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PWWA Six years of Benchmarking

Join the Pacific Water and Wastewater Association (PWWA) in benchmarking efforts to improve utility performance, resolve common issues, and secure financial resources. Explore the three groups of utilities and the improvements recorded through benchmarking. Help us target the poor, correct tariff structures, and work towards sustainable water services.

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PWWA Six years of Benchmarking

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  1. Alexander Danilenko and Misileti Masoe-Satuala PWWA Six years of Benchmarking PWWA.ws; PWWA2.ib-net.org

  2. Key objectives • Make PWWA and utilities known; put them on the world map • Help to improve performance, find common issues and help to resolve them together • Correct and upgrade tariffs • Learn from each other, and seek for help in knowledge and training • Justify investment projects, search for financial resources

  3. Members and participation • 29 water companies • From very small (Niue – 1000 people) • To large (FWA, Fiji – 1 million people) • Three million of people living of the utilities territory • Serving 2.6 million with water services and 1.4 million with wastewater services • Water market size: nearly US$250 million billed annually on average in 2011-2016

  4. Three groups of utilities. Group 1 • Utilities from high income countries (GNI per capita >US$20,000) • Established water and wastewater systems • Highly developed water networks • No or little issues with charging adequate tariffs for services

  5. Three groups of utilities. Group 2 • Utilities from the countries with annual GNI between 10,000-20,000 • Developing water systems; introducing wastewater collection and treatment • Significant issues with coverage and expansion to new customer of many of them • Issues with affordability

  6. Three groups of utilities. Group 3 • Utilities from the countries just started forming water services for all • Significant issues with development of water systems • Almost no wastewater collection, except cleaning latrines • Very high cost of services; issues with water availability and climate change • On the way to become a member of the Group 2

  7. Participation in benchmarking • True leaders in benchmarking work; participated in all rounds of benchmarking in 2010-2016: great kudos for all of you! • ASPA, American Samoa • Eda Ranu, Papua-New Guinea • Water-PNG, Papua-New Guinea • WAF, Fiji • Samoa Water Authority, Samoa • SIWA, Solomon Islands • TWB, Tonga • Majuro, Marshall Islands • Chuuk, FSM • PUB, Kiribati

  8. Recently joined and 5 years of benchmarking Thank you – please keep up and share your data! • New Caledonia • French Polynesia • GWA, Guam • UNELCO, Vanuatu • Central Yap State Public Service (CYSPS), FSM • Tuvalu • Kajur, Marshall Islands • Cook Islands • Niue • IWSA, Samoa • Palau Public Utilities Corporation (PPUC), Palau

  9. We are waiting for you, dear colleagues! • Pohnpei Utilities, FSM • Northern Yap GagilTomil Authority (NYGTA), FSM • Southern Yap Water Authority (SYWA), FSM • Department of Transportation and Infrastructure, Kosrae, FSM • Saipan, Northern Marianna Islands and all others!

  10. Improvements recorded Two companies connected almost 170,000 new customers

  11. Development in Eda Ranu and SWA, Samoa

  12. Cost recovery

  13. Benchmarking brings attention from donors: • New projects started in: • Water-PNG – World Bank (2016) • Kiribati – jointly ADB and World Bank (2017) • WAF – ADB (2016) • TWB – ADB (2016) • Micronesia – ADB (2015-2016) • Prospective projects SIWA – Solomon Islands (jointly ADB and World Bank) • Tariff corrections – in almost every utility • PWWA got funding from AusAID to continue benchmarking

  14. PWWA Tariff database • https://tariffs.ib-net.org/sites/pwwa/Home/IndexPwwa

  15. Example from Samoa, SWA

  16. Example from Samoa, SWA

  17. Tariff Comparison (consumption 15 m3/conn a month)

  18. Information from two databases for tariff efficiency • Revenues • Billing amount • Volume billed • Number of connections • Tariff structure • To know efficiency of tariffs

  19. Tariff Structure for Utilities

  20. Estimated Probability Density Function for Utilities American Samoa Eda Ranu PNG Water CAESB

  21. Findings: Majority of Users Consume in 1st block poor 6% poor 30% poor 40% poor 11%

  22. Conclusions • Targeting the poor • Pricing below cost recovery in the 1st block is risky • Consumers of the last block generally tend to be more price-elastic • Depending on one set of consumer class (the high-end consumers) to recover costs is risky

  23. Next steps Data collection 2017 – by December 2017 Tariffs collection 2017 – by November 2017 Training on benchmarking – as per PWWA plan Tariff efficiency assessment – by March 2017 Bi-annual PWWA report draft circulated – June 2017 Bi-annual PWWA report (by the meeting in Noumea) – August 2018

  24. Let us work together!

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