tsx: purglobal innovative sustainable infrastructure management solutions nrw – what can we learn...

TSX: PUR global • innovative • sustainable • infrastructure management solutions

NRW – What can we learn from South East Asia?

Hugh Chapman - Regional Director, Asia Pacific

TSX: PUR global • innovative • sustainable • infrastructure management solutions

www.puretechltd.com2

Non-revenue water (NRW) is a global problem and one which many Pacific water utilities are familiar with. It is not uncommon for water utilities in the Pacific region to lose over 50% of their treated water due to ageing infrastructure and leakage. This lost water is also lost revenue. Water utilities are investing their limited financial resources into capturing, treating and distributing water for half of it to be lost before it reaches the end consumer. What other business can sustain losing 50% of their product before they sell it? Why do water utilities not address this problem to provide water for future generations and

assist in the strengthening of their balance sheets.

NRW issues have plagued South East Asia for decades and most are now actively involved in programs to reduce NRW. This paper

discusses case studies where water utilities have made significant inroads into their massive water loss problems and provides a

blueprint for utilities in the Pacific to learn from. In particular, we will focus on Malaysia and the Philippines and discuss the proactive

strategies and technologies both countries are utilising to secure water supplies for future generations.

Abstract


• Non-revenue water (NRW) is a global problem

• Many of the issues facing Pacific Water Utilities have been addressed in South East Asia

• Key learnings are available regarding methodologies, techniques and procedures

• Let’s apply key learnings

Introduction


NRW is a Global Problem


• World Bank notes that a cutting NRW in half in developing countries would:– Provide 11 billion m3 of treated

water pear year– Provide an additional 130 million

people with water– Provide water utilities with US $4

billion in self-generated cash flow – Provide fairness amount users by

stopping illegal connections– Improved customer service – more

efficient utilities

NRW is a Global Problem


• The extent of the NRW problem is not well understood and water utilities are not aware that they are sitting on a “pot of gold”

• Basic information needs to be known (e.g.: total system input), the organisation needs to be set up correctly, and reduction of NRW needs to be a focus of all water utility staff

• For change to occur, information needs to be made available to all stakeholders

Underestimating the NRW Problem – Change Is Needed


• Government – No ribbon cutting and unpopular

decisions

• CEO’s – Time, money and dedication

required (easier ways to bridge the gap)

• Engineers – Fixing pipes isn’t “fun” and prefer

to design and build things

• Technicians and Field Staff – Night work, monotonous tasks

Lack of Management Focus


• First step to developing an NRW strategy is to ask some hard questions:

– How much water is being lost?– Where is it being lost?– Why has been it being lost?– What can be done to improve performance?– Who will manage the efforts and ensure the

program continues?

Creating an NRW Strategy


Creating an NRW Strategy


CASE STUDY

Malaysia


Land Area: 8250 sq kmPopulation: 6.4 million

State of Selangor and Federal Territory of Kuala Lumpur


• Largest water utility in Malaysia

• 26,000km of pipes (incl. 6,500km of >300mm)

• Water supply is 100% privatized

• Purchases 100% of water (cost USD $0.30/m3)

• 1.95 million customers (using 3,200 MLD)

• High demand growth 3.5%

Background


• Currently have 2% reserve margin with all WTP’s at full capacity

• Some areas experience low pressure/intermittent supply

• Expensive new WTP under construction

• NRW reduction is the best (and cheapest) alternative water source

Current Supply Situation


• In 2005 NRW was 43% – Reduced to 32% in 2011– But slowly increased to 35% by 2014

• NRW efforts were focused inside DMAs– But NRW outside DMAs was increasing at a

faster rate

• Developed a 5 Year Master Plan– Reduce NRW to 26% by 2018 (performance

based)– Holistic program from WTP to customer

Current Supply Situation


Devised a strategy for the NRW Master Plan

Table above indicates that NRW outside the DMAs is 2.3 times higher than NRW inside the DMAs

The NRW Master Plan

No DescriptionTotal DMA

Pipe Length (km)

% pipe length

Total customers

% account

s coverag

e

SIV (m3/d)

NRW (m3/d)

NRW (%)

1 Inside DMZ 1,182 14,905.6 57.3% 1,262,616 65.0% 1,778,504 484,334 27.2%

2 Outside DMZ 11,094.4 42.7% 680,293 35.0% 2,882,950 1,124,531 39.0%

3 SYABAS overall 26,000 100.0% 1,942,909 100.0% 4,661,453 1,608,866 34.5%


An aggressive plan to reduce NRW in four years!

The NRW Master Plan


• Commercial loss (apparent) reduction activities completed by water utility

• Physical loss (real) reduction activities complete by specialist NRW Consultant

• Phase 1 (Implementation)– Two year implementation (Sept 2014 to Sept

2016)– Target Net Physical Loss Reduction of 154 MLD– Monthly NRW measurements from overall utility– NRR 6.8 MLD/month in Y1; 7.0 MLD/month in Y2

• Performance based (30% of contract value)

Summary of NRW Master Plan Implementation


1. Established 120 DMAs2. Established 160 WBAs (now 100% coverage)3. Repaired 1,300 DMAs and WBAs4. Installed 65 advanced pressure mgmt. systems5. Installed 900 storage tank sensors to prevent o/f6. Repaired 135,000 leaks7. Replaced 15,000 service pipes

Physical Loss Reduction – Scope of Works


8. Repaired 3000 large pipes (>300 mm)9. SmartBall Leak Detection on 2,400 km of pipe10.Sahara Leak Detection on 240 km of pipe11.Implemented and updated GIS12.Updated all NRW software13.Provisional sum for pipe replacement

Physical Loss Reduction – Scope of Works


Water Balance Area (WBA) Concept


• A performance based contract for the reduction of NRW

• NRW project over entire water network• NRW = SIV for Month – Monthly Billings• Measurement on three month rolling average• Baseline determine in three months before project

kick off• Deductions for Commercial Loss Reduction and

other works focused on NRW that are not part of the exact contract

Key Terms of the Contract


• Previous NRW studies indicated that 420 MLD (35%) of Total Physical Losses are ‘upstream’ of DMAs

• Therefore, a greater focus on previously neglected large diameter pipes – Pilot large diameter leak detection project found 135

leaks in 217 km of large diameter pipe– Saved 6.1 MLD– Justified significant expansion of the large diameter

program

• Water utility has 6,000 km of large diameter pipe– SmartBall has inspected 2,400 km– Sahara has inspected 240 km

A Focus on Large Diameter Leak Detection


• Find leaks down to 0.1 l/min (repair or replace before a large failure)

• Material type doesn’t impact capabilities• Accuracy is +/- 1 meter• Limitations:

– >300mm pipe– >0.25 m/sec flow velocity

• Find 1 leak every 2km• Reducing NRW by 29 m3/day/km• Based on results, if they inspect all 6,000 km of large

diameter pipe they will save a further 143 MLD

The Results of Large Diameter Focus


• You are not alone – Many utilities have tried strategies for decades and you

can benefit from their knowledge (and mistakes)

• Get serious about NRW– Results are only achieved through comprehensive

commitment from all stakeholders (government to field technicians)

• Utilise the private sector– Outsourcing isn’t new - but performance based NRW is.

World Bank has financed PBCs in Brazil, Malaysia, Vietnam and Thailand…. Why not the Pacific? Should the PWWA act as an advocate to get World Bank/ADB funding?

• NRW is your cheapest new water source– Water is critical to life and 50% is being lost in the Pacific

Conclusions

tsx: purglobal innovative sustainable infrastructure management solutions nrw – what can we learn...

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