Mbombela Water Indaba : 24-25 April 2012 · Source : DWA – DBSA– JICA Joint Seminar, September...

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



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



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



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



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!!



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



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



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


Proper services and customer care

Community support and appreciation

Lead by example

Possible to “stretch” their budget

STRATEGYSTRATEGY



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



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


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


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.



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

Mbombela Water Indaba : 24-25 April 2012 · Source : DWA – DBSA– JICA Joint Seminar, September...

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Transcript of Mbombela Water Indaba : 24-25 April 2012 · Source : DWA – DBSA– JICA Joint Seminar, September...