Unaccounted-for-Water Reduction in Water Supply

Systems

Franz R. DreesMarch, 2003

UFW Reduction – The Challenge

Over the past two decades…

Increased competition for scarce water resources + population pressure in major urban centers àwater shortages / rationing in many countries à 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 physicallosses (esp. where production costs at current sources or marginal cost of new water sources is high). (à Brazil, 5%↓ com. losses @ $0.34/m3à resources to extend water supply coverage to about 3 million additional people !)

UFW Reduction – The ChallengeThe 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:

U F W ( % )

05

101520253035404550

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

Y e a r

(%)

B e g i n U F W R e d u c t i o n C a m p a i g n ( 1 9 7 8 )

M i n U F W ( 3 2 % )1984

U p w a r d U F W d r i f t

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 ?

UFW Reduction – Key Trends

New Management Models (Performance-based UFW reduction contracts) (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

UFW Reduction – New Mgmt Models

P S P

Public Water Company

In-house UFW Reduction Unit

Medellín/Colombia

Campinas/Brazil

Private Water Company

In-house or

outsourced UFW Reduction

Barranquilla/Col. Santiago/Chile

(in house)

Macao/China (outsourced)

Public Water Company

Limited

performance-based contract

São Paulo/Brazil

Public Water Company

Full

performance-based contract

Malays ia

Ceará/ Brazil

(Management contract in one sector of Fortaleza)

UFW Reduction – Management Models

P S P

Public Water Company

In-house UFW Reduction Unit

Private Water Company

In-house or

outsourced UFW Reduction

Public Water Company

Limited

performance-based contract

Public Water Company

Full

performance-based contract

Medellín Colombia

Medellín (Colombia) – Municipal Water Company (EEPP)

Population: 3.3 million (2002);Since 1982: UFW control dept.Customer meter change-outs and right-sizing, optimization of meter life-cycles;Network sectorization, installation of pressure reduction valves, change out of break-prone pipes, leak detection campaigns;Continuous political support

Evolución de pérdidas reales

150

200

250

300

350

400

450

l/día

30.0

40.0

50.0

60.0

70.0

80.0

90.0

m3/

día/

km

l/día/instal 445 396 316 302 280 233 210 202 189 185

m3/día/km 78.1 72.6 60.3 60.4 59.1 54.8 52.6 52.8 50.8 47.6

1990 1991 1993 1994 1995 1997 1998 1999 2000 2002

UFW Reduction – Management Models

P S P

Public Water Company

In-house UFW Reduction Unit

Private Water Company

In-house or

outsourced UFW Reduction

Public Water Company

Limited

performance-based contract

Public Water Company

Full

performance-based contract

Campinas Brazil

Campinas, SP (Brazil) – Municipal Water Company

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

23.33

24.50

24.47

25.07

28.79

31.07

30.23

32.62

34.57

33.44

36.08

34.5233.43

34.8936.85

30.9730.30

20.00

22.00

24.00

26.00

28.00

30.00

32.00

34.00

36.00

38.00

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

*

Índice de Perdas de Faturamento (%)

* até junho/02* até junho/02

Êxito emÊxito emReduçãoRedução

Início do Início do Programa de Programa de Redução de Redução de

PerdasPerdas

IPFIPFÍndice de Perda FaturamentoIPDIPDIPFIPF

23.33

24.50

24.47

25.07

28.79

31.07

30.23

32.62

34.57

33.44

36.08

34.5233.43

34.8936.85

30.9730.30

20.00

22.00

24.00

26.00

28.00

30.00

32.00

34.00

36.00

38.00

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

*

Índice de Perdas de Faturamento (%)

* até junho/02* até junho/02

Êxito emÊxito emReduçãoRedução

Início do Início do Programa de Programa de Redução de Redução de

PerdasPerdas

IPFIPFÍndice de Perda FaturamentoIPDIPDIPFIPF

UFW Reduction – Management Models

P S P

Public Water Company

In-house UFW Reduction Unit

Private Water Company

In-house or

outsourced UFW Reduction

Public Water Company

Limited

performance-based contract

Public Water Company

Full

performance-based contract

São Paulo Brazil

São Paulo (Brazil) – State Water Company (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 sub-metering…

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: 76-137 additional m3/month/meter;

=> PS more agile and more rigorous in identifying meters for change-out (elasticity of demand !)

UFW Reduction – Management Models

P S P

Public Water Company

In-house UFW Reduction Unit

Private Water Company

In-house or

outsourced UFW Reduction

Public Water Company

Limited

performance-based contract

Public Water Company

Full

performance-based contract

Macau/China

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.) à 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

0

10 000 000

20 000 000

30 000 000

40 000 000

50 000 000

60 000 000

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

Pumpage Sales NRW

11,00%

11,50%

12,00%

12,50%

13,00%

13,50%

14,00%

14,50%

15,00%

juil-

00

sept

-00

nov-

00

janv

-01

mar

s-01

mai

-01

juil-

01

sept

-01

nov-

01

janv

-02

mar

s-02

mai

-02

juil-

02

sept

-02

UFW Reduction in Water Supply Systems

Thank You