Chapter 8
Water demand Management
Prof. Dr. Ali El-Naqa
Hashemite University
June 2013
Course map
U nit 1: W DM in context
U nit 2: M unicipal W DM
U nit 3: W D M options and benefits
Unit 4: W DM plan
Outcomes
By the end of this unit, you should be able to
 give a brief overview of IWRM and contextualise it
within global...
Outcomes
By the end of this unit, you should be able to
 give an overview of available WDM measures
 detail the constrai...
Outcomes
By the end of this unit, you should be able to
 formulate ideas for exploiting incentives and
overcoming constra...
Water Demand Management in context
What are the links?
 Sustainable development
 Integrated Water Resources
Management
...
1.1 Sustainable development
There are over 60 definitions of sustainable
development, including this landmark:
Development...
1.1 Sustainable development – triple
bottom line
1.1 Sustainable development – role of water
1.2 Water and water resources – hydrological
cycle
1.2 Water and water resources –
a rainbow of water
 Green water
 Blue water
 White water
 Grey water
 Brown water
 Y...
1.2 Water and water resources – partitioning of
rainfall
1.2 Water and water resources – the diversion
cycle
1.2 Water and water resources – dams and
development
 WCD Report on Dams
 The hydraulic mission (SADC)
 Inter-basin tra...
1.2 Water and water resources – dam purpose in
Southern Africa
1.2 Water and water resources – shared rivers
 Fifteen shared rivers
 Downstream-upstream
concerns
 Hydro-politics
1.2 Water and water resources – conflict
prevention and resolution
 SADC Protocol on shared
rivers
 Helsinki Rules on sh...
1.3 Integrated Water Resources Management
(IWRM)
IWRM is a process which promotes the co-
ordinated development and manage...
1.3 IWRM: The Dublin Principles (1992)
Freshwater is a finite, vulnerable and essential
resource
Its development and man...
1.3 IWRM: Implications
1.3 IWRM: Cross-cutting issues
1.3 IWRM: Challenges
1.3 Millennium Development Goals (MDGs)
 Millennium Declaration 2000
(189 countries)
 Goal 7: Environmental
Sustainabili...
1.4 Water stress and scarcity
1.4 Water stress and scarcity – Southern Africa
 Definitions
 Deception of numbers
 Physical scarcity:
< 1 700 m3 per p...
1.4 Water stress and scarcity – Southern Africa
Scarcity versus stress
0%
10%
20%
30%
40%
50%
60%
70%
80%
100 1,000 10,000...
1.4 Water use versus GDP – Southern Africa
W ater use per capita
versus GD P per capita
DRC
M oz
Tan z
Za mb ia
A n go la
...
1.5 Water demands on MWSAs
 Categories
 Domestic
 Non-domestic
 Losses
 Variability due to
 Average and peak flows
...
1.5 Water demands on MWSAs – factors affecting
demand
 Weather
 Population
 Service level
 Health and
epidemiology
 P...
1.6 Water Demand Management
1.6.1 Myths and misconceptions
1.6.2.1 Definitions
1.6.2.2 Interpretations
 Narrow
 Broader
...
1.6 Water Demand Management
1.6.4 Measures and interventions
1.6.5 Constraints and incentives
1.6.6 SADC status
1.6.7 The ...
1.6.1 Myths and misconceptions
WDM is NOT
 A luxury that poor countries can ill afford
 A fashion that will pass
 A hob...
1.6.1 Myths and misconceptions
WDM is NOT
 A goal in its own right
 Too vague to implement
 An approach which does not ...
1.6.2.1 Definitions
Water Demand Management:
 Aims to increase water efficiency, reducing or
postponing the need for more...
1.6.2.1 Definitions
Water Demand Management:
 Seeks to influence water demand in order to
achieve consumption levels that...
1.6.2.2 Interpretations
 Narrow: curbing water demand and consumption
 Examples:
 Efficient irrigation
 Increased wate...
1.6.2.2 Interpretations
 Broader: influencing water demand and using non-
traditional water sources to delay or put off n...
1.6.2.3 Components
 Enabling policy environment
 Right institutional set-up
 Right measures and implementation
1.6.3 Motivating factors
 Environment:
 Drought and water scarcity
 Adverse environmental impacts of dams and well
fiel...
1.6.3 Motivating factors
 Equity:
 Provide water to more people
 Better affordability
 Empowerment and growth:
 Innov...
Figure 6: WDM target groups and
measures
1.6.4 Measures and interventions
 Measures target four different stages of the water
supply chain:
 Water resource manag...
1.6.4 Measures and interventions
 Technical measures
 Planning processes
 Regulatory measures
 Economic incentives and...
Water cycle
stages
Technical
WDM
measures
WDM in
planning
WDM in
regula-tions
WDM in eco-
nomics
WDM in
consul-tative
proc...
Water cycle
stages
Technical
WDM
measures
WDM in
planning
WDM in
regula-tions
WDM in eco-
nomics
WDM in
consul-tative
proc...
Water cycle
stages
Technical
WDM
measures
WDM in
planning
WDM in
regula-tions
WDM in eco-
nomics
WDM in
consul-tative
proc...
Water cycle
stages
Technical
WDM
measures
WDM in
planning
WDM in
regula-tions
WDM in eco-
nomics
WDM in
consul-tative
proc...
1.6.5 Constraints and incentives
Constraints:
 Practical (funds, skills, capacity)
 WDM benefits not understood
 Supply...
1.6.5 Constraints and incentives
Constraints:
 Lack of understanding of the need for WDM
 Lack of planning and implement...
Activity
 What does WDM mean in your country and
organisation?
 What are the principal WDM constraints in your
country a...
1.6.5 Constraints and incentives
Incentives
 Resource protection
 Increased production
 A sound basis for planning
 Wa...
Country Policy/legislation National
strategy or
programme
Applied in
urban sector
Applied in
agricultural
sector
Angola No...
Country Policy/legislation National strategy
or programme
Applied in
urban sector
Applied in
agricultural sector
Mozambiqu...
Activity
Look at the analysis of your country.
 Do you agree with the synopsis made?
 Can you provide some examples of t...
1.6.6 SADC WDM status
SADC countries:
 Are at different stages of WDM preparation and
adoption
 Have seldom integrated W...
1.6.7 The pursuit of WDM
Regionally
 Shared or common sustainability commitments
 Regional Strategy and Action Plan
 Sh...
Activity
 What do you think about these constraints and
benefits?
 Can you see opportunities for yourself or your
organi...
1.6.7 The pursuit of WDM
Nationally
General approaches that countries may need to
adopt:
 Identifying their own national ...
1.6.7 The pursuit of WDM
Nationally
General approaches that countries may need to
adopt:
 Converting or extending the goa...
1.6.7 The pursuit of WDM
Nationally
Countries can promote or legislate WDM
measures aimed at user groups:
 Water planners...
Activity
Discussion questions
 What factors determine the progress made with
WDM in countries?
 Why is WDM not yet integ...
Activity
Discussion questions
 Why are few or no institutions charged with
IWRM and WDM, and what are the
implications of...
1.6.7 The pursuit of WDM
Local level and municipal initiatives that
showcase WDM in Southern Africa
 Water conservation i...
Activity
 Think of examples of WDM in practice in your
country
 Collate the information you already know about
your loca...
Summary
 WDM is an integral part of IWRM
 WDM is not commonly applied in Southern
Africa
 WDM is in the interest of cou...
Summary
 WDM is about efficiency, equity and
sustainability
 WDM needs to target at least four groups: water
planners, w...
Water Demand Management
UNIT 2
Municipal WDM
Course map
U nit 1: W DM in context
U nit 2: M unicipal W DM
U nit 3: W D M options and benefits
Unit 4: W DM plan
Outcomes
By the end of this unit, you should be able to
 contextualise your MWSA within your
country’s water supply chain...
Outcomes
By the end of this unit, you should be able to
 map or list the nature of water resources,
consumers, users and ...
Outcomes
By the end of this unit, you should be able to
 formulate ideas for exploiting incentives
and overcoming constra...
2.1 What is an MWSA?
Typical MWSAs
 Vary across Southern Africa
 Are responsible for supply to domestic,
industrial and ...
Typical MWSAs
 Operate within a fixed enabling
environment
 Have limited control over water tariffs
 Implement direct a...
2.2.1 WDM in the MWSA
The main components of a WDM plan
 An enabling policy environment for end-
users and the MWSA
 App...
MWSAs can make an impact on the enabling
environment by
 altering by-laws
 introducing water conservation standards
and ...
A WDM plan for an MWSA should
 implement WDM measures for the MWSA
 promote the implementation of WDM
measures by end-us...
2.2.2 Sustainability in an
MWSA context
Economic sustainability: the
efficiency of water service provision
and the ability...
Social sustainability: the ability to
provide affordable water and to
make sufficient water available for all
residents an...
Environmental sustainability: the
maintenance of economic growth
and development within the limits
set by ecology
Environm...
Sustainable service provision:
when water continues to be
available for the design period of a
scheme, programme or initia...
 Elements required for sustainability
 proper design and planning
 money for recurring expenses and repairs
 consumer ...
2.2.3 Municipal water
sources
 Fresh surface water
 Fresh groundwater
 Re-use of return flows
Quantity, quality, and re...
2.3.1 The municipal
water supply chain
 Water resource management
 Water distribution management
 End-user efficiency a...
 The South African DWAF has
illustrated possible WDM measures at
each management level (Figure 1)
 The line between Wate...
2.3.2 MWSA clients
 Bulk suppliers of raw or treated
water
 government
 parastatals
 autonomous suppliers
 Water mana...
MWSA clients (Cont.)
 Regulators
 End-users
 domestic users
 industries
 private and public service sectors
Activity
 What institutions and organisations does
your MWSA deal with?
 From whom do you source water?
 To whom do you...
2.3.3 Accountability of
MWSAs
 WDM in municipal areas is a shared
responsibility of all stakeholders
 In most countries,...
 SA DWAF WDM principles
 Water institutions should supply water
efficiently and effectively, minimising
water losses and...
Activity
 SA WDM objectives
 Water resource management
 Water distribution management
 End-user efficiency and demand
...
2.4 Integrated Least
Cost Planning
ILCP is
 a methodology that determines the
effectiveness of infrastructure
augmentatio...
 The aim: to keep water supply costs to
end-users as low as possible by
considering the effectiveness of the
entire water...
Case study: Rand water’s
ILCP model
Rand Water supplies water to
 13 municipalities
 3 metropolitan areas
 10 million p...
Figure 2: Rand Water area of supply within South Africa
Case study: Rand water’s
ILCP model
Case study: Rand water’s
ILCP model
 Causes of premature augmentation of
infrastructure
 Demand projections
 Difference in the start point and
growth rates...
Figure 4: Costs due to difference in start point and growth
rate projections
1
2
3
4
5
6
7
8
Relativecost
0 5 1 0 1 5 2 0
...
 Excessive water loss
 Inefficient use of water
 Loss
 Conclusions
Case study: Rand water’s
ILCP model
Institution Water
supply
costs
ILCP issues
Bulk water
supplier
$ 0.75/m3 Cheapest source of
supply?
