Mbombela Water Indaba : April 2012

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Oswin Mitchell
5 years ago
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Background South Africa is a dry country, with a

Our rivers are small in comparison with other

Presented by: Willem Wegelin Many of our existing

shortages, where the requirements for water are

4 4 No Drop Status of Planning in 152 WSAs up to

or partial WCWDM Strategies and Plans in place,

makes strong case to focus on improvement in the

1 Background 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. Presented by: Willem Wegelin 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 No Drop Status of Planning in 152 WSAs up to 51% of the 152 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 5 Mbombela Reconciliation Strategy 1

Existing Strategies Based on assumptions - No management information - Develop strategies

within existing budgets - Cannot obtain external funding Where and which intervention -

management information - No benchmark Municipalities complain about lack of funding Funding

paralysis - Spend budget indicating what is wrong but nothing get fixed or implemented Lack

management - Zones not discrete, PRVs not maintained, low pressure problems not resolved

impractical Check meters installed but not utilised Inappropriate technology - Pressure

2 Existing 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 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 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 Inappropriate technology Mbombela Reconciliation Strategy 2

3 Live stock watering Lack of maintenance Intermittent Supply Deteriorating Infrastructure Vandalism Security Hand wheel broken Nuts and bolts removed Mbombela Reconciliation Strategy 3

4 No / Lack of income ILLEGAL CONNECTIONS Photo courtesy Guy Price Meter register Photo courtesy Guy Price Service Delivery Protests Apathy The New Age, Feb 2012 Visible Leaks Internal Plumbing Leakage Average monthly consumption = 300m 3 Mbombela Reconciliation Strategy 4

5 Pavement ing Leaking tap diverted into the sewer system Z Siqalaba Inefficient garden watering Japanese Success Formula 1945 NRW = 80% It was not fixed in day!! CASE STUDIES 2006 NRW = 3.6% Mbombela Reconciliation Strategy 5

Japanese Success Formula Drakenstein Local Municipality

level of economic development but on the business strategy

It is people who developed the services, not a machine,

What differentiate the performance of a water supply

! Source : DWA DBSA JICA Joint Seminar, September 2011

35000 30000 25000 20000 15000 10000 5000 0 1989 1990 1991

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Population = 173 780 Census 2001 Population = 186 419

Municipality Best payment rate (2011)(110%) Best service

6 Japanese Success Formula Drakenstein Local Municipality 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 success formula Drakenstein (Paarl) Demand Demand (Ml/year) Saving of m 3 Census 1996 Population = Census 2001 Population = Census 2011 Population = Actual Demand Projected 3.5 % Baviaans Municpality Success Formula Baviaans Local Municipality Best payment rate (2011)(110%) Best service delivery (2011) Councillors disconnect consumers with support from technical department Team effort (politicians, technical, finance) Consumer comment I love my municipality Growth in business sustainable community Mbombela Reconciliation Strategy 6

System Input Volume (m³/annum) 450 000 000 400 000 000 350 000 000 300 000 000 250 000 000 200 000 000 150 000 000 100 000 000 50 000 000-26,2% 26,8% 26,8% 25,2% 33,5% City of Tshwane 25,5% 23,6%

Projected SIV with WDM % Non-revenue water 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% % Non-revenue Tshwane Success Formula Very small WDM budget fit within existing Metro with second lowest NRW

tariff setting Conventional metering, reading and billing Informative billing Tshwane Residential Tariffs Tshwane Informative Billing R 20 R 18 R 16 R 14 tariff (R/kl) R 12 R 10 R 8 R 6 R 4 R 2 R 0

Characteristics of Successful Systems No / limited vacancies Necessary skills and capacity Excellent institutional collaboration between departments Excellent record keeping with resulting

7 System Input Volume (m³/annum) ,2% 26,8% 26,8% 25,2% 33,5% City of Tshwane 25,5% 23,6% 23,5% 25,7% 26,4% 23,5% 20,6% Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Dec-15 Jun-17 Jun-22 Billed metered Billed unmetered Non-Revenue water Projected SIV without WDM Projected SIV with WDM % Non-revenue water 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% % Non-revenue 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 Tshwane Residential Tariffs Tshwane Informative Billing R 20 R 18 R 16 R 14 tariff (R/kl) R 12 R 10 R 8 R 6 R 4 R 2 R 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 Characteristics 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 STRATEGY Mbombela Reconciliation Strategy 7

Key Questions Before Starting Any Intervention Where are the losses? - Which region, zone or district? - Bulk, distribution network, inside property?

Consumption Unbilled Metered Consumption Unbilled Unmetered Consumption Free basic Revenue Quantify the losses? - What is the volume of water lost? - How much can I expect to save?

