JUNE 2013 I water VOLUME 8 ISSUE 2 utility management INTER N ATIONAL

COMMUNICATIONS ORGANISATIONAL MANAGEMENT Supporting non-revenue water reduction with a Change Management Index

NETWORK MANAGEMENT BENCHMARKING

How benchmarking Determining the triggers water Critical Importance industry Index of a system’s improvements circuits: the case of PLUS ... Empresas Públicas Adapting performance indicators de Medellín E.S.P. for Mexican utilities NEWS

Sector heads discuss economics of sanitation n April, UN deputy secretary-general Jan ‘much, much worse and much more bathroom’ in the neighbourhood and IEliasson joined UNICEF executive director significant problem’ than access to water, thought ‘their father is rich’, and that Tony Lake, World Bank group vice president simply because the numbers without perhaps if their fathers were rich they of sustainable Development Rachel Kyte, access are so much higher. too could have a bathroom. and American Standard vice president Jim The meeting was convened to think ‘That is the feeling that we think is one McHale for an online conversation with key about how to ‘improve and ramp up of the feelings we think is necessary – that global decision makers about the economics access’. Ms So spoke of her childhood in sanitation is a goal that is aspired to but that and politics of sanitation. Seoul without access to network sanitation. citizens should demand, and what can we The introduction, by World Bank Water She noted: ‘It was like Slumdog Millionaire, do as the global community to help our and Sanitation Programme manager but we lived that.’ She recalled all of the citizens meet that,’ she noted. G LS Jaehyang So, acknowledged sanitation as a children admiring the first ‘really shiny See Analysis, p7 Black & Veatch report highlights trends and concerns in US water sector lack & Veatch’s second US water these challenges. However, this will not think beyond traditional finance, after Bindustry report has found that the erase the large capital needs of our water a finding that industry leaders remain industry is more focused on informed infrastructure.’ hesitant to do so. The president of the spending to make the most of limited bud - The 2013 Strategic directions in the company’s management consulting gets and extend the life of current assets. US water industry report captures the business, John Chevrette, said: ‘Many Over 90% of utility leaders anticipate industry’s viewpoint on current issues in the financial community believe that having formal asset management and highlights best practice and global the municipal bond market will not be programmes in place or in progress case studies. able to support the massive needs of by 2016, the report says. There are a number of key findings. the industry. Cindy Wallis-Lage, president of Black These include that non-revenue water is ‘This is particularly true given the & Veatch’s water business, said: ‘The top one of the main challenges, with a national market’s post-recession aversion to risk. We three industry issues are ageing infrastruc - average of 20%, and that 70% of respon - strongly encourage our clients to look at all ture, managing capital costs and managing dents that provide water services are financing options, both public and private, operational costs. Asset management implementing drought contingency plans. allowing them to negotiate from a position programmes will help utilities address Black & Veatch encouraged utilities to of strength.’ G LS See Analysis, p6 Mobilising financing for Mediterranean projects he Union for the Mediterranean (UfM)’s sus on a number of priority areas including Mediterranean Action Plan (UNEP-MAP), Tsecretariat is undertaking a study on water and environment. and the second being undertaken by EIB financing of the prevention, abatement and A launch workshop for the study recently with a view to evaluating the implemen ta - combating pollution of the Mediterranean sea. took place at the institution’s Barcelona tion of Mediterranean de-pollution projects. The results will contribute to a compre - headquarters, bringing together the These studies will provide recommenda - hensive assessment of the current situation coordinating partners – UNEP-MAP, the tions on the way forward, regarding the in de-polluting the sea, with a view to European Investment Bank (EIB), regional need for joint effective action among the updating the investment needs for meeting institutions and international financing different actors. The outputs of the three pollution reduction targets in 2020 to 2025. institutions. Preliminary findings of the studies will contribute to a revision of the The UfM is an institution that provides a study were presented, and the main activities UNEP-MAP Depollution Strategic Action platform for the 27 EU member states and planned to next autumn were mapped out. Program and national action plans, as well 16 southern and eastern Mediterranean The study will complement two parallel as defining the second phase of the H2020 partners to coordinate and build a consen - studies, one being undertaken by UNEP - initiative. G LS See Analysis, p8 US announces funds to repair Hurricane Sandy damage to water infrastructure he US has announced grants for the using project priority ranking systems that increase the resiliency of water and waste - Tstates of New York and New Jersey are based on elements of the Clean Water water assets to future severe storms. to repair water and wastewater assets Act, Safe Drinking Water Act, Disaster EPA acting administrator Bob Perciasepe damaged by Hurricane Sandy. Relief Appropriations Act and individual said in a statement: ‘As communities Nearly 60% of the funding will be target - state regulations. continue to recover following Hurricane ed at New York and 40% to New Jersey, Many water and wastewater systems Sandy’s devastation, it’s important that their and the money will be allocated to the Clean in the two states were badly damaged efforts to rebuild our infrastructure such as Water and Drinking Water State Revolving by the unusually-destructive hurricane, wastewater and drinking water facilities are Fund programmes for dispersal. to the extent that some were unable to approached in a sustainable way. The funding was determined based perform their functions – in the case ‘These funds are another critical step on the percentage of population in of wastewater treatment plants this in the administration’s ongoing effort to counties that the Federal Emergency sometimes resulted in discharges of raw help New York and New Jersey recover Management Agency (FEMA) designated wastewater and subsequent pollution. and move forward in a way that ensures for disaster assistance. The funding will also enable the states local communities are stronger than Projects will be selected by the states to reduce the risk of flood damage and before.’ G

2 • WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 NEWS CONTENTS

REGULARS ADB warns developing country 6 ANALYSIS services failing the needy Aging infrastructure tops US industry concerns new Asian Development Bank (ADB) study warns that public Aservices in developing parts of the region are often failing The business of sanitation to reach the needy. The report recommends improvements to avoid a further Mobilising financing in the widening of what it describes as the ‘region’s already sharp Mediterranean water sector divide between rich and poor’. Headline findings in the report include: • Delivery and quality of public services have lagged behind FEATURES the meteoric growth rates seen in many economies in the region • Service delivery across the region is mixed 9 TECHNOLOGY • Turning the present situation around will require state institutions Surveying the smart water landscape to be far more responsive to demands for services and much By Keith Hayward more focused on targeting support for those genuinely in need • Giving communities more say and power over service provision 14 ORGANISATIONAL will require legal and institutional arrangements which MANAGEMENT encourage citizen participation, as well as the necessary Supporting non-revenue capacity building support and resources water reduction with a Change Management Index The report examines the challenges that state providers face in By Monika Konatar delivering quality basic services to low income groups, and the potential for giving disadvantaged communities more power over service delivery. 17 NETWORK MANAGEMENT Specifically on water and sanitation, the report has found very Determining the Critical Importance little progress, noting that services are often shrouded in heavy Index of a system’s circuits: national bureaucracy that impedes efficiency. G the case of Empresas Públicas de Medellín E.S.P. By María Patricia Salazar Giraldo UK’s Thames Water defends tax position and Tatiana López Restrepo hames Water has firmly defended its position after finding itself Ta focus of controversy after revealing that it paid no corporation tax in the last financial year despite making £549 million ($844 23 PERFORMANCE million) in profits on its £1.8 billion ($2.8 billion) turnover. Adapting performance The UK press also revealed that the utility had paid £328.2 indicators for Mexican water utilities million ($504.8 million) in ‘inter-company loans’ via a Cayman By Velitchko Tzatchkov, Islands funding vehicle to pay external bondholders. Victor Hugo Alcocer- The arrangement is legal, though water industry tax practices Yamanaka and Victor have spurred economic regulator Ofwat chairman Jonson Cox to Bourguett-Ortiz put pen to paper in The Telegraph to suggest that some unlisted companies have a moral case regarding allegations that they ‘use 28 BENCHMARKING shareholder loans to avoid UK taxation’ via ‘complex offshore How benchmarking triggers water holding structures’. industry improvements Mr Cox noted: ‘A good number use high-coupon shareholder By Heimo Theuretzbacher-Fritz, loans to improve their equity returns. It appears that this reduces Joerg Koelbl, Franz Friedl and tax liability for the benefit of shareholders.Tax policy is not for an Daniela Fuchs-Hanusch economic regulator and these structures may be legal and com - mon in private equity. But some aspects are morally questionable in a vital public service.’ Thames Water is owned by an investor consortium led by Australian bank Macquarie Group’s European operations. The company issued a statement saying: ‘Recent press coverage of our tax liabilities has not adequately explained how infrastructure investment is actively incentivised by the government through the longstanding policy of granting capital allowances to provide tax relief. This approach ultimately permits corporation tax to be deferred, not avoided.’ The company drew attention to a recent speech by Treasury minister David Gauke, in which he said: ‘When we bring in a tax relief we want companies to use those tax reliefs. They are entirely legitimate, they are entirely legal, and they shouldn’t be confused Cover photo credits: MACS and EPM Group. See feature p14 and 17. with tax avoidance... claiming capital allowances which recognise asset depreciation is not tax avoidance.’ G

WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 • 3 NEWS

Bahrain announces large-scale water infrastructure construction programme he Bahrain Ministry of Works has had constructed a number of sewage 100% connection by the end of 2020. Tannounced that it is to spend BD1.5 treatment plants, the most important of He noted that the ministry is working billion ($4 billion) on constructing which is Tubli STP. This is the main plant on implementation of several strategic wastewater treatment plants, wastewater that uses tertiary treatment, which is projects, notably the Muharraq wastewater networks and operation and maintenance suitable for irrigation uses. It is presently treatment plant, which will be the country’s to the year 2030. undergoing upgrade works until it is first private sector wastewater operation. Khalifa Al Mansoor, the Ministry’s expanded by the Gulf Support Programme.’ Tubli wastewater treatment plant, sanitary engineering assistant under- A number of other plants have also currently the largest in the country, is secretary, revealed at a recent press been built including the Sitra municipal also due to be expanded to 400,000m 3/ conference that the funding is part of wastewater treatment plant and the day as part of a move to decentralise the a national strategy to improve waste Al Maameer industrial wastewater country’s wastewater networks. and wastewater treatment plants. The treatment plant, as well as a number A 126km gravity wastewater network country has already spent $1.21 billion of smaller treatment works. is also planned, with a view to minimising on the wastewater sector for project Mr Al Mansoor noted that in 2013, the number of pump stations on the net - development, operation and maintenance 95% of the country’s population has work. Mr Al Mansoor predicted that state- works since the 1980s. been connected to wastewater services, of-the-art tunneling techniques would be Mr Al Mansoor explained: ‘The ministry with the master plan aiming to achieve used during its construction. G

EIB provides loan for FCC sells 50% stake in Water Environment Federation The project will involve building upgrades to Seine Aval Proactiva to Veolia (WEF) has proposed that the 26 micro hill reservoirs, establish - wastewater plant Environnement US EPA reassess its definition ing water collection systems and The EIB is providing €600 million FCC, the global infrastructure of affordability. The EPA’s afford - rehabilitating hydro-meteorological ($803 million) to enable upgrades and environmental services ability criteria are intended to data stations. to the facilities at the Seine Aval group, has reached an agreement relieve undue economic burdens wastewater treatment plant of Ile- to sell its 50% stake in Proactiva on communities facing federal Paper warns that Delhi water de-France wastewater operator Medio Ambiente to French water mandates. The three proposals do not address Syndicat interdepartmental pour multinational Veolia Environnement organisations say that EPA’s access for poor asainissement de l’agglomération for €150 million ($200 million). criteria rely too heavily on A paper in the current issue of parisienne (SIAPP). As a result, Veolia will own 100% median household income Urban Water Journal by Deya of Proactiva, an environmental and underestimate the effect Roy of the Center for Studies World Bank provides grant services provider in Latin America. of rising water bills on low- in Science Policy, suggests to support Ghana’s watsan This deal will provide FCC with income, fixed-income and that Delhi’s proposed technical activities capital gains of €81 million renting households. solutions to improve the city’s The World Bank has agreed an ($108 million) and advances water supply will not address IDA grant of $155 million, focused its divestment plan. AfDB signs grant agreements the underlying issue of access on two activity areas to support for Burundi mountain water to water for the urban poor. the government of Ghana’s efforts Group urges US EPA to systems The study concludes that a to increase access to sanitation and redefine affordability The African Development Bank multi-sectoral response, involving water supply services and improve A joint issue brief from the US has signed two grant agreements many different government the capacity of government Conference of Mayors (USCM), with Burundi to construct water departments, will be needed agencies to plan and manage the American Water Works systems in mountain regions, to ensure a long-lasting solution natural resources sustainably. Association (AWWA) and the improving their climate resilience. to the city’s water problems.

planning, consolidation, public / private sector PUBLISHING SUBSCRIPTIONS water roles, leadership, IT, and human resources. Other regular themes include financing, Publisher Water Utility Management International utility management regulation, charging policies, procurement, Michael Dunn is available as either a print or an online INTERNATIONAL corporate governance and customer issues. subscription. Water Utility Management International is Editorial Advisory Panel published four times a year by IWA 2013 price (4 issues): EDITORIAL Publishing. Statements made do not £241 / €363 / $480 Dr Richard Franceys , Centre for Water represent the views of the International (IWA members: £199 / €299 / $378) Editor / Associate Publisher Science, Cranfield University, UK Water Association or its Governing Board. Keith Hayward ([email protected]) Dr Francesc Hernández , Associate Professor, Contact University of Valencia, Spain IWA Publishing Portland Customer Services Publishing Assistant Dr Bernhard Hoersgen , Executive Board Alliance House, Commerce Way, Colchester Catherine Fitzpatrick Member, Gelsenwasser AG, Germany 12, Caxton Street, CO2 8HP, UK Dr David Johnstone , Oxford Centre for Water London SW1H 0QS, UK Fax: +44 (0)1206 799331 Water Utility Management International Research, University of Oxford, UK T: +44 (0)20 7654 5500 Email: [email protected] focuses on the interests of utility executives, Prof Hamanth Kasan , General Manager - F: +44 (0)20 7654 5555 policy makers and advisors around the world Scientific Services, Rand Water, South Africa E: [email protected] Or visit: engaged with the key management issues Mr Khoo Teng Chye , Chief Executive, PUB, W: www.iwapublishing.com www.iwaponline.com/wumi/default.htm faced by water and wastewater utilities. As Singapore well as senior utility managers, WUMI will Mr Alejo Molinari , Quality of Services Design & print ISSN (print) 1747-7751 be of interest to regulators, consultants, Manager, ETOSS / ERAS, Argentina Layout: IPL Print & Design Ltd ISSN (online) 1747-776X contractors, academics, and financial, Dr Renato Parena , Chief Financial Officer, Printed by Hobbs the Printers, UK © IWA Publishing 2013 technical and legal professionals. Societa Metropolitana Acque Torino SpA, Italy Utility reform and achieving efficiency are Mr Eric Rothstein , Principal, Galardi Rothstein Advertising Group, USA central themes of the publication, encompass - Paul Tilston Ms Meike Van Ginneken , Senior Water and T: +44 (0)20 7368 7145 ing topics such as benchmarking, investment Sanitation Specialist, World Bank, USA E: [email protected]