MWSA $ 0.50/m3 LC trea...
 Ensures that social and environmental
concerns are adequately taken care of
 Requires cross-institutional planning
and ...
2.5 WDM reasons
 WDM is a tool, not a goal
 Social, financial and environmental
reasons
 Specific reasons vary from cas...
2.5 WDM reasons: direct
incentives
 Escalating costs of water augmentation
schemes
 Reliance on non-renewable water
reso...
2.5.1 Social reasons
 Saved water serves those without
previous access
 Improved service delivery
 Lead by example
 Go...
 Raised awareness among end-users
 Keeps rates affordable
 Safeguards water resources for current
growth and future gen...
2.5.2 Financial reasons
 Flexible and incremental implementation
spreads costs over time
 Lower customer charges
 Benef...
 Reduces expenditure on capital-
intensive augmentation schemes
 Improved affordability increases
customer base
 Reduce...
 Ring-fenced revenue retained within
departments for
 Maintenance
 Service delivery
 Expansion
 Better water resource...
2.5.3 Environmental
reasons
 Water for ecological requirements
 Promotes sustainable use through water
efficient practic...
Summary
 WDM serves not only environmental
purposes
 WDM has sound economic and social
reasons
2.6 WDM constraints
Constraints
 defer or prevent the adoption or
implementation of WDM measures
 are well documented
 ...
2.6.1 Understanding
constraints
Organise your thinking about constraints
 Identify
 Structure
 Analyse spatially
 inte...
 Analyse by stakeholder
 Water planners/managers
 Bulk suppliers
 MWSAs
 End-users
 Resolve or mitigate
2.6.1 Unders...
2.6.1.1 Structuring
constraints
 Information and awareness
 WDM capacity and infrastructure
 Habits and attitudes
 Pol...
 Costs and benefits
 Uncertainties
 Macroeconomic conditions
 Water scarcity: extent and nature
2.6.1.1 Structuring
co...
Information and
awareness
Lack of awareness about
 water scarcity
 WDM contents
 institutional roles and responsibiliti...
Information and
awareness
Trends
 There is confusion and uncertainty about
information
 There is a lack of awareness abo...
Human and financial
resources
Lack of
 human resources and skills
 WDM champions
 financial resources
 specific WDM fu...
Human and financial
resources
Trends
 HR and skills are most problematic at local
level
 WDM champions are emerging
 Fu...
Infrastructure
Constraints
 Lack of metering
 Old infrastructure
 Poor maintenance
Trends
 Vary between countries
Habits and attitudes
Constraints
 Resistance to change
 Traditional supply bias and economic
interest in supply interven...
Policy and legislation
Constraints
 WDM only recently incorporated into
policies and legislation
 Low priority for WDM
T...
Costs and benefits
Constraints
 Subsidies discourage WDM
 Costs precede benefits
 O & M costs are often neglected in
wa...
Costs and benefits
Trends
 Water tariff subsidies are being
reduced as a function of applying WDM
Uncertainties
Constraints
 WDM results less tangible than water
augmentation
 Full implications of WDM uncertain due
to ...
Uncertainties
Trends
 The availability of case studies is
 reducing uncertainty over WDM results
 improving the predict...
Macroeconomic
conditions
Constraints
 Shortage of WDM funding
 Style of governance
 Degree of stability
Trends
 Vary g...
Water scarcity
Constraints
 Degree and nature of water scarcity
Trends
 Varies greatly across the region and may
not req...
Overview
 Wide range of constraints
 Substantial differences among countries
 Most constraints are easing
 Water-scarc...
Activity
In groups, examine the list of constraints
in Table 10
 Discuss what trends have taken place
over the last ten y...
Activity
 How could traditional knowledge and
water management practices be used to
overcome constraints?
 For each cons...
2.7.3 Case study: City of
Bulawayo
 Examine the drivers
 WDM plan
 WDM approach
 Constraints
 Achievements
 Lessons ...
 Average rainfall
500 mm/a
 Pop. = 1 Million
 Volume of water
supplied = 120 000
m3/day
 Level of service = 99%
full r...
City of Bulawayo -
drivers for WDM
 Water supply
constraints
 Recurrent
droughts
 Water scarcity
 Water sector
reforms
City of Bulawayo -
alternatives
Project Yield
(106 m3/a)
NPV
(US$/m3)
Gwayi-Shangani dam 141 0.55
Lower Tuli dam 65 1.24
Z...
City of Bulawayo - WDM
alternative
 In the short term (< 5 years)
 WDM at various levels
 Reducing losses from 23% to 1...
City of Bulawayo - water
loss reduction plan
 Establishing
economic levels for
loss reduction
 Pilot studies
 Utility m...
City of Bulawayo -
reduction of UAL
City of Bulawayo - other
WDM activities
 Water conservation campaign
and public education
 Reuse and recycling of
wastew...
City of Bulawayo -
lessons
 WDM implementation is usually triggered
by severe water shortages
 WDM should be evaluated a...
City of Bulawayo -
lessons
 Computerised management information
system is essential
 Metering is indispensable (bulk, zo...
Water Demand Management
UNIT 3
WDM Options and benefits
Course map
U nit 1: W DM in context
U nit 2: M unicipal W DM
U nit 3: W D M options and benefits
Unit 4: W DM plan
Outcomes
By the end of this unit, you should be able to
 explain the costs and benefits of WDM, in
financial and social c...
Outcomes
By the end of this unit, you should be able to
 give a broad overview of various WDM
measures
 discuss each mea...
Options and benefits
 How does an MWSA decide on a way
forward?
 What means are available for
evaluating WDM interventio...
Options and benefits
Our focus:
 The costs and benefits of WDM
 Ways of evaluating the future
demand for water
 Ways of...
3.1 Costs and benefits
Consider the options for your MWSA
 What are the costs and benefits?
 What time horizon should be...
3.1.1 Financial costs and
benefits
Your MWSA’s financial costs and
revenues
 determine economic performance
 determine i...
3.1.1 Financial costs and
benefits
 Categorise financial costs by
 source of supply
 type of demand intervention (e.g. ...
3.1.1 Financial costs and
benefits
FINANCIAL COSTS FINANCIAL BENEFITS
Investment WDM costs Savings from postponement of
la...
3.1.2 Social & environmental
costs and benefits
 Government must consider social
and environmental costs
 Government and...
3.1.2 Social & environmental
costs and benefits
SOCIAL AND ENVIRONMENTAL
COSTS
SOCIAL AND ENVIRONMENTAL
BENEFITS
Investmen...
3.1.2 Social & environmental
costs and benefits
Comparing financial, social and environmental
costs and benefits may show
...
Example: Standpipes and
private connections
 compares communal standpipes
dispensing free water with the provision
of pri...
3.2 Demand projections
and analysis
Projecting future water demand is part
of regular planning activities
 THEN: demand p...
3.2 Demand projections
and analysis
Analyse
 past/present water consumption
 how this consumption might develop
in futur...
3.2.1.1 Urban users
Urban water users are
 the largest sector of
the customer base of
many MWSAs
 a mixture of domestic
...
3.2.1.1 Urban users
Domestic users
 Households using
standpipes
 Low-income households
with own water
connection
 Mediu...
3.2.2 Demand monitoring
and projections
Key determinants of domestic water
consumption
 Household income and size
 Livin...
3.2.2 Demand monitoring
and projections
Key determinants of productive uses
 Type of product and production
process
 Exp...
3.2.2 Demand monitoring and
projections - forecasting
Different methods
 Different levels of accuracy
 Require differing...
3.2.2 Demand monitoring and
projections - forecasting
Suggested criteria for selection of method
include:
 Consistency an...
3.2.2 Demand monitoring and
projections - forecasting
Trend analysis results: Figure 1 example
y = 0.0731x
2
- 288.72x + 2...
3.2.3 Demand monitoring and
projections - uncertainties
Any forecasting method is prone to
uncertainty e.g.
 Droughts/flo...
3.2.3 Demand monitoring and
projections - uncertainties
Steps to be taken
 Identify and incorporate into the forecasting
...
3.2.3 Demand monitoring and
projections - scenarios
2000 2010 2020 2030
Wateruse
Year
Low population
growth scenario
M edi...
3.2.3 Demand monitoring & projections
- forecasting in Masvingo
0
2
4
6
8
10
12
1977 1979 1981 1983 1985 1987 1989 1991 19...
3.2.3 Demand monitoring and
projections - impacts on timing
FACTOR TIMING IMPACT
Demand projections
uncertain and sometime...
3.2.3 Demand monitoring and
projections - impacts on timing
-8 -4 0 4 8 12 16 20 24
Watersupply/demand(volume)
Tim e (year...
3.2.3 Demand monitoring and
projections - impacts on timing
Important message
 Use of demand forecasting and monitoring
i...
Activity
 Can you think of any examples
where dams or well fields have
been prematurely built?
 Which ones?
 Why were t...
3.3 Selecting the right
WDM intervention
 Broad spectrum of WDM
interventions
 Careful and consistent application
 Maxi...
3.3.1 In selecting the right WDM
intervention - remember
 Complementary and integrated
measures are preferable
 Awarenes...
3.3.2 Selecting the right WDM
intervention - selection tools,
methods, rules
Tools
 Benefit-Cost Analysis (BCA)
 Economi...
Tools
 Multi-Criteria Analysis (MCA)
 Broader
 Identification of positive and negative
impacts
 Quantification and ran...
3.3.2.2 Selecting the right WDM
intervention - US EPA method
Recommended criteria
 Economic
 Social
 Environmental
 Co...
3.3.2.3 Selecting the right WDM
intervention - DWAF RSA method
Integrated Least Cost Planning criteria:
 Social impacts
...
3.3.2.4 Selecting the right WDM
intervention - pragmatism
The 80:20 Rule
 Picking the low hanging fruit
 WDM interventio...
3.4 WDM measures/options
 3.4.1 Technical options
 3.4.2 Financial options
 3.4.3 Policies, legislation and
regulations...
3.4.1 WDM measures/options -
technical measures
 Among the most tangible efforts
to reduce inefficiencies
 Easily apprec...
Aim to reduce UAL or UAW
 Water losses due to leaks
 Wastage among end-users
 Illegal abstractions
 UAL represents los...
3.4.1 WDM measures/options -
technical measures: levels of UAL
City % metered connections UAL (%)
Luanda, Angola 40 60
Gab...
Leak detection and repair
 Passive and active leakage
management
 Pressure management
 Metering all uses
 Demarcation ...
Water audits
 Water balances at zone boundaries
 Water reaching end user
 For inexplicable high losses, conduct
MNF exe...
Installation and maintenance of water
meters
 To promote effective billing
 An essential requirement for water
resources...
Water supply system maintenance
 Anticipating failures
 Predicting failures
 Preventing failures
 Detecting and correc...
Features of most EIMSs:
 Water loss and meter management
 Customer service requests
 Notification of pipe leaks
 Hydra...
Types of maintenance:
 Routine preventative
maintenance
 Corrective preventative
maintenance
 Breakdown
maintenance
 P...
