Mbombela Water Indaba : 24-25 April 2012
Mbombela Reconciliation Strategy 1
Presented by:Willem Wegelin
BackgroundBackground
South Africa is a dry country, with a low average rainfall.
Our rivers are small in comparison with other countries and shared with other countries.
Many of our existing water resources have been over-used or significantly altered.
Many areas in the country are facing water shortages, where the requirements for water are greater than the available water.
South Africa is a dry country, with a low average rainfall.
Our rivers are small in comparison with other countries and shared with other countries.
Many of our existing water resources have been over-used or significantly altered.
Many areas in the country are facing water shortages, where the requirements for water are greater than the available water.
4 4
5
“…up to 51% of the 152 Water Services Authorities have proper or partial WCWDM Strategies and Plans in place, and is busy with some form of implementation in the field. Coupled with …. a savings potential of R 3 billion/ annum, this makes strong case to focus on improvement in the QUALITY OF PLANNING and the INTENSITY AND ACCELERATION OF IMPLEMENTATION. Of concern is that 62% of WSA do not have WCWDM contained within their IDPs…”
No Drop Status of Planning in 152 WSAsNo Drop Status of Planning in 152 WSAs
Mbombela Water Indaba : 24-25 April 2012
Mbombela Reconciliation Strategy 2
Existing StrategiesExisting Strategies
Based on assumptions- No management information
- Develop strategies to gather management information- based on assumptions
Unaffordable- Cannot be executed within existing budgets
- Cannot obtain external funding
Where and which intervention- Where do we start and what do we do
Potential savings- Unrealistic, creates expectations
Based on assumptions- No management information
- Develop strategies to gather management information- based on assumptions
Unaffordable- Cannot be executed within existing budgets
- Cannot obtain external funding
Where and which intervention- Where do we start and what do we do
Potential savings- Unrealistic, creates expectations
Existing Strategies….Existing Strategies….
No or limited results if implemented- Wrong intervention or area
- Lack of prior management information
- No benchmark
Municipalities complain about lack of funding
Funding organisations complaint about lack of business model and insufficient detail
Analysis paralysis- Spend budget indicating what is wrong but nothing
get fixed or implemented
Lack of human resources
No or limited results if implemented- Wrong intervention or area
- Lack of prior management information
- No benchmark
Municipalities complain about lack of funding
Funding organisations complaint about lack of business model and insufficient detail
Analysis paralysis- Spend budget indicating what is wrong but nothing
get fixed or implemented
Lack of human resources
Unsuccessful implementation or interventions not sustainable
Unsuccessful implementation or interventions not sustainable
Pressure management- Zones not discrete, PRVs not maintained, low
pressure problems not resolved
Text book implementation- DMAs based on 2000 to 5000 households cannot
be maintained - impractical
Check meters installed but not utilised
Inappropriate technology- Pressure controllers, loggers, smart meters
Community involvement and acceptance of- Metering and payment for services
- Policy and procedure unclear
Pressure management- Zones not discrete, PRVs not maintained, low
pressure problems not resolved
Text book implementation- DMAs based on 2000 to 5000 households cannot
be maintained - impractical
Check meters installed but not utilised
Inappropriate technology- Pressure controllers, loggers, smart meters
Community involvement and acceptance of- Metering and payment for services
- Policy and procedure unclear
Inappropriate technologyInappropriate technology
Mbombela Water Indaba : 24-25 April 2012
Mbombela Reconciliation Strategy 3
Live stock wateringLive stock watering Lack of maintenanceLack of maintenance
Intermittent SupplyIntermittent Supply Deteriorating InfrastructureDeteriorating Infrastructure
VandalismVandalism
Hand wheel broken
Nuts and bolts removed
SecuritySecurity
Mbombela Water Indaba : 24-25 April 2012
Mbombela Reconciliation Strategy 4
No / Lack of incomeNo / Lack of income
WaterMeter
register
Photo courtesy Guy Price
Photo courtesy Guy Price
ILLEGALCONNECTIONS
ILLEGALCONNECTIONS
Service Delivery ProtestsService Delivery Protests
The New Age, Feb 2012
Apathy Apathy
Visible LeaksVisible Leaks Internal Plumbing LeakageInternal Plumbing Leakage
Average monthly consumption = 300m3
Mbombela Water Indaba : 24-25 April 2012
Mbombela Reconciliation Strategy 5
Leaking tap diverted into the
sewer system
Leaking tap diverted into the
sewer system
Pavement WateringPavement Watering
Z Siqalaba
Inefficient garden wateringInefficient garden watering
CASE STUDIESCASE STUDIES
Japanese Success FormulaJapanese Success Formula
2006 NRW = 3.6%2006 NRW = 3.6%
1945 NRW = 80%1945 NRW = 80%
It was not fixed in day!!It was not fixed in day!!
