Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

WATER & SANITATION PERFORMANCE BENCHMARKING INDICATORS

A. Coverage
INDICATOR 1. Water Coverage UNIT 85.7% DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Population with easy access to water services (either with direct service connection or within 200m of a standpost or served by other sources of potable water provided by the utility e.g. deep bore handpumps)/total population under utilitys notional responsibility, expressed in percentage. Population of the city is 9.8 M (1998 census), 14 M (JICA 2005 report) and 12.8 M (ADB 2005 report). Water department staff uses 13 M while the planning department uses 14 M figures for their calculations. Based on 14 M figure: Through legal connections = 9.0 M (64%) Theft & lossess in Katchi Abadies = 2.7 M ( 19%) Through Tankers = 0.3 M ( 2%) Population with sewerage services (direct service connection)/total population under utilitys notional responsibility, expressed in percentage. About 70% area of Karachi is covered by KWSB. The detail of remaining 30% area is as under Area Sewerage Responsibility 5 Cantonment Boards Cantonment Boards Karachi Development Authority (KDA) Karachi Municipal Corporation (KMC) EDO (W&S), CDGK District Municipal Corporations (DMCs) Zonal Municipal Corporation (ZMC) 1

2. Sewerage Coverage

70% - 75%

Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

Katchi Abadies Private Housing Societies

Sindh Katchi Abadi Authority EDO (W&S), CDGK 95% Housing societies and 5% KWSB

B. Water Consumption and Production

INDICATOR 3. Water Production UNIT 173 lpcd DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Total annual water supplied to the distribution system (ex-treatment plant and including purchased water, if any) expressed by population served per day. 540 MGD for 14 M population (Total annual water sold + Total annual volume of free supplies) expressed by population served per day Total Water sold = Total water supplied UFW = 540-189=351 = 351+ free supply (4 MGD) = 355 MGD for 14 M population the 114 lpcd figure will improve if we include water illegal consumed water through leakages and theft 355 + 81 MGD for 14 M population Breakup of water consumption is as follows: 4 MGD gratis supply through tankers (2%) 55 MGD for industries (16%) 12 MGD for commercial (3%) 3.5 MGD for agriculture (1%) 2

4. Water Consumption

114 lpcd

140 lpcd

Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

276.5 for domestic (78%) 351 MGD 5. Metered Water Consumption lpcd Total annual metered water consumed expressed by metered population served per day

C. Unaccounted for Water

INDICATOR 6. Unaccounted-for-Water UNIT DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Difference between total water produced (ex-treatment plant) and total water consumed (which is water sold plus free supplies) expressed as a percentage of total water produced. Transmission losses 5% = 27 MGD Head Loses 5% = 27 MGD Friction losses 5% = 27 MGD Leakages Losses 10% = 54 MGD Theft losses 10% = 54 MGD Total 35% = 189 MGD It is estimated that about 50% of water lost in leakages and 100% lost in theft losses is consumed by residents. Total water produced = 540 MGD Total Water Consumed = water sold+ free supplies + consumption against leakages = 347+4+81= 432 540-432= 108 Total water produced = 540 MGD Total Water Consumed = water sold+ free supplies= 347+4= 351 3

20 %

Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

INDICATOR

UNIT 35%

DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) 540-351= 189 MGD Difference between total water produced (ex treatment plant) and total water sold expressed as a percentage of total water produced. Total water produced = 540 MGD Total water sold = 347 MGD for 14 M population 540-347 = 193 MGD

7. Non-Revenue Water

35.7%

D. Metering Practices
INDICATOR 8. Proportion of connections that are metered 9. Proportion of functional meters 10. Proportion of water sold that is metered % % % UNIT DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Total number of metered water connections expressed as a percentage of total number of connections Total number of water connections with functional/operating meters expressed as a percentage of total number of metered water connections Volume of water sold that is metered expressed as a percentage of total volume of water sold

E. Pipe Network Performance

INDICATOR 11. Pipe Breaks 12. Sewerage Blockages UNIT breaks/km/yr. blockages/km/ DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Total number of pipe breaks per year expressed per km of the water distribution network. Total number of blockages per year expressed per km of sewers

Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

yr.

