1. Selected Urban Water Challenges
Selected Urban Water Challenges. Examples from Dobrich Water Operator, Bulgaria. Are any of them applicable to Middle East Region?
Beirut, July 2017

2. Contents Dobrich Water Company: brief introduction
Specific problem 1: which projects/assets are not addressed by the sizeable EU funds (or other donor/IFI money)
Specific problem 2: how far could and should NRW be fought – the effect of falling consumption
Specific problem 3: tariff elasticity or “why the 4-per-cent threshold is a good theory but tough practice“
Suggested (unprejudiced) approaches for resolving these problems

3. Dobrich Water in Brief The Region The Company 189 700 population
in Dobrich city only
8 municipalities
4 720 кm2 area
> 30% of country-wide wheat production
Best conditions for renewable energy in Bulgaria
The Company
7.8 million m3 billed
18.5 million BGN revenue
200 thousand BGN loss
> 80% NRW
60 GWh annual electricity consumption
3 100 km of water network
> 110 thousand accounts

4. Problem 1: „Neglected“ Assets
Trunk main 20 km losses of 3000 m3/d
Source 2
Dobrich city PS
Reservoir PS PS PS
Trunk main 15 km losses of 2000 m3/d
Trunk main 6 km losses of 1000 m3/d PS
Source 1
Big inter-village trunk mains in the periphery of large CAPEX projects

5. Problem 2: Falling Consumption

6. Falling Consumption: Another Angle…
Category
Units
Water into supply
IIII
Billed volumes II
Total losses
2/4
50%
Category
Units
Water into supply
III
Billed volumes II
Total losses I
1/3
33%
Category
Units
Water into supply II
Billed volumes I
Total losses
1/2
50%

7. Problem 3: Tariff Elasticity
Is it realistic at tariff above BGN 3 per m3 (USD 1.5 ) people in villages to stop using the service at all?
At tariff of BGN 2.84 per m3 the consumers in villages with their own well declare (and implement in practice) intentions to stop being clients to the water and sewerage operator…
Region
Billed consumption (l/p/d)
Dobrich city
74.5
Balchik
93.5
Kavarna
86.2
Shabla
86.5
Dobrich villages
65.7
General Toshevo
65.1
Tervel
63.2
Krushari
41.3

8. Suggested Approaches Problem 1: Problem 2: Problem 3:
“Neglected“ Assets
Problem 2:
NRW Targets under Falling Consumption
Problem 3:
Tariff Elasticity
“Diverging“ EU funds from low-priority urban networks and WWTPs towards trunk mains outside city boundaries?
Reconsidering the indicator “NRW” (% vs. m3/km)?
Focus on ELL concept – Economic Level of Leakage?
Social aid for W&S consumers?
Differentiated tariff (the starting 3 m3 at lower tariff)?

9. Other Thoughts
While most problems at utility level seem to be manageable through operations and commercial interventions, in a highly regulated and sensitive sector such as urban water supply, institutional, regulatory and tariff decisions may be crucial.
Examples include:
Setting up tariffs and finding balance between affordability and cost recovery
Investment prioritization (water security vs. environmental compliance)
Identifying regulatory KPIs and target setting
Michael Rouse concept on POLICY MAKING, REGULATION AND DELIVERY

10. Contacts Radoslav Russev ViK Dobrich EOOD (Dobrich Water Company)
Currently World Bank Consultant