Pressure management
 Reduces water loss
 Prolongs life span of
pipe work
 Recommended in areas
with high losses
 Recom...
Objective
 Reduction of excessive
pressure
Situation
 70 000 stands
 Pressure 600 to 800
kPa
 Very high losses
 80 % ...
Action
 Installation of two
pressure control points
Result
 Flow reduction from
2 500 to 1 800 m3/hour
 42 % water savi...
Activity
 Do you know the water pressure
used by your MWSA?
 What would be the water-saving
potential of pressure reduct...
3.4.1.6 End user appliances, faucets
and retrofitting devices
Water saving devices
 Low volume urinals
 Waterless urinal...
3.4.1.6 End user appliances, faucets
and retrofitting devices
Efficient garden irrigation systems
 Micro sprinklers
Wise ...
3.4.1.6 End user appliances, faucets
and retrofitting devices
Meter appliances
 Prepayment meters
Use of sub-potable wate...
Summary
 Technical options reduce inefficiencies
 Increase best possible use of water
 Have measurable and quantifiable...
3.4.2 Financial options
for WDM
 Water as a public and economic
good
 Market forces in water supply
 Types of financial...
3.4.2 Financial options
for WDM
 Water historically treated as a public good
 No exclusion: use of one does not
adversel...
3.4.2 Financial options
for WDM
Four issues in market forces and water:
 Competition among suppliers
(including self prov...
3.4.2 Financial options
for WDM
Types of financial incentives:
 Water subsidies
 Water tariffs
 Others
 Tax incentives...
3.4.2.1 Financial options for
WDM - water subsidies
 Subsidies are common, but decreasing
adoption
 MWSA perspective
 S...
 National perspective
 Rising water costs require rising
subsidies
 Subsidies are justified on social
grounds (affordab...
 Environmental perspective
 Encourage water wastage
 Examples
 A leakage in the yard of 20
m3/month would cost the end...
 Examples:
 Botswana (Selebi-Phikwe): A
household with an income of P3
000/month that does not receive a
water subsidy w...
 Common foundations for tariffs
 Average historical supply costs
 Replacement costs
 Marginal supply costs
 Marginal ...
3.4.2.2 Financial options for WDM -
banded water tariff example
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
0 10 20 30 40 50 60 70...
3.4.2.2 Financial options for WDM -
variations in water tariffs
 Tariff variations are found among
 User groups
 Areas
...
3.4.2.2 Financial options for WDM -
impacts of water tariffs as a WDM tool
 MWSA
 Direct: water consumption and
total re...
3.4.2.2 Financial options for WDM -
impact of 10 % tariff increase
Original consumption: 100 m3; Price $1/m3
Water
consump...
Activity
Update and correct pricing
details for your country and
MWSA
Discuss and determine
required changes in pricing
...
3.4.2.2 Financial options for WDM -
effect of rising tariffs on consumption
Consum ption
Tariff
level
Q 1 Q 2 Q 3
T
Increa...
3.4.2 Financial options for WDM -
price elasticity of demand
According to HR Wallingford Handbook (2003)
 The elasticity ...
3.4.2 Remarks
 The effectiveness of tariffs for
WDM depend on price elasticity
 Subsidies lower tariffs and may
discoura...
3.4.3 Policies, legislation and
regulations
IWRM and WDM policies
Local plans and bylaws
Regional/town planning
Munici...
3.4.3 Policies, legislation and
regulations - policy reforms and WDM
Issues Implications for WDM
Formal policies do not ex...
3.4.3 Policies, legislation and
regulations - local plans, bylaws and
development
 Bylaws for e.g. gardening, swimming
po...
3.4.4 Consumer service and public
awareness
 3.4.4.1 WDM and participation of
end users
 3.4.4.2 Service related measures
3.4.4 Consumer service and public
awareness - participation of end users
 WDM is 50 % social engineering?
 It is about b...
3.4.4 Consumer service and public
awareness - participation of end users
Example
 Recent work on price elasticity in Gabo...
3.4.4 Consumer service and public
awareness - innovative and informative
water billing
 Water bills are the most importan...
3.4.4 Consumer service and public awareness
- innovative and informative water billing,
EDAMs and Hermanus example
3.4.4 Consumer service and public
awareness - campaigns
 Target specific audiences
 Boost public support
 Continuous
 ...
3.4.4 Consumer service and public
awareness - campaigns
 These may include
 Pamphlets
 Stickers, T-shirts, caps
 Spons...
3.4.4 Consumer service and public
awareness – campaigns: examples of
material
3.4.5 Education and
training in WDM
 Target specific audiences
 Might not necessarily be on WDM but
containing relevant ...
3.4.5 Education and
training in WDM
 Some remarks
 Training and education can be costly
 Public and private funding
 P...
Water Demand Management
UNIT 4
WDM plan
Course map
U nit 1: W DM in context
U nit 2: M unicipal W DM
U nit 3: W D M options and benefits
Unit 4: W DM plan
Outcomes
By the end of this unit, you should be able to
 complete a WDM plan for your own MWSA
by developing IWRM and WDM...
WDM plan for the MWSA
Topics
 Developing a WDM plan
 Implementation
 Monitoring and evaluation
4.1 Developing the plan
Past experiences
 Best WDM successes are obtained
when MWSAs work with local
authorities, BUT
 H...
Steps in plan preparation
Undertake IWRM analysis of water
resources and MWSA
Identify critical water issues,
constraint...
Develop WDM options
Evaluate benefits and costs
Select and prioritise options
Identify funding needs and
sources
Deve...
Step 1: IWRM analysis
Review critical supply and demand
factors
Undertake dynamic analysis (past-
present-future) includ...
Preparing an
implementation plan
Key issues
Stakeholder institutions in water chain
Changes in and sustainability of fresh
water sources and return flows...
Future perspectives
Participation of end-users in water
planning
Water as an economic good
Gender aspects of water pla...
Step 2: Issues, opportunities
and constraints
Review
 National, regional and local policies
 Programmes, regulations and...
Establish
 Demand trends
 Water management options
 Costs and benefits of options
 Regional aspects
Step 2: Issues, op...
Identify
 WDM reasons
 Economic
 Social
 Environmental
 WDM niche in IWRM
 WDM constraints and possible
solutions
St...
Step 3: IWRM options
 Identify supply augmentation
options and costs/benefits
 Identify options to increase non-
traditi...
Activity
 Review the Johannesburg Water,
Water Conservation and Demand
Management Strategy compiled by
WRP (2001) under t...
Step 4: IWRM and WDM
objectives and targets
Example of an overall WDM objective
 to increase the efficiency of water
cons...
Examples of WDM targets
 Reduce UAL by 50 % in a five-year
period
 Reduce water consumption of high-
income groups by 30...
Step 5: Develop WDM
options
 Select an evaluation method (EIA,
CBA or MCA)
 Identify promising WDM
interventions
 Evalu...
Options include
 Technical measures
 Financial and economic
measures
 Legislative/policy measures
 Education, public a...
Step 6: Select and
prioritise options
 Discuss results of Step 5 with all
stakeholders
 Formulate broadly supported plan...
Step 7: Identify funding
 Estimate WDM implementation costs
 Identify possible sources of funding,
including
 WDM surch...
Step 8: Develop WDM
plan
Include
 Problems to be addressed
 Objectives and targets
 Interventions
 Institutional requi...
Cover
 water resource planning
 water distribution systems
 end-users
 return flows
Step 8: Develop WDM
plan
Outline
 progressive service delivery
arrangements
 specified standards
 a tariff model
 all current water-care works ...
Propose
 real UAL and set revised WDM
targets
 response measures if targets are
not met
 funding mechanisms
 standard ...
4.2 Implementing the
WDM plan
The implementation of the plan is
facilitated by
 an enabling instrument environment
 an e...
 Success depends on the presence
of a credible WDM champion
 Begin with a pilot scheme or
demonstration area that shows
...
4.3 Assessing the results
of the plan
Assessing success or failure requires
monitoring and evaluation
 Monitoring is cont...
Examples of performance indicators
within MWSAs
 Trends in leakage reduction
 Response times to leak reports
 Trend in ...
Examples of performance indicators
within MWSAs
 Total water consumption
 Metered water consumption
 Unaccounted For Wa...
Examples of performance indicators within
MWSAs
 Staff per '000’ population served
 Continuity of and complaints about
s...
Examples of performance indicators for
end users
 Value added per productive water unit
 Per capita domestic water use
...
 Develop performance indicators
taking local conditions into account
 Collect data and information before
and during imp...
KPIs: Figure 2: UAW for Mogale City
4.3 Assessing the results
of the plan
Figure 3: Water purchases and sales
4.3 Assessing the results
of the plan
 More than one KPI can be
developed from the same data
 Producing both is beneficial to
providing a better understanding...
Progress can be difficult to assess
 Figures may vary due to
 pipe bursts or valve failures
 changes in actual consumpt...
 Short term targets may not be
attained due to fluctuating
variables
 Medium to long term commitment
will result in meas...
WDM M&E programmes help
institutions to
 Become more innovative, flexible,
adaptive and responsive
 Be accountable to be...
WDM M&E programmes help institutions to
 Communicate problems and solutions
 Improve planning
 Take corrective action
...
 Each MWSA will benefit from an
information management system
to integrate monitoring, evaluation
and maintenance of prog...
Chapter 8  water demand management.ppt
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Chapter 8 water demand management.ppt

  1. 1. Chapter 8 Water demand Management Prof. Dr. Ali El-Naqa Hashemite University June 2013
  2. 2. Course map U nit 1: W DM in context U nit 2: M unicipal W DM U nit 3: W D M options and benefits Unit 4: W DM plan
  3. 3. Outcomes By the end of this unit, you should be able to  give a brief overview of IWRM and contextualise it within global efficiency, sustainability and equity  outline foundational IWRM and WDM concepts in the Southern African context  examine various definitions and misconceptions of WDM and outline the motivation behind the approach
  4. 4. Outcomes By the end of this unit, you should be able to  give an overview of available WDM measures  detail the constraints and incentives affecting WDM  outline the WDM status in each SADC country  discuss the opportunities and goals concerning WDM within SADC
  5. 5. Outcomes By the end of this unit, you should be able to  formulate ideas for exploiting incentives and overcoming constraints to WDM implementation  understand the successes and challenges of some municipal case studies  begin to develop your own MWSA’s WDM implementation plan
  6. 6. Water Demand Management in context What are the links?  Sustainable development  Integrated Water Resources Management  Water resources (stress and scarcity)  Water demand  Millennium Development Goals
  7. 7. 1.1 Sustainable development There are over 60 definitions of sustainable development, including this landmark: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs - both for water supplies and for a healthy aquatic environment
  8. 8. 1.1 Sustainable development – triple bottom line
  9. 9. 1.1 Sustainable development – role of water
  10. 10. 1.2 Water and water resources – hydrological cycle
  11. 11. 1.2 Water and water resources – a rainbow of water  Green water  Blue water  White water  Grey water  Brown water  Yellow water  Black water
  12. 12. 1.2 Water and water resources – partitioning of rainfall
  13. 13. 1.2 Water and water resources – the diversion cycle
  14. 14. 1.2 Water and water resources – dams and development  WCD Report on Dams  The hydraulic mission (SADC)  Inter-basin transfer schemes
  15. 15. 1.2 Water and water resources – dam purpose in Southern Africa
  16. 16. 1.2 Water and water resources – shared rivers  Fifteen shared rivers  Downstream-upstream concerns  Hydro-politics
  17. 17. 1.2 Water and water resources – conflict prevention and resolution  SADC Protocol on shared rivers  Helsinki Rules on shared watercourses  Transparency (equity?)
