National Water Sector Strategy 2010 - 2020

National Water Sector Strategy “A right for every citizen, a resource for the whole country” 0 Eng. Gebran Bassil Ministry of Energy and Water Ministry of Energy and Water: 27/12/2010 Lebanese Government: Decision No. 2, 9/3/2012 The NWSS has been developed by the Ministry of Energy and Water, with the participation of national stakeholders and international donors Water Establishments High Council for Privatization Ministry of Environment Ministry of Public Health Ministry of Industry Ministry of Tourism Litani River Authority Prime Minister’s Office German Development Cooperation (through GIZ)(1) The World Bank Kuwait Fund for Arab Economic Development ESCWA European Union Delegation to Lebanon European Investment Bank 1 Ministry of Tourism CDR Ministry of Foreign Affairs Ministry of Finance Min. of Interior/ Municipalities Ministry of Agriculture Ministry of P. W. and Transport Council of the South NGOs UNDP UNICEF AFD KFW USAID Italian Cooperation Spanish Protocol GWP-MED Others … Note: (1) through played a key role in supporting the NWSS and its launching event. Baseline Demand/Supply Forecasts 2 Demand/Supply Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap The Lebanese water sector is facing shortcomings both on the infrastructure and management fronts � Constrained resources with suboptimal exploitation, coupled with significant demand growth � Inefficient and poorly maintained systems and networks, leading to high losses and supply interruptions, with a limited focus on demand management � Low coverage of wastewater networks and severe shortage in treatment efficiency Production Transmission & Distribution Wastewater Water Sector Infrastructure 1 2 3 3 � Incomplete implementation of reform law and weak interagency coordination Water Sector Management � Gaps in legal framework delaying private sector participation, water users associations, etc. Institutional Financial & Commercial � Inefficient water supply and irrigation tariffs with low collection rates, and no wastewater tariff yet, increasing pollution and limiting conservation Legal & Regulatory � Climate change negatively impacting water resources Environmental Concerns � Limited conservation activities and high loss percentages Awareness and Conservation I II III IV V Baseline Water Sector Infrastructure Water Sector Management 4 Water Sector Management Demand/Supply Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap Several steps constitute the water sector value chain Irrigation Domestic/ Tourism/ Commercial W a te r S u p p ly Treatment Works Wells Industrial Distribution Networks Springs/Rivers Storage Tank/Tower Pump & Transmission System Wastewater Collection SystemDams Production (& Treatment) Transmission & Distribution Wastewater2 31 Water Sector Value Chain 5 IndustrialW a te r S u p p ly S a n it a ti o n Sewage Treatment Plant Pump & Transmission System Sewage Lift Station Industrial Wastewater Treatment Plant Sludge WastewaterPotable Water Springs/Rivers Reuse Sea Outfall Current Water Balance for Lebanon for an Average Year (BCM/year) 8.6 Total Rainfall and Snow 4.5 Evapo-transpiration 4.1 Total Renewable Water Resources 0.4 To Sea 0.7 Across Boundaries 0.3 SW GW GW 2.7 Resources Remaining in Lebanon Water Flow Water Lost GW: Groundwater SW: Surface Water Renewable water resources per capita are already slightly below scarcity threshold, with expected decrease in the coming years 1 6 2.7 0.5 To Groundwater 2.2 Surface Flow Renewable Water Resources (m3/capita/year) Source: MEW, FAO Aquastat, Water Market Middle East 0 6 8 7 6 8 4 9 5 1 2 8 1 2 5 1 4 1 1 5 8 2 4 3 2 4 5 3 9 1 4 5 1 6 4 1 7 6 7 8 3 9 1 ,1 5 9 1 ,8 0 8 2 ,2 6 3 2 ,9 9 0 0 7 8 9 1 1 0 4 1 1 6 1 4 5 1 5 6 1 9 8 2 1 3 2 7 1 3 3 3 4 4 0 4 9 6 7 5 2 8 8 6 9 2 6 1 ,4 2 6 2 ,0 2 2 2 ,8 9 2 3 ,2 9 2 0 500 1000 1500 2000 2500 3000 3500 2015 2009 m 3 /c a p it a /y e a r Water Scarcity Threshold 1,000 m3/person/yr Surface water resources are largely exploited but with limited storage, while significant stress is put on groundwater mainly through private wells 1 Surface Water Resources, 2010 (MCM/yr) 89 54 71 53 267 295% 117% 56% 56% 23% 6% Dam Capacity as Percentage of Total Renewable Water Resources (%) Qaraoun: 220 MCM Chabrouh: 15 MCM 235 MCM Groundwater Extraction Through Public Wells, 2010 (MCM/yr) 186 175 82 206 649 449 381 307 289 1,425 Used Water Resources Maximum Yield Does not include wells in villages not covered by WEs Potential to reach more than 1 BCM of storage (i.e. 24%) 7 Source: MEW, WEs, FAO Aquastat BML North South Bekaa Lebanon 119 109 70 140 438 BML North South Bekaa Lebanon Groundwater Extraction Through Private Wells, 2010 Egypt Syria Tunisia Morocco Iran Lebanon 18,398 9,966 7,282 7,178 42,824 BML North South Bekaa Lebanon Numbers of Private Wells BML North South Bekaa Lebanon 649 267 438 235 1,589 Surface Public Wells Private Wells Dams Total Total Water Resources Used (MCM/yr) Extracted Volumes from Private Wells (MCM/yr) Numbers and volumes of private wells are feared to be significantly higher Out of 235 MCM of existing surface storage, only 45 MCM are currently used Although coverage is better than the regional average, more than 50% of transmission and distribution networks are past their useful life … Potable Water Network Coverage (%) 2 3 22 8 10 7.6 13 22 8 10 13 BML North South Bekaa Lebanon High season Low season Continuity of Water Supply Service, 2009 (Hrs/Day) 8 5 % 6 8 % 8 7 % 6 2 % 7 9 % 2 0 % 3 0 % 4 0 % 6 0 % 6 5 % 6 5 % 7 0 % 8 0 % 8 0 % 8 0 % 8 0 % 8 5 % 9 0 % 9 0 % 9 3 % 9 5 % 9 6 % 9 8 % 1 0 0 % MENA Average: 75% Best Practice: 100% 8 Source: MEW, WEs, WB, CAS, Water Market Middle East 28% 18% 9% 45% <10 yrs 10-20 yrs 20-30 yrs >30 yrs Age of Networks, 2010 Transmission 29% 21%17% 33% Distribution 8.40 9.80 8.71 10.41 BML North South Bekaa Tank Storage Times, 2010 (Hours) National Average 9.33 hrs Standard Practice 12-24 hrs … leading to Unaccounted for Water levels 13% higher than world average 2 Demand for Water Supply, 2010 (MCM/yr) 104 221 113 67 505 31 66 34 20 152 0.3 5.2 0.3 0.3 6.2 135 292 148 88 663 Tourism Industrial Domestic 62% 58% 52% 18% Collection Rates, 2010 National Average 47% Best Practice 100% 9 Source: MEW, WEs, Water Market Middle East North BML South Bekaa Lebanon BML North South Bekaa 40% 48% 52% 50% BML North South Bekaa In WEs, 2010 National Average 48% MENA Averages 1 0 % 1 5 % 2 2 % 2 3 % 2 6 % 3 0 % 3 5 % 4 0 % 4 0 % 4 8 % 4 8 % 5 0 % 5 0 % 5 0 % 5 0 % 5 0 % O c c u p ie d T e r. B a h ra in T u n is ia O m a n M o ro c c o Ir a n L ib y a A lg e ri a P a le s ti n e S y ri a L e b a n o n E g y p t Ir a q J o rd a n K S A T u rk e y MENA average 37% World average 35% Best practices 10% Unaccounted For Water (%) Irrigation is the largest water consumer with low efficiencies, as open channels still constitute the majority of the networks 2 21,500 6,500 7,000 31,000 66,000 2,500 2,500 5,000 14,000 24,000 North BML South Bekaa Lebanon Schemed Irrigation (>100 ha) Small Scale Irrigation (<100 ha) Irrigated Areas in Lebanon, 2010 (ha) 216 81 108 405 810 North BML South Bekaa Lebanon Irrigation Water Requirements, 2010 (MCM/yr)90,000 45,000 12,0009,000 24,000 10 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% S y ri a Y e m e n Ir a q Ir a n O m a n M o ro c c o L ib y a K S A T u n is ia E g y p t Jo rd a n T u rk e y Q a ta r U A E A lg e ri a O c c u p ie d T e r. B a h ra in K u w a it L e b a n o n Source: MEW, WEs, World Bank Industrial 9% Domestic 30% Agriculture 61% Water Usage by Sector (% of Total Water Consumption) Network Efficiency (%) Water usage reflects effective consumption and not calculated demand 70% effic. (Sprinklers) 80% effic. (Drip) 70.4 % 23.4 % 6.2% 60% effic. (Canals) 60% 60% 65% 70% 70% 75% 85% 95% UAE Jordan Kuwait Morocco Bahrain Turkey Algeria Occupi… Wastewater network coverage of 60% is higher than regional average, coupled with significantly low treatment levels (<8%) Wastewater Network Coverage (%) 3 21% 23% 33% 33% 40% 46% 53% 63% Turkey Libya Tunisia Jordan Qatar Egypt Occupied Ter. UAE Treated Water Share of Total Water Consumed (%) 11 2% 5% 15% 16% 20% 35% 40% 40% 50% 55% 60% 60% 60% Iraq Yemen Oman Iran Libya Palestine Syria KSA Egypt Tunisia Qatar Lebanon UAE MENA Average 48% 4% 5% 8% 10% 10% 12% 20% 21% Algeria Morocco Lebanon KSA Yemen Oman Syria Turkey Note: Data not available for Bahrain, Kuwait, Iran, Iraq, Palestine Source: Water Market Middle East, Web search MENA Average 32% National Water Sector Strategy “A right for every citizen, a resource for the whole country” 0 Eng. Gebran Bassil Ministry of Energy and Water Ministry of Energy and Water: 27/12/2010 Lebanese Government: Decision No. 2, 9/3/2012 Baseline Water Sector Infrastructure Water Sector Management 12 Water Sector Management Demand/Supply Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap Current Institutional Setting and Commercial Relations in the Lebanon Water Sector Ministry of Energy and Water NLWE BMLWE SLWE BWE LRA Donors (Grants/ Technical Assistance) Council for Development and Reconstruction Donors (Loans/ Grants) Ministry of Finance Investment planning, capital spending and service provision responsibilities are scattered among various players with weak coordination I 13 Reconstruction Consumers Private Providers � Water Delivery Trucks � Bottled Water/Gallons � Private Wells � Local Committees/Municipalities NLWE: North Lebanon Water Establishment BMLWE: Beirut & Mount Lebanon Water Establishment SLWE: South Lebanon Water Establishment BWE: Bekaa Water Establishment LRA: Litani River Authority HCD: High Commission for the Displaced CoS: Council for the South CoS HCD NGOs Others Cash/In Kind Flow Product Flow Assessment of the Implementation of reform Law 221 The implementation of reform 221 is still incomplete with discrepancies between legal and de facto responsibilities I � Separation between policy-making and service provision � Consolidation of service provision in autonomous regional water Reform Law 221 Best-Practice Principles, 2000 � The implementation of the reform law has been initiated but not fully concluded � The transfer of functions to the four WEs has been subject to several delays � The WEs are not yet empowered to act with full administrative and financial autonomy Current Situation, 2010 14 autonomous regional water establishments (WEs), and policy making in MEW � Financial and administrative autonomy of the new WEs Reform Law 221 administrative and financial autonomy � The legal text to organize the work of MEW, has not been developed yet. MEW’s efforts are still dedicated to capital projects and O&M. � WEs suffer from a shortage of funds (*) and technical staff These discrepancies between legal and de facto responsibilities have created institutional uncertainty, and weakened the accountability line between the policy-maker and service providers Note: (*) with the exception of BMLWE and LRA that do not have any shortage of funds MEW is not yet enabled to concentrate on policy making, and regulatory roles, as per Law 221. Efforts are still dedicated to capital projects and O&M I Organization Structure of the Ministry of Energy and Water (de facto) Ministry of Energy and Water 597113 General Directorate of Exploitation Tutelage Water Tutelage Concession Oversight Admin & Financial Technical Control Quarries Legal Employees & Accounting IT 221 187 61 21 74 97 93 63 9235 Environ ment Sanitation Surface Runoff 317 23 71 Coordinato rs 50 Electrical Equipment294 Admin 4314 General Directorate of Hydraulic and Electric Resources Admin. Planning Legal Employees Accounting Water Programs Planning Water Planning Electricity Hydrometr y Expropriation and Water Rights Expropri Irrigation Studies 50577 9211 42 142 42 326 152 51 50 201 378 224 342 Studies 13819 18028 General Directorate of Oil Admin. Financial & Economic. Employees Accounting Financial Tutelage Financial Control & Accounting Financial & Economic. Oil& Mineral Exploration Manufacturi ng 15 Electricity Tutelage ControlIT 110 54 63 rs Ptrograpph y Ptrograpph y 40 Legal Equipment Archiving Programs Statistics Groundwater and Geology Research & Hydraulic Structure Expropri ation Water Rights Groundwat er Geology GeotechnicalGeotechnical Water Research Hydraulic Structures Hill Lakes Projects Projects Mt Lebanon Projects North Projects South Projects Bekaa 42 121 41 50 50 83 274 493 341 41 40 296 101 132 42 342 12021 282 286 288 283 Number of employees according to decree Number of current employees (Feb. 10) xxyy Vacant Position Department Unit Section General Directorate Directorate � Functions discontinued according to Law 247, and moved to WEs according to Law 221, but are still being performed currently � The legal text to organize the work of MEW, enabling it to focus on its core activities according to reform law 221, e.g., policy making and regulatory roles, has not been developed yet. MEW’s efforts are still dedicated to capital projects including irrigation and wastewater Legal Accounting Procur. & Distribution Transport & Storage Note: Total number of employees does not include Directorate of Oil � Introduced by virtue of Law 247/2000 Focus of WEs is on water supply only with virtually no wastewater and irrigation activities performed so far I � No irrigation or wastewater responsibilities yet � Most suitable organization for technical functions to be studied � Limited focus on Strategic Planning and Business Planning � No stress on water demand management � No focus on performance General Comments Secretariat BoD AffairsAdministrative Expenditure Control Admin. Affairs Financial Affairs Technical Distribution Procur. & Legal Legal Purchas. Stats. and IT Financ e Salarie s Budget & Liquidatio Budget Exp. Liquid. Exp. Liquid. Cashiers Checking Genera l Accou nt Material Account. Admin Account. Financial Account. Collect & Cashie rs Collection Cashier s Project s Ststisti cs IT Beirut Beirut South Beirut CustomerCustomer Distr. Sup. Distr. Sup. North Beirut Works CustomerCustomer Distr. Sup. Distr. Sup. Works Mt Leb. North Upper Meth Jbeil Kesser wan Coastal Metn Mt Leb. South HR Employee Affairs Employee s Employee sSocial &Medical Social &Medical Safety & Training CustomerCustomerDistr. Sup. Distr. Sup.WorksWorks CustomerCustomerDistr. Sup. Distr. Sup.WorksWorks CustomerCustomerDistr. Sup. Distr. Sup.WorksWorks Aley Customer Distr. Sup. Distr. Sup. Baabda Works Customer Distr. Sup. Distr. Sup. Works Ware house s Mt Leb. North Mt Leb. South Labs Studies and Design Project Suoervi sion � ��� ������� South Beirut Ops Maint. North Beirut Ops Maint.Maint. � ��� ������� Jbeil Station s Ops Maint. Kesserwn Stations Ops Maint. � ��� ������� Upper Metn Sts Ops Coastal Metn � ��� ������� Aley Station s Ops Maint. Baabda Station Ops Maint. Control Admin & Fin.Technical & QC General Directorate Secretary Maint.Maint. Maint.Maint. Maint. Maint. Organization Structure of Beirut & Mount Lebanon Water Establishment General Directorate Control Secretariat &BoD Works Admin & FinancialTechnical & QC Expenditure Control Administrative Affairs Financial Affairs Technical Exploitation Admin Legal Affairs Registry & PR Registry & Archives Registry & Archives PR HR Employees Social & Med. Affairs Social & Med. AffairsWork Sec. & Training Work Sec. & Training Collective Services Procurement Bldg & Veh. Maintenance Building Maintenance Building Maintenance Vehicles Fin. Acc & Warehouse Cashiers Checking Budget & Exp Liquidation Budget Expenses Liquidation Expenses Liquidation Salary & Rev. Validation Warehouses General Accounting Material