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IPN – Israel Water Week

IPN – Israel Water Week. Improving the Water Service: The Case for Replicating Manila in Mexico Gerardo Angeles Castro Economic Development Network - IPN. Mexico City 17 th to 19 th September, 2014. Discussion in the relevant literature.

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IPN – Israel Water Week

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  1. IPN – Israel WaterWeek Improving the Water Service: The Case for Replicating Manila in Mexico Gerardo Angeles Castro Economic Development Network - IPN Mexico City 17th to 19th September, 2014

  2. Discussion in the relevant literature Impact of ownership on water utilities’ performance Da Silva et al. (2008), Le Lannier and Porcher (2013), Correia and Marques (2011), Braadbart (2002), Competition Estacheand Rossi (2002) Use of scaleeconomies Zschille and Walter (2012), Pozzoliet al. (2014)

  3. Approaches to water management Supply-Oriented Provision of essential resources to as many people as possible Infrastructure, maintenance, technology, Demand-Oriented Supply, sustainability, quality, efficiency United Nations (1992), Sosa-Rodríguez (2010) IntegratedWaterResourceManagement (IWRM) Supply, demand, middle and long-term planning, targets

  4. Maynilad, Manila, Philippines Philippines’ largest water provider, Oldest in Asia (136 years), privatised in 1997, managed by MPIC and DMCI since 2007 Maynilad’s Profile in 2012 Source: (Dimaano 2013) * NRW = Non-revenue water, the difference between the amount of water put into the distribution system and the amount that is billed to customers.

  5. Maynilad’s Non Revenue Water (NRW) Source: (Dimaano 2013)

  6. Evolution of Maynilad’s Indicators Source: (Dimaano 2013)

  7. Maynilad’s Strategies (1) Separation of the network into unique hydraulic systems and district metered areas (DMAs) Integrated meter management: replacement, correction of sizing, selection of quality meters, increase coverage Replacement of pipes, sustainedmaintenance, disconnection of illegal pipes, pressuremanagement, pressure regulating valves in DMAs, above-ground pressure monitoring points. Between 2008 and 2013: 1090 Kms of pipes were replaced or rehabilitated, 697,000 meters were replaced, 929 pressure reducing valves and 1,198 pressure monitoring points were installed

  8. Maynilad’s Strategies (2) Better relations with local customers, local governments and stakeholders Incentive and capacity building program for its staff Full trained and wellequippedteams Creation of a data management system

  9. Maynilad Before 2008 Illegalconnections Largediameterleaking Meter inaccuracies Unreliablewatersupply Old and complex pipe system Meter tampering, pin hole Source: (Dimaano 2013)

  10. Maynilad After 2008 Leak detection laboratory Pipe replacement Above-ground PMP Fully trained and well equipped Leak detection teams Leak repair control center Diagnose and assess NRW Source: (Dimaano 2013)

  11. Water supply sources in Mexico City SACMEX, Background Largest water utility in Mexico, it is a de-concentrated entity dependent on the local Ministry of Environment Source: Sosa-Rodríguez (2010), WorldBank (2013)

  12. SACMEX, Recent Evolution (1)

  13. SACMEX, Recent Evolution (2)

  14. Prospects for SACMEX Law of water and hydric sustainability (proposal) 1 Million people on the network Full and high quality coverage by 2018 19 new water treatment plants and renewing 16 more Renewing or substituting 3,115 pipe Km Investment: 0.741 BUSD Integral management of water resources (PGIRH) 2012-2032 Strategies and targets on infrastructure, stakeholders, aquifer recharge, improvement of commercial and financial system, water treatment, mitigation of climate change effects, sustainability, efficiency

  15. Conclusions Water provides can achieve great transformation in developing countries in a relative short period of time, the case of Maynilad Different owner ship but it shouldn’t make a change Both companies can take advantage of economies of scale SACMEX still faces many challenges But has set middle and long-term planning with clear actions and targets According to the plan it can be transformed in the middle-term as Maynilad But needs to become a decentralised organism to achieve management autonomy and to have control of its resources

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