powerpoint presentation · analysis and sale of water treatment related equipment and consumables....

36
NRW Performance based contracts Feb 2019

Upload: others

Post on 30-Jul-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

NRW Performance based contracts

Feb 2019

Page 2: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

02

01 MIYA / INDAQUA About us

03 NRW Reduction Approach

02 Services Portfolio Tailored Solutions

04 NRW Reduction Performance Based Contracts

Page 3: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

03

MYIA / INDAQUA About us

Page 4: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

About us

page

04

About Us

Miya is a global efficiency-oriented

operator.

Miya Group’s vision is to ensure the

abundance of drinking water through

efficient management of existing resources

What do we do?

Miya optimizes water supply in urban

water systems worldwide

Plans and implements a

comprehensive technology support

solution, tailored to each client's

budget, needs and priorities

What are the benefits?

Miya's solution significantly

improves the operational and

financial efficiency of the customer

while also reducing energy

consumption and reducing water

contamination and health risks,

benefiting people, the community

and the environment

Where are we?

With extensive experience in the

implementation of water

efficiency projects around the

globe, Miya is active mainly in

the Iberian Peninsula, Brazil, the

Caribbean, Canada and the

Philippines

MIYA

Florida MIYA

Bahamas

MIYA

Jamaica

MIYA

Brazil

MIYA

Portugal

MIYA

Spain

MIYA

Philippines

PBC Contracts

Concession / Services

TA & Consulting

VISTA

Water

Page 5: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

About us

page

05

(49%) (100%)

(100%)

Fafe (100%)

Concessions Delegated

management Services International INDAQUA,

SA

Holding Company,

responsible for

providing

administrative

services and other

intra-group services,

such as commercial

activities, legal

support, HR,

marketing,

procurement, IT,

among others.

Provision of water and sanitation network management services in

the municipalities where each concession is located. Provides consulting services

and technical assistance,

human resources

development, water quality

analysis and sale of water

treatment related equipment

and consumables.

Provision of services to Group

companies and national and

international markets in the

water and sanitation sector

S. Tirso | Trofa (99,9%)

Feira (98%)

Matosinhos (97,5%)

Vila do Conde (98%)

Oliveira de

Azeméis (98%)

49,94%

is 100% owned by Miya Group.

Incorporated in 1994, the INDAQUA Group is a leader and one of the leading

private players operating in the Portuguese water sector, with approximately 30%

market share in terms of population served.

INDAQUA is also present in Angola through its subsidiary Vista Water.

Page 6: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

About us Facts & figures | concessions universe

Fafe Duration

2021

January 11, 2011 Renegotiation: march 2012

S.Tirso |

Trofa Duration

2034

December, 28 1998 Renegotiation: (1) November

2003; (2) July 2011

Feira Duration

2049

December, 3 1999 Renegotiation: (1) July 2000; (2)

December 2006; (3) February

2010; (4) June 2015

Matosinhos Duration

2033

September 17, 2007 Renegotiation: in progress with

the municipality

V. Conde Duration

2048

July 17, 2008 Renegotiation: (1) December

2008; (2) June 2013;

O.

Azeméis Duration

2044

July 5, 2013 Renegotiation:

A. S. João

25 years

35 years

50 years

25 years

40 years

30 years

January 2009 PPP

17 646

3,4M€

17%

1,50

30 005

7,8M€

10%

2,45

50 094

15,7M€

19%

3,82

87 250

20,4M€

16%

10,56

35 792

15,4M€

13%

3,57

17 001

5,3M€

21%

1,78

12 227

2,9M€

23%

1,32 Water billed

M/m3

Clients

Losses (NRW)

Business

Volume

Water system Water and Sanitation System

Data: 2017

page

06

Page 7: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

About us Our international experience

page

07

Contrator

• National Water Authority (National

Angolan Government), financed by the

African Development Bank

• From June 2017, until June 2018

Contrator

• Ministry of Energy and Water and

Indaqua Project financed directly by

the World Bank

• Signed November 2015, ending

November 2018

Operation and maintenance of the

water supply system of the city of

Sumbe

Technical assistance in 9 regions to

support population communities

obtain freshwater

Operation and maintenance of the

water supply system of the city of

Kuito

Technical consultancy in the reduction of

water losses in the municipalities of

Cabo Frio and Arraial do Cabo (Rio de

Janeiro)