  18. 18. 1.3 Integrated Water Resources Management (IWRM) IWRM is a process which promotes the co- ordinated development and management of water, land and related resources in order to maximise the resultant economic and social welfare in an equitable manner without compromising the sustainability of vital ecosystems
  19. 19. 1.3 IWRM: The Dublin Principles (1992) Freshwater is a finite, vulnerable and essential resource Its development and management should be based on a participatory approach, involving all relevant stakeholders Women play a central role in the provision, management and safeguarding of water Water is an economic good
  20. 20. 1.3 IWRM: Implications
  21. 21. 1.3 IWRM: Cross-cutting issues
  22. 22. 1.3 IWRM: Challenges
  23. 23. 1.3 Millennium Development Goals (MDGs)  Millennium Declaration 2000 (189 countries)  Goal 7: Environmental Sustainability  Target 10: Halve, by 2015, the population without sustainable access to safe drinking water and basic sanitation
  24. 24. 1.4 Water stress and scarcity
  25. 25. 1.4 Water stress and scarcity – Southern Africa  Definitions  Deception of numbers  Physical scarcity: < 1 700 m3 per person per year  Economic and social scarcity  No universal scale yet
  26. 26. 1.4 Water stress and scarcity – Southern Africa Scarcity versus stress 0% 10% 20% 30% 40% 50% 60% 70% 80% 100 1,000 10,000 100,000 Scarcity (w ater availability per capita, m 3 pa) Waterstress (extractionas%available) Angola, DRC, M ozam bique Zam bia Swaziland Botswana, Nam ibia RSA, Tanzania
  27. 27. 1.4 Water use versus GDP – Southern Africa W ater use per capita versus GD P per capita DRC M oz Tan z Za mb ia A n go la Le so tho Zim ba bwe S wa zilan d Na mibia B o tsw ana S o uth A frica M alawi - 50 1 00 1 50 2 00 2 50 3 00 3 50 - 2,0 00 4 ,00 0 6, 000 8 ,00 0 10, 00 0 G DP pe r ca pi ta a t P P P (20 00 ) Waterusepercapita (excludingirrigation)
  28. 28. 1.5 Water demands on MWSAs  Categories  Domestic  Non-domestic  Losses  Variability due to  Average and peak flows  Dry and wet season  Diurnal flow  Drought and non-drought periods
  29. 29. 1.5 Water demands on MWSAs – factors affecting demand  Weather  Population  Service level  Health and epidemiology  Political developments  Economic growth and decline
  30. 30. 1.6 Water Demand Management 1.6.1 Myths and misconceptions 1.6.2.1 Definitions 1.6.2.2 Interpretations  Narrow  Broader 1.6.2.3 Components 1.6.3 Motivating factors
  31. 31. 1.6 Water Demand Management 1.6.4 Measures and interventions 1.6.5 Constraints and incentives 1.6.6 SADC status 1.6.7 The pursuit of WDM  Regional  National  Local
  32. 32. 1.6.1 Myths and misconceptions WDM is NOT  A luxury that poor countries can ill afford  A fashion that will pass  A hobby of environmentalists  A government conspiracy to make people’s lives more difficult
  33. 33. 1.6.1 Myths and misconceptions WDM is NOT  A goal in its own right  Too vague to implement  An approach which does not show tangible benefits  Nothing more than tariff increases
  34. 34. 1.6.2.1 Definitions Water Demand Management:  Aims to increase water efficiency, reducing or postponing the need for more dams and boreholes (Macy, 1999; Arntzen, 2003)  Seeks to maximise the usage of water by curbing inessential use through price and non-price measures (SADC-WSCU)
  35. 35. 1.6.2.1 Definitions Water Demand Management:  Seeks to influence water demand in order to achieve consumption levels that are equitable, efficient and sustainable  Is a management approach that aims to conserve water by controlling demand
  36. 36. 1.6.2.2 Interpretations  Narrow: curbing water demand and consumption  Examples:  Efficient irrigation  Increased water allocation efficiency
  37. 37. 1.6.2.2 Interpretations  Broader: influencing water demand and using non- traditional water sources to delay or put off new dams and well fields  Examples:  Rainwater harvesting and desalination  Re-use of wastewater
  38. 38. 1.6.2.3 Components  Enabling policy environment  Right institutional set-up  Right measures and implementation
  39. 39. 1.6.3 Motivating factors  Environment:  Drought and water scarcity  Adverse environmental impacts of dams and well fields  Economic:  Lower costs, incl. O & M costs  Water savings  Enhanced competitiveness of industries
  40. 40. 1.6.3 Motivating factors  Equity:  Provide water to more people  Better affordability  Empowerment and growth:  Innovation and technology development  Greater competitiveness  Use of indigenous knowledge
  41. 41. Figure 6: WDM target groups and measures
  42. 42. 1.6.4 Measures and interventions  Measures target four different stages of the water supply chain:  Water resource management  Water distribution methods  Consumer demand management  Return flow management
  43. 43. 1.6.4 Measures and interventions  Technical measures  Planning processes  Regulatory measures  Economic incentives and restraints  Consultative processes
  44. 44. Water cycle stages Technical WDM measures WDM in planning WDM in regula-tions WDM in eco- nomics WDM in consul-tative processes Resource management functions Removal of invading alien species Wetland rehabilitation Dam storage optimisation (e.g. less evaporation) Optimisation of dam operation rules Artificial recharge and below surface water storage Water catchment management Protection from over-utilisation Managing land use Water quality management Drought contingencies Allocative efficiency Efficient green water management Best Available Technology (BAT) water practices as compulsory alternative in Environmental Impact Analysis (EIA)/Social Economic Analysis (SEA) procedure in water stressed areas Awareness and education, social marketing Table 6: Examples of the range of WDM measures
  45. 45. Water cycle stages Technical WDM measures WDM in planning WDM in regula-tions WDM in eco- nomics WDM in consul-tative processes Distribution and supply functions Infrastructure optimisation Parallel infrastructure for different water classes Loss minimisation Metering Pressure management Prepaid metres Common-property management of standpipes Town planning services Re-use and reclamation WDM in building standards Regulations, norms and guidelines Incentives Higher energy prices make pumping expensive. Volume-based effluent charges Education, awareness, training Covenants for monopolies of WSPs Table 6: Examples of the range of WDM measures
  46. 46. Water cycle stages Technical WDM measures WDM in planning WDM in regula-tions WDM in eco- nomics WDM in consul-tative processes End users Metering Different service levels Loss minimisation Retro-fitting existing systems Irrigation scheduling Crop choice Agricultural extension Auditing Minimising institutional use Domestic use guidelines and restrictions Guidelines for private and public sector Drought restrictions Proper level and structure of tariffs Amendment of water irrigation fees (too low and linked to area, not m3) Effective billing and pricing Product standards Differential tax rates (e.g. VAT) Higher energy tariffs make pumping expensive Volume-based effluent charges Tradable water rights Education, awareness, training Table 6: Examples of the range of WDM measures
  47. 47. Water cycle stages Technical WDM measures WDM in planning WDM in regula-tions WDM in eco- nomics WDM in consul-tative processes Return flow management Minimising infrastructure Minimising pollution Minimising losses Minimising infiltration Reclamation Infrastructure optimisation Minimising pollution Effluent standards Effluent charges Education, awareness, training Covenants for irrigation sector and public sector Table 6: Examples of the range of WDM measures
  48. 48. 1.6.5 Constraints and incentives Constraints:  Practical (funds, skills, capacity)  WDM benefits not understood  Supply bias among stakeholders  Inappropriate training of professionals  Uninformed or dissatisfied customers
  49. 49. 1.6.5 Constraints and incentives Constraints:  Lack of understanding of the need for WDM  Lack of planning and implementation skills  Lack of appropriate institutions and funding  Weak policy and legal instruments  Negative views towards WDM
  50. 50. Activity  What does WDM mean in your country and organisation?  What are the principal WDM constraints in your country and organisation?
  51. 51. 1.6.5 Constraints and incentives Incentives  Resource protection  Increased production  A sound basis for planning  Water loss reduction
  52. 52. Country Policy/legislation National strategy or programme Applied in urban sector Applied in agricultural sector Angola No/no No No Extremely limited Botswana Developing policy/ legislation to follow Reviewing draft strategy Escalating tariffs, leak detection Extremely limited Lesotho Yes/ in progress Adopted in 1999 Escalating tariffs only Extremely limited Malawi Revising policy/ legislation to follow National programme to follow new act Escalating tariffs only Extremely limited Namibia Yes/ in progress In development Comprehensive in Windhoek Limited Table 7: Status of WDM planning and implementation in SADC countries
  53. 53. Country Policy/legislation National strategy or programme Applied in urban sector Applied in agricultural sector Mozambique Yes/no No Escalating tariffs only Extremely limited Swaziland No/no Water Bill 1998 not yet enacted Water Authority to develop Master Plan Escalating tariffs only Extremely limited South Africa Yes/yes Nat. strategy in development Urban providers developing programme Full programme in Hermanus, limited in Durban, Johannesburg and Cape Town Limited application Zimbabwe Yes/no Strategy Policy developed Escalating tariffs only in Harare; new programme in Bulawayo Extremely limited Table 7: Status of WDM planning and implementation in SADC countries
  54. 54. Activity Look at the analysis of your country.  Do you agree with the synopsis made?  Can you provide some examples of the issues mentioned?  Would you like to add to or amend it? Use your comments and examples during the development of your WDM implementation plan.
  55. 55. 1.6.6 SADC WDM status SADC countries:  Are at different stages of WDM preparation and adoption  Have seldom integrated WDM into policies and legislation  Seldom have institutions charged with IWRM, WDM and shared watercourses  Have seldom started with systematic WDM implementation
  56. 56. 1.6.7 The pursuit of WDM Regionally  Shared or common sustainability commitments  Regional Strategy and Action Plan  Shared Water Source Protocol  Regional challenges and opportunities  International donors and non-governmental organisations
  57. 57. Activity  What do you think about these constraints and benefits?  Can you see opportunities for yourself or your organisation to support the regional development of WDM to meet these challenges?
  58. 58. 1.6.7 The pursuit of WDM Nationally General approaches that countries may need to adopt:  Identifying their own national WDM priority areas  Integrating the WDM approach and methods into policies and legislation  Hastening the preparation for and adoption of WDM measures
  59. 59. 1.6.7 The pursuit of WDM Nationally General approaches that countries may need to adopt:  Converting or extending the goals of existing institutions  Developing new bodies to act as watchdogs and promoters of IWRM and WDM
  60. 60. 1.6.7 The pursuit of WDM Nationally Countries can promote or legislate WDM measures aimed at user groups:  Water planners  Water providers  Productive end-users  Domestic users
  61. 61. Activity Discussion questions  What factors determine the progress made with WDM in countries?  Why is WDM not yet integrated in the policies and legislation of most countries?
