Embarking on the World’s Largest NRW Management Project
By IRINEO L. DIMAANOHead, Maynilad Central NRW Mgt.
Manila,Philippines
IWA‐Water Loss 20106‐9 June 2010, Sao Paulo, Brazil
Maynilad
• Maynilad is the Philippine’s largest water company
• Serves more than 6 million people ; with an area of 540 square kilometers
• Covers 12 cities in Metro Manila and 5 towns in Cavite
• Managed by DMCI‐MPIC Water Company
Treatment Plants : 2Kilometer of Pipes : 5,779Pumping Stations : 13Reservoirs : 16
No.of Customers : 814,645 Supply Duration : 21 HrsAverage Pressure : 7 M
No. of Employees : 2,025Ratio/1000 wsc : 2.5
Profile
Maynilad’s CAPEX Program
• 5‐year (2008‐12) CAPEX of 38 BPhP or 828 MUSD
To improve level of service
To reduce and recover non‐revenue water
To supply additional 3 million people
426216
112 722
CAPEX Cost in MUSD (2008‐2012)
NRW Management Operations Support
Water Sources Water Waste
Calamity Mitigation
Maynilad’s CAPEX Program
NRW Management is the top priority
Investing more to improve service…
TOTAL CAPEX = 828 MUSD
COMPARISON OF ANNUAL CAPEX(1997‐2012)
Old Maynilad13 MUSD
New Maynilad38 MUSD
20
30
40
50
60
70
8019
97
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
(%)
BENPRESS/SUEZ MWSS New MayniladMPIC‐DMCI
Non‐Revenue Water
No significant change in NRW
NRW
target 40% in 2012
What were the reasons for high NRW ?
• Lack of understanding the problem
• Lack of capacity
• NRW reduction programs before were often poorly managed and not properly coordinated
• NRW reduction was a one‐time activity
• Limited management support
No real NRW Management Program
High NRW … huge opportunity
TOTAL CAPEX = 828 MUSD
• High NRW volume of 1500 million liters per day
• Even only a 50% NRW recovery is enough to supply 500,000 new connections
• Eliminates the need for new water sources and reduces environmental impact
• Cost reductions on production, pumping, and O&M
• Every 1% reduction in NRW translates to 250 MP yearly additional revenue
• High NRW level of 66% and losing 1,500 MLD in 2007
• No full time NRW program
• Limited NRW knowledge and expertise
• Needed innovative & aggressive approach to reduce water loss
• Required full budgetary support
• Top management involvement
What were the challenges in 2007 to reduce NRW ?
Year 2008: The Beginning
• Created the Central NRW team
• New office environment
• Hired new and young engineers
• New tools, equipment, vehicles
• The lack of expertise became obvious
• A technical partner was needed
• Full management support and leadership to ensure proper NRW implementation
2
545
98
183221 234
307 320350 375
0
100
200
300
400
500Jan‐08
Apr‐08
Jul‐08
Oct‐08
Jan‐09
Apr‐09
Jul‐09
Oct‐09
Dec‐09
Apr‐10
Number of staff
Building‐up of NRW team
Early 2009, Maynilad engaged Miya for a Technical Service Agreement (TSA)
• to provide NRW expertise and be co‐responsible for agreed NRW targets in 5 years (2008‐2012)
Maynilad‐Miya Engagement
System Input Volume
2,282 MLD(+/- 3 %)
Authorized Consumption
786 MLD
Billed Authorized Consumption
785 MLD
Billed Metered Consumption
785 MLD Revenue Water
785 MLDBilled Un-metered Consumption
0 MLD
Unbilled Authorized Consumption
1 MLD(+/- 22 %)
Unbilled Metered Consumption
Marginal
Non-Revenue
Water1,497 MLD
(+/- 5 %)
Unbilled Un-metered Consumption
1 MLD (+/- 22 %)
Water Losses1,496 MLD
(+/- 5 %)
Commercial Losses293 MLD(+/- 20 %)
Unauthorised Consumption
202 MLD (+/- 29 %)