Accounting Analytic Accounting General Accounting Collection Checking Projects and Programs Execution Supervision Programs& Exploit. Rules Studies Statistics and IT Statistics IT Hydraulic Stations Purification Plants Labs and Workshops Labs Workshops Treatment Plants Pumping Stations Central Control Tripoli & Surrounding Admin Admin Subscribers O&M Collections Connections Networks Oversight North Region Halba Danniyeh Minieh Qobayat South Region Admin O&M Admin O&M Admin O&M Koura Zghorta Bcharreh Batroun Admin O&M Admin O&M Admin O&M Organization Structure of North Lebanon Water Establishment 16 � No focus on performance management � Limited focus on IT, placed at a low level in the org. � Fixed Asset Management not included in the org. � Procurement, Purchasing and Warehouses would be better grouped under Supply Chain Management � Customer Service is decentralized and fragmented across regional units � Control and Audit functions are grouped under one function CustomerCustomerDistr. Sup. Distr. Sup.WorksWorks �������Metn Ops Maint. Department Unit SectionDirectorate Qobayat Admin O&M Batroun Admin O&M General Directorate Legal Advisors Secretariat and BoD Affairs Expenditure Control Studies and ProjectsDistribution Production, Transfer and Ww Customers Affairs Accounting and Financial Affairs Central Administration Quality Control 872 HR Admin Procurement IT Legal Affairs Accounting Budgeting and Financial Affairs Collection and Cashiers Warehouses Meters Reading and Billing Customers service and Promotion Water Production/ South Litani Water Production / North Litani Wastewater / North Litani Wastewater / South Litani Laboratories Execution Supervision Planning and Studies Jezzine Saida Nabatieh Zahrani Marjeyoun Hasbaya Tyr Wadi Jilo Bent Jbeil دائرة المختبــرات دائرة المختبــرات Branch Offices (where needed) Main Warehouse Sec. Warehouses Sec. Warehouses Organization Structure of South Lebanon Water Establishment 212 General Directorate Expenditure Control Internal Control Distribution and Maintenance Plants and Projects Finance HR and Subscribers Registrar )�������( Secretariat IT and Statistics Statistics IT Legal Affairs and Procurement دائرة الموارد البشرية Subscribers HR Training and Employees Affairs Training and Employees AffairsSoc., Med. Affairs and Work Security Soc., Med. Affairs and Work Security Lawsuits & Legal Consultations Lawsuits & Legal Consultations Procurement Zahleh and South Bekaa Zahleh and South BekaaBaalbek and North Bekaa Baalbek and North Bekaa Public Accounting Administrative Accounting Financial Accounting Budget & Expenses Liquidation Budget & Expenses LiquidationRevenues Validation Revenues Validation Salaries and Wages Public Accounting Analytical Accounting Analytical AccountingMaterials Accounting Materials Accounting Financial Accounting Financial Accounting Collection Cashiers Laboratories Plants Programs and Studies Execution Supervision Zahleh Agglomeration Zahleh AgglomerationBaalbek Agglomeration Baalbek Agglomeration South Bekaa North Bekaa Main Lab ��������� ��� ������������� ��� ����Secondary Labs Baalbek Agglomeration Zahleh Agglomeration South Bekaa North Bekaa Warehouses Zahleh Rayak Chtaura Baalbek Deir El Ahmar Chmestar Rachaya Jeb Jennin Machghara Al-Labwa Al Hermel Main Warehouse Secondary Warehouses Secondary Warehouses Tech. and QCTech. and QCAdmin & FinancialAdmin & Financial Organization Structure of Bekaa Water Establishment The lack of technical capacity, financial autonomy and accountability are preventing full takeover of O&M responsibilities I Manpower Levels at WEs, 2010 1,120 1,271 872 787 4,050 621 262 218 241 1,342 Total No. of employees by law Current No. of permanent employees 1.64 2.73 1.62 3.65 1.93 No. of staff / 1,000 connections Staff efficiency ratio of WEs calculated for water supply 55% 21% 25% 31% 33% Manpower Levels at MEW, 2010 92 505 597 35 75 110 38% 15% 18% Filled positions 17 BML North South Bekaa Total � MEW and WEs are largely understaffed � WEs rely on contractor-provided staff, mainly workers performing O&M, to partially fill the gaps. Almost 50% of total staff working in WEs are provided by contractors � Gaps are mainly in managerial positions (Heads of Department or Unit) � The high efficiency ratio in Bekaa reflects a low number of connections rather than a high number of employees Comments calculated for water supply services only, as wastewater and irrigation activities are still minimal 35 DGE DGHER Total Number of Staff per 1000 Water and Wastewater Connections 11.6 9.9 7.6 7.0 7.0 6.4 5.7 5.6 5.3 4.9 4.6 4.4 4.3 3.5 1.9 1.8 1.8 1.7 1.7 1.4 1.4 1.4 1.0 D e lh i N ig e ri a B a n g la d … R iy a d h S ri L a n k a C a s a b la … T u n is ia K a ra c h i S h a n g h a i S a n … J a k a rt a D a k a r B u rs a M a n il la H o n o lu lu H o C h i … A rg e n ti n a H u n te r … B e lg iu m W e s te rn … J a p a n K u a la … S e o u l S c o tl a n d U K 19.9 19.7 Best Practice Average(1) = 2.5-3 Note: (1) Best practice is indicative and is an average of top 15 operators. Average depends on scale, level of outsourcing as well as productivity Source: IBNET Report and Water and wastewater utilities of the World Current Tariff Structures Absence of volumetric charges is limiting incentives for conservation at the consumer, and production at the WE. No wastewater tariff introduced so far II � Same tariff structure is applied in all four WEs, with slightly different rates; BWE: 118 $/yr (0.32 $/m3), NLWE: 140 $/yr (0.38 $/m3), SLWE: 147 $/yr (0.40 $/m3), BMLWE: 157 $/yr (0.43 $/m3) � Lump-sum flat tariff based on contracted volumes of water, disconnected from real consumption � Although around 10% of the connections in Lebanon are metered, volumetric tariffs based on Water Supply � Volumetric charges prevented by the lack of meters � Lebanon is one of the very few countries in the world still adopting this tariff structure � Lack of volumetric charges limiting conservation incentives at the consumer level, and production incentive at the WE level � Lack of incentive for WEs to reduce losses or Comments 18 Lebanon are metered, volumetric tariffs based on real consumption are still not applied � Customers’ registers are not regularly updated � Low collection rates, variable between WEs � Two tariffs are generally used: • Area Charges: lump sums periodic charges based on area irrigated (from 140 to 650 $/ha/yr) • Volumetric Charges: used in case of pressurized networks, where hydrants are equipped with water meters (from 0.10 to 0.15 $/m3) � Very low collection rates Irrigation � No wastewater tariff applied so farWastewater � Lack of incentive for WEs to reduce losses or increase availability � Increased reliance on expensive private providers � Irrigation is the largest water consumer, with very limited metering, preventing volumetric charges � Lack of awareness on water consumption and conservation � High reliance on undeclared groundwater � Collection not performed effectively b WEs � Does not provide incentive for limiting pollution Gaps in the Current Legal/Regulatory Setup Gaps in legal/regulatory framework are mainly leading to delays in water sector reform and Private Sector Participation in O&M and in capital projects III � Incomplete implementation of Law 221 of 29 May 2000 and its amendments, and the lack of required bylaws to finalize the implementation of the water sector reform � The need to develop required legislation to avoid delays in private sector participation in the water sector, mainly to allow for BOTs in large capital projects � The need to modernize irrigation laws, thus abolishing the Ottoman law of 1913 in a view to 19 � The need to modernize irrigation laws, thus abolishing the Ottoman law of 1913 in a view to facilitate and organize the use of irrigation water, mainly through the creation of Water Users Associations (WUAs) � The need to develop the legal requirements to support strategic priorities in the water sector � The need to achieve the ratification of the Water Code � The need to undertake an in-depth gap analysis of all laws and regulations governing the water sector Environmental issues are affecting water resources with a direct impact on quality � The level of bacteriological contamination differs from a public water source to another, ranging from 0% in certain rural areas to reach 90% around more populated urban areas. � The chemical contamination varies widely among WEs: • Sea water intrusion being a common problem for all the coastal wells raising the issue of high salinity and conductivity problems • Elevated nitrate levels in Bekaa valley • Olive oil residue in the areas of North and South Lebanon • Accidental pollution due to industrial waste and oil intrusion from gasoline State of water quality in Lebanon IV Water Quality and Pollution 20 Source: MEW, UNICEF • Accidental pollution due to industrial waste and oil intrusion from gasoline stations � Inadequate domestic sewage disposal, predominantly discharged in the environment without treatment; 70% of all natural sources with bacterial contamination � Overexploitation of water resources due to excessive drilling and pumping (mainly concentrated in coastal area and Bekaa) � Excessive use of fertilizers and unregulated application of pesticides � Direct discharge of industrial effluent into the environment (concentrated along the coast, in Mount Lebanon, in the Bekaa valley and Litani water shed) � Open dumping Pollution sources Strategic objectives for the Lebanese water sector “Ensure water supply, irrigation and sanitation services over all the Lebanese territory on continuous basis and at optimal service levels, with a commitment to environmental, economic and social sustainability” Production � Maximize the potential and improve the quality of surface water resources � Improve management and protection of groundwater resources, moderate extractions, promote artificial recharge, and consider this resource as a strategic reserve Fulfill deficits through groundwater and/or surface storage Infrastructure Institutional and Organizational � Support a full implementation of the water sector reform and improve on the management model between WEs and MEW � Improve on capital spending responsibilities, inter-agency coordination and spending efficiency � Improve the management of the irrigation sector Management 1 I II “Water: A right for every citizen, a resource for the whole country”Vision Mission Objectives this resource as a strategic reserve � Fulfill deficits through groundwater and/or surface storage according to potential and availability per region; priority to be given to surface storage in case of availability of both resources Transmission and Distribution � Water Supply: Ensure proper and continuous access to high quality water supply through increased coverage, reduced unaccounted for water and optimized network management � Irrigation: Provide adequate quantities and quality of irrigation water and incentivize modern, water-saving irrigation techniques Wastewater � Increase coverage of wastewater collection networks and treatment capacities � Optimize current wastewater treatment processes and sludge disposal, and ensure adequate reuse of treated effluents where applicable Financial and Commercial � Introduce and implement new tariff strategies � Promote private sector participation in O&M and capital projects � Gradually achieve O&M and then full cost-recovery Legal and Regulatory � Enhance and modernize the legal setup to support the implementation of the NWSS and future requirements � Enforce a regulatory regime which would align WEs with leading utilities in the region and worldwide Environmental Concerns � Achieve advanced climate change knowledge � Improve water quality, flood mitigation and protection of recharge zones Awareness and Conservation � Implement awareness and conservation campaigns consisting of gradual enforcement of consumer metering, awareness raising, and promote higher efficiency plumbing devices 2 3 II III IV V National Water Sector Strategy “A right for every citizen, a resource for the whole country” 0 Eng. Gebran Bassil Ministry of Energy and Water Ministry of Energy and Water: 27/12/2010 Lebanese Government: Decision No. 2, 9/3/2012 Baseline Demand/Supply Forecasts 22 Demand/Supply Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap A water demand/supply model aims at forecasting required resources to cover anticipated shortages SUPPLYDEMAND Domestic Water Demand Consumption per Capita x Population taking into account UfW Main Demand Drivers � Consumption patterns (for WS, industry, irrigation and tourism) � Population growth � Impact of economic development on water consumption Potable Water Supply Groundwater Surface Water Storage Non-Potable Water Supply Main Supply Policy Levers � Optimization of available surface water resources � Changes in groundwater policies/production coupled with artificial recharge of aquifers Industrial Water Demand Share of Domestic Irrigation Water Demand Schematic of the Water Demand/Supply Forecasting Model 23 Forecast of Required Water Resources � Anticipated shortage between supply and demand � Identified and planned means to cover the deficit � Required infrastructure to meet demand consumption � Changes in tariff structures � Effect of water conservation � Decrease in UfW � Irrigation efficiency improvement Non-Potable Water Supply Treated wastewater used only for agriculture and industry � Existing/potential surface storage � Reuse of treated wastewater � Agreements on shared water resources Irrigation Water Demand Irrigated Area x Irrigation Consumption taking into account Efficiency Tourism Water Demand Numbers of Tourists x Periods of Stay x Touristic Consumption Baseline Demand/Supply Forecasts 24 Demand/Supply Forecasts Demand Supply Demand/Supply Balance Infrastructure Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap Demand/supply forecasting methodology takes into account a number of drivers and policy levers on the demand side (1/2) Drivers/Policy Levers � Assumes demand per capita thresholds associated with urban development level, based on international benchmarks adapted to local conditions � Domestic water includes water consumption for residential, commercial and governmental entities Domestic Consumption per Capita � In the absence of recent surveys on the water consumption of the industrial sector, assumes industrial demand as a share of domestic demand Industrial Consumption Assumptions will need to be validated/ revisited in due course during the planning phases 1.a 1.b 25 � Uses the latest figures of the Ministry of Tourism and the General Security, as well as international benchmarks to determine touristic water consumption � Relies on Mediterranean basin benchmarks to determine daily consumption per tourist Tourism Consumption � Uses the latest figures of the Ministry of Agriculture, based on the latest census done by FAO, and World Bank studies � Irrigation consumption is to be reduced, by improving irrigation efficiency of existing and planned irrigation schemes, as well as optimizing on-farm irrigation techniques Irrigation Consumption � Uses population figures and historical growth rates forecasts by Central Administration of Statistics to estimate projected population growth � Uses numbers of Palestinian refugees based on UNRWA data Population Growth 1.c 1.d 2 Drivers/Policy Levers Impact of Economic Development � Uses historical and forecasted real GDP growth to assess the impact of economic development on projected demand for water , leading to an increase of 1% per annum Irrigation Growth � Uses