Angola Brazil

“an efficient and well-functioning water sector

makes an important contribution to the

economy and support seconomic growth” The top trend in the global water sector, 2016 Deloitte

Contrator

• Minitry of Energy and Water (Angolan

National Government)

• Signed in June 2016, duration 18

months. Project completed in January

2018.

Contrator

• Prolagos concession is responsável

for the water and sanitation services

• Performed in 2013

Expansion, Operation and Maintenance

of the Macao Peninsula Wastewater

Treatment Plant

Macao

Contrator

• Infrastructure Development Office -

Government of Macao responsible

entity

• Duration: 5 years

Improvement in the water distribution

system, unbilled water reduction and

leakage control, Bangalore

India

Contractor

• BANGALORE WATER SUPPLY &

SEWERAGE BOARD

• Duration: 3 years

Page 8: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

08

Services Portfolio Tailored Solutions

Page 9: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

09

When choosing us, we want our Costumers, not to opt for a water and sanitation service provider, but rather for a reliable and long term partner for their business, who

will jointly contribute to the achievement of their results.

01/ 03/ 04/ WE HAVE IN-DEPTH

KNOWLEDGE OF THE

MARKET The vast knowledge of the environments where

we operate allows us to offer services and

solutions with maximum efficiency, speeding up

the time-to-market

WE PERFORM A

PROFESSIONAL

PROJECT

MANAGEMENT We carry out rigorous planning, monitoring

and control-focused on the objectives,

targets, and expected results

WE ASSUME A

STRONG

ENGAGEMENT IN

OBTAINING RESULTS We add value, through in-depth

knowledge of the technical and

operational processes

02/ WE HAVE A

MULTIDISCIPLINARY

TEAM We have an aligned, dedicated and

permanent team with a wide experience in

the sector where we operate

Valu

e

Pro

posal

Regional

Domestic

International

Development of water network

optimization and efficiency

projects (NRW), thus significantly

reduce physical and commercial

losses

Reduction of inflow

Services and Products with

technology use to support the

management and operation of

commercial and technical processes

Project Development of

water and sanitation network

management services

Performance

Management

Contracts

I2Water

Services

Consulting and

Technical

Assistance

O&M services for infrastructures,

network clearance, collectors and

boxes relining, among others

Operation,

Maintenance and

Monitoring;

Water and

sanitation

Concessions

Comprehensive and integrated

long-term solutions under different

contractual formats

Services Portfolio Tailored Solutions

Page 10: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

010

Regional

Domestic

International

Performance

Management Contracts I2Water Services Consulting and

Technical Assistance Operation,

Maintenance and

Monitoring;

Water and Sanitation

Concessions

Services Portfolio Tailored Solutions

• Global and long-term integrated solutions of

management, investment, operation and

maintenance of water and wastewater

municipal or industrial systems.

CONCESSION CONTRACTS Client Needs Key Benefits Key Performance

Indicators

• Design, Finance, Build,

• Manage, Operate and

Maintain,

• Service to Client,

• Socio-Econ Sustainability,

• Environmental

Sustainability,

• Increased service coverage

and levels,

• Financial effort and risk

transferred,

• Tariff evolution defined for

contract period,

• Goals assured by contract,

• Accountability to

stakeholders,

• Access to safe water (%)

• NRW Reduction (%/m3/€)

• Cost Recovery (%)

• Environmental compliance

(%)

• Customer Satisfaction (%)

Page 11: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

011

Regional

Domestic

International

Performance

Management Contracts I2Water Services Consulting and

Technical Assistance Operation,

Maintenance and

Monitoring;

Water and Sanitation

Concessions

Services Portfolio Tailored Solutions

• Efficiency oriented contracts, where

remuneration is indexed to the certified

achieved performance with assured

economical benefits for the client.

