WATER SECTOR DEVELOPMENT PROJECT (WSDP) PERFORMANCE BASED FINANCING TERMS OF REFERENCE (TOR)
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1 WATER SECTOR DEVELOPMENT PROJECT (WSDP) PERFORMANCE BASED FINANCING TERMS OF REFERENCE (TOR) Project/Assignment Title: Rapid Assessment of Scope of Non-Revenue Water Program through Performance-Based Contracts A. BACKGROUND NARUWASCO is a wholly owned water service provider (WSP) company of the County Government of Nakuru. It is responsible for provision of water and sanitation services within the larger parts of Nakuru County except Nakuru and Naivasha Urban Centers. Constitution of Kenya 2010 classifies water as a human right. Among the major challenge faced by the company is the high levels of Non-Revenue Water (NRW). We lose more than half of the water produced. We have now formed an NRW Management unit to strategically focus mainly on developing interventions towards management of NRW. The team reports to the technical manager. This TOR is part of a wider initiative for Country support for NRW performance based Contract (PBC) by the World Bank under the Water Sector Development Project (WSDP) on the World Bank to support Utilities. The World Bank supported program has been designed to catalyze increasingly better practices in the marketplace on PBCs for NRW Management. Better practices are identified in the short term as shorter and more costeffective preparation of PBC transactions and increased number of market participants (suppliers and seekers) active in the market, and in the medium-to-long term by improved efficiency of NRW reduction programs supported by donors (including better value-for-money of PBC activities in NRW management and better sustainability of NRW performance improvements in participating utilities after a PBC has been completed). Objective of this Assignment The objective of this assignment is to assess the status of data recording, network, metering and to develop the concept/outline of an initial scope of a potential nonrevenue water program for the purposes of planning. Specifically the scope of this proposed Rapid Assessment assignment are: Compilation of existing relevant data Description of data collection capacity and gaps in the utility in order to decide whether an extended baseline support is necessary A preliminary assessment of the level of loss and potential target in order to define a broad scope of a NRW program and the cost requirements
2 An assessment of the key constraints that will impede a successful NRW reduction program, including the availability of water and the level of effort and costs required to address this issue A preliminary assessment of the viewpoints and capacity of various stakeholders to support both the NRW reduction program and their willingness to work with the private sector in a PBC The output/deliverable is a report covering the above named aspects. B. SCOPE OF WORK This assignment expects a day level of effort (depending on the size of the utility), mostly in the field from a specialist in non-revenue water management. For (utility), with (number) of connections in an area of (x sq km), a level of effort of (x) days has been established. There are 3 tasks: Compile Existing Relevant Data Based on available records from the utility, discussions with the different departments within the utility and national water institutions compile existing relevant data including an expert assessment of the accuracy of the data to support the decisions/assessments for this assignment. Data collection will include (preferably of 2 to 3 years where pressure and flow data concerned): Technical information o Examine existing distribution network maps, data and set up. o Prepare an overview on the quality, material, lengths and age of the network. o Review data on current network sectorisation, including pressure zones. o Collect data on actual pressure in the network and set points at production locations. o Collect data on the production water meters and their accuracy. o Review information on network monitoring equipment (flow data). o Determine the reservoirs in the network and the management of the reservoirs. o Review the specialized leak detection equipment currently possessed by the utility. o Evaluate leak repair data and determine the annual number of leaks repaired, differentiating them between leaks on service connections and main pipes, both for reported leaks and leaks detected by leak detection teams. o Examine pipeline replacement records as well as existing pipeline replacement plans. o Assess the availability of water supply against forecast demand o Identify key technical challenges to NRW management
3 Commercial information o Describe the overall management and operational structure of the utility and capacity of staff as it relates to ability to manage NRW program o Review information on current customer metering practices in the utility, including type, manufacturer and age of customer meters used as well as customer meter testing facilities and practices. o Review the customer database (type of customers, connection and disconnection policies, illegal connections) and their consumption profiles o Review the tariff structure (flat rates, unmetered, large customers) o Review billing policies (government structures, temples, etc.) o Review the billing process o Review the collection process o Appraise existing NRW activities including relevant data and records. Water balance o Conduct a water balance according to the methodology of the international water Association at 95% confidence level to estimate the current level of NRW and major root causes. o Development of a NRW reduction strategy and PBC transaction. On the basis of the findings in the above activities and in discussion with the utility staff and management, the adviser will provide recommendations on NRW improvement measures to be taken by the water utility in order to improve the operational performance. Such measures should include the following: a. Physical Losses i. Flow measurements bulk metering ii. Sectorisation District Metered Areas iii. Pressure management pressure zones iv. Leakage control leak repair b. Commercial Losses i. Customer metering meter under registration ii. Meter Management domestic and commercial customers iii. Meter reading Illegal connections iv. Data handling improve accuracy In their report, the consultant will also outline the key constraints that will impede a successful NRW reduction program, including the availability of water and the level of effort and costs required to address this issue and summarize the viewpoints and capacity of various stakeholders to support both the NRW reduction program and their willingness to work with the private sector in a PBC.
4 C. METHODOLOGY The Consultant will work with utility staff and managers. Most of the work is envisioned to be conducted in-situ. The Consultant will develop an inception report with his/her workplan, data requirements and methodology and whenever necessary to familiarize the different stakeholders in the utility and national oversight institutions during inception, provide a short orientation about NRW Reduction and performance-based contracts. The work will be qualitative and quantitative and will draw on information made available by the utility and data collected by the consultant in cooperation with the utility. The utility will provide all available data and cooperate with the consultant to ensure that the best possible data is provided and the correct analysis can be made. D. DELIVERABLES/SPECIFIC OUTPUTS EXPECTED FROM ASSIGNMENT Based on the above tasks the following reports to be produced: Report A Inception Report (Workplan and Method) 3 days from mobilization Report B Draft Assessment Report with compiled data 16 days from mobilization Report C Final Report 20 days from mobilization E. SPECIFIC INPUTS TO BE PRESENTED BY THE CLIENT The Utility will make available all relevant documents. All information should be treated as confidential and not used for any other purpose. F. SPECIAL TERMS & CONDITIONS / SPECIFIC CRITERIA Language The report should be prepared in English and delivered in Word format. Timing/Assignment Duration The Consultancy will start on [xxxx]. The assignment is expected to be completed in xxx days. Reporting The Consultants will report to the Managing Director who will coordinate with the other members of the Team. Payment Schedule To be included separately.
5 Required Qualifications and Experience NRW Advisor/Engineer The Team Leader shall have demonstrated successful experience in Non-Revenue Water projects. At all time, the Team Leader will be available for support and backstopping to the Technical Teams. He must have at least 10 years of experience in water supply in similar country contexts with demonstrated experience in NRW issues. Specific expertise on designing NRW projects will be a plus. The Specialist will have extensive familiarity with the use of the IWA Water Balance tools and in the use of performance-based contracts. Utility Commercial Specialist The Utility Commercial Specialist will have at least 10 years of experience dealing with commercial aspects of utility management of utilities (customer metering, billing systems, control of illegal connections and thefts, tariff structures and demand management programs, bills collection) in developing countries. The Utility Commercial Specialist will have advance financial skills and will be able to develop economic assessment of the proposed NRW PBC program. The Specialist will have extensive familiarity with the use of the IWA Water Balance tools. Key Background Documentation Relevant utility reports and documents. Potential Downstream Work (if applicable) Downstream work is possible following this assignment for the repetition or scale-up of the approach, including the support envisioned under the accompanying Terms of Reference for the Country Support: Development of a Performance-Based Contract in Non-Revenue Water Management.
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