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8/3/2019 WL1: Non Revenue Water: Do or Die? by Ek Sonn Chan http://slidepdf.com/reader/full/wl1-non-revenue-water-do-or-die-by-ek-sonn-chan 1/16 1 ADB Water Commitee 29 July 2010 By Ek Sonn Chan General Director of PPWSA [email protected]

WL1: Non Revenue Water: Do or Die? by Ek Sonn Chan

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ADB Water Commitee

29 July 2010

By Ek Sonn Chan

General Director of PPWSA

[email protected]

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1- No expansion of new service area:

Technical survey of existing service area,

 Absolutely no expansion of new service area,

Discourage water sellers.

2-Replaced old pipes:

Creation of pipe laying team to be train by French expert,

External lending agency finance pipe and equipment, PPWSAfinance and execute by their own team.

Started old pipe replacement from 1995,

282km of old network were totally replaced in 1999,

Using the state of art materials,

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3- Strongly disciplining staffs:

• Heavy penalty on collusion with customer,

• Heavy penalty on desk reading,

Bonus for good result.

4- Strongly fighting against illegal connections:

In 1994: Creation of inspection bureau,

Set up internal discipline standard,

Customer information associated with bonuses for true information,

Strictly apply heavy penalty without fear and favor.

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5- Updated the customer base:

- Dianostic survey by 100 staffs from MPP’s line departments

carried out a comprehensive customer survey for one year.

- Out of 25,960 recorded customers, 12,980 never receivedwater whereas 13,901 real customers were not recorded,

- New customer file of 26,881 customers was set up in 1994.

6- Metering all connection with accurate water meter:

- The stronger, harder head first.

- From cheap, robust Class B to accurate WM Class C.

- Fromulate the SOP for water meter management

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7- Metering all connections:

In 1994: Creation of 4 water meter installation team,

 At first using the water meter provided by French grant,

Gradually reduce the cost and improving the efficiency,

Target The hard head and big consumers first,

Result:

 – In 1993: only 3,391 out of 26,881 con. were metered.

 – In 2001:74,945 connections were 100% metered with class C meter.

 – Today, we have a complete Standard Operating Procedure (SOP)

for water meter management through learning by doing.

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8- 24/7 standby team to repair leaks:

In 1993 : One team with 4 unskilled staffs,

In 1997 : Four teams with 48 better skill staffs.

From low to high motivation: 24/7 standby ready to respond to

any leak within One hour .

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9- District Metering Area (DMA) Program:

- 2003 : Commencement of DMA program.

: Learned and support from Kitakiyushu water bureau.

- 2004 : Completed 2 zones in downtown.

: Introduced internal service contract on pilot zone.

- 2005 : Completed 8 DMA with 66 subzones

: Creation of ditribution control office with 62 staffs

in 4 teams.

: Apply internal service contract in all the 8 DMA.

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73.00%

64.00% 64.00%

56.00%

42.00%

46.00%

33.00%

23.00% 22.00%

17.00%14.00%

9.00%7.28% 7.08% 6.19% 5.94%

1993 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

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This NRW reduction is equal to a saving of about USD 150 millions on investment, and

USD 18 millions of income per year.

This means:

72 – 6 = 66% of water produced was saved,

 As of today, production is 300,000m3 /day; this 66% is equivalent to 198,000m3 /day.

 As of PPWSA average tariff is USD0.25/m3; this 198,000m3 /day represents

USD18,067,500/year.

In order to supply the amount of water lost, we need to build a WTP of 554,000m3 /day 

(198,000m3 x 28/100), which should cost about USD150 millions.

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700 2000 5500 630012,792 17,361 20,662 25,125 30,219

36,53344,861

53,35164,679

74,28884,100

100,312 105,780

1400 27004200 5200

11,548

16,42818,766

20,93323,621

30,21934,994

41,669

41,299

54,620

53,883

70,431

72,467

-700 -700

1,300 1,100

1,243

9341,895

4,191

6,598

6,314

9,867

11,682

23,380

19,668

30,217

29,882

33,313

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Total Revenue Total Expenses Gross Profit In million Riels

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PPWSA will no longer benefit if:

Total expenses ≥  Average tariff x Total water volume produced x Billing ratio

=> Billing ratio ≤ Total expenses / (Average tariff x Total water volume produced)

Average tariff based change in Billing Ratio and NRW (Figure of 2009)

Reducing NRW, make the authority profitable, without need to increase water teriff since 2001

Reducing NRW, could save the authority from huge capital investment need.

Reducing NRW , contribute to the poverty reduction policy of RGC,

Reducing NRW, have make contribution to reducing carbon emission, contributing to the

Global Warming fight,

87.14%

86.26%

85.91%

12.86%

13.74%

14.09%

980 R/m3

990 R/m3

994 R/m3

Billin NRW

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0.25

0.38

0.26

0.9

0.2

0.65

0.15

0.280.3

0.25

0.08

0.28

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Phnom

Penh

Bangkok Ho Chi Minh Singapore Penang Davao Vientiane Colombo Lahore Taipei Dhaka Medan

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6.00

29.00

42.00

4.00

17.00

31.00

27.00

38.00

34.0035.00

36.00

27.00

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

Phnom

Penh

Bangkok Ho Chi

Minh

Singapore Penang Davao Vientiane Colombo Lahore Taipei Dhaka Medan

Source: ADB Data Water Book 2008

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