4 • WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 NEWS

New EPA survey highlights need for significant infrastructure improvements

he US Environmental Protection The four-yearly assessment found or rehabilitate intake structures, wells TAgency (EPA) has released the results that improvements are mainly needed and spring collectors of a survey that shows $384 billion in in four areas: improvements are needed for drinking • Distribution and transmission systems EPA acting administrator Bob Perciasepe water infrastructure through to 2030 to will require $247.5 billion to replace or said that the survey ‘shows that the nation’s ensure the US’s potable water infrastructure refurbish ageing or deteriorating lines water systems have entered a rehabilitation continues to function properly. • Treatment systems will need $72.5 billion and replacement era in which much of the The EPA’s fifth Drinking water infrastruc - to construct, expand or rehabilitate existing infrastructure has reached or is ture needs survey and assessment identi - infrastructure to reduce contamination approaching the end of its useful life. fied the investments needed over the next • $39.5 billion will be required to construct, ‘This is a major infrastructure issue that 20 years for 73,400 water systems across rehabilitate or cover finished water must be addressed so that American the country, as well as American Indian storage reservoirs families continue to have the access they and Alaska Native Village water systems. • $20.5 billion will be needed to construct need to clean and healthy water sources.’ G Veolia Water to manage water services for three Indian cities

eolia Water has agreed three new In Ilkal, Veolia Water will build a drinking water to 15% of the city’s Vcontracts in India’s Karnataka state, distribution network and manage the population, nearly 67,000 residents. providing water supply services for the cities water supply service for the city’s The six year contract will bring in of Ilkal and Bijapur in north Karnataka, and 110,000 residents, around 25% of € 4.5 million ($6 million) in revenue. the Indian Institute of Science, a prestigious whom live in slums. The 5.5 year contract For the Institute of Science ‘city within institution of higher education in the state should generate almost €4 million ($5.3 a city’, which hosts 8000 students and capital Bangalore. million) in revenue, Veolia Water says. hundreds of personnel, Veolia Water The contracts are intended to provide a Construction and renovation works will will manage both the water supply and quality 24/7 water supply for the residents take 18 months and the operations wastewater system for a three year period. and students, rather than the few hours of phase will last four years. The campus has suffered serious water access that they currently have per week. In Bijapur, Veolia Water will supply shortages over recent years. G Large number of South African treatment plants using inappropriate technology

South African Water Research appropriateness of their technology choices causes, including low, non cost-reflective ACommission study, undertaken in in relation to their municipality’s ability to tariffs, lack of ring-fencing of the functional partnership with the South African Local implement and administer them. costs of wastewater treatment, inappropri - Government Association, has found that One key finding was that many munici - ate and unnecessarily expensive technolo - 44% of the wastewater treatment plants palities appear to follow a reactive mainte - gy choices, and billing and revenue selected for examination may have chosen nance approach in which assets are run collection issues. inappropriate technologies, and a 33% were to failure. The researchers also found that The study warns that ‘the blind drive using ‘questionable’ technology options. existing works are often inadequate for the for achieving uniform compliance for The study looked at a representative demands put upon them, mostly in terms wastewater discharge is not solving the sample of national municipal wastewater of loading or suitable treatment processes. problem in the long-term, but is fuelling treatment plants, assessing them for the The lack of funding is ascribed to several a problem’. G Severn Trent takeover bid rejected evern Trent has successfully fended In a statement LongRiver confirmed: consortium our belief that Severn Trent Soff a takeover bid by the LongRiver ‘No meaningful engagement between has a value to our shareholders above the consortium, which consists of Canada’s the parties has occurred. Having reviewed level it indicated it was willing to pay. Borealis Infrastructure Management, the all publicly-available information on the This difference in value has been at the Kuwait Investment Office and the UK’s company, and in the absence of any heart of this process and the consortium Universities Superannuation Scheme. meaningful engagement with the Severn has either not been able, or willing, to LongRiver walked away from the bid Trent board, LongRiver will not increase bridge that value gap.’ shortly before the Takeover Panel deadline its pre-conditional offer.’ Shares in Severn Trent dropped 6% date, saying it had received ‘no meaningful In response, Severn Trent chairman to below the £20 ($30.8) mark following engagement’ from the water company’s board. Andrew Duff said: ‘Throughout the the news, and took further falls later in The announcement followed the board’s course of this process, we and our the week that took them below the pre-bid rejection of a revised 2200p a share offer advisers have held talks with, and price. Hedge funds that had wagered on that valued the company at just under £5 given careful consideration to every Severn Trent agreeing to the takeover were billion ($7.7 billion) – the third bid put to the proposal made by the consortium. reported to have suffered significant losses company during the month-long courtship. ‘We have consistently made clear to the after the breakdown of the proposal. G

WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 • 5 ANALYSIS Aging infrastructure tops US water industry concerns

Black & Veatch recently released its 2013 Strategic Directions in the US Water Industry Report, which brings together the concerns and opinions of hundreds of water industry professionals to form an overview of the current state of the industry. LIS STEDMAN looks at the main points of the report.

lack & Veatch’s second annual US The Buried Infrastructure section within industry caution in looking beyond Bwater industry study collates responses the report sets out why a focus on non- traditional financing methods. It also from 397 qualified water industry partici - revenue water could help alleviate the warns that ‘continued inaction places pants. These primary findings validate at accelerating deterioration of critical utilities and municipalities at risk of a macro level, the consultancy says, what distribution and collection systems, having terms dictated to them in the the industry has been saying for years. thereby reducing capital costs, and future due to deteriorating asset and As other expert sources have warned, enhance efficiencies within the organiza - utility financial conditions.’ the report finds that ageing infrastructure is tion, thus reducing operational costs. The good news, the report notes, is threatening the financial viability of water The ranking of the issues was mostly that utility leaders do not have to develop and wastewater utilities, and traditional consistent across the country, although in new alternatives – proven methods for operating models are no longer sustainable. the arid south west and Rocky Mountain alternative financing, capital delivery At a micro level, the report finds a regions the issue of water scarcity, avail - and enhancing operations exist. commitment to improvement, but notes: ability and conservation was ranked The report highlights case studies from ‘However, the industry is just now develop - fourth and second respectively. the US, UK, Hong Kong and Singapore ing real maturity in regard to formal asset The increased interest in adopting formal that demonstrate good practice in various management programs. As a result, asset management programmes, which aspects of utility operations, such as ongoing efforts to fix aging infrastructure has come about because of the focus on Kansas water utility WaterOne’s adoption and gain efficiencies may not be address - energy efficiency, aging infrastructure and of software that helps it make operating ing the root causes of some of the managing costs, is welcomed as ‘a positive decisions that reduce energy consumption, challenges impacting utilities.’ trend that, if fully embraced, can be the and Singapore’s determined and success - Analysis of the top ten industry turning point for water and wastewater ful efforts to develop independent water issues showed the top five items virtually utilities in achieving a stronger financial sources. unchanged from the first survey, both in position and more efficient operations.’ Energy use was found to be a major terms of average score for each issue Mr Chevrette adds: ‘It will be interesting focus – around 90% of respondents and overall ranking, except that ‘funding to see if these programmes push the said their organisations were currently or availability of capital’ has moved below needle for infrastructure investment from implementing or were interested in ‘managing operational costs’. In descend - largely reactionary (regulatory compliance implementing energy efficiency ing order, the top ten issues are: and safety and reliability) to a more risk- programmes. As a significant sustainability • Aging water and sewer infrastructure based, proactive approach in the future, a issue it ranked second behind water supply • Managing capital costs clear sign that these programmes have / scarcity, well ahead of the third placed • Managing operational costs become fully engrained in the organization issue, distribution system water loss. • Funding or availability of capital and decision-making process.’ The area of most action was found • Increasing / expanding regulation to be energy efficiency, optimisation • Information technology Other issues and / or management, followed by changes • Treatment technology IT makes a big jump up the issue ladder to fleet fuel consumption, and the one in • Ageing workforce this year, from ninth last year to sixth this which least utilities showed interest was • Water scarcity or availability, year. The report notes: ‘Emerging technolo - wind power, which just 7.5% of utilities and / or conservation gies, such as cloud computing, virtualiza - were implementing. • Water loss (non-revenue water) tion and hosted applications are providing Black & Veatch reports an increase in access to additional tools, resources and interest among its clients in co-digestion – As John Chevrette notes: ‘Perhaps the services to the water and wastewater this is often seen as beneficial because greatest surprise within the Top 10 industry industry that improve operations and many utilities have excess digestion capac - issues list is the relatively low consideration potentially reduce costs.’ However, the ity, and could gain value from their assets for water loss, or non-revenue water.’ report warns that security concerns may by increasing the amount of high-strength Indeed, 17.4% of respondents, asked have a dampening effect on the adoption organic waste treated. This would enable about their current levels of non-revenue of some telecoms and automation them to produce more biogas, and solve water, replied ‘I don’t know’. This, the technologies. other municipal challenges such as keep - report observes, demonstrates the lack of The financing conundrum is particularly ing fats, oils and grease out of sewers and strong asset management programmes in pertinent given the ongoing economic waste organics out of landfills. the US water and wastewater industry. climate, and the report highlights the The report concludes that the needs of

6 • WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 ANALYSIS

today’s water and wastewater utilities contracts and Design-Build-Operate organisations fail to note is that inaction are ‘great but not insurmountable’. or Design-Build-Finance-Operate is a policy’. One thing is certain: the Some interesting trends, such as an models, show that the market is in developing situation is going to generate increasing shift towards public-private flux. This is not necessarily a bad a considerable interest in trend reports in partnerships, operations and maintenance thing – as the report notes: ‘what most the near future. G The business of sanitation A recent online discussion between the UN deputy secretary- general Jan Eliasson, UNICEF’s executive director Tony Lake, World Bank group vice president of sustainable Development Rachel Kyte, and American Standard vice president Jim McHale focused on the economics and politics of sanitation provision. LIS STEDMAN summarises the main points made. uring the World Bank’s online sanitation in loss of human lives and economy. ‘We intended to facilitate use of pit latrines, Dconversation, which took place in know every dollar spent on sanitation can noting that they were $1.50 ‘and in that April, World Bank Water and Sanitation bring a five-fold return,’ he added. ‘The there is profit throughout the supply chain’. Programme manager Jaehyang So touched economic benefits to developing countries Mr Lake added: ‘Why shouldn’t we or on Korea’s remarkable success in moving are estimated at $2.6 billion a year.’ In others buy them in bulk and reduce the from pit latrines in Seoul to full sanitation, considering this as a market, he noted that price still further, and guarantee markets?’ but added that because ‘we don’t have the ‘opportunities abound for everyone from The question and answer session same type of global economy today, the multinationals to local entrepreneurs’. explored a number of issues, including solutions have to be different. We have UNICEF’s Tony Lake also stressed the the need to understand demographics and to involve everyone in society.’ importance of investing in sanitation, constraints upon cultures, as well as the UN deputy secretary-general Jan making an investment case based on the institutional environment. One observation Eliasson gave the keynote speech, a benefits to society of fewer children dying of was that viable business models might be month after launching a call to stop diarrhoea and fewer school days lost – he fully commercial, or might involve investors open defecation. He began by recalling cited the stunting effect of the disease on that required a lesser return. a question asked ‘directly and rather an estimated 165 million people. ‘They are It was also noted that the private sector abruptly’ by a representative from WaterAid shorter and more vulnerable to disease, is able to find distribution channels much who asked him if he’d ever been caught and their brains never develop the way they more effectively than the public sector short and urgently needed a toilet. ‘Let us should. In India nearly 50% are stunted. In usually does, and that government remember that there are 2.5 billion people the Yemen 50% are stunted.’ procurement and dispatch ‘is not who have nowhere to go. There are no He added: ‘You can imagine the drain on necessarily an efficient model’. toilets,’ he stressed. development in sector after sector unless Mr Eliasson noted: ‘This is not only the He recalled a UNICEF project in Addis we address this issue. You are just not right thing to do but it is good business, Ababa whose watchword was sustainability. going to make the progress you should.’ good investment. This is enlightened self ‘Their approach to sustainability was to The World Bank’s Rachel Kyte looked at interest.’ He added: ‘We live in a world with tackle the sanitation problem as a business the bank’s role, noting that ‘one of the most so much hopelessness and powerlessness proposition,’ he noted. In the project, a important roes we can play is to point out – people say, what can I do? Well, here is safe, clean, public facility was built near the economic evidence. This is the plan - one of the most obvious things.’ a market. The money from this project ning equivalent of shooting yourself in Tony Lake also recognised the need was used to open other facilities. the foot.’ She added: ‘There is a strong to address the taboo that surrounds Mr Eliasson added that ‘the sanitation economic argument to be made for talking about sanitation. ‘We need to MDG is the one on which we have made getting sanitation right.’ talk about something that is inherently least progress, yet it is the most important – She spoke of ‘moving people up the hard to talk about,’ he noted. Jim McHale it has a direct bearing on the other goals.’ sanitation value chain’, and tailored cautioned: ‘The pathway of least resistance He observed that ‘there are 985 days left approaches to suit the needs of different to sanitation has been to give people a to achieve the MDGs, and the sanitation countries, and noted that ‘we aspire to toilet, rather than sit down with a village goal is the one most likely to fail’. The doing even more to bring the private sector and explain why they want a toilet.’ Jan sanitation drive, he said, ‘calls on all in, to find business models that will bring Eliasson noted ‘the great challenge for member states, international organisations, sanitation in’. the public sector to deal with issues civil society and active citizens to mobilise American Standard’s Jim McHale noted related to infrastructure. We need to and intensify their efforts,’ with a focus on that ‘we have got to stop thinking about ensure that national governments give communications and advocacy. the bottom of the pyramid as beneficiaries, priority to such projects.’ There is a need, he continued, to get but as a segment of the market that is He concluded: ‘We have to make it people to think about and openly discuss completely underserved’. He also cited a politically attractive to supply sanitation sanitation. ‘We have got to break the lesson from Bangladesh, that ‘people really so that politicians will feel there is a need taboos.’ Among his conclusions, he noted wanted better products but nobody was to do that and it is what is required by the cost of poor sanitation can be counted providing them’. He cited a plastic device public opinion.’ G

WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 • 7 ANALYSIS

Mobilising financing in the Mediterranean water sector

A new project has been launched by the Union for the Mediterranean, which is aiming to improve the mobilization of financing in the Mediterranean water sector in order to increase investment in water projects to meet the shortfall in service provision. LIS STEDMAN discusses the current challenges in financing of the sector and how the project aims to address these.

