JICA’s Cooperation for Urban Water Supply

and Sanitation

Satoshi HAMANOJapan International Cooperation

AgencyPakistan Office

© yec

contents

1. JICA’s Cooperation for Urban Water

2. Activities and future vision in Pakistan

1. JICA’s Cooperation for Urban Water

(1) JICA’s Cooperation Schemes (2) Characteristic of JICA’s technical cooperation

①Development of water supply and Sewage facilities

Development of Master Plan(technical cooperation)

Development of facilities and Provision of Machineries

(Grant, or Loan)

②Sustainable operation and maintenance (technical cooperation)

Promotion of operation/maintenance capacity of water supply utilities (WASA) in urban areasStrengthening the capacity of business management of WASA

①Water Treatment plant in Cambodia

②Japanese expert providing guidance on maintenance

③Japanese expert providing guidance on enlightenment activities

JICA’s Cooperation Schemes for Urban Water

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JICA has utilizes Japanese experience for technical cooperation. The situation in Japan- Water Supply Coverage ratio is 97.5% in 2010- Average NRW ratio of 1440 waterworks is 9.84% in 2010- Ratio of wastewater treatment is 88.1% in 2012

650 Engineers from over 60 water operators have worked with water operators in developing countries (1990~2006) .JICA has Invited many trainees from developing countries to Japanese water operators every year.

Characteristic of JICA’s technical cooperation

~Japanese Water Operators as partners~

Pipe connection

Pump operation

2. Activities and future vision in Pakistan

(1) JICA’s Projects for Water in Pakistan (2) Concept of JICA/WASA Lahore Model (3) JICA’s Strategy to Water Sector in Pakistan

JICA’s completed and on-going Projects for Water in Pakistan

Abbottabad (GA)Constriction of Water Treatment Plant

Lahore (GA and TC)- Provision of Pumps

for drainage and Sewage- Institutional Reform Advisor

(WASA Lahore Model)

Faisalabad (GA and TC)- Provision of Pumps

for drainage and Sewage- Expansion of

Water Supply System- Institutional Reform Advisor

Islamabad (GA and Loan)Constriction and Rehabilitation

of Water Treatment Plant

Karachi (TC and Loan)- Development of Master Plan

- Constriction and Rehabilitation of Water Treatment Plant

Financial Healthof WASAs

Revenue Increase

Expense Decrease

Reduction ofUFW/NRW

and Increasing Tariff collection

Reduction of O/M Cost

Efficiency Improvement and Reduce

Personnel Expense

CONCEPT OF JICA/WASA LAHORE MODEL

(1)For the propose of sustainable water supply, sewerage and drainage services,

(2)Ensuring the autonomy and independency of Service Providers (WASAs),

(3)Through assuring the financial health of Service Providers(by Revenue Increase and Expense

Decrease)

Water Tariff Revision

Revenue Increase

Water Tariff RevisionReduction of UFW/NRW

and Increasing tariff collection

Improvement of Water Quality

Improvement of Customer Service

Rehabilitation and Replacement of Distribution network system

Reduction of Illegal Connection and Uncollected revenue

Improving Collection efficiency(Computerization of billing system/ Outsourcing to private sector etc.)

Install Customer Meter

Clarification of Rights and ResponsibilityIn Relation with Customers

Creating Customer Relation Office

Preparation of PR Strategy and Awareness Campaign

Increasing Willingness to Pay

Establishment of TransparentlyTariff Revision Mechanism

Establishment of Municipal Water Commission

Preparation of Road Map and Operational Guidelines for Tariff Revision

Enactment of “Punjab Municipal Water Act”

Analysis of Financial Statement

Cash Flow Analysis

Construction/Rehabilitation of Water Treatment Plant and Water Pipeline

Introduction of Water Quality Monitoring

Prevention measure for Leakage

Introduction of Water MeterFor regular Surveillance

Introduction Leakage Control Program

Conducting Door to Door Survey

6 Years Business Plan

Enactment of “Punjab Municipal Water Act”

Breakdown of Revenue Increase Strategy

Preparing “Road Map and Operational Guidelines for

Tariff Revision”

Amendment of “WASA Regulation”