F. Cost and Staffing

INDICATOR 13. Unit Operational Cost Rs. 22.94/000 glns sold Rs.14.74/000 gln produced 6/1000 connections 32 % UNIT DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Total annual operating expenses1/Total annual volume of water sold. Total annual operating expenses1/Total annual water of water produced. For FY 2004-05 Total operating expanses = Rs. 2906.66 M Total annual volume of water sold = 347*365 = 126655 MG/year Total operating expanses = Rs. 2906.66 M Total annual volume of water sold = 540*365 = 197100 MG/year Total number of staff expressed as per thousand water connections and per thousand water and sewerage connections. Total annual salary costs (including salaries, wages, pensions, other benefits, etc.) expressed as a percentage of total annual operating costs. For FY 2004-05 Total operating cost = Rs. 2906.66 M Total salaries + benefits = Rs. 934 M Total annual power/electricity costs of the utility expressed as a percentage of total annual operating costs. For FY 2004-05 Total operating cost = Rs. 2906.66 M Total power/electricity cost = Rs. 1672,05 M Total cost of services contracted-out to the private sector expressed as a 5

14. Staff/000 Water conn. Staff/000 W&S conn. 15. Salary Costs as a proportion of Operating Costs

16. Power/Electricity Costs as a proportion of Operating Costs

58 %

17. Contracted-out service

NIL

Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

costs as a proportion of Operating Costs

percentage of total annual operating costs.

G. Quality of Service

Note 1: Annual operating expenses exclude depreciation, interest and debt service INDICATOR UNIT Hrs/day DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Average hours of service per day for water supply. On average 10% - 15 % receives 2hrs/week 20% - 25% receives 4-5 hrs/3 days 30% - 35% receives 4-6 hrs/alternate day 25% - 30% receives 10-12 hrs/day and lucky 5% receives 24/hrs day

18. Continuity of Service

19. Complaints about W&S services

% of W&S conn

Total number of W&S complaints per year expressed as a percentage of the total number of W&S connections Sewerage: Jan-Aug 2005, 135400 complaints received, 129984 resolved

20. Wastewater treatment

17 %

Proportion of total sewage generated that is treated by at least primary treatment (including screening). There is no mechanism to measure actual volume of wastewater. KWSB uses conventional formula of 65% of total water supplied is wastewater 540MGD * 65%= 351 MGD is volume of wastewater. Three Treatment plants are operational receiving and treating about 90 MGD. 351-90= 261 MGD wastewater is discharged into Liyari (60%) and Malir (40%) untreated. 90/540 * 100 = 17

Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

H. Billings and Collections

INDICATOR 21. Average Tariff 22. Residential fixed charge 23. Ratio of industrial to residential charges 24. Connection charge Water Supply and Sewerage 25. Collection Period UNIT Rs./m3/yr. Rs./conn./yr. % Rs. yearly DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Total annual operating revenues (W&S) expressed by annual amount of water sold. Any fixed component of the residential tariff (total amount). The average charge (per m3) to industrial customers compared against the average charge (per m3) to residential customers. One time charge for obtaining a residential piped water supply connection and a residential sewer connection. Year-end accounts receivable/Total annual operating revenues expressed in months equivalent of sales.

I. Financial Performance
INDICATOR 26. Working Ratio UNIT 1.1 Ratio DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Total annual operating expenses/Total annual operating revenues For FY 2004-05 Operating expanses = Rs. 2906.66 Operating Revenues = Rs. 2553.59 2906.66/2553.59 = 1.3

Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

27. Debt Service Ratio

% Operating Revenues

Total annual debt service costs expressed as a percentage of total annual operating revenues.

J. Capital Investment
INDICATOR 28. Investments UNIT % Operating Revenues DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Total annual investments expressed as a percentage of total annual operating revenues.

BENCHMARKING WATER AND SANITATION UTILITIES DATA DEFINITIONS The benchmarking data lists, and their associated definitions, are provided in the Table below. Almost all data items are required as either a numerator or a denominator for one or more of the core cost and performance indicators. The few that are not used for this purpose have been collected to provide additional data that will be helpful in making comparisons between utilities. These additional data items are identified by the letters FIO (For Information Only). Please provide the information/figures for all the data items for the Financial Years (FY) 2000-01, 2001-02 and 200203 i.e. for the years ending 31st Mar 2001, 31st Mar 2002 and 31st Mar 2003 respectively.

Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

S No. I 1

Data Item General Information: Utility Utility name

DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Full name of utility. Please provide: Long name up to 50 characters Short name up to 20 characters Karachi Water & Sewerage Board (KWSB) Full contact details to allow communication with WSP State country in which utility is located Pakistan State region/state within country Sind State City on which utility services are centered Karachi Country/Region/Citys minimum annual per capita salary Total population under notional responsibility of the utility irrespective of whether they receive service 12.8 M 14 M Specify if : (A) Water only (B) Sewerage only (C) Water and sewerage (D) Water, sewerage and other (C) Specify if : (1) Urban; (2) Rural; or (3) Urban and rural. (3) Total number of towns under responsibility of the Text

Unit

2 3 4 5 6 II 1

Contact Name, Address, Tel. #, Fax #, e-mail Country (FIO) Region/State (FIO) City (FIO) Minimum Annual Salary (FIO) General Information: Utility Service Area Total Population.

Text Text Text Text Rs./yr.

000 inhabitants

2 3 4

Type of services provided Nature of service area Number of Towns served with Water (FIO)

A,B,C,D as the case may be 1,2,3 as the case may be Number

Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

S No.

Data Item

Number of Towns served with Sewerage (FIO)

DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) utility irrespective of their service coverage. 18 + 2 = 20 Total number of towns under responsibility of the utility irrespective of their service coverage. 18 some partially some fully Total number of staff working at the utility. 1992-3 1995-6 1997-8 2004-5 12281 13865 8748 8260 Look at the use of the private sector in routine operation of the utility e.g. O&M, landscaping, security, billing, etc. - A) None B) multiple service contracts C) management contract(s) D) lease contract(s) E) concession contract(s) F) BOOT/BOT(s) G) full divestiture to private sector A Population under responsibility of the utility with access to water through house connections and standpipes (including other sources of potable water which are provided by the utility e.g. deep bore handpumps)

Unit

Number

Total Number of Staff

Number

Extent of private sector involvement in the routine operation of the facility (i.e. excluding capital creation and procurement)

A, B, C, D, E, F, G as the case may be

III 1

Water service Population served 000 inhabitants

2 3

Water Connections year end Households connected year end

Number of water connections at year-end. 000 Number of households served at year-end 000 (households might not correspond to connections e.g. cities with hi-rises/apartment blocks, etc served by a single connection; so this figure should include the total number of households in each high10

Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

S No.

Data Item

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 IV

Inhabitants/household Metered Connections Connections with operating/functional meters Metered Household Connections Households with operating/functional meter Length of water distribution network Volume of water produced Volume of water sold - metered Volume of water sold - unmetered Volume of free supplies Volume of water sold to residential customers metered Volume of water sold to residential customers unmetered Volume of water sold to industrial customers Number of Pipe Breaks Duration of supply Number of complaints Sewerage service

DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) rise/apartment block). Number of inhabitants per household. Total number of metered water connections Total number of metered water connections whose meters are functional/operating at year end Total number of household connections that are metered Total number of metered household connections whose meters are functional/operating at year end Total length of the distribution network (excluding transmission lines) Total volume of water produced for the service area (ex-treatment plant and including purchased water, if any). Total volume of water billed which is metered. Total volume of water billed which is unmetered. Total Volume of water that is supplied by the utility free of cost (through public standposts) Total volume of water billed to residential customers which is metered. Total volume of water billed to residential customers which is unmetered. Total volume of water billed to industrial customers Total number of water pipe breaks in the distribution network during the year. Average hours of service /day. Total number of customer complaints related to the water service during the year.

Unit

Number 000 000 000 000 Km Million m3/year Million m3/year Million m3/year Million m3/year Million m3/year Million m3/year Million m3/year Number Hrs/day Number

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Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

S No. 1 2 3 Population served

Data Item

Sewerage connections year end Households connected year end

4 5 6 7 8 9 V

Length of sewers Number of complaints Number of sewerage blockages Sewage Generated Sewage Collected Wastewater treatment Financial Information

DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) Population under responsibility of the utility with sanitation services through house connections. Number of sewerage connections at year end in thousands. Number of households served at year end in thousands (households might not correspond to connections e.g. cities with hi-rises/apartment blocks, etc served by a single connection; so this figure should include the total number of households in each high-rise/apartment block)). Total length of the sewerage network. Total number of customer complaints related to the sewerage service during the year Total number of sewerage blockages in the collection network during the year. Total Volume of sewage generated from the service area under the Utility Total Volume of sewage collected from the service area under the Utility Proportion of sewage generated that is treated to at least primary level (i.e. screening and settlement of influent sewage)

