Performance Evaluation of a Water Supply System

PRESENTATIONONPERFORMANCE EVALUATION OF A WATER SUPPLY SYSTEM FOR FEDERAL CAPITAL TERRITORY, ABUJA

BYQUADRI OLUWASEUN SAHEED(M.ENG/SEET/2008/1953)

DEPARTMENT OF CIVIL ENGINEERING, SCHOOL OF ENGINEERING AND ENGINEERING TECHNOLOGY, FEDERAL UNIVERSITY OF TECHNOLOGY, MINNA, NIGERIAMARCH, 2013

BACKGROUND Access to reliable supply of water is one of the most important means of improving Human health and protecting the environment. In 1990 more than 1 billion people lacked access to drinking water from a convenient, protected source, but the situation is improving. The proportion of people in developing countries with access to an improved water source increased from 71 percent in 1990 to 86 percent in 2008, reaching the Millennium Development Goal target of halving the proportion of people without access to an improved water source (World Bank, 2012).

A key challenge in the water sector system in Abuja is the lack of adequate supply with inadequate and reliable information. The water supply to the residents of Abuja is managed by Federal Capital Territory Water Board (FCTWB) which is a public corporation. The primary source of water is the Lower Usman Dam which was constructed in 1984 with a reservoir capacity of 5000 cubic meter per hour. The FCTWB management has not been able to meet the water demand of the increasing population (Jimoh and Mogbo, 2001).

The assessment of the performance with the use of performance indicators can measure The quality of service and the utilitys effectiveness and efficiency make transparent the Comparison between the objectives, provide benchmarking between similar undertakings and encourage them to provide an improved service. The performance evaluation of the water supply system can be the right too to help to solve some of the major problems of the water utility.

INTRODUCTIONPerformance measurement can simply be defined as the regular collection and reporting of data to track the work produced and results achieved by a system. A performance indicator can be define as a parameter, or a value derived from parameters, which provides information about the achievements of an activity, a process or an Organization.Advantages of performance indicators(i) Makes performance visible (ii) Focuses attention(iii) Provides objectivity (iv)Promotes consistency(v) Improves decision-making

Categories of Performance indicators (PIs) (i) Water Resources PIs (ii) Personnel PIs (iii) Physical PIs (iv) Operational PIs (v) Quality of Service PIs (vi) Financial PIs (Kun et al., 2007)AIM & OBJECTIVESThe aim of this study is to evaluate the performance of the water supply system in Abuja using the ADB performance indicators. The specific objectives of the research are using the following performance indicators to determine performance:(i) Benefit cost ratio (ii) Water coverage (iii) Water produced per capita(iv)Water availability (v) Metering percentage (vi) Operating efficiency(vii) Revenue collection efficiency (viii) Debt recovery duration

Materials and MethodsData Collected:The necessary data information were collected and analyzed. The sources of information are: Federal Capital Territory Water Board (FCTWB) Federal Capital Territory Millennium Development Goals (FCT MDG) The following data were collectedFCT annual budget (1988 2011)FCT water budget (1998 2011)FCT water revenue (1998 2011)FCT Customer database numbers (2002 2011)No of bills distributed (2002 2011)No of customers response (2002 2011)No of metered and flat rate connections (2005 2011)Annual water produced (2005 & 2011)

PERFORMANCE INDICATORS USED

S/NINDICATORUNITTARGETMAXIMUM SCORE (POINTS)SCORING SYSTEM1

2 Benefit - cost ratio

Water coverage of water supply connections -

%1.0

10010

20Greater than 1 = 10 points0.75 -0.99 = 8 points0.50 0.74 = 6points0. 25 0.49 = 4 points0.00 0.24 = 2 points100% =20points75 - 99% = 15 points50-74% =10points25 49% = 5 points 0 24% = 0 point3Water produceD per capitaLpcd15020150 and above = 20points100 149 = 15 points 75-99 =10 points 35-74 = 5 points 0 34 = 0 point4Water availabilityHours241024 hours = 10 points12- 23 hours = 5 points5Metering ratio of water connections %10010 Full = 10 Points 75-99 =8 points 50-75 =5 points 25-49 = 3 points 0-24 = 0 point6 Operating ratio performance%0 50100 75% = 10 points75 100% = 5 points Greater than 100% = 0 pt7Revenue collection efficiency %100.1080100% 10 points 60-79% 7 points50-59% 5 points30 -49% 4points0 -29% 0 point8 Debt Recovery DurationMonth3months1003months = 10 points3 6months= 7 points6-12 moths = 5 points Greater than 12mths=0pt