Financial Health of WASAs

Expense Decrease

Reduce O&M CostEfficiency Improvement and Reduce Personnel Expense

Rehabilitation and ReplacementOf Facilities and Equipment

Improvement of Operational Performance

Making rehabilitation and Replacement Plan

Budgeting necessary O&M Cost

Enhancement of Operator ‘s skill

Increasing the cost consciousness of WASA staffs

Introducing O&M Monitoring and Audit

Development of O&M Manual

Providing appropriate Technical Training

Improvement of Administrative Efficiency

Staff Redeployment

Reduce of Overlapping Work

Improvement of Productivity

Introducing the performance base Incentives

Setting-up of performance measurement system

Training of Staffs

Negotiation on Electricity Tariff

Energy Cost Saving

TO introduceEnergy Audit Mechanism

WASA Academy Project

6 Years Business Plan

Breakdown of Expense Decrease Strategy

ACTIONS TAKEN AND TO BE TAKEN UNDER THE MODEL

Step 1Analysis of the Status Quo and Making Reform

Strategy (Completed

in 2011)

Step2Establishment

of Sub committees(S/C)and preparing Module Projects(Completed in

2012)

Step 3Implementatio

n of Module Project (Under

Implementation)

WASA LAHORE

JICA’s TechnicalCooperation

PUNJAB PROVINCE(URBAN UNIT, HUD&PHED)

Step 4Punjab

Municipal Water Act and Capacity

Development(Under

Planning)

Making 6 Years Business Plan (Mid-Tem Business Plan): May 20th, 2011 approved by LDA

Setting Performance Monitoring Indictor and Establishment Performance Monitoring Cell(Total 42 Indicators, including 28 indicators recommended by WSP)

Drafting Road Map and Operational Guidelines for Tariff Revision Amendment of “WASA Regulations”

SC 1: Reduction of NRW and Water Pilferage(ex. Apparent Loss Reduction, Meter Installation & Replacement,NRW reduction, Customer Support Improvement etc.)

SC 2: Improvement of O&M efficiency and Energy Saving(ex. Energy Audit and Establish Energy Management Cell,Negotiation with LESCO, Regular Inspection for O&M etc.)

SC 3: Admin Efficiency Improvement and Staff Redeployment(ex. Financial Efficiency Improvement, Efficient Outsourcing etc.)

EX. (Actual Achievement) Detected illegal/misuse connection,

Rs.56 million added in WASA Revenue yearly

Billing ratio is 94% (79.1% in 2008) Energy Management Cell saved

energy cost Rs.575 million in 17 months(JAN 2012- MAY 2013).

Enactment of Punjab Municipal Water Act

Establishment of Municipal Water Commission

Tariff RevisionCapacity Development of WASA

Staff (WASA Academy and P-WOPs)

JICA’s Strategy to Water Sector in Pakistan

Step 1

• To Establish “JICA/WASA-Lahore Model” in Lahore City.

Step 2

• To Expand the Model to Other Major Cities in Punjab, such as Faisalabad, Multan, Rawalpindi and Gujranwala thorough WASA Academy.

Step 3

• To Expand the Model and Experience to other Provinces, like Islamabad, Karachi in Sindh, Peshawar in KP Province, Quetta in Balochistan etc, through P-WOPs and WASA academy.

WASA Academy and P-WOPs with technical support

of Japanese Waterworks

Future Achievement- Sharing WASA Lahore model and Japanese experience with WASAs, and Improvement of the Water Supply and Sanitation situation in Pakistan- Creation of the Relationship between Pakistan WASAs/P-WOPs and Japanese Waterworks/Waterworks Association

Thank you

~ A Successful model of “JICA’s Cooperation”

1. Preparation of a master plan on water supply in Phnom Penh city (JICA, 1993)

2. Improvement of water infrastructureJapan: Phum Prek WTP, DNI in “7th January” and Toul Kork districts

AFD: Chamcarmon WTP, DNI in Don Penh district

WB: Chroy Cang War WTP, DNI in Toul Kork and

Chamcarmon districts

ADB: DNI in Chamcarmon district

3. Capacity Development (JICA, 1998~2006)

COMPREHENSIVE ASSISTANCE OF JICA FOR RECOVERING WATER SUPPLY CAPACITY DAMAGED DURING THE CIVIL WAR

DNI: Distribution Network Improvement

Service coverage

25% _ 90%

Phnom Penh Water Supply Authority (Cambodia)

WTP: Water Treatment Plant

~ A Successful model of “JICA’s Cooperation”

ACHIEVEMENT

1993 2006

Service coverage 25% 90%

Service hours (per day) 10hrs 24hrs

Non-Revenue Water ratio 72% 8%

Collection ratio 48% 99.9%

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Extension (Second and Third phase: 2007~2017) From Phnom Penh to 8 other local operators

Phnom Penh Water Supply Authority (Cambodia)

Expansion in

Cambodia