Unit 000 inhabitants 000 000

3500 miles 684 Number Number Million m3/year Million m3/year %

The information to be provided in this section is self-explanatory. However, definitions are given when ambiguity might exist. Much of the information is available in the annual financial statements. Otherwise, the source of information should be specified. If possible please comments on how fixed assets are valued. All information is annual and should be provided in local currency. Total Operating Revenues Total billing of water and sewerage services,

Rs. 2553

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Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

S No.

Data Item

2 3 4 5 6 7 8 9 10 11 VI

Total billings to residential customers Total billings to industrial customers Total Operational Expenses Salary Costs Power/Electricity Costs Contracted out Services costs Total Net Fixed Assets Total Debt Service Annual Investments Year end accounts receivable Tariff Information

DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) connection fees, well abstraction fees, reconnection fees and other operational revenues including subsidies, but excluding all taxes Total amount billed to residential customers during the year to include fixed and volumetric charges only. Total amount billed to industrial customers during the year to include fixed and volumetric charges only Total operational expenses (W&S) excluding depreciation and financing charges (interest and principal repayments). Total annual salary costs (including salaries, wages, pensions, other benefits, etc.). Total annual power/electricity costs of the utility Costs of all services within Item II (7) above which are provided by private firms. Net Book Value of fixed assets at year end

Unit

Rs. Rs. Rs. 2906.66 Rs. 934.40 Rs. 1672.05 Nil Rs. 26117.920 M Rs. 1323.74 M

Total annual debt service costs (Including interest and repayment of principal) Amount of capital investment during the year Total of all accounts receivable at year end including Rs. 1159.07 M water billings, and all other outstanding invoices.

The information to be provided in this section is also self-explanatory. This information should be obtained from the tariff structure. Tariff Structure Provide complete tariff structure for all categories of consumers (domestic, commercial and industrial)

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Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

S No. 2 3 4

Data Item Fixed charge per month for residential customers Connection charges Water Connection charges Sewers

DEFINITION (IN BLUE) COMMENTS/REMARKS/DETAILS (IN BLACK) INFORMATION TO BE COLLECTED (IN RED) The fixed component of the bill (if any) for the provision of water and wastewater services. Indicate no fixed charge with a Zero Lump sum cost for residential water connection Lump sum cost for residential sewer connection

Unit Rs./month Rs. Rs.

BEST PRACTIC
Various studies of World Bank, proposes the following best practices targets for utilities in developing countries. The following figures are based upon the actual performance of the top 25% of 123 utilities studied in 44 developing countries by World Bank in 2000: Unaccounted for water < 23% 5 or fewer staff per 000 connections A working ratio of 0.7 A billing collection period of 3 month or less Connection fee no higher than 20% of the annual per capita GDP 24 hours service ideally 100% coverage - ideally Maximum metered connection

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Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

Consumption based tariff

Phnom Penh example

Phnom Penh, the capital of the Kingdom of Cambodia, has a total land area of 375 km2 divided into 7 districts. The city center, 7.5% of the total land area, consist of 4 small districts, is populated by 55% of the total one million Phnom Penh inhabitants. Main source of water is the river and the quality of the rivers water changes under the influence of the monsoon. In 1993 the utility received foreign funding and embarked upon brining reform in water and sanitation sector. Ten years down the lane their performance is remarkable.

Performance Improvement
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Staff/1000 Connections Qualified Staff 42 Capacity, m3/day Coverage Supply Network Supply Pressure Supply Duration Connections Illegal Connections Metered 1993 22 172 65,000 25% 280km 0.2 bar 10 hr/day 26,881 >300/year 12% 235,000 80% 870km 2 bar 24 hr/day 95,000 <100/year 100% 2003 5

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Benchmarking Urban Water & Sanitation Utilities

Water & Sanitation Program South Asia

11. 12. 13. 14. 15. 16.

Billing Ratio Collection Ratio Non-revenue Water Total Income Operating Expenses Total Expenses

28% 50% 72% 0.7 bill. R 1.4 bill. R N/A

94% 99% 16% 34 bill. R 9.4 bill. R 27 bill. R

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