government plans for the development of the irrigation sector and achieve an integrated and sustainable rural development � Irrigated areas are to be increased in line with government policies. From the current 90,000 ha of irrigated lands, targets of reaching 120,000 ha by 2020 and 150,000 ha by 2035 have been set 4 3 Demand/supply forecasting methodology takes into account a number of drivers and policy levers on the demand side (2/2) Assumptions will need to be validated/ revisited in due course during the planning phases 26 Development Tariff Change � Uses elasticity of demand to estimate the impact of water tariff changes on water consumption � Assumes a decrease in water consumption through anticipated water conservation initiatives and assumes its impact on domestic and non-domestic consumers. Awareness and conservation campaigns are planned through MEW’s Lebanese Center for Water Management and Conservation Water Conservation Reduction in UfW � rates vary among the WEs from 40% to 52%. A weighted average of 48% has been adopted on country level. Targets of reducing UfW to 30% by 2020 and to 20% by 2035 have been adopted � Assumes a decrease in UfW following initiatives carried out by WEs under MEW’s oversight and determines its impact on distributed water 5 6 7 1 � Drinking and cooking � Personal use (bath, washing, etc) � Laundry, dishwashing � Cleaning � Gardening � Limited commercial use (~3% of demand) � Drinking and cooking � Personal use (bath, washing, etc) � Laundry, dishwashing (machine) � Cleaning � Large scale gardening � Public Gardens � Commercial use (5-10 % of demand) Industrial � Mainly small scale industries: 99% of industries have less than 50 employees � Average of 6.5 m3/day per small establishment � Can reach up to 600 Tourism � Consumption based on benchmarks of similar countries in the region � Average consumption in Mediterranean countries: 440 l/tourist/day Irrigation � Including losses in transmission and distribution networks � 63,400 ha (70.4% ) furrow irrigation � 21,100 (23.4%) sprinkler irrigation Water demand 1.b 1.c 1.d 6 5 3 Domestic Thresholds are based on international benchmarks adapted to local conditions1.a Rural Areas Urban Areas 27 (~3% of demand) of demand) Rural Domestic Demand 160 lcd Urban Domestic Demand 180 lcd � Can reach up to 600 m3/day for larges establishment s � 11% of water use goes to industry Industrial Demand 30% of Domestic Demand l/tourist/day Tourism Demand 400 l/tourist/d sprinkler irrigation � 5,500 (6.2%) drip irrigation Agriculture Demand 9000 m3/ha/yr In 2010 Source: MoA, FAO Aquastat, UNESCO, WB, ESCWA, MEW (1996 , 1999), 2 0 4 7 5 0 5 0 7 6 8 5 1 0 0 1 2 3 1 2 6 1 1 0 1 3 5 1 4 3 1 8 0 1 8 5 2 1 5 2 7 5 4 0 0 4 4 1 6 5 3 E th io p ia D ji b o u ti W . B a n k S u d a n G a z a Y e m e n M o ro c c o A lg e ri a S y ri a T u n is ia Ir a q J o rd a n O m a n L ib y a T u rk e y E g y p t Q a ta r K u w a it U A E MENA Average: 198 lcd MENA Average w/o UAE: 176 lcd Population and growth Total Population 4.425 Million 2 3,975 Lebanese Refugees Distribution of Population by Region in, 2010 (‘000) 659,718 678,823 698,152 489,865 503,015 518,063 3,759,135 3,822,910 3,891,038 1.75% Lebanese Population Growth, 2007-2009 (%) Total Bekaa South 28 Source: CAS, UNRWA Share of Total Population 1,900 820 720 535 116 104 212 19 450 BML North South Bekaa Lebanon 46% 21% 21% 13% 100% 1,845,840 1,860,590 1,875,890 763,712 780,482 798,933 659,718 2007 2008 2009 North BML Irrigated areas and growth 24,000 Schemed Irrigation (>100 ha) Small Scale Irrigation (<100 ha) Irrigated Areas in WEs , 2010 (ha) 90,000 Projected Growth in Irrigated Areas in Lebanon, 2010 - 2035 (ha) 3 Total harvested irrigated area can reach up to 104,000 ha 29 21,500 6,500 7,000 31,000 66,000 2,500 2,500 5,000 14,000 24,000 North BML South Bekaa Lebanon Small Scale Irrigation (<100 ha) 45,000 12,0009,000 24,000 90,000 105,000 120,000 130,000 140,000 150,000 2010 2015 2020 2025 2030 2035 Source: MoA , FAO, WB, MEW Urban water consumption and relation with economic development Armenia United States UAE Canada 600 700 800 900 C o n su m p ti o n p e r C a p it a ( l/ ca p it a /d a y ) Inefficient distribution Lifestyle 4 Urban Water Consumption(1) and GDP per Capita 30 Note: (1) Includes UfW (2) Adjusted by purchasing power parity Source: IMF, UN, MEW Analysis Cyprus Germany Venezuela Armenia Saudi Arabia Indonesia Chile Jordan China Senegal Lebanon Georgia Mexico Oman Sweden Austria Switzerland England & Wales Finland Netherlands Norway JapanQatar Australia 0 100 200 300 400 500 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Argentina Morocco Yemen C o n su m p ti o n p e r C a p it a ( l/ ca p it a /d a y ) GDP Per-Capita(2) (USD) Environmental concerns Tight supply No Access Impact of tariff change (1/2)5 Pure flat rate Usage Pure flat rate (Current) Usage p$p$ Structure Block Tariff Level of Water Tariff Level of WW Tariff V, F, M I, D, C USD/m3 USD/m3 Adana V C 1.38 0.34 Ankara V C 1.31 n/a Izmir V I 1.45 1.02 Istambul V I 1.96 1.29 Konya V C 0.98 n/a Syria Damascus V I 0.05 0.02 Country City Turkey Benchmarks on Applied Tariffs in MENA regionCurrent and Proposed Tariff Systems $ 31 p Progressive/ degressive pay per use $ Usage Fixed charge + pay per use Usage Pay per use p Increasing/ decreasing block tariff $ Usage Usage Usage Volumetric Pricing Block Tariff Pricing Syria Damascus V I 0.05 0.02 Lebanon BMLWE F n/a 0.43 0 Morocco Casablanca V I 0.72 0.05 Oman Muscat n/a n/a 0 n/a V I 1.23 0.32 Palestine Ramallah V I 1.23 0.32 Bahrain Manama V I 0.07 n/a Qatar Doha V C 1.21 n/a Jeddah V C 0.05 0 Riyad V I 0.03 0 UAE Dubai V I 2.16 n/a F = fixed fee M = Mix I = increasing D = decreasing C = constant Occupied Territories KSA V = volumetric Source: IB-Net 5 Pure flat tariff Pure volumetric tariff Progressive volumetric tariff Fixed charge plus volumetric tarif Tariffs shall be affordable Tariffs shall cover costs Clients able to choose consumption Predictability for revenues ���� �������� ���� ���� ���� ���� ���� ���� ���� ���� �������� ���� �������� � Tariff structures will see significant modifications: ‒ For water supply: the current flat tariff structure will be replaced by a volumetric tariff structure after replacement of gauges by meters ‒ For irrigation: the different forms of tariffs currently applied will be Highlights Impact of tariff change (2/2) 32 volumetric tarif Fixed charge plus progressive volumetric tariff ���� ���� �������� ���� ���� ���� ���� of tariffs currently applied will be replaced by volumetric tariffs ‒ For wastewater: A new tariff will be introduced in proportion with the used volumes of water supply � Tariff changes will have an impact on the different types of consumptions. This impact needs to be defined through further studies � Once identified, the impact of these tariff changes will be reflected in demand patterns T o ta l H o u s e h o ld B ill ( $ /y e a r) Demand per Household (m³/year) 365 New Model (50% fix; 50% variable) 157 New Model (80% fix; 20% variable) New Model (65% fix; 35% variable) Current Model Water conservation6 Planned Conservation Initiatives on Domestic and Industrial Demand � Installation of conservation kits (plumbing retrofits and high-efficiency toilets and showerheads, dual flush toilets, faucet aerators, kitchen aerators) � High-efficiency cloth washers � Complete retrofit of large water consumers, e.g., Planned Conservation Initiatives on Irrigation Water � Adoption of high efficiency on-farm irrigation techniques, e.g., drip irrigation, sprinkler irrigation, overhead irrigation where applicable � Coordination with Ministry of Agriculture for the adoption towards lower consumption crops Water Conservation Initiatives 33 � Complete retrofit of large water consumers, e.g., industrial, commercial � Public outreach, awareness and education programs � Household and establishment audits Saving per year from 2011 to 2020 3.0 lcd estimate � Public outreach, awareness and farmer education programs � Farm audits and optimization according to local conditions Decrease from 9,000 to 7,000 m3/ha/yr by 2035Awareness and conservation campaigns are planned and executed mainly through the Lebanese Center for Water Management and Conservation Decrease in UFW levels Comments and Key Assumptions � To allow for more flexibility, three scenarios have been considered on the demand side: High Demand, Moderate Demand, Conservative Demand 7 National Average 48% Unaccounted For Water In WEs, 2010 (in % of Water Production) 40% 48% 52% 50% BML North South Bekaa 34 Projected Evolution of UfW, 2010 – 2035 U F W ( % ) � It is reasonable to assume that the UfW would reach 30% in the next 10 years and 20% in 2035 based on a scheduled decrease mainly due to fixing leakage (Moderate Scenario) � International benchmarks and experience in MENA countries show that a level of 20% is feasible � We assumed that significant leakage improvement projects will be carried out by WEs under MEW’s oversight over the 2011–2020 period 25 % 15 % 20 % Moderate Scenario Conservative Demand High Demand 35 % 25 % 30 % Source: WEs, MEW analysis 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2010 2015 2020 2025 2030 2035 To allow for more flexibility, three scenarios have been considered on the demand side: High Demand, Moderate Demand, Conservative Demand (1/2) Scenario 1 Conservative Demand Scenario 3 High Demand Scenario 2 Moderate Demand 160 lcd - Urban 140 lcd - Rural 200 lcd - Urban 180 lcd - Rural 180 lcd - Urban 160 lcd - Rural Share of domestic 25% Share of domestic 35% Share of domestic 30% Drivers/Policy Levers Domestic Consumption per Capita Industrial Consumption 1.a 1.b 35 350 l/tourist/d Decrease from 9,000 to 7,000 m3/ha/yr by 2035 450 l/tourist/d Decrease from 9,000 to 8,000 m3/ha/yr by 2035 400 l/tourist/d Decrease from 9,000 to 7,000 m3/ha/yr by 2035 Tourism Consumption Irrigation Consumption 1.c 1.d Population Growth2 CAGR 2010-2035 1.5% CAGR 2010-2035 2.0% CAGR 2010-2035 1.75% CAGR: Compound Annual Growth Rate 110,000 ha in 2020 130,000 ha in 2035 Consumption Growth 0.8% per annum 140,000 ha in 2020 180,000 ha in 2035 Consumption Growth 1.2% per annum 120,000 ha in 2020 150,000 ha in 2035 Consumption Growth 1% per annum Scenario 1 Conservative Demand Scenario 3 High Demand Scenario 2 Moderate Demand Drivers/Policy Levers Impact of Economic Development Irrigation Growth3 4 To allow for more flexibility, three scenarios have been considered on the demand side: High Demand, Moderate Demand, Conservative Demand (2/2) 36 Decrease from 48% to 25% by 2020 then to 15% by 2035 Saving per year from 2011 to 2020 3.5 lcd Decrease from 48% to 35% by 2020 then to 25% by 2035 Saving per year from 2011 to 2020 2.5 lcd Decrease from 48% to 30% by 2020 then to 20% by 2035 Saving per year from 2011 to 2020 3.0 lcd Volumetric tariff introduction in 2012 Volumetric tariff introduction in 2014 Volumetric tariff introduction in 2013 Tariff Change Water Conservation 5 Reduction in UfW 6 7 Total demand under the moderate demand scenario is expected to reach 1,802 MCM/yr by 2035 Moderate Scenario for Water Demand per Region (in MCM/yr, 2010 - 2035) 493 513 533 563 589 612 1,473 1,483 1,499 1,602 1,703 1,802 Total Bekaa Moderate Scenario for Water Demand per Usage (in MCM/yr, 2010 - 2035) 1,021 1,050 6 8 10 13 16 21 1,473 1,483 1,499 1,602 1,703 1,802 Total Tourism Irrigation 37 Currently the actual amount of water consumed is different form the demand due to availability and supply constraints 373 373 374 407 443 482 351 354 358 381 403 424 256 242 234 251 268 285 2010 2015 2020 2025 2030 2035 North South BML Source: MEW, WEs, 505 460 427 467 512 562 152 138 128 140 154 169 810 877 935 983 1,021 2010 2015 2020 2025 2030 2035 Industrial Domestic lcd (Urban) Pop (M) Irr (‘000 ha) 180 174 167 176 185 194 4.43 4.83 5.26 5.74 6.37 6.82 90 105 120 130 140 150 The range between the conservative and high demand scenarios exceeds 60% Comments � The range observed between the low and high demand scenarios is the result of different assumptions on the drivers in each of the scenarios � The main drivers are consumption per capita thresholds, population growth, impact of GDP growth, industrial and irrigation consumption and growth, etc.: 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 High Demand Low Demand +39% 2,518 1,410 1,802 22% W a te r D e m a n d ( M C M /y r) 38 consumption and growth, etc.: – Consumption per capita thresholds vary between 140 lcd and 200 lcd – Annual average population growth ranges between 1.5% and 2.0% for the low and high scenarios respectively – Industrial consumption varies between 25% and 35 % – Targets for irrigation areas in 2035 vary between 130,000 and 180,000 ha and consumption between 7000 m3/ha to 8000 m3/ha – Targets for UfW in 2035 vary between 15% and 25% for the low and high scenarios respectively 1,100 1,200 1,300 1,400 2010 2015 2020 2025 2030 2035 Low Demand 1,410 Demand Scenarios – Domestic Consumption per Capita (lcd) – Urban Area 160 153 145 153 161 169Low (sc. 1) High (sc. 3) 200 195 190 199 209 220 Mod (sc. 2) 180 174 167 176 185 195 0 Demand Scenarios – Irrigation Consumption per Hectare (m3/ha/yr) 9,000 8,600Low (sc. 1) High (sc. 3) 9,000 8,800 8,600 8,400 8,200 8,000 Mod (sc. 2) 9,000 8,600 8,200 7,800 7,400 7,000 8,200 7,800 7,400 7,000 Baseline Demand/Supply Forecasts 39 Demand/Supply Forecasts Demand Supply Demand/Supply Balance Infrastructure Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap Main sources of water in Lebanon include surface water and groundwater while surface storage and non conventional sources are limited Surface Water Groundwater � More than 2,000 springs exist all over Lebanon with varying flows around the year � Total yield exceeds 1200 MCM in an average year, with less than 200 MCM available during the dry summer months � Existing surface water resources (springs) are being currently exploited to a large extent by WEs. Limited optimization could be achieved by around 1% per year for the coming 10 years � Around 650 governmental wells supply WEs throughout the country with potable water. Total volume used in 2009: more than 270 MCM � More than 43,000 private wells are used for potable water and agriculture. Total volume used in 2009 is feared to be higher than 440 MCM. Unlike other sources, private wells serve only a portion of the population � Although strict policies for groundwater extractions have been initiated, no major reductions in extractions are planned 40 Source: MEW, WEs, Ministry of Agriculture Non Conventional Water Surface Storage � The average rate of wastewater treatment reached 4% in 2009 – Virtually no reuse is being currently practiced � Limited desalination is done by private sector (4.5MCM) and EDL (5.5 MCM) � Additional flows are expected from non conventional sources, but have not been modeled for lack of clarity on available data � Although strict policies for groundwater extractions have been initiated, no major reductions in extractions are planned before 2015, planned date for the coming on board of sustainable alternatives. Between 2015 and 2024, private groundwater extractions are to be reduced gradually at a rate of 6%per year with increasing reliance on public wells. � Ultimately, withdrawals from aquifers should not exceed natural replenishment rate, i.e. 500 MCM/yr � Surface storage is mainly concentrated in 2 dams with a total capacity of 235 MCM: • Qaraoun Dam: 220 MCM static and 160 MCM (up to 180 MCM) dynamic • Chabrouh Dam: 8 MCM static and up to 15 MCM dynamic � Currently, only 45 MCM are used for WS and irrigation, the rest for hydropower 3 scenarios for water resources are studied to balance between the use of groundwater vs. surface storage Supply per Region, 2010 (MCM/yr) Total Supply: 1,377 MCM/yr Surface Water: 46% Groundwater: 51% Used Storage: 3% Scenarios for water resource s High Groundwater Supply Policy (Sc. 1) � Optimize and fully utilize available renewable surface water capacities � Utilize the full groundwater capacities currently used by MEW/WEs and by the private sector � Provide surface storage to fill the shortage193 15 0 10387 338 409 41 Surface Water Groundwater (Sc. 1) Moderate Groundwater Supply Policy (Sc. 2) Low Groundwater Supply Policy (Sc. 3) � Provide surface storage to fill the shortage � Optimize and fully utilize available renewable surface water capacities � Utilize a moderate proportion of groundwater capacities currently used by MEW/WEs and by the private sector (up to 90% of the average renewable groundwater resources) � Rely more on surface storage to fill the shortage � Optimize and fully utilize available renewable surface water capacities � Utilize a low proportion of groundwater capacities currently used by MEW/WEs and by the private sector (up to 60% of the average renewable groundwater resources) � Rely extensively on surface storage Existing Storage 174 175 82 206 198 163 141 193 20 243 BML North South Bekaa As surface water is limited, the tradeoff between groundwater and surface storage shall be carefully managed to ensure additional needed resources Key Highlights � Currently exploited storage capacity, 45 MCM: ‒ Chabrouh: 15 MCM in BML ‒ Qaraoun: fro m the 220 MCM total static capacity (160 MCM dynamic capacity), only 30 MCM are currently exploited: 10 MCM for the irrigation of South Bekaa Phase I (2000 ha) and 20 MCM for Qasmieh - Ras Al Ain irrigation scheme in the South. The rest of the capacity is Split between Surface Water, Groundwater and Surface Storage (in MCM/yr, 2010-2035) Existing Storage Groundwater Surface Total 42 scheme in the South. The rest of the capacity is currently used for hydropower. 