Performance improvement planning : designing an effective leakage reduction and management program

One of the principal concerns today for the deteriorating quality of water supply and sanitation services in India is the high levels of non revenue water (NRW)-the difference between the amount of water put into the distribution system and the amount of water billed to consumers. High levels of NRW result from huge volumes of water lost through leaks or water not invoiced to customers or both, and this seriously affects financial viability of water providers through lost revenues, increased operational costs and, eventually, increased capital costs. Reducing non revenue water levels does not necessarily compromise on a service provider's ability to subsidize services for the poorer sections of the population; rather, it allows for improved transparency and accountability, and for ensuring better targeting of subsidies such that they are more equitable and actually reach poor people. The approach to reducing NRW includes a set of activities aimed at the optimization of water supply through improved operations, maintenance, and sound management practices of distribution networks as well as governance and management reforms through specific operational and commercial strategies. However, if NRW programs are to remain sustainable in the long run, they must target institutional and organizational reform while encouraging efficiencies through technical and managerial improvements and enhancing human resource capacity. This field note captures the core principles for the effective implementation of non revenue water programs through real world examples of service providers implementing such programs in India and Vietnam. The case studies demonstrate that successful leakage reduction and its effective and sustainable implementation has not been a result of erratic and irregular technical exercises to reduce physical losses.