Mbombela Water Indaba : 24-25 April 2012
Mbombela Reconciliation Strategy 6
Japanese Success Formula…Japanese Success Formula…
The capacity of controlling NRW is not dependant on the level of economic development but on the business strategy approach of the water utility.
It is people who developed the services, not a machine, not any technology!
What differentiate the performance of a water supply authority :
Management!!
The capacity of controlling NRW is not dependant on the level of economic development but on the business strategy approach of the water utility.
It is people who developed the services, not a machine, not any technology!
What differentiate the performance of a water supply authority :
Management!!
Source : DWA – DBSA – JICA Joint Seminar, September 2011
Drakenstein Local MunicipalityDrakenstein Local Municipality
Drakenstein success formulaDrakenstein success formula
0
5000
10000
15000
20000
25000
30000
35000
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Wat
er D
eman
d (M
l/ye
ar)
Actual Demand Projected Demand @ 3.5 %
Saving of 158 600 000 m3
Drakenstein (Paarl) Water DemandDrakenstein (Paarl) Water Demand
Census 2011 Population= 251 262
Census 2001 Population= 186 419
Census 1996 Population= 173 780
Baviaans Municpality Success FormulaBaviaans Municpality Success Formula
Best payment rate (2011)(110%)
Best service delivery (2011)
Councillors disconnect consumers withsupport from technical department
Team effort (politicians, technical, finance)
Consumer comment “I love my municipality”
Growth in business – sustainable community
Best payment rate (2011)(110%)
Best service delivery (2011)
Councillors disconnect consumers withsupport from technical department
Team effort (politicians, technical, finance)
Consumer comment “I love my municipality”
Growth in business – sustainable community
Baviaans Local MunicipalityBaviaans Local Municipality
Mbombela Water Indaba : 24-25 April 2012
Mbombela Reconciliation Strategy 7
City of TshwaneCity of Tshwane
26,2% 26,8% 26,8% 25,2%
33,5%
25,5% 23,6% 23,5% 25,7% 26,4%23,5%
20,6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
50 000 000
100 000 000
150 000 000
200 000 000
250 000 000
300 000 000
350 000 000
400 000 000
450 000 000
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Dec-15 Jun-17 Jun-22
% N
on-r
even
ue W
ater
Syst
em In
put
Vol
ume
(m³/
annu
m)
Billed metered Billed unmetered Non-Revenue water Projected SIV without WDM Projected SIV with WDM % Non-revenue water
Tshwane Success Formula…Tshwane Success Formula…
Very small WDM budget – fit within existing
Metro with second lowest NRW
Doing the basics – Data → Information → Monthly reports → Meetings / discussions
Stakeholder involvement – finance, housing, DWA, community
Very active leak reporting and repair programme
Aggressive water tariff setting
Conventional metering, reading and billing
Informative billing
Very small WDM budget – fit within existing
Metro with second lowest NRW
Doing the basics – Data → Information → Monthly reports → Meetings / discussions
Stakeholder involvement – finance, housing, DWA, community
Very active leak reporting and repair programme
Aggressive water tariff setting
Conventional metering, reading and billing
Informative billing
Tshwane Residential Water TariffsTshwane Residential Water Tariffs
R 0
R 2
R 4
R 6
R 8
R 10
R 12
R 14
R 16
R 18
R 20
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Wat
er ta
riff
(R/k
l)
0 to 6 kℓ 7 to 12 kℓ 13 to 18 kℓ 19 to 24 kℓ 25 to 30 kℓ 31 to 42 kℓ 43 to 72 kℓ more than 72 kℓ
Tshwane Informative BillingTshwane Informative Billing
Characteristics of Successful SystemsCharacteristics of Successful Systems
No / limited vacancies
Necessary skills and capacity
Excellent institutional collaboration between departments
Excellent record keeping with resulting management information
Comply with legislation and regulations
Proper services and customer care
Community support and appreciation
Lead by example
Possible to “stretch” their budget
No / limited vacancies
Necessary skills and capacity
Excellent institutional collaboration between departments
Excellent record keeping with resulting management information
Comply with legislation and regulations
Proper services and customer care
Community support and appreciation
Lead by example
Possible to “stretch” their budget
STRATEGYSTRATEGY
Mbombela Water Indaba : 24-25 April 2012
Mbombela Reconciliation Strategy 8
Key Questions Before Starting Any Intervention
Key Questions Before Starting Any Intervention
Where are the losses ?- Which region, zone or district ?