recently-launched Union for the local levels, that hinders the efficient use key attendees, underlining the importance AMediterranean (UfM) project is intend - of the available funds, as well as the of the project. Jordan’s minister of water ed to address obstacles to the mobilization mobilisation of vital additional financial and irrigation, Hazim El-Naser, said: of financing in the Mediterranean water and managerial resources. ‘Nations and civil societies need to work sector, and also to improve public gover - The programme concept note explains on enhancing prevailing water governance nance and attract important investments. that ‘at the same time, the governance with all its elements: foremost transparen - It will involve work at both the national deficit has been put under the spotlight cy, accountability, coherence and partici - and regional level over the 2013 to 2015 by the recent unrest calling for in-depth pation. This UfM-labelled project aims period in six Mediterranean countries – reforms in socio-political settings that to effectively address these issues and Albania, Jordan, Lebanon, Morocco, have set the Mediterranean region on identify and promote solutions that are Palestine and Tunisia – with more an unprecedented and most challenging realistic and implementable. With this in potentially joining at later stages. trajectory. mind, let me restate Jordan’s support to Endorsed by all 43 UfM member ‘Although the full implications of these this UfM project and our commitment to countries, the project is being jointly changes are yet to be seen, there is a work together with GWP-Med and OECD undertaken by the Global Water clear call for more effective and responsive for its success.’ Partnership-Mediterranean (GWP-Med) water service provision, wider participation The minister and head of the Palestine and the Organisation for Economic Co- of stakeholders, more bottom-up and Water Authority, Shaddad Attili, said: operation and Development (OECD). decentralized planning and implementa - ‘We have been engaging efforts on the tion processes, and more transparent and reform of the water sector and we are Service deficit accountable policy and decision-making.’ conscious that we need to further these The region is, surprisingly, lagging behind efforts to improve the governance frame - by 38% in achieving the Millennium Aims of the project work and encourage the private sector Development Goal of bringing safe water to In terms of the project’s wider ambitions, to invest in the water sector in Palestine all, and impacts such as population growth, UfM notes: ‘While countries aim for wider despite the political situation. That is climate change and urbanisation are all provision of water services, significant why we strongly support this project expected to add substantial extra difficul - investments are needed as well as sound and praise UfM and our partners, ties to an already challenging situation. policies, capable institutions and good GWP-Med and OECD, who are providing The current project builds on previous water management.’ their expertise and assistance for the and existing activities implemented since The project’s main objective is to find the development of Palestine and allowing 2008 by GWP-Med and OECD in Egypt, key governance obstacles to mobilising dialogue and exchanges with Lebanon and Tunisia, the latter of which is financing through public-private partner - our neighbouring countries.’ ongoing. These projects involved national ships (PPPs) for the Mediterranean water The conference also provided an assessments of the enabling environment sector, and to support the development of interface between such policy makers for successful private sector participation agreed action plans based on international and the many private sector actors in the water sector, highlighting the institu - good practices. that are active on water issues in the tional framework, administrative capacity The intention is to deliver a set of country Mediterranean, including conventional and sustainability of projects as areas for analyses, national recommendations and a ones such as international finance consideration. regional action plan at the end of the institutions, donor agencies and service The rationale behind the work acknowl - project in 2015. providers, and non-conventional ones edges that in the Mediterranean region, During the conference Egypt’s Abdelkawi such as public and private banks founda - despite the significant allocation of public Khalifa announced the accession of Egypt tions, small scale and local private sector funds and the flow of aid, countries strug - to the project, identifying the key factors stakeholders, and insurance companies. gle and usually fail to meet the financial behind this decision as the promotion and The event also identified ways to requirements that water-related strategies attraction of local and international private increase the outreach of the project and plans entail. sector actors to invest in the water and findings, awareness raising, stakeholder UfM notes that governance deficits, wastewater services sector; the discussion involvement and potential pilot applica - mismanagement and under-financing of plans and programmes to improve the tions, for instance through corporate undermine the quality and sustainability of region’s investment environment; and the social responsibility programmes. the water and sanitation sector – in particu - exchange of expertise, problem solving and Support for the project is strong, as lar, there is a lack of basic elements for best practices. underlined by the list of attendees at sound governance frameworks, including The event was also a platform for the inaugural event, and hopes are absorption capacity at both national and important statements from some of the high for the outcomes. G

8 • WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 TECHNOLOGY Surveying the smart water landscape

Smarter, data-driven technologies and services offer a range of potential benefits in operating water supply networks, as well as more broadly in the areas of water supply, wastewater, stormwater and environmental monitoring. KEITH HAYWARD reviews some of the potential applications and examples that are available.

he basic activity of water control of network components such as These different components all Tutilities, of moving water from pumps, valves, and pressure reducers. represent potential markets for suppliers, place to place, is very much about The next layer is the collection and in addition to which there is a design pipes and pumps. But just how communications layer. It includes, for engineering business market segment these physical assets are operated example, data loggers, SCADA, AMI delivering systems to end users. and maintained, and the manage - (advanced metering infrastructure), and Clearly some aspects of this smart water ment of the water that flows through other data transfer technologies.The layer landscape are not new – SCADA systems them, is increasingly about data – does not have direct contact with water, have been in use for a matter of decades, data which can be generated does not create data, and does not carry and there is a considerable installed base constantly and transmitted of smart domestic meters, with some anywhere in the world. 700,000 installed by Lyonnaise des Eaux This data allows what have been The potential for smart, in France to date, for example. According dubbed‘smart’ approaches.The core data-driven solutions extends to Frost & Sullivan, as of 2010, $5.8 water sector application of smart beyond water supply networks to billion had been invested in smart approaches to date is in water supply the smart operation of wastewater water grids globally across the various networks.The UK-based SmartWater industry segments. Networks Forum (SWAN Forum) networks, and there are potential That said, smart water is seen as one of defines the smart water network as being applications right through to the the most promising areas for innovation ‘the entire system of data technologies final step of water being returned in the sector, with investor-focused events connected to or serving the water such as the BlueTech Forum and the distribution network’.That translates to the environment, linking WorldWater-Tech Investment Summit into a very wide range of technologies, to environmental monitoring, regularly including smart water as a ranging from flow and pressure meters, for example. core theme. through to SCADA (supervisory, control With expansion coming also in areas and data acquisition) systems and auto - such as cyber security and the integration mated meter reading systems, and right out significant data processing. of analytical tools, Frost & Sullivan has up to management tools such as pump The fourth layer is the management predicted that the investment in smart optimisation software. and display layer, which allows for water grids will reach $22.2 billion by SWAN Forum describes a smart water operator interaction. It includes data 2020, when it is expected that 29% network as comprising five layers, the first repositories, GIS or network visualisation of the installed network length will be of which is the physical layer comprising tools, water balance applications, and considered smart. the components for delivering water, i.e. fixed-rule feedback automation. The potential for smart, data-driven pipes, pumps, valves, pressure reducing The fifth and final layer according to solutions extends beyond water supply valves (PRVs), reservoirs and delivery the SWAN Forum is the data fusion and networks to the smart operation of endpoints. analysis layer, where more sophisticated wastewater networks, such as the The second layer is the sensing and processing of raw data occurs.This may management of stormwater to prevent control layer, comprising equipment and include, for example, hydraulic modelling flooding seen in the French cities of sensors that measure parameters such as systems, network infrastructure monitor - Bordeaux and the Ile de France. Such flow, pressure, water quality, reservoir ing, smart pressure management, and technology can support smart manage - levels, water temperature, acoustic infor - smart (not fixed feedback) pumping ment of water and energy, optimising mation, and equipment for the remote or energy optimisation systems. power use, for example. And there are

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potential applications right through to to the company, the system can also be Japan, for example. DMAs, many of the final step of water being returned combined with its SoundPrint Acoustic which have pressure management to the environment, linking to Fiber Optic monitoring system for facilities, have their inflows measured for environmental monitoring, and so on. detecting wire failures in pre-stressed active leakage control. Pressure Managed concrete pipe. Zones or Pressure Managed Areas form Smart water supply networks Meanwhile, UK-based Syrinix the basis for carrying out active pressure The potential for the wider use of smart has just announced the launch of its management and typically have approaches in water supply networks TransientMinder system for providing inflows metered. stems from the basic value for utilities in real-time pressure monitoring and tran - All of this needs flow and pressure data. knowing how much water is where in sient detection on pipes of all sizes and SebaKMT’s Dx data logger, for example, the system. Bulk water meters and the materials.This uses a web-based graphical allows for the recording of flow and ever-growing use of district metering display to notify the utility user in real pressure data, with the integrated GSM / areas (DMAs) support this. High-end time if a transient is detected. If units are GPRS allowing transmission of daily specification meters include ABB’s placed across a network they can help updates.The life of the internal battery is AquaMaster 3 flowmeter, which has identify the likely source of the transient five years, and the memory allows for been on the market for the last couple of using data from the event and knowledge over one million measurements.The years.The electromagnetic design means of the network. company’s Sebalog P-3 pressure logger there are no moving parts. It features can be used for short-term or permanent GSM/SMS technology to allow access Water loss reduction installations and the determination of to real-time data. It also includes the As these examples suggest, a core applica - pressure surges.The unit offers wireless company’s SuperCap super capacitor tion for smart approaches is the detection data transmission, and can fit onto energy storage technology, which means of physical water losses from distribution underground hydrants. the mains-powered version can sustain networks. Given that leakage from water Noise is another important parameter, continuous measurement and alarm being used in the detection of leaks.The reporting by SMS for up to seven days basic principle is that the noise of water after a power failure, and it has allowed A core application for smart leaking is transmitted along the pipe and for a renewable power version of the approaches is the detection of can be detected.The leak can then be flowmeter to be released, to be driven physical water losses from located using equipment to correlate the by solar or wind power and so opening location from noise signals. SebaKMT’s up use in the remotest of locations, distribution networks. Given that Sebalog N-3 noise logger, for example, while the use of lithium batteries in leakage from water distribution has a network mode offering direct the battery version gives an operating networks can range from less transmission of data by GSM to a control life of up to ten years. centre.The unit can form part of a But the application of smart approaches than 10% for very good cases to Sebalog N-3 network, in which data from has expanded beyond this. For example, more than 60% in the worst cases, up to 50 loggers is sent by each GSM box. sudden changes in pipeline pressure, leakage reduction is a clear area Si gnals from different noise loggers can known as pressure transients, occur in for water utilities to target when be correlated to detect leaks.The compa - supply networks and cause water ham - ny offers a number of field correlators, mer.They are caused by rapid changes in faced with increasing pressure including the Sebalog Corr, which flow velocity, which in turn are caused by on resources and the costs includes a GPS-based leak navigator to events such as pipe bursts, sudden changes associated with expanding direct field staff back to the leak detected. in demand, pumps being started up or Using the N-3 network, the correlation shut off suddenly, the opening and closing the capacity of their water can be done remotely, and a‘SebaCloud’ of fire hydrants or isolating valves, and the resources infrastructure. feature means that data is available in the flushing or draining of mains, for exam - cloud and most functions can be carried ple. Pressure transients can lead to bursts distribution networks can range from out on the cloud data. or the collapse of a pipe, as well as con - less than 10% for very good cases to While leakage is the background, tributing to the progress of more minor more than 60% in the worst cases, leakage pervasive loss of water from the network, damage also, meaning pressure transients reduction is a clear area for water utilities more conspicuous and dramatic loss should be addressed as part of wider to target when faced with increasing occurs through bursts. Indeed, these can efforts to reduce water loss. pressure on resources and the costs also prove costly to a water utility due to Monitoring for transients presents associated with expanding the capacity the third party damage that can arise the challenge that the pressure wave of their water resources infrastructure. because of flooding. Like loss reduction may pass a monitoring point in a fraction Detection of water loss can be carried generally, the frequency of bursts can be of a second. Canadian company Pure out using a survey-based approach, but reduced by pressure management – for Technologies, for example, offers a technology allows for greater automation example, the guideline prediction transient pressure monitoring system of data generation and for a move towards method released by the International that reports a reading every few minutes permanent and remote detection capabil - Water Association’sWater LossTask under normal conditions but samples ities. At the same time, the network Force, now theWater Loss Specialist at up to 100 samples per second when pressure can be managed to help control Group, in 2006 was for the percentage a transient occurs, allowing accurate leakage, something that has been done reduction in bursts to be, on average, pressure readings to be plotted. According for the last 30 or so years in the UK and 1.4 times the percentage reduction in

10 • WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 TECHNOLOGY

maximum pressure.The large volumes Itron’s product range includes its available to other utilities through a that can be lost, not to mention the Cyble communications module and its separate company, Fathom is‘the only potential for service disruption and Aquadis+ residential meter, which is pre- geo-based real-time presentment plat - for third party damage, means there equipped with Cyble. It offers network form in the market, and the only vehicle is a strong incentive to respond to communications technologies, including available that allows customers to track bursts quickly. its EverBlu range comprising meter their own consumption in real-time’, Bursts are very much a focus of interface units, collectors and district- according to the company’s website, Trunkminder, the core technology level access points.The company also which adds that Fathom‘is the smartgrid available from Syrinix, which has been in offers software, including itsWaterMind for water’. Fathom is a smartphone use by the UK’sThamesWater since early software, which can process data lower application built on use of the three core 2012.This is a fixed acoustic burst alert - down the network, and higher level water utility databases: water volumes, ing and leak detection system for use on management software such as the geospatial information, and customer water mains of 12 inch / 300mm and Itron Enterprise Edition Meter information. It provides customers with above pipe diameters. Units are deployed Data Management. real-time information on water prices on the mains network. Constant moni - Itron also recently announced the and the water use of their peers, and it toring allows small leaks to be detected launch of its ItronWater Analytics pack - provides a way to motivate customers to within one metre, while it also sends modify their behaviour, including, for automated alarms regarding bursts to example, using text messaging to notify control centres or individuals. Syrinix not Smart metering holds customers when their consumption is only supplies the equipment but provides considerable promise in the reaching a higher price band. From the the data analytics as a service. power sector, including use of utility’s perspective, the application is attractive as it addresses the critical barri - Smart customer metering time-of-day tariffs to shift usage ers to adopting smarter approaches of a Another main area where there is consid - patterns, but there is potential too lack of capital, a lack of IT infrastructure, erable potential for smarter approaches – in the water sector. and risk aversion. From GlobalWater’s and where there has been for many years perspective, the offering is founded on – is in the metering of customer use, selling an economic model based on especially domestic customers.The age in North America, which it describes efficiency competing with the utility’s industry has seen a move towards greater as including a data store optimised for own practices. GlobalWater Resources use of automated meter reading (AMR) analytics, business intelligence dashboards has just sold a majority interest in using vehicle-based radio-frequency and water utility-specific analytics. Fathom to XPV Capital and other systems, for example, but such approaches According to Itron, the package provides investors through a partnership structure do not deliver live data back to the utility. revenue protection, district metering, to support growth of the product. Systems which do, automated systems flow analysis and trending and forecasting known now as advanced metering infra - modules and is pre-integrated with A focus on non-revenue water structure (AMI), are not new either: for the company’s ChoiceConnect Efforts to reduce physical losses from example, what was said to be the world’s system architecture. water networks, especially from leaks and largest fixed system, of 74,000 meters This gives an indication of how such bursts, form part of a wider concern for supplied by the Arad Group, was in use in systems open up new opportunities for water utilities: the need to reduce non- the Israeli town of PetachTikva from the utility concerned.They also open up revenue water (NRW), i.e. the volume of 2004. new opportunities for customers too. water that is put into a supply network One of the companies currently enjoy - Smart metering holds considerable but for which no payment is received. In ing success with AMI is Itron, which promise in the power sector, including this respect, the work of the IWAWater announced in April that Spanish water use of time-of-day tariffs to shift usage Loss Specialist Group deserves particular utility Aguas deValencia had awarded it a patterns, but there is potential too in the attention as it has provided a conceptual contract for the deployment of 100,000 water sector. Even the PetachTikva framework for addressing NRW – the water meters and communication mod - example dating back to 2004 mentioned IWA standard water balance. ules, fixed network infrastructure and above allowed customers to monitor their That the standard water balance is a software, to be installed over the next water use online.To what extent such useful tool applied to an ever-increasing five years.This follows a pilot for 5000 approaches are needed in preference to, extent around the world emphasises the premises. Itron also announced an AMI say, customer education remains to be fact that having smart systems is not an contract for 19,500 communication seen, but demand management is certain - end in itself but is about what they can modules for the City of Olympia, ly an important dimension of smarter achieve.Those end results may be Washington, USA, with a fixed network water management and more obvious achieved by applying technology, but to cover most of the utility’s service area. opportunities include use of seasonal the standard water balance provides an The company continues to see uptake tariffs to moderate watering of gardens. example of the importance of manage - of AMR too, announcing early this year A good illustration of how new oppor - ment approaches too. Such management that almost 400,000 Itron water commu - tunities for smarter approaches can open approaches can be applied by water nication modules are to be installed for up is provided by the Fathom product utilities directly, but they can underpin residential and commercial customers developed by US utility company Global companies providing commercial ser - of LasVegasValleyWater District over Water Resources. Initially developed for vices.Water efficiency company Miya, the next five years. its own use, but subsequently made for example, specifically acknowledges

WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 • 11 TECHNOLOGY

that its approach is based on the best- given to the real-time monitoring of the company describes as being‘sensor practice methodology of the IWA water quality.This includes monitoring and system agnostic’, collects data from water loss activities, and so underpins, of raw water sources and the water put different sources and provides an early for example, its ten-year contract with into supply, as well as monitoring of the warning system. In addition,Whitewater’s theWater and Sewerage Corporation water that is in the supply network. WaterWall software platform brings of the Bahamas that was awarded last Unsurprisingly, interest in such real- together data from right across a utility’s year. Under the contract, which was time monitoring has a strong focus network and presents it, via a centralised valued when announced at $83 million, on water security. server, to a multi-screen display. As part leakage is expected to be halved in the Austrian company s::can, for example, of this,WaterWall can provide an event first five years. offers its range of UV-visible spectrome - management system, bringing together Having said this, data, and systems for ter probes, including its spectro::lyser visual, spatial, water quality and toxicity gathering and processing it, are integral system.The company’s application list data in real time and guide an operator to an overall effective approach.The IWA includes, for example, a water quality through a response to a contamination water loss framework identifies four main and security network for the City of event. As of last year, users ofWaterWall technology-based approaches to reducing Vienna and for the City of Glendale, included the cities of Akron (Ohio) and water loss which includes opportunities Arizona, USA, and intake protection Philadelphia in the USA and the for greater use of data-driven approaches: and distribution security monitoring Mekorot and Hagihon (Jerusalem) active leakage control using both acoustic for the MassachusettsWater Resources utilities in Israel. and software-based methods; pressure Authority and the City of Philadelphia Water security is a particular concern management; the speed and quality of Water Department, both in the USA. in the USA, and the US Environmental pipe repairs; and the renewal of pipes. Veolia company Endetec launched its Protection Agency has recently made Miya’s approach includes, for example, Kapta sensors last year based on minia - public its report on theWater Quality use of DMAs and NRW management turised semiconductor sensors.The Kapta Event Detection System Challenge, software that draws on network data. 2000 AC2 module is an in-line sensor which it initiated in 2008 as part of its It is also important to note that reduc - designed to measure free chlorine (as Water Security Initiative.Whitewater and tion of NRW is not just about reduction hypochlorous acid) and temperature in s::scan were both voluntary participants of physical losses. As the IWA standard pressurised pipes, while the Kapta 3000 in that, with theirWaterWall and ana::tool water balance sets out, consumption that AC4 module measures free chlorine, products, respectively. Other participants is authorised but unbilled forms a part of were Sandia National Laboratories and NWR. Also, apparent losses occur due to While most focus to date for EPA, with the Canary system, OptiWater, unauthorised consumption and because with its OptiEDS system, and Hach of customer meter inaccuracies as well as smart water systems has been on Company, with its Event Monitor system. billing and accounting errors. According the flow and quantity of water, The main conclusions set out in the to the IWA framework, apparent losses increasing attention is being given report are: that water quality event detec - can be addressed as four components: tion can provide valuable information to customer meter inaccuracies, including to the real-time monitoring of utility staff; there is no‘best’ EDS; there is meter accuracy error and meters not water quality. This includes a strong influence of background water registering the volumes passing; monitoring of raw water sources quality variability, and that the character - unauthorised consumption, including and the water put into supply, as istics of the water quality change impacts theft and illegal consumption; errors in the ability of an EDS to detect the data transfer between the meter and the well as monitoring of the water that change; and that changing an EDS’s utility’s billing system; and data analysis is in the supply network. settings can impact alerting – generally, if errors between archived data and the Unsurprisingly, interest in such a system is reconfigured to reduce invalid data used for billing or calculation of the alerts then this also reduces the detection water balance. real-time monitoring has a strong sensitivity. Clearly smarter approaches have a role focus on water security. According to Hach’s website, the to play here, with newer systems, especial - company now offers an improved Event ly higher-end ones, helping reduce errors conductivity, pressure and temperature. Monitor, which it says is now smaller, and inaccuracies. Specific functions can According to the company, the latter has lighter and more robust.The company include the use of alarms if a meter is been specifically developed to improve also offers its GuardianBlue Event being tampered with or does not control of drinking water distribution Detection System which, the company appear to be functioning correctly. Also, networks, allowing real-time monitoring, says, is the only system certified and traditional water meters become less detection of the changes in water quality designated by the United States accurate with age, but rather than simply commonly caused by leaks, corrosion and Department of Homeland Security as an replacing meters on the basis of age, biofouling, as well as allowing disinfec - approved security product for drinking software can be used to optimise the tion process optimisation. water. Hach also offers CityGuard, which replacement programme. Meanwhile, Israeli company it describes as‘a security network portal, Whitewater offers water quality options command center and real-time water Water quality at different levels. Its CheckLight Online monitoring system’. While most focus to date for smart water system is a bacterial luminescence-based systems has been on the flow and quanti - real-time toxicity analyser for a range of High-level management tools ty of water, increasing attention is being toxic agents. Its BlueBox software, which The CityGuard portal provides an

12 • WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 TECHNOLOGY

example of the fifth, top-level layer in achieved, and an even higher percentage there should be a greater move towards the SWAN Forum framework. Another in relation to catastrophes avoided, saving open standards, noting:‘Such standards notable example is the software-based up to $600 million annually. will be critical to driving smart water service offered by Israeli company Amongst other things, the survey network adoption since many utilities TaKaDu.The company offers a web / gauged opinion as to the factors prevent - remain wary of entering into long, costly cloud-based software-as-a-service to ing the adoption of smart water tech - contracts with individual technology and collect and process water supply network nologies and services. Even given the service providers. Interoperability also data. No capital investment is needed on figures above, the reaction of respondents ensures backup providers and provides the part of the utility – just an IT connec - was that either the business case is not peace of mind that comes from guaran - tion. Data is collected on, for example, compelling, either because the benefits teed continuity of service.’ flow, pressure, GIS data, repair records, are not high enough to justify the invest - The report was of course prepared by a reservoir levels, valve status, and weather. ment or the costs are considered too company with a vested interest in the TheTaKaDu system can then detect, high, or that even if the business case success of smart water networks, but the classify, locate and report on anomalies in was compelling there was a lack of findings nonetheless reflect the fact that the network as they occur, highlighting funding or political will. data has the potential to transform the problems such as leakage, bursts, breaches This is probably unsurprising – smart work of water utilities:‘All of our findings of District Metering Areas, and faults technologies can clearly deliver benefits, on smart water networks point to a with equipment such as meters.The massive opportunity for utilities and information can be brought together could truly revolutionise water distribu - in, for example, reports, web-based ‘Such (open) standards will be tion networks around the world – many dashboards, or planning aids to allow critical to driving smart water of which have remained largely static and immediate actions to be taken, such as network adoption since many untouched for decades.’ G dispatching network maintenance crews or adjusting reservoir levels, or support utilities remain wary of entering Sources and further reading longer-term strategic activities, such as into long, costly contracts with Charalambous, B (2010),Transient pressure fluctuations planning preventive maintenance or individual technology and service and their role in water loss,Water21, October 2010, planning network changes. providers. Interoperability also pp54-55. As of 2012,TaKaDu had applications Hayward, K (2009), Israeli expansion of AMR, in Israel, Chile, Europe and Australia, ensures backup providers Water21, August 2009, p39. and the company recently announced and provides peace of mind that Lambert, A andThornton, J (2011),The relationships that Unitywater, which serves around comes from guaranteed continuity between pressure and bursts – a‘state of the art’ update, 750,000 people in the Sunshine Coast Water21, April 2011, p37. and Moreton Bay regions in Queensland, of service.’ Sensus,Water 20/20 – bringing smart water networks Australia, had placed an initial contract Sensus survey report, 2012 into focus, 2012. for its services to help it achieve further SWAN Forum, A layered view of data technologies for improvements in network efficiency, but the question is: at what cost? And the water distribution network. especially with water loss. global figures do little to help on a case SWAN Forum, Stated NRW (Non-RevenueWater) by case basis. But the report also offered Rates in Urban Networks. Prospects thoughts on how progress can be made, US Environmental Protection Agency (2013),Water Together this wide range of opportunities and these highlight in particular the value quality event detection system challenge: methodology and translates into tangible benefits for water in building a greater understanding findings, Office ofWater (MC-140), EPA 817-R-13- utilities and, as a result, to society at large. amongst all the different actors in the 002, April 2013. Metering company Sensus published sector. Utilities can, for example, help results of a survey of 182 water utilities technology providers establish pilot globally last year and as part of this put solutions and appoint a smart water some values on the potential savings that network champion internally. Regulators Presentations made at World Water-Tech Investment could be achieved by adopting smart could seek to reward improvements in Summits, 2012 and 2013 (including Seth Cutler, Frost water networks. Out of the approximate - operational efficiency. Investors should & Sullivan, Paul-Joel Derian, Suez Environnement, ly $180 billion spent by utilities globally look at the full range of opportunities and Trevor Hill, Global Water Resources). on water supply, estimated savings of $4.6 but apply a results-driven approach. billion could be achieved by reducing Associations should, naturally, provide Websites: leaks by 5% and pipe bursts by 10%.The publicity and promote communication. www.abb.co.uk strategic prioritization of capital expendi - Academia can foster awareness of the www.endetec.com ture that smart approaches allow could potential benefits of smart water solu - www.gwresources.com save up to 15% of capital expenditure, tions. But the report notes too that there www.hachhst.com which translates into $5.2 billion globally. are important roles for technology www.itron.com Operations and maintenance efficiencies providers beyond simply developing the www.miya-water.com could deliver up to $2.1 billion globally, types of solutions described above.They www.puretechltd.com or up to 20% savings in labour and vehi - should of course continue to develop www.s-can.at cle efficiency and productivity. And the products and solutions, but should also www.sebakmt.com report claims that up to 70% of water work to raise awareness, including public www.swan-forum.com quality monitoring costs could be awareness, of the potential benefits. And www.w-water.com

WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 • 13 ORGANISATIONAL MANAGEMENT Supporting non-revenue water reduction with a Change Management Index

German consultancy MACS has designed a Change Management Index to assist utilities in making organisational changes to support process changes as part of non-revenue water reduction programmes. MONIKA KONATAR discusses how the index was developed and outlines the main structure and the methodology, as well as showing other potential scenarios for which the implementation of a Change Management Index can be useful.

easuring and monitoring the efforts fail because employees are not Mperformance of water utilities sufficiently considered at the outset is critical to improve the quality of of the change initiative. Monika Konatar water supply and sanitation services. Benchmarking is emerging as an Background of the municipal water and wastewater important tool that policymakers In order to assess and monitor the infrastructure rehabilitation programme and service providers can use to relative performance of water utilities in Batumi, Georgia.This programme improve performance, support concerning water loss reduction, MACS, was financed on behalf of the German institutional reform, enhance an international consulting company Government by KfW Development accountability to consumers and from Germany which specializes in Bank who contracted MACS to assist ultimately improve services and water as well as energy, has designed the municipality and the municipal water their sustainability (Sharma 2006). a Change Management Index.The utility (BatumiTskali) in strengthening By applying benchmarking, water Change Management Index serves as a their institutional and personnel capaci - utilities gain knowledge about their performance management application, ties while also focusing on the improve - own practice and that of others, thus which helps to plan and manage perfor - ment of technical operation of network improving their standard of man - mance assessments and the monitoring and facilities. agement. It further enables utilities of progress towards the reduction of During that time MACS understood to place an organizational focus on non-revenue water (NRW). It hereby that the appropriate way of tackling high change and provides a direction for specifically focuses on the combination non-revenue water levels cannot be the respective processes, which in of the technical and human dimensions confined to monitoring and improving turn helps to open minds to new by consolidating technical performance technical targets by detecting leaks, ideas, heralding the continuous indicators important for the reduction exchanging obsolete pipe networks and adoption of new knowledge to of water losses and key employee conducting flow and pressure measure - become a learning organization. performance indicators at all levels of the ments.This approach might lead to short- However, until now benchmarking and organization in one effective application. lived improvements, but it provides no performance measurement in the water The NRW Change Management basis for sustainability, so instead MACS sector mainly focuses on operational Index is built on experiences from many followed a holistic approach by applying indicators, such as collection rates and water utilities in developing countries, complementary change management water meters installed, and purely particularly the NRW programme principles with a focus on the human technical indicators, such as percentage implemented under the framework dimension, particularly addressing staff of non-revenue water (NRW), quality of supply or quality of infrastructure. Performance improvement and operational change are simply measured by a fluctuation in the values of these indicators.This approach, however, ignores the fact that performance improvement and change have an institutional and human dimension as well.The change within the operational dimension always requires a change from a human development perspective in order to ensure long-term sustainability. There is sufficient evidence from practice to show that the overwhelming percentage of organizational change Figure 1: The main structural components of the Change Management Index

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attitudes and performance. Change management is known as a systematic, analytical approach that enables business ‘transformation’ by encouraging positive changes.This includes increasing compe - tence and productivity as well as improv - ing the employees’ performance at all organizational levels (Konatar & Hitzel, 2011).To MACS, understanding change means that employees from all organiza - tional levels have to become actively involved in the process of transformation and in the many decisions that change requires. Unless there are qualified employees to design and implement change, technical improvements alone will not produce desirable results. Therefore, any positive development depends mainly on the actions of people that are involved. For that reason, the NRW Change Management Index consolidates technical and psychological indicators to create a lasting effectiveness of opera - Flow measurement by the Batumi Tskali NRW project team. Credit: MACS. tional performance improvement pro - grammes, which can only be achieved if tional performance figures derived from The values for the psychological indica - the two areas are successfully combined. the utility’s records. tors are derived from semi-structured The psychological area combines interviews with a defined sample of Structure of the Change indicators from the three organizational utility employees from different levels of Management Index or hierarchical levels of a company: the company’s hierarchy combined with The structure of the Change senior management, middle management an observation of employees during their Management Index is designed to help and lower (operation) management. everyday work. By carrying out compre - track the progress in performance during The psychological indicators capture a hensive observations, staff’s attitudes to the implementation of a NRW reduction combination of attitudes, behaviour and change can be monitored, as can be strategy and the technical as well as skills – crucial determinants that carry formal and informal relationships within psychological factors involved in it. success at each organizational level.The the company. Based on this an employees’ To combine the technical and the organizational levels are chosen based on performance evaluation sheet is devel - psychological perspective of a NRW existing literature regarding organization - oped. It addresses the most important reduction strategy a number of indicators al structure and types of management areas of the work place, like interactions / of both areas are grouped in different levels. All organizations have a certain communication, personal behaviour, categories. Each set of indicators focuses management structure determining planning and organizing, quality and on a specific topic and indicates what is relationships between the different activi - quantity of work, leadership and required being achieved while pointing to aspects ties and staff members by assigning and technical knowledge. of performance that may require further subdividing roles and responsibilities to The main reasons that indirect observa - improvement. It is important to empha - carry out different tasks.Therefore, the tions were chosen instead of formal size that these indicators reflect whether indicators at different levels of the com - structured interviews was that during its or not progress is being achieved over a pany hierarchy are different in proportion consulting experience MACS learned certain period of time. and in focus. For instance, indicators that more direct ways of communication Indicators from the technical area fall relating to senior management combine could potentially create tensions and into four main categories: water balance, factors which are more focused on plan - increase fear and resistance to change. In target setting, DMAs (district metered ning strategic issues but less on directing addition, experience showed that formal areas) strategy (or application of DMAs) function. On the contrary, lower manage - communication would not provide and NRW monitoring.These four main ment combines indicators more focused relevant and correct answers. As the categories were selected following IWA’s on giving directions and work orders and strong relationship component usually approach to NRW along with existing less on planning. plays a very important role between technical literature on the topic and Consequently, the psychological employees within any organization, many MACS’ understanding from relevant area provides the means for evaluating would respond by portraying an idealistic experience.The technical indicators the performance of the workforce in picture of the work atmosphere during reflect the implementation level of a way that reflects how much effort interviews.That would lead to false specific procedures, which together set employees put into their work and conclusions.Therefore, a more informal the path for sustainably reducing NRW. also their attitudes and commitment way of communication is chosen in order The values are based on verifiable opera - to the organisation. not to strengthen the potential resistance.