• NRW Reduction

• Meter Management

• Undue Inflow reduction

PERFORMANCE MANAGEMENT CONTRACTS Client Needs Key Benefits Key Performance

Indicators

• Operational efficiency,

• Financing for efficiency,

• Know-how,

• Contracts are designed to

generate savings that can

cover investment (CAPEX)

and operational costs

(OPEX) of the project, and

release future additional

cashflow.

• Assured economical

benefits,

• Financial effort and risk

transferred,

• Opex and Capex reduction,

• NRW Reduction (%/m3/€)

• ILI (1)

• RDII (2)

• Revenue recovery per

meter,

• Network renovation Capex

per Km

(1) Infrastructure Leakage Index

(2) Rainfall Derived inflow and Infiltration

Page 12: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

012

Regional

Domestic

International

Performance

Management Contracts I2Water Services Consulting and

Technical Assistance Operation,

Maintenance and

Monitoring;

Water and Sanitation

Concessions

Services Portfolio Tailored Solutions

• Technology-based solutions to enhance

economical, financial, environmental and

quality of service performance of water and

wastewater utilities.

• i2Water Board - BSC

• i2Water Meter – Adv. metering analytics

• i2Water Flow – Adv. Network management

I 2 WATER SERVICES Client Needs Key Benefits Key Performance

Indicators

• Performance monitoring

and management,

• Revenue optimization,

• O&M processes

digitization,

• Organizational alignment,

• Real-time monitoring,

• Operational efficiency,

• NRW Reduction (%/m3/€)

• Cost recovery (%)

• Real losses (m3/km.day)

• Commercial losses by

metering errors (m3/year),

• Nº of supply interruptions,

• Nº of networks

breakdown,

• (...)

Page 13: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

013

Regional

Domestic

International

Performance

Management Contracts I2Water Services Consulting and

Technical Assistance Operation,

Maintenance and

Monitoring;

Water and Sanitation

Concessions

Services Portfolio Tailored Solutions

• Technical assistance service contracts

designed to transfer accumulated

experience and know-how to water and

wastewater utilities that are implementing

or reengineering business processes.

CONSULTING AND TECHNICAL ASSISTANCE Client Needs Key Benefits Key Performance

Indicators

• Reengineering of

Management Processes

and Strategy,

• Specific Training on New

Processes and Technology,

• Business Processes

Digitization,

• New Utility or Infrastructure

Start-Up,

• Strategy, Goals,

• Indicators and Targets

Definition

• Qualified and Skilled Human

Resources,

• Implementation of

Successfully Verified

Business Processes

• Operational time (%),

• Metering, Billing efficiency

(%),

• Cost Recovery (%)

• NRW/Real Losses (%/m3/€)

• OPEX (€/m3)

• Commercial Losses

(m3/year)

• Unauthorized Use (m3/year)

• (...)

Page 14: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

014

Regional

Domestic

International

Performance

Management Contracts I2Water Services Consulting and

Technical Assistance Operation,

Maintenance and

Monitoring;

Water and Sanitation

Concessions

Services Portfolio Tailored Solutions

• Global or specialized operation and

maintenance service contracts to enhance

economical, financial, environmental and

quality of service performance.

• Works: Treatment Plants, Pumping

Stations, Reservoirs

• Networks: Leakage/inflow /undue

connection detection, networks condition

assessment and hydro cleaning.

OPERATION, MAINTENANCE AND MONITORING Client Needs Key Benefits Key Performance

Indicators

• Focus in core business

activities,

• O&M outsourcing,

• Opex reduction,

• Service quality

enhancement,

• Environmental compliance.

• Operational Efficiency,

• Legal Compliance Risk

Transfer,

• OPEX Reduction (energy,

chemicals, staff, networks

maintenance and

conservation),

• Water and Wastewater

Infrastructure Lifetime

Increase,

• OPEX (€/m3)

• Energy Efficiency

(kWh/m3)

• Chemicals Usage (kg/Ton.)

