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Water issues in Armenia
by Areg Gharabegian
http://www.reporter.am/go/article/2013-07-06-water-issues-in-armenia
Published: Saturday July 06, 2013
This year's Vartavar - Armenia's water holiday - is on July 7. Photolure
Related Articles
Renewable energy assessment for Armenia
Armenia has abundant water resources which are generally adequate for
drinking, irrigation, and industrial use throughout the country, with
some limitations in a few areas. Water usage has been reduced after
independence due to reduction of industrial and agricultural
activities.
Approximately 98% of drinking water supplies are from groundwater
and/or springs with remaining percentage from surface water, mainly
streams. The quality of ground and spring waters is generally
satisfactory for potable use and as a result only
chlorination/disinfection treatment is required. However, conventional
water treatment systems are used for water from streams. The water
sources are quite well protected and only rare cases of contamination
or bacterial pollution have been reported in recent years. Base on the
forecast of water demands for urban and rural areas, it is anticipated
that the water sources would adequate to satisfy future water needs.
The adequacy of water resources is not the reason for issues related
with water services in Armenia. During the Soviet