utilities in SEA) concludes that levels of NRW average 30% of water produced, variations among individual utilities ranging from 4 to 65% Every year more than 32 billion m3 of treated water physically leak from urban water supply systems around the world 16 billion m3 are delivered to costumers for zero revenue 7 Source: The World Bank (Kingdom, Liemberger, Marin, 2006)

8 How much water is lost? 45 million m 3 of drinking water are lost in the world s water systems every day!! this quantity could serve nearly 200 million people 1/3 of the water is lost in developing countries In many of the 21 megacities (>10 million): million m 3 of clean and safe water per year are lost or not paid for 8

9 Drinking water coverage per country total access in 2004 In some cities, reduction of un-served part of the population by 50% (MDG Target 10) could be achieved simply by reducing drinking water loss in the systems, without connection to newly developed water resources 9

10 How much water is lost? 10 Source: The World Bank (Kingdom, Liemberger, Marin, 2006)

11 How much does it cost? More than US$14 billion is lost every year by water utilities around the world. More than 1/3 in developing countries 11 Source: The World Bank (Kingdom, Liemberger, Marin, 2006)

12 How much does it cost? Surplus economical damage - technical (physical) losses Surplus Costs for delayed action: 12 Accidents, foundation destabilisation, road collapse, wetting of buildings, tree and greenland damage, flooding, diseases, odour nuisance, clean up costs, and ST surplus, emergency surplus costs, electric appliances etc., groundwater contamination, pumping,hygienic risks. Source: K.U. Rudolph (2008)

13 Rehabilitation in time would have saved money! However, water loss reduction programmes usually receive 10 to 30% of the calculated need in budget expenditures. 13 Source: K.U. Rudolph (2008)

14 How much does it cost? Surplus economical damage - administrative losses excessive consumption illegal water trafficking unwillingness to pay financial destabilisation of Water Utilities = non-sustainable water services! 14

15 15 Administrative losses: illegal connection

16 16 Brand-new Water connection hose

17 17 Informal properties sold near free Water

18 What are the benefits from reduced NRW? It is not realistic to expect water utilities to eliminate all commercial and physical losses But If physical losses could be reduced by half (50%): - Additional 8 billion m3 per year of already treated water available - enough to service additional 90 million people -To save an estimated US$ 1.6 billion per year (production and pumping costs) If physical losses could be reduced by half (50%): - Another US$ 1.3 billion in additional revenues could be generated each year 18 Source: The World Bank (Kingdom, Liemberger, Marin, 2006)

19 What are the benefits from reduced NRW? Fairness would be promoted among users by acting against illegal connections and corrupt meter-reading practices Consumers would have improved service delivered by more efficient an more sustainable utilities More economic growth with new business opportunities would be created for NRW reduction activities, creation of jobs for leakage reduction activities 19 Source: The World Bank (Kingdom, Liemberger, Marin, 2006)

20 Diminishing Returns A fundamental fact about leakage control is that every possible leakage control measure follows a law of diminishing returns. As more money is spent, the return in terms of water saved due to lower losses, becomes progressively less. Some level of each activity will form part of an economic strategy. 20 Source: S. Trow, IWA, WLTF (2008)

21 IWA - WLTF approach: Squeezing the Box 1. An optimised overall Pressure Management policy: - identify presence of surges and minimise their adverse effects - basic simple reduction of excess pressures 2. An optimised Repair Time policy for all bursts 3. An economic Intervention Policy for awareness, location and repair of unreported (hidden) bursts - influenced by level of investment in leakage management infrastructure i.e. Telemetry, advanced pressure management - influenced by exit level (background and other leaks remaining after interventions) 4. An economic level of Investment in mains and services renewals which takes account of all other factors 21 Source: S. Trow, IWA, TFWL (2008)