  62. 62. Activity Discussion questions  Why are few or no institutions charged with IWRM and WDM, and what are the implications of this?  What opportunities for enhanced WDM do you consider possible and necessary?
  63. 63. 1.6.7 The pursuit of WDM Local level and municipal initiatives that showcase WDM in Southern Africa  Water conservation in Hermanus, South Africa  Water conservation in Windhoek, Namibia  WDM and irrigation in Southern Africa Can you think of other examples of WDM in practice in your country?
  64. 64. Activity  Think of examples of WDM in practice in your country  Collate the information you already know about your local examples  List of the information you need to source from colleagues or documents  Prepare your own case study example  Present it to your co-learners
  65. 65. Summary  WDM is an integral part of IWRM  WDM is not commonly applied in Southern Africa  WDM is in the interest of countries and their people
  66. 66. Summary  WDM is about efficiency, equity and sustainability  WDM needs to target at least four groups: water planners, water, suppliers, end-users and managers of return flows
  67. 67. Water Demand Management UNIT 2 Municipal WDM
  68. 68. Course map U nit 1: W DM in context U nit 2: M unicipal W DM U nit 3: W D M options and benefits Unit 4: W DM plan
  69. 69. Outcomes By the end of this unit, you should be able to  contextualise your MWSA within your country’s water supply chain  assess the WDM potential for your MWSA and relate this to IWRM and sustainable development
  70. 70. Outcomes By the end of this unit, you should be able to  map or list the nature of water resources, consumers, users and demand in your own context  list constraints and incentives affecting WDM implementation for MWSAs  relate these to your own country and situation
  71. 71. Outcomes By the end of this unit, you should be able to  formulate ideas for exploiting incentives and overcoming constraints to WDM implementation  understand the successes and challenges of some municipal case studies  begin to develop your own MWSA’s WDM implementation plan
  72. 72. 2.1 What is an MWSA? Typical MWSAs  Vary across Southern Africa  Are responsible for supply to domestic, industrial and commercial users  Face rapidly growing demand  Are under pressure to provide cheap reliable water to more users  Have a limited policy-making role
  73. 73. Typical MWSAs  Operate within a fixed enabling environment  Have limited control over water tariffs  Implement direct and indirect WDM actions  Cover one part of the water management cycle  Have significant impact on water management practices in their areas 2.1 What is an MWSA?
  74. 74. 2.2.1 WDM in the MWSA The main components of a WDM plan  An enabling policy environment for end- users and the MWSA  Appropriate institutional setup within the MWSA  Appropriate measures and implementation taken by the MWSA
  75. 75. MWSAs can make an impact on the enabling environment by  altering by-laws  introducing water conservation standards and norms  showcasing their own implementation of WDM as large water users 2.2.1 WDM in the MWSA
  76. 76. A WDM plan for an MWSA should  implement WDM measures for the MWSA  promote the implementation of WDM measures by end-users and bulk water suppliers  promote economic, environmental and social benefits  be developed within IWRM and ILCP contexts 2.2.1 WDM in the MWSA
  77. 77. 2.2.2 Sustainability in an MWSA context Economic sustainability: the efficiency of water service provision and the ability to continue to provide services in the future
  78. 78. Social sustainability: the ability to provide affordable water and to make sufficient water available for all residents and productive activities 2.2.2 Sustainability in an MWSA context
  79. 79. Environmental sustainability: the maintenance of economic growth and development within the limits set by ecology Environmental protection and economic development are complementary, not antagonistic 2.2.2 Sustainability in an MWSA context
  80. 80. Sustainable service provision: when water continues to be available for the design period of a scheme, programme or initiative, in the quantity and quality that was originally planned 2.2.2 Sustainability in an MWSA context
  81. 81.  Elements required for sustainability  proper design and planning  money for recurring expenses and repairs  consumer acceptance of the service  adequate supply from the source  sound construction  Sustainability is a key objective of WDM 2.2.2 Sustainability in an MWSA context
  82. 82. 2.2.3 Municipal water sources  Fresh surface water  Fresh groundwater  Re-use of return flows Quantity, quality, and reliability are all extremely important
  83. 83. 2.3.1 The municipal water supply chain  Water resource management  Water distribution management  End-user efficiency and demand management  Return flow management WDM measures need to be targeted at specific stages in the water supply and management chain
  84. 84.  The South African DWAF has illustrated possible WDM measures at each management level (Figure 1)  The line between Water Conservation (WC) and WDM becomes thin  Best results are achieved when both are pursued simultaneously.  WDM is broader than WC: all WC measures fall within WDM 2.3.1 The municipal water supply chain
  85. 85. 2.3.2 MWSA clients  Bulk suppliers of raw or treated water  government  parastatals  autonomous suppliers  Water management institutions
  86. 86. MWSA clients (Cont.)  Regulators  End-users  domestic users  industries  private and public service sectors
  87. 87. Activity  What institutions and organisations does your MWSA deal with?  From whom do you source water?  To whom do you supply water?  Which Acts and regulations affect you?  Which departments affect or control your MWSA?  Which sectors of the economy rely on your MWSA for water supply and/or management?  Use this information for your WDM plan
  88. 88. 2.3.3 Accountability of MWSAs  WDM in municipal areas is a shared responsibility of all stakeholders  In most countries,  MWSA officials are accountable to their councillors  Councillors are accountable to the electorate  This may become obscured with privatised and commercialised utilities
  89. 89.  SA DWAF WDM principles  Water institutions should supply water efficiently and effectively, minimising water losses and promoting WDM/WC among end-users  Consumers should not waste water and should use it efficiently  WDM and WC are integral parts of the water resources and water service planning process 2.3.3 Accountability of MWSAs
  90. 90. Activity  SA WDM objectives  Water resource management  Water distribution management  End-user efficiency and demand  Return flow management  Are they relevant to your municipal water supply and management chain?  Are there others you could add?
  91. 91. 2.4 Integrated Least Cost Planning ILCP is  a methodology that determines the effectiveness of infrastructure augmentation decisions  a measure of whether or not the right decision is being made
  92. 92.  The aim: to keep water supply costs to end-users as low as possible by considering the effectiveness of the entire water chain  The challenge: to minimise the cost to the end-user as though each party in the water chain were integrated into one body 2.4 Integrated Least Cost Planning
  93. 93. Case study: Rand water’s ILCP model Rand Water supplies water to  13 municipalities  3 metropolitan areas  10 million people  an area of 18 000 km2
  94. 94. Figure 2: Rand Water area of supply within South Africa Case study: Rand water’s ILCP model
  95. 95. Case study: Rand water’s ILCP model
  96. 96.  Causes of premature augmentation of infrastructure  Demand projections  Difference in the start point and growth rates of projections Case study: Rand water’s ILCP model
  97. 97. Figure 4: Costs due to difference in start point and growth rate projections 1 2 3 4 5 6 7 8 Relativecost 0 5 1 0 1 5 2 0 T im e ( y e a r s ) E s c a la t io nI n t e r e s t W a s t e d c o s t D e c i s i o n t o a u g m e n t m a d e h e r e E a r l i e r t h a n n e c e s s a r y a u g m e n t a t i o n Case study: Rand water’s ILCP model
  98. 98.  Excessive water loss  Inefficient use of water  Loss  Conclusions Case study: Rand water’s ILCP model
  99. 99. Institution Water supply costs ILCP issues Bulk water supplier $ 0.75/m3 Cheapest source of supply? MWSA $ 0.50/m3 LC treatment and distribution mechanism Total water costs $ 1.25/m3 Is it possible to reduce the total water costs by improving on any stage in the water chain? 2.4 Integrated Least Cost Planning
  100. 100.  Ensures that social and environmental concerns are adequately taken care of  Requires cross-institutional planning and co-operation 2.4 Integrated Least Cost Planning
  101. 101. 2.5 WDM reasons  WDM is a tool, not a goal  Social, financial and environmental reasons  Specific reasons vary from case to case
  102. 102. 2.5 WDM reasons: direct incentives  Escalating costs of water augmentation schemes  Reliance on non-renewable water resources  Reliance on shared water sources  High water leakages  Inefficiencies in end-use
  103. 103. 2.5.1 Social reasons  Saved water serves those without previous access  Improved service delivery  Lead by example  Good customer service leads to rise in payment levels
  104. 104.  Raised awareness among end-users  Keeps rates affordable  Safeguards water resources for current growth and future generations 2.5.1 Social reasons
  105. 105. 2.5.2 Financial reasons  Flexible and incremental implementation spreads costs over time  Lower customer charges  Benefit/cost ratio may exceed 10:1  Reduces need for water purification and treatment
  106. 106.  Reduces expenditure on capital- intensive augmentation schemes  Improved affordability increases customer base  Reduces UAL and loss of revenues 2.5.2 Financial reasons
  107. 107.  Ring-fenced revenue retained within departments for  Maintenance  Service delivery  Expansion  Better water resource management  Increases productive water use  Consumers benefit from reduced bills 2.5.2 Financial reasons
  108. 108. 2.5.3 Environmental reasons  Water for ecological requirements  Promotes sustainable use through water efficient practice  Reduces pollution through effluent- quality tariffs  Increased resource use efficiency
  109. 109. Summary  WDM serves not only environmental purposes  WDM has sound economic and social reasons
  110. 110. 2.6 WDM constraints Constraints  defer or prevent the adoption or implementation of WDM measures  are well documented  are powerful  vary between authors and studies
  111. 111. 2.6.1 Understanding constraints Organise your thinking about constraints  Identify  Structure  Analyse spatially  international  national  district  local
  112. 112.  Analyse by stakeholder  Water planners/managers  Bulk suppliers  MWSAs  End-users  Resolve or mitigate 2.6.1 Understanding constraints
  113. 113. 2.6.1.1 Structuring constraints  Information and awareness  WDM capacity and infrastructure  Habits and attitudes  Policy and regulation
  114. 114.  Costs and benefits  Uncertainties  Macroeconomic conditions  Water scarcity: extent and nature 2.6.1.1 Structuring constraints
  115. 115. Information and awareness Lack of awareness about  water scarcity  WDM contents  institutional roles and responsibilities
  116. 116. Information and awareness Trends  There is confusion and uncertainty about information  There is a lack of awareness about water scarcity  Awareness about WDM is gradually increasing
  117. 117. Human and financial resources Lack of  human resources and skills  WDM champions  financial resources  specific WDM funding  co-ordination through the water supply and management chain  technical know-how
  118. 118. Human and financial resources Trends  HR and skills are most problematic at local level  WDM champions are emerging  Funding of WDM remains a problem  Co-ordination amongst stakeholders in water supply chain is improving slowly
  119. 119. Infrastructure Constraints  Lack of metering  Old infrastructure  Poor maintenance Trends  Vary between countries
  120. 120. Habits and attitudes Constraints  Resistance to change  Traditional supply bias and economic interest in supply interventions  Lack of political will  WDM only for droughts? Trends  Most constraints are gradually easing
  121. 121. Policy and legislation Constraints  WDM only recently incorporated into policies and legislation  Low priority for WDM Trends  Large differences between countries  Gradual improvement in policy adoption and legislation
  122. 122. Costs and benefits Constraints  Subsidies discourage WDM  Costs precede benefits  O & M costs are often neglected in water planning  No cost-benefit assessment of water management options
