Transcript IPN – Israel Water Week

IPN – Israel Water Week
Improving the Water Service:
The Case for Replicating Manila in Mexico
Gerardo Angeles Castro
Economic Development Network - IPN
Mexico City
17th to 19th September, 2014
Discussion in the relevant literature
Impact of ownership on water utilities’ performance
Da Silva et al. (2008), Le Lannier and Porcher (2013),
Correia and Marques (2011), Braadbart (2002),
Competition
Estache and Rossi (2002)
Use of scale economies
Zschille and Walter (2012), Pozzoli et al. (2014)
Approaches to water management
Supply-Oriented
Provision of essential resources to as many people as possible
Infrastructure, maintenance, technology,
Demand-Oriented
Supply, sustainability, quality, efficiency
United Nations (1992), Sosa-Rodríguez (2010)
Integrated Water Resource Management (IWRM)
Supply, demand, middle and long-term planning, targets
Maynilad, Manila, Philippines
Philippines’ largest water provider, Oldest in Asia (136 years),
privatised in 1997, managed by MPIC and DMCI since 2007
Maynilad’s Profile in 2012
KPI
Situation
Population served
8.2 million
Service coverage
95 percent
Number of services
1.073 million
Water treatment plants
3
Total Capacity
2,500 MLD
NRW*
43 percent
Annual revenue
376 MUSD
Source: (Dimaano 2013)
* NRW = Non-revenue water, the difference between the amount of water put into
the distribution system and the amount that is billed to customers.
Maynilad’s Non Revenue Water (NRW)
80
Central NRW team
created in 2008
66 64
60
70
66
60
53
No significant change
in NRWpercent in ten years
50
48
43
40
39
Source: (Dimaano 2013)
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
30
Evolution of Maynilad’s Indicators
KPI
NRW
Service
coverage
Number of
services
Coverage 24hr supply
Coverage 7
PSI pressure
Average leak
repair run
time
Billed
volume
Unit
Percentage
points
Percentage
points
(1000)
2007
66
2013
39
2013 vs 2007
-27
81
96
15
700
1,129
61%
Percentage
points
Percentage
points
Days
46
98
52
53
100
47
16
5
-11
MUSD
778
1,215
56%
Source: (Dimaano 2013)
Maynilad’s Strategies (1)
Separation of the network into unique hydraulic systems and
district metered areas (DMAs)
Integrated meter management: replacement, correction of
sizing, selection of quality meters, increase coverage
Replacement of pipes, sustained maintenance, disconnection
of illegal pipes, pressure management, pressure regulating
valves in DMAs, above-ground pressure monitoring points.
Between 2008 and 2013: 1090 Kms of pipes were replaced or
rehabilitated, 697,000 meters were replaced, 929 pressure
reducing valves and 1,198 pressure monitoring points were
installed
Maynilad’s Strategies (2)
Better relations with local customers, local governments and
stakeholders
Incentive and capacity building program for its staff
Full trained and well equipped teams
Creation of a data management system
Maynilad Before 2008
Illegal connections
Large diameter leaking
Meter inaccuracies
Unreliable water supply
Meter tampering, pin hole
Source: (Dimaano 2013)
Old and complex pipe system
Maynilad After 2008
Pipe replacement
Leak repair control center
Leak detection laboratory
Above-ground PMP
Fully trained and well equipped
Leak detection teams
Source: (Dimaano 2013)
Diagnose and assess NRW
SACMEX, Background
Largest water utility in Mexico, it is a de-concentrated entity
dependent on the local Ministry of Environment
Water supply sources in Mexico City
Source
Proportion
Percentage
Transferred water
Cutzamala-Lerma system
22
Surface, local sources
Local groundwater
Sustainable
Unsustainable, overexploited
Water treatment
3
68
36
32
7
Source: Sosa-Rodríguez (2010), World Bank (2013)
SACMEX, Recent Evolution (1)
KPI
Unit
2010
2012
Population
served
Service coverage
Million
8.296
8.442
2012 vs
2010
1.8%
Percentage
points
Millions
98.4
97.9
-0.5
1.987
2.026
1.94%
L/S
Percentage
points
34,988
63
35,255
63
0.76%
Meter coverage
commercial
Percentage
points
0
77
Meter coverage
industrial
Percentage
points
0
77
NRW
Percentage
points
Percentage
points
Percentage
points
Percentage
points
41
43
2
59
57
-2
78
61
-17
46
35
-11
Number of
services
Total Capacity
Meter coverage
residential
Physical
efficiency
Commercial
efficiency
Global
efficiency
SACMEX, Recent Evolution (2)
KPI
Unit
2010
2012
Annual bill
Million
USD
Million
USD
Million
USD
Million
USD
$MEX
359
602
2012 vs
2010
68%
281.7
368.1
31%
733.6
748.4
2%
-451.9
-380.3
-16%
3.91
5.02
28.3%
$MEX
10.19
10.20
0.01%
Units
25
25
Annual
revenue
Annual
expenses
Annual net
profit
Average
revenue $/M3
Average
production
cost $/M3
Water
treatment
plants
Prospects for SACMEX
Law of water and hydric sustainability (proposal)
•
•
•
•
•
1 Million people on the network
Full and high quality coverage by 2018
19 new water treatment plants and renewing 16 more
Renewing or substituting 3,115 pipe Km
Investment: 0.741 BUSD
Integral management of water resources (PGIRH) 2012-2032
• Strategies and targets on infrastructure, stakeholders, aquifer
recharge, improvement of commercial and financial system, water
treatment, mitigation of climate change effects, sustainability, efficiency
Concept
2012
2032
Change
Income MUSD
368.1
864.7
135 %
Expenses MUSD
466.2
436.1
-6.5%
Investment
172.4
451.1
161%
Conclusions
• Water provides can achieve great transformation in
developing countries in a relative short period of time, the
case of Maynilad
• Different owner ship but it shouldn’t make a change
• Both companies can take advantage of economies of scale
• SACMEX still faces many challenges
• But has set middle and long-term planning with clear
actions and targets
• According to the plan it can be transformed in the middleterm as Maynilad
• But needs to become a decentralised organism to achieve
management autonomy and to have control of its resources