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only a technical problem of network rehabilitation, but rather an organization - al challenge which includes the motiva - tion of staff to commit themselves to these goals, the Change Management Index becomes a useful framework in the planning and execution of work activities. G

References Farley, M (2008),The Manager’s Non RevenueWater Handbook – A Guide to UnderstandingWater Losses. Ranhill utilities Berhard and USAID. Gilbert, J (2009),The Change Management Life Cycle; InvolveYour People to Ensure Success. Retrieved from: www.batimes.com, Last accessed: 05/03/2013 Konatar, M and Hitzel, H (2011), Management of change – Coping with non-revenue water in a Georgian water utility.Water Utility Management International,Vol 6 No 4 ISSN (online) 1747-776X. Management Study Guide. Levels of Management. Retrieved from: www.managementstudyguide.com, Last accessed: 06/03/2013 Implementation of water supply works in Batumi, Georgia. Credit: MACS. Parena, R and Smeets, E (2001), Benchmarking initiatives in the water industry.Water Science and MACS defined scales for each of the analytical tool to identify obstacles of Technology,Vol 44, No 2-3, pp 103-110. IWA indicators and assigned weight to each change and help utilities to define and Publishing. category and indicator with the intention take steps to achieve necessary changes Pybus, PJ and Bhagwan, JN (2000),TheWater of providing a reliable analysis that results in the field of NRW work, the index has Institute of Southern Africa Benchmarking in Municipal in the calculation of a single consolidated the potential to become a versatile tool Water Services Practice.WISA Biennial Conference value (measured from 0 to 100%) for the for water utilities, financing institutions Proceedings 2000. index.The overall index thus reflects the and consultants. Besides managing Sharma, A (2006), UrbanWater Sector in South Asia current status of the utility within a change it allows for the prediction of – Benchmarking Performance. Retrieved from: programme of operational change, in this the cost effectiveness of NRW www.wsp.org case regarding the reduction of NRW. programmes and the monitoring of Vermersch, M and Rizzo, A (2009), Change The value can be evaluated over a select - their realization. A key feature of the management as an indispensable component when ed period of time (and at defined inter - NRW Change Management Index planning for NRW control.Water21, February, p51-53. vals within this period) and thus provides is a systematic evaluation of water an insight to be able to follow up and utilities with respect to their‘readiness’ This paper was presented at the 5th IWA measure the effectiveness of a water to make good use of NRW reduction International Conference on Benchmarking and utility’s strategy towards NRW.The index programmes.The higher the value Performance Assessment of Water Services, held in as such provides the key information of the Index is, the more likely it is Medellín, Colombia, 9-12 April, 2013. needed to define the efficiency and that an NRW programme will lead to the effectiveness of the delivery of services desired results justifying the investment. by a utility. Contrary, lower values of the index should lead decision makers to be Application of the Change suspicious regarding the achievable Management Index results. Over time this approach may The Change Management Index is a reduce the number of failed NRW goal-oriented performance management programmes and eventually NRW application that allows water utilities management may be realized in the to focus their activities on specific framework of performance contracting, business results. In this case the focus where contractors are rewarded in is on the reduction of NRW.Through accordance with specified savings goals. the integration of the technical and At the moment, the NRW Change human dimension the NRW Change Management Index is of particular Management Index gives a holistic interest for utilities which already have picture of a utility’s NRW management an understanding of the underlying About the author: approach and thus overcomes existing framework for change initiatives and Monika Konatar is a Human Resource shortcomings of one-dimensional identified required outcomes or goals Development Expert at MACS Energy & Water technical NRW audits. of such change. For those who have GmbH, Frankfurt, Germany. Email: [email protected]. Although first developed as an recognized that reducing NRW is not

16 • WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 NETWORK MANAGEMENT Determining the Critical Importance Index of a system’s circuits: the case of Empresas Públicas de Medellín E.S.P.

Managing a secondary water distribution system requires a significant level of efficiency and the use of indicators is essential to assess the system’s performance. MARÍA PATRICIA SALAZAR GIRALDO and TATIANA LÓPEZ RESTREPO present a proposal for a system of indicators that can be used to estimate the value of the Critical Importance Index of the various sections of a system and apply the method to the example of the Colombian utility Empresas Públicas de Medellín E.S.P.

mpresas Públicas de Medellín The water distribution area (WDA) is María Patricia Salazar Giraldo (TOP) E(EPM) is a Colombian public the department responsible for the SWD Tatiana López Restrepo (BOTTOM) utility providing residential water process. It has a system divided into 86 services to over three million management areas called circuits, which inhabitants in the municipalities are the largest control units, whose main of Caldas, Envigado, La Estrella, characteristic is that they have only one Sabaneta, Itagüí, Medellín, Bello, entry or supply point from the tank. Copacabana, Girardota and Barbosa, The infrastructure includes 3349km of all located in a geographical area pipe network, 31,676 gate valves, 5456 known as the AburráValley. The hydrants and 555 pressure regulating secondary water distribution stations, among other elements. (SWD) process is part of this The water supply service belongs service’s value chain, and its to the category of what is nowadays goal is to transport drinking known as‘lifelines’ because it is part water from the storage tanks of the infrastructure that is essential for to the users’ meter point, while the harmonious development of society. meeting the required standards. Moreover, the law mandates that the service be provided with a high quality and efficiency, to ensure the satisfaction Manantiales Water Purification Plant. Credit: EPM Group. of its users and added value to the various stakeholders. The SWD system is a complex system, since its performance is affected by multiple factors that vary through time and space.These factors are associated with the characteristics of the infrastruc - ture and the conditions under which it operates and is maintained, with the territorial processes, land use and use habits of the population having a impact, along with the geotechnical and geomorphological characteristics of the sites where the infrastructure is installed, among others. In other words, the system is subject to various threats and their involvement, to a greater or lesser extent, is based on the infrastructure’s vulnerability and the process’ responsiveness to events.This is why the service must be provided in such

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Methodology used Primary distribution pipe. Credit: EPM Group. In order to meet the goal of the project, the project’s methodological focus was as follows:

Information collection and analysis stage During this stage, the basic information related to the process’ purpose, scope and goals was collected, which are the management indicators that are used internally to monitor, control and improve the process, and that are defined in the Quality Management System (QMS), Balanced Scorecard (BSC), Non- RevenueWater (NRW) tool, andWater Management Indicators (Gesta). In order to complement the context information, survey information was collected from the network and the hydraulic model. Focusing on the infrastructure failure criterion, the network replacement model (Antioquia University 2011) and information on the characteristics of the places where the networks are located were also considered, in accordance with the Land Management Plans (LMPs). Other information that was consulted were the various methods that serve as the basis for calculating the CII, of which we outlined the standardization, linear weighting, fuzzy logic and neural net - works methods, analyzed by Martinez & Marquez (2007). As regards the regulatory aspect, the project focused on the 2005 Resolution 315 from the DrinkingWater and Basic Sanitation Regulating Commission (CRA), which determines the service’s risk level through the aggregation of financial, operational and quality indica - a way that it complies with the regulatory to comprehensively assess the tors.TheTechnical Regulation of the requirements on quality and efficiency, performance of the circuits by DrinkingWater and Basic Sanitation through proper risk management. calculating an overall index that Sector (RAS), specifically Chapter B.7 Management indicators are used in reflects their critical level, called Distribution Networks, was also consulted . the SWD process as they are a useful Critical Importance Index (CII). tool to identify the factors that have a The MIS is based on an indicator Standardization of indicators stage greater effect on it and to determine aggregation scheme through Group The standardization stage consisted of the extent to which its goals are met. Indices (GI).This grouping is made based comparing, completing and defining Since 2008, theWDA has developed on the characteristics that make them the range of indicators, which can be an operational efficiency project, which similar or compatible. According to the summarized in the following steps: identified the need to standardize the value of each indicator, it is rated accord - • The indicators included in the NRW indicators used in the process, and in ing to the defined rating scale, then the tool were checked sequentially to see turn, establish a method for identifying GIs associated with the indicators are if they were in Gesta, QMS, CMI and the most critical circuits, to help calculated and finally the CII of the Resolution 315 determine the order of the required circuit is determined.The result of the • The necessary and required indicators investments and contribute to the estab - CII for a circuit is compared to the others were aggregated lishment of operation and maintenance to establish the order of the intervention. • A comparison was made with the strategies, as part of risk management. In 2013, the intent is to automate the indicators from outside sources and In accordance with the above, the proposal and incorporate a knowledge- some that were considered useful for goal of the project is to formulate a based decision-making model to assess the project were included.These management indicators system (MIS) complex systems. sources were the InternationalWater

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purposes: first, to facilitate consulting, understanding and analyzing the infor - mation, which is tedious, when there is a significant a number of indicators; and secondly, to calculate the CII using one of the consulted methods. Likewise, the premises for developing the software tool were specified, such as: the flexibility of the tool, so that it allows you to select the indicators to calculate; Figure 1: Sources used for indicators the geographic visualization of the Figure 2: Aggregation scheme variables and critical indicators; statistical Association (IWA), the Association of analysis; and disaggregation of the subcircuits.The circuits are the largest DrinkingWater and Sanitation information to facilitate the analysis system control unit with a single point Regulating Entities of the Americas of the factors that contribute to the of entry or flow inlet from the storage (ADERASA) and the International circuit’s criticality. tank.The subcircuits are a division made Benchmarking Network forWater and in the circuits in order to comply with Sanitation (IBNET) Application exercise the minimum and maximum pressure • Other indicators needed to calculate In order support the proposal to use parameters established by the regulations some of the proposed GIs were fuzzy logic to calculate the CII, using a and in order to obtain an optimum level formulated consultancy company that has developed of pressures. • The standardization stage continued a software tool, and because of how An optimization stage has begun with the definition of the descriptions complex it is to include a large number of recently for the system and has redefined for each indicator, bearing in mind the variables in the model, it was decided to its configuration based on two criteria: EPM Methodological Guidelines for prepare an example of how to apply this hydraulic control and sectorization.The the Definition and Management of methodology to calculate the Quality of hydraulic control criterion is focused on Management Indicators Service Index (QSI), using the continuity, controlling the pressures (regulated and • Finally, the management ranges for water quality and pressure indicators.This unregulated zones).The sectorization each indicator were identified, a term exercise was conducted thanks to the criterion will be applied for the purpose that refers to the space between the cooperation of Mr Jorge Eduardo of managing the operation and mainte - maximum and minimum values that Guerra, a professional engineer working nance, so that the circuit is divided into an indicator can take, which can be in theWater Projects Area, who created subsectors that are the basic technical subdivided into several scales, and the programme. management units, with temporary or from which the values to assess the permanent flow measurement, and a achievement of the goals are defined. Results and discussion network size of between 4km and 25km. Information on the SWD process In turn, the subsectors will be divided Aggregation model formulation stage The SWD process is part of the water into operational control units (OCU), In the formulation stage, the conceptual service’s value chain, and its goal is to which are considered to be the minimum proposal for the indicator aggregation transport drinking water from the management elements, with a maximum model was specified.The aggregation was storage tanks to the users’ meter point, network size of 4km, and whose purpose performed in accordance with the char - by coordinating and controlling the is to facilitate investigating the network’s acteristics and classification given to the system’s operation and maintenance. operation and the comprehensive indicators, in such a way that fulfils two The system is configured in circuits and management of the NRW.

SWD process indicators Table 1: Summary of proposed indicators The standardization of the indicators Factor Group Indices (GI) Quantity Indicators Quantity Sub-indicators entailed comparing the indicators that Internal-External Operational Index (OI) exist in the various internal sources, using Water Use Index (WUI) the NRW tool as the basis, as it is the tool Clients Index (CLI) 13 43 that is most complete and most often used.The application was developed by Infrastructure Physical Index (PHI) the NRW Project as a business intelli - Failure Index (FAI) gence solution to monitor and control Hydraulic Index (HI) 12 34 the processes involved in water losses. Answer Maintenance Index (MI) As a result of the standardization stage, Loss Research and Control Index (RCI) 125 indicators were taken from the Operation and Control Index (OCI) different sources: 64 are currently calcu - Investments Index (INVI) 13 34 lated and 61 are not calculated or are not formalized in the consulted sources. Impact Quality of Service Index (QSI) Satisfaction Index (SI) The latter indicators correspond to Financial Index (FI) 9 14 the context information, of which 52 indicators have high or medium ease of

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indicators to calculate the risk of disaster and risk management allowed this study to make appropriate comparisons between the studied countries.This paper also showed how indicators can be used to estimate the risk in other scales, such as an urban centre. Garcia (2006) uses the fuzzy logic method successively to get the value of the vulnerability of an urban system against natural hazards, through the use of indicators.The author starts by assessing the exposure, fragility and responsiveness of each subsystem into which the urban system is classified (natural, technological, social).These values are converted into the data used to calculate the vulnerabili - ty of the subsystems. Similarly, the values of the subsystems are converted into the data used to finally calculate the urban system’s vulnerability.The application of this method was valuable due to the use made of the quantitative and qualitative variables that attempt to reflect the reality of a system that is difficult to model Figure 3: Input variables for the fuzzy logic method mathematically.

Proposed aggregation model implementation, and nine indicators have tions obtained, after a standardization The aggregation model proposed in the low ease of implementation, because the process when there are variables with project meets the goal of making it easier data are not included in information different scales. to consult, understand and analyze the systems or the process is not standardized. Fuzzy logic is defined as a mathemati - information, as this will be guaranteed by The percentage distribution of the cal system that models non-linear func - the flexibility of the software tool, and to sources is shown in Figure 1. tions, which converts inputs into outputs calculate the CII. Figure 2 shows the The following descriptors were defined according to the logical approaches that general aggregation scheme. for each indicator: name, source (regula - use approximate reasoning. It is based on In order to obtain the CII, the indica - tion, reference, internal), code, purpose, the theory of fuzzy sets and on a fuzzy tors that directly affect the result of the formula, unit of measure, measurement inference system based on rules such as GIs were considered: in total there are 13 frequency, geographic visualization, ‘IF THEN GIs containing the indicators that repre - whether the mathematical model applies ’, where the linguistic sent the condition of the infrastructure, or not, current calculation (yes/no), ease values of the condition and consequence the internal and external variables that of implementation (high, medium, low), are defined by fuzzy sets.The rules always affect the system, the process’ response definition of variables (description, convert one fuzzy set into another to events, and the associated impacts. source, unit of measure), management (Martínez & Márquez, 2007). In other words, the CII calculation is scale, and equipment or activity (to which Cardona (2007) proposes a method formulated in such a way that it repre - the indicator applies for monitoring or for gauging the vulnerability and risk as sents a global measure of the risk and consulting). regards risk management in 12 countries risk management in each circuit, and in Latin America and the Caribbean when performing the relative comparison Aggregation model formulation analyzed by the Inter- American between all the circuits, it is possible to In order to aggregate the indicators Development Bank (IDB), based on four identify the order in which they should for the purpose of determining the indicators: the Disaster Deficit Index be analyzed in more detail, and determine CII, different methods can be used (DDI), the Local Disasters Index (LDI), the corrective and preventive actions. as a reference such as standardization, the PrevalentVulnerability Index (PVI), linear weighting, fuzzy logic and neural and the Risk Management Index (RMI). Description of the method to use networks. In the standardization method, According to the author, the PVI and The fact that the SWD system is consid - the values are made to be comparable by RMI indices are‘composite indices for ered a complex system, with inaccurate eliminating the effect of the different aggregating qualitative and quantitative and incomplete information, means that scales in which the variables are calculat - indicators respectively.These indices have the use of fuzzy logic is an appropriate ed, so that the scores obtained are been developed with a multi-attribute methodology for the goal of the project. dimensionless.The linear weighting technique and their indicator compo - Below is a general description of the method consists of giving a weight to nents have been carefully related and steps for applying the method that will each variable and adding the contribu - weighted.’The use of aggregated result in the calculation of the CII.