1. Benefit Cost Ratio:The BCR value was calculated by calculating the ratio of the water revenue to water budget for each year. The BCR ratio can be calculated with the equation below:BY = WR WBWhere BY = Benefit cost ratio of a particular yearWR= Water revenue; WB = Water budget

2. Water coverageWater coverage is defined as the ratio between the total number of the population served by the water supply enterprise and the total population. The population needed to be served in each municipal area is the total population in each area council and was calculated byPN = PAC PTHence, the actual population served was calculated as:Ps = WC x PN Where; Wc = Percentage of water coverage of the area, PAC = Population of the area council PN = Population needed to be served by FCTWB; PS = Actual Population served PT = Total Population of Abuja

N:B: The total population of FCT Abuja of 1,406,239 in 2006 (NPC, 2006) was estimated using a population growth rate of 9.3% (UNFPA, 2012)

3. Water Availability: The water availability indicator is used to determine the number Of hours of supply at the consumers end.

4. Water produced per capita: This indicator captures the quantity of treated water that is supplied to the consumer daily. This volume of water is to include only treated water that goes into the distribution system. It determines whether there is adequate or shortage of available water resource in the city. The water production per population was calculated using the formula below:WP = TVP TPwhere, Wp = Water produced per capita; TVP = Total volume of water produced (Annual) TP = Total population

5 Metering Ratio: The metering ratio performance indicator captures the extent to Which the connections are metered. Metering of connections is an important aspect In understanding the accuracy of consumption quantities in each city. The metering ratio can be calculated with the formula belowMRT = TMC X 100 TCWhere: MRT = Metering ratio (percentage); TMC = Total number of metered connectionsTC = Total number of connections

6. Operating Cost: The operating cost indicator can be used to determine the efficiency of the water utility by comparing operating expenses to net sales . It was calculated by dividing the operating expenses by the net sales.The operating ratio can be calculated using the formula belowOR = OE x 100 TSWhere OR = Percentage of Operating cost; OE = Total annual operating costTS = Total sales (Annual)

7Revenue Collection Efficiency: The collection of water supply charges indicator captures the extent of collection of revenues that are billed by the FCTWB.The percentage of collected revenue can be calculated with the formula below:PCR = TAC x 100TERWhere; PCR = Percentage of collected revenue;TAC = Total amount collectedTER = Total expected revenue;TC = Total number of connections

8 Debt Recovery DurationThe debt recovery duration indicator determines the duration the water utility is able to collect debts from consumers

RESULT AND DISCUSSION

1. Benefit Cost Ratio2. Water Coverage

ITEMUNITTARGET(Maximum Point)PERCENTAGE ACHIEVEDPERFORMANCE INDEXBenefit Cost ratio %Greater than 1 (10 points)2005: 28.62006: 51.82007: 20.92008: 39.52009:14.8 2010: 22.92011: 45.22005: 4 2006: 6 2007: 4 2008: 4 2009: 2 2010: 4 2011: 6

ITEMUNITTARGET(Maximum Point)PERCENTAGE ACHIEVEDPERFORMANCEINDEXREMARKSWater coverage %100% (20 points)2005: 35%2008: 9%2011: 5%2005: 52008: 02011: 0Water coverage in the selected area councils have reduced over the years, the FCTWB needs to increase the volume of treated water capacity


3. Water Availability4. Water produced per capita

ITEMUNITTARGET(Maximum Point)PERCENTAGE ACHIEVEDPERFORMANCEINDEXREMARKSWater coverage %100% (20 points)2005: 35%2008: 9%2011: 5%2005: 52008: 02011: 0Water coverage in the selected area councils have reduced over the years, the FCTWB needs to increase the volume of treated water capacity

ITEMUNITTARGET(Maximum Points)PERCENTAGE ACHIEVEDPERFORMANCE INDEXREMARKS Water Availability (Continuity of water supply) Hr24 hours(10 points)2005: 30%2008: 27%2011:18% 2005: 6.50 2008: 6.35 2011: 5.90 Water supply duration keeps on decreasing, FCTWB management is advised to repair replace old facilities so as to reduce water rationing.