  123. 123. Costs and benefits Trends  Water tariff subsidies are being reduced as a function of applying WDM
  124. 124. Uncertainties Constraints  WDM results less tangible than water augmentation  Full implications of WDM uncertain due to limited experience
  125. 125. Uncertainties Trends  The availability of case studies is  reducing uncertainty over WDM results  improving the predictability of WDM implications
  126. 126. Macroeconomic conditions Constraints  Shortage of WDM funding  Style of governance  Degree of stability Trends  Vary greatly across the region
  127. 127. Water scarcity Constraints  Degree and nature of water scarcity Trends  Varies greatly across the region and may not require WDM intervention
  128. 128. Overview  Wide range of constraints  Substantial differences among countries  Most constraints are easing  Water-scarce countries with relatively good governance have the most comprehensive WDM approach  Constraints change over time  WDM strategies must work under different macroeconomic conditions
  129. 129. Activity In groups, examine the list of constraints in Table 10  Discuss what trends have taken place over the last ten years in your country  Review the solutions given for overcoming the constraints  Discuss the greater participation of end- users, particularly women, in overcoming the constraints
  130. 130. Activity  How could traditional knowledge and water management practices be used to overcome constraints?  For each constraint, formulate a specific appropriate strategy for your situation  Add any new constraints your group has identified and rank them for your country
  131. 131. 2.7.3 Case study: City of Bulawayo  Examine the drivers  WDM plan  WDM approach  Constraints  Achievements  Lessons learnt
  132. 132.  Average rainfall 500 mm/a  Pop. = 1 Million  Volume of water supplied = 120 000 m3/day  Level of service = 99% full reticulation  106 000 connections  90% are metered  Distribution network = 2 100 km 2.7.3 Case study: City of Bulawayo
  133. 133. City of Bulawayo - drivers for WDM  Water supply constraints  Recurrent droughts  Water scarcity  Water sector reforms
  134. 134. City of Bulawayo - alternatives Project Yield (106 m3/a) NPV (US$/m3) Gwayi-Shangani dam 141 0.55 Lower Tuli dam 65 1.24 Zambezi pipeline 57 2.23 Glass Block dam 28 0.77 Mtshabezi pipeline 8 1.17 Umguza well-field 4 0.22
  135. 135. City of Bulawayo - WDM alternative  In the short term (< 5 years)  WDM at various levels  Reducing losses from 23% to 15%  Cost US$0.04/m3  Cheaper than any new alternative sources
  136. 136. City of Bulawayo - water loss reduction plan  Establishing economic levels for loss reduction  Pilot studies  Utility mapping  Network modelling  Analysis of cost data
  137. 137. City of Bulawayo - reduction of UAL
  138. 138. City of Bulawayo - other WDM activities  Water conservation campaign and public education  Reuse and recycling of wastewater  Pricing of water to reflect scarcity (highest block US$0.25/m3)  Setting up a management information system  Metering  Review of the implications of sector reforms
  139. 139. City of Bulawayo - lessons  WDM implementation is usually triggered by severe water shortages  WDM should be evaluated and appraised along with other alternative sources  WDM is about 50% social engineering  Wastewater recycling and reuse is an important WDM option  Water pricing to reflect scarcity with subsidies for the poor
  140. 140. City of Bulawayo - lessons  Computerised management information system is essential  Metering is indispensable (bulk, zones, district, consumer)  A holistic approach is important (WDM Plans, Strategies: Unit 4)  External expertise and financing may be required
  141. 141. Water Demand Management UNIT 3 WDM Options and benefits
  142. 142. Course map U nit 1: W DM in context U nit 2: M unicipal W DM U nit 3: W D M options and benefits Unit 4: W DM plan
  143. 143. Outcomes By the end of this unit, you should be able to  explain the costs and benefits of WDM, in financial and social contexts  understand various demand projection methods, and the advantages and disadvantages of each  analyse to what extent WDM measures have been incorporated into demand scenarios
  144. 144. Outcomes By the end of this unit, you should be able to  give a broad overview of various WDM measures  discuss each measure in detail and be able to select the most appropriate WDM measures for your MWSA  understand the need for measures to reduce UAL
  145. 145. Options and benefits  How does an MWSA decide on a way forward?  What means are available for evaluating WDM interventions against other strategies?  An MWSA’s decision to opt for a particular WDM strategy or measure won’t be a clear-cut choice
  146. 146. Options and benefits Our focus:  The costs and benefits of WDM  Ways of evaluating the future demand for water  Ways of deciding between the range of WDM options that are available
  147. 147. 3.1 Costs and benefits Consider the options for your MWSA  What are the costs and benefits?  What time horizon should be adopted?  Do organisations know about the WDM opportunities?  Which constraints need to be addressed before WDM is implemented? WDM should be implemented when the benefits exceed the costs
  148. 148. 3.1.1 Financial costs and benefits Your MWSA’s financial costs and revenues  determine economic performance  determine its degree of cost recovery  are key concerns
  149. 149. 3.1.1 Financial costs and benefits  Categorise financial costs by  source of supply  type of demand intervention (e.g. WDM)  Determine net financial benefits or costs of WDM interventions compared to others  Financial cost-benefit analysis is required as part of a broader multi- criteria analysis
  150. 150. 3.1.1 Financial costs and benefits FINANCIAL COSTS FINANCIAL BENEFITS Investment WDM costs Savings from postponement of large-scale investment schemes WDM operation and maintenance (O&M) costs Lower energy and wastewater treatment costs Lower revenues due to lower demand Decrease in non-revenue- generating UAL Lower revenues due to lower water price
  151. 151. 3.1.2 Social & environmental costs and benefits  Government must consider social and environmental costs  Government and MWSA costs may differ, e.g.  UAL may not be a MWSA cost but is always a social cost  Water subsidies provide MWSA revenue but are a transfer cost in society
  152. 152. 3.1.2 Social & environmental costs and benefits SOCIAL AND ENVIRONMENTAL COSTS SOCIAL AND ENVIRONMENTAL BENEFITS Investments of end-users and water service providers More affordable water WDM O&M costs Fairer distribution of water access Energy savings Decrease in waste flows and treatment costs Protection of the environment Budgetary savings Better resource use understanding and ethics More future options for water use
  153. 153. 3.1.2 Social & environmental costs and benefits Comparing financial, social and environmental costs and benefits may show  Financial and social benefits. The WDM measure should be implemented immediately without government support.  Social benefit only. The WDM measure needs to be implemented with government support or regulation.  No social or financial benefit. Such a measure would normally not be implemented.
  154. 154. Example: Standpipes and private connections  compares communal standpipes dispensing free water with the provision of private paid connections  examines social cost-benefit issues of equity, sustainability and water use efficiency  attempts to provide objective solutions that provide optimal social benefits at least cost
  155. 155. 3.2 Demand projections and analysis Projecting future water demand is part of regular planning activities  THEN: demand projections were to ensure that a given quantity and quality of water was available over a specified period  NOW:demand projections become integral components of the decision-making cycle
  156. 156. 3.2 Demand projections and analysis Analyse  past/present water consumption  how this consumption might develop in future  when existing sources of supply may be exhausted  potential of WDM to reduce future demand
  157. 157. 3.2.1.1 Urban users Urban water users are  the largest sector of the customer base of many MWSAs  a mixture of domestic and productive users  described in Table 3
  158. 158. 3.2.1.1 Urban users Domestic users  Households using standpipes  Low-income households with own water connection  Medium-income households with own water connection  High-income households with own water connection
  159. 159. 3.2.2 Demand monitoring and projections Key determinants of domestic water consumption  Household income and size  Living conditions  Household plot size
  160. 160. 3.2.2 Demand monitoring and projections Key determinants of productive uses  Type of product and production process  Expected output  Employment/manpower levels  Technology employed
  161. 161. 3.2.2 Demand monitoring and projections - forecasting Different methods  Different levels of accuracy  Require differing logistical inputs These include  Judgemental analysis  Trend analysis  Component analysis  Regression analysis
  162. 162. 3.2.2 Demand monitoring and projections - forecasting Suggested criteria for selection of method include:  Consistency and transparency  Quality of the method  Incorporation and explanation of historical trends  Inclusion of historically neglected factors  Empirical validation  Acceptance of method
  163. 163. 3.2.2 Demand monitoring and projections - forecasting Trend analysis results: Figure 1 example y = 0.0731x 2 - 288.72x + 285329 R 2 = 0.995 y = 2.0249x - 3961.3 R 2 = 0.959 y = 3x10 -24 e 0.0293x R 2 = 0.984 0 50 100 150 200 250 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 Year Wateruse(millionm 3 ) Second degree polynom ial fit Exponential fit Linear regression Historical water use data
  164. 164. 3.2.3 Demand monitoring and projections - uncertainties Any forecasting method is prone to uncertainty e.g.  Droughts/floods  Changes in macroeconomic conditions  Changes in health conditions (HIV/AIDS)  Changes in settlement patterns and migration  Projected impacts of new policies and programmes
  165. 165. 3.2.3 Demand monitoring and projections - uncertainties Steps to be taken  Identify and incorporate into the forecasting process  Develop scenarios based on major uncertainties  Perform sensitivity analysis (e.g. Low, Medium and High population growth)  Validate forecasts or adjust them over time  Remember: ignorance of uncertainties can lead to major inaccuracies
  166. 166. 3.2.3 Demand monitoring and projections - scenarios 2000 2010 2020 2030 Wateruse Year Low population growth scenario M edium population growth scenario High growth population growth scenario
  167. 167. 3.2.3 Demand monitoring & projections - forecasting in Masvingo 0 2 4 6 8 10 12 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 Year Totalwaterproduced(millionm 3 /year) Recorded water produced pre-1991 Exponential forecast based on fitting to pre-1991 data Recorded water produced post-1991 y = 2.475x10 -48 e 0.055932x r = 0.939
  168. 168. 3.2.3 Demand monitoring and projections - impacts on timing FACTOR TIMING IMPACT Demand projections uncertain and sometimes wrong Variable depending on demand projections Ignoring HIV/AIDS in water planning and management With a projected population growth of only 2.8 % p.a., ignoring HIV/AIDS may lead to infrastructure being available (and therefore underutilised) up to nine years before it is needed. Excessive water losses If the actual loss rate (27 %) could be reduced to a standard of 19 %, augmentation could be delayed by five years Inefficient water use Improving efficiency, through retrofitting and education, by around 25 % would defer augmentation schemes by eight years and save R1.1 billion
  169. 169. 3.2.3 Demand monitoring and projections - impacts on timing -8 -4 0 4 8 12 16 20 24 Watersupply/demand(volume) Tim e (years) Four year delay in construction of infrastructure owing to water conservation m easures Original water supply Increased supply Norm al dem and W ater dem and with water conservation m easures im plem ented
  170. 170. 3.2.3 Demand monitoring and projections - impacts on timing Important message  Use of demand forecasting and monitoring is of paramount importance to MWSAs  WDM measures have the potential to significantly defer augmentation schemes  Deferred schemes have other benefits like  Less wastewater is produced and therefore less treatment is needed  Less energy is used  Reduced alteration of natural water flow patterns
  171. 171. Activity  Can you think of any examples where dams or well fields have been prematurely built?  Which ones?  Why were they built, and what have the implications been?