22 Technical aspects New and low-cost techniques for leak detection, strategies for continuous remote control in monitoring and metering are available Wide gap between availability of technologies and management tools for their application Benefits by flow metering and pressure measurement (reduction of costs, risk prevention, water saving, longer lifetime, water quality control, ) Costs of failures from leaking or collapsing pipe network exceed savings in expenses for structural maintenance and rehabilitation Zone 2 Zone 1 Zone 4 Zone 3 22

23 Financial and administrative aspects Financial and technical assistance complement each other (infrastructure and capacity development) in water loss reduction programs Introduction of commercial accounting systems and financial management Framework conditions can be improved through decentralisation and commercialisation (e.g. procurement, financial autonomy) Culture of collaboration and partnership to strengthen efforts to control corruption and to build up confidence in the water management Developing ownership and corporate identity at the top management of water authorities to be backed up with level of ownership within staff of water companies and consumers 23

24 Capacity development needs Modern learning technologies (e-learning) reaching untouched audiences Vocational training of professionals at water service institutions Educating non-water professions (economists, accounting clerks, physical planners, lawyers, public administrators, journalists ) Bilateral collaboration at national level and twinning programmes of cities and water companies Service development in the water and sanitation sector is a matter of skilled and motivated staff, organisational capacity, but also (human and financial) resources and policies and laws that contribute to the sector environment 24

25 5 challenges for the way ahead Challenge 1: Make the economic benefits of reducing water loss as a contribution to proper water system maintenance visible to all stakeholders trough training and capacity development Challenge 2: Find a convincing approach to enhance human and institutional capacity towards valuation of water as the essential element for all life processes Challenge 3: Find appropriate solutions to water loss problems in any economic, climatic or cultural context Challenge 4: Make the better choice the easier choice for water loss reduction in urban areas Challenge 5: Make visible at the political level (policy and decisionmakers) the positive impacts of water loss reduction for ensuring water supply for all 25

26 The experience of Uganda 3. Some good examples in Africa Performance as at 1995 Performance as at 2007 Kampala 76% 39 Other Areas (21) NRW performance Overall % 70% 60% 50% 40% 30% 20% 10% NWSC 0% ALL AREAS OTHER AREAS KAMPALA Reduced NRW from 68% to 32.5% (Kampala - 60 to 38.5 and Other Areas 65 to 18.2) 26 Presented at the Int. Workshop on DWLR, Bonn, 3-5 Sept 2008

27 The experience of Uganda 3. Some good examples in Africa Initiatives undertaken NWSC 1. Change in management: dealing with staff attitude (worker involvement to enhance transparency and strategy ownership) 2. Operational initiatives to addressing commercial losses Conducted community awareness & amnesty programmes Regular spot checks on large customers, construction sites and auditing of meter readings Established incentives/reward for reported illegal connections Established fines/penalties for illegal connections 27 Presented at the Int. Workshop on DWLR, Bonn, 3-5 Sept 2008

28 The experience of Uganda 3. Operational initiatives for physical losses NWSC Established leak detection & management teams equipped with newly acquired leak detection equipments developed routine programmes for finding & locating non-visible leaks Attached rewards for reporting leaks & bursts - ($1.5-3) case reported 4. Organization activities Aligned the organisation structure to efforts to reduce water losses established the Water Losses Control Department & Illegal Use Reduction Unit Established a fully fledged call centre - timely response to leaks and customer complaints Encouraged competition among Areas water losses trophy Mapping of the network and computerisation of most of the systems 28 Presented at the Int. Workshop on DWLR, Bonn, 3-5 Sept 2008

29 International Workshop on Drinking Water Loss Reduction: Developing capacity for applying solutions UN Campus, Bonn, Germany 3-5 September participants Decision makers, water managers, Researchers 18 cities from 16 countries Follow up regional workshops / water loss in sanitation systems in 2009 UNW-DPC /UN-HABITAT cooperation 29

30 UNW-DPC /UN-HABITAT cooperation International Workshop on Drinking Water Loss Reduction: Developing capacity for applying solutions 30

31 Where to find UNW-DPC UNW-DPC United Nations University UN Campus Hermann-Ehlers-Str Bonn Germany Tel.: Fax:

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