Reducing Non-Revenue Water in Ethiopia – and Beyond

Non-revenue water (NRW) is one of the largest sources of water losses in the world. A 2006 PPIAF study estimated nearly 49 billion cubic meters of NRW is lost each year – enough water to supply over 1.3 billion people. NRW is also a huge challenge to the financial viability of water utilities, especially in Sub-Saharan Africa. PPIAF is working with Addis Ababa Water and Sewerage Authority (AAWSA) to reduce NRW and improve its finances by helping AAWSA develop new standard procurement documents for NRW reduction Performance Based Contracts (PBC).

This is a critical moment, with AAWSA preparing its first bidding documents. So far, the activity has made significant progress. In March 2020, the prequalification evaluation report for the Performance-Based Water Loss Reduction and Management Contract was finalized. We expect the bidding process to start soon. 

PPIAFs work with AAWSA is part of the Developing Good Performance-Based Contract Practices in the Marketplace to Manage NRW program. Here, PPIAF is developing tools for PBC design and supporting several utilities across all regions, including Sub-Saharan Africa.

Proper NRW management allows governments to meet growing household, commercial, and industrial needs in water-constrained environments. Reducing NRW losses is, therefore, an effective measure for increasing people’s access to water and decreasing service interruptions.

PPIAF’s support capitalizes on the successes of recent NRW reduction projects that have been structured as PBCs to initiate a similar, yet more streamlined, project for AAWSA. The expectation is that AAWSA will launch a demonstration PBC that will expand their options and capacity to manage NRW, while laying the ground for similar activities being implemented across various water utilities in the sub-region.