Customer Meter Inaccuracies and Data
Handling Errors91 MLD (+/- 14 %)
Physical Losses1,203 MLD (+/- 8 %)
75% physical losses
25% commercial
losses
Water Balance
Maynilad 2007 Water Balance
2007 System wideIWA-WB of Maynilad
NRW Programs
• HA and DMA establishment
• Active leakage control
• Selective pipe replacement
• Pressure management
• Integrated meter management
• GIS mapping/data base mgt
• Hydraulic modelling
• Capacity building
• R Liemberger /R Pilcher
• S Hamilton
• R Liemberger
• A Heiman
• F Arregui
• P Fanner
• D Rogers
• M Dickinson
Maynilad
830,000 connections
910
89-1
9-29-39-4
9-59-6
9-7
9-8
9-9
10-110-210-3
10-410-5
10-6
10-7
8-1
8-28-3
8-4
8-5
8-68-7
9-7
9-6 9-5 10-5
9-1
9-29-39-4
9-8
9-9
10-110-210-3
10-4
10-7
8-1
8-28-3
8-4
8-5
8-68-7
Hydraulic Zones
DMAs
20,000-50,000 connections 500-1,200 connections
Establishment of HA and DMA
Establishment of HA and DMA
582 established DMAs
842 average no.of connection
32% average NRW in all DMAs
685 lpcd ave. water loss rate
37
60
80
90
100
0
250
500
750
1000
0
25
50
75
100
(%)
Target DMA 275 525 648 767 844Actual DMA 395 582Target Coverage 37 60 80 90 100Actual Coverage 44 59
2008 2009 2010 2011 2012
Leak Detection Management
• Before : zero detection team
• Now : 22 ‐30 full time teams
• Young and new engineers
• New equipment & vehicles
• Trained by experts
• Blanket leak survey inside & outside of DMA
• Aggressive leak repair
• Sahara pipe inspection on the primary pipes (big diameter)
Sahara pipe inspection
• First operation in Asia
• 2‐units Sahara operating: 1 by PPIC & 1 by Maynilad
• Training of Maynilad staff
• Results are encouraging
• 80 leaks in 20 KM pipe surveyed
• 4‐5 leaks per kilometer of pipe
• Discovering network anomalies
• Updating pipe lay‐out
Metering Program
• Re‐organized meter department: put in young manager and staff
• Re‐evaluated meter performance: from 23 to 5 quality meter brands
• Right sizing large customer
meters
• Using more accurate meters
• Testing new technologies
• Guided by meter expert0
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Months
Jan 2006 to Apr 2010 Top 100 BV
• Lack of understanding
• Lack of capacity
• Old equipment
• Lack of data
• Less motivation
• Limited management support
• Full understanding
• Dedicated NRW team
w/full ownership and guided by experts
• Modern equipment
• Database management
• More incentive programs
• Full management support/involvement
THEN NOW
NRW management transformations…
Initial Results
UNIT EO 2007 EO 2009 VARIANCE
NRW VOL MLD 1572 1370 ‐13%
NRW % 67 57 ‐10%
NRW LPCD 2979 2018 ‐32%
Reduced the NRW‐
Performance Indicators
Initial Results
Improved the level of service‐UNIT EO 2007 EO 2009 VARIANCE
No.of Service Connection
EA 703,519 814,645 16%
Supply Duration
HRS 18 21 17%
AveragePressure
M 5 7 33%
Performance Indicators
Initial Results
UNIT EO 2007 EO 2009 VARIANCE
Billed Volume
MLD 782 1043 33%
Total Revenue
M USD 178 230 29%
Increased the revenue‐
Performance Indicators
• NRW reduction is a complex problem which needed aggressive & innovative approach
• Dedicated NRW team guided by experts
• Invest on capacity building of the staff which is the company’s best asset
• NRW is a continuing program not an adhoc function
• NRW reduction is not going to be free but will require substantial but prudent budget
• Full Top Management involvement & support is needed
Lessons learned based on Maynilad’sexperience