Misileti Masoe-Satuala and Alexander Danilenko Nuku’alofa Tonga

1. Misileti Masoe-Satuala and Alexander Danilenko Nuku’alofa Tonga

2. PWWA Mission: Develop expertise in the Pacific for the sustainable management of water and wastewater services • PWWA Vision: Shaping a cohesive, proficient and robust Pacific water utilities’ sector

3. Benchmarking Objectives • Strengthen efficiency and improved performance of PWWA water and wastewater utilities • Enhance information flow that will contribute to improved decision-making in water and wastewater utilities leading to better direction an oversight for utilities’ stakeholders • Promote performance transparency • Develop mechanisms to identify gaps in water supply and sewerage services across the pacific for development partners; and • Improve PWWA capability and commitment to reporting information, and to supporting sustained performance benchmarking over time

4. Benchmarking results in practice • Bring attention to water services • Bring understanding of issues and problems • Adjust financial systems • Bring finances to the sector • Bring investment to the sector

5. Database and knowledge • 28 utilities from 22 countries • National utilities 14 • 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 2000 visits since launch in Feb. 2015 • Data accredited for 5 utilities only (EdaRanu, Enelco, Guam, American Samoa, Fiji) • Utilities that did not provide data for 2015 - 4

6. Database and knowledge (2) • Standardized data collection based on the IWA toolkit with > 90 parameters collected for each participating utility; new gender indicators added in 2015 • Five years of data available – 2011-2015 at www.pwwa.wsand pwwa2.ib-net.org • Tariff database under development

7. PWWA Benchmarking issues • The scattered locations of utilities and information. In addition, the lengthy time it takes to collect needed information • Data quality. The PWWA team was able to overcome the data and reporting inconsistencies through communication with utilities and training • For benchmarking sustainability, PWWA needs to invest in a benchmarking officer who can take full management and ownership of the process instead of relying on donors and other outside support • Every PWWA utility member need to appoint a focal person for benchmarking work

8. Data quality resolution process • The IBNET data collection toolkit employs 71 filters to prevent accidental or mistaken input data. At the upload, a special consistency tool marks outliers and inconsistent results, and post-upload check allows for further analysis of data quality • The PWWA conducted a special training and assessment of data quality in Auckland, New Zealand, and Guam, USA with majority of the PWWA members in the spring of 2015 • Data verification protocol. PWWA asked utilities to identify sources for 25 key parameters

9. Performance results

10. Preliminary comments • Every utility is unique – comparisons possible, but need to be taken with caution • Every utility is a part of governmental system. There are no such thing as independent water utility. So performance widely depends on external institution factors • Every utility does as much at it can within its technical and financial envelope

11. Investment in water utilities • Market is known • Competitors are weak; payment enforcement is easy, although may not be politically attractive • Stable and predictable flow of (local) revenue. Proper billing and metering can significantly improve financial flows • Predictable costs, predictable fluctuation of costs • Well in advance known investment plans • Significant externalities push for support from the Governments and municipal owners • Nobody wants water company to get bankrupted: your finances are safe in any conditions (extreme example of SODECI, Cote d’Ivoire whichoperatedthrough civil war) • Potential for both (i) increase of revenue and (ii) reduction of costs

12. Investment Practice • Only 7 companies reported completed projects in 2015 • 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 (very) 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

13. Prisoner dilemma of a utility manager

14. Water coverage, % Utilities with water coverage below 100%

15. Wastewater coverage, % PWWA members with wastewater coverage below 50%

16. Costs, revenues, and cost recovery Utilities with cost recovery below 100%

17. Water production, consumption and UFW Water consumption is below 50 lpcd in

19. Female personnel and salary

20. Setting targets • We have data – let us use them • Setting priorities • Expansion with water services (low coverage, poor water quality) • Water shortages • Reduction of NRW: are we ready for this? • Financial stabilization and corporatization • Development of wastewater collection and treatment • Data quality improvement (for all)

21. 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%

22. 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 and Tokelau – 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

23. Reduction of NRW • NRW above 50% reported: • ASPA, American Samoa – 67% • Chuuk. Micronesia, 75% • GWA, Guam – 55% • EdaRanu, PNG – 55% • SIWA. Solomon Islands – 62% • Water Authority of Fiji – 51%

24. Financial stabilization • Costs are not recovered in 2011-2015: • 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

25. 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?

26. Way forward • COLLECT performance data and publish results at PWWA.WS • Publish information • Set targets and develop projects on the basis of the available information • Make tariff database public – provide tariff data to PWWA secretariat • Make a marketplace for individual projects at PWWA platform • Develop model for internal benchmarking for large utilities • OUR TARGET: Every utility will prepare investment project based on the benchmarking report by the end of 2017 • Gap analysis funded by PRIF – Jan Willem Veerbeck