‘‘Water Management Financing in the Caribbean’ Water Management Financing in the Caribbean’ ‘‘The National Water Commission Experience’The National Water Commission Experience’

Caribbean Water & WastewaterCaribbean Water & Wastewater ConferenceConference La Creole Hotel La Creole Hotel

Guadeloupe Guadeloupe

October 6,2011October 6,2011 Mr. Lewis A. Lakeman Mr. Lewis A. Lakeman

Assistant Vice President - Systems Development & Planning Assistant Vice President - Systems Development & Planning

NATIONAL WATER COMMISSION NATIONAL WATER COMMISSION

OVERVIEWOVERVIEW Introduction - National Water Commission Introduction - National Water Commission Overview - Jamaica Water Sector PolicyOverview - Jamaica Water Sector Policy

Finance Methods & Strategies Finance Methods & Strategies Traditional Method of Project Finance Traditional Method of Project Finance Alternate Methods of Project FinanceAlternate Methods of Project Finance Lessons Learnt & Issues Lessons Learnt & Issues Conclusion Conclusion

National Water CommissionNational Water Commission

Established by an ‘Act’ of ParliamentEstablished by an ‘Act’ of Parliament (NWC Act - 1980)(NWC Act - 1980)

Only Utility fully owned by Government of Jamaica Only Utility fully owned by Government of Jamaica

Principal Provider of Water & Wastewater services Principal Provider of Water & Wastewater services

Headed by a nine (9No.) member Board of CommissionersHeaded by a nine (9No.) member Board of Commissioners

Facilities under management over 1,000 Facilities under management over 1,000

Asset under management US$100.0BAsset under management US$100.0B

Staff Complement of 2100 Staff Complement of 2100

National Water CommissionNational Water Commission

Customer Base 444,000 Customer Base 444,000

Operational Revenue is secured via tariff Operational Revenue is secured via tariff (Granted by the Economic Regulator - OUR) (Granted by the Economic Regulator - OUR)

NWC depends on the GoJ to secure financing NWC depends on the GoJ to secure financing from Multi Lateral and Bi Lateral Agencies to from Multi Lateral and Bi Lateral Agencies to assist with the financing of its capital worksassist with the financing of its capital works

Monthly Collection JM$1.2B / US$13.8MMonthly Collection JM$1.2B / US$13.8M

National Water CommissionNational Water Commission

WATER SUPPY SYSTEMS Average Daily Water Production - 176 IMGD Population accessed to piped water - 73% Wells Sources -162Rivers -116Springs -147Network under management - 10,000 km

SEWERAGE SYSTEMS Wastewater Treatment Plants - 68 Pumping Stations - 95 Network - 500 km Population sewered - 30%

NATIONAL WATER COMMISSION

WATER SUPPLY COVERAGEWATER SUPPLY COVERAGEEstimated total daily potable water production (island wide) – 176MIGEstimated total daily potable water production (island wide) – 176MIGApproximately 73% of the total population supplied with potable waterApproximately 73% of the total population supplied with potable water

73% of total population supplied 73% of total population supplied with potable water via 460 with potable water via 460 Facilities Facilities

EXISTING SITUATIONSEWERAGE SERVICES

Island wide Sewerage Coverage 30%Island wide Sewerage Coverage 30%76 Wastewater Treatment Plants 76 Wastewater Treatment Plants

Most are associated with housing developmentsMost are associated with housing developmentsNegril - 4.0MGD, Bogue - 10.0 MGD & Ocho Rios - 3.5 MGD Negril - 4.0MGD, Bogue - 10.0 MGD & Ocho Rios - 3.5 MGD

STRATEGIC PLAN

Jamaica is divided into 10 hydrological basinsNWC uses approximately 8% of the total available resourcesWater Resources are located predominately to the North Demand/Population on the south coast 70%

WATER RESOURCES AND AVAILIBILITY

Water availability

73%

78%

Existing Level

Level With Funded Projects

85 % Level With Additional Projects

100 %

Operations of the Rural Water Supply Limited, Wayside Tanks, household tanks, Rapid Response

PROGRAMME TO INCREASE ACCESS

TO WATER SUPPLY

Pip

ed W

ater O

ther

Mod

alities

Water Supply Water Supply Coverage Coverage

Expected Sewerage Coverage - 2030

STRATEGIC PLANMAJOR SEWAGE SCHEMES

JAMAIACA JAMAIACA WATER SECTOR & POLICY WATER SECTOR & POLICY

STRUCTURE OF THE SECTORSTRUCTURE OF THE SECTOR

The Ministry

NationalWater

Commission

Water ResourcesAuthority

Rural Water Supply Limited

Private Operators

Parish Councils

OUR

NEPAMOH

REGULATORSREGULATORS–Office of Utilities Regulation (OUR)Office of Utilities Regulation (OUR)

Quality of Service StandardsQuality of Service StandardsEconomic regulator / Tariff settingEconomic regulator / Tariff setting

–Ministry of HealthMinistry of HealthWater qualityWater quality

–National Environment and Planning National Environment and Planning Agency (NEPA)Agency (NEPA)

EnvironmentalEnvironmental

–Bureau of Standards JamaicaBureau of Standards Jamaica Customer Meters Customer Meters

–Water Resources AuthorityWater Resources AuthorityWater abstraction licensing & monitoringWater abstraction licensing & monitoring

• all Jamaicans to have access to potable water by 2015

NWC operates within the context of the Government of Jamaica’s

‘WATER SECTOR POLICY of 2002’

• major towns to have central sewerage by 2030

The key policy objectives includes:

• the provision of water & sewerage services is to be

focused to have the maximum impact on national

growth & development• NWC’s role in the water sector was defined • NWC to operate as a business

• Encouragement of ‘private sector participation’ in the sector

FINANCE STRATEGIES FINANCE STRATEGIES ULTILIZED AT THE NWC IN THE ULTILIZED AT THE NWC IN THE

DEVELOPEMENT & IMPLEMENTATION OF DEVELOPEMENT & IMPLEMENTATION OF

WATER SUPPLY AND SEWERAGE SYSTEMSWATER SUPPLY AND SEWERAGE SYSTEMS