- Bulk, distribution network, inside property ?
- Find the low hanging fruit
Quantify the losses ?- What is the volume of water lost ?
- How much can I expect to save ?
How will you fix the problem?- Identify suitable intervention
Where are the losses ?- Which region, zone or district ?
- Bulk, distribution network, inside property ?
- Find the low hanging fruit
Quantify the losses ?- What is the volume of water lost ?
- How much can I expect to save ?
How will you fix the problem?- Identify suitable intervention
System
Input
Volume
Authorised
Consumption
RevenueWater
Non
Revenue
Water
BilledAuthorised
Consumption
UnbilledAuthorised
Consumption
ApparentLosses
RealLosses
Water
Losses
Billed Metered Consumption
Unbilled Unmetered Consumption
Unauthorised Consumption
Customer Meter Inaccuracies
Leakage on Transmission andDistribution Mains
Billed Unmetered Consumption
Unbilled Metered Consumption
Leakage on Service Connectionsup to point of Customer Meter
Leakage and Overflows at Storage Tanks
Free basic
Modified IWA water balanceModified IWA water balance
IWA water balance relevanceIWA water balance relevance
IWAWater
Balance
License applications,
approvals and conditions
Water resources
planning and targets
Strategies and business
plans
Budgets, projects and implementati
on
Monitoring and review
Regulation and
compliance
PLANPLAN
DODOCHECKCHECK
ACTACTACCOUNTING FOR ALL WATER
Water audits• Water balance (BENCHLEAK)• Revenue water• Non-revenue water• Apparent losses• Real losses
Management information systems • Telemetry, GIS/CAD, Asset inventory• Consumer database, leak detection • and monitoring software
Management meters• Meter types and sizing• Meter testing and calibration• Meter replacement programme
Consumer meters• Meter types and sizing• Meter replacement programme• Meter testing and calibration• Unmetered connections
Performance targets• Infrastructure leakage index• Real losses per connection per day• Apparent losses per connection per day• Real losses as % of system input• Real losses of % of operating costs
Training and education• Technical staff, meter readers• treasury staff
ACCOUNTING FOR ALL WATER
Water audits• Water balance (BENCHLEAK)• Revenue water• Non-revenue water• Apparent losses• Real losses
Management information systems • Telemetry, GIS/CAD, Asset inventory• Consumer database, leak detection • and monitoring software
Management meters• Meter types and sizing• Meter testing and calibration• Meter replacement programme
Consumer meters• Meter types and sizing• Meter replacement programme• Meter testing and calibration• Unmetered connections
Performance targets• Infrastructure leakage index• Real losses per connection per day• Apparent losses per connection per day• Real losses as % of system input• Real losses of % of operating costs
Training and education• Technical staff, meter readers• treasury staff
EFFICIENT USE AND CONTROL OF DEMAND
Retrofitting and removal of wasteful devices• Toilet cisterns / Urinals / Taps / Showers
Tariff structures and billing procedures• Free basic water• Tariff models – fair and equitable• Administration / efficient use incentive• Informative billing system• Credit control
General education and public involvement• Water weeks / Competitions• Posters / Pamphlets / Stickers• Grey water use (domestic)• Rain water harvesting• Water-wise gardening
Payment for water and illegal use• Consumer metering• Water theft
Schools education campaigns• Site visits / education material• Schools retrofitting projects
Legislation• Municipal by-laws• Water Acts and Regulations
Emergency Action Plan• Hose pipe bans• Alternative watering days• Intermittent supply• Fines and temporary tariff hikes
Training and education• Decision makers, technical and treasury staff
EFFICIENT USE AND CONTROL OF DEMAND
Retrofitting and removal of wasteful devices• Toilet cisterns / Urinals / Taps / Showers
Tariff structures and billing procedures• Free basic water• Tariff models – fair and equitable• Administration / efficient use incentive• Informative billing system• Credit control
General education and public involvement• Water weeks / Competitions• Posters / Pamphlets / Stickers• Grey water use (domestic)• Rain water harvesting• Water-wise gardening
Payment for water and illegal use• Consumer metering• Water theft
Schools education campaigns• Site visits / education material• Schools retrofitting projects
Legislation• Municipal by-laws• Water Acts and Regulations
Emergency Action Plan• Hose pipe bans• Alternative watering days• Intermittent supply• Fines and temporary tariff hikes
Training and education• Decision makers, technical and treasury staff
EFFICIENT DISTRIBUTION AND OPERATION
Sectorisation• Districts / Sub-districts / Zones• Boundary valves and metering• Step testing and logging