110 MCM will be used in the future (2014-2018) for irrigation of South Bekaa Ph II (additional 20 MCM) and, through canal 800, for irrigation (90 MCM) and water supply (20 MCM) in the South � Groundwater extractions to be reduced to no more than 500 MCM by 2025 � Surface water resources to be optimized to reach around 700 MCM by 2020 Surface Water Sc.3 Sc.2 Sc.1 Groundwater Scenarios (in MCM/yr, 2010-2035) Baseline Demand/Supply Forecasts 43 Demand/Supply Forecasts Demand Supply Demand/Supply Balance Infrastructure Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap Several considerations and assumptions on supply/demand outputs are considered based on hydrology and duration � Surface water: 100% of available exploitable � Available surface water: 70% of average year Average Year � Total precipitation: 8.6 BCM/yr � Total renewable water resources: 4.1 BCM/yr � Groundwater resources naturally replenished up to 500 MCM/yr Dry Year � 10 yrs recurrence interval � Precipitation and surface flows < 70% of average year � Available groundwater resources: 80% of average year 44 Full year Summer Months (July – October) � Surface water: 100% of available exploitable throughout the year after optimization � Groundwater: 90 % of annual renewable capacity � Used storage: 100% of full capacity (45 MCM in 2010) � Total demand: ~60% of full year demand (irrigation demand ~70% of full year demand) � Available surface water: 25% of full year � Extracted private groundwater: 70% of full year � Extracted public groundwater: 60% of full year � Used storage: 65% of full capacity � Available surface water: 70% of average year � Available groundwater: 100% of average year � Used storage: 100% of full capacity (45 MCM in 2010) � Available surface water: 25% of full dry year � Extracted private groundwater: 70% of full dry year � Extracted public groundwater: 60% of full dry year � Used storage: 65% of full capacity Lebanon water balance – Dry year 800 1,000 1,200 1,400 1,600 1,800 2,000 W a te r C a p a c it ie s (M C M /y r) Contingency/ Strategic ReserveTotal Demand Shortage Existing Storage Capacity Currently the actual amount of water consumed is different form the demand due to availability and supply constraints Projected Additional Water Resources (*) Private Groundwater Supply Private extraction to be reduced gradually in line with service improvement Gradual increase due to Canal 800 and Awali-Beirut projects Objective to gradually 4 4 0 2 8 3 1 9 5 2 2 2 6 7 0 (*) Additional water resources include artificial recharge of aquifers, reuse of treated wastewater and surface storage • Artificial recharge of up to 200MCM could be achieved during 2011-2020 • Reuse of treated wastewater: up to 101 MCM by 2020 • Surface storage in identified sites: up to 670MCM static/880MCM dynamic 45 0 200 400 600 800 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 2 0 3 5 W a te r C a p a c it ie s (M C M /y r) Surface Water Supply Public Groundwater Supply Existing Storage Capacity Limited optimization could be achieved by around 1% per year for 2011 -2020 Public extractions could be increased by ~50MCM where SW is deficient Awali-Beirut projects gradually drop down groundwater extractions to less than 500MCM/yr by 2025 Expected deficit in case no action is taken (in MCM) 2 5 7 4 5 0 3 0 3 5 1 5 1 9 5 3 0 7 4 1 0 5 1 1 6 1 0 2 9 1 4 5 WEs – Dry Year (with projected storage) 0 100 200 300 400 500 600 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 2 0 3 5 W a te r C a p a c it ie s (M C M /y r) Shortage Private Groundwater Supply Total Demand Surface Water Supply Existing Storage Capacity Public Groundwater Supply BML 0 100 200 300 400 500 600 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 0 3 5 Private Groundwater Supply Total Demand Surface Water Supply Public Groundwater Supply North Shortage Projected Additional Water Resources(*) Projected Additional Water Resources (*) (*) Additional water resources include artificial recharge of aquifers, reuse of treated wastewater and surface storage 46 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 2 0 3 5 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 2 0 3 5 0 100 200 300 400 500 600 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 2 0 3 5 W a te r C a p a c it ie s (M C M /y r) Private Groundwater Supply Total Demand Surface Water Supply Existing Storage Capacity Public Groundwater Supply South 0 100 200 300 400 500 600 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 2 0 3 1 2 0 3 2 2 0 3 3 2 0 3 4 2 0 3 5 Shortage Private Groundwater Supply Total Demand Surface Water Supply Public Groundwater Supply Bekaa Existing Storage Capacity Projected Additional Water Resources (*) Baseline Demand/Supply Forecasts 47 Demand/Supply Forecasts Demand Supply Demand/Supply Balance Infrastructure Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap Outflow of existing surface water resources (springs) will be optimized by around 1% per annum for the period 2011 -2020 Unit Cost of Optimization of Surface Water Resources – Previous Experience (in USD/m3) 0.94 3.26 2.95 0.16 1.55 0.34 Average: 1.54 USD/m3 Highlights � Existing surface water resources (springs) are being currently exploited to a large extent by WEs � Previous experience at MEW proved the efficiency of superficial improvement of the catchment of surface water springs 48 0.16 0.34 Touffaha Moghr Qsem Ouyoun SamakAin Ed Delbe Daichounie surface water springs � An increase of 10-15% of the initial flow during the low season was achieved � Limited optimization could be achieved by around 1% per year for the period 2011 -2020 � Additional 65 MCM/yr are expected by 2020 Cost of Optimization of Surface Water Resources (in MUSD, 2011-2020) 9.78 9.88 9.98 10.08 10.18 10.28 10.39 10.49 10.59 10.70 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 200 MCM of artificial groundwater recharge are targeted at a first stage (2011-2020) Artificial Groundwater Recharge - Rationale � Groundwater aquifers in Lebanon are highly exploited, mainly in Beirut, Tripoli, South Lebanon and the Bekaa. � Around 500 MCM/yr are being naturally replenished. Current extractions amount to around 700 MCM/yr leading to a deficit of around 200 MCM/yr. As a result, the water table is depleting with saline water intrusion in coastal areas � Karstic aquifers are well spread all over Lebanon and Potential for Artificial Groundwater Recharge (MCM/yr) 43 55 42 60 200 49 � Karstic aquifers are well spread all over Lebanon and contain considerable volumes of water � Groundwater is a localized resource with no surface evaporation and does not involve large transmission systems � Artificial recharge is technically feasible in a large portion of the country � Pilot projects can be started near Beirut, Tripoli and Baalbek. The situation in South Lebanon requires deeper consideration � Preliminary studies show that each well could have a potential flow of 50-100 l/s during a period of at least 3 months CAPEX Forecast for Artificial Groundwater Recharge (MUSD, 2011-2035) 43 42 BML North South Bekaa Total 28 35 27 38 128 BML North South Bekaa Total Up to 670 MCM of static storage (~880 MCM dynamic) can be achieved in identified sites Potential for Surface Storage (MCM) CAPEX Forecast for Surface Storage (MUSD) Boqaata El Janneh Moukhada Ratiba Bared Qarkaf Kouachra Noura El Tahta Kamoua Atolbe Mseilha Balaa Iaal Brissa Dar Boochtar Ouadi Chich Hadat Jebbe Yammoune Younine Assi Phase I Assi Phase II Chabrouh Laqlouq Water conveyance from dams is mainly done by gravity and results in energy savings 208 171 190 98 667 339 257 190 98 884 BML North South Bekaa Total Static Dynamic 50 960 682 626 386 2,654 BML North South Bekaa Total Opex Forecast for Surface Storage (MUSD/yr) 52 25 13 6 96 BML North South Bekaa Total Boqaata Manzoul Bisri Kaysamani Aazounieh Maaser Chouf Damour Kfarhouna Lebaa Azibeh Jarjou Chohour Jinsnaya Ibl Es Saki Khardali Kfarsir Barhacha Ain Aarab Salaa Massa Chabrouh Dam Hill Lake Surface storage potential per WE Total BML Designation of Dam Static-Dynamic Cap. (MCM) CAPEX (MUSD) OPEX (MUSD/yr)Total WS Irrig. Boqaata El Manzoul Bisri Kaysamani Aazounieh 69.0 15.0 265.0 25.0 65.0 2.3 0.2 26.4 0.3 1.1 6-12 4.1-5.0 120 1.0 0.35 6-12 4.1-5.0 120 1.0 0.35 0.0 0.0 0.0 0.0 0.0 Maaser Chouf Damour El Janneh Moukhada Ratiba 53.0 150.0 300.0 9.0 9.0 0.5 7.3 13.2 0.6 0.1 2.2 0.3 30-90 2.0 42-106 2.2 0.15 25-75 2.0 34-94 0.0 0.15 5-15 0.0 8-12 960.0 52.0208-339 195-312 13-27 Designation of Dam Static-Dynamic Cap. (MCM) CAPEX (MUSD) OPEX (MUSD/yr)Total WS Irrig. Total South 626.0 13.1189.6 40.0 149.6 Kfarhouna Lebaa 17.0 15.0 0.1 0.10.8 1.2 0.0 0.0 0.8 1.2 Azibeh Jarjou Chohour Jinsnaya Ibl Es Saki 13.0 19.0 22.0 15.0 200.0 0.1 0.3 0.3 0.2 3.9 0.6 50 0.56 0.95 0.5 0.0 15.0 0.56 0.95 0.5 0.6 35.0 0.0 0.0 0.0 Khardali Kfarsir 280.0 45.0 6.4 1.8 120 15 20.0 3.0 100.0 12.0 51 Total BML 960.0 52.0208-339 195-312 13-27 Total North Bared Qarkaf Kouachra Noura El Tahta Kamoua 144.0 81.0 3.0 69.0 25.0 14 0.5 0.0 0.9 0.1 37-90 1.2 0.35 35-50 20-25 37-90 0.0 0.0 0.0 0.0 0.0 1.2 0.35 35-50 20.0-25 Atolbe Mseilha Balaa Iaal Brissa 18.0 55.0 26.0 69.0 20.0 0.3 2.0 0.4 3.2 0.1 0.70 0.8 1.2-2.2 12-18 6-12 0.70 0.0 1.2-2.2 9.5-14 5-10 0.0 0.8 0.0 2.5-4 1-2 682.0 25.0171-257 75-138 96-119 Dar Boochtar Ouadi Chich Hadat ElJebbe 150.0 13.0 9.0 3.0 0.3 0.10.4 55.0 1.0 0.4 20.0 0.9 0.0 35.0 0.1 Total Bekaa 386.0 6.098.4 12.4 86.0 Total South 626.0 13.1189.6 40.0 149.6 Yammouneh Younine Assi Phase I Under construction 66.0 50.0 0.1 1.5 1.3 1.5 63 5.8 0.0 0.0 5.8 1.5 63.0 0.0 Assi Phase II Barhacha 141.0 37.0 0.8 0.60.55 15 0.55 0.0 0.0 15.0 Ain Aarab Salaa 21.0 36.0 0.5 0.6 2.0 2.5 2.0 2.5 0.0 0.0 Massa 35.0 0.88.0 1.5 6.5 22 23 24 25 26 140 7 7 8 8 9 48 10 11 11 12 13 68 6 6 6 7 7 37 45 47 50 52 55 293 2011 2012 2013 2014 2015 2016-2020 BML North South Bekaa Trans. & Distr. OPEX (in MUSD/yr) Infrastructure forecasting – Water supply transmission & distribution 43 53 54 56 53 129 19 24 26 28 18 55 25 26 30 32 34 57 10 10 12 12 13 33 98 113 122 128 119 274 2011 2012 2013 2014 2015 2016-2020 Distribution(2) CAPEX (in MUSD) 76 120 121 113 104 59 10 10 10 10 11 12 30 34 42 46 41 40 7 7 7 7 7 10 123 171 180 177 163 121 2011 2012 2013 2014 2015 2016-2020 Transmission(1) CAPEX (in MUSD) Total 2011-2015 814(3) MUSD Including rehab/repl. of old systems and installation of new Total 2011-2015 249 MUSD/yr For existing and new systems Total 2011-2015 580 MUSD Including rehab/repl. of old systems and installation of new 52 156 173 193 55 63 72 72 79 88 40 44 49 323 359 403 2021-2025 2026-2030 2031-2035 Total 133 151 190 61 72 92 58 65 83 35 41 54 287 330 419 2021-2025 2026-2030 2031-2035 51 53 95 18 19 33 28 34 60 13 14 27 110 120 215 2021-2025 2026-2030 2031-2035 Note: (1) Includes bulk meters and storage tanks, (2) includes customer meters, (3) includes CAPEX for Awali-Beirut and Canal 800 conveyors (WS share) � CAPEX in first five years are relatively high because of efforts to replace existing over-age assets. More than 50% of existing transmission and distribution assets have reached the end of their useful life � High Transmission CAPEX for BML and South in 2011-2015 relates to the execution of Awali-Beirut and Canal 800 (WS share only) � Storage targets to achieve 0,5 and 1 day retention time for BML and other WE's respectively � Metering targets until 2015 in BML 95%, in North/South 85% and Bekaa 75%. Total meter installation over 1 Million in 2011-2020 Highlights Infrastructure forecasting – Irrigation 1 2 3 3 3 3 4 ���� ���� ���� ���� ���� Noura Et Tahta Scheme El Bared Scheme Assi River Basin Younine Scheme Southern Qaraoun Irrigation Project 1 2 3 4 5 5,000 750 500 5,400 1,550 58 6 8 170 28 Before 2020 After 2020 Commissioning Designation Area (ha) CAPEX (MUSD) OPEX (MUSD/yr) 1.2 0.2 0.25 2.8 0.6 53 67 5 8 8 8 9 9 10 11 8 8 8 8 8 8 8 12 Source: MEW ���� ���� 31,600 ���� ���� ���� ���� ���� 31,600 ���� ���� Irrigation Project South Bekaa (Phase 2), Left Bank South Bekaa, Right Bank & North South Lebanon Conveyor 800 Conveyor Anane Nabatieh Saida-Jezzine Project Qasmieh-Ras El Ain (Phase 2) Khardale Total 6 7 8 9 10 12 11 6,700 12,800 1,200 14,700 3,500 63,200 2,100 9,000 60 35 8 255+255 145 1,040 22 220 1.25 0.7 0.25 5.2 2.6 18.35 0.5 3.8 Infrastructure forecasting – Wastewater CAPEX (in MUSD) 303 82 73 457 498 210 407 0 1,115 BML North South Bekaa Total Funded Forecast Coastal Systems Inland Systems � Networks for coastal treatment plants and inland plants are already funded by CDR Comments 39 37 34 112 222 103 124 147 204 578 BML North South Bekaa Total Funded Forecast 54 OPEX (in MUSD) � Schemes that are currently partly funded will be funded and completed and will become operational by 2015 � Schemes that are currently unfunded will be implemented between 2013—2020 � It is estimated that remaining areas not covered by the identified schemes would require around 500 million US$ and will be implemented between 2013-2020 Assumptions 4.55 9.70 5.15 0 19.40 BML North South Bekaa Total 4.76 4.49 10.61 1.99 21.85 BML North South Bekaa Total National Water Sector Strategy “A right for every citizen, a resource for the whole country” 0 Eng. Gebran Bassil Ministry of Energy and Water Ministry of Energy and Water: 27/12/2010 Lebanese Government: Decision No. 2, 9/3/2012 Baseline Demand/Supply Forecasts 55 Demand/Supply Forecasts Sector Enabling Environment Institutional and Organizational Initiatives Financial and Commercial Initiatives Legal and Regulatory Initiatives Environmental Concerns Investment Plan Strategic Roadmap