Outsourcing of Water Loss Reduction Activities - the Malaysia Experience

摘要

Unaccounted-for Water (UfW), Non-Revenue Water (NRW) or simply water losses, the difference between water produced and water sold, has reached unacceptable levels in the majority of water utilities all around the world. Outsourcing of water loss reduction activities is often the only feasible solution. The paper describes the concept of 'Performance Based Water Loss Reduction' in general and provides detailed information on the world's largest NRW reduction contract - the Selangor NRW Reduction Project. The performance target of Phase 1 was to reduce NRW by 18,540 m3/day. The works were completed on time and the target has been over-achieved. Based on this success, Phase 2 of the Project has commenced in April 2000 with the aim of reducing NRW across the entire State of Selangor, by 200,000 m3/d over a 9 year period. After the first 2 years of the project, all targets have been substantially overachieved.rnThe project cost is Malaysian Ringgit 398 M (equivalent to US$ 105 M) with a pay-back period is 6.7 years. The Internal Rate of Return was calculated to be 33.2 % based on the assumption that the value of water equals the average tariff of RM 1.27 (equivalent to 0.33 US$). It can be concluded that Performance Based NRW Reduction Contracts are a feasible model for water utilities around the world.