  172. 172. 3.3 Selecting the right WDM intervention  Broad spectrum of WDM interventions  Careful and consistent application  Maximise benefits  Phased approach to WDM  WDM plan and strategy
  173. 173. 3.3.1 In selecting the right WDM intervention - remember  Complementary and integrated measures are preferable  Awareness raising, training and campaigns are vital  Evaluation of WDM interventions  Choice of intervention must be informed by sustainability indicators and criteria
  174. 174. 3.3.2 Selecting the right WDM intervention - selection tools, methods, rules Tools  Benefit-Cost Analysis (BCA)  Economic efficiency evaluation  Common indicators are the NPV, B/C ratio  Decision-making is based on WDM measures with positive NPVs
  175. 175. Tools  Multi-Criteria Analysis (MCA)  Broader  Identification of positive and negative impacts  Quantification and ranking of impacts  Identification of selection criteria  Allocation of weights to criteria  Ranking of performance or scoring  Decision-making based on best performing measure 3.3.2 Selecting the right WDM intervention - selection tools, methods, rules
  176. 176. 3.3.2.2 Selecting the right WDM intervention - US EPA method Recommended criteria  Economic  Social  Environmental  Contextual
  177. 177. 3.3.2.3 Selecting the right WDM intervention - DWAF RSA method Integrated Least Cost Planning criteria:  Social impacts  Economic impacts  Institutional impacts  Technical impacts  Environmental impacts  Risks
  178. 178. 3.3.2.4 Selecting the right WDM intervention - pragmatism The 80:20 Rule  Picking the low hanging fruit  WDM interventions that yield 80 % of the desired results e.g. water savings, with 20 % of the investment  Largest results with lowest effort, capacity, burden  Tangible immediate results (Watch out!)
  179. 179. 3.4 WDM measures/options  3.4.1 Technical options  3.4.2 Financial options  3.4.3 Policies, legislation and regulations  3.4.4 Consumer service and public awareness
  180. 180. 3.4.1 WDM measures/options - technical measures  Among the most tangible efforts to reduce inefficiencies  Easily appreciated by engineers and planners and understood by consumers  Results generally measurable and quantifiable (water and money saved)
  181. 181. Aim to reduce UAL or UAW  Water losses due to leaks  Wastage among end-users  Illegal abstractions  UAL represents loss of revenue  Technical measures are not all about fixing leaking taps (Watch out!) 3.4.1 WDM measures/options - technical measures
  182. 182. 3.4.1 WDM measures/options - technical measures: levels of UAL City % metered connections UAL (%) Luanda, Angola 40 60 Gaborone, Botswana 100 20 Kinshasa, DRC 76 47 Maseru, Lesotho 97 32 Port Louis, Mauritius 100 45 Maputo, Mozambique 100 34 Windhoek, Namibia 100 11 Victoria, Seychelles 100 26 Mbabane, Swaziland 100 32 Dar es Salaam, Tanzania 10 60
  183. 183. Leak detection and repair  Passive and active leakage management  Pressure management  Metering all uses  Demarcation of supply area into zones and districts  Supply through one point?  Measuring Minimum Night Flows (MNF) 3.4.1 WDM measures/options - technical measures
  184. 184. Water audits  Water balances at zone boundaries  Water reaching end user  For inexplicable high losses, conduct MNF exercise  Supply through one point?  Measuring MNF 3.4.1 WDM measures/options - technical measures
  185. 185. Installation and maintenance of water meters  To promote effective billing  An essential requirement for water resources management  Provides an idea of the potential for WDM  Benefit-Cost analysis of metering is essential 3.4.1 WDM measures/options - technical measures
  186. 186. Water supply system maintenance  Anticipating failures  Predicting failures  Preventing failures  Detecting and correcting failures  Requires excellent record keeping, preferably an Engineering Infrastructure Management System (EIMS) 3.4.1 WDM measures/options - technical measures
  187. 187. Features of most EIMSs:  Water loss and meter management  Customer service requests  Notification of pipe leaks  Hydraulic pressure and hydrant database  Work scheduling and maintenance  Asset register and stock inventor  Time keeping and cost accounting  NOT All EIMSs contribute to WDM (Watch out!) 3.4.1 WDM measures/options - technical measures
  188. 188. Types of maintenance:  Routine preventative maintenance  Corrective preventative maintenance  Breakdown maintenance  Project maintenance 3.4.1 WDM measures/options - technical measures
  189. 189. Pressure management  Reduces water loss  Prolongs life span of pipe work  Recommended in areas with high losses  Recommendation: 300 to 600 kPa, 150 kPa in low-cost areas  Consider fire fighting and peak demands 3.4.1 WDM measures/options - technical measures
  190. 190. Objective  Reduction of excessive pressure Situation  70 000 stands  Pressure 600 to 800 kPa  Very high losses  80 % sewage return flow 3.4.1 WDM measures/options - technical measures: Khayelitsha
  191. 191. Action  Installation of two pressure control points Result  Flow reduction from 2 500 to 1 800 m3/hour  42 % water savings  27 Million Rands per year at a cost of 2.5 Million Rands 3.4.1 WDM measures/options - technical measures: Khayelitsha
  192. 192. Activity  Do you know the water pressure used by your MWSA?  What would be the water-saving potential of pressure reduction?  Record you answers for later use in your WDM implementation plan (Unit 4).
  193. 193. 3.4.1.6 End user appliances, faucets and retrofitting devices Water saving devices  Low volume urinals  Waterless urinals and toilets  Low volume shower heads  Self-closing public taps  Size of toilet cisterns  Size of bath tubs Water and energy efficient appliances  Washing machines  Dish washers  Water boilers
  194. 194. 3.4.1.6 End user appliances, faucets and retrofitting devices Efficient garden irrigation systems  Micro sprinklers Wise gardening (Xeriscape)  Indigenous versus exotic plants  Timing of garden irrigation
  195. 195. 3.4.1.6 End user appliances, faucets and retrofitting devices Meter appliances  Prepayment meters Use of sub-potable water  Reuse of grey water  Rain water harvesting
  196. 196. Summary  Technical options reduce inefficiencies  Increase best possible use of water  Have measurable and quantifiable results  BUT  MWSAs need to inform end users  Standards Associations need to regulate fittings and fixtures  Manufacturers and designers of fittings and fixtures must be aware of WDM
  197. 197. 3.4.2 Financial options for WDM  Water as a public and economic good  Market forces in water supply  Types of financial incentives  Water subsidies  Water pricing or tariffs
  198. 198. 3.4.2 Financial options for WDM  Water historically treated as a public good  No exclusion: use of one does not adversely affect others  Paid from general tax revenues  Economic good  Proper pricing based on true costs (e.g. MOC)  What about social aspects?  Problems: affordability and access to all  Solutions: cross subsidisation, free lifeline entitlement
  199. 199. 3.4.2 Financial options for WDM Four issues in market forces and water:  Competition among suppliers (including self providers)  Demand allocation  Price determination  Privatisation of suppliers Water markets?
  200. 200. 3.4.2 Financial options for WDM Types of financial incentives:  Water subsidies  Water tariffs  Others  Tax incentives  Property rights  Effluent charges  Special surcharges
  201. 201. 3.4.2.1 Financial options for WDM - water subsidies  Subsidies are common, but decreasing adoption  MWSA perspective  Subsidies are revenues and permit lower water tariffs  Decrease in subsidies forces MWSA to decrease revenues from end users
  202. 202.  National perspective  Rising water costs require rising subsidies  Subsidies are justified on social grounds (affordability and access)  Growing opportunity costs of water subsidies (e.g. health care) 3.4.2.1 Financial options for WDM - water subsidies
  203. 203.  Environmental perspective  Encourage water wastage  Examples  A leakage in the yard of 20 m3/month would cost the end-user nothing if the water is free, $20 if the water costs $1/m3 but $100 if the water costs $5/m3 3.4.2.1 Financial options for WDM - water subsidies
  204. 204.  Examples:  Botswana (Selebi-Phikwe): A household with an income of P3 000/month that does not receive a water subsidy will consume 22 m3/month. However, water consumption for a household with the same income and access to a water subsidy will increase by 41 m3 to 63 m3/month. 3.4.2.1 Financial options for WDM - water subsidies
  205. 205.  Common foundations for tariffs  Average historical supply costs  Replacement costs  Marginal supply costs  Marginal opportunity costs  Water tariff systems  Flat rate for certain period  Constant unit charge (e.g. 1000 Kwacha/m3)  Block or band unit system 3.4.2.1 Financial options for WDM - water tariffs
  206. 206. 3.4.2.2 Financial options for WDM - banded water tariff example 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 0 10 20 30 40 50 60 70 80 M onthly w ater consum ption per connection (m 3 /m onth) Tariff(US$/m 3 ) Herm anus (South Africa) W indhoek (Nam ibia) G aborone (Botswana)
  207. 207. 3.4.2.2 Financial options for WDM - variations in water tariffs  Tariff variations are found among  User groups  Areas  User bands  Issues  User groups: productive compared to consumptive use  Areas: how effective are water tariffs as a locational factor?  User bands: free water? Cross- subsidisation
  208. 208. 3.4.2.2 Financial options for WDM - impacts of water tariffs as a WDM tool  MWSA  Direct: water consumption and total revenues  Future: delayed capital investments  Key variable: price elasticity of demand for water or the slope of the demand curve
  209. 209. 3.4.2.2 Financial options for WDM - impact of 10 % tariff increase Original consumption: 100 m3; Price $1/m3 Water consumption Revenues/ costs Pr. El = -0.5 Price: $1.1/m3 Cons: 95 m3 Revenues: $ 104.5 Pr. El.= 1 Price: $1.1/m3 Cons. 110 m3 Revenues: $ 121 Pr. El. = -2.0 Price: $1.1/m3 Cons. 80 m3 Revenues $ 88
  210. 210. Activity Update and correct pricing details for your country and MWSA Discuss and determine required changes in pricing mechanisms for your MWSA
  211. 211. 3.4.2.2 Financial options for WDM - effect of rising tariffs on consumption Consum ption Tariff level Q 1 Q 2 Q 3 T Increasing level of service H ouse connection Y ard connection Com m unalstandpipes
  212. 212. 3.4.2 Financial options for WDM - price elasticity of demand According to HR Wallingford Handbook (2003)  The elasticity of water consumption is generally low.  The price elasticity is greater when the price is higher.  In the household sector, the price elasticity varies between -0.15 and -0.70.  With respect to drinking water the demand- price relation will never be elastic (E <-1).  In the industrial sector, the majority of estimates are in the range of -0.45 to -1.37.
