new urban water efficiency performance-based non-revenue … · 2018. 11. 26. · non revenue water...
TRANSCRIPT
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Miya
Urban Water Efficiency
Performance-Based
Non-Revenue-Water (NRW) Contracts
in South Africa
PUBLIC-PRIVATE PARTNERSHIPS CONFERENCE
JUNE 5-8, 2012 | DAKAR, SENEGAL
Ariel Moshkovitz, General Manager, Miya EMEA
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Presentation Outline
Background on Non-Revenue-Water
PPP Performance-Based Non-Revenue-Water Contracts
– Examples
– Benefits
About Miya
Summary
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Section Title Background on Non-Revenue-Water Projects
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Section Title
More than 30% of the world’s drinking water is
lost from urban water systems before it reaches consumers
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Reducing water losses is the preferred solution to increase the water network capacity
It will help mobilizing private financing for investment
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Non Revenue Water (NRW) - Definition
Non Revenue Water (NRW) is defined as the difference
between the amount of water put into the distribution
system and the amount which is billed to consumers.
It consists of:
– Physical (Real) Losses: leaks and system overflows caused by poor infrastructure and maintenance
– Commercial (Apparent) Losses: theft, customer meter under-registration and data handling errors
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The economic value of NRW – Example
City with 1,000,000 residents – Water Production: 400 MLD (Mega Liters per Day)
– Physical Losses: 40% (= 160 MLD)
– Commercial Losses: 10% (= 40 MLD)
– Price of Water: 1 $ per m3
– Cost of Water: 0.5 $ per m3
There can be two cases – Case A – The City has enough water for its residents, even
though it loses a lot of water
– Case B – The City does not have enough water
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Case A - The city has enough water
The economic value of the NRW is 43.8 M $ per year – Physical Losses: 160 MLD * 0.5 $ / 1000 * 365 = 29.2 M $
– Commercial Losses: 40 MLD * 1 $ / 1000 * 365 = 14.6 M $
If we reduce the losses by 50% we can save 21.9 M $ per year
There are substantial savings will also in energy and CO2 emissions
Enables the utility to provide lower tariffs to low income areas
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Case B - The city does not have enough water
In this case – all savings can be re-sold to residents
The economic value of the NRW is 73 M $ per year – Physical Losses: 160 MLD * 1 $ / 1000 * 365 = 58.4 M $ – Commercial Losses: 40 MLD * 1 $ / 1000 * 365 = 14.6 M $
If we reduce the losses by 50%:
– We can save 36.5 M $ per year – We can resell ~30,000 ML per year
In many cities in Africa there is not enough water
Water savings -> Additional Revenues -> additional
investments
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Conclusion on NRW
Reducing NRW is the most effective way to
improve the water network and increase
capacity
– Operationally
– Financially
– Management wise
It is the most elegant way to drive a positive
change, a reform
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Section Title
Performance-Based Non-Revenue-Water Contracts
Examples
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Section Title
Sebokeng/Evaton, South Africa
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Project Background
Project Dates: 2005 - 2010
Objectives: – Increase capacity – Improve level of services – Reduce water leakage and levels of wastage in the water distribution system
Design and commission one of the largest and most advanced pressure
management installations in the world
Challenges: – ±500 000 residents with a dire need of leakage reduction due to major water
losses in the municipal system. – Population: 420 000 – NRW: 80%
100% Performance-Based
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Section Title
Hourly Savings = 1000 m3/hr
A large swimming
pool every hour
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Section Title
Savings after 5 years – $20 million
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Before…
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After…
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Community Awareness and Involvement
Community Education
Schools Education
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Job Creation
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Results
More than 50 million m3 in water purchases which translates
to a saving of more than $20 million.
The project provides annual energy savings in excess of 14,000 MWh, equivalent to reduced CO2 emissions of
12,000 Tons per annum.
A comparison made by the customer showed that the
alternative of construction a water treatment facility to produce the same amount of water savings, would cost 150 times the investment in this NRW project.