• Nº of Employees (nº/100

km)

• Mean-Time-to-Repair /

Mean-Time-Between-

Failures,

• Overall Equipment

Effectiveness,

Page 15: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

NRW Reduction Approach

page

015

Page 16: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

016

NRW Reduction Relevance

Economic and Financial

• Reduction of produced/acquired volumes

• Reduction in maintenance costs

• Increase in revenue through better metering

• Reduction in undue/illegal connections

Social and Image

• Reliability of service

• Less impact due to repairs

• Image improvement to clients and stakeholders

Environmental

• Less impact in the environment

• Reduction in energy consumption

• Water saving

MAIN BENEFITS

NRW reduction Opportunity to optimize operational results

Page 17: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

017

NRW Reduction Approach

IWA Methodology Recommended by International Water Association largely tested and recognized worldwide

Real losses

Assets level

Apparent losses

Metering and connection level

Water Balances

Identify billings and losses

District Metering Areas Refine systems monitoring support to strategy definition and facilitate detection of leakage

and other pathologies

Page 18: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

018

NRW Reduction Approach

Real Losses

• Water losses at treatment plants

• Leakage at mains

• Leakage and overflow at reservoirs

• Leakage at distribution networks

• Leakage at connections (before metering)

Apparent Losses

• Unauthorized uses (illegal consumption)

• Metering errors (micro and macro metering)

• Errors in meter readings collection and processing

• Errors in the commercial database

Expedite and proper repair

Irrecoverable volume of

Real Losses

Economic level of losses

Recoverable volume of Real Losses

Active Leakage

Detection

Pressure Management

Asset Management

Unauthorized consumption

Irrecoverable volume of Apparent Losses

Economic Level of Apparent Losses

Recoverable volume of Apparent Losses

Data transfer errors

Metering accuracy

Data analysis errors

Page 19: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

019

NRW Reduction Case Study – Maynilad (Philippines)

• Overpopulated area served by system with 67% NRW;

• Insufficient resource to serve all population and assure 24h/7d supply;

• Areas with insufficient supply pressures;

Challenge

•1,500 DMAs have been established

•1,500 km of pipelines have been replaced; and

•277,000 leaks have been repaired.

•NRW was reduced from 1,580 million liters per day to 650

million liters per day

•Water saving allowed to connect additional 3 million people

•Average pressure increased from 4 to 19 m

•Average supply time increased from 15 to 24 hours

Action and Results

Page 20: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

020

NRW Reduction Case Study – New Providence (Bahamas)

• New Providence receives 90% of its water from desalination plants, almost 60% of which was NRW.

• New Providence water system serves the most populated island in the Bahamas, and required

government subsidies for water.

Challenge

•Miya offered the local water utility a suite of water

efficiency solutions and a phased water infrastructure

improvement plan, to achieve a projected goal of saving

22 million liters of fresh water per day within five years.

•Within the first year of implementation, reliable 24/7 water

supply was attained for all the island’s residents.

•Delayed the need to build a new desalination plant;

•Miya exceeded targets by successfully slashing NRW in

half and saving 18 million liters every day.

Action and Results

Page 21: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

021

NRW Reduction Case Study – INDAQUA S.Tirso/Trofa

• Establishment of new DMA with daily monitoring of volumes

• Strengthening of the active leakage detection with acoustic

detection technologies

• Implementation of pressure management – reduction of operating

pressure in 10% of network extension

• Optimization of metrological control - Optimization of meters

replacement period

• Implementation of procedures to systematic verification of

abnormal low consumption and meters w/zero reading

• Implementation of active undue connection detection

Approach

• Reduction in Water losses from 34 % (2002) to 19 % (2006)

• Reduction in Water losses from 16,3% (2014) to 8,4% (2016)

• Reduction of total costs of water losses (Reduction in NRW and revenue increase

due to commercial losses reduction)

Results

34,0%

25,0% 23,0%

17,0% 18,7% 19,2%

16,3%

8,4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Wa

ter

Lo

ss

es

First level approach

Second level approach

• High cost of bulk water supply;

