SEPTEMBER 2015 ISSUE 3 I VOLUME 11 water asset management INTERNATIONAL PAPERS Report sets out reform 3 The use of the Infrastructure Value Index to communicate and opportunities for Nigeria’s quantify the need for renovation of urban water systems Helena Alegre, Diogo Vitorino and State Water Agencies Sérgio Coelho ecommendations for reforms to improve the report states. 8 Energy efficient water supply Rperformance of Nigeria’s State Water Around $6 billion needs to be invested over systems in Albania: moving from Agencies have been set out in a report released the next ten years to achieve universal water energy scans and cost-benefit by the World Bank. supply, or some $2.9 billion to connect all analysis to the planning, With the country’s largest water suppliers current municipal residents, yet 18 of the State implementation and management struggling to improve service provision in the Water Agencies have never had an investment of energy efficiency water face of rapid urbanisation, the report, ‘State project valued at more than $10 million. That infrastructure in Albania water agencies in Nigeria: a performance there is the potential for users to contribute to Fridtjof Behnsen, Pirro Cenko, assessment,’ by Berta Macheve et al, surveyed this investment is supported by the fact that the Kastriot Shehu and Piro Ndreu 35 of the 37 State Water Agencies. It found national cost of water from alternative water that many utilities are able to collect and report providers is estimated at $650-700 million performance information, but that such a year, which is four times more than the 13 Analysis of three efficiency reports need to be analysed at the federal level. combined revenue of all the 35 State Water models for water supply and ‘It is necessary to institutionalize a federal Agencies surveyed, notes the report. sewerage companies: the case performance benchmarking system,’ the The report’s other recommendations include: of Albania report states. closing the current information gap as a first Evis Gjebrea According to the report, the 35 State Water priority; clarifying the corporate status of State Agencies were able to connect some 1 million Water Agencies, especially achieving true new customers between 2011 and 2013, but this separation from State Governments; improving 20 Milestones and results for the figure was dwarfed by the approximately 9 national and state tariff policy guidelines and Budapest Waterworks water million new urban dwellers during this time, regimes; reviewing tariffs for cost recovery and safety system meaning urban water coverage dropped by affordability; institutionalising metering of water Géza Csornyei and Genovéva Frank almost 3 percent, to less than 40%. ‘At the production and consumption; preparing for the current rate, within 10 years water coverage financing of future projects with input from State may drop below 30% and only 20% of urban Governments; and for the possibility of a national residents will have a direct water connection,’ water fund to be explored. G ADB to support Uzbek city of Djizzak he Asian Development Bank (ADB) has industrial zone. Tapproved a $81 million loan to support To cope with an expected dramatic increase in upgrade of the urban sewage and wastewater the city’s population, the project will carry out a system in the city of Djizzak, Uzbekistan, in a massive rehabilitation of Djizzak’s deteriorated move it says will help raise living standards, wastewater and sewage system, which improve the environment and boost public health. according to ADB was constructed in the 1970s ‘Djizzak is a key driver of regional economic and has been barely maintained since. This has growth,’ said Hao Zhang, Principal Urban resulted in serious environ-mental damage and Development Specialist with ADB’s Central public health threats, such as an alarming and West Asia Department. ‘This project will rise in acute intestinal infections and viral give at least 85,000 residents and over 350 hepatitis. businesses access to clean water, and reliable Along with a new wastewater treatment plant, sewage collection and wastewater management the project will construct or rehabilitate over 62 services.’ kilometres of trunk sewers and four pumping Djizzak is capital of the Djizzak Province and stations and provide support to operate and is a former Silk Road junction connecting maintain the new facilities. By the time the Samarkand with the Fergana Valley in eastern project is completed in 2020, the system will Uzbekistan. According to ADB, the government be able collect and treat up to 30,000 cubic recently approved a long-term development plan metres of raw sewage per day, and the pumping that will accelerate urbanization, expand some capacity will have been increased to more than industries and relocate others, and attract 15,000 cubic metres per day from around 9000 foreign investment by establishing a special cubic metres per day in 2013. G NEWS water asset management INTERNATIONAL EDITORIAL Suez marks name change with Editors Dr John Bridgeman strong half-year results [email protected] rench group Suez released its half year federated under a single brand positioned in the Professor Stewart Burn [email protected] Fresults towards the end of July, reporting an sustainable resource management, which is already increase in group revenues to the end of June of bearing fruits,’ he said. Mr Scott Haskins €404 million, up by 5.9% to €7295 million Chaussade added: ‘The “Water Europe” division [email protected] compared to the same point last year. reported strong performance, driven by higher Dr Shiv Iyer The Water Europe division saw revenues rise by volumes, prices and new services. The [email protected] €56 million at constant scope and exchange rate, “International” division benefitted from sustained and the International division saw revenues rise by growth in almost all geographical regions and in all is Water Asset Management International €91 million. A favourable exchange rate impact businesses.’ is an international newsletter on asset accounted for much of the increase in the overall In early September, Suez also announced that it management in water and wastewater utilities. The focus of the newsletter is increase in revenue. had successfully completed placement of €500 on the strategic aspects of this developing CEO Louis Chaussade commented after the million in bonds to mature in 2025. According to the field, providing utilities with international perspectives on infrastructure planning release of the results that the board had approved company, demand for the bond had been six times and maintenance as they seek to deliver the change of the brand name to Suez, ‘a short, greater than the offering, allowing the company to cost-effective services to their customers. strong name and full of history’. ‘This agreement obtain its lowest 10-year coupon, at 1.75%. The Instructions for authors are available at: completes the launch of our single worldwide brand. company also noted that the placement was in line www.iwaponline.com/wami/default.htm Since March, the 40 Group’s trademarks are with its policy to refinance and extend its debt. G PUBLISHING European Parliament votes for further Publisher Michael Dunn Commission action on Right2Water Water Asset Management International is published four times a year (March, he European Parliament voted on 8 September a range of actions. The European Parliament says June, April, December) by IWA Tin favour of a resolution urging action by the the Commission’s ‘alleged neutrality’ regarding water Publishing. Statements made do not represent the views of the International European Commission to take forward measures ownership is in contradiction with the privatisations Water Association or its Governing Board. called for by the Right2Water citizens’ initiative. imposed on some Member States by the IWA Publishing The European Commission is the body responsi - Commission, European Central Bank and the Alliance House, ble for drafting EU legislation for possible adoption International Monetary Fund. It says that the 12, Caxton Street, by the European Parliament and Member States. Commission ‘should remain neutral’ and not London SW1H 0QS, UK Tel: +44 (0)20 7654 5500 The European Citizens’ Initiative is a means by which promote privatisation of water services in any way. To Fax: +44 (0)20 7654 5555 EU citizens can call directly on the Commission to this end, the European Parliament document adds Email: [email protected] Web: www.iwapublishing.com draft proposed legislation if a minimum of one million that production, distribution and treatment of water signatures can be gathered in support of an issue. and sanitation services should remain excluded from Right2Water had been the first such initiative to the Concessions Directive. SUBSCRIPTIONS gather the number of signatures needed – in fact Among the many other proposals in the European attracting almost 1,900,000 signatures. The Parliament’s response, it urges the Commission Water Asset Management International is available as either a print or an Commission set out its response to the Right2Water to ensure quantitative assessments of water afford - online subscription. proposals in a 13 page communication issued on ability become mandatory in any revision of the EU 2015 price (4 issues): March last year. At the time, Right2Water’s vice- Water Framework Directive. £299 / €451 / $596 president Jan Willem Goudriaan comment: ‘The Private water operator federation AquaFed (IWA members: