NATIONAL NON-REVENUE

WATER MANAGEMENT

STRATEGIC FRAMEWORK
(2016 – 2018)

Prepared By:
The National Technical Task Force
(NTTF)
 NATIONAL NON-REVENUE
WATER MANAGEMENT

STRATEGIC FRAMEWORK
(2016 – 2018)

This Strategy Framework was done as one of the major outputs by the Non-Revenue Water National
Technical Task Force (NRW-NTTF) appointed by the Permanent Secretary of the Ministry of Local
Government and Housing (MLGH) to provide advice to Government and guide activities intended
for the reduction and management of NRW in the Zambian Water Supply and Sanitation Sector
towards the attainment of a more acceptable National annual average of 25% set by the National
Water and Sanitation council (NWASCO)

December, 2015.
 FOREWORD
Water plays a central role in the development of a nation as it cuts across many sectors. The water
sector in Zambia has been undergoing reforms since 1993 which has contributed to improved and
sustainable service delivery in water supply and sanitation. This has been achieved through the de-
velopment clear institutional arrangements and enactment of improved legal frameworks.

Though a number of achievements have been realized as a result of the improved commercial
orientation of the water supply and sanitation sub sector, Non-Revenue Water (NRW) still remains
a major challenge. The sector average NRW has been very high ranging from 48% - 51% since the
year 2001 when the sector started monitoring the indicator. This is uneconomical for the Commer-

stakeholders.

There are several reasons for this persistent huge NRW, ranging from the age of the infrastructure
to inadequate approaches in addressing NRW. The Government has realized the challenges the
sub-sector is facing and has set up the National Technical Task Force (NTTF) to develop a national
strategy for management of NRW. Previous efforts at addressing NRW have been isolated and proj-
ect-based activities with the level of intensity and commitment differing from one CU to the other.

This document provides the foundation upon which the sector will develop strategies and activities
that will reduce NRW to economic levels currently set at a national benchmark of 25%. The NTTF will
provide oversight across the subsector and periodically advise sector players of progress in imple-
mentation of the strategy. This will ensure there is coordination of activities as well as collaboration
among CUs making it possible to learn from each other.

Addressing NRW to the set benchmark will save the sector and the country huge amounts of money
and assist in attracting more investment into the sector. It will also contribute to achievement of the
goals set out in the national programmes such as vision 2030 and the Revised Sixth National Devel-
opment Plan.

diligently. The CUs will be at the centre of the implementation of this strategy as much of the activi-
ties will be undertaken by them. Government will provide the necessary conducive environment

Amos Malupenga
Permanent Secretary - Ministry of Local Government and Housing

4
 ExEcutivE SummaRy
The Government of the Republic of Zambia (GRZ) has over the years made efforts to reduce the
challenges of Non-Revenue Water (NRW) through the Commercial Utilities (CUs). NRW is that water
that has been produced and is lost before it reaches the customer or it is the difference between
the volume of water put into a water distribution system and the volume that is billed to customers.
High levels of NRW reflect huge volumes of water being lost through leaks, not being invoiced to
customers or both.

High NRW has been identified as one of the main challenges which affect the financial viability
of the CUs through lost revenues and increased operational costs. A high NRW level is normally a
surrogate for a poorly run water utility and reflects challenges in the governance, accountability,
technical and managerial skills necessary to provide reliable services to their population.

The Government has therefore, by way of constituting the Non-Revenue Water-National Technical
Task Force (NRW-NTTF) decided to act systematically and combat the problem across the water
sector. This will be done by ensuring that all CUs are guided and provided with tools and resources
necessary for the achievement of meaningful reduction of NRW. This will include: measurement of
NRW, analysis and implementation of recommended best practices, monitoring of activities and
evaluation of the effectiveness of the efforts applied.

The waste of resources resulting from the huge levels of NRW in Zambia is considerable. To illustrate
this point, this strategic framework begins with an overview of the problem and what it means in
terms of the foregone services which is shown in the graphical representation of the annual revenue
loss versus sector benchmark. In revenue terms for 2014 alone, the sector lost ZMW 653 million com-
pared to the benchmark of ZMW 320 million. The loss of ZMW 333 million is higher than the allocated
resources of ZMW 146 million in the national budget for the sector. With such huge water losses,
attraction of private sector investment to finance capital projects becomes a challenge because
the sector is deemed non- viable. Hence it is necessary that concerted efforts are put in place to
reduce this huge loss if the sector is to be viable.

This strategy is therefore meant to assist all CUs with measures that will help them to operate within
the acceptable Zambian benchmark for NRW of 25% as set by NWASCO by 2030. The Government
is expected to provide strategic leadership on NRW and guide all CUs and other stakeholders on
national activities if the strategy is to be effective which is in line with the National Urban Water Sup-
ply and Sanitation Programme (NUWSSP) one of whose components is to mobilise financing for the
sector activities from the national budget and other external financing partners.

The implementation strategy for National NRW will cover a period 2016 to 2030 to harmonise with
Governments vision of 2030. In this Strategic Framework, there are tables showing how this strategy
is going to work in terms of technical and financial performance showing the potential benefits of
NRW reduction.

It is often stated that NRW reduction activities have a quick payback. Although this can often be
true and is usually the case for the reduction of commercial losses, another important issue illus-
trated is that the management of physical leakages can require significant capital investment. The
reduction of physical losses presented in this Framework all included a significant budget for invest-
ment and field work.
Finally, despite its obvious potential, it is worthwhile to keep in mind that performance based service

5
contracting for NRW reduction is just one of the ingredients in the resolution of the many woes faced
by public water utilities in the country. Others pertain to more fundamental institutional operational
challenges. It does however have the potential to bring rapid improvements for a public water util-
ity in terms of both increased cash flow and availability of water to serve the unserviced population.

6
 acknOWlEDgEmEntS
The NRW National Task Force would like to thank The Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH and the Devolution Trust Fund (DTF) for sponsoring the various meet-
ings where discussions were held to come up with this document, the permanent secretary for the
appointments of the individual technocrats to the task force and the various institutions, NWASCO,
the University of Zambia and the various CUs for allowing the task force members time to meet and
contribute to this important National undertaking.

7
 abbREviatiOnS anD acROnymS
CHWSC– Chambeshi Water and Sewerage Company

CL – Commercial Losses

CUs- Commercial Utilities

DTF – Devolution Trust Fund

EWSC– Eastern Water and Sewerage Company

GIZ - Deutsche Gesellschaft für Internationale Zusammenarbeit

GRZ – Government of the Republic of Zambia

KWSC – Kafubu Water and Sewerage Company

LgWSC– Lukanga Water and Sewerage Company

LpWSC- Luapula Water and Sewerage Company

LWSC– Lusaka Water and Sewerage Company

MLGH – Ministry of Local Government and Housing

MWSC – Mulonga Water and Sewerage Company

NRW- Non Revenue Water

NWASCO- National Water and Sanitation Council

NWSC– Nkana Water and Sewerage Company

NWWSC– North Western Water and Sewerage Company

PL – Physical Losses

SDG – Sustainable Development Goal

SWSC– Southern Water and Sewerage Company

UAC- Unbilled Authorised Consumption

UFW – Unaccounted For Water

WWSC– Western Water and Sewerage Company

8
 tablE OF cOntEntS
Executive Summary 5
Acknowledgements 7
Abbreviations and Acronyms 8
1 Introduction 12
Background 12
Institutional Arrangement 15
Structure of NRW NTTF 15
Purpose of the Strategic framework 17
Development of the National NRW Management Strategic Framework 17
2 Situation Analysis 17
The Non-Revenue Water challenge 17
Stakeholder Analysis 18
Stakeholder Mapping 20
SWOT ANALYSIS 20
PESTLE Analysis 22
3 Linkage to National Strategies 23
Vision 2030 23
The NUWSSP 24
Capacity Development Strategy 24
Sustainable Development Goals 24
4 The Strategic Framework 24
Provision of Advice to Government 25
Development of strategic plans for reduction and management of NRW in CU operations 25
Development of Asset Management Framework 26
Development of Asset Management Framework 26
Assist the Sector in Human Capacity Building and Development 26
Assist the Sector in Monitoring and Evaluation of NRW 27
5 Implementation Strategy 28
Financing of plan 28
Human Resources 28
Risk Management 28

9
 Funding Risk 28
Human Resource Risk 29
Non-appreciation of Creation of NRW Units by Top Management 29
Monitoring and Evaluations 29
Existence of Organisational Structure Incorporating NRW Functions 29
Metering Policy 29
Determination of NRW According To ZABS Standards 29
Meter Readings 30
Tools for Analysing NRW 30
6 ANNEXES 30
Budget 30
FINANCIAL PLAN 30
Objective 1: Provision of Advice to Government 30
Objective 2: Development of strategic plans for reduction and management of NRW in CU
31
operations
Objective 3: Development of Asset Management Framework 32
Objective 4: Assist the Sector in Human Capacity Building and Development 33
Objective 5: Assist the Sector in Monitoring and Evaluation of NRW 34

10
11
1. intRODuctiOn
1.1. Background
Water supply and sanitation plays a pivotal role in the socio-economic development of a nation.
Fortunately Zambia is home to vast water resources of 41% share of the Zambezi River basin and 4 %
of the Congo River basin by area that could facilitate and spur national development.

Figure 1: Water resources

The Government of the Republic of Zambia (GRZ) has over the years been reforming the water sec-
tor with a view of achieving efficient and sustainable service delivery.

A number of strides have been made towards achieving the reform objectives such as;

„ The separation of water resource development and management function from water supply
and sanitation services provision,

12
„ Establishment of Commercial Utilities (CUs) to provide Water Supply and Sanitation (WSS) ser-
vices to the urban and peri-urban areas
„ The establishment of a WSS sector regulator - The National Water Supply and Sanitation Council
(NWASCO)
„ The establishment of the Department of Housing and Infrastructure Development (DHID) under
the Ministry of Local Government and Housing (MLGH) to provide policy direction and mobilisa-
tion of financial resources to the sector
„ Establishment of the Devolution Trust Fund (DTF) to assist CUs improve WSS services primarily for
the peri-urban and low-cost areas.
„ Development and implementation of the National Urban Water Supply and Sanitation Pro-
gramme whose main aim is to address the increased demand for adequate access to water
supply and sanitation services in urban and peri urban areas.

As results of these reforms, improvements that have been recorded include; increased service cov-
erage for water supply, increased revenue collection efficiencies and increased hours of supply,
among others.

However, one area of performance that has been a challenge is the reduction of Non-Revenue
Water (NRW) which has remained higher than acceptable levels. The high rate of NRW in the CUs
significantly contributes to poor financing of the sector as a result of lost revenues, exaggerated wa-
ter production to compensate for losses, poor service coverage and low hours of water availability
which impacts negatively on sustainability of service delivery. With the demand for water services
ever increasing, the high NRW puts a lot of stress on the existing Water production facilities.

Whilst there have been isolated efforts at addressing NRW, this has not resulted in significant im-
provements; NRW has remained fluctuating almost within the same level since 2001 (51%) when the
monitoring of the indicator started. The reported national average for 2014 was 51%, with a range
of 25% to 70% (NWASCO Sector Report, 2014). The detailed progression over the years is shown in
Table 1 below.

Table 1: Urban and Peri-Urban WSS NRW Trends over the years; 2001 to 2014

Sector Annual
Sector Annual Sector Annual Sector Annual
Year NRW Average NRW Range Revenue Lost Benchmark
(%) (%) (ZMW)
(ZMW)

2001/ 2002 51 25 - 67 - -

2002/2003

2002/2003

2003/2004 50 32 - 60 114,546,000 57,273,000.00

13
 Sector Annual
Sector Annual Sector Annual Sector Annual
Year NRW Average NRW Range Revenue Lost Benchmark
(%) (%) (ZMW)
(ZMW)

2004/2005 49 29 - 60 136,469,000 69,627,040.82

2005/2006 48 26 - 60 144,264,000 75,137,500.00

2006/2007 47 31 - 58 186,766,000 99,343,617.02

2007/2008 45 30 - 53 201,262,000 111,812,222.22

2008/2009 45 31 - 52 198,570,000 110,316,666.67

2009/ 2010 44 34 - 62 285,563,000 162,251,704.55

2010/ 2011 46 34 - 67 338,278,000 183,846,739.13

2011/ 2012 45 30 - 63 375,519,000 208,621,666.67

2013/13 42 39 - 61 399,180,691 237,607,554.17

2013 48 28 - 64 574,735,856 299,341,591.67

2014 51 25 - 70 653,252,825 320,221,973.04

Totals 25 - 70

Note: Since the year 2000, when most CUs were formed, NWASCO was monitoring and reporting
the levels of water losses using the, ‘Unaccounted for Water’ (UfW) with the benchmark set at 25%.
However, in conforming to the current global practice, NWASCO adopted the term ‘Non-Revenue
Water’ NRW since the reporting period 2012/13 to also take care of the Unbilled Authorised Con-
sumptions (UAC) that is not necessarily unaccounted for.

In revenue terms, for 2014 alone, the sector lost ZMW 653 million compared to the sector bench-
mark of ZMW 320 Million. The loss of ZMW 333 Million is higher than the resources (ZMW146 Million)
allocated in the national budget for the sector. With such a huge water-loss, attraction of private
sector investment to finance capital projects becomes a challenge because the sector is deemed
non-viable. Hence it is necessary that concerted efforts are put in place to reduce this huge loss if
the sector is to be sustainable.

This strategy is meant to assist all CUs with measures that will help them to operate within the ac-
ceptable Zambian benchmark for NRW of 25% by 2030 as highlighted in the National Water Supply
and Sanitation Council (NWASCO) NRW guidelines which is in line with the national development
plans for the period. It is an output of the NRW National Technical Task Force.

14
Figure 2: Graphical representation of Annual Revenue loss Vs Sector Benchmark

1.2. InstItutIonal arrangement

The NRW National Technical Task Force (NRW NTTF) comprises of representations from CUs, MLGH,
NWASCO, DTF, Universities and other technocrats from within the sector appointed by the Perma-
nent Secretary of the Ministry of Local Government (MLGH). The NRW NTTF may, as and when re-
quired, co-opt expert individuals/institutions for specific assignments on the team.

The team reports to the CUs’ CEOs Forum who then report to the Permanent Secretary of MLGH. The
Ministry is responsible for modalities of the operations of the NRW NTTF. The institutional arrangement
is as illustrated in Figure 3 below.

1.3. structure of nrW nttf

The NRW NTTF is headed by a Chairperson nominated from within the team and is assisted by a vice
chairperson. The team is further divided into two sub-groups namely Physical Losses (PL) and Com-
mercial Losses (CL) subcommittees. There is a secretariat that has membership nominated from
within the group, responsible for organizing and coordinating meetings among others.
The organogram for the NTTF is as illustrated in Figure 3 below.

15
 Permanent Secretary for Ministry
of Local Government & Housing

CUs CEO Forum

Cooperating Water
Partners NRW NTTF
Utilities

Advice & Reporting Funding Reporting Advice

Figure
Figure 3 : Institution
3 : Institution arrangement
arrangement forNTTF
for the NRW- the NRW- NTTF
The NRW NTTF is headed by a Chairperson nominated from within the team and is assisted by a vice
1.3. Structure of NRW NTTF
chairperson. The team is further divided into two sub-groups namely Physical Losses (PL) and Com-
The NRW
mercial LossesNTTF is headed by aThere
(CL) subcommittees. Chairperson nominated
is a secretariat that from within the team
has membership and is from
nominated
assisted
within by a vice
the group, chairperson.
responsible The team
for organizing andis coordinating
further divided into twoamong
meetings sub-groups
others.namely
Physical Losses (PL) and Commercial Losses (CL) subcommittees. There is a
The organogram for the NTTF is as illustrated in Figure 3 below.
secretariat that has membership nominated from within the group, responsible for
organizing and coordinating meetings among others.
The organogram for the NTTF is as illustrated in Figure 3 below.
Chairperson

Vice Chairperson

Commercial
Physical Losses
Losses Secretariat
Committee
Committee

Figure
Figure 4 : 4Organogram
: Organogram
forfor
thethe NRW
NRW - NTTF
- NTTF

Page 5 of 30
1.4. Purpose of the Strategic framework
16This strategy seeks to address the challenge of NRW in the CUs at national level
through the development of common best practices. Being the first strategic framework,
the focus of the plan is on developing and putting in place activities necessary for the
measurement, reduction and management of NRW towards the national benchmark of
1.4. PurPose of the strategIc frameWork
This strategy seeks to address the challenge of NRW in the CUs at national level through the devel-
opment of common best practices. Being the first strategic framework, the focus of the plan is on
developing and putting in place activities necessary for the measurement, reduction and manage-
ment of NRW towards the national benchmark of 25% set by NWASCO. The strategy also aims at
engaging all stakeholders for an integrated approach.

The following are, therefore, the objectives of the strategy:

„ Strategic Objective 1: Advise Government on national activities relevant to reduction and man-
agement of NRW
„ Strategic Objective 2: Assist CUs to develop strategic plans for measurement , reduction and
management of NRW
„ Strategic Objective 3: Assist CUs in developing asset management functions aimed at measur-
ing, reducing and managing NRW
„ Strategic Objective 4: Assist CUs and other stakeholders in human capacity building and devel-
opment for measurement ,reduction and management of NRW
„ Strategic Objective 5: Assist the sector in monitoring and evaluation of NRW activities and dis-
semination of knowledge.

1.5. develoPment of the natIonal nrW management strategIc frameWork

Following the constitution of the NRW – NTTF, among the first tasks for the members was the develop-
ment of the strategic framework to guide the operations of the task force.
The process began by the identification of the challenges that the CUs were facing in addressing
NRW and then developing strategies around the same. This process was followed by consultative
meetings with various stakeholders in order to incorporate suggestions to the Zero draft of the strat-
egy.

With this inclusive approach in the development process, the strategy is hoped to provide a good
basis for progression towards meeting more economical levels of NRW and eventually the national
target for NRW of 25% set by NWASCO.

2 SituatiOn analySiS
2.1. the non-revenue Water challenge
The 2014 national annual volume of NRW in all water utility companies in Zambia was about 170 mil-
lion m3 of treated water lost through Physical Leakages (PL) from distribution networks, Commercial
Losses (CL) and Unbilled Authorized Consumption (UAC). As shown in section 1.1, the sector annual
NRW average has remained fluctuating almost within the same range since 2001 (42 - 51%).
Saving just half of this volume of water would supply water to an additional estimated 3 million
people without further capital investment into production. In revenue terms, the sector lost ZMW

17
653 million compared to the sector benchmark of ZMW 320 Million giving ZMW 333 Million avoidable
loss of revenue which could have been used to enhance sustainability of service provision.

The benefits of reducing NRW to the set sector benchmark include the following:

„ Water utilities would gain access to self-generated cash flow useful in improvement of service
provision.
„ Improved water supply service coverage as the extra water would now be available to new
customers without any need for production infrastructure expansion reducing the stress on the
environment.
„ Improved hours of supply resulting in customer satisfaction
„ Improved water quality through the reduction of leakages
„ Reduced disease burden due to improved Sanitation
„ Improved performance efficiencies by water utilities from the extra financial resources
„ Increased confidence from the private sector and other project financiers
„ Reducing illegal connections supports greater fairness among water consumers by spreading
the costs across a broader customer base.
„ More efficient and sustainable water utilities leading to improved customer service and satisfac-
tion
„ Reduced staff turnover due to improved conditions of service in the sector
„ New business opportunities creating more jobs
„ Reduced expenditure on energy, chemicals, staff etc.

In Zambia, the CUs are owned by Local Authorities (LAs) though the WSS Act No 28 of 1997 provides
for up to 49% private shareholding. These expect CUs to perform through Performance Contracts
under which one of the key performance indicators is the reduction of NRW. This strategy will raise
the profile of NRW among issues to be prioritized.

This NRW strategic framework, therefore, serves to assist CUs to better understand possible practical
solutions to address NRW, a key performance indicator for CUs’ operations. It provides the informa-
tion that CUs in Zambia need when discussing NRW-related issues with their staff.

2.2. stakeholder analysIs

In the development of the Strategy, the key stakeholders identified to have an impact on the NRW
national strategy and gain their support to influence the establishment of goals and targets are the
following:

18
1. Policy Makers:
These expect the Commercial Utilities to operate autonomously and sustainably. They would be
cardinal in supporting the work of the NRW – NTTF and they include the following

„ Ministry of Local Government and Housing

„ Ministry of Mines Energy and Water Development
„ Ministry of Justice
„ Ministry of Health
„ Ministry of Finance
„ Local Authorities
2. Service Providers:

These will be the actual implementers of the NRW national strategy and they will be needed to
have serious buy in to get their corporation to the guidance provided. These include;
„ Commercial Utility Companies
„ Private Schemes
„ Water Trusts
3. Consumers
High NRW affects the level and cost of service provided to consumers. The consumers therefore
will need to support the works of the NRW NTTF in reporting non-conformance to recommenda-
tions in the strategy by the various CUs
„ Water Watch Groups (WWGS)
„ General Public
„ Private sector

4. Regulators
Regulators control activities by CUs and may, in one way or the other, affect the rate of achieve-
ment of the intended results. Therefore, there will be a lot of corporation required from them.
„ National Water and Sanitation Council (NWASCO)
„ Zambia Bureau of Standards (ZABS)
„ Zambia Environmental Management Agency (ZEMA)
„ Consumer Competition and Protection Commission (CCPC)
„ Anti-Corruption Commission (ACC)
„ Zambia Development Agency (ZDA)
„ Zambia Weights and Measures Agency (ZW & MA)
„ Zambia Public Procurement Authority (ZPPA)
„ Water Resources Management Authority (WARMA)

5. Cooperating Partners & Financiers

These shall be instrumental in the provision of technical and financial support necessary for the
NRW-NTTF to achieve its objectives. There will be need to provide them with correct and up to
date information.

19
„ Danish International Cooperation
„ Millennium Challenge Corporation (MCC)
„ German International Cooperation (BMZ)
„ International Development Banks
„ Japanese International Cooperation Agency (JICA)
„ Irish Aid
„ Devolution Trust Fund (DTF)
„ Sustainable Urban Water and Sanitation in Africa (SUWASA)
6. Civil Society/NGOs
These have very strong links with consumers and the marginalized communities for whose rights
they exist. Having their buy in into the NRW- NTTF activities would prove very useful. It would impor-
tant to inform them on the benefits of the strategy for wooing their support.
„ Transparency International Zambia (TIZ)
„ Jesuit Centre for Theological Reflection (JCTR)
„ Civil Society for Poverty Reduction (CSPR)
„ Water Aid
„ Care International
„ World Vision
„ Water and Sanitation for Urban Poor

7. Others
These would include inter alia, law enforcement agencies, knowledge resource institutions and
public information resource centres that would be cardinal in the dissemination of knowledge
and information. The NRW-NTTF would do well to work very closely with such institutions.
„ Training and Research Institutions
„ Media
„ Central Statistics Office
„ The Water and Sanitation Association of Zambia (WASAZA)
„ Ministry of home Affairs

2.3. stakeholder maPPIng

A summary of the stakeholder mapping and the perceived impact of the stakeholders on the NRW
national Strategy shown below:

From the analysis below, it can be noted that the groups of CUs need to be managed cautiously
as they are vital to the successful implementation of activities. Consumers need to be monitored
because they can affect the implementation of the strategy. The regulators and Cooperating Part-
ners (CPs) need the necessary information in order for them to be strong support advocates.

2.4. sWot analysIs

This SWOT analysis is an assessment of the strengths, weaknesses, opportunities and threats that are
in the National Non revenue Water reduction efforts.

20
 P
Power

o
w
e
r

High
Low High

Interest

STRENGTHS WEAKNESSES
From the above analysis,
„ Established commercial utilities it can be noted that
„ the groups of CUs need to be managed -
cautiously
„ Availability as Regulator
of the they are vital to the successful sionsimplementation
in the WSS Act of activities. Consumers
need to beofmonitored
„ Establishment Provincialbecause
DHID they can affect
„ Old the water
implementation of the
infrastructure strategy.
National wideThe
„ Availability of Baseline Data
regulators and Cooperating Partners (CPs) need the necessary information in order stream-
„ Absence of the Non-Revenue Water for
„ Involvement
them to be of strong
consumers in regulation
support advocates. lined structure in commercial utilities
„ Good will from cooperating Partners „ Lack of NRW policies and guidelines
„ Availability of capacity development strat- „ Lack of National Standards
egy
2.4. SWOT ANALYSIS „ -
This SWOT analysis is an assessment
„ Availability of the National Urban Water sup- of the strengths, weaknesses, opportunities and
threats
ply and that areprogramme
Sanitation in the National Non revenue Water reduction efforts.
consultancies)
„ GoodSTRENGTHS
will from some customers „ Misplaced
WEAKNESSES priorities by CUs
Established commercial utilities „ Limited commercial orientation bycompelling
Insufficient enforcement/ CUs
„ Low metering ratio
Availability of the Regulator provisions in the WSS Act
„ Lack of common tools for NRW analysis
Establishment of Provincial DHID Old water infrastructure National wide
Availability of Baseline Data Absence of the Non-Revenue Water
Involvement of consumers in regulation streamlined structure in commercial
Good will from cooperating Partners utilities
Availability of capacity development Lack of NRW policies and guidelines

Page 11 of 30

21
OPPORTUNITIES
„ To reduce the high Non-Revenue Water
„ Availability of the national budget line for
programme management
„ Rehabilitation of old infrastructure and con-
struction of new infrastructure
„ Review and strengthen WSS Act
„ Review and strengthen CU corporate gover-
nance structure
„ To strengthen and broaden professional ca-
pacity
„ Creation of new districts requiring expansion
of WSS services
THREATS
„ Failure to uphold national policies by some
stakeholders
„ Existence of the fixed Tariff rate
„ Weak corporate governance practices in
the sector
„ Lack of good will from some Customers
„ Inadequate interpretation of the provisions
of the WSS Act by law enforcers and others
stakeholders
„ Inadequate financing for the sector

2.5. Pestle analysIs

The external environment has been analyzed in terms of the political, economic, social-cultural,
technological, legal and environment aspects.

Political
„ There is an enabling political environment
„ The Government has committed to prioritize WSS and there is a strong focus on implementing
the decentralization policy.

economic
„ The macroeconomic environment is favorable
„ There is a potential threat of yet another global financial crisis that may result in an increase in
the cost of borrowing as well as doing business. The prices of inputs into potable water produc-
tion and wastewater treatment may be affected. The financial crisis may result in a gap in fund-
ing from cooperating partners.
„
social-cultural
„ The poor payment culture that previously characterized most sections of our communities is
slowly dying. However, communities demonstrate little care for the environment, water theft
and vandalism of WSS infrastructure is rampant.
„ Poor water use practices by consumers, encroachment and livelihood activities around WSS
facilities have continued to affect strategic water zones. This has affected the quality and avail-
ability of water.

technological

22
„ There is an adaptation of new technologies for WSS service delivery such as pre-paid meters for
water supply and advanced NRW management tools.
„ There is still a need to adopt technologies that will reduce the cost of service delivery such as
installing storage facilities, pressure regulating valves and modern methods for reducing water
losses.

legal
„ The legal environment around the water sector is well defined with institutional roles clearly stipu-
lated; though a few areas still have to be addressed in terms of mandate in particular aspects
such as water quality, illegal connections, vandalism etc.
„ Some legislation which have bearing on the sector have been introduced or revised in the re-
cent past. The Water Resources Management Act was promulgated in 2011 and it has led to
the formation and operationalization of the Water Resources Management Authority. The Envi-
ronmental Management Act was passed in 2011 to strengthen provisions related to pollution of
water bodies. However, the Water Supply and Sanitation Act of 1997 has been revised compre-
hensively and the final draft is ready for high level consideration and subsequent enactment.
„ The Constitution has been under revision and the current draft recognizes water as a human
right which will need to be incorporated if adopted.

environmental
„ The impacts of global warming and climate change on the country’s water resources are yet
to be fully assessed. The water sector has generally paid little attention to the subject. There is
urgent need to integrate/ mainstream climate change and global warming in water and begin
to formulate adaptive rather than reactive policies. Therefore, conservation of water resources
by reducing wastage in the water treatment facilities and pipe network systems becomes of
paramount importance.

3. linkagE tO natiOnal StRatEgiES

This NRW strategy will operate in tandem with other strategies which focus on some of the issues
such as financing that are identified in this NRW strategy as affecting the capacity within the sector
to operate effectively. It is therefore expected that in implementing the NRW strategy, there will be
coordination across the various stakeholders with other strategies such as the Capacity Develop-
ment Strategy and the Urban Basket financing Mechanism. The NRW strategy is aligned to the Vision
2030 and the National Urban Water Supply and Sanitation Programme.

3.1. vIsIon 2030

Zambia has a focus of becoming “a prosperous Middle Income Nation by 2030”. Clean and Safe
water supply and sanitation for all by 2030 is a sector vision for social investment and human devel-
opment. The targets under this sector are:

i. Improved access to appropriate, environmentally friendly sanitation by all Zambians;

ii. Attainment of 80 percent access to clean water supply by 2015 and 100 percent by 2030;
iii. Attainment of 68 percent access to sanitation by 2015 and 90 percent by 2030; and

23
iv. Fully integrated and sustainable water resource management.
The NRW strategy therefore fits in at the point where the reduced Real losses will translate in to im-
proved coverage, increased supply hours and eventually equitable supply as per demands of the
Vision 2030.

3.2. the nuWssP

The National Urban Water Supply and Sanitation Programme Capacity Development (NUWSSP CD)
Components notes that “It is generally recognized that the capacity to plan and implement pro-
grammes and projects in the sector, as in other sectors, is weak and needs to be addressed. Ca-
pacity constraints are experienced at central government, provincial and district levels”.

The NUWSSP CD outputs as contained in the NUWSSP CD are expected to be:

v. Improved operational capability of Service Providers to provide water supply and

vi. sanitations services;
vii. Improved capability of Government Institutions to support the Service Providers;
viii. Improved capability of Educational Institutions to offer training and education required by the
WSS sector; and
ix. Improved capability of the Private Sector and NGOs to give service to the WSS sector

3.3. caPacIty develoPment strategy

The component objectives of the capacity development strategy are:

i. To improve the quality, efficiency, cost-effectiveness and delivery of urban water supply and
sanitation services
ii. To develop the capacity required for the implementation of the NUWSSP.

This implies that the NRW Strategy will be implemented through the NUWSSP which captures the
budget estimates for actual activities of capacity development for both Human resource and in-
frastructure.

3.4. sustaInaBle develoPment goals

The NRW NTTF will strive to align its focus and activities with the Sustainable Development Goal (SDG)
number 6 to ensure that Zambia by 2030 achieves universal and equitable access to safe and af-
fordable drinking water for all through reduction of water loss. Our activities will also champion and
promote water-use efficiency in the water sector and ensure sustainable withdrawals and supply of
freshwater to address water scarcity and substantially reduce the number of people suffering from
water scarcity as prescribed by the SDGs.

4. thE StRatEgic FRamEWORk

This section is intended to highlight the activities to be undertaken by the NRW-NTTF found relevant
to the reduction and management of NRW in order to achieve the set objectives.

24
4.1. ProvIsIon of advIce to government
The Government of the Republic of Zambia (GRZ) is expected to provide strategic leadership on
NRW and guide all CUs and other stakeholders on national activities if the strategy should be effec-
tive. The NRW-NTTF will identify and recommend “Best Management Practices- BMPs required to be
implemented by all stakeholders in a quest to reduce NRW towards the targeted National Average
of 25%.

No Action Plans Indicator Time Resp.

1 Develop standardized KPIs to be incorpo- Standardized KPIs 2016 NRW-NTTF
rated in the CUs strategic plans
2 Facilitate for the incorporation of NRW NTTF CUs engaged. 2016 NRW-NTTF
recommendations on management of NRW
into CUs’ strategic plans
Engage CUs and discuss KPIs for adoption.

Adoption of KPIs by commercial utilities CUs strategic 2016

plans aligned
3 Produce quarterly reports Template devel- 2016-2018 NRW- NTTF
Develop and disseminate template for NRW oped and dissemi-
reporting to all CUs. nated.
Analyze and compile quarterly report to
CEOs forum Reports presented.

Present papers at the ZAWAFE Forum and Paper presentation 2016-2018 NRW- NTTF
other national or international fora

4.2. develoPment of strategIc Plans for reductIon and management of

nrW In cu oPeratIons
No Actions Indicator Time Resp.
1 Recommend a CU functional Board approved structure 2016 NRW-NTTF
structure within their organiza-
tional structure for managing
NRW
2 Recommend developed func- Approved functional descriptions 2016 NRW-NTTF
tional descriptions for NRW units
in CUs
3 Facilitate development of Job Job descriptions developed 2016 NRW-NTTF
Descriptions for NRW staff
4 Resource mobilization to ensure Resources Mobilized 2016 MLGH
all system input volume metered
in all CUs

25
No Actions Indicator Time Resp.
5 Resource mobilization to ensure All customers metered (insert annual 2 0 1 6 MLGH
for metering of all properties/ targets) –
customers all CUs 2018
6 Identify tools to conduct cat- Tools in place 2016 NRW-NTTF
egorization (Commercial/physi-
cal Losses)
7 Develop a National Meter man- Policy in place 2016
agement policy
8 Document NRW management Good practices document 2016
good practices and deploy- -2017
ment of the same in the CUs

4.3. develoPment of asset management frameWork

The main focus is the development of a framework for improvement of Asset Management in CUs
in the implementation of NRW management. This will help in development of activities to have CUs
employ functional asset management systems.

No Actions Indicator Time Resp.

1 Actions Establish a centralized Indicator 2016 NRW-NTTF
data base for all (CUs) water
networks in the country.
2 Recommend Consultancy for Updated maps 2016 NRW-NTTF
proper mapping, design and
updating of all water and sewer
networks in all CUs
3 Recommend tools for asset Tools 2016 NRW-NTTF
management such as GIS.
4 Facilitate for creation, updating Updated Asset registers 2016 NRW-NTTF
and maintenance of Asset regis-
ters at all CUs

4.4. assIst the sector In human caPacIty BuIldIng and develoPment

The main focus will be to assist the WSS sector to improve human and institutional capacity for NRW
management that will include the recommendations to training institutions on their school curricula.

No Action Plans Indicator Time Resp.

1 Align the NRW strategy National NRW Strategy de- 2016 NRW-NTTF
to the National capacity veloped
development strategy (Ar-
ticle 2.3.5 of the Capacity
Development Strategy)

26
No Action Plans Indicator Time Resp.
2 Recommend engagement Capacity needs document 2016 NRW-NTTF
of a consultant to under-
take human and institution-
al capacity needs assess-
ment.
Resources (human, techni-
cal and financial)

3 Facilitate for NRW NTTF All members of the NRW NTTF 2016 NRW-NTTF
members to be trained on are trained on NRW man-
NRW management ( TOT agement
basis)
4 Develop standardized NRW NRW training modules de- 2016 NRW-NTTF
training modules veloped
5 Facilitate yearly structured Training conducted for all 2016-2018 NRW-NTTF
training for CU staff CUs
6 Monitor and evaluate train- Monitoring and evaluation 2016-2018 NRW-NTTF
ings conducted reports.
6 Engage consultant to Job and functional descrip- 2016 NRW-NTTF
improve the NRW manage- tion for NRW in place.
ment structure within the
CU.
7 Establish a benchmarking Benchmarking system in 2016 NRW-NTTF
system on NRW among CUs place (NRW Monitoring tool
software )
8 Facilitate peer reviews for Number of Peer Reviews 2016-2018 NTTF
NRW. conducted per year.

4.5. assIst the sector In monItorIng and evaluatIon of nrW

The main focus will be to produce tools for monitoring the implementation of planned NRW activi-
ties and evaluation of improvements in the national annual average NRW over time and dissemina-
tion of information to all stakeholders.

No Action Plans Indicator Time Resp.

1 Recommend engagement Revised and har- 2016 NRW-NTTF
of a consultant to review monized moni-
and harmonize sector NRW toring tool
monitoring tools.
2 Recommend to the WSS Highest rating 2016 NRW-NTTF
regulator to raise the NRW scale
indicator on the national
benchmarking sector report.
(NWASCO sector report.)

27
No Action Plans Indicator Time Resp.
3 Review the implementation Annual Monitor- 2016-2018 NRW-NTTF
of the strategies and the ing reports
rate of attainment of target-
ed KPIs.
4 Recommend incentives for Recommenda- 2016-2018 NRW-NTTF
best performing CU in imple- tions made to
menting the recommended MLGH
NRW Strategy

5. implEmEntatiOn StRatEgy
The National NRW strategy will cover the period 2016 to 2030 to harmonise with Government’s Vision
2030 but fragmented into Short Term (2016 – 2018), Medium Term (2019 - 2024) and Long Term (2025
- 2030) strategic activities of reducing NRW. This strategic framework will cover the short term and
will act as a precursor to other long term plans that will follow. The implementation of this framework
will focus on building capacities in the CUs, providing strategic leadership on NRW and advising the
government and the sector.

5.1. fInancIng of Plan

Government has developed the NUWSSP one of whose components is to mobilise financing for the
sector activities from the national budget and other external cooperating partners. On an annual
basis the financing for NRW would be provided for in the national budget. The CUs shall also make
provisions within their annual budgets and workplans. NRW activities pertaining to regulation shall
be planned and budgeted for by NWASCO.

5.2. human resources

In order to successfully implement the recommendations of this strategy, all CUs shall set up NRW
structures that will specifically focus on NRW management. The high levels of NRW in the sector calls
for dedicated operational units in the CUs to address on a day to day the issues of NRW as this will
improve the financial viability and operational performance of the CUs.
The NUWSSP shall provide technical assistance to develop and build capacity in the CUs to effec-
tively and efficiently manage NRW.

5.3. rIsk management

The risks that might impede successful implementation of the strategy have been identified and are
listed below together with mitigation strategies.

5.3.1. funding risk

Risk 1: Low and irregular disbursements of funds from Government to the sector could affect imple-
mentation of the activities in the SP.
Risk Mitigation: CUs shall ensure work plans and budget requirements are submitted to MoF through

28
MLGH before commencement of national budgeting process. There should be timely and regular
engagement with MoF on releases of budgeted funds.

Risk 2: None funding and implementation of planned activities by the CUs due to low appreciation
of NRW
Risk Mitigation: Solicit support from CEO of CUs and require regular/quarterly reporting by CUs of
NRW activities and costs/expenditures to NRW NTTF, MLGH and NWASCO.

5.3.2. human resource risk

Risk 1: High staff turnover of trained and skilled staff leave the sector.
Risk Mitigation: develop and implement staff retention policies in CUs
Risk 2: Poor staff work culture towards NRW
Risk Mitigation: mainstream NRW indicator in all staff performance contracts

5.3.3. non-appreciation of creation of nrW units by top management

Risk: CUs do not create NRW Units because of lack appreciation by top management
Risk Mitigation: NRW Units to be enshrined in national water policies as well as in CU policies.

5.4. monItorIng and evaluatIons

Monitoring of NRW activities shall be carried out by the NRW NTTF on a quarterly basis. This shall be
done by way of reviewing salient reports from CUs and/ or from consultants including site visits to
CUs. A mid-term evaluation shall be conducted in addition to the final evaluation.

5.5. exIstence of organIsatIonal structure IncorPoratIng nrW

functIons
Each CU shall be expected to incorporate an NRW section or department. The NRW section or de-
partment shall be expected to have employees with a certain minimum level of qualifications. The
composition and size of the NRW section or department shall depend on the CU.

5.6. meterIng PolIcy

CUs shall be expected to have deliberate metering policies that should ensure universal metering
of all connections. The metering policy should also address a rigorous meter selection process to
determine the best suited meter for the region vis a vis the type of water and social environment. A
deliberate Meter Management guideline is also expected of each CU.

5.7. determInatIon of nrW accordIng to ZaBs standards

The ZABS standard on NRW was determined after considering the International Water Association
(IWA) recommendations when determining NRW and its components. All CUs shall be expected to
follow the steps as per ZABS standards when determining their NRW. All metered authorised billed
volumes shall be extracted from the CU’s billing software while un-metered billed volumes shall be
determined as per ZABS Standard on NRW.

29
5.8. meter readIngs
The CUs shall be expected to consistently take meter readings both for commercial purposes (bill-
ing) as well as for technical purposes (Water Production and District Meter flow measurements to
determine NRW etc). It shall be required of CUs to keep source records for all meter reading in a
proper and traceable manner. The CUs shall be required to send salient reports on NRW activities to
the NTF Secretariat on a monthly basis.

Each CU shall be required to send samples of meters from all new consignments for testing by a pre-
scribed testing Authority (Zambia Weights and Measures Authority) or Test Bench to validate meter
accuracy. CUs shall also be required to send samples from the population of installed water meters
in operations to be tested at prescribed annual interval times to help determine meter accuracy.
This shall also help CUs to determine commercial losses (Meter inaccuracies) and also help them
optimise their meter replacement guidelines.

5.9. tools for analysIng nrW

All CUs shall be required to use a prescribed tool to help analyse NRW in line with IWA/ZABS stan-
dards. The University of Zambia develop a tool for analysing NRW and the NTF recommends that this
shall be used by all CUs as a minimum tool to analyse their NRW.

CUs will be allowed liberty to choose billing software of their choice, but some specifications will be
provided on some outputs from the billing software to support the data requirements of the NRW
monitoring tool. The billing softwares’ may be modular and tailored according to the size and ac-
tivities of the various CUs but the outputs shall be required to be consistent with standardized data
formats. This would help ease data acquisition and data analysis which would in turn enhance the
reliability and accuracy of the NRW figures for all CUs.

30
annExES
6. Budget
This budget pertain s to the finances required for the NRW NTTF activities and are not the actual
resources required for the implementation activities by utilities. Those budgets are allowed for in the
NUWSSP.

fInancIal Plan

6.1. oBjectIve 1: ProvIsIon of advIce to government

No Action Plans Budget Item 2016 2017 2018 Total Budget
(ZMW)
1 Develop standard- 3 Day Meeting 100,000 120,000
ized KPIs to be incor- Engage CUs and discuss 20,000
porated in the CUs KPIs for adoption.
strategic plans
2 Facilitate for the in- Undertake diagnostic 140,000 260,000
corporation of NRW visits to CUs
NTTF recommenda- 100,000
tions on manage- 3 Day Meeting for de-
ment of NRW into veloping recommenda-
CUs’ strategic plans tions. 20,000

Dissemination of the rec-

ommendations

3 Produce quarterly 2 Day Meeting to de- 70,000 80, 000 80, 000 250,000
reports velop quarterly reporting
Develop and dis- template for the CUs and
seminate template also for the NRW NTTF 20, 000
for NRW reporting to
all CUs. Participate at the CEOs
forum

Analyze and com-

pile quarterly report
to CEOs forum.

4 Present papers at Paper presentation 10, 000 10, 000 10, 000 240, 000
the ZAWAFE Forum Local 70, 000 70, 000 70, 000
and other national International
or international fora

6.2. oBjectIve 2: develoPment of strategIc Plans for reductIon and

management of nrW In cu oPeratIons

31
No Action Plans Budget Item 2016 2017 2018 Total Budget
(ZMW)
1 Recommend a CU 3 Day meeting to devel- 100,000 120,000
functional structure op a CU NRW functional
within their organi- structure, functional de-
2 zational structure for scriptions as well as Job
managing NRW descriptions developed
3 20, 000
Recommend de- Engage CUs to integrate
veloped functional the NRW functional
descriptions for NRW structure in their organi-
units in CUs zational structure

Facilitate develop-
ment of Job De-
scriptions for NRW
staff

4 Resource mobiliza- 3 Day meeting to de- 20, 000 20,000 20,000 70,000
tion to ensure all velop Development of
system input volume strategy to engage CPs
metered in all CUs
5 Engagement of identi- 10,000
fied CPs
Resource mobiliza-
tion to ensure for
metering of all prop-
erties/customers all
CUs

6 Identify tools to con- Commission consultancy 100,000 120,000

duct categorization to develop tools
(Commercial/physi- 3 day meeting to devel-
cal Losses) op ToRs and solicitation
document. Advertise,
evaluate and award
contract
20,000
Contract management.

7 Develop a National 3 day meeting to devel- 100, 000 120,000

Meter management op a policy framework
policy for adoption.
20,000
Circulate framework to
CUs

32
 No Action Plans Budget Item 2016 2017 2018 Total Budget
(ZMW)
8 Document NRW 3 day meeting to de- 100, 100, 000
management good velop good practices 000
practices and document
deployment of the
same in the CUs
Subtotal 530, 000

6.3. oBjectIve 3: develoPment of asset management frameWork

No Action Plans Budget Item 2016 2017 2018 Total Budget

(ZMW)
1 Recommend Con- Develop TORs for Con- 100,000 400,000
sultancy for proper sultancy 100,000
mapping, design
and updating of all Engage consultant to 200,000
water and sewer develop database
networks in all CUs
Establish a central- Train CUs on use of the
ized data base Database
for all (CUs) water
networks in the
country.
2 Recommend tools Train CUs on asset 200,000 200,000
for asset manage- management in GIS
ment such as GIS. specifically on crea-
tion, updating and
maintenance of Asset
registers at all CUs
Subtotal 600,000

6.4. oBjectIve 4: assIst the sector In human caPacIty BuIldIng and

develoPment
No Action Plans Budget Item 2016 2017 2018 Total Budget
(ZMW)
1 Align the NRW strat- 3 day meeting to de- 100,000 100,000
egy to the National velop aligned national
capacity develop- NRW Strategy
ment strategy (Article
2.3.5 of the Capac-
ity Development
Strategy)

33
No Action Plans Budget Item 2016 2017 2018 Total Budget
(ZMW)
2 Recommend en- Develop TORs for Con- 100,000 400,000
gagement of a sultancy
consultant to un- 100,000
dertake human and Engage consultant to
institutional capacity 200,000
needs assessment. Train CUs on use of the
Resources (human, Database
technical and finan-
cial)

3 Facilitate for NRW 5 day training for all 200,000 200,000

NTTF members to be members of the NRW
trained on NRW man- NTTF on NRW man-
agement ( TOT basis) agement
4 Develop standard- 3 day meeting to de- 100,000 100,000
ized NRW training velop modules
modules
5 Facilitate yearly Train CUs based on 200,000 200,000 400,000
structured training for developed modules
CU staff
6 Monitor and evalu- Conduct on-spot visits 50,000 50,000 100,000
ate trainings con- on performance of
ducted NRW units
7 Establish a bench- 2day meeting to es- 70,000 70,000
marking system on tablish a benchmark-
NRW among CUs ing system on NRW
8 Facilitate peer re- Collaborate with 10,000 10,000 10,000 30,000
views for NRW. NWASCO resource
centre and facilitate
at least 2 peer reviews
per year
Subtotal 1,400,000

6.5. oBjectIve 5: assIst the sector In monItorIng and evaluatIon of nrW

No Action Plans Budget Item 2016 2017 2018 Total Budget
(ZMW)
1 Recommend to the - - - -
WSS regulator to raise
the NRW indicator on
the national bench-
marking sector report.
(NWASCO sector
report.)

34
 No Action Plans Budget Item 2016 2017 2018 Total Budget
(ZMW)
2 Review the imple- Biannual monitoring 160,000 160,000 320,000
mentation of the reports
strategies and the
rate of attainment of
targeted KPIs.
3 Recommend in- 1 day meeting to 35,000 35,000
centives for best develop recommen-
performing CU in dations
implementing the
recommended NRW
Strategy
Subtotal 355,000

Total ZMW 3,755,000.00

35
MEMO

36
MEMO

37
MEMO

38