5. Metering ratio6. Operating cost

ITEMUNITTARGET(Maximum point)PERCENTAGE ACHIEVED (%)PERFORMANCE INDEXREMARKSExtent of metering of water connections %100%2005: 3 2007: 23.6 2008: 34.22011: 81 2005: 0 2007: 0 2008: 3 2011: 8 Almost meeting the metering ratio target, FCTWB have shown a lot of improvement over the years.

ITEMUNITTARGET % Achieved Performance Index(Maximum point) Operating ratio performance%Less than 75%(10 point) 2003: 214 2004: 168 2005: 176 2006: 186 2007: 122 2008: 83 2011:93 2003: 0 2004: 0 2005: 0 2006: 0 2007: 0 2008: 5 2011: 5


7. Revenue Collection Efficiency8. Debt recovery duration

ITEMUNITTARGET PERCENTAGE ACHIEVEDPERFORMANCE INDEXREMARKSRevenue collection efficiency% 100%2003: 692004: 772005: 592006: 692007: 552008: 482011: 462003: 72004: 72005: 52006: 72007: 52008: 42011: 4 Almost meeting the metering ratio target, FCTWB have shown a lot of improvement over the years.

YEAR2003200420052006200720082011Amount Billed575,571,840738,550,000960,000,000964,000,0001,196,960,8422,419,200,0004,808,895,681.30Debt 179,876,439 173,496,848 392,534,178 303,250,994 536,211,836 1,255,246,961 2,613,482,749.92Debt Percentage31234131454254

OVERALL PERFORMANCE SHEET

S/NItemTotal pi score2003200420052006200720082009201020111Benefit cost ratio1046442462Water coverage of water supply connections20--5----00

3Water produced per population20--5202015-1010

4Water availability10--6.5--6.35--5.9

5Metering ratio of water connections10--0-03--86Operating cost performance10000005--0

7Revenue collection efficiency10775754--4

8Debt Recovery Duration

TOTAL10

100000

25.5000000

33.9

CONCLUSION AND RECOMMENDATIONSCONCLUSION

(1)There was an increase in population of Abuja due to people migrating from different states and natural increase has resulted in high demand for water which has placed a strain on existing service provision.

(2)The water produced per capita has reduced to 89 lcpd, which is less than the UNESCO standard for developing cities (150 lcpd). Hence it can be concluded that the water utility is producing below the minimum standard requirement.

3) The water supply system in Abuja is not reliable as there are frequent interruptions of supply in the FCT, in such situation, the residents buy water from water vendors.

4) The performance evaluation of FCTWB with regard to the performance indicators shows that the performance is below average throughout the years, though there was increase from 25.5% in 2005 to 33.9% in 2011, from the result, the water utility improved in BCR (4% to 6%),Water produced (5% to 10%) and Metering (0% to 8%) while there was depreciation in water coverage (5% to 0%), water availability (6.5% to 5.9%) and revenue collection (5% to 4%), while there have always been poor operating cost and debt recovery duration.

RECOMMENDATIONS

Based on the results and conclusions from this study, the following recommendations are made:

(i) FCTWB should implement projects for the repair and if possible, replacement old water supply facilities like worn out pipes and valves, this will reduce leakages and pipe burst and thereby improve the duration of water availability in the area. (ii) FCTWB needs to increase the water treatment capacity, the on-going water construction of water treatment plant (Phase III and Phase IV) will be of great help in achieving this aim. Provision of additional water treatment plants will increase the water coverage and water produce per capita. iii) FCTWB management needs to set up a committee which will oversee how the water utility funds is being managed especially in the area of debt recovery, operating cost and revenue collection.iv) The water utility public relation department should make public awareness and enlighten the public on the importance of customers paying their water tariff, customers not ready to pay after given a short notice should be disconnected.

THANK YOU!

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Performance Evaluation of a Water Supply System