NON-REVENUE WATER
Financing NRW projects post Covid-19 The continuous supply of clean water is more important than ever as the globe fights the Covid-19 pandemic. Reducing non-revenue water (NRW) is one of the most effective ways to improve water supply. By Danielle Petterson
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ith handwashing being the cheapest, most widely available defence against Covid-19 infection, reliable piped water supply to premises is vital. However, as utilities come under financial pressure, ensuring this water supply may become more difficult.
Covid-19-induced challenges
According to David Ehrhardt, chief executive, Castalia, water utilities are facing reduced income and increased expenses due to the Covid-19 pandemic. Utilities around the globe are reporting a cash flow reduction of
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anywhere between 30% and 90%. This is largely due to reduced demand from large industrial and commercial consumers, payment holidays granted by utilities, consumers being unable to pay their bills, and a suspension of disconnections due to non-payment. This is coupled with higher operating costs due to PPE and social distancing requirements, and generally more difficult operating conditions. “In cities with dense underserved communities, as is the case in many African countries, there is not much people can do to protect themselves aside from frequent handwashing and good hygiene. If you don’t have a safe water supply, or must queue at a water point, it creates a greater health risk. Utilities are therefore under increasing pressure to supply services with less money,” says Ehrhardt. South Africa has rolled out thousands of water tanks to communities and schools across the country to enable better hygiene practices in underserved areas. However, this comes at a time when dam levels in parts of the water-stressed country are declining, and some areas remain in the grip of a devastating drought.
Why NRW projects?
Ehrhardt believes that NRW projects do not get enough attention, often
because people in the water sector, government and funding agencies don’t realise how effective NRW reduction could be in helping water utilities to provide services and, more immediately, survive the pandemic. “NRW projects are very useful for many water utilities at the best of times, but especially now. First, if you can convert NRW to revenue water, you can earn more money. Second, by reducing physical losses, you gain more resources, increasing water availability in the network,” he explains. In a situation where you need more water to meet demand or extend water supply into previously unserved communities, reducing NRW is one of the cheapest and quickest ways to achieve this. For drought-stricken areas, such as South Africa’s Eastern Cape, NRW reduction should form an integral part of drought response initiatives. Ehrhardt and his team at Castalia worked with the City of Cape Town to help develop its long-term strategy following the Day Zero threat. NRW was a key focus area for Cape Town and proved very successful. Furthermore, most governments around the world are seeing significant economic declines due to the pandemic and are looking for sources of economic stimulus. This traditionally comes