Monitoring of water loss in each zone• Night flow analysis (SANFLOW)• Flow and pressure logging• Leakage / overflow from storage structures • Logging of sewer flows and analysis
Pressure management• Pressure management analysis (PRESMAC)• Regular maintenance of control valves• Performance monitoring
Mains replacement programme• Burst and leak repair frequency• Type, Age and condition of network• Aggressive soil conditions • Aggressiveness of potable water• Operating pressures regime
Passive leakage control• Water leak report desk• Response time• Quality of leak repairs
Active leakage control• ECONOLEAK• Leak detection equipment• Sounding, leak noise correlation, gas injection
Training and education• Technical management and operation staff
EFFICIENT DISTRIBUTION AND OPERATION
Sectorisation• Districts / Sub-districts / Zones• Boundary valves and metering• Step testing and logging
Monitoring of water loss in each zone• Night flow analysis (SANFLOW)• Flow and pressure logging• Leakage / overflow from storage structures • Logging of sewer flows and analysis
Pressure management• Pressure management analysis (PRESMAC)• Regular maintenance of control valves• Performance monitoring
Mains replacement programme• Burst and leak repair frequency• Type, Age and condition of network• Aggressive soil conditions • Aggressiveness of potable water• Operating pressures regime
Passive leakage control• Water leak report desk• Response time• Quality of leak repairs
Active leakage control• ECONOLEAK• Leak detection equipment• Sounding, leak noise correlation, gas injection
Training and education• Technical management and operation staff
WC/WDM Toolbox
Target water balance and possible savings
Potential savings from
various interventions
Sys
tem
Inp
ut V
olu
me
Au
thor
ised
co
nsu
mp
tion
Billed authorised consumption Community awareness
Unbilled authorised consumption
Bylaws and enforcement
Potential savings from increased water use efficiency
Implemented through
Retrofit and removal of wasteful devices
Tariff setting
Wa
ter
loss
es
Unavoidable annual commercial losses
Meter accuracy and
assumption errors
Economic level of commercial losses reduction
Implemented through the
improvement of
Data transfer errors
Potential savings from a reduction in commercial losses
Data analysis and assumption errors
Theft and unauthorised consumption
Unavoidable annual real losses
Pressure
reduction
Economic level of physical losses reduction
Active and passive leakage control
Potential savings from reduction in physical losses
Implemented through
Mains replacement
Speed and quality of repairs
Alig
nm
ent
of
the
IWA
wat
er
bal
ance
an
d in
terv
enti
on
s
Regulations under WSA R509 of 2001Regulations under WSA R509 of 2001
Reg (4) – Eradicate intermittent supply
Reg (10) – Water audit as part of WSDP
Reg (11) – Water balance and sectorisation
Reg (12) – Repair of leaks with 48 hours
Reg (13) – Consumer metering
Reg (15) – Pressure management < 90m
Community awareness and customer service
Reg (4) – Eradicate intermittent supply
Reg (10) – Water audit as part of WSDP
Reg (11) – Water balance and sectorisation
Reg (12) – Repair of leaks with 48 hours
Reg (13) – Consumer metering
Reg (15) – Pressure management < 90m
Community awareness and customer service
Mbombela Water Indaba : 24-25 April 2012
Mbombela Reconciliation Strategy 9
Water Resource Balance DiagramWater Resource Balance Diagram Issues to considerIssues to consider
Political and institutional support
Staff capacity, skills and turnover
Base strategy on sound management information – do not assume
Intermittent supply – poor service delivery, cannot expect to consumer save water if no water, cannot implement WDM
Strategy must state business case
Acceptance of metering and billing
Community involvement and awareness
Indirect benefits – job creation, deferred infrastructure upgrades
Political and institutional support
Staff capacity, skills and turnover
Base strategy on sound management information – do not assume
Intermittent supply – poor service delivery, cannot expect to consumer save water if no water, cannot implement WDM
Strategy must state business case
Acceptance of metering and billing
Community involvement and awareness
Indirect benefits – job creation, deferred infrastructure upgrades
The budget conundrumThe budget conundrumMunicipalities spent 62.2%, or R236.4 billion, of their total adjusted budgets (R377.8 billion) as at 31 March 2016. Unlikely to spend balance of R141.4 billion
Municipalities spent 47.5%, or R32.2 billion, of their total adjusted capital budget (R67.8 billion) as at 31 March 2016. Unlikely to spend balance of R 35.6 billion. This reflects poor planning for the implementation of capital projects.
