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Beirut, July 2017

Selected Urban Water Challenges. Examples from Dobrich Water Operator, Bulgaria. Are any of them applicable to Middle East Region?. Beirut, July 2017. Contents. Dobrich Water Company : brief introduction

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Beirut, July 2017

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  1. Selected Urban Water Challenges.Examples from Dobrich Water Operator, Bulgaria. Are any of them applicable to Middle East Region? Beirut, July 2017

  2. Contents • Dobrich Water Company: brief introduction • Specific problem 1:which projects/assets are not addressed by the sizeable EU funds (or other donor/IFI money) • Specific problem 2: how far could and should NRW be fought – the effect of falling consumption • Specific problem 3: tariff elasticity or “why the 4-per-cent threshold is a good theory but tough practice“ • Suggested (unprejudiced) approaches for resolving these problems

  3. Dobrich Water in Brief The Region • 189 700population • 92 000 in Dobrich city only • 8 municipalities • 4 720 кm2area • > 30% of country-wide wheat production • Best conditions for renewable energy in Bulgaria The Company • 7.8 million m3 billed • 18.5 million BGN revenue • 200 thousand BGN loss • > 80% NRW • 60 GWh annual electricity consumption • 3 100 km of water network • > 110 thousand accounts

  4. Problem 1: „Neglected“ Assets Trunk main 20 kmlosses of 3000 m3/d Big inter-village trunk mains in the periphery of large CAPEX projects Source 2 Dobrich city PS Reservoir PS PS PS Trunk main 15 kmlosses of 2000 m3/d Trunk main 6 km losses of 1000 m3/d PS Source 1

  5. Problem 2: Falling Consumption

  6. Falling Consumption: Another Angle…

  7. Problem 3: Tariff Elasticity Is it realistic at tariff above BGN 3 per m3 (USD 1.5 ) people in villages to stop using the service at all? At tariff of BGN 2.84 per m3 the consumers in villages with their own well declare (and implement in practice) intentions to stop being clients to the water and sewerage operator…

  8. Suggested Approaches Problem 2: NRW Targets under Falling Consumption Problem 3: Tariff Elasticity Problem 1: “Neglected“ Assets “Diverging“ EU funds from low-priority urban networks and WWTPs towards trunk mains outside city boundaries? Reconsidering the indicator “NRW” (% vs.m3/km)? Focus on ELL concept – Economic Level of Leakage? Social aid for W&S consumers? Differentiated tariff (the starting 3 m3 at lower tariff)?

  9. Other Thoughts While most problems at utility level seem to be manageable through operations and commercial interventions, in a highly regulated and sensitive sector such as urban water supply, institutional, regulatory and tariff decisions may be crucial. Examples include: • Setting up tariffs and finding balance between affordability and cost recovery • Investment prioritization (water security vs. environmental compliance) • Identifying regulatory KPIs and target setting Michael Rouse concept on POLICY MAKING, REGULATION AND DELIVERY

  10. Contacts Radoslav Russev ViK Dobrich EOOD (Dobrich Water Company) Currently World Bank Consultant radorussev@gmail.com ++359 886 442 758

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