Water & Wastewater Asia November/December 2022

FOCUS
Given these responsibilities, the programme
needs a team that has the capabilities to
oversee the entire water infrastructure
lifecycle. Utility authorities should aim to
build capacity in the areas of law, regulatory
frameworks, project planning, technology and
technical capabilities. Regular collaboration
and investment co-sharing across public
utilities will also be beneficial in building these
capabilities.
SECURING THE RIGHT RESOURCES
Selecting the right mechanisms to resource
this strategy can also strengthen NRW
reduction outcomes and programme
management. Utility authorities should make
informed decisions on financing tools based
on project requirements, public-private
partnerships and risks. Facilitators like
Infrastructure Asia can intervene by bringing
together experts from relevant domains to
help bridge financing gaps.
Developmental financing is a useful
foundational tool to consider. Development
finance institutions (DFIs) such as the World
Bank Group and the Asian Development
Bank provide helpful mechanisms such
as equity participation, guarantees and
technical assistance to fund NRW reduction
programmes with high risk.
To further plug the financing gaps, utility
authorities with strong public-private
partnerships can explore private sector
financing to form a blended finance model.
By tapping on high liquid international private
capital such as the Climate Invest Two (CI2)
fund, utility authorities can appropriately fund
activities along the water infrastructure value
chain.
Another mechanism is performance-based
contracting (PBC), which incentivises private
companies to deliver NRW outcomes more
efficiently and innovatively by granting
contractors more flexibility in implementing
solutions. Through this option, contractors
are reimbursed based on their NRW
programme performance. This option was
utilised successfully in Ho Chi Minh City’s
NRW reduction efforts, with the city saving an
impressive 122 million litres of water daily.
EMBRACING BEST FIT TECHNOLOGIES
Utility authorities can also explore applying
technologies such as artificial intelligence (AI)
or machine learning to water production and
distribution. Utility authorities should evaluate
current processes and identify digitalisation
opportunities, as doing so can improve NRW
programme outcomes such as operational
efficiency, monitoring accuracy and cost
management.
There are many exciting potential
applications. For example, digital control
systems and AI can improve the productivity
of monitoring teams by identifying big leakage
points and prioritising pipe rehabilitation
efforts. Commercial losses can also be
reduced by using digital water meters and
online data monitoring services to monitor
meter performance and functionality more
closely. Finally, sensors could be used to
improve pressure management by modulating
water supply and ensuring maximum asset
lifetimes.
THE NRW SUCCESS OF MALANG CITY
To demonstrate the strength of this approach,
utility authorities can learn from Indonesia’s
Malang City. In exemplifying the three-enabler
approach, the East Javan city was able to
reduce NRW by 30%. This amounted to
savings of more than 70 million m 3 of water
and about $24m in revenue in 10 years,
improving citizens’ access to potable water.
Malang City’s utility authorities, known as
Perusahaan Darah Air Minum (PDAM) Tugu
Tirta, first received strong management
support to formulate a 10-year plan and
roadmap. The PDAM secured more than
5bn rupiah (US$4m) to begin the
transformation of the city’s water
infrastructure and facilities.
A team with relevant capabilities was also
created. With experience in deploying
infrastructure digital solutions, they worked
with private sector partners to set up virtual
distributed meter areas (DMA) in critical
zones. This allowed them to digitalise their
assets, enabling real-time monitoring of water
leakages to prioritise leak repair efforts with
minimal manpower.
Following its initial success, the PDAM
Tugu Tirta further optimised its operational
efficiency by setting up a 24/7 command
centre and deploying sensor technologies
to better manage water pressure
management and detect active leaks. On
top of contributing to a lower NRW rate,
these digital capabilities enabled the PDAM
to decrease overall commercial losses by
speeding up water leakage fixes to just one
day.
COMING TOGETHER
For many developing societies, water is
a crucial resource that needs to reach all
segments of society safely and sustainably.
Ideally, it should also deliver optimum results
for a country’s economy and infrastructure.
Reducing NRW is key to these outcomes.
Moving forward, it is important that utility
authorities around the world share knowledge
to address NRW and similar challenges.
Malang City’s has shown that there are many
valuable lessons to be shared with other
Asian cities, who can adapt them to solve
similar local issues. With that, Infrastructure
Asia and the World Bank Group will be
working closely together with more cities to
scale similar non-revenue water successes in
the region.
Lavan Thiru is the
executive director at
Infrastructure Asia
WATER & WASTEWATER ASIA | NOVEMBER/DECEMBER 2022 43