• Investment needs in reserve capacity;

• Image of private operator;

Challenge

Page 22: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

022

NRW Reduction Approach

Water Losses Detailed

Plan General Action Plan and

Investments Definition

Active Leak

detection

Performance

B

Measuring and Control

Areas

Investments definition

D C

C1 - Research

C2 – Research and Repair

D1 - Definition of Measuring and Control

Areas

D2 – Definition and Construction

Pressure

Management

Performance

E

E1 - PRV Definition

E2 – Definition and Construction

Meters

Management

Investments definition

F

F1 - Settings Replacement Plan

F2 – Settings and Replacement

GLOBAL PROJECT ON WATER LOSSES REDUCTION

Includes planning and execution of the activities associated with all performance areas with the water losses reduction

A

Illicit Consumption

Detection Network Essays

and Videoscopy

G

Page 23: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

NRW Reduction Performance Based Contracts

page

023

Page 24: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

024

Performance Based Contracts NRW Reduction Projects

• The Performance Based Contract Model provides an integrated and results-oriented approach to the NRW problematic;

• The NRW Reduction Performance Based Contracts comprise all the activities, from planning to execution, in order to achieve the

reduction goals established in the assessment phase;

• The contract will detail and implement any needed action to achieve the established results on a Cost/Benefit optimization

perspective, to maximize revenues and reduce operational and capital expenditures.

What

Description

• The integrated approach allows the utility to contract efficiency without the financial effort and risk of taking investment and not

achieving result;

• Risk is transferred to a service provider whose remuneration relies on success;

• NRW reduction will pay for project implementation and generate additional economic benefits to the utility, releasing financial

availability to new investment,

• Utility gains access to all commercial and operational procedures to keep same level of contracted performance after contract.

Why

Rationale

Page 25: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

025

Performance Based Contracts NRW Reduction Projects

Page 26: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

026

Performance Based Contracts NRW Reduction – Contracting

• Start point assessment:

• Hydric balance

• Priority intervention areas

• Analysis of potential savings

• Economic value of savings

• Revenue Increase

• Capex requirements estimation

• System zoning (metering, pressure)

• Metering,

• Other

• Viability

• OBJECTIVES

• OBJECTIVES

• Engineering and planning

• Capex Works to be carried out

• Operational actions

• Monitoring

• Maintenance

A combo of 3 components:

• Fixed remuneration - covering in

full, or partially, the contractor's fixed

costs.

• Variable - based on units prices for

works /services

• Performance based – indexed to

total annual savings

Plus:

• Savings guarantee to Client –

Assurance of minimum savings to

Client

Viability analysis Scope of contracting Contract remuneration

• Activities & Responsibilities of

each party

Page 27: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

027

Performance Based Contracts NRW Reduction – Contracting

• Best case scenario – Contractor achieves 100% of OBJECTIVE

• Assumes Capex

• Gets Share of savings

• Gets Increase in Revenue

• Keeps benefits after project

conclusion

• Assumes Capex

• Assumes own OPEX,

• Pays guaranteed savings

RATIONALE ON A BALANCED CONTRACT

• Worst case scenario – Contractor achieves 0% of OBJECTIVE

• Assumes Capex

• Gets Guaranteed savings

• Assumes Capex

• Assumes own OPEX,

• Gets share of savings

PROFIT

NO LOSS

PROFIT

LOSS

Contracting Entity Contractor

Page 28: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

028

Performance Based Contracts NRW Reduction – Case study

• Population: 135 678 inhabitants

• Area: 82,99 km2

• Pop. Density: 1 634,90 inhabitants/ km2

• Management Model: Direct (Public Utility)

• Value Chain: Water Distribution and Wastewater Collection and Treatment

• Water Network Length: 589 km

• Nº Water Connections: 28 679

• Nº Households: 51 123

• Nº Clients: 61 870

• Water Services Turnover: 10 874 125 €/yr.

• Wastewater Services Turnover: 5 429 251 €/yr.

• Global Turnover: 16 303 376 €/yr.

• Global Net Income: 879 662 €/yr.

