Good Practices in Urban Water Management Decoding Good Practices for a Successful Future Edited by Anand Chiplunkar Kallidaikurichi Seetharam Cheon Kheong Tan Good Practices in Urban Water Management Decoding Good Practices for a Successful Future Edited by Anand Chiplunkar Kallidaikurichi Seetharam Cheon Kheong Tan © 2012 Asian Development Bank, National University of Singapore All rights reserved. Published 2012. Printed in the Philippines. ISBN 978-92-9092-740-2 (Print), 978-92-9092-741-9 (PDF) Publication Stock No. BKK102333 Cataloging-In-Publication Data Chiplunkar, Anand, Kallidaikurichi Seetharam, and Cheon Kheong Tan. Good Practices in urban water management: Decoding good practices for a successful future. Mandaluyong City, Philippines: Asian Development Bank, 2012. 1. Urban water. 2. Water management. 3. Asia. I. Asian Development Bank. ] the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB. Note: In this publication, “$” refers to US dollars. Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4444 Fax +63 2 636 2444 www.adb.org For orders, please contact: Department of External Relations Fax +63 2 636 2648 [email protected] Printed on recycled paper Contents List of Tables, Figures, and Boxes vii Foreword xiv Preface xvi Acknowledgments xviii Abbreviations xxi Chapter I: Introduction 1 Challenges in the Water Sector 1 Setting the Context 2 Water Governance and Good Practices 4 References 10 Chapter II: Bangkok, Thailand 11 Introduction 11 Institutional Setting and Governance 12 Supply Management 17 Demand Management 25 Wastewater Management 29 Storm Water Management 32 Private Sector Participation 34 Customer Satisfaction 36 Financial Resource Management 37 Human Resource Management 38 Lessons 40 Challenges 43 References 45 Chapter III: Colombo, Sri Lanka 49 Introduction 49 Institutional Structure and Legal Framework 50 Urban Service Delivery in Greater Colombo 56 Supply Management 60 Wastewater Management 67 Customer Satisfaction 68 Financial Resource Management 70 iii iv Contents Human Resource Management 76 Initiatives for Sustainable Water Supply and Sanitation 77 Challenges and the Way Forward 80 References 83 Chapter IV: Jamshedpur, India 85 Introduction 85 Institutional and Regulatory Framework 88 Need for Change: Factors for the Formation of the Jamshedpur Utilities and Services Company Limited 90 Water Value Chain 93 Supply Management 95 Demand Management 102 Wastewater Management 106 Storm Water Management 108 \ !"# Customer Satisfaction 111 Financial Resource Management 116 Human Resource Management 118 Decoding the Transformation: Key Drivers and Lessons 120 Challenges and the Way Forward 123 References 125 Chapter V: Kuala Lumpur, Malaysia 127 Introduction 127 Institutional Setting and Governance 128 Supply Management 132 Demand Management 135 Wastewater Management 138 Storm Water Management 140 Private Sector Participation 142 Customer Satisfaction 144 Financial Resource Management 145 Human Resource Management 147 Lessons 150 Challenges 153 Conclusion 155 References 155 Chapter VI: Manila, Philippines 157 Introduction 157 Institutional Setting and Governance 159 Privatization of Metropolitan Waterworks and Sewerage System 161 Supply Management 166 Management of Metro Manila Water System after Privatization 169 Nonrevenue Water 183 Contents v Wastewater Management 186 Financial Resource Management 189 Human Resource Management 191 Community Partnerships 196 Lessons 198 Challenges 201 References 202 Chapter VII: Phnom Penh, Cambodia 205 Water Supply of Phnom Penh: An Example of Good Governance 205 Introduction 205 Progress since 1994 206 Urbanization 207 Unaccounted-for-Water 211 Water Pricing and Cost Recovery 212 Accurate Data on Water Consumers 217 Metering 217 Water for the Absolute Poor 218 Financial Sustainability 219 Overall Performance Assessment 222 Concluding Remarks 223 References 223 Chapter VIII: Shenzhen, People’s Republic of China 225 Introduction 225 Overview of the City 226 Institutional Setting and Governance 227 Supply Management 238 Demand Management 240 Wastewater Management 245 Customer Satisfaction 249 Financial Performance 250 Reform of the Water Sector in Shenzhen 251 Lessons 259 Challenges 260 References 261 Chapter IX: Singapore 265 Introduction 265 Political and Government Commitment 266 Institutional Setting and Governance 268 Supply Management 270 Demand Management 278 Wastewater