8 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 System Modified IWA water balance Authorised Consumption Billed Authorised Consumption Unbilled Authorised Consumption Billed Metered Consumption Billed Unmetered Consumption Unbilled Metered Consumption Unbilled Unmetered Consumption Free basic Revenue 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 Input Volume Losses Apparent Losses Real Losses Unauthorised Consumption Customer Meter Inaccuracies Leakage on Transmission and Distribution Mains Leakage and Overflows at Storage Tanks Leakage on Service Connections up to point of Customer Meter Non Revenue ACT CHECK IWA water balance relevance Regulation and compliance Monitoring and review License applications, approvals and conditions IWA Balance Budgets, projects and implementati on resources planning and targets Strategies and business plans PLAN DO WC/WDM Toolbox EFFICIENT USE AND CONTROL OF DEMAND EFFICIENT DISTRIBUTION AND OPERATION Retrofitting and removal of wasteful devices Toilet cisterns / Urinals / Taps / Showers Sectorisation Districts / Sub-districts / Zones Tariff structures and billing procedures Boundary valves and metering Free basic water Step testing and logging Tariff models fair and equitable Administration / efficient use incentive Monitoring of water loss in each zone Informative billing system Night flow analysis (SANFLOW) Credit control Flow and pressure logging Leakage / overflow from storage structures General education and public involvement Logging of sewer flows and analysis weeks / Competitions Posters / Pamphlets / Stickers Pressure management Grey water use (domestic) Pressure management analysis (PRESMAC) Rain water harvesting Regular maintenance of control valves -wise gardening Performance monitoring Payment for water and illegal use Mains replacement programme Consumer metering Burst and leak repair frequency theft Type, Age and condition of network Aggressive soil conditions Schools education campaigns Aggressiveness of potable water Site visits / education material Operating pressures regime Schools retrofitting projects Passive leakage control Legislation leak report desk Municipal by-laws Response time Acts and Regulations Quality of leak repairs Emergency Action Plan Active leakage control Hose pipe bans ECONOLEAK Alternative watering days Leak detection equipment Intermittent supply Sounding, leak noise correlation, gas injection Fines and temporary tariff hikes Training and education Training and education Technical management and operation staff Decision makers, technical and treasury staff ACCOUNTING FOR ALL WATER audits 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 Target water balance and possible savings Potential savings from various interventions Regulations under WSA R509 of 2001 Alignment of the IWA water balance and interventions System Input Volume Authorised consumption losses Billed authorised consumption Unbilled authorised consumption Potential savings from increased water use efficiency Unavoidable annual commercial losses Economic level of commercial losses reduction Potential savings from a reduction in commercial losses Unavoidable annual real losses Economic level of physical losses reduction Potential savings from reduction in physical losses Implemented through Implemented through the improvement of Implemented through Community awareness Bylaws and enforcement Retrofit and removal of wasteful devices Tariff setting Meter accuracy and assumption errors Data transfer errors Data analysis and assumption errors Theft and unauthorised consumption Pressure reduction Active and passive leakage control Mains replacement Speed and quality of repairs Reg (4) Eradicate intermittent supply Reg (10) audit as part of WSDP Reg (11) 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 Mbombela Reconciliation Strategy 8

9 Resource Balance Diagram Issues 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 The budget conundrum Municipalities spent 62.2%, or R236.4 billion, of their total adjusted budgets (R377.8 billion) as at 31 March 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 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 R108.6 billion as at 31 March 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 Realistically collectable amount (less than 90 days) is R22.9 billion Municipalities owed their creditors R26.3 billion 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 = R204.3 billion (66%) of R310 billion Source : Local Government Revenue and Expenditure: Third Quarter Local Government Section 71 Report ending 31 March 2016 Recommendations 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 Comply with legislation and regulations Resolve intermittent supply Understand municipal funding structures and include in IDP Strategy 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. Mbombela Reconciliation Strategy 9

Strategy deliverables Identification of key interventions with budgets, timelines, benefits, and cost benefit ratios.

Benefit to the municipality in terms of increased revenue and sustainability.

Development of a business case which can be presented to a financial institution for funding.

10 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. Benefits of WC/WDM Improved level of service Increased revenue and affordability Improved customer relations Educated and water efficient customers Job creation security Asset management Improved corporate governance Improved institutional arrangements THANK YOU Mbombela Reconciliation Strategy 10

Non-Revenue Water Pre-Feasibility Assessment Tool

Non-Revenue Water Pre-Feasibility Assessment Tool MBI Water Services Master Class #6 2018 For Municipalities, By Municipalities, Benefitting Municipalities and their Communities Background SA 30 th driest