The Issues and Challenges of Reducing Non-Revenue Water. Rudolf Frauendorfer
in general, and in Asia in particular, is so obvious that it is hard to understand why efforts to improve the situation have been so limited. There are, however, a few successful examples of utilities reducing NRW to below 20% (e.g., Singapore, Phnom Penh, Manila [East Zone]) and some places where serious actions have at least started. However, the vast majority of water utilities in Asia are not engaging in serious and professional NRW management.
Expanding water networks without addressing water losses will only lead to a cycle of waste and inefficiency
For many cities, reducing NRW should be the first option to pursue when addressing low service coverage levels and increased demand for piped water supply. Expanding water networks without addressing water losses will only lead to a cycle of waste and inefficiency. Also, a high rate of NRW is closely related to poor energy efficiency, since water transported in networks is “loaded” with energy through the distribution and treatment processes. Thus, energy is lost along with the water. Therefore, reducing NRW is important to overall efficiency and financial sustainability, since it provides additional revenues and reduces costs.
Figure 1Non-Revenue Water Levels of Asian Cities
Notes:
1.Data of most utilities are unaudited and may be misleading.
2.Only some of the utilities have continuous supply—in all other cases NRW would be significantly higher when the system in its current condition would be supplied on a continuous basis.
3.The figures for Phnom Penh and Singapore are unaccounted-for water (UFW). All others are NRW.
4.2009 data are estimated.
Source: Asian Development Bank and Institute of Water Policy, Lee Kuan Yew School of Public Policy. (2010). Every drop counts: Learning from good practices in eight Asian cities. Mandaluyong City, Philippines: ADB and IWP-LKYSP.
In its urban water supply projects, ADB pursues NRW reduction as a key strategy along with increasing production capacity and expanding networks. It acknowledges that reducing NRW cannot be solved through a single project. Long-term engagement and dialogue with governments and water companies are required, as institutional changes take time and pipe replacements alone will not suffice. Rather, NRW reduction requires further effort to maintain low levels once initial progress is made. While ADB promotes utilities to consider private sector involvement (e.g., through performance-based contracts), this needs to be assessed on a case-by-case basis. Along the way, it is important that utilities develop in-house capacity to deal with this core issue.
The main objective of this discussion paper is to provide the basis for a substantive dialogue on NRW between key decision makers at the municipal level, including local government officials, management of water utilities, civil society, and other stakeholders. It aims to raise awareness on key issues surrounding NRW, including the magnitude of the NRW problem in Asian cities, reasons why NRW management is often not practiced, international terminologies and methodologies for improving NRW management, and the importance of using appropriate performance indicators.
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