Unaccounted-for-Water Reduction in Water Supply Systems. Franz R. Drees March, 2003

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1 Unaccounted-for-Water Reduction in Water Supply Systems Franz R. Drees March, 2003

2 UFW Reduction The Challenge Over the past two decades Increased competition for scarce water resources + population pressure in major urban centers water shortages / rationing in many countries pressure to reduce physical losses in distribution systems; Increased attention to utility performance has drawn attention to commercial losses (esp. where tariffs are high) as well as physical losses (esp. where production costs at current sources or marginal cost of new water sources is high). ( Brazil, 5% com. $0.34/m 3 resources to extend water supply coverage to about 3 million additional people!)

3 UFW Reduction The Challenge The World Bank has financed dozens of UFW reduction campaigns through its projects, in many cases with little long-term success Example of UFW reduction performance by a public utility in a middle income Latin American country: UFW (%) (%) Begin UFW Reduction Campaign (1978) Min UFW (32%) 1984 Upward UFW drift Year

4 UFW Reduction Looking for Answers International Water Association (IWA) Leakage Management Conference (Lemesos/Cyprus, Nov. 2002) Brazil Water Sector Modernization Project (4292-BR) Latin American Conference on UFW Reduction Programs (Fortaleza, Brazil, Oct. 2001) (112 participants from LAC) WHAT TO DO? Technical Seminar on UFW Reduction in Water Supply Systems (Salvador, Brazil, Feb/Mar. 2002) (203 participants from Brazil) -- WHAT TO DO? International Conference on UFW Reduction Programs (Recife, Brazil, Dec. 2002) (298 participants from 14 countries and 4 continents) HOW TO DO IT?

5 UFW Reduction Key Trends New Management Models (Performance-based UFW reduction s) (Franz Drees, Roland Liemberger, Fouad Djerrari); Use of UFW indicators as a regulatory tool (OFWAT, UK; Superintendencia de Servicios Sanitarios, Chile) (Ian Stephens); Enhanced indicators to monitor UFW performance over time and to allow comparisons between systems (Infrastructure Leakage Index, ILI) (Roland Liemberger). Water Produced Water Billed UFW = Water Produced

6 UFW Reduction New Mgmt Models Private Water In-house UFW Reduction Unit Limited Full In-house or outsourced UFW Reduction Medellín/Colombia Campinas/Brazil São Paulo/Brazil Malaysia Barranquilla/Col. Santiago/Chile (in house) Macao/China (outsourced) Ceará/ Brazil (Management in one sector of Fortaleza) P S P

7 UFW Reduction Management Models Private Water In-house UFW Reduction Unit Limited Full In-house or outsourced UFW Reduction Medellín Colombia P S P

8 Medellín (Colombia) Municipal Water (EEPP) Population: 3.3 million (2002); Since 1982: UFW control dept. Customer meter changeouts and right-sizing, optimization of meter lifecycles; Network sectorization, installation of pressure reduction valves, change out of break-prone pipes, leak detection campaigns; Continuous political support Evolución de pérdidas reales l/día l/día/instal m3/día/km m3/día/km

9 UFW Reduction Management Models Private Water In-house UFW Reduction Unit Limited Full In-house or outsourced UFW Reduction Campinas Brazil P S P

10 Campinas, SP (Brazil) Municipal Water Population: 970,000 (2000); 100% household (HH) and bulk water metering (ave. age: 4 years); Network sectorization, installation of pressure reduction valves, change out of HH connections and break-prone pipes; Continuous political support and steady budget allocations for UFW reduction Índice de Perda Faturamento Início do Programa de Redução de Perdas * Índice de Perdas de Faturamento (%) * até junho/02 IPD IPF IPF Êxito em Redução

11 UFW Reduction Management Models Private Water In-house UFW Reduction Unit Limited Full In-house or outsourced UFW Reduction São Paulo Brazil P S P

12 São Paulo (Brazil) State Water (SABESP) Limited Performance-Based UFW Reduction Contracts About 2.6 million water connections in metro São Paulo; About 1% of meters account for 28.5% of billings with substantial submetering Reduction of commercial losses: => Competitive tender in 5 lots for private companies to identify meters for change-out, then supply and install meters; Payment is % of incremental billings up to ceiling of 8.5%; Incremental consumption metered: additional m 3 /month/meter; => PS more agile and more rigorous in identifying meters for changeout (elasticity of demand!)

13 UFW Reduction Management Models Private Water In-house UFW Reduction Unit Limited Full In-house or outsourced UFW Reduction Macau/China P S P

14 Macau (China): ONDEO with outsourcing to LYSA Even in PS, need Integrated Program to manage institutional change (commercial, technical, production, operations dept., etc.) => Broad-based UFW committee (2-3 years during impl.) transfer to operational units for consolidation; Key measures: Phase 1: updated customer cadastre, meter change-out, replacement of break-prone pipes; Phase 2: optimize meter lifecycle, active leak detection, right-sizing meter for lg. users ,00% 14,50% 14,00% 13,50% 13,00% 12,50% 12,00% 11,50% 11,00% juil-00 sept-00 nov Pumpage Sales NRW janv-01 mars-01 mai-01 juil-01 sept-01 nov-01 janv-02 mars-02 mai-02 juil-02 45,0% 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% sept-02

15 UFW Reduction in Water Supply Systems Thank You

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