  213. 213. 3.4.2 Remarks  The effectiveness of tariffs for WDM depend on price elasticity  Subsidies lower tariffs and may discourage WDM  Other economic instruments need to be used (e.g. tax relief, property rights)
  214. 214. 3.4.3 Policies, legislation and regulations IWRM and WDM policies Local plans and bylaws Regional/town planning Municipal economic development
  215. 215. 3.4.3 Policies, legislation and regulations - policy reforms and WDM Issues Implications for WDM Formal policies do not exist in several Southern African countries (e.g. Angola, Botswana, DRC, Mauritius, Swaziland) · No enabling environment to stimulate WDM interventions · Flexibility and opportunities for champions to implement relevant local WDM interventions Legislation without policy can suffice to promote IWRM (e.g. Angola and Botswana) · WDM requires champions to take off · Seize opportunities for local IWRM/WDM plans Decentralisation of water management to catchment area level (Namibia, South Africa, Mozambique, Zimbabwe) · Opportunities to demonstrate finite water resources, and competition among end-users (allocative efficiency) · Seize opportunities for sub-national IWRM/WDM plans
  216. 216. 3.4.3 Policies, legislation and regulations - local plans, bylaws and development  Bylaws for e.g. gardening, swimming pools, alien species  Regulation against wastage  Drought measures  Plot size regulations  Regulations for industrial development in line with water conditions
  217. 217. 3.4.4 Consumer service and public awareness  3.4.4.1 WDM and participation of end users  3.4.4.2 Service related measures
  218. 218. 3.4.4 Consumer service and public awareness - participation of end users  WDM is 50 % social engineering?  It is about behavior change  Involvement of users from planning through to implementation stage  Effective communication with users is essential
  219. 219. 3.4.4 Consumer service and public awareness - participation of end users Example  Recent work on price elasticity in Gaborone showed that most domestic users have a general perception that water is expensive, but:  they do not know that the MWSAs have annually increased the tariffs by an average of 17 % over the last five years, and  they do not know how much they pay per month.  It is not surprising therefore that such users do not respond to price changes!
  220. 220. 3.4.4 Consumer service and public awareness - innovative and informative water billing  Water bills are the most important communication tool between an MWSA and the end-user  They need to be:  Accurate  Sent out timely and regularly  Need for innovation and sophistication  Presentation of information  Management Information System
  221. 221. 3.4.4 Consumer service and public awareness - innovative and informative water billing, EDAMs and Hermanus example
  222. 222. 3.4.4 Consumer service and public awareness - campaigns  Target specific audiences  Boost public support  Continuous  Require a sizable budget  These may include:  International/National Water Weeks  Competitions on water use efficiency  Articles or advertisements in newspapers or popular magazines  Water-wise posters
  223. 223. 3.4.4 Consumer service and public awareness - campaigns  These may include  Pamphlets  Stickers, T-shirts, caps  Sponsorship of appropriate events  More examples and guidelines are provided in two GWP publications
  224. 224. 3.4.4 Consumer service and public awareness – campaigns: examples of material
  225. 225. 3.4.5 Education and training in WDM  Target specific audiences  Might not necessarily be on WDM but containing relevant aspects  This may include:  Incorporation of WDM in schools curricula (primary and secondary education)  Tailor-made tertiary training courses (e.g. IUCN’s Guideline Training Module for MWSAs and IUCN-WaterNet Module)  Education at home  Education in the workplace
  226. 226. 3.4.5 Education and training in WDM  Some remarks  Training and education can be costly  Public and private funding  Partnerships and co-operation between training institutes, donors, employers and employees is essential  It must be continuous, provide feedback and be easily replicated
  227. 227. Water Demand Management UNIT 4 WDM plan
  228. 228. Course map U nit 1: W DM in context U nit 2: M unicipal W DM U nit 3: W D M options and benefits Unit 4: W DM plan
  229. 229. Outcomes By the end of this unit, you should be able to  complete a WDM plan for your own MWSA by developing IWRM and WDM objectives and targets  review your course notes and improve on your plan where necessary  make a list of further information you need to acquire to add to your plan
  230. 230. WDM plan for the MWSA Topics  Developing a WDM plan  Implementation  Monitoring and evaluation
  231. 231. 4.1 Developing the plan Past experiences  Best WDM successes are obtained when MWSAs work with local authorities, BUT  Highly successful local WDM plans can be developed without a supportive national environment  Need for local champions  Need for local reasons and motives
  232. 232. Steps in plan preparation Undertake IWRM analysis of water resources and MWSA Identify critical water issues, constraints and opportunities Identify IWRM options Formulate IWRM and WDM objectives and targets
  233. 233. Develop WDM options Evaluate benefits and costs Select and prioritise options Identify funding needs and sources Develop the WDM plan Steps in plan preparation
  234. 234. Step 1: IWRM analysis Review critical supply and demand factors Undertake dynamic analysis (past- present-future) including Type and nature of resources Main user groups and relevant determinants of use
  235. 235. Preparing an implementation plan
  236. 236. Key issues Stakeholder institutions in water chain Changes in and sustainability of fresh water sources and return flows Dependence on shared/international water resources Cost of supply augmentation schemes (any prematurely built?) Step 1: IWRM analysis
  237. 237. Future perspectives Participation of end-users in water planning Water as an economic good Gender aspects of water planning and management Review critical supply and demand factors Step 1: IWRM analysis
  238. 238. Step 2: Issues, opportunities and constraints Review  National, regional and local policies  Programmes, regulations and by- laws  Past supply measures
  239. 239. Establish  Demand trends  Water management options  Costs and benefits of options  Regional aspects Step 2: Issues, opportunities and constraints
  240. 240. Identify  WDM reasons  Economic  Social  Environmental  WDM niche in IWRM  WDM constraints and possible solutions Step 2: Issues, opportunities and constraints
  241. 241. Step 3: IWRM options  Identify supply augmentation options and costs/benefits  Identify options to increase non- traditional supplies  Identify options for WDM including re-use of wastewater
  242. 242. Activity  Review the Johannesburg Water, Water Conservation and Demand Management Strategy compiled by WRP (2001) under the Managing Water for African Cities programme
  243. 243. Step 4: IWRM and WDM objectives and targets Example of an overall WDM objective  to increase the efficiency of water consumption to serve a larger part of the population and to boost sustainable economic production
  244. 244. Examples of WDM targets  Reduce UAL by 50 % in a five-year period  Reduce water consumption of high- income groups by 30 % in three years  Create a WDM unit within one year to ensure sufficient WDM capacity  Create WDM training opportunities Step 4: IWRM and WDM objectives and targets
  245. 245. Step 5: Develop WDM options  Select an evaluation method (EIA, CBA or MCA)  Identify promising WDM interventions  Evaluate the merits of WDM measures vis-à-vis supply augmentation schemes  Recommend IWRM and WDM measures
  246. 246. Options include  Technical measures  Financial and economic measures  Legislative/policy measures  Education, public awareness and consultation Step 5: Develop WDM options
  247. 247. Step 6: Select and prioritise options  Discuss results of Step 5 with all stakeholders  Formulate broadly supported plan for WDM interventions
  248. 248. Step 7: Identify funding  Estimate WDM implementation costs  Identify possible sources of funding, including  WDM surcharge  ‘Profit’ of marginal pricing  Donors, national governments etc.
  249. 249. Step 8: Develop WDM plan Include  Problems to be addressed  Objectives and targets  Interventions  Institutional requirements and set-up  Financial requirements and funding  Mechanisms for monitoring and evaluation
  250. 250. Cover  water resource planning  water distribution systems  end-users  return flows Step 8: Develop WDM plan
  251. 251. Outline  progressive service delivery arrangements  specified standards  a tariff model  all current water-care works and bulk reticulation Step 8: Develop WDM plan
  252. 252. Propose  real UAL and set revised WDM targets  response measures if targets are not met  funding mechanisms  standard practices and policies on service payments Step 8: Develop WDM plan
  253. 253. 4.2 Implementing the WDM plan The implementation of the plan is facilitated by  an enabling instrument environment  an efficient institutional support structure  sufficient funding and manpower
  254. 254.  Success depends on the presence of a credible WDM champion  Begin with a pilot scheme or demonstration area that shows visible short-term benefits 4.2 Implementing the WDM plan
  255. 255. 4.3 Assessing the results of the plan Assessing success or failure requires monitoring and evaluation  Monitoring is continuous  Evaluation is carried out periodically  Perceptions of success may vary  Progress/outcomes must be assessed quantitatively
  256. 256. Examples of performance indicators within MWSAs  Trends in leakage reduction  Response times to leak reports  Trend in unit cost of water supply  Percentage of population served  Water production 4.3 Assessing the results of the plan
  257. 257. Examples of performance indicators within MWSAs  Total water consumption  Metered water consumption  Unaccounted For Water (UAW)  Level of metering  Unit operational costs  Staff per '000’ connections 4.3 Assessing the results of the plan
  258. 258. Examples of performance indicators within MWSAs  Staff per '000’ population served  Continuity of and complaints about service  Average tariff  Investments in WDM  Average system pressure  Percentage of re-used treated effluent 4.3 Assessing the results of the plan
  259. 259. Examples of performance indicators for end users  Value added per productive water unit  Per capita domestic water use  Water consumption per civil servant  Cost recovery percentage  Sales of WDM appliances and technologies 4.3 Assessing the results of the plan
  260. 260.  Develop performance indicators taking local conditions into account  Collect data and information before and during implementation  Pinpoint constraints or benefits  Evaluate the achievement of WDM targets  Assess the level of performance 4.3 Assessing the results of the plan
  261. 261. KPIs: Figure 2: UAW for Mogale City 4.3 Assessing the results of the plan
  262. 262. Figure 3: Water purchases and sales 4.3 Assessing the results of the plan
  263. 263.  More than one KPI can be developed from the same data  Producing both is beneficial to providing a better understanding of what is happening 4.3 Assessing the results of the plan
  264. 264. Progress can be difficult to assess  Figures may vary due to  pipe bursts or valve failures  changes in actual consumption  months having different numbers of days  meters being read early or late  variable quantity of water stored in distribution reservoirs 4.3 Assessing the results of the plan
  265. 265.  Short term targets may not be attained due to fluctuating variables  Medium to long term commitment will result in measurable success 4.3 Assessing the results of the plan
  266. 266. WDM M&E programmes help institutions to  Become more innovative, flexible, adaptive and responsive  Be accountable to beneficiaries  Learn from experience  Facilitate change  Solve problems 4.3 Assessing the results of the plan
  267. 267. WDM M&E programmes help institutions to  Communicate problems and solutions  Improve planning  Take corrective action  Improve effectiveness and sustainability  Provide continuity of information and knowledge  Empower communities by linking project results to needs and demand 4.3 Assessing the results of the plan
  268. 268.  Each MWSA will benefit from an information management system to integrate monitoring, evaluation and maintenance of programmes  MWSA and national systems should be aligned to ensure local achievement of national IWRM and sustainable development goals 4.3 Assessing the results of the plan
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