Management 286 Storm Water Management 290 The ABC Waters Program 294 vi Contents Private Sector Participation 294 Customer Satisfaction 295 Financial Resource Management 296 Human Resource Management 300 Lessons 302 Challenges 303 References 305 Chapter X: Gearing for the Future: A Framework for Success 309 A Cross-Utility Comparison 309 Decoding Good Practices: A Success Framework for Replication 314 Operationalizing the Success Framework 319 Emerging Challenges of Climate Change and Flooding to Integrated Water Resources Management 321 References 323 Index 325 Tables, Figures, and Boxes Chapter I: Introduction Tables 1 Key Indicators in Water Management 5 2 Summary of Good Practices Drawn from City Case Studies 6 Box 1 Common Water Utility Challenges 1 Chapter II: Bangkok, Thailand Tables 1 Water Service Connections of the Metropolitan Waterworks Authority 21 2 Water Tariff Structure of the Metropolitan Waterworks Authority 27 3 Coverage of Wastewater Treatment in Bangkok 30 4 Financial Performance of the Metropolitan Waterworks Authority 37 Figures 1 Bangkok Metropolis and Its Land Use 12 2 Major Water Supply Facilities of the Metropolitan Waterworks Authority 18 3 Service Coverage of the Metropolitan Waterworks Authority 19 4 Nonrevenue Water and Unaccounted-for-Water in Metropolitan Waterworks Authority Service Area, 1987–2008 24 5 Water Consumption by Type in the Metropolitan Waterworks Authority Service Area, 1998–2008 26 6 Municipal Wastewater Generation and Treatment in Bangkok 31 % &'\ Waterworks Authority, 1987–2008 39 Chapter III: Colombo, Sri Lanka Tables 1 Key Statistics of Greater Colombo Area 49 2 Institutional Responsibility for the Delivery of Water Services in Greater Colombo Area 52 3 Sewerage Service Charges 68 vii viii Tables, Figures, and Boxes 4 Accounts Receivable for Sri Lanka 72 5 Usage and Service Charges for Domestic Users 73 6 Usage and Service Charges for Public Standposts and Garden Taps 73 7 Usage and Service Charges for Government Schools, Government-Assisted Schools, Religious Institutions, and Government-Approved Charitable Institutions 74 8 Usage Charges for Commercial and Other Users 75 9 Service Charges for Commercial and Other Users 75 10 Connection Fee for New Consumers 76 Figures 1 Composition of Greater Colombo Area 51 2 Water Value Chain of Greater Colombo Area 56 3 Water Supply System of Greater Colombo Area 58 4 Growth in Water Supply Coverage and Number of Connections 61 5 Water Production and Water Consumption, 1999–2008 61 6 Decline in Population Served Per Public Standpost, 1998–2008 62 7 Inconsistent Declines in Nonrevenue Water, 1999–2008 63 8 Metered Connections to Total Connections and Meters Replaced or Repaired 67 9 Consumer Complaints, 1998–2008 69 10 Restructuring of Colombo City’s Operation and Management 69 11 Annual Operating Revenue and Operating Ratio 70 !* /';<!===N*""# %! 13 Cost Recovery: Revenue per kl versus Cost per kl 72 14 Staff Productivity, 1998–2008 76 Boxes 1 Randiya Program and Colombo Nonrevenue Water Reduction Program of the National Water Supply and Drainage Board 65 2 Nonrevenue Water Reduction Program in Colombo Metropolitan Region, 2007–2012 66 Chapter IV: Jamshedpur, India Tables 1 Key Statistics of Jamshedpur Urban Agglomeration, 2001 86 2 Institutional Responsibility for the Delivery of Water Services in Jamshedpur Urban Agglomeration 89 3 Volumetric Water Tariffs, FY2008 103 4 Water Tariffs for Unmetered Connections, FY2008 105 5 Standards for Service Delivery 113 Tables, Figures, and Boxes ix 6 Annual Amendments to Service Level Guarantee Based on Customer Feedback 114 7 Challenges Faced by Indian Water Utilities and JUSCO’s Approach 121 Figures 1 Institutional Structure of Jamshedpur Urban Agglomeration 89 2 Water Value Chain of Jamshedpur Utilities and Services Company Limited 93 3 Increase in Water Supply Coverage and Number of Connections 95 4 People–Private Partnership 96 5 Water Quality 97 6 Improvement in Nonrevenue Water 98 7 Decline in Pipe Breaks 100 8 Gradual Rise in Metered Connections 101 9 Increases in Water Consumption 103 10 Sewage Generation and Treatment within Lease Area 106 11 Sewerage Network Coverage and Decline in Sludge Blockages 107 12 Declines in Water System Failures and Energy Consumption 109 13 Compliance with Service Level Guarantees and Repeat Complaints 111 14 Consistent Improvements in Customer Satisfaction Index 112