WATERTIME.Sustainability and participation in the urban

water cycle

Jordi Molina

Director of the Agbar Foundation

Cordoba, 2nd of October 2003

INDEX

Short presentation of the AGBAR Group AGBAR’s commitment to Sustainability Sustainability in the Urban Water Cycle Management, Control and Participation in the Urban Water

Cycle

Water sector

Health sector

Waste and Construction

sector

Inspection and Certification

AGUAS DE BARCELONA

AGBAR

LogisticsLogistics

CollectionCollection

Over 200 companies

Developing Business

Engineering and

Maintenance

Engineering and

Maintenance

SPAIN

MOROCCO

PORTUGAL

USACUBA

COSTA RICA

CHILEURUGUAY

ARGENTINACOLOMBIA

BRAZIL

Corporate supply and logistics

Engineering

Collection of charges

Construction

Maintenance

Integral water cycle

Health insurance

Solid waste

Technical vehicle inspection

PRESENCE OF THE AGBAR GROUP IN THE WORLD

MEXICO CHINA

INTEGRAL WATER CYCLE 32.8%

SOLID WASTE AND CONSTRUCTION 28.6%

28,6HEALTHCARE 25.2%

INSPECTION AND CERTIFICATION 5.2%

DEVELOPING BUSINESSES 8.2%

AGBAR GROUP.DIVERSIFICATION TO DRIVE GROWTH

AGBAR. HR

EMPLOYEES : EMPLOYEES : 46,00046,000

SPANISH PEOPLE ABROAD :SPANISH PEOPLE ABROAD : 6060

TRAINING :TRAINING : 86.4 % Staff - annually86.4 % Staff - annually

0.7% Total hours worked0.7% Total hours worked

AGBAR’S COMMITMENT TO THE ENVIRONMENT AND SUSTAINABILITY

MILESTONES AND STRUCTURE

ENVIRONMENTAL DECLARATION, 1995 ASSISTANT MANAGEMENT TO GENERAL MANAGEMENT, 1995 ENVIRONMENT COMMITTEE (INTER-SECTOR), 1995 ENVIRONMENT OFFICE (HOLDING), 1995 AGBAR FOUNDATION (CENTRE OF ENVIRONMENTAL STUDIES

AND RESEARCH), 1998 AGBAR FOUNDATION REPORT AND ENVIRONMENTAL

ACTIVITIES, 1999 ENVIRONMENTAL AND INSTITUTIONAL ENVIRONMENT

COORDINATION MANAGEMENT, 2000 CODE OF ETHICS, 2002 SUSTAINABILITY REPORT, 2003

INFORMATION, TRAINING AND COMMUNICATION.COMMUNITY RELATIONS

BASIC IDEAS

AGBAR’s commitmentQuality service:

Environment

ClientsInform and raise public awareness concerning the

sustainable use of resources

Co-responsibility with the public administration

SUSTAINABLE COMPANY

F IN A N C IA L S T R A T E G Y E N V IR O N M E N T A L S T R A T E G Y S O C IA L S T R A T E G Y

C O D E O F V A L U E S

V IS IO N

M IS S IO N

SUSTAINABILITY OBJECTIVES

ECONOMIC/ FINANCIAL

ENVIRONMENTAL

SOCIAL

OWN GROWTH AND ASSOCIATED LOCAL DEVELOPMENT

ECO-EFFICIENCY IN RESOURCE CONSUMPTION

PERSONAL AND PROFESSIONAL GROWTH AND SATISFACTION OF EMPLOYEES

SOLVENCY (PERMANENCE)

MINIMISATION AND REVALUATION OF WASTE

CONTRIBUTION TO IMPROVING SOCIETY

INTEGRATING ALL INTEREST GROUPS

ACTIONS IN THE ECONOMIC/FINANCIAL AREA

Introducing the concept of sustainable development in strategic and investment decisions.

Internalising the environmental impact generated in strategic and investment decisions.

Drawing up the Sustainability Report Introducing sustainability indicators in economic decision-

making. Introducing sustainability indicators in investment

decisions.

ACTIONS IN THE ENVIRONMENTAL AREA

Introducing the concept of eco-efficiency in internal processes and resource use.

Lengthening the life cycle of products and materials. Introducing internally the sustainable use of resources and

technology in processes and activities (environmental management systems).

Focus research, development and innovation on promoting a more sustainable use of resources and technology.

Reducing the impact of our activities on nature.

ACTIONS IN THE SOCIAL AREA I

Guaranteeing employee health and safety.

Respecting and protecting the human rights of employees and guaranteeing equal opportunities.

Respecting and protecting cultural diversity in companies.

Promoting team creativity and innovation with greater investment in training.

Acting transparently, offering information on activities to interest groups and society at large.

Contributing to economic and social development in cohesion with the communities where the company operates.

ACTIONS IN THE SOCIAL AREA II

Spreading technological and environmental knowledge in the scientific community and society.

Placing company know-how at the disposal of social cooperation projects.

Promoting participation in business decision-making when affecting the community where the company operates.

Collaborating in spreading technological and environmental knowledge in the scientific community and society.

Contributing with company know-how in social cooperation projects.

CONTROL PANEL

STRATEGIC LINES

CLEAR OBJECTIVES

SPECIFIC INDICATORS

SCHEDULING

PERIODIC CHECKS

CONTROL AREAS

INTERIORPRODUCTION

MANAGEMENTFINANCIAL MANAGEMENTKNOWLEDGE

MANAGEMENTTECHNOLOGICAL

MANAGEMENTHR MANAGEMENT

EXTERIORLEGAL COMPLIANCECLIENT RELATIONSSUPPLIER RELATIONSSOCIAL RESPONSIBILITY

INDICATORS

INTERNAL PROJECTION, aimed at:

PRODUCT OR SERVICE

(Quality, eco-efficiency, management)

EMPLOYEES (Consubstantial)

EXTERNAL PROJECTION, aimed at:

SHAREHOLDERS

(Consubstantial)CLIENTS

(Contractual)COMMUNITY

(Contextual)SUPPLIERS

(Contractual)

INDICATORS

SECTOR-RELATEDNo. ENVIRONMENTAL

INCIDENTS% ANALYTICAL

CONFORMITY% SYSTEM

PERFORMANCE% SYSTEM USE% WATER RE-USED% SLUDGE VALUATIONDBO5 REDUCTION

DSU REDUCTION

% CERTIFICATION

SUSTAINABILITYTRAINING:

% EMPLOYEES, HOURSSAFETY:

FREQUENCY AND GRAVITY OF ACCIDENTS

ENERGY:CONSUMPTION/UNIT

MATERIAL RECYCLING ENVIRONMENTAL

INVESTMENT AND EXPENSES

R&D INVESTMENT AND EXPENSES

SPONSORSHIP

Internal analysis: quality indicators•Composition of water supplied to network•Smell and taste of water distributed•Compliance with standard pressures•Reliability (number of interruptions)•Absence of meter reading, estimated readings and

substitutive bills.•Treatment of queries and complaints (type and %

abandonment)

External analysis•Client meetings•Data mining•Recall rate in media (number appearances, %

positive and negative news items)•Context analysis: actions by other utilities

How is it explained?

SERVICE QUALITY AND CLIENT SATISFACTION ANALYSIS OF RESULTS

Internal resultInternal result

Internal indicatorsInternal indicators

Satisfaction surveySatisfaction survey

External result. ISCExternal result. ISC

EXTERNALCONTEXT

EXTERNALCONTEXT

INTERNALCONTEXT

INTERNALCONTEXT

Client service processes

Client service processes

Service attributes perceivable by client

Service attributes perceivable by client

SERVICE QUALITY AND CLIENT SATISFACTION MEASURING SERVICE QUALITY

CLIENT SATISFACTION RATE MODEL (ISC)

AGBAR FOUNDATION.Objectives and strategy

OBJECTIVES Encourage the conservation

and protection of the environment

Spread knowledge Improve people’s quality of

life

STRATEGY Prevention Research Training Awareness raising Socio-cultural actions Own programmes or in

collaboration but with significant participation of the Foundation

AGBAR FOUNDATIONACTIVITIES

SPREADING OF KNOWLEDGECreation of an archive of relevant informationOrganisation of congresses and seminars, publicationsAgreements with universities for training programmes TECHNOLOGICAL MANAGEMENT

(R&D&I)– Coordination and promotion of environmental research projects– Grants to carry out projects– Agreements to transfer of technology– Other

SOCIAL AREA – Socio-cultural sponsorship– Water Museum – Clikasalud

WATER RESOURCES

DEMAND MANAGEMENT

RESOURCE MANAGEMENT

LEGISLATION AND

REGULATIONS

APPLICABLE TECHNOLOGY

USER AWARENESS

RAISING

ALTERNATIVE RESOURCES

INTEGRAL BASIN MANAGEMENT

Eco-efficiency indicators

Management indicators

WATER SUSTAINABILITY

ECONOMY SOCIETY

ENVIRONMENT

ViablePractical

Fair

SD

Sustainable Development

Total economic value

Values of use Non-use values

Direct use values:

Harvests

Productive woodland

Tourism

Leisure

Ecological function values:

Flood control

Climate

Nutrient cycles

Optional values:

New

Technology

Pharma. products

Resource replacements

Existence values:

Satisfaction due to existence and availability of resources

Future values:

For future generations

VARIOUS TYPES OF ECONOMIC VALUES SOMETIMES ASSIGNED TO WATER AND OTHER NATURAL RESOURCES

Source: Sustainability Criteria for Water Resource Systems

Demand Management Indicators

WATER CONSUMPTION PER PRODUCT UNIT

ENERGY CONSUMED PER PRODUCT UNIT

WASTE PRODUCED PER PRODUCT UNIT

The application of Eco-efficiency in Water

Management

• Environmental incidents

• Quality indicators

• Quality depending on use

• Coverage of treatment

• Advanced management of urban drainage

• Conservation and recovery of aquifers

• System performance

• System use

• Percentage of water re-use

• Percentage of re-use of biosolids produced

Resource Management Indicators

Eco-efficiency is the optimum use of resources to produce a good or service with the lowest environmental impact possible

VALUE OF THE SERVICE OR PRODUCT

INCIDENCE ON ENVIRONMENT

Eco-efficiency

ECO-EFFICIENCY IN WATER MANAGEMENT

• Environmental uses

• Domestic uses

• Municipal uses

• Industrial uses

• Agricultural uses

INFRASTRUCTURE PROGRAMMES

OBJECTIVES :OBJECTIVES :

Take on responsibility for the overall water distribution systemTake on responsibility for the overall water distribution system

Control user consumptionControl user consumption

Take on responsibility for the systems available to reduce Take on responsibility for the systems available to reduce losseslosses

Automatic Alert Station (SAICA network) Automatic Alert Station (SAICA network)

Example of the Barcelona real-time waste water control system

RAIN GAUGE

METEOROLOGICAL RADAR DEPTH GAUGE

RTC

QUALITY STATION

RETENTION GATE

RETENTION TANK

CONTROL CENTRE

RAIN GAUGE

DEPTH GAUGE

PRESSURE GAUGE

PUMPING STATION

GATE

RETENTION TANK

QUALITY CONTROL STATION

TREATMENT PLANT

CONSERVATION AND RECOVERY OF AQUIFERS

Graph showing exploitation of the Llobregat River

Annual Volume

Annual volume extracted from aquifer

Annual volume extracted from aquiferTotal annual volume topped up

Annual volume artificial topping upAnnual volume direct topping up

Organic macro-molecules

ColloidsOrganic

compounds

Bacteria Virus

Pollen Yeast

Dissolved salts

Hair Red globule

Smaller micro-organism

Poliomyelitis virus Inverse osmosis

Nanofiltration

Ultrafiltration

Microfiltration

Sand filter

100μ 10μ 1μ 0,1μ 0,01μ 0,001μ 0,0001μ

Membrane classification

Source: J. Cantó; F. Luque. AGBAR

CONSERVATION AND RECOVERY OF AQUIFERS

EFFICIENCY PROGRAMMES

OBJECTIVES :

Take on responsibility for reducing consumption technically.

Activity Total Initial

Consumption

% savings

expected

Total consumption

(with savings

mechanisms)

Washing hands 15 30 % 11

Flushing toilet 60 40 % 36

Shower 50 40 % 30

Bidet 20 30 % 14

Washing machine 26 20 % 21

Dishwasher 7 20 % 5

Cleaning/drinking/cooking 10 30 % 7

TOTAL (l/person.day) 188 124

TOTAL % SAVINGS 35

Source: F. Mendaza. EMUASA

SAVINGS IN WATER CONSUMPTIONSAVINGS IN WATER CONSUMPTION

SAVINGS PROGRAMMES

OBJECTIVES :

Reduction in consumption by means of citizen awareness raising programmes

Reduction in consumption by means of tariff programmes

PRACTICAL EXAMPLE

IMPROVEMENTSCommunication campaign:Quality attribute

• Eradicate doubts concerning sanitary water.

• Explain where water comes from.

PRICING AND FINANCING

Contradictory constraints upgrade and maintain infrastructures balance budgets fewer subsidies water framework directive and cost recovery

... and keep water affordable

FACTORS INFLUENCING THE PRICE OF WATER

Environmental costs

Financial costs

Resourcecosts

Water demand management Water tariff

policies Price of

water

Taxes and duty

(not water)

Water bill

Social sustainability

Environmental sustainability

Economic sustainability

Educationalcampaigns

Tariffs

Technological aspects

Cost recovery

Tax

+

+

Water consumption

Consumer information

Economicaspects

REPLACEMENT PROGRAMMES

OBJECTIVES :

Encourage the replacement of drinking water with water from other sources of lesser quality according to use.

