1. PWWA: FROM BENCHMARKING TO INVESTMENT Alexander Danilenko Port Moresby, Papua New Guinea

2. OBJECTIVES OF BENCHMARKING OUR TARGET: Every utility will prepare investment project based on the benchmarking report by the end of 2016 Bring attention to water services Bring understanding of issues and problems Adjust financial systems Bring finances to the sector Bring investment to the sector STATE YOUR NEEDS AND PLANS THAT CAN BE OFFERED TO DONORS AND INVESTORS based on objective data and information

3. DATABASE AND KNOWLEDGE 26 utilities from 17 countries National utilities 12 Regional utilities 14 Smallest 726 people (Niue) and largest with almost 750,000 (Fiji) Total people in service – almost 2 million PWWA database has more than 1000 visits since launch in Feb. 2015 Data accredited for 5 utilities only (Eda Ranu, Enelco, Guam, American Samoa, Fiji) Utilities that did not provide data yet 6

4. INVESTMENT PRACTICE Only 6 companies reported completed projects in 2014 Nauru, YSPSC, Kiribati and Majuro have last project completed more than 10 years ago 12 companies have ongoing projects with value more than 1 million – all of them are large companies. Small companies get little attention. Average investment, however, is less than US$50 per person a year All utilities, which have projects have participated in biddings and commissioning of the investment Typical investment: energy efficiency, expansion and upgrade of water intake, wastewater development, NRW

5. SETTING TARGETS We have data – let us use them Setting priorities 1) Expansion with water services 2) Water shortages 3) Reduction of NRW 4) Financial stabilization 5) Development of wastewater collection and treatment 6) Data quality improvement

6. EXPANSION WITH WATER SERVICES Vast majority have 90% and above. The issue is for  Solomon Islands – 82%  Kiribati – 80%  Unelco, Vanuatu, 80%  Water PNG – coverage 70%  Micronesi, Puhnpei – 61%  Majuro, Marshall Islands – 20%

7. WATER SHORTAGES, LACK OF PRODUCTION CAPACITY Water consumption is below 50 liters per capita a day: PUB, Kiribati – around 15 lpcd, water is provided 3-4 hours a day Nauru – 20 lpcd; - water is served by tankers, no network Southern Yap, Micronesia, - 33 lpcd – 24 hours a day Majuro, Marshall Islands, 110 lpcd, but only 3-4 hours a day

8. REDUCTION OF NRW NRW above 50% reported: ASPA, American Samoa – 67% Chuuk. Micronesia, 75% GWA, Guam – 55% Eda Ranu, PNG – 55% SIWA. Solomon Islands – 62% Water Authority of Fiji – 51%

9. FINANCIAL STABILIZATION Costs are not recovered in 2011-2014: Fiji Water Authority, Fiji 65-81% APSA, American Samoa 75-90% Chuuk Micronesia 25-80% SWA, Samoa 75-80% Note. Cost recovery of the reported costs to utility

10. DEVELOPMENT OF WASTEWATER COLLECTION AND TREATMENT Was reported by many companies as a key priority Majority are fully ready for sewerage and wastewater treatment as consumption exceeds 15 lpcd for many However, the questions remain:  are people ready to pay for such services?  Will it bring enough revenue to cover costs?

11. OVERALL READINESS TO INVEST Water Utility Vulnerability Index is low, and the following utilities can easily borrow for investments: APSA, American Samoa – overall risk is 11% stable Central Yap, Micronesia – overall risk is 23% stable Water Authority, Fiji – overall risk is 37% with positive trend GWA, Guam – 55% with negative trend Tonga Water Board, Tonga – overall risk – 65% with positive trend Eda Ranu, PNG – 75% - stable The rest of companies risk exceeds 99% meaning that they will not be able to generate enough resources for expansion as water at the affordability level, and have significant account receivable

12. DATA QUALITY IMPROVEMENT = PROJECT JUSTIFICATION Still remains a huge issue Enormous jumps from year-to-year were cleaned during the last year, still about 30% of data items jump by 30% from year-to-year Water metering is a norm to about half of utilities 10 utilities do not know length of their network Financial data breakdowns are questionable for many companies

13. BUT ARE WE READY FOR INVESTMENT? Only about half of PWWA members reported developed investment plan Only 15 companies from 28 participated in training have readily developed projects Majority of projects are financed by donors. Two projects reported are JICA grants. None the companies developed project by itself based on the collected data yet

14. MAKE YOURSELF KNOWN Performance reporting as a tool to attract finances Next steps: Strategic development approach based on the reported data Feasibility of the proposed actions assessment Economic viability of the project evaluation Preparation of the project ready for investments We will do it together!