• Average Water and Wastewater Charge per Client: 17,75 €/month (0,57% Household income)

• Average Per Capita Consumption: 137 L/inhabitant. Day

MAIA Municipality

Main Figures

• Average Network Pressure: 4,5 bar

• Average Meter Age: 11,48 yr.

• Bulk Water Purchase Price: 0,45 €/m3

• Average Water Tariff: 1,07 €/m3

• Nº of DMAs: and PRVs: 0

Page 29: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

029

Performance Based Contracts NRW Reduction – Case study

6 934 611 m3/year

68,6%

Unauthorized use

170 100 m3/year

1,7%

Meter Errors

559 921 m3/year

5,5%

Water Losses Real Losses in Bulk Water Mains and WTP

m3/year

%

3 174 004 m3/year Real Losses in Water Transmission Mains and Distribution Network

m3/year

31,4% %

Real Losses in Water Reservoirs

m3/year

%

Real Losses in Service Connections

m3/year

%

System Input

Volume

10 108 615 m3/year

100%

Unbilled Authorized Consumption

130 603 m3/year

1,3%

Revenue Water

6 804 008 m3/year

67,3%

Non-Revenue-Water

3 304 607 m3/year

32,7%

Commercial /Apparent Losses

730 021 m3/year

7,2%

Real Losses

2 443 983 m3/year

24,2%

Authorized ConsumptionBilled Authorized Consumption

6 804 008 m3/year

67,3%

Hydric Balance Benchmarking

Infrastructure Leakage Index (ILI)

INDAQUA

1,2

Real Losses (m3/km of network)

INDAQUA

961

Page 30: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

030

Performance Based Contracts NRW Reduction – Case study

Baseline (year 0) Objective (year 5)

Water entered in the system m3 10 108 615 Water entered in the system m3 8 103 525

Authorized comsumption m3 6 934 611 Authorized comsumption m3 6 968 631

Billed consumption m3 6 804 008 Billed consumption m3 6 838 028

Authorized consumption not billed m3 130 603 Authorized consumption not billed m3 130 603

Volume of Water losses m3 3 174 004 Volume of Water losses m3 1 168 914

Volume of Real Losses m3 2 443 983 Volume of Real Losses m3 472 913

Volume of Commercial Losses m3 730 021 Volume of Commercial Losses m3 696 001

Volume of non-revenue water (NRW) m3 3 304 607 Volume of non-revenue water (NRW) m3 1 265 497

NRW % 32,7% NRW % 15,6%

Losses % 31,4% Losses % 14,4%

ILI at baseline (year 0) 5,6

ILI Objective (year 5) 1,85

Network length Km 589

Connections n 28 679

Housholds w/ effective service n 51 123

Installed water meters n 61 870

Avg. Bulkwater purchase price €/m3 0,4449

Average sales tariff €/m3 1,0743

Required CAPEX:

DMA to implement 30

PRV to implement 20

Meter replacement 1,6%/yr

Full network survey and geo-refrencing 589 Km

GIS supply and implementation

(1/20km of networks)

(1/30km of networks)

(a meter replacement program in

progress to acheive 8%/year)

Page 31: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

031

Performance Based Contracts NRW Reduction – Case study

GOALS along the PROJECT

NRW Reduction Goal per Year (linear assumption)NRW

Reduction

(m3)

NRW (m3)Annual Reduction

(€)

1º ano 401 018 2 903 589 178 413

2º ano 802 036 2 502 571 356 826

3º ano 1 203 054 2 101 553 535 239

4º ano 1 604 072 1 700 535 713 652

5º ano 2 005 090 1 299 517 892 065

Total (m3) = 6 015 270 Total (€)= 2 676 194

Commercial Losses Reduction Goal per Year

(linear assumption)

Billed Volume

Increase (m3)

Commercial

Losses (m3)

Billings Increase

(€)