POSSIBILITY OF RE-USE

General coming from treatment plants

Individual consisting of regenerating / re-using water directly in the sanitary circuits of users’ homes

Water and Biosolids

A COMMON EUROPEAN BACKGROUND...

Organisationof water services

is public and local

Water is a common good:it belongs to the community

Access to the serviceis a basic human right

A VERY SPECIFIC ISSUE

LEGAL FRAMEWORKS

... FACING CHANGES

LEGAL FRAMEWORKS

New period for water services

infrastructures to be upgraded / new norms to enforceheavy investments

develop customer oriented policiesnew culture

Consequence: recent and ongoing reforms in several countries

clarify the role of the different actors

reorganisation / modernisation of water serviceswater companies; private sector participationnew rules for setting prices

ISSUES EMERGING IN CONNECTION WITH PRIVATE PARTICIPATION...

DEBATES & TRENDS

1- Regulation and control

2- Efficiency - Quality of the service

3- Pricing - Financing

4- Water services as an industry

... INCLUDE ALL OPERATORS

REGULATION AND CONTROL

DEBATES & TRENDS

Key issue in several countries

private participation enlightens the need for regulationwhat degree of regulation? at what scale?integrate environmental and health aspects?prerequisite for efficiency whatever the operator's statushow to enhance competition, particularly where the private

sector is strong and concentrated

EFFICIENCY AND QUALITY OF THE SERVICE

DEBATES & TRENDS

How to measure?need to use common indicatorscompulsory benchmarking?what information should be available?

Customer oriented policiesnew expectations from customersprivate participation favours such policies

Appropriateness-need for service “quality indicators”:

•technical indicators•public opinion indicators•environmental indicators

Appropriateness-need for service “quality indicators”:

•technical indicators•public opinion indicators•environmental indicators

Appropriateness-need for “integrated management” (supply + sewerage)

Appropriateness-need for “integrated management” (supply + sewerage)

Management types: public mixed (public-private) private

Management types: public mixed (public-private) private

Appropriateness-need for attractive “public publicising”.Appropriateness-need for attractive “public publicising”.

MANAGEMENT OF URBAN SERVICES

Technical advantages:

technological input from private operator

specific

professionalism of staff involved

technical transfer to rest of public services

Functional advantages:

agile management agile management and decision-makingand decision-making

multi-skilled staffmulti-skilled staff

efficiency of actionsefficiency of actions

efficiency of resultsefficiency of results

Economic advantages:

funding of investments from infrastructure deficit*co-funding with Public Administration (EU incentives)* apparent extra cost compensated by speed and efficiency favourable economic balance profits can be shared out and controlled by tariffs

ADVANTAGES OF PRIVATE OR PUBLIC-PRIVATE MANAGEMENT

ATMOSPHERIC EVT11

RAINFALL60

CONSUM-PTION

130

LOSSES 12

REAL CONSUM-

PTION 8

TREATEMENT 104+40

IRRIGATION 8 SEWER SYSTEM

187

DSU 37

EXTRACTIONS 17

DRINKING WATER

SUPPLY 150

SEA 184

LATERAL UNDERGROUND

DISCHARGE

EXTERNAL UNDERGROUND

TOP UP

UNDERGROUND WATER AQUIFER

6+3+10+6+8-17-3-9+1

6 2

5 6

2461242

5

3

9

8

8

15

6103

6EXTERNAL

UNDERGROUND TOP UP

8/8

LATERAL UNDERGROUND DISCHARGE

9/5

UNDERGROUND WATER AQUIFER

+33-29 = 44 +30-30 = 08/8 9/5

EXTRACTIONS 17/25

SEA 197/177

CONSUMPTION

143/143

USEFUL RAIN

54/54TER 70/42

LLOBREGAT 80/80

2/2

SEWER SYSTEM 202/185

TREATMENT 105/145

DRINKING WATER SUPPLY

150/137

0/1

0/4

105/141

89/36

8/108/4

46/43

141/141

2/9

141/129

70/42

80/80

9/8

3/0

17/25

15/1

0/15

105/145

MUNICIPAL USES. XXI AGENDA. BARCELONA PROPOSAL

EXTERNAL UNDERGROUND

TOP UP