Roles and responsibilities in the water sector are well defined in Law 221 … Ministry of Energy and Water 1. Monitor, control, measure, study water resources, and estimate water needs 2. Monitor the quality of surface and groundwater and set quality standards 3. Develop and update a national masterplan for the allocation of potable and irrigation water resources, and develop a wastewater masterplan 4. Design and implement large water infrastructure projects 5. Perform artificial recharge of ground water aquifers and monitor extractions 6. Develop legal framework and procedures to protect water resources from pollution and improve water quality Role of the Ministry of Energy and Water (Law 221) Performance Evaluation 56 LRABekaaSouthNorthBML resources from pollution and improve water quality 7. Issue permits for water prospection and use of public water and property 8. Conduct and update hydro-geological studies and research, and collect technical water data 9. Monitor and regulate WEs and other entities working in the water sector 10. Enhance and monitor WE performance of according to indicators set in their business plans 11. Set standards and regulations for (i) studies and project execution, (ii) surface and groundwater exploitation and wastewater; and (iii) water quality monitoring 12. Perform expropriation transactions for MEW and WEs 13. Provide opinion on permits related to mines and quarries and impact on water resources 14. Ensure public relations and provide relevant information related to water conservation a. Design, implement, operate and maintain potable and irrigation distribution projects based on national master plan and resources allocated by MEW b. Collect, treat and dispose of wastewater based on treatment and outfall sites approves by MEW c. Propose water supply, irrigation and wastewater tariffs d. Monitor water quality for distributed water supply and irrigation Role of Water Establishments According to Law 221(*) Source: Law 221/2000 and its amendments Note: (*) Applies to BML, North South and Bekaa WEs but does not fully apply to LRA To be determined by joint decision of ministers of Energy & Water and Finance Role and Modus Operandi of Performance Evaluation Committee Policy Making Planning � Definition of sector policy, institutional roles and sector structure � Enactment of legislation and regulation � Development of investment and subsidy policies � Establishment of long term consolidated planning for water, irrigation and wastewater � Evaluation of infrastructure and investment requirements Description of Responsibilities MEW WEs ���� ���� ���� … where MEW is in charge of policy making, national planning and water resource management, while WEs will ensure service provision 57 Conservation/ Resource Management Regulation Business Operation � Allocation of resources across regions e.g., water reuse � Identification and promotion of water conservation campaigns � Issuance of regulations � Enforcement of regulations and standards for cost recovery, service quality, and consumer relations � Review and approval of tariff adjustment in accordance with rules and regulations � Provision of services including billing and collection � Maintenance and renewal of infrastructure � Funding and execution of investment programs ���� ���� ���� All the deficiencies in the implementation of Law 221 will be addressed Main Implementation Deficiencies of Law 221 1.1. Perform all priority actions required to complete the restructuring of WEs and address potential limitations, mainly: ‒ Development of revised and improved organization structures for WEs based on roles and responsibilities ‒ Drafting revised WE organization bylaws, supporting in the approval process and following up on their enactment ‒ Implementation of the restructuring of WEs ‒ Evaluate the potential for efficient outsourcing of certain Initiative # II.1 � The implementation of the reform law � Initiated but not fully concluded � The transfer of functions to the four WEs � Subject to several delays � Administrative and financial autonomy of WEs � WEs not yet fully empowered 58 ‒ Evaluate the potential for efficient outsourcing of certain non-core functions ‒ Providing needed support for WEs to gradually reach full administrative and financial autonomy 1.2. Improve on the operating model between WEs and MEW to ensure an integrated water resource management, mainly through: ‒ Improvement in coordination ‒ Ensuring an integrated management of water resources ‒ Providing operational and financial empowerment of WEs together with proper mechanisms for performance management ‒ Ensuring the involvement of WEs in project planning and implementation autonomy of WEs empowered � The legal text to organize the work of MEW � Has not been developed yet � MEW still dedicated to projects/O&M � Availability of funds and technical staff � WEs still suffer from shortage � Performance monitoring of WEs � Not yet enforced Organization structures of WEs will be reviewed for an improved performance 1.3. Improve on the performance of WEs to reflect: ‒ More focus on irrigation and wastewater responsibilities, in addition to current water supply activities ‒ Most suitable organization for technical functions i.e. Initiative # II.1 (Cont’d) Secretariat BoD AffairsAdministrative Expenditure Control Admin. Affairs Financial Affairs Technical Distribution Procur. & Legal Legal Purchas. Stats. and IT Financ e Salarie s Budget & Liquidatio Budget Exp. Liquid. Exp. Liquid. Cashiers Checking Genera l Accou nt Material Account. Admin Account. Financial Account. Collect & Cashie rs Collection Cashier s Project s Ststisti cs IT Beirut Beirut South Beirut CustomerCustomer Distr. Sup. Distr. Sup. North Beirut Works CustomerCustomer Distr. Sup. Distr. Sup. Works Mt Leb. North Upper Meth Jbeil Kesser wan Coastal Metn Mt Leb. South HR Employee Affairs Employee s Employee sSocial &Medical Social &Medical Safety & Training CustomerCustomerDistr. Sup. Distr. Sup.WorksWorks CustomerCustomerDistr. Sup. Distr. Sup.WorksWorks CustomerCustomerDistr. Sup. Distr. Sup.WorksWorks Aley Customer Distr. Sup. Distr. Sup. Baabda Works Customer Distr. Sup. Distr. Sup. Works Ware house s Mt Leb. North Mt Leb. South Labs Studies and Design Project Suoervi sion � ��� ������� South Beirut Ops Maint. North Beirut Ops Maint.Maint. � ��� ������� Jbeil Station s Ops Maint. Kesserwn Stations Ops Maint. � ��� ������� Upper Metn Sts Ops Coastal Metn � ��� ������� Aley Station s Ops Maint. Baabda Station Ops Maint. Control Admin & Fin.Technical & QC General Directorate Secretary Maint.Maint. Maint.Maint. Maint. Maint. Organization Structure of Beirut & Mount Lebanon Water Establishment General Directorate Control Secretariat &BoD Works Admin & FinancialTechnical & QC Expenditure Control Administrative Affairs Financial Affairs Technical Exploitation Admin Legal Affairs Registry & PR Registry & Archives Registry & Archives PR HR Employees Social & Med. Affairs Social & Med. AffairsWork Sec. & Training Work Sec. & Training Collective Services Procurement Bldg & Veh. Maintenance Building Maintenance Building Maintenance Vehicles Fin. Acc & Warehouse Cashiers Checking Budget & Exp Liquidation Budget Expenses Liquidation Expenses Liquidation Salary & Rev. Validation Warehouses General Accounting Material Accounting Analytic Accounting General Accounting Collection Checking Projects and Programs Execution Supervision Programs& Exploit. Rules Studies Statistics and IT Statistics IT Hydraulic Stations Purification Plants Labs and Workshops Labs Workshops Treatment Plants Pumping Stations Central Control Tripoli & Surrounding Admin Admin Subscribers O&M Collections Connections Networks Oversight North Region Halba Danniyeh Minieh Qobayat South Region Admin O&M Admin O&M Admin O&M Koura Zghorta Bcharreh Batroun Admin O&M Admin O&M Admin O&M Organization Structure of North Lebanon Water Establishment To date, LRA still doesn’t have an organization structure 59 for technical functions i.e. operation, maintenance for production, transmission and distribution ‒ Improvements to support functions e.g., Strategic Planning and Business Planning, Water Demand Management, performance management, more focus on IT, Fixed Asset Management, Supply Chain Management, HRM, Customer Service, Control and Audit functions CustomerCustomerDistr. Sup. Distr. Sup.WorksWorks �������Metn Ops Maint. Department Unit SectionDirectorate Qobayat Admin O&M Batroun Admin O&M General Directorate Legal Advisors Secretariat and BoD Affairs Expenditure Control Studies and ProjectsDistribution Production, Transfer and Ww Customers Affairs Accounting and Financial Affairs Central Administration Quality Control 872 HR Admin Procurement IT Legal Affairs Accounting Budgeting and Financial Affairs Collection and Cashiers Warehouses Meters Reading and Billing Customers service and Promotion Water Production/ South Litani Water Production / North Litani Wastewater / North Litani Wastewater / South Litani Laboratories Execution Supervision Planning and Studies Jezzine Saida Nabatieh Zahrani Marjeyoun Hasbaya Tyr Wadi Jilo Bent Jbeil دائرة المختبــرات دائرة المختبــرات Branch Offices (where needed) Main Warehouse Sec. Warehouses Sec. Warehouses Organization Structure of South Lebanon Water Establishment 212 General Directorate Expenditure Control Internal Control Distribution and Maintenance Plants and Projects Finance HR and Subscribers Registrar )�������( Secretariat IT and Statistics Statistics IT Legal Affairs and Procurement دائرة الموارد البشرية Subscribers HR Training and Employees Affairs Training and Employees AffairsSoc., Med. Affairs and Work Security Soc., Med. Affairs and Work Security Lawsuits & Legal Consultations Lawsuits & Legal Consultations Procurement Zahleh and South Bekaa Zahleh and South BekaaBaalbek and North Bekaa Baalbek and North Bekaa Public Accounting Administrative Accounting Financial Accounting Budget & Expenses Liquidation Budget & Expenses LiquidationRevenues Validation Revenues Validation Salaries and Wages Public Accounting Analytical Accounting Analytical AccountingMaterials Accounting Materials Accounting Financial Accounting Financial Accounting Collection Cashiers Laboratories Plants Programs and Studies Execution Supervision Zahleh Agglomeration Zahleh AgglomerationBaalbek Agglomeration Baalbek Agglomeration South Bekaa North Bekaa Main Lab ��������� ��� ������������� ��� ����Secondary Labs Baalbek Agglomeration Zahleh Agglomeration South Bekaa North Bekaa Warehouses Zahleh Rayak Chtaura Baalbek Deir El Ahmar Chmestar Rachaya Jeb Jennin Machghara Al-Labwa Al Hermel Main Warehouse Secondary Warehouses Secondary Warehouses Tech. and QCTech. and QCAdmin & FinancialAdmin & Financial Organization Structure of Bekaa Water Establishment MEW’s organization will be restructured with main focus on policy making, planning and regulatory roles Ministry of Energy and Water General Directorate of Exploitation Tutelage Water Tutelage Electricity Tutelage Concession Oversight Admin & Financial Technical Control Quarries Legal Employees & Accounting IT Environ ment Sanitation Surface Runoff Coordina tors Electrical Equipment Admin General Directorate of Hydraulic and Electric Resources Admin. Planning Legal Employees Accounting Water Equipment Archiving Programs Planning Water Planning Electricity Statistics Groundwater Hydro metry Expropriation and Water Rights Expropri ation Water Rights Projects Irrigation Studies Projects Studies General Directorate of Oil Admin. Financial & Economic. Employees Accounting Legal Financial Tutelage Financial Control & Accounting Procur. & Distribution Financial & Economic. Oil& Mineral Exploration Manufacturi ng Transport & Storage 60 PetrographyPetrography Archiving Groundwater and Geology Research & Hydraulic Structure Ground water Geology Geotechnica l Geotechnica l Research Structures Hill Lakes Projects Mt LebanonProjects North Projects South Projects Bekaa Department Unit Section General Directorate Directorate 1.4. Restructure MEW’s organization in line with the requirements of laws 221 and 247 to reflect more its water governance role, with main focus on policy making, planning and regulatory roles: ‒ Development of revised organization structures for MEW ‒ Drafting a revised organization law, supporting in the approval process and following up on its enactment ‒ Implementation of the restructuring of MEW 1.5. Develop the process for the performance monitoring and evaluation of WEs, including the monitoring body, performance indicators and targets, and tools and procedures Initiative # II.1 (Cont’d) Manpower needs and training requirements will be assessed to ensure optimal management of the sector Assess the needs of MEW and WEs for additional staff and training of exiting personnel � Perform bottom-up manpower planning based on workload drivers, requirements and current and forecasted workload volumes for each activity according to recommended organization structures � Assess gaps given current number of employees � Assess capabilities of MEW and WE staff and identification of training requirements Initiative # II.1 (Cont’d) 1.6. Provide the required manpower levels and capabilities to ensure an appropriate operation and maintenance of assets and the delivery of water at optimal service levels, through the: ‒ Staffing of MEW and WEs to required manpower levels according to recommended organization structures ‒ Exploring outsourcing potential ‒ Continuous development of staff through proper training 61 identification of training requirements TrainingRecruitment Transfers Across Entities � Develop a staff selection process to fill gaps where applicable for permanent and non permanent (contract based) employees � Develop job description for each required position � Advertise for position � Screen CVs, shortlist and select candidates for interview � Conduct relevant procedures, evaluate and communicate decision � Assess possibilities for transfer form other entities � Screen CVs and valuate potential candidates for required position � Conduct interview, evaluate and communicate decision � Generate an up to date training course list for use in the training needs � Develop training budget, curricula & calendar � Provide training courses � Complete the course evaluation s and provide feedback proper training 1.7. Enforce planning and capital spending responsibilities and coordination among various players in the water sector with a clear delineation of authorities, where: ‒ MEW is responsible for setting policies, strategies and national planning ‒ CDR, WEs and LRA are in charge of planning and securing financing of capital Allocation of planning and capital spending responsibilities among the various players in the sector will be clearly defined MEW � Water Sector Strategy � National Master Plans � Policies � Regulations Foreign and Local Financing Initiative # II.1 (Cont’d) The planning and implementation stage of the NWSS will be done in full compliance with IWRM concepts and in coordination with all related ongoing initiatives (e.g., IWRM Plan). Particular emphasis will be placed on stakeholders' involvement through extensive consultation 62 planning and securing financing of capital projects based on national plans ‒ WEs, LRA and other national entities develop their specific business plans and master plans according to policies and guidelines of the national plan � Design and implementation � Operations and maintenance � Design, implementation and handover � Implementation of ad hoc support projects, mainly in crisis situation Monitoring and Evaluation Foreign and