Stockholm, Sweden, September 1, 2016 – The World Bank and the International Water Association (IWA) declared their intentions at World Water Week today to establish a global partnership to help countries, especially the poorest, improve management of water that is pumped but then lost or unaccounted for, called non-revenue water (NRW).

In developing countries, roughly 45 million cubic meters of water are lost daily with an economic value of over US$3 billion per year. Saving half of those losses would provide enough water to serve at least 90 million people. High levels of NRW reflect huge volumes of water being lost through leaks, not being invoiced to customers, or both. Reducing NRW can significantly improve the performance of public water utilities in developing countries.

The two international organizations set out to collaborate on a joint program that aims to capture good practices in the use of performance based contracts (PBCs) to reduce NRW, raise awareness on the issue of NRW, simplify and streamline the preparation of such contracts, and support their implementation in developing countries in the next few years. Furthermore the partnership will build the market of suppliers at the local level.

The Public-Private Infrastructure Advisory Facility (PPIAF) has co-developed the initiative.

Below is the statement of intent to establish a global partnership for the promotion of NRW reduction through performance based contracts jointly issued by the World Bank and the International Water Association.

1 September 2016, Stockholm Sweden on the occasion of 2016 World Water Week

RECOGNIZING the challenge and opportunity provided by the adoption of the Sustainable Development Goals (SDG) by the UN General Assembly;

RECOGNIZING the new global climate agreement adopted by COP 21 in Paris with important implications for water related mitigation and adaptation to climate change;

RECOGNIZING that in developing countries, roughly 45 million cubic meters of water are lost daily with an economic value of over US$3 billion per year. Saving half of those losses would provide enough water to serve at least 90 million people.

RECOGNIZING that according to the UN, an estimated 1.8 billion people, approximately a fourth of the world’s population, will live in areas with absolute water scarcity by 2025;

RECOGNIZING that across the developing world, excessive NRW impacts the operational performance and financial viability of water utilities and makes water utilities unable to improve water services and expand access;

RECOGNIZING that if NRW is reduced, improved service and access becomes achievable, financial performance of providers improves, and greenhouse gas emissions are reduced;

RECOGNIZING that utilities face barriers to NRW reduction, and performance-based contracts (PBCs) can help utilities overcome these barriers by providing access to necessary equipment and know-how with payment based on delivery of results; and

RECOGNIZING that the Partners all share a common goal, which is to end poverty and provide safe access to everyone.

NOW, THEREFORE, the World Bank Group and the International Water Association declare their intentions and commitments to come together and collaborate through a Partnership that will promote the sustainable delivery of water services through the reduction of non-revenue water.

1 Goal of the Partnership

The Partnership aims to improve the provision of sustainable water-supply services through better NRW management.

The Partnership will promote practices in the management of NRW, and, when appropriate, facilitate the use of Performance Based Contracts.

The Partnership aims to identify good practices in NRW management, to simplify and streamline the preparation of PBC transactions and to increase the number of participants (suppliers and seekers) active in the market.

The Partnership expects that these actions will result in more rapid preparation of Performance Based Contracts for NRW management, an increased use of such contracts, improved value for money for utilities, and sustainable reduction of NRW to optimal levels.

2 The Partnership

Initially, the Partnership will be between the World Bank Group and the International Water Association, which will each appoint their representatives.

Representatives for the organizations will form a joint Technical Working Committee to establish and execute the joint plans of actions of the Partnership.

The Partnership will engage with, and implement collaboration initiatives with regional development banks and invite such banks with common interests to participate in the Partnership.

3 Roles and Activities

The Partnership is committed to collaborate and jointly develop and implement a global initiative that will work collaboratively on the following areas:

• Advocacy for NRW reduction through PBCs where appropriate
• Development and sharing of knowledge and knowledge products
• Preparing tools that would be useful for practitioners who work on NRW-reduction PBCs
• Supply-side market development, and
• Development of NRW reduction financing initiatives and projects at national or local levels to work with governments and utilities.

For more information, please visit:

http://www.worldbank.org/water

https://iwa-network.org/

Contacts:

Christopher M. Walsh, cwalsh@worldbankgroup.org , +1 (202) 473-4594

Paul Bell, Paul.Bell@iwahq.org , +31 6 4660 7771