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Identification of variables For each one of the identified indices and indicators, the input variables for the method must be identified, which in the case of the indices are the indicators that make them up, and for the indicators, the input variables are the sub-indicators. Figure 3 shows the corresponding scheme for calculating the Operational )

Index (OI). At this point, it should be x ( A clarified that only part of the system’s u total sub-indicators will be used to apply the aggregation method, the ones that directly affect the result, according to expert judgment.

Membership functions The next step in the method is to assign a membership function (a type of curve that best resembles the variable’s behaviour), and then a desired value for the indicator is determined in order to Pressure (metres of water column) define the range covered by the variable’s curves. Figure 4: Membership function for the pressure

Rulemaking Application exercise engine, taking into consideration the The rules of the method are constructed In this use case, the quality of the service values that the input variables (indicators) taking into consideration the behaviour provided was calculated on the basis of can take and the values assigned to the to be followed by each variable individu - the input variables, continuity (hours of rules.The centroid method is applied to ally and working together.The number suspension), quality (events) of the water yield the answer for the quality of the of rules to be used depends on the and pressure (average in metres of water service. Figure 5 shows the image of the number of ranges in which they can column). Membership functions were application developed by Guerra (2013). be rated, and depends on the required determined based on the‘Desired values By performing the exercise, we get need for results. As many rules as required for the result ranges’ defined for each a performance analysis tool for the in the model or system will be created. variable in the SI. For illustration purpos - quality of service index, depending es, Figure 4 shows the membership on the variations of the component Results function for the pressure indicator. indicators (quality of service, continuity There are several methods for the The next step was to determine the and pressure). It allows us to change each defuzzification of the membership rules, based on the combination of the one of their values in order to see the function, one of which, the centroid four possible states of the continuity changes in the outcome by changing the method, is commonly used. In this variable, the three for water quality and input data.This same result is what we method, the result that is returned the three for pressure. In total, this yielded intend to achieve with the SI software is the value corresponding to the 36 rules. As an example,Table 2 shows the tool, which will not only report the centre of gravity of the output rules when the pressure is normal and the current condition, but will also enable membership function.The value quality and continuity vary. the analysis of the results with different thus calculated is the Indicator, GI We then proceed to perform the behaviours by the indicators. or CII. defuzzification process in the calculation Conclusions Table 2: Rules for the fuzzy logic method The comparison and standardization process managed to determine a total Continuity Quality Pressure Exit of 124 indicators, grouped into 13 GIs, Excellent Good Normal High quality of the service which can be used to comprehensively Excellent Satisfactory Normal Average to high quality of the service assess the circuits and the system with a Excellent Bad Normal Average quality of the service risk-based approach. Four GIs represent Good Good Normal Average to high quality of the service Good Satisfactory Normal Average quality of the service the condition of the infrastructure, three Good Bad Normal Average to low quality of the service GIs refer to internal or external factors Satisfactory Good Normal Average quality of the service that affect the system, four GIs are Satisfactory Satisfactory Normal Average to low quality of the service related to the administrative and Satisfactory Bad Normal Low quality of the service technical management of the process, Bad Good Normal Average to low quality of the ervice and three GIs correspond to impact Bad Satisfactory Normal Low quality of the service elements. Bad Bad Normal Low quality of the service The SI seeks to provide a consolidated

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Guerra, JE (2013), Development of fuzzy logic application tool. Empresas Públicas de Medellín, Medellín. Martínez, AM & Márquez, CM (2007), Study of indicator aggregation techniques for selecting a new nuclear reactor for Mexico. National Autonomous University of Mexico, México, DF. University of Antioquia (May 2011), Development and implementation of a model to determine the replace - ment ofWater networks and connections. Empresas Públicas de Medellín, Medellín. Empresas Públicas de Medellin E.S.P. (2003), Design Standards Project for EPMWater Systems. Medellín. Empresas Públicas de Medellín E.S.P. (May 7, 2012), Quality Manual Quality Management System Secondary DrinkingWater Distribution Process. Medellín. Empresas Públicas de Medellín E.S.P (July 23, 2009), Methodological guidelines for defining and managing performance indicators. Medellín. García, CE (2006), Fuzzy Logic-based model for constructing indicators on urban vulnerability to natural hazards. Manizales,Thesis (Master’s Degree in Environment and Development): National University of Colombia – Faculty of Engineering and Architecture. Figure 5: Tool for applying fuzzy logic Institute of Environmental Studies. Bogotá DC. International Benchmarking Network forWater and view of the defined indicators, by Distribution Area Boss Sanitation Utilities (IBNET) (2005-2011), IBNET. developing a flexible and adaptable • Jorge Eduardo Guerra Londoño, Retrieved in July 2012, from www.ib-net.org/sp/. software tool, invoking the IWA Water Projects Area Professional Ministry of the Environment, Housing andTerritorial concept: even if there are a large number • Engineers and technical staff of the Development – Regulatory Commission on Drinking of indicators, the goal is to provide a following work teams:Water Supply Water and Basic Sanitation (2005), Resolution 315 of broad understanding of the system. MaintenanceTeam,Water Supply Loss 2005. Bogotá DC. The references that were analyzed, Research and ControlTeam,Water Ministry of the Environment, Housing andTerritorial such as Cardona (2007) and García Networks Operations CenterTeam, Development – Regulatory Commission on Drinking (2006), allow us to conclude that it is Non-RevenueWater ProjectTeam, Water and Basic Sanitation (2000),Technical Regulation feasible to calculate the CII of the circuits Management and Operations Support of the DrinkingWater and Basic Sanitation Sector-RAS using aggregated indicators, and that this Team. 2000. Bogotá DC. value is a general or approximate measure • Water Operation and Maintenance of the risk, which can be used to carry • Deputy Management Office This paper was presented at the 5th IWA out the relative comparison between the • Water Computing Unit International Conference on Benchmarking and circuits, in order to identify the order in • MetropolitanWater Management Performance Assessment of Water Services, held in which they should be acted upon.The • Water Management Medellín, Colombia, 9-12 April, 2013. method for calculating the CII can be fuzzy logic, as the problem to solve is Acknowledgements for a complex system. Alegre, H, et al. (2006), Performance Indicators for In the future, the SI will be able to Water Supply Services (2th edition). London, UK: adapt to the management of other IWA Publishing. control units different from the circuits, Aquadatos SAS (March 2011), Study of the such as subcircuits and operational con - secondary drinking water distribution system operated trol units.This will allow for a better by Empresas Públicas de Medellín E.S.P. in the Aburrá approach to the work and investments to Valley and the designs of some of the circuits. Empresas be made in theWDA, bearing in mind Públicas de Medellín, Medellín. that the information required for imple - British Standards Institution (2008), Activities About the authors: menting it must initially be available. G relating to drinking water and wastewater services – María Patricia Salazar Giraldo is a Civil Guidelines for the management of drinking water utilities Engineer and Water Maintenance Professional at Empresas Públicas de Acknowledgements and for the assessment of drinking water services (First Medellín E.S.P., Medellín, Colombia. In order to develop the project, we ed.). London, UK: British Standards Institution. Email: [email protected]. counted on the collaboration of the Cardona, OD (2007), Disaster risk and risk following EPM officers and departments: management indicators: program for Latin America and Tatiana López Restrepo is a Civil Engineer and • JorgeWilliamTirado Ramírez, the Caribbean; summarized report, Inter-American Training Professional at Empresas Públicas Water Projects Deputy Manager Development Bank – Felipe Herrera Library, de Medellín E.S.P., Medellín, Colombia. Email: [email protected]. • Fernando Cálad Chica,Water Washington, DC.

22 • WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 PERFORMANCE Adapting performance indicators for Mexican water utilities

Many Mexican water utilities face a need for institutional development and modernization of their management, which requires a set of practical, specific indicators for assessing the impact and evolution of corresponding policies, in order to establish some target values and make this information transparent and easily accessible. VELITCHKO TZATCHKOV, VICTOR HUGO ALCOCER-YAMANAKA and VICTOR BOURGUETT-ORTIZ describe the results of a benchmarking study that has been running across Mexico since 2005, where 29 project-specific indicators have been used to monitor the performance of 171 utilities. n important challenge currently Afacing Mexico is how to ensure an adequate and affordable water service for its urban population, while improving its ability to protect the ecosystems on which it depends. The Government of Mexico regards the water sector as a matter of national security. Poverty classifica - tion in Mexico takes into considera - tion the access to and quality of public services received, and the provision of adequate water supply and sanitation is considered an Figure 1: Number of water utilities participating in PIGOO (2005-2012) important element in the quest to reduce poverty. services to urban areas, the rest to urban programmes have been related mainly In recent decades important progress and rural areas, and 637 water utilities to improving water metering, operating, has been made as regards to water supply serve cities with more than 20,000 commercial and collection efficiency, and sewerage coverage levels. According inhabitants. system information (water user database to INEGI (Instituto Nacional de Many Mexican water utilities face a and cadastre), urban wastewater treat - Estadística y Geografía), the Mexican need for institutional development and ment, and reducing the cost of the water National Institute of Statistics and modernization of their management, and produced and the number of water utility Geography, there exists in Mexico 2517 improvement of the service provided to employees. However, progress has been water utilities, providing water, drainage the population.The Federal Mexican uneven and many water utilities are and sanitation from towns and small cities Government supports that process with unprepared for the task. It has been to multimillion population mega cities. different programmes. In recent years, important to define a panel of practical 1302 of those water utilities provide the principal public policies in those indicators for assessing the impact and

Velitchko G. Tzatchkov Victor Hugo Alcocer-Yamanaka Victor J. Bourguett-Ortiz

WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 • 23 PERFORMANCE

percentage of infrastructure information verified recently • Mains rehabilitation (%/year), expressed by the percentage of transmission and distribution mains rehabilitated per year – the same as IWA’s indicator Op16 • Service connection rehabilitation (%/year), expressed by the percentage of service connections replaced or renovated per year – the same as IWA’s indicator Op20 • Continuity of supply (%), expressed by the percentage of service connections with a continuous 24-hour a day and 7-day a week drinking water service • Source water metering (%), expressed by the percentage of metered water intakes • Customer water metering (%), expressed by the percentage of service connections with functioning water meters – the same as IWA’s indicator Ph12 • Wastewater treatment coverage (%), expressed by the ratio between the volume of water treated and 70% of the water produced, multiplied by 100 Figure 2: Geographical location of the cities participating in PIGOO in 2012 • Per capita water produced (litres/person/day), obtained by evolution of those policies, to establish IWA Manual for Performance Indicators dividing the total volume of water some target or standard values for them, forWater Supply Services (Alegre et al., produced by the city population and at the same time to make this infor - 2006), theWorld Bank (Yepes and • Per capita water consumption mation transparent and easily accessible Dianderas, 1996) and the Asian (litres/person/day), obtained by for different institutions in the country, Development Bank (McIntosh and dividing the total volume of water and for the public in general. Yniguez, 1997) indicator directives. effectively consumed by city population This paper describes the results of a Then, instead of adopting directly • Hours with water supply (hours/day) study carried out to explore this at the one of those systems, the following (applicable to systems with intermittent Mexican Institute ofWaterTechnology project-specific indicators were defined: water supply) which has been running since 2005, • Customer database updating (%), named PIGOO from the title of the Operational indicators: expressed by the percentage of project in Spanish‘Proyecto de • Updating of infrastructure asset customers verified as active Indicadores de Gestion de Organismos information (%), expressed by the • Customers that pay on time (%), Operadores’ (Project for Management Indicators forWater Utilities). A free access website (www.pigoo.gob.mx) that displays the evolution of these indicators for the participating water utilities was created and is continuously updated. A first version of PIGOO was reported by Bourguett-Ortiz andTzatchkov (2007). In 2005 it included 12 indicators and 50 water utilities. Since then, PIGOO has evolved to contain in 2012 29 indicators for 120 water utilities (Figure 1).The total number of water utilities that have been participated in PIGOO since 2005 is 171.

The study method As a first step the appropriateness of existing performance indicator systems for this study was assessed, such as the Figure 3: Global efficiency of several Mexican water utilities in 2011

24 • WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 PERFORMANCE

annual volume of water produced Table 1: Information requested from participating cities • Working ratio (%) (ratio between total yearly expenses and total yearly revenue) No. Data Units • Investment ratio (%) (percentage of city 1 Number of registered service connections Gross Domestic Product employed by 2 Number of registered service connections verified in situ the water utility for investment) 3 Number of service connections with a 24-hour water service • Ratio between the unit cost of water 2 4 Size of the city water distribution network km , km produced and water tariff (-) 5 Size of the city water distribution network verified in situ and updated in maps km 2, km 6 Length of pipes replaced or repaired per year Km 7 Number of service connections rehabilitated per year Efficiencies: 8 Mean duration of water supply (applicable when water supply is intermittent) hours • Physical efficiency 1 (%), expressed by 9 Number of operating user water meters the ratio of volume of water consumed 10 Number of supply sources and volume of water produced 11 Number of supply sources with operating water meters • Physical efficiency 2 (%), expressed by 12 Number of leaks occurred and repaired the ratio of volume of water billed and 13 Total number of water utility employees 14 Number of water utility employees dedicated to leak repair and control volume of water produced 15 Number of customer complaints • Commercial efficiency (%), expressed 16 Number of customers that pay on time (within two months) by the ratio of the volume of water paid 17 Number of customer served by water trucks by the users and the volume of 18 Water service coverage % water billed 19 Sanitary drainage service coverage % • Collection efficiency (%), expressed by 3 20 Annual volume of water produced m the ratio of revenues to amount of 21 Annual volume of water consumed m3 22 Annual volume of water billed m3 money billed 23 Annual volume of water paid m3 • Global efficiency (%), obtained by the 24 Annual volume of treated wastewater m3 product of the Physical efficiency 2 and 25 Annual amount of money for water service billed $ the Commercial efficiency of the 26 Annual amount of money for water service collected $ water utility 27 Mean water tariff $/m 3 28 Annual total amount of money collected (includes water, sanitary drainage and wastewater treatment) $ As explained, eight of these indicators 29 Total annual expenditure $ coincide with the corresponding IWA 30 Annual expenditure for operation, maintenance and administration $ indicators (Alegre et al., 2006).The rest 31 Total annual investment in infrastructure $ of them differ from the IWA indicators, 32 Annual investment received from federal programmes $ and were defined mainly by taking into 33 Population served Persons consideration the availability in Mexican 34 Mean number of occupants per home Inhab./home water utilities of data for their comput - expressed by the percentage of expressed by the percentage of ing, and the ease of obtaining such data. customers paying within two population with service connections – The reason of having two indicators for months after billing similar to IWA’s indicator QS4 Physical efficiencies is that Physical • Percentage of customers supplied by • Sanitary drainage service coverage (%), efficiency 2 is much easier to be comput - water trucks (%) expressed by the percentage of ed, given the available data in most water • Customer complaints (No. population with connections to utilities. In 2012, 171 Mexican cities complaints/1000 connections/year), sanitary drainage were invited to participate in this study, expressed by the mean number of • Mean water loss per length of pipe and 120 accepted.The annual data shown complaints per every 1000 service (m 3/km/year) – the same as IWA’s inTable 1 for the years 2002 to 2012 connections per year – the same as indicator OP24 was then requested from each participat - IWA’s indicator OS26 • Mean water loss per service connection ing city.These cities cover all of the • Employees per connection (No./ 1000 (m 3/connection/year) – the same as Mexican states and the different climatic service connections) – the same as IWA’s indicator OP23. zones across the country, which vary IWA’s indicator Pe1 from dry desert and semi-desert • Number of employees dedicated to Financial indicators: regions in North Mexico to humid leak control (1000 x No. • Unit running cost (Mexican pesos/m 3), subtropical regions in South Mexico. employees/No. leaks) obtained by dividing the annual Figure 2 shows the geographical • Population water service coverage (%), running cost of the water utility by the location of the cities, as they appear in