Local Financing (Grants/Loans, National Budget, Revenues) MEW Directorates WEs & LRA CDR Others (CoS, HCD) � Financing Plan � Investment Plan � Plans� Business Plans � Master Plans Coordination Coordination The management of the irrigation sector will be addressed to ensure sustainability and improve cost recovery 1.8 Involve stakeholder participation in the design and management of projects to ensure sustainability according to best practices, through: ‒ Creation of formal Water Users Associations (WUAs) to replace the different organizations currently in charge of O&M of irrigation schemes ‒ Definition of roles and responsibilities with respect to water management (including water quality) of the WUAs and other partners, in close cooperation with the intended beneficiaries ‒ Providing well-focused training related to the establishment and management of WUAs to all involved parties Initiative # I.1 (Cont’d) Ministry of Energy and Water � Water resource provision and allocation � National irrigation master plan � Policy making � Large civil works � O&M of main canals, intake structures and pumping stations often well above the farmers’ capacities 63 ‒ Providing well-focused training related to the establishment and management of WUAs to all involved parties 1.9 Improve irrigation water demand management and cost recovery, and sustainability of irrigation schemes, through: ‒ Adjustment of irrigation water tariffs to cover O&M costs at a first stage, and periodically review and adjust water tariffs to reflect actual costs (refer to Tariff Initiatives in next slides) ‒ Basing water charges on volume of water used rather than area. Where metering is not feasible at this time, base water charges on a combination of a fixed charge to cover the basic services, and other charges which can be used as a proxy for the volume of water used, such as crop grown and/or hourly use of water ‒ Carrying out periodic public awareness campaigns to inform policy makers and farmers of water shortages that could be faced, and the need for conserving irrigation water Irrigation Scheme Water Establishment “Irrigation Department” Water Users Association (WUA ) � O&M of scheme at the secondary and tertiary levels � Collection of water fees � Payment of fees to the WE responsible for providing the bulk water and other services � Water quality management and pollution control stations often well above the farmers’ capacities � Assistance to WUAs in the O&M of irrigation schemes, especially those which are in bad state of repair Baseline Demand/Supply Forecasts 64 Demand/Supply Forecasts Sector Enabling Environment Institutional and Organizational Initiatives Financial and Commercial Initiatives Legal and Regulatory Initiatives Environmental Concerns Investment Plan Strategic Roadmap Tariffs structures will be reviewed to reflect value for real consumption and provide incentives for water saving Water Supply � Lebanon is one of the very few countries still adopting a flat tariff structure � Volumetric charges prevented by lack of meters � Lack of volumetric charges limiting conservation incentives at the consumer level, and production/leakage reduction incentives at the WE level � Increased reliance on expensive private Key Highlights of Current Tariff Structures 2.1. Water Supply � Implement a new consumption-based tariff which includes fixed and variable (volumetric) charges for connections equipped with customer water meters, where: ‒ Current lump-sum tariff should be temporarily maintained for unmetered customers ‒ No tariff increase would be introduced before concrete improvements are brought to the water sector (i.e. 2014) ‒ Any future tariff increase should be based on a proper cost analysis to cover, at a minimum, O&M cost in 2014 as a first stage Initiative # II.2 65 � Increased reliance on expensive private providers Irrigation � The largest water consumer, with very limited metering, preventing volumetric charges � Lack of awareness on water consumption and conservation � High reliance on undeclared groundwater � Collection not performed effectively by WEs Wastewater � Tariff not yet applied, leading to a lack of incentive for limiting pollution to cover, at a minimum, O&M cost in 2014 as a first stage 2.2. Irrigation � Design and implement alternative irrigation tariff structures based on the specificities of existing and projected irrigation schemes, where volumetric metering would be the preferred solution wherever possible 2.3. Wastewater � Apply a new wastewater tariff to customers connected to a sewer network and to a WWTP, where: ‒ New tariff should be based on a proper cost analysis and cover at a minimum O&M cost in an intermediate stage, with an introductory tariff initially in pilot areas where full service (collection and treatment) is available ‒ Wastewater charges to be introduced as a percentage of water bill Different options for Private Sector Participation (PSP) will be considered according to sector maturity Highlights � Given the current efficiency levels and low tariff collection, Management Contract would be a common starting point for PSP in the downstream sub sector. It would prepare WEs for Full cost recovery Water Sector Lease Concession / BOT Divestiture / BOO 66 sector. It would prepare WEs for more advanced forms of PSP � Production/ Upstream is typically a more mature sub sector and is suitable for more advanced PPP schemes (e.g., dams, WWTPs) Responsibility of Private Sector Asset ownership with operational and commercial responsibility No asset ownership; with operational responsibilities Low cost recovery Water Sector Maturity Service Contract Management Contract Lease While PSP is likely to be one of the main enablers of improvement, it should be supported by a holistic reform approach Select and implement suitable PSP approach � Introduce private sector to increase efficiency, improve service and ensure continuous and general access to quality water 1 2 67 � Review role of existing institutions � Design new institutions to support PSP and reform initiatives � Restructure and reorganize institutions Review water sector policies Improve Institutional Setting � Review policies related to water usage and resources, tariffs, water quality and environment, and investment climate 2 3 A number of shortcomings need to be addressed to ensure success of PSP initiatives 2.4. Provide support in developing the adequate legal institutional and regulatory setting to promote PSP, in a way to ensure the interests of the Government and the Lebanese population, and provide an attractive environment to the private sector, through: ‒ Finalizing legal texts, existing or under development and developing any additional legislation Initiative # II.2 (Cont’d) � Lebanon still lags behind a number of countries in the MENA region who have already an experience in PSP � The legal framework governing PPP activities in not yet ready � While PSP is likely to be one of the main enablers of improvement, it should be supported by achieving a holistic reform and a sound enabling environment Key Lessons Learnt 68 legislation ‒ Ensuring needed approvals from relevant authorities 2.5 Ensure the readiness of the water sector from all aspects (e.g., institutional, organizational, financial, legal and regulatory) to guarantee the success of future transactions (this initiative is addressed throughout this strategy document) holistic reform and a sound enabling environment � The participation of the private sector is seen as an enabler to incorporate know-how and fresh capital � Given inefficiency and low tariff collection, Management Contracts would be a starting point for PSP in the downstream sub-sector. It would prepare the sector for more advanced forms of PSP � Production/ Upstream is suitable for more advanced PSP schemes (e.g., BOT) Baseline Demand/Supply Forecasts 69 Demand/Supply Forecasts Sector Enabling Environment Institutional and Organizational Initiatives Financial and Commercial Initiatives Legal and Regulatory Initiatives Environmental Concerns Investment Plan Strategic Roadmap The “Code de l’Eau” currently under development needs to be finalized and effectively implemented and enacted 3.1. Produce the final version of the draft Water Code and follow up the process for its effective implementation and enactment, through: ‒ The approval of the Ministry of Energy and Water ‒ Discussion and adoption by the Council Initiative # II.3 � Recognition of the main legal principles prevailing actually in the field of water: ‒ the sustainable management ‒ the right of each citizen to receive water ‒ the determination of the missions of the Public Authorities to provide drinking water, the treatment of wastewater, the fight against flood, drought and Key Components of the Water Code 70 ‒ Discussion and adoption by the Council of Ministers ‒ Transfer by decree to the Parliament for final approval and implementation wastewater, the fight against flood, drought and pollution � Introduction of a National Water Council including the representatives of the main authorities in charge or concerned by the water sector � Implementation of a Water master plan to guarantee the realization of water and wastewater infrastructure � Recognition of the administrative, environmental economic and financial requirements of water resource management � Determination of the utilization of water including the legal possibilities to Private Sector Participation Legal requirements stemming from the implementation of the NWSS will be identified and executed 3.2. Strengthen the legal framework in order to improve the performance of the delivery of water and wastewater services and support the implementation of the proposed strategic initiatives, including: ‒ Improvements to current organizational bylaws of WEs ‒ Development and enactment of new organizational law for MEW’s restructuring ‒ Reevaluation of some provisions of law 221/2000 and amendments in view to strengthen the capacities of the management and to provide better Initiative # II.3 (Cont’d) � Lebanon is endowed with a tested 80 years-old body of legislation in this field of water and related issues � In recent years, the water sector in Lebanon, albeit vital for socio economic development, has been the object of few structural legal Key Legal Highlights 71 to strengthen the capacities of the management and to provide better performance to the end users ‒ Establishment of an efficient regulatory framework ‒ Setting of a transparent tariff structures ‒ Development of a wastewater collection and disposal regulations ‒ Improvement of irrigation regulation bylaws ‒ Providing adequate legal environment to promote private sector participation ‒ Development of performance based incentives (e.g., procurement framework, ) ‒ Ensuring normal access to potable water and sanitation including requirements for a proper implementation of operational and quality standards the object of few structural legal changes � The modernization and updating of the legislation do not necessarily imply a complete juridical overhaul of the legal principles, but rather, a more comprehensive method of drafting based on advanced juridical, socio-economic and scientific analysis Baseline Demand/Supply Forecasts 72 Demand/Supply Forecasts Sector Enabling Environment Institutional and Organizational Initiatives Financial and Commercial Initiatives Legal and Regulatory Initiatives Environmental Concerns Investment Plan Strategic Roadmap 4.1. Improve / refine climate change knowledge, and particularly its implications on the water sector and its vulnerability (i.e. refinement of models and figures): – Collect, analyze and develop trends for climatic data (precipitation and temperature) Initiative # II.4 Temperature Evapotranspiration Snow width Anticipated Trends Precipitation More Predictable Between 10% & 20% by 2040 Between 25% & 50 % by 2090 Projected Variations 1 ⁰C on the coast and 2 ⁰C inland by 2040 3 ⁰C on the coast and 5 ⁰C inland by 2090 Beirut: 1% by 2044 & 2% from 2044 to 2098 Cedars: 5% by 2044 & 8% from 2044 to 2098 Zahleh: 26% by 2044 & 10% from 2044 to 2098 50% with 2 ⁰C warming, & mean width ~20cm (i.e, Cenomanian plateau of Nahr Ibrahim 2,000m altitude) Knowledge on climate change and its implications on water resources and its vulnerability will be improved and refined 73 Source: MoE, UNDP (precipitation and temperature) covering all Lebanon, to compare with historic data and detect possible deviations – Establish a unified database to include all water monitoring data and maintain it regularly updated – Develop and implement long term river, spring and snow cover monitoring programs – Update periodically water usage scenarios and thus water management options P re d ic ta b il it y width Snowpack altitude Snowpack volume Surface Runoff Infiltration (Recharge) Snowing period S n o w Water Resources Less Certain 1,500 - 1,700 m with 2 ⁰C warming 1,700 - 1,900 m with 4 ⁰C warming Begin – end of each season reduction 1 – 3 weeks 1,200 - 700 MCM with 2 ⁰C warming 700 – 350 MCM with 4 ⁰C warming 2,000m altitude) 6 to 8% with 1 ⁰C warming 12 to 16 % with 2 ⁰C warming Current situation � Groundwater pollution: – Increasing salinity – Contamination by nitrates & pesticides � Surface water pollution: – Bacteriological contamination – Chemical contamination (excessive use of fertilizers, direct discharge of industrial effluent, olive oil residues, open dumping) � Permanent sources of pollution (n=82) along 225 km of coast (wastewater discharge, chemicals, oil residues, turbid water, warm water and dumps/landfills) � Limited protection of water resources/ recharge zones Water Resources Surface and Groundwater 4.2. Improve water quality and protection of recharge zones: – Review and upgrade water quality standards – Take actions to protect against contaminants that may be found in drinking water – Design and implement a comprehensive integrated surface & groundwater quality monitoring network – Develop a implement a concept for protecting recharge zones – Centralize data and ensure communications with the consumers – Design and implement an integrated monitoring system for irrigation water quality Initiative # II.4 (Cont’d) Water, wastewater treatment and effluent quality will be improved, and flood mitigation arrangements developed and enforced 74 Source: MoE, UNDP � Damages from flash flooding: cost up to 2.5 million USD dollars per event (e.g. 2001 flood in Hermel region) � Drinking water Standards (1999): decree # 1039 � Drinking purposes, swimming purposes and aquatic life (1996): MoE decision 52/1 � Water quality mostly unknown at user level (water provided from WEs or alternative water sources) � Monitoring data is scarce and situation poorly monitored � Monitoring of irrigation water quality quasi absent � Standards for wastewater discharge set in 2001 (MoE decision 8/1) � Coverage of wastewater network (~60 % ) � Wastewater treatment (~8%) � Draft standards for sludge reuse set in 2010 � Draft standards for wastewater reuse in agriculture set in 2010 Usages Potable Irrigation Industrial Wastewater monitoring system for irrigation water quality 4.3. Develop flood mitigation arrangements: – Establish a flood plain zoning – Develop an integrated flood management plan – Assess the potential use of flood water for groundwater recharge – Support initiatives aiming at combating desertification 4.4. Improve wastewater treatment and effluent quality: – Review and update wastewater treatment and effluent standards – Review and adopt draft standards for wastewater reuse in agriculture & sludge reuse – Implement wastewater effluent monitoring systems According to the World Bank, the cost of environmental degradation: ~ 1% of GDP 4.5. Evaluate environmental consequences of the proposed NWSS (Strategic Environmental Assessment) to ensure they are : A Strategic Environmental Assessment (SEA) will be conducted to ensure environmental concerns are addressed and resolved Screening Scoping Stakeholder involvement Does the proposed strategic action affect the environment? What are the driving forces/issues/ components that should be addressed? Were the opinions of affected groups taken into consideration? Initiative # II.4 (Cont’d) SEA – Main Steps 75 they are : – fully included – addressed appropriately at the earliest possible stage of decision making on par with economic and social considerations Performing the assessment Submission of SEA report Peer review & integration of SEA finding Decision making Monitoring & Quality assurance What documents & data need to be included & presented in an objective manner? Were the original set objectives fulfilled & were the stakeholders feedback accounted for? To decide on the proper environmental arrangements regarding the proposed strategy Did SEA influence decision and result in greening public decisions? Were the potential impacts identified & assessed? Source: MoE, UNDP National Water Sector Strategy “A right for every citizen, a resource for the whole country” 0 Eng. Gebran Bassil Ministry of Energy and Water Ministry of Energy and Water: 27/12/2010 Lebanese Government: Decision No. 2, 9/3/2012 Baseline Demand/Supply Forecasts 76 Demand/Supply Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap Need for Capex, Opex and revenues is driven by the evolution of demand Evolution Capital Investments � Timeline � Cost of capital Operation & Intermediate Outputs Final OutputInput Parameters Includes water, Capex and Opex and Revenue Requirements 7777 Evolution of Demand(*) Operation & Maintenance Cost � Fixed Costs � Variable Costs � Split by type of customer � UfW � Billing & Collection Gap Analysis � Sector Deficit / Surplus � Impact of key drivers/policy levers � Capex Efficiency � Operational Improvement � Tariff Scheme � Number of Customers � Industries � Irrigated Areas � Density � Coverage Targets Revenues Policy Objectives Includes water, irrigation and wastewater Note: (*) Includes requirements to upgrade existing infrastructure Wastewater(2) Total capital expenditure requirements (CAPEX) for the period 2011-2020 would reach USD7.74 Billion approximately 87 91 372 473 386 338 775 968 1,174 1,150 948 3,104 63 Surface Storage, Ground Storage 128 Springs, 102 Short Term Additional water resources include optimization of spring outflow, artificial recharge of aquifers, reuse of treated wastewater and surface storage 1,973 3,272 2,661 Medium Term Long Term Capital Expenditure Requirements for Lebanon Water Sector, 2011-2020 (By Sub-Sector, in USD Million) 7878 Irrigation Water Supply Note: (1) Additional resources include spring optimization, artificial recharge, reuse of treated wastewater and surface storage; (2) Wastewater includes collection and treatment 191 271 313 367 242 198 163 153 179 129 221 285 302 305 282 78 84 70 82 81 37 42 87 91 86 77 73 28 28 28 326 208 229 242 258 273 562 549 493 547 510 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Additional Resources(1) 2,206 1,790 577 7,740 A d d it io n a l R e so u rc e s W a te r S u p p ly Ir ri g a ti o n W a st e w a te r E n a b li n g In it ia ti v e s To ta l 1,975 Split between types of additional water resources Springs Ground Storage Surface Storage Reuse (Trans.) 174 253 285 339 214 170 135 135 161 111 8 8 18 18 18 18 18 8 8 8 10 10 10 10 10 10 10 10 11 11 CAPEX included with Wastewater Operational Costs for Lebanon Water Sector, 2011-2020 (By Sub-Sector, in USD Million) Water Supply and Irrigation OPEX includes the share of OPEX related to corresponding dams 61 67 226 234 248 282 312 410 Short Term 267 519 1,302 Medium Term Long Term Total operational expenditure requirements (OPEX) for the period 2011-2020 would reach USD2.1 Billion approximately 7979 Wastewater Irrigation Water Supply 96 102 108 114 132 157 159 163 192 21219 19 21 22 23 24 24 29 29 33 12 19 26 33 40 46 51 56 61 127 140 154 170 195 226 234 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1,435 243 2,088 Water Supply Irrigation Wastewater Total Policies and targets for tariffs and collection are set, together with an estimate of their implications on revenues Water Supply � Volumetric tariff to be introduced in pilot areas of fully metered connections (25% of customers in 2012) and gradually rolled out (75% of customers by 2015). Rate per m3 to be maintained at the current average of USD 0.39 until 2014 and then increased to reach O&M recovery by 2015 an full cost recovery by 2021 � Current lump-sum tariff to be temporarily maintained for unmetered customers � Number of subscribers to be increased through improved coverage and customer surveys � Collection to be improved from current national average of 47% to 60% by 2012 and 80% by 2015 � Tariffs to be structured based on the specificities of irrigation schemes (currently assumed: <10% volumetric, 30% per hour, 60% per area). Volumetric metering would be the preferred solution 80 Irrigation Wastewater volumetric, 30% per hour, 60% per area). Volumetric metering would be the preferred solution wherever applicable (target by 2015: 60% volumetric, 20% per hour, 20% per area) � Rate per m3 to be maintained at the current average of USD 0.12 until 2014. Rate per hour to be kept at an average of USD 6. Rate per ha USD 400/yr. All rates are to be increased by 20% starting 2015 � Collection to be improved from current national average of <10% to 30% by 2012 and 60% by 2015 � Collection and treatment to at least preliminary level of 80% of wastewater by 2015, and of 95% by 2020. Secondary treatment and reuse for all inland and for coastal systems where reuse is applicable by 2020 � The new WW tariff (25% of the WS tariff at an initial stage) to be introduced in 2011 to pilot areas where all customers are connected to a sewer network and to a WWTP, to be then increased to gradually reach full recovery of all O&M costs by 2020 � Wastewater charges can be a percentage of the water bill Revenues for Lebanon Water Sector, 2011-2020 (By Sub-Sector, in USD Million) Total revenues of the water sector for the period 2011-2020 are estimated to reach USD2.72 Billion 193 364 444 520 Short Term 232 548 1,941 Medium Term Long Term Revenues based on policies/targets for water supply, irrigation and wastewater set in previous slide 81 103 109 119 131 171 227 235 279 311 2 3 4 5 8 8 11 12 13 17 5 10 19 33 59 72 97 117 152 110 122 142 169 237 277 336 364 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Wastewater Irrigation Water Supply 1,881 83 757 2,721 Water Supply Irrigation Wastewater Total Total Revenues Operational Costs Capital Expenditures Under the set policies and targets, O&M cost recovery is expected by 2014 and full cost recovery would be reached by 2021 110 122 142 169 237 277 336 364 444 520 (127) (140) (154) (170) (195) (226) (234) (248) (282) (312) (775) (968) (562) (549) (493) (547) (510) Projected Financial Performance of the Lebanon Water Sector (2011-2020, USD Million) Higher CAPEX in 2011-2015 due to rehabilitation/replacement of existing over-aged assets and the need for additional water resources 82 O&M Cost Recovery Capital Expenditures (968) (1,174) (1,150) (948) (547) (510) Tariffs 2011 2012 2014 20152013 2016 2017 2018 2019 2020 0.39 0.10 0.12 6.00 400.00 0.39 0.12 0.12 6.00 400.00 0.39 0.15 0.12 6.00 400.00 0.39 0.17 0.12 6.00 400.00 0.45 0.23 0.14 7.20 480.00 0.45 0.24 0.14 7.20 480.00 0.50 0.29 0.17 8.64 576.00 0.50 0.31 0.17 8.64 576.00 0.55 0.36 0.17 8.64 576.00 0.55 0.39 0.21 10.37 691.20 WS (USD/m³): WW (USD/m³): Irrigation: Volumetric (USD/m³) per hour (USD/hour) per area (USD/ha) Full Cost Recovery(1) (expected by 2021) Note: (1) Full cost recovery includes O&M, General and Administrative, depreciation and debt service. Recovery is at sector level and is not specific to a given WE or sub-sector. Total of 321 projects, with a budget of USD 2.45 Billion are ongoing, committed or planned for the period 2001-2015 … Additional Water Resources Water Supply Transmission and Distribution Average Completion Rate of Projects Due by May 2010(2) 67% 66% 379 80% 14% 6% 812 56%22% 22% 6 5 12 Total 23 Projects Ongoing and Planned Projects (2001-2015) (in USD Million) (1) 83 Transmission and Distribution Wastewater Collection and Treatment Irrigation Note (1) Approximated with CDR projects, donor funded projects, MEW projects, and WE projects; (2) CDR estimations; (3) Assuming that the 5-year plans of the WEs cover 169 projects Source: PMO – Booz & Company Total Investments (2001-2015) Planned Due after May 2010 Official Due Date by May 2010 76% 30%24996.3%3.6%0.1% 1,011 60%27% 13% 19 43 177 13 18 24 Total 239 Projects(3) Total 55 Projects 1 2 1 Total 4 Projects … with around USD 1.6 Billion as planned to be spent on new projects � A total of USD 2.45 Billion(1) channeled through various stakeholders is funding the design and implementation of current and planned projects � Around USD 1.6 Billion is planned to be spent on new projects � Investments have a low return with a poor execution rate and low assets and investments utilization, due to inadequate sequencing and funds’ misallocation 2.45 65% 21%14% Ongoing and Planned Investments Timeline (2001-2015) (in USD Billion) Official Due Date by Ongoing (3) Planned (4) Investments (2001-2015) 84 � 66% of total investments are financed by foreign funds and 34% by local funds � 60% of local funds are financed by MEW/ WEs and 40% by CDR � In the absence of a plan, foreign donors support projects in line with a specific agenda (i.e., mainly waste water in line with Barcelona convention) � Internal investments are not driven by a supply demand analysis, but often influenced by political agendas inadequate sequencing and funds’ misallocation Official Due Date by May 2010 (2) Ongoing Planned Investments (2001-2015) Ongoing and Planned Investments per Source of Funding and Sub Sector(1) (2001-2015) (in USD Billion) 0.83 12% 85% 3% 1.62 56% 30% 14% Waste Water Water Supply Irrigation Foreign Funds Local Funds 66% of total 34% of total Note: (1) Approximated with CDR projects, donor funded projects, MEW projects, and WE projects; (2) Average Completion rate 68%; (3) Started projects whose end date is later than May 2010; (4) Start date later than May 2010; (5) Disbursement over the sum of signed and planned projects Source: PMO - Booz & Company Baseline Demand/Supply Forecasts 85 Demand/Supply Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap # In fr a st ru c tu re I.1 I.2 I.3 I.4 I.5 I.6 I.7 NWSS - Strategic Roadmap 2011 2012 2013 2014 2015 2016 2017 2018 2019 20202010 2035 Optimization of surface water resources (additional 64 MCM) Artificial recharge of groundwater aquifers (up to 200 MCM at an initial stage) Surface storage - dams and hill lakes (additional 670MCM static/880MCM dynamic in identified sites) Water supply transmission (2,800 km) and storage tanks (191,000 m3) Water supply distribution (9,600 km) and customer metering (1 million water meters) Irrigation rehabilitation and expansion (additional 30,000 ha during 2011-2020 to reach 60,000 ha by 2035) Wastewater collection (80% by 2015 and 95% in 2020) and treatment (30% by end 2012, 80% by 2015 and 95% in 2020) Institutional and Organizational Short Term Medium Term Long Term Longer Term Initiative 8686 M a n a g e m e n t II.1 II.2 II.3 II.4 II.5 Water conservation and awareness Institutional and Organizational � WEs restructuring and performance improvement � MEW’s restructuring & performance evaluation � Providing required manpower levels and capabilities � Enforcing planning and spending responsibilities � Irrigation sector management and sustainability Financial and Commercial � Tariff restructuring � Support for PSP and related sector readiness Legal and Regulatory � Finalization of the Water Code � Legal requirements for NWSS Environmental Concerns � Climate change and its implications on the water sector � Improving water quality and protection � Strategic Environmental Assessment Baseline Demand/Supply Forecasts 87 Demand/Supply Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap I. Infrastructure Initiatives II. Sector Management Initiatives Infrastructure – Initiative Summary (1/6) # FinancingInitiative Implementation time & CAPEX 11 12 13 14 15 I.1 � Optimization of surface water resources ‒ Limited optimization of around 1% per year for the period 2011 -2015, and a second stage 2016-2020 ‒ Experience proved the efficiency of superficial improvement of the catchment of surface water springs ‒ An increase of 10-15% of the initial flow during the low season would be achieved � Artificial groundwater recharge GoL 2011-2015: Additional 38MCM 2016-2020: Additional 30MCM 16-20 50 M$50 M$ 8888 Grants GoL I.2 � Artificial groundwater recharge ‒ Artificial recharge is technically feasible in a large portion of the country ‒ Pilot projects can be started near Beirut, Tripoli and Baalbek. The situation in South Lebanon requires deeper consideration ‒ Preliminary studies show that each well could have a potential flow of 50-100 l/s during a period of at least 3 months I.3 � Surface storage ‒ Around 46 sites have been identified as suitable for surface storage ‒ Detailed designs and tender documents for a number of sites are ready. Execution could start in early 2011 including: 2011-2015: 120MCM 2016-2020: 80MCM As detailed below 64 M$64 M$ 1,264M$ 711 M$ � North ‒ Brissa Dam 80-151 0.8 Infrastructure – Initiative Summary (2/6) # Financing Total CAPEX (MUSD) Initiative 859.0 25.0 69.0 65.0 53.0 300.0 14.0 8.0 300.0 15.0 10.0 � BML ‒ Qaysamani Lake ‒ Boqaata Dam ‒ Aazounieh Dam ‒ Maaser El Chouf Dam ‒ Janneh Dam ‒ Laklouk Lake ‒ El Manzoul Dam ‒ Bisri Dam ‒ Mokhada Lake ‒ Ratiba Lake GOL 166-233 1.0 6-12 4.1-5.0 2.2 30-90 0.5 0.4 120.0 2.0 0.3 488.0 3.0 Capacity (MCM) Static - Dynamic Implementation time & CAPEX 11 12 13 14 15 16-20 12.5 12.5 17.3 17.3 17.3 17.3 16.3 16.3 16.3 16.3 13.3 13.3 13.3 13.3 60.0 60.0 60.0 60.0 60.0 7.0 7.0 4.0 4.0 300.0 7.5 7.5 5.0 5.0 3.0 8989 ‒ Brissa Dam ‒ Kouachra Lake (Rehabilitation) ‒ El Bared Dam ‒ Qarkaf Dam ‒ Mseilha Dam ‒ Balaa Dam ‒ Rahwe Lake ‒ Iaal Dam ‒ Ouadi Chich - Arz Lake ‒ Atolbe Lake ‒ Hadath El Jebbeh Lake 0.8 37-90 20-25 6-12 1.2-2.2 2.2 12-18 1.0 0.7 0.4 I.3 Cont’d GOL Loans PSP � South – Ibl Es Saki Dam 50 50� Bekaa ‒ Assi Project Phase I ‒ Assi Project Phase II ‒ Younine ‒ Ouadi Sbat ‒ Barhacha Lake ‒ Massa Dam ‒ Rachaya - Ain Arab Lake 83 1.5 63 5.8 0.6 2.0 2.5 8.0 3.0 3.0 144.0 81.0 55.0 26.0 25.0 100.0 30.0 12.0 9.0 300.0 328.0 50.0 141.0 66.0 15.0 10.0 25.0 21.0 3.0 3.0 28.8 28.8 28.8 28.8 28.8 20.3 20.3 20.3 20.3 13.8 13.8 13.8 13.8 8.7 8.7 8.7 12.5 12.5 100.0 30.0 12.0 9.0 50.0 50.0 200.0 12.5 12.5 12.5 12.5 28.2 28.2 28.2 28.2 28.2 16.5 16.5 16.5 16.5 7.5 7.5 5.0 5.0 8.3 8.3 8.3 10.5 10.5 Infrastructure – Initiative Summary (3/6) # Initiative � Water Supply Transmission ‒ Replacement of existing over-aged transmission systems and associated equipment and bulk meters ‒ Leakage detection/rehabilitation and partial replacement of damaged middle-aged systems and associated equipment ‒ Expansion of transmission systems to meet growing demand including district metering ‒ Rehabilitation/replacement of existing storage tanks including hydraulic equipment and flow meters Financing 2011-201: