THE WATER UTILITIES IN ROMANIA
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1 Romanian Water Association THE WATER UTILITIES IN ROMANIA Vasile CIOMOS, PhD President RWA SOMES SOMES WATER PAST AND PRESENT 20 YEARS OF CHALLENGES
2 Content 1. The regional context 2. Start up conditions 3. Action plans 4. Show case Somes Water Company 5. Intermediate results 6. The future of Somes Water Company 7. Conclusions
3 The regional context Romania is located in CEE and was a centralized communist country before 89; Today Romania is a democratic country; the economy has a long period of transition;
4 Start up conditions ( 90)( Very bad status of the water infrastructure Low level of accessibility of the population to piped water (less than 50%) and poor service quality Non monitored water quality and very limited waste water treatment High energy consumption and low level of metering No transparency and inadequate accountability No specific legislation and low level of tariffs Large number of small and inefficient water utilities (more than 800)
5 Action plans (1) A number of actions have been put in motion in the last 20 years to modernize the sector: address the urgent problems in the large cities with EBRD, the medium sized cities with EIB and poor rural areas with WB progressive investment made in the main utilities starting with small amounts of money and large management development component (FOPIP) and continuing with larger amounts and little institutional component, in cycles of about 5 years each
6 Action plans (2) focus initially on improving the efficiency of the distribution system and then end with treatment stations and waste water plants setting up WOP s between the main utility in the region and the small utilities extending gradually the area of operation for achieving an economic scale that can sustain an efficient operation; Integrated approach (urban/rural and water/ waste water) when tools for planning and management came in place
7 Some results in figures Year Continuity of the service hours/day Complains % / conn. Energy cost vs Operation cost % Employees Water / '000 conn. Employees sewerage / '000 conn ,19 7,54% 25% 24,30 15, ,72 8,14% 21% 23,20 14, ,04 8,17% 22% 22,10 13, ,59 8,80% 20% 21,70 14, ,71 6,70% 19% 19,90 15, ,96 6,60% 18% 18,9 14, ,96 6,40% 17% 18,2 13, ,96 5,60% 15% 15,9 13,8
8 Show case Cluj Water Company Beginning of 90 : Name of the water company: RAJAC Cluj County Population: 702,755 inhabitants Administrative structure: 6 cities & towns, 74 communes and RAJAC is servicing 420 villages exclusively the county seat town Cluj Napoca inhabitants, 402 km water network, 281 km sewage network
9 Some of the major shortcomings beginning of 90 Major losses in the network Lack of a monitoring & control system for the parameters in the network High power consumption due to obsolete equipments Poor technical condition of the sewage network with subsequent seepage of waste water
10 Action plan Three investment programs where used as vehicles for restructuring the utility and improving the financial and operational performances during period 1. In the county seat city Cluj the MUDP program was prepared and implemented with EBRD ( ) 2. In the poor rural area (Salaj County) RDP program was prepared and implemented together with World Bank ( ) 3. In the small and medium towns (7) a modernization and rehabilitation project was prepared and implemented ( ) SAMTID
11 : Takes place the first stage of area expansion 25 rural localities in Cluj County are taken over into the system; Population : Water network : 562 km 100 Sewage network : 357 km Water network Sewage network
12 July 1st 2006 : Somes Water Company takes over the administration of 7 new cities located in two counties first in Romania replacing four former local operators 1 city, 25 rural localities 1 county: Cluj From To 8 cities 29 rural localities 2 counties Cluj & Salaj in ONE day
13 NRW (%) and daily supply (h) in the 7 newly taken over towns in towns with limited daily supply (5 to 20 hours/day) Sistem zonal Cluj Zalau Simleu S. Cehu S. Jibou Dej Gherla Huedin NRW Within one year, all three initial towns with limited daily supply have water 24/7; Daily schedule
14 years in figures YEAR Population Supplied Length Water (KM) Water Connect ions Length Sewage (KM) Sewage Connect ions METERING (%) NRW (%) WTP WWTP , , , (1 city) , , , (1 city, 22 rural loc.) , , , (8 cities, 57 rural loc.)
15 L.water L.sewage No.W.connec tions No.S.connect ions Metering (%) NRW % Population serviced
16 Some of the results Water & Waste Water Treatment facilities expanded and modernized
17 Water & sewage networks expanded and rehabilitated
18 Storage facilities built and rehabilitated Pumping stations modernized and automated
19 Equipments and tools modernized
20 Environment issues addressed
21 Some results in words and figures Increased level of accessibility to piped water systems (78%) and sewerage (53%) Savings cost of repairs, following modernization with 35% on average; Energy cost savings with 20% on average; Decrease of NRW with 19% on average; Metering rate increased by 50%; Monitored water quality (100%); Increased transparency; Acceptable level of accountability;
22 What s s the future of Somes Water Company? Due to increased level of operational performance, Somes water company has the best chances to become the regional operator for Somes Tisa hydrographic basin one of the 11 to shape the future of water utilities in Romania. This would mean: Operations would cover: 5 Counties 26,614 km million inhabitants 25 cities and > 300 rural communities
23 Romanian Water Association Conclusions The main driver for performance improvement of the Romanian water utilities sector in the last decennia has been a balanced mix of: The Financial and Operational Improvement Programmes (FOPIP) in the main utilities Setting up WOP s with small utilities Increase of scale of the utilities when AoM are in place Careful investment planning
24 THANK YOU FOR YOUR ATTENTION! For more information please contact: Romanian Water Association CASOMES SA Phone: ; Fax: , E mail: info@ara.ro, public.relations@casomes.ro Web site:
Cluj - Napoca, Romania March 26th 2014
Cluj - Napoca, Romania March 26th 2014 Established 1892 Regional Company since 2006 Today: 8 cities, 165 rural localities in Cluj and Salaj Counties SOMES Water company today SalajCounty 2,428 km of water
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