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New Emfuleni Project, South Africa
Started on March 2012
Financed by SASOL and GIZ
Combination of Fixed & Performance Based
All savings are calculated – and are returned to the project – for further improvement of the network
Thus, a small investment can substantially improve the network
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Manila, Philippines
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Background
Performance Based Contract with Maynilad structure:
– Fixed fee – Performance-based fee:
received if annual targets are met
Specific annual NRW targets set
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Integrated Meter Management
Leak Detection
Training
DMA Instrumentation
NRW Management
Software
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Comprehensive training in partnership with Miya
4 training Levels
Examinations and certification
NRW expertise developed in Maynilad will be certified and marketed worldwide
Training and Certification
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The situation in 2007 and now
2007:
– 66% NRW 1,530 MLD
– 54% of the system had intermittent supply
– 47% of the system had < 5m average pressure
– 700,000 customers
2011:
– 42.3% NRW 885 MLD
– < 30% intermittent supply
– < 15% < 5m pressure
– 1,005,350 customers
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Maynilad has tripled its net income since 2008
1.8 million additional people connected to the network
420 local employees were trained and employed in the project
The situation in 2007 and now
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New Providence, Bahamas
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Project Overview
Customer – Bahamas Water and Sewerage Corporation
10 years project
Performance Based project
– 30% - Performance fees linked to targets
– 70% - Fixed fees covered by IDB funding of the first phase (Quality Based
competitive bidding process)
The project is designed to repay itself within its lifespan,
with a double digit project IRR for WSC
Over 10 Billion gallons of water will be saved
83 Million USD; 51M by Inter-American Development
Bank
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The uniqueness of the project
Output Based Contract
Output-driven contract
– The targets are in NRW level
High Performance Based (PB) component directly related to the actual achievement of the targets
IDB loan is not financing the entire project, but rather assisting WSC in the first years while the project cash flow is still negative
The turn-key holistic approach and the high PB component ensure full accountability of Miya to strive for best results
As a contribution to the community, Miya will run a water efficiency education program in local schools, including implementation of water conservation measures
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Section Title
Performance-Based Non-Revenue-Water Contracts
Benefits
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Performance Based Contract Benefits
Total Alignment of Interests
– The water utility wants to improve the water network
– The contractor is being compensated according to how it meets or exceeds the customer’s objectives
Risk Sharing with the private contractor
Lower Investment Required
– The contractor is paid out of the increased revenues
Better Performance by the Contractor Higher Project Revenues and Profit
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Environmental Benefits: – Less chemicals in the
water system
– Save drinking water
– Save energy
Health Benefits: – Lower contamination
resulting from bursts and antiquated pipes
– Better water quality, less diseases (typhoid and cholera)
There are many benefits to a comprehensive NRW project
Cost & Revenue Benefits: – Increase revenues
– Reduce costs
– Extend the lifespan of existing infrastructure
– Defer investments in alternative solutions
Community Benefits: – Water supply
– Service level
– Creation of jobs - NRW teams, construction teams, etc.
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About Miya
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About Miya
Miya’s solutions are tailored to the water utility’s budget, needs and priorities
Established at 2007 by the Arison Investments, a leading business and philanthropic group, that operates globally
Miya offers utilities Comprehensive, economic and sustainable solutions through turnkey projects, which increase water supply, revenues and profits.
A global contractor of comprehensive solutions for urban water efficiency and water loss management
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Veritec Consulting, North America. Designed and implemented some of the largest water loss reduction programs in Canada
BBL Engenharia is a leading engineering company, specializes in NRW management projects in the Brazilian market. BBL Engenharia has several contracts with SABESP
Crowder Consulting, consultant engineering & software development company specializing in the fields of water supply
WRP, South Africa is a specialist engineering consultancy of international standing in the fields of water resource planning and management, water conservation and environmental management
Regional Headquarter, Israel
Regional Headquarter, Luxemburg
Miya Manila, Philippines
Miya Worldwide
Miya Bahamas
Miya Puerto Rico
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Summary
Public-Private-Partnerships are a very effective tool for water infrastructure projects
Reducing water losses and NRW is the first and most efficient program for improving the water service and building capacity and improve water networks
Turnkey NRW projects are the optimal instrument for engaging IFIs
Performance Based NRW projects ensure the contractor and the customer are on the same side
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Thank You
www.miya-water.com