1º ano 6 804 723 217 7 310

2º ano 13 608 716 413 14 619

3º ano 20 412 709 609 21 929

4º ano 27 216 702 805 29 238

5º ano 34 020 696 001 36 548

Total = 102 060 Total (€)= 109 643 Total (€)=

Economical gains along the project

1º ano

2º ano

3º ano

4º ano

5º ano

TOTAL ECONOMIC GAINS ALONG THE PROJECT (€)

Annual increase in € of billings gains above the purchase value of Water incorporated in the NRW reduction, as na

outcome of commercial losses reduction, after the project 5 years = 21 412

TOTAL ANNUAL NRW REDUCTION AND BILLINGS INCREASE AFTER THE PROJECT (€) 913 477

2 676 194 64 237 2 740 430

GAINS per Year after the end of the PROJECT (€)

Value in € of annual NRW reduction after the project 5 years = 892 065

713 652 17 130 730 781

892 065 21 412 913 477

356 826 8 565 365 391

535 239 12 847 548 086

64 237

Gains with NRW Reduction (€) Gains with Billings Increase (€) Total Gains (€)

178 413 4 282 182 695

21 412

Revenue Increase-

diference between sold

water and bought

Water (€)

4 282

8 565

12 847

17 130

Page 32: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

032

Performance Based Contracts NRW Reduction – Case study

COMPETING BIDS

• Value of works

• % of savings for remuneration

• % of Client’s savings assured

TENDER PROCESS

Public tender limited by Pre-Qualification

Qualification stage:

• Experience (similar projects, NRW performance)

• Econ-Financial soundness

Request for Bids:

Tender docs define:

• Baseline NRW at year0 – 3,30 M m3

• Savings objective Total m3 saved in 5 years- 6,01 m3

• Capex requirements Detail and Price interval – 1,20 M€ to 0,95M€

• Contractor’s allowed share of savings From 80% to 60%

• Assurance of Client’s savings From 40% to 80%

• Approach methodology

Page 33: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

033

Performance Based Contracts NRW Reduction – Case study

Project Budget for Contracting Entity 1 2 3 4 5 Total on 5 yrs

1- Actions cost

General NRW reduction plan 47 420 47 420

DMA Construction 318 718 318 718

PRV Construction 237 800 237 800

Meter Replacement 27 493 27 493 27 493 27 493 27 493 137 465

Network survey and geo-refrencing 132 525 132 525

GIS 60 794 5 093 5 093 5 093 76 073

Other Actions, monitoring 107 048 214 096 321 143 428 191 535 239 1 605 717

Total Costs 314 486 858 901 353 729 460 777 567 825 2 555 718

2- Savings and Revenue Increase

NRW Savings

Total 178 413 356 826 535 239 713 652 892 065 2 676 194

Revenue Increase 4 282 8 565 12 847 17 130 21 412 64 237

Total Gains 182 695 365 391 548 086 730 782 913 477 2 740 431

Cashflow at end of project 184 713

Cashflow after end of project 913 477

WINING BID

• 0,95 M€ of works

• 60% of savings for

remuneration

• 48% guaranteed

(80% of Client’s savings share)

Page 34: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

• An integrated approach allows the utility to contract efficiency without the financial

effort and risk of taking investment and not achieving result;

• Risk is transferred to a service provider whose remuneration relies on success;

• NRW reduction will pay for project implementation and generate additional economic

benefits to the utility, releasing financial availability to new investment;

• Capacity building - Utility gains access to all commercial and operational procedures

to keep same level of contracted performance after contract.

page

034

Performance Based Contracts NRW Reduction projects

Summarizing

Page 35: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

035

Av. Joaquim Neves dos Santos, 122 4450-394 Matosinhos | Portugal

Tel. + 351 229 997 970 E-mail: [email protected] www.Indaqua.pt

4, Karaiskaki str. Tehassaloniki, 54641 | Greece

Tel. + 30 2310 81 09 81 E-mail: [email protected] www.onflow.gr

Contacts

Page 36: PowerPoint Presentation · analysis and sale of water treatment related equipment and consumables. Provision of services to Group companies and national and international markets

page

036

ΕΥΧΑΡΙΣΤΏ

READY FOR THE WATER REVOLUTION