The Challenge of Reducing Non-Revenue Water (NRW) in Developing Countries, How the Private Sector Can Help: A Look at Performance-Based Service Contracting (Water Supply & Sanitation Sector Board Discussion Paper Series No.8, December 2006)

One of the major issues affecting water utilities in the developing world is the considerable difference between the amount of water put into the distribution system and the amount of water billed to consumers (also called “non-revenue water” [NRW]). High levels of NRW reflect huge volumes of water being lost through leaks, not being invoiced to customers, or both. It seriously affects the financial viability of water utilities through lost revenue and increased operational costs. A high NRW level is normally a surrogate for a poorly run water utility that lacks the governance, the autonomy, the accountability, and the technical and managerial skills necessary to provide reliable service to their population.
       
The waste resources resulting from high NRW levels in developing countries is considerable. To illustrate this point, the study begins with a global overview of the situation and what it means in term of foregone services to new consumers and the financial costs to utilities.

Table of Contents:

Acronyms and Abbreviations

Executive Summary

The Case for Non-Revenue Water Reduction

Potential for Private Sector Involvement in NRW Reduction Activities

Performance-Based Service Contracting for NRW Reduction: International Case Studies

Lessons Learned and Overall Conclusions

Conclusions

Appendix 1. Non-Revenue Water: The Technical Issues
 

Post Date : 03 Juli 2009