Metro water revenue billed was R17.7 billion against expenditure of R16.5 billion
Aggregated municipal consumer debt was R108.6billion as at 31 March 2016. Government’s owe 5.7% or R6.1 billion and households 61.6% or R66.9 billion
Municipalities spent 62.2%, or R236.4 billion, of their total adjusted budgets (R377.8 billion) as at 31 March 2016. Unlikely to spend balance of R141.4 billion
Municipalities spent 47.5%, or R32.2 billion, of their total adjusted capital budget (R67.8 billion) as at 31 March 2016. Unlikely to spend balance of R 35.6 billion. This reflects poor planning for the implementation of capital projects.
Metro water revenue billed was R17.7 billion against expenditure of R16.5 billion
Aggregated municipal consumer debt was R108.6billion as at 31 March 2016. Government’s owe 5.7% or R6.1 billion and households 61.6% or R66.9 billion
Source : Local Government Revenue and Expenditure: Third Quarter Local Government Section 71 Report ending 31 March 2016
The budget conundrum…The budget conundrum…
Realistically collectable amount (less than 90 days) is R22.9 billion
Municipalities owed their creditors R26.3billion as at 31 March 2016
Average expenditure for infrastructure grants as reported by municipalities is 19%
Conditional grants were re-allocated to the municipalities that have fast tracked the implementation on their projects
Adjusted operating expenditure = R204.3billion (66%) of R310 billion
Realistically collectable amount (less than 90 days) is R22.9 billion
Municipalities owed their creditors R26.3billion as at 31 March 2016
Average expenditure for infrastructure grants as reported by municipalities is 19%
Conditional grants were re-allocated to the municipalities that have fast tracked the implementation on their projects
Adjusted operating expenditure = R204.3billion (66%) of R310 billion
Source : Local Government Revenue and Expenditure: Third Quarter Local Government Section 71 Report ending 31 March 2016
RecommendationsRecommendations
Setup task group (political, technical, finance) to meet on monthly basis to discuss & resolve WDM issues – losses, billing, leak repairs, etc.
Fill vacancies, training & capacity building
Focus on record keeping and management information
Comply with legislation and regulations
Resolve intermittent supply
Understand municipal funding structures and include in IDP
Setup task group (political, technical, finance) to meet on monthly basis to discuss & resolve WDM issues – losses, billing, leak repairs, etc.
Fill vacancies, training & capacity building
Focus on record keeping and management information
Comply with legislation and regulations
Resolve intermittent supply
Understand municipal funding structures and include in IDP
Strategy deliverablesStrategy deliverables
Clear objectives in terms of reduced water losses, increased revenue and sustainable water supply.
Current available resources and capacity of the system.
Projected water demand and implications if the water demand exceeds the capacity of the system.
Realistic quantification of potential savings and impact on future water demand projections.
Clear objectives in terms of reduced water losses, increased revenue and sustainable water supply.
Current available resources and capacity of the system.
Projected water demand and implications if the water demand exceeds the capacity of the system.
Realistic quantification of potential savings and impact on future water demand projections.
Mbombela Water Indaba : 24-25 April 2012
Mbombela Reconciliation Strategy 10
Strategy deliverables…Strategy deliverables…
Identification of key interventions with budgets, timelines, benefits, and cost benefit ratios.
Indirect benefits such as job creation, community awareness and responsible users.
Benefit to the municipality in terms of increased revenue and sustainability.
Institutional arrangements required to achieve these objectives.
Development of a business case which can be presented to a financial institution for funding.
Identification of key interventions with budgets, timelines, benefits, and cost benefit ratios.
Indirect benefits such as job creation, community awareness and responsible users.
Benefit to the municipality in terms of increased revenue and sustainability.
Institutional arrangements required to achieve these objectives.
Development of a business case which can be presented to a financial institution for funding.
Benefits of WC/WDMBenefits of WC/WDM
Improved level of service
Increased revenue and affordability
Improved customer relations
Educated and water efficient customers
Job creation
Water security
Asset management
Improved corporate governance
Improved institutional arrangements
Improved level of service
Increased revenue and affordability
Improved customer relations
Educated and water efficient customers
Job creation
Water security
Asset management
Improved corporate governance
Improved institutional arrangements
THANK YOUTHANK YOU