Full/partial replacement of 2,550 km of pipes and additional Implementation time & CAPEX 11 12 13 14 15 16-20 9090 I.4 hydraulic equipment and flow meters ‒ Construction of new storage tanks to meet growing demand and achieve 0,5 and 1 day retention time for BML and other WE's respectively including hydraulic equipment and flow meters ‒ Construction of Awali – Beirut and Canal 800 (WS share only) conveyors and related transmission systems and equipment GoL Loans/ Grants and additional 156,000 m3 of storage in 465 tanks 2016-2020: Replacement of 250 km of pipes and additional 35,000 m3 of storage in 96 tanks 121M$814 M$ Infrastructure – Initiative Summary (4/6) # Initiative � Water Supply Distribution ‒ Replacement of existing over-aged distribution networks including house connections ‒ Rehabilitation and partial replacement of damaged middle aged networks, supported by leakage detection campaigns ‒ Expansion of distribution networks to cover new geographic areas and meet growing demand including house connections ‒ Installation of customer water meters. Metering targets by 2015 in BML 95%, in North/South 85% and Bekaa 75% Financing 2011-2015: Full/partial replacement of 6,900 km of pipes with house connections and Implementation time & CAPEX 11 12 13 14 15 16-20 9191 I.5 2015 in BML 95%, in North/South 85% and Bekaa 75% GoL Loans/ Grants connections and installation of 640,000 meters 2016-2020: Full/partial replacement of 2,700 km of pipes with house connections and installation of 365,000 meters 274 M$580M$ Infrastructure – Initiative Summary (5/6) # Initiative � Irrigation ‒ Rehabilitation/replacement of existing over-aged irrigation systems and networks ‒ Implementation of additional 15,000 ha of irrigation schemes until 2015 and 15,000 ha between 2016-2020 5,750 Financing Area (ha) As detailed below North Implementation time & CAPEX 11 12 13 14 15 16-20 205 M$372 M$ 9292 I.6 5,750 5,000 750 GOL Loans/ Grants 4.0 4.0 9.0 9.0 9.0 13,650 5,400 1,550 6,700 14,700 14,700 North • Noura El Tahta Scheme • El Bared Scheme Bekaa • Assi Scheme • Younine Scheme • South Bekaa Phase 2 (Left Bank) South • South Lebanon Conveyor 800 29.0 20 28 48 56 47 56 15 15 36 36 36 119 Infrastructure – Initiative Summary (6/6) # Initiative � Wastewater ‒ Collection and treatment to at least preliminary level of 80% by 2010 and 95% by 2020 ‒ Pre-treatment of all industrial wastewater by 2020 ‒ Reuse of 20% of treated wastewater by 2015, and 50% by 2020 ‒ Secondary treatment and reuse of all inland wastewater by 2020 and secondary treatment by 2020 of coastal wastewater where reuse is economically justified 1. Integrated and prioritized immediate investment: a. Funded networks for the seven completed and two operational WWTPs along Financing GoL 1,895M$ Implementation time & CAPEX 11 12 13 14 15 16-20 9393 I.7 a. Funded networks for the seven completed and two operational WWTPs along the coast b. Completion of already funded projects c. Networks for already completed projects (23 inland and 11 coastal plants) 2. Preparation of regional wastewater master plans 3. Integrated national investment program 2013-2020 a. Preparation and implementation b. MEW responsibility for budget execution and project implementation with staff recruitment and capacity building 4. Economic reuse of treated wastewater and sludge (studies and investment) 5. Capacity building and pilots for wastewater sub-sector � Long term (wastewater) ‒ Continuation of the integrated national investment program ‒ Updating pre-treatment plants to secondary and extension of Jbeil plant ‒ Investments for reuse of treated wastewater for irrigation GoL Loans/ Grants PSP 1,213M$ 190 490 880 4 200 20 31 80 Baseline Demand/Supply Forecasts 94 Demand/Supply Forecasts Sector Enabling Environment Investment Plan Strategic Roadmap I. Infrastructure Initiatives II. Sector Management Initiatives Management – Initiative Summary (1/9) # FinancingInitiative 1.1. Perform all priority actions required to complete the restructuring of WEs and address potential limitations, mainly: ‒ Development of revised and improved organization structures for WEs based on roles and responsibilities ‒ Drafting revised WE organization bylaws, supporting in the approval process and following up on their enactment ‒ Implementation of the restructuring of WEs ‒ Evaluate the potential for outsourcing of certain non-core functions ‒ Providing needed support for WEs to gradually reach full administrative and financial autonomy Implementation time & Budget 11 12 13 14 15 16-20 9595 II.1 financial autonomy 1.2. Improve on the operating model between WEs and MEW, through: ‒ Ensuring an integrated management of water resources ‒ Ensuring the involvement of WEs in project planning and implementation for water supply, irrigation and wastewater ‒ Improvement in coordination ‒ Ensuring operational and financial empowerment of WEs together with proper mechanisms for performance management 1.3. Improve on the performance efficiency of WEs to reflect: ‒ More focus on irrigation and wastewater responsibilities, in addition to current water supply activities ‒ Most suitable organization for technical functions ‒ Improvements to support functions e.g., Strategic Planning and Business Planning, Water Demand Management, performance management, more focus on IT, Fixed Asset Management, Supply Chain Management, Customer Service, Control and Audit functions Technical Assistance Grants GOL 14 M$ Management – Initiative Summary (2/9) # FinancingInitiative Technical Assistance Grants GOL 1.4. Restructure MEW’s organization in line with the requirements of laws 221 and 247 to reflect more its water governance role, with main focus on policy making, planning and regulatory roles: ‒ Development of revised organization structures for MEW ‒ Drafting a revised organization law, supporting in the approval process and following up on its enactment ‒ Implementation of the restructuring of MEW 1.5. Develop the process for the performance monitoring and evaluation of WEs, including: Implementation time & Budget 11 12 13 14 15 16-20 2 M$ 9696 II.1 Cont’d including: ‒ Monitoring body ‒ Performance indicators ‒ Tools and procedures Technical Assistance Grants GOL 1.6. Provide the required manpower levels and capabilities to ensure an appropriate operation and maintenance of assets and the delivery of water at optimal service levels, through the: ‒ Reduction of current vacancies (over 81% at MEW and 67% in WEs) to required manpower levels according to recommended organization structures ‒ Continuous development of staff through proper training 4 M$ Management – Initiative Summary (3/9) # FinancingInitiative 1.7. Enforce planning and capital spending responsibilities and coordination among various players in the water sector with a clear delineation of authorities, where: ‒ MEW is responsible for setting policies, strategies and national planning ‒ CDR is in charge of planning and securing foreign financing of capital projects based on national plans ‒ WEs, LRA and other national entities develop their specific business plans and master plans according to policies and guidelines of the national plan Implementation time & Budget 11 12 13 14 15 16-20 9797 Technical Assistance Grants GOL 1.8. Involve stakeholder participation in the design and management of irrigation projects according to best practices, through: ‒ Creation of formal Water Users Associations (WUAs) to replace the different organizations currently in charge of O&M of irrigation schemes ‒ Definition of roles and responsibilities with respect to water management (including water quality) of the WUAs and other partners, in close cooperation with the intended beneficiaries ‒ Providing well-focused training related to the establishment and management of WUAs to all involved parties II.1 Cont’d 8 M$ Management – Initiative Summary (4/9) # FinancingInitiative II.1 Cont’d 1.9. Improve irrigation water demand management and cost recovery, and sustainability of irrigation schemes, through: ‒ Adjustment of irrigation water tariffs to cover O&M costs at a first stage, and periodically review and adjust water tariffs to reflect actual costs ‒ Basing water charges on volume of water used rather than area. Where metering is not feasible at this time, base water charges on a combination of a fixed charge to cover the basic services, and other charges which can be used as a proxy for the volume of water used, such as crop grown and/or hourly use of water Implementation time & Budget 11 12 13 14 15 16-20 9898 Technical Assistance Grants GOL II.2 2.1. Water Supply Tariff � Implement a new consumption-based tariff which includes fixed and variable (volumetric) charges for connections equipped with customer water meters, where: ‒ Current lump-sum tariff should be temporarily maintained for unmetered customers ‒ New tariff should be based on a proper cost analysis to cover, at a minimum, O&M cost as a first stage ‒ No tariff increase would be introduced before concrete improvements are brought to the water sector hourly use of water ‒ Carrying out periodic public awareness campaigns to inform policy makers and farmers of water shortages that could be faced in the next thirty years, and the need for water conservation for irrigation 3 M$ Management – Initiative Summary (5/9) # FinancingInitiative 2.2. Irrigation Tariff � Design and implement alternative irrigation tariff structures based on the specificities of existing and anticipated irrigation schemes, where: ‒ Volumetric metering would be the preferred solution wherever applicable 2.3. Wastewater Tariff � Apply a new wastewater tariff to customers connected to a sewer network and to a WWTP, where: ‒ New tariff should be based on a proper cost analysis and cover at a Technical Assistance Grants GOL Implementation time & Budget 11 12 13 14 15 16-20 1 M$ 9999 Technical Assistance Grants GOL 2.4. Provide support in developing the adequate legal institutional and regulatory setting to promote PSP, in a way to ensure the interests of the Government and the Lebanese population, and provide an attractive environment to the private sector, through: ‒ Finalizing legal texts, existing or under development and developing any additional legislation ‒ Ensuring needed approvals from relevant authorities 2.5. Ensure the readiness of the water sector from all aspects (e.g., institutional, organizational, financial, legal and regulatory) to guarantee the success of future PSP transactions (this initiative is addressed throughout this document) II.2 Cont’d ‒ New tariff should be based on a proper cost analysis and cover at a minimum O&M cost in an intermediate stage, with an introductory tariff initially ‒ Wastewater charges can be a percentage of the water bill GOL 1 M$ 1 1 M$ Management – Initiative Summary (6/9) # FinancingInitiative 3.2. Strengthen the legal framework in order to improve the performance of the delivery of water and wastewater services and support the implementation of the proposed strategic initiatives, including all legal aspects related to: ‒ Improvements to current organizational bylaws of WEs 3.1. Produce the final version of the draft Water Code and follow up the process for its effective implementation and enactment, through: ‒ The approval of the Ministry of Energy and Water ‒ Discussion and adoption by the Council of Ministers ‒ Transfer by decree to the Parliament for final approval and implementation GOL Implementation time & Budget 11 12 13 14 15 16-20 100100 GOL the proposed strategic initiatives, including all legal aspects related to: ‒ Improvements to current organizational bylaws of WEs ‒ Development and enactment of new organizational law for MEW’s restructuring ‒ Reevaluation of some provisions of law 221/2000 in view to strengthen the capacities of the management and to provide better performance to the end users ‒ Establishment of an efficient regulatory framework ‒ Setting of a transparent tariff structures ‒ Development of a wastewater collection and disposal regulations ‒ Improvement of irrigation regulation bylaws ‒ Providing adequate legal environment to promote private sector participation ‒ Development of performance based incentives (e.g., procurement framework, ) ‒ Ensuring normal access to potable water and sanitation including requirements for a proper implementation of operational and quality standards II.3 2M$ Management – Initiative Summary (7/9) # FinancingInitiative 4.1. Improve / refine climate change knowledge, and particularly its implications on the water sector and its vulnerability (i.e. refinement of model and figures): – Collect, analyze and develop trends for climatic data (precipitation and temperature) covering all Lebanon, to compare with historic data and detect possible deviations – Establish a unified database to include all water monitoring data and maintain it regularly updated – Develop and implement long-term river, spring and snow cover monitoring programs Technical Assistance Grants GOL Implementation time & Budget 11 12 13 14 15 16-20 5 M$ 101101 Technical Assistance Grants GOL 4.2. Improve water quality and protection of recharge zones: – Review and upgrade water quality standards – Take actions to protect against contaminants that may be found in drinking water and its sources – Design and implement a comprehensive integrated surface & groundwater quality monitoring network – Develop a implement a concept for protecting recharge zones – Centralize data and ensure communications with the consumers – Design and implement an integrated monitoring system for irrigation water quality II.4 programs – Update periodically water usage scenarios and thus water management options GOL 4 M$ Management – Initiative Summary (8/9) # FinancingInitiative 4.2. Develop flood mitigation arrangements: – Establish a flood plain zoning – Develop an integrated flood management plan – Assess the potential use of flood water for groundwater recharge – Support initiatives aiming at combating desertification 4.3. Improve wastewater quality: – Review and update water quality standards for wastewater discharge – Review and adopt draft standards for wastewater reuse in agriculture & sludge reuse Technical Assistance Grants GOL Implementation time & Budget 11 12 13 14 15 16-20 4 M$ 3 M$ 102102 Technical Assistance Grants GOL 4.5. Evaluate environmental consequences of the proposed NWSS (Strategic Environmental Assessment) to ensure they are : – fully included – addressed appropriately at the earliest possible stage of decision making on par with economic and social considerations II.4 Cont’d reuse – Implement pollution control programs 2 # FinancingInitiative 5.1. Conservation Initiatives on Domestic and Industrial Demand ‒ Installation of conservation kits (plumbing retrofits and high-efficiency toilets and showerheads, dual flush toilets, faucet aerators, kitchen aerators) ‒ High-efficiency cloth washers ‒ Complete retrofit of large water consumers, e.g., industrial, commercial ‒ Public outreach, awareness and education programs ‒ Household and establishment audits Management – Initiative Summary (9/9) Implementation time & Budget 11 12 13 14 15 16-20 103103 Technical Assistance/ Grants GOL II.5 5.2. Conservation Initiatives on Irrigation Water ‒ Adoption of high efficiency on-farm irrigation techniques, e.g., drip irrigation, sprinkler irrigation, overhead irrigation where applicable ‒ Coordination with Ministry of Agriculture for the adoption towards lower consumption crops ‒ Public outreach, awareness and farmer education programs ‒ Farm audits and optimization according to local conditions 8 M$