Table 2: Conditions for access to federal funds for building new infrastructure in Mexico based on performance indicators

Per capita water produced Commercial efficiency Physical efficiency 2

Less than or equal to 250 l/person/day More than or equal to 65% More than or equal to 50% More than 250 l/person/day More than or equal to 80% More than or equal to 50%

WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 • 25 PERFORMANCE

A fragment of the Rio Colorado - Tijuana pipeline (North Mexico). Pumping station at Grijalva river (South Mexico). www.pigoo.gob.mx.The level of Some of the performance indicators that Results and discussion reliability for each of the data given reports PIGOO are used by the Federal The values of the performance indicators inTable 1 was also requested, according Mexican Government as a decision- vary greatly between city utilities, mainly to its origin and accuracy, classifying making tool and as conditions for access due to their diverse technical, commer - them in three levels (Alegre et al. 2006): to financial support for water utilities, as cial, financial and administrative compe - explained in the corresponding rules of tencies. As an example, Figure 3 shows • *** Highly reliable data source: data operation of federal programmes (DOF the value of the indicator‘Global effi - based on sound records, procedures, 2013). For example, 40 percent of the ciency’ for 73 water utilities in 2011.The investigations or analysis that are funds in those programmes can be used title of most efficient water utility for that properly documented and recognized for increasing water service, sanitary year was awarded toTecate (64,764 as the best available assessment methods drainage, and wastewater treatment inhabitants), in the state of Baja • ** Fairly reliable data source: worse coverage only if the values of the corre - California, with 81.8% global efficiency, than *** but better than * sponding indicators are less than 94%, 93% and the national mean global efficiency • * Unreliable data source: data based on and 70%, respectively. New infrastructure was 47.85%. Besides PIGOO, other extrapolation from limited reliable can be build, using those funds, only if the institutions in Mexico compute perfor - samples or on informed guesses conditions given inTable 2 are met. mance indicators, for example the NationalWater Commission (Comisión Nacional del Agua), and PIGOO displays some of them. Figure 4 shows the evolu - tion of the national mean of the same indicator for the years from 2002 to 2011, computed by PIGOO and by the NationalWater Commission (taken from Conagua (2011)), as it appears in www.pigoo.gob.mx.The difference between the values obtained by both systems is attributed to different data and different ways of computing the indicator, and the homogenization of all the computation criteria and data employed is still a challenge in Mexico. Figure 5 shows the value of the indicator‘Per capita water produced’ for 115 water utilities in 2011.Table 2 shows the most recently computed mean values for the performance indicators, their desirable or target (benchmark) values, where applicable, and in the last column the starting value for 2002.The arrows in this column indicate if the corresponding indicator has increased, decreased, or mainly maintains its value. The first performance indicator in particular shows an important weakness Figure 4: Evolution of the national mean of the indicator ‘Global efficiency’ 2002-2011. in the sector’s performance: poor service

26 • WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 PERFORMANCE

quality as measured by a the percentage of service connections with continuous 24-hour a day supply, that decreased from 75.78% in 2002 to 71.49% in 2011, probably due to ageing and deficient maintenance of the infrastructure. Many water utilities practice staggered service, that is, some weekdays they supply some neighbourhoods and the rest of the week other city sectors.To overcome the inconveniences of being with no tap water, users are encouraged to have a water tank on the house roof, cistern, or other permanent deposit at home. This house addition provides families a water reservoir in case of supply breaks. Its need varies considerably from one neighbourhood to another and from one city to another. The level of updating of infrastructure Figure 5: Per capita water produced in several Mexican water utilities in 2011 asset information decreased by some 6 points but the updating of water user values have been computed for 120 Saneamiento a cargo de la Comisión Nacional del Agua, database shows an increment.Wastewater water utilities over the past 11 years and aplicables a partir de 2013 (Operation Rules for the treatment, although still low, shows an published on a free access website that is Hydro-agricultural and Drinking water, Drainage and increase by some 8 points.Wastewater continuously updated.The indicators Sanitation undertaken by the NationalWater treatment is now required in Mexico show that although some progress has Commission, applicable since February 2013), Federal by law. Large industrial users are charged been achieved in the study period, on the Official Gazette, Feb 28, 2013, Mexico. effluent fees based on the quality of their whole water service quality in Mexico, INEGI (2009), Panorama censal de los organismos water discharges and, as a result, they measured, among others, by continuity of operadores de agua en México: Censos Económicos 2009 have made a concerted effort to supply, operating efficiency, non-revenue (Census panorama of water utilities in Mexico: Economic install recycling and treatment plants. water and billing efficiency, is still short of Census 2009), Instituto Nacional de Estadística y Municipalities are also being forced the levels achieved in other upper mid - Geografía, Mexico. to search for suitable solutions. dle-income countries.Water metering is Martinez-Austria, PF (2004). Indicadores de gestión One of the significant management the area with the most progress, and there y mejores prácticas (Management indicators and best problems of water units in Mexico is that has also been progress in wastewater practices), Comisión Nacional del Agua, Mexico. a large proportion of users do not pay treatment.The per capita water produced McIntosh, A andYniguez, C (1997), SecondWater their water bills on time. A service cut- is high, but has reduced over the period Utilities Data Book: Asian and Pacific Region, Asian off penalty is applied in some cities, as a result of the success of public policies Development Bank, Manila. but in others it is rarely applied or never around efficient water use. Customer Yepes, G and Dianderas, A (1996),Water and enforced. A reason for this is the presence complaints and the number of customers Wastewater Utilities: Indicators, 2nd Edition,Water and of a political philosophy which assumes that pay on time decreased in the study Sanitation Division.TheWorld Bank,Washington, D.C. that water is the nation’s property and it is period.The percentage of continuous the state’s obligation to provide water for 24-hour a day supply decreased, however, This paper was presented at the 5th IWA the population. In the study period the probably due to ageing and deficient International Conference on Benchmarking and number of customers that pay on time maintenance of the infrastructure. G Performance Assessment of Water Services, held in decreased by two points. Medellín, Colombia, 9-12 April, 2013. As shown inTable 2, the number References of water utility employees has been Alegre, H, Hirner,W, Baptista, J and Parena, R (2006), maintained.The per capita water Manual of Best Practice. Performance Indicators forWater produced has decreased from 280.39 to Supply Services. 2nd Edition, IWA Publishing. 259.21 l/person.day, but is still very high, Bourguett-Ortiz,VJ andTzatchkov,V (2007),Water About the authors: compared to its target value of 188 utility performance indicators of Mexican cities, Velitchko G. Tzatchkov is Senior Research l/person.day according to the National Proceedings of the 4th IWA Specialist Conference on Scientist at the Mexican Institute of Water Water Commission (Martinez 2004). Efficient Use and Management of UrbanWater Supply, Technology, Morelos, Mexico. This points to a continuing need of Jeju, Korea, May 23-27, 2007, 1-8. Email: [email protected]. leak reduction and efficient water use Conagua (2011), Situación del Subsector Agua Victor Hugo Alcocer-Yamanaka is Head of programmes in many Mexican cities. Potable, Alcantarillado y Saneamiento (Situation of the Department of Hydraulics at the Mexican Sector DrinkingWater, Drainage and Sanitation), Institute of Water Technology, Morelos, Mexico. Conclusions Comisión Nacional del Agua, Mexico. A panel of performance indicators DOF (Diario Oficial de la Federación) (2013), Victor J. Bourguett-Ortiz is General Director of specific to Mexican water utilities has Reglas de Operación para los Programas de Infraestructura the Mexican Institute of Water Technology, been defined and the corresponding Hidroagrícola y de Agua Potable, Alcantarillado y Morelos, Mexico.

WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 • 27 BENCHMARKING How benchmarking triggers water industry improvements

Discussions about the benefits of benchmarking in the water industry are very focused on performance improvement for individual utilities, but how can benchmarking trigger improvement in the water industry overall? HEIMO THEURETZBACHER-FRITZ, JOERG KOELBL, FRANZ FRIEDL and DANIELA FUCHS-HANUSCH highlight the manifold impacts of benchmarking on the industry as a whole, using their own benchmarking experiences.

t Pi2011, the 2011 IWA marking are not only meant to arise simple: to collect the sector-wide experi - AInternational Conference on cumulatively from the single perfor - ences and their realization in industry Benchmarking and Performance mance improvements of utilities – improvements, and to classify them into Assessment of Water Services in it is a more complex process. certain categories.The result was an Valencia, the new IWA-AWWA Best overview table highlighting several Practice Manual on Benchmarking Benchmarking experience and industry examples for each category (Table 1). Water Services was presented to the improvements There are clearly many more examples community (Cabrera et al., 2011). The scope of the survey is closely of sector-wide lessons from all over the It was stated that each benchmarking connected to the authors’ experiences, as world, and maybe some additional cate - process consists of two consecutive they have around ten years of experience gories too depending on specific regional phases: the performance assessment and of being engaged in water supply bench - and local contexts, on the globally- the performance improvement phase. marking exercises in Austria and abroad. different levels of water services and the These phases can be carried out with Four utility-level projects covering 191 benchmarking activities carried out, but different levels of detail in participating assessments of 124 Austrian utilities and some of those identified by the authors utilities (Figure 1). five process level benchmarking exercises are elaborated on below. This paper does not focus on single covering 78 process comparisons of 33 water utilities and their performance Austrian utilities were conducted by the Raising awareness by thoroughly querying improvement. It addresses another per - authors (e.g. Neunteufel et al., 2010; data and by introducing (new) performance spective: performance improvement Koelbl et al., 2009;Theuretzbacher-Fritz indicators triggered by benchmarking does not et al., 2011). During the first cycles of comprehensive only happen to individual utilities. Moreover, international experience benchmarking projects at the utility level The hypothesis of this paper is that has been gained from cross-border in the Austrian water supply sector a benchmarking facilitates sector-wide cooperation with the EffWB general lack of knowledge surrounding (or industry-wide) improvement and project team in Bavaria (Germany) the collection, assessment and monitoring leads to indirect benefits not only for (Theuretzbacher-Fritz et al., of technical data on network condition, the participating utilities, but even for the 2005), a small pilot in Slovenia water losses, rehabilitation requirements non-participating ones as well. However, (Theuretzbacher-Fritz et al., 2010), and others became evident for quite a lot sufficiently large samples of utilities are collaboration within the European of the participating utilities. Even just necessary to safeguard representativeness Benchmarking Cooperation (EBC) discussing the performance assessment for a mostly heterogeneously structured framework, and from a wastewater system (which variables and context sector and to derive sector-wide effects. benchmarking activity recently carried information should be collected for It is also to be remarked that industry out in Croatia (Rohrhofer et al., 2013). benchmarking purposes?), finding a improvements resulting from bench - The approach of the survey was quite common language on items like failure

Heimo Theuretzbacher-Fritz, Joerg Koelbl Franz Friedl Daniela Fuchs-Hanusch

28 • WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 BENCHMARKING

itation needs and monitor the develop - ment from one benchmarking cycle to the next.The information gained in the benchmarking projects is used for discussion with stakeholders in order to manage the financial demand for rein - vestments and to safeguard sustainable, cost-recovering water tariff structures. Benchmarking has turned out to be an essential tool in the water supply sector that supports capacity building for asset management by triggering utilities to collect and maintain network data systematically and face and overcome challenges in communicating asset issues to stakeholders.The data gained in Figure 1: New IWA benchmarking framework (Cabrera et al., 2011) benchmarking analyses are also triggering authorities to fund programmes on GIS rates or water loss performance indicators within the sector. In separate benchmark - implementation and simple asset manage - (PIs) and discussing water balance topics, ing projects utility processes have been ment tools for small utilities. actively managing the physical assets analyzed in detail and structured process increasingly became an issue. benchmarking systems have been devel - Standardization and defining levels of service Hence, benchmarking activities acted oped.The process of water loss manage - As shown by the example of water loss, both as a trigger and a vehicle to deal ment was one out of seven benchmarked benchmarking can have a significant with the asset management issue more processes.The development of the water impact on standardization within the deeply. Also, over the past ten years much loss management benchmarking system industry. Crucial elements of the Austrian effort has been spent by the benchmark - was supported by a PhD thesis (Koelbl, directive OVGWW 63 were introduced ing team, universities, utilities, OVGW 2009). Finally, the Austrian directive on and tested by benchmarking activities. (the Austrian Association for Gas and water losses OVGWW 63 (2009) was Another simple and good example is Water), governmental institutions and revised and international best practices in the incorporation of failure rate experi - others to raise awareness on the impor - the assessment of water losses were imple - ences into the Austrian technical directive tant topic of sustainable asset manage - mented (Koelbl & Gschleiner, 2009). for the operation and maintenance of ment, including operation, maintenance To understand network conditions and water distribution systems (OVGWW and rehabilitation management.Target roughly assess the rehabilitation needs, 100). Based on quality-checked PI results groups for further dissemination of the a systematic assessment of network data on pipe and valve failure rates of around asset approach have been politicians, based on experiences from a comprehen - 70 benchmarked Austrian utilities, levels funding institutions and other stakehold - sive pipe rehabilitation research pro - of service for low, medium and high ers, but also utility managers themselves. gramme (PiReM – Pipe Rehabilitation failure rates could be derived empirically The process of raising awareness is still Management, Fuchs-Hanusch et al., (Table 2). ongoing, but there has been much 2007) and utilities’ practical experience Despite the fact that many different progress. Recently, the sector has was implemented into the benchmarking factors influence failure rates and overall received huge support from ministries system. For different pipe material groups PIs like average failure rates might be and regional governments, who are the average age data is assessed, which is misleading, these guidance levels provide pushing the topic with information the basis for the calculation of NAX, the a first orientation.They could also be a campaigns and the development of average network age index developed door-opener to step into benchmarking, fund programmes (Figure 2). by the Austrian benchmarking team learn more about the topic and get into One example of raising awareness is the (Neunteufel et al., 2007). NAX indicates asset management practice step-by-step. assessment of water losses. In the early the actual network age in relation to Moreover, such service levels could help stages of OVGW benchmarking it turned reference values of the typical lifespans in generating sound target-oriented out that the PI of percentage of water of different pipe groups and allows for contracts. Particularly when adapting losses, which had been widely used, is a better separation of old, medium and them to the local context of a utility, not suitable for technical interpretation. young networks, for an improved com - deeper lessons about influencing factors Therefore, the IWA water balance and parison / interpretation of asset PIs. and the utility-specific status and context internationally introduced PIs, e.g. the The water loss benchmarking system could be derived from benchmarking. Infrastructure Leakage Index, were was further developed from one project Back to benchmarking and standard - implemented as part of the benchmark - cycle to the next.This was mainly based ization, it should be said that they ing system, tested within the Austrian on sector experiences, but also done by support one another in their continuous project frames and – after approval – cross-checking with theoretical models development along PDCA cycles (plan- transferred to technical standards, direc - (see alsoTable 1). In the meantime, it do-check-act).What seems logical for tives and guidelines. So for example, over includes a detailed assessment of water further improvement (plan) is at first a couple of years, water loss assessment loss data, failure rates and network data. embedded in the benchmarking system practices were discussed intensively Utilities are able to deduct rough rehabil - (do). If the benchmarking exercise

WATER UTILITY MANAGEMENT INTERNATIONAL • JUNE 2013 • 29 BENCHMARKING

Table 1: Sector-wide lessons from benchmarking and derived industry improvements

Categories of sector-wide lessons Sector-wide lessons and (-) derived industry improvements (selected items)

AWARENESS IN GENERAL – • Paradigm of progress and optimization: debating on effectiveness & efficiency and performance Raising awareness by simply doing communication through the benchmarking process (project planning, defining the PI system, coping with sectorwide benchmarking resistance during data collection, discussing the shape of the public report, etc.) - performance issues are present at anytime, anywhere, anyhow

IMPACT ON SECTOR POLICIES – • Sector performance in relation to other countries? Reviewing / triggering / safeguarding - knowledge on the overall status from cross-border cooperation sector policies and sound empirical • Sound empirical data on cost levels and cost structures (most studies focus on tariffs, because costs are answers, demystifying false wisdom not publicly available!) • Who is better: private or public? Outcome: Does not matter! - channelling discussion to other issues, e.g. collaboration of utilities • Scale effect on efficiency? Density effect dominates! - Effect on urban and rural planning • Seasonality effect on efficiency (issue for tourist regions in Austria, Croatia, etc.)? In Croatian pilot seasonality effect obviously interfered by other inefficiencies! - No quick excuses anymore • Availability of water resources as cost-critical factor influences operational efficiency (e.g. economic level of leakage) • Process comparisons based on man-hours instead of personnel cost to avoid misinterpretation of efficiency due to different cost structures of utilities

AWARENESS BY FOCUSING – • Water loss, failure rates, rehabilitation PIs and network age index Raising awareness by thoroughly - capacity building in the sector for asset management by triggering utilities to collect and maintain network querying data and by introducing data systematically, facing and coping with challenges in communicating asset issues to stakeholders (new) PIs - triggering authorities to fund programmes on GIS implementation and ‘asset management light’ tools for small utilities • PI on blackout supply resilience - metrics support risk-oriented thinking for better water resource policies (local & regional) • Necessity of sound financial accounting - Adoption of accounting standards - Transferring lessons learnt to other municipal divisions • Personnel counting, allocating FTE to utility divisions, taking outsourcing into account for comparisons - manpower metrics ‘to be handled with care’

IMPACT ON STANDARDIZATION – • Introduction of IWA methodology of water loss assessment (IWA Water Balance, water loss PIs and leakage Standardization and defining levels monitoring & leak detection practices) into Austrian benchmarking of service i.e. PDCA cycles - implementation – after pilot – into revised OVGW W63 (2009), the Austrian directive on water loss with benchmarking management (Koelbl & Gschleiner, 2009). and standardization • Quality-checked PI results on pipe and valve failure rates of around 70 Austrian utilities gave orientation - Classification of Levels of Service (low, medium, high) within distribution directive OVGW W100 (2007) - Levels of service derived from benchmarking can help in generating sound target-oriented concession contracts, e.g. when EU directive on concession contracts is in force • PI numbers on hydrant inspection from benchmarking - revision of inspection interval in OENORM B2539 (2005, in revision) • Definition of best practice process flows in process level benchmarking (e.g. customer meter reading process) - Implementation of SOP (Standard Operation Procedures)

IMPACT ON MANAGEMENT • Findings during data acquisition and data validation (availability gaps in data quantity and quality, SYSTEMS – organizational gaps, systematic errors in data allocation) Rethinking & reviewing - lessons with effects beyond the participating utilities, e.g. introduction of utility certification by auditing management systems directive OVGW V 40 (2012): ‘certified supplier’

CLUSTERS – • Clustering utilities during benchmarking activities Thinking in clusters and founding / - influencing sector statistics layout, influencing discussions and informal comparisons supporting cluster networks for • Exchange of experience between similar utilities knowledge exchange - regional practice clusters founded, e.g. for rural utilities, continuing after benchmarking exercise finishes

VERIFICATION OF THEORIES – • ILI numbers below 1 vs. BABE concept and ILI model Cross-checking empirical data with - Austrian ILI data were the starting point of a thorough exchange with A. Lambert, ‘the father of ILI’, followed theoretical models by an Austrian water loss conference, scientific and professional studies, penetration of the sector with a high-level water loss debate.

INSIGHT – • Gaining more and more insight in the sector with getting to know the utilities better and better and with an Organizational learning at the increasing pool of validated benchmarking data benchmarking project teams - better providing assistance to utilities, further developing decision support tools meeting the utility needs (universities, consultants) - providing sound sector performance studies to the public and to the stakeholders

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provides information that this is useful (check), the innovation can be adopted into a standard and applied widely (act). Within another PDCA cycle, the success of the sector-wide application of the innovation may be verified during another benchmarking exercise.

Cluster networks for knowledge exchange A crucial element in the benchmarking cycle is the exchange of experience and learning from others. Or the other way round, exchange of experience existed long before benchmarking, and so did water clusters like national water associa - tions, but some of them were developed, or even triggered, by benchmarking projects. However, all of these clusters experienced additional momentum from benchmarking activities as they naturally Figure 3: IWA benchmarking framework, incl. industry improvement (Cabrera et al., 2011, amended) support one of the clusters’ basic objec - tives: the exchange of knowledge, experi - mission of this umbrella organization formed under the umbrella of OWAV, the ence and learning from each other. is the autonomous and self-reliant AustrianWater andWaste Management Small and medium-sized utilities execution of water management tasks Association.These neighbourhoods are a in particular often face difficulties in by its members, particularly in rural areas. kind of self-help institution of operators gaining access to special water know- Their main activity fields are knowledge of wastewater management facilities, how. Usually their employees have to transfer and continuous training, and the without a special legal status.The partici - fulfil several tasks, not only managing provision of an information network pation is informal, on a voluntary basis, the water supply system, but also tasks and a platform for the exchange of and the cluster is open to all kind of such as snow clearing during the winter information. However, the cluster pro - wastewater utilities (municipal, industrial months. In other words, the operational vides much more and has the critical mass or private). More than 900 wastewater units of those water utilities are too small of qualified personnel and equipment, treatment plants (WWTPs) also partici - to cope with increasing challenges by e.g. for technical assistance, advice and pate in the cluster, which is about 90% of themselves. Hence, several regional support in legal, financial and organiza - all AustrianWWTPs. Each neighbour - cluster organisations are available to assist tional questions, technical audit of hood includes ten to 20WWTPs of them with their experts, with their advice facilities (quality assurance), measurement different sizes and types and has one and – alongside commercial providers – and leak detection services, water quality speaker, who is an experienced waste - with their specialized services, too. analyses, and much more. water expert.The staff members of the The Austrian water sector provides Upper AustriaWater joined the utilities meet twice a year at one of the several examples of relationships between Austrian water supply benchmarking plants for training and exchange of clusters and benchmarking. An example programme at the beginning and was experience.The neighbourhoods cluster of founding clusters are regional practice actively involved in its development, is also active in performance comparison clusters formed during benchmarking which is designed for all types of water and benchmarking. Up to now about 20 activities, e.g. for rural utilities.These supply utilities, including small ones.The cycles of performance comparisons have clusters continued their activities after results of the benchmarking exercises are been performed on an annual basis. Since the benchmarking exercise finished, discussed in separate workshops organ - 2004, a benchmarking of sewer systems one example being a cluster of water ised by Upper AustriaWater. So, bench - andWWTPs has also been organized utilities in Carinthia (a region in marking is a vital element in the service on an annual basis.The performance southern Austria). portfolio of Upper AustriaWater for the comparisons and benchmarking activities An example of a cluster which existed interaction between its experts and its are important tools for the optimization long before benchmarking activities member cooperatives. of plant operations. Here again, the were begun is Upper AustriaWater, an Water clusters have also been estab - synergistic effects are clear: the existence association of several hundred water lished in the Austrian wastewater sector. of clusters support a sustained develop - cooperatives and soil melioration and Since 1991, so-called sewerage and ment of benchmarking activities. And – flood protection cooperatives.The treatment plant neighbourhoods were vice versa – benchmarking is a useful

Table 2: Guidance levels for average failure rates in distribution networks (OVGW W 100)

Categories of failure rates Mains failures per 100km per year Service connection failures per 1000 conn. per year Recommendations Low failure rate < 7 < 3 Keep level Medium failure rate 7 to 20 3 to 10 Improve level High failure rate > 20 > 10 Urgent need for action

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tool, especially for utility clusters and the industry make a good case to even &Technology, IWA Publishing, London, UK. networks, for vivid exchange among reallocate member fees from inactive OeNorm B 2539 – OVGWW 59 (2005), their members. members to those who are participat - Technische Ueberwachung von Another positive example of the role ing in sector-wide benchmarking Trinkwasserversorgungsanlagen.Austrian directive for of benchmarking in clusters is the ERFA activities by supporting these activities technical surveillance of water supply systems, Österreichis - project in Germany (Hein & Sorge, with the association’s funds. ches Normungsinstitut,Vienna, Austria. 2012). Since 2010, experiences about • The same reasons apply for interna OVGWV 40 (2012), OVGW-zertifizierter water network operation and mainte - tional, national, regional, local govern - Wasserversorger. Allgemeine Geschaeftsbedingungen. nance processes have been exchanged ments and funding agencies to sponsor OVGW-certifiedWater Supplier. General terms and in workshops with water experts.The sector-wide benchmarking. It is conditions. OVGW directive,Vienna, Austria. exchange of experience is based on emphasized by the authors that – in OVGWW 100 (2007), Operation and Maintenance performance indicators, but is not as order to gain overall industry improve - ofWater Distribution Systems. OVGW directive, detailed and complex as intensive bench - ment – there is no necessary need for OVGW,Vienna, Austria. marking exercises at the process level the delivery of detailed regulatory- OVGWW 63 (2009),Water Losses inWater Supply usually are – primarily practical opera - driven performance results; overall Systems: Assessment, Evaluation and Measures forWater tional experience is the focus. In the public reports are sufficient to facilitate Loss Reduction. OVGW directive,Vienna, Austria. meantime, ERFA (this acronym comes stakeholder communication.This helps Rohrhofer, K, Ibrahimovic, E,Theuretzbacher-Fritz, from the German word for‘exchange to conserve a trusting learning environ - H, Cardoso da Silva, M, Cabrera Jr, E and Filipovic, B of experience’) is a flexible cluster for ment for the utilities participating in (2013),Web-based Benchmarking & Project Monitoring different topics, which are suggested by benchmarking. G for Croatia’sWastewater Utilities. Pi2013 – 5th IWA participating water utilities.The topics International Conference on Benchmarking and are analyzed in a confidential way and References Performance Assessment ofWater Services, Medellín, qualitative and indicator-based informa - Cabrera Jr, E, Dane, P, Haskins, S andTheuretzbacher- Colombia. tion supports the workshops. Fritz, H (2011), BenchmarkingWater Services. IWA- Theuretzbacher-Fritz, H (2011), Benchmarking at AWWA Manual of Best Practice, IWA Publishing, Deeper Levels of Detail –The Combined Use of PIs, Results London, UK, 164p., ISBN: 9781843391982. Performance Indexes and Practice Comparisons. Table 1 provides evidence that there are Fuchs-Hanusch, D, Gangl, G, Kornberger, B, Koelbl, Proceedings of Pi2011 – International Conference on plenty of overall benefits and outcomes J, Hofrichter, J and Kainz, H (2007), PiReM – Pipe Benchmarking and Performance Assessment ofWater for the industry, at least for the Austrian Rehabilitation Management. Developing a Decision Services,Valencia, Spain. sector and neighbouring countries. Support System for Rehabilitation Planning ofWater Theuretzbacher-Fritz, H, Schielein, J, Kiesl, H, Certainly, this list will change from Mains.Water Practice &Technology, IWA Publishing, Koelbl, J, Neunteufel, R and Perfler, R (2005), country to country depending on their London, UK. Transnational water supply benchmarking: the cross-border specific structural conditions. However, Hein, A and Sorge, H-C (2012), Erfahrungsaustausch co-operation of the Bavarian EFFWB project and the the better the utility participation is (the fürWassernetzprozesse hilft beim Optimierene eigener Austrian OVGW project.Water Science &Technology: larger the samples), the much better the Anlagen und Abläufe – ein Praxisbericht (transl.: Water Supply,Vol 5, No 6, pp 273-280, IWA overall gains. Exchange of experiences on water distribution processes Publishing, London, UK. For three categories of industry helps for optimizing own assets and processes – a practice Theuretzbacher-Fritz, H, Schielein, J, Kiesl, H, benefits the aim was to exemplify their report.) Energie -Wasser-Praxis No 9, Germany. Neunteufel, R and Koelbl, J (2010), Introducing impact in practice and also on how they Koelbl, J (2009), Process Benchmarking inWater Country-wide Benchmarking toTheWater Supply Sector were achieved. However, it is hard to Supply Sector: Management of PhysicalWater Losses. in Slovenia Linked with Cross-Border Comparisons with verify and quantify performance PhD thesis, Schriftenreihe zurWasserwirtschaft, 56, Graz Austria and Bavaria.Water Practice &Technology, IWA improvement with benchmarking for University ofTechnology, Austria. ISBN 978-3-85125- Publishing, London, UK. single utilities. But it is even more diffi - 055-8. cult or impossible to measure the added Koelbl, J, Mayr, E,Theuretzbacher-Fritz, H, This paper was presented at the 5th IWA value for the industry quantitatively. Neunteufel, R and Perfler, R (2009), Is It Possible to International Conference on Benchmarking and BenchmarkThe Process of PhysicalWater Loss Performance Assessment of Water Services, held in Conclusions Management? Proceedings of the IWA Conference Medellín, Colombia, 9-12 April, 2013. Despite the fact that we cannot measure PI2009 – BenchmarkingWater Services:TheWay the effects of benchmarking on overall Forward, Amsterdam,The Netherlands. sector improvement, we should at least Koelbl, J and Gschleiner, R (2009), Austria’s new bear them in mind. So, why not adapt our guideline for water losses.Water21 December 2009 (Issue About the authors: Heimo Theuretzbacher-Fritz, Graz University basic model of the IWA benchmarking 11.6), pp55-56. IWA Publishing, London, UK. ISSN of Technology, Graz, Austria. Email: framework? An amendment is suggested 1561-9508. [email protected]. in Figure 3. Neunteufel, R, Perfler, R,Theuretzbacher-Fritz, H With special respect to water industry and Koelbl, J (2007), Explanatory Factor‘Average Joerg Koelbl, Blue Networks e.U., stakeholders, it shall be concluded that: Network Age Index’ (NAX) for Mains Failures and Leibnitz/Kaindorf, Austria. • The results presented in this paper Water Losses. Conference Proceedings of LESAM 2007, Franz Friedl, Graz University of Technology, should give enough motivation for 2nd Leading Edge Conference on Strategic Asset Graz, Austria. national associations to actively launch Management, Lisbon, Portugal. sector-wide benchmarking activities Neunteufel, R, Perfler, R Mayr, E,Theuretzbacher- Daniela Fuchs-Hanusch, Graz University of and to support and safeguard them. Fritz, H and Koelbl, J (2010), Benefits from Technology, Graz, Austria. Moreover, the overall outcomes for Benchmarking – An Austrian Case Study.Water Practice

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