PWWA: FROM BENCHMARKING TO INVESTMENT

Alexander DanilenkoPort Moresby, Papua New Guinea

OBJECTIVES OF BENCHMARKING OUR TARGET: Every utility will prepare investment project based on the benchmarking report by the end of 2016

Bring attention to water services

Bring understanding of issues and problems

Adjust financial systems

Bring finances to the sector

Bring investment to the sector

STATE YOUR NEEDS AND PLANS THAT CAN BE OFFERED TO DONORS AND INVESTORS based on objective data and information

DATABASE AND KNOWLEDGE 26 utilities from 17 countries

National utilities 12

Regional utilities 14

Smallest 726 people (Niue) and largest with almost 750,000 (Fiji)

Total people in service – almost 2 million

PWWA database has more than 1000 visits since launch in Feb. 2015

Data accredited for 5 utilities only (Eda Ranu, Enelco, Guam, American Samoa, Fiji)

Utilities that did not provide data yet 6

INVESTMENT PRACTICE Only 6 companies reported completed projects in 2014

Nauru, YSPSC, Kiribati and Majuro have last project completed more than 10 years ago

12 companies have ongoing projects with value more than 1 million – all of them are large companies. Small companies get little attention.

Average investment, however, is less than US$50 per person a year

All utilities, which have projects have participated in biddings and commissioning of the investment

Typical investment: energy efficiency, expansion and upgrade of water intake, wastewater development, NRW

SETTING TARGETS

We have data – let us use them

Setting priorities

1) Expansion with water services

2) Water shortages

3) Reduction of NRW

4) Financial stabilization

5) Development of wastewater collection and treatment

6) Data quality improvement

EXPANSION WITH WATER SERVICES Vast majority have 90% and above. The issue is for

Solomon Islands – 82%Kiribati – 80%Unelco, Vanuatu, 80%Water PNG – coverage 70%Micronesi, Puhnpei – 61% Majuro, Marshall Islands – 20%

WATER SHORTAGES, LACK OF PRODUCTION CAPACITY Water consumption is below 50 liters per capita a day:

PUB, Kiribati – around 15 lpcd, water is provided 3-4 hours a day

Nauru – 20 lpcd; - water is served by tankers, no network

Southern Yap, Micronesia, - 33 lpcd – 24 hours a day

Majuro, Marshall Islands, 110 lpcd, but only 3-4 hours a day

REDUCTION OF NRW NRW above 50% reported:

ASPA, American Samoa – 67%

Chuuk. Micronesia, 75%

GWA, Guam – 55%

Eda Ranu, PNG – 55%

SIWA. Solomon Islands – 62%

Water Authority of Fiji – 51%

FINANCIAL STABILIZATION

Costs are not recovered in 2011-2014:

Fiji Water Authority, Fiji 65-81%

APSA, American Samoa 75-90%

Chuuk Micronesia 25-80%

SWA, Samoa 75-80%

Note. Cost recovery of the reported costs to utility

DEVELOPMENT OF WASTEWATER COLLECTION AND TREATMENT Was reported by many companies as a key priority

Majority are fully ready for sewerage and wastewater treatment as consumption exceeds 15 lpcd for many

However, the questions remain: are people ready to pay for such services? Will it bring enough revenue to cover costs?

OVERALL READINESS TO INVEST Water Utility Vulnerability Index is low, and the following utilities can easily borrow for investments:

APSA, American Samoa – overall risk is 11% stable

Central Yap, Micronesia – overall risk is 23% stable

Water Authority, Fiji – overall risk is 37% with positive trend

GWA, Guam – 55% with negative trend

Tonga Water Board, Tonga – overall risk – 65% with positive trend

Eda Ranu, PNG – 75% - stable

The rest of companies risk exceeds 99% meaning that they will not be able to generate enough resources for expansion as water at the affordability level, and have significant account receivable

DATA QUALITY IMPROVEMENT = PROJECT JUSTIFICATION Still remains a huge issue

Enormous jumps from year-to-year were cleaned during the last year, still about 30% of data items jump by 30% from year-to-year

Water metering is a norm to about half of utilities

10 utilities do not know length of their network

Financial data breakdowns are questionable for many companies

BUT ARE WE READY FOR INVESTMENT? Only about half of PWWA members reported developed investment plan

Only 15 companies from 28 participated in training have readily developed projects

Majority of projects are financed by donors. Two projects reported are JICA grants.

None the companies developed project by itself based on the collected data yet

MAKE YOURSELF KNOWN

Performance reporting as a tool to attract finances

Next steps:

Strategic development approach based on the reported data

Feasibility of the proposed actions assessment

Economic viability of the project evaluation

Preparation of the project ready for investments

We will do it together!