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Water Financing Partnership Facility

RETA 6498: Knowledge and Innovation Support for ADB’s Water Financing


Application Form

Activity Title: Pilot Application of IWA Water Balance Methodology in Fiji, Georgia, Nepal, Philippines
and PRC
Proposer (Name, Organization):
Request Date: Jan 2019
Country: GEO, FIJ, NEP, PHI, PRC Region: Regional
Activity Proposed Start Date: Feb 2019 Activity Proposed Duration: 12 months

Cost Estimate $250,000 (approximately $50,000 per country)

Implementing Organization Contact:
ADB Activity Officer – name, David Fay (Fiji), Heeyoung Hong (Georgia), Shiva
position, division, telephone and e- Prasad Paudel (Nepal), Hubert Jenny (PRC), and
mail: Marie-Helene Sibille (Philippines)

1. Background and Rationale:

Water losses or non-revenue water (NRW) is the primary and most urgent problem for most operators
around the region. The high incidence of water losses can be due to one or several of the following
factors: ageing infrastructure, lack of holistic asset management practices, water theft, improper
accounting of water. Compounded by lack of resources needed to address necessary systems and
infrastructures improvements, and lack of updated knowledge on how to efficiently handle water losses,
operators often resort to reactive maintenance which does not result to long-term improvements in the

Water operators need a more strategic way of tackling water losses, to enable them to prioritize initiatives
that will give the most results for the least resources. The International Water Association (IWA) Water
Balance Method is a recognized international best practice on identifying, recording, measuring and
analyzing sources of water loss. While very effective, it is quite simple and can be practiced by any water
operator, given proper training.

Many water operators may have different practices in measuring water losses which only involves
identifying total water supplied versus billed water. While this may be good as an overall organizational
performance indicator, it does not provide much guidance to the water operators on where to direct their
efforts to get the most water savings.

One of the revised performance targets in the revised DMF for ADB’s Water Operational Plan 2011-2020
with regard to NRW or water losses is the “adoption of the IWA Water Balance Methodology in at least 1
country per department”. The IWA Water Balance Methodology is a methodology which takes into
account the water taken into the system against all uses in the distribution system and into customers’
properties as shown in the figure below:
Compared to other NRW management methodologies, the IWA Water Balance method is a more
accurate way of measuring, analyzing and identifying sources of water losses. Water utilities are then
better informed on how to best use their limited resources to yield the most results.

2. Goals & Objectives:

The objective of this regional PDA is to facilitate pilot application of IWA water balance methodology in
five countries representing all five regions of ADB operations: Georgia (Central and West Asia), PRC
(East Asia), Fiji (Pacific),Nepal (South Asia) and Philippines (Southeast Asia) to promote a standardized
method of measuring NRW levels and management progress across the region. The PDA will introduce
the methodology and train the water operators to lead them to transition from current NRW management
practices to the IWA water balance methodology. As different water operators will have different levels of
familiarity and understanding of NRW management, this PDA will assess their baseline, customize a
training program and identify realistic increased capacity levels that will lead to adoption of IWA Water
Balance method in their operations.

3. Scope and location of Work / Description of Activities:

Location of the project

This PDA will include works in the United Water Supply Company of Georgia in GEO, Water Authority of
Fiji in FIJ, the Metropolitan Waterworks and Sewerage System in the PHI, Beijing Water Affairs Bureau in
PRC, the Leknath Water Users and Sanitation Committee in NEP.

The pilot areas were selected based on (i) ADB’s current lending portfolio in the country, (ii)
organizational capacity to implement changes that will result in more efficient use of investments and
improved sustainability of assets, (iii) previous works in ABD water losses initiatives and (iv) potential to
influence change in the country’s water supply sector.

Description of activities

The activities are suited for each water operators’ needs and levels of understanding which can range
from none to advanced. As such, the activities comprise:
• CWRD/GEO – support the activities initiated with the help of Cities Development Initiatve
Asia (CDIA) to address some O&M issues of the water sector in Georgia. This will lead to
a planned 2019 investment to improve the O&M including reduction of NRW

• EARD/PRC – training in Beijing to introduce IWA water balance methodology, assist a

water utility to record and measure its water consumption accordingly and establish O&M
protocols on water operation

• PARD/FIJ – continue the initiatives of AquaRating which made WAF move from
traditional reporting to water balance reporting

• SARD/NEP – continue the positive results of the Water Operators Partnership (WOP)
initiative with the Leknath Water Users and Sanitation Committee which introduced DMA
management, resulting to an NRW of 46% to 36%

• SERD/PHI – continuation of the trainings done with the Metropolitan Waterworks and
Sewerage Authority (MWSS). MWSS aims to change the reporting methodology of its
concessionaires in Manila from traditional to IWA water balance reporting. It is targeting
to implement the change for 2023 Rate Rebasing

4. Implementation Schedule, Institutional Management Arrangements, and Proponent


Implementation Schedule

Dept/ 2019 2020

Country Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Report on

Institutional management

Facilitated by SDCC, this project will be coordinated closely with the regional departments and
resident missions and counterpart government offices. Each of the five (5) water operators will be the
lead in the implementation of this project.

Two NRW specialists/consultants will be engaged to support the PDA implementation.

Proponent Qualifications

The specialists should have at least 10 years experience in working with water utilities specifically in
NRW management. The specialists should also have proven proficiency in the IWA Water Balance
Methodology. A good track record in conducting trainings and capacity building activities specifically
on IWA Water Balance Methodology is preferred.
5. Expected Results (outputs/outcomes/effects/impacts):


- Assessment of the water operators’ current NRW management practices including measurement,
recording and reporting practices and systems

- Assessment of familiarity and extent of use, if any, of IWA Water Balance Methodology

- Basic and advanced trainings and workshops on IWA Water Balance Methodology

- Development of appropriate measurement, reporting and monitoring tools consistent with IWA
Water Balance Methodology

- Reporting on the baseline and end-level understanding of each water operator in relation to the
IWA Water Balance Methodology


The outcome is adoption of IWA Water Balance Methodology through transitioning from current NRW
management practices to the IWA method.


The impact is better use of limited resources through informed investment choices resulting from
better identification of water losses and solutions.

6. Measurable Performance Indicators:

Output Indicators
- Baseline report on NRW level and proponent’s level of IWA Water Balance understanding
- Basic and advanced trainings and workshops for each country proponent for at least 10 staff

Outcome Indicators
- Monthly reports on NRW level using IWA Water Balance Methodology

7. Stakeholders Participation:

The implementation of the PDA will ensure participation of major stakeholders, i.e. relevant government
agencies with mandates to oversee, monitor and regulate performance of utilities.

8. Scope for Replication/Use in Other DMCs:

All the five (5) proponents were chosen with the thought that they will lead the improvement of practices
of other water operators in the country. This project workplan will be monitored for improvement for
replication to other DMCs as NRW is an urgent need for many DMCs.

9. Cost Estimates:

The total cost estimate is $250,000 (approximately $50,000 per country) which will pay for experts’
remuneration and OPE. Proponents’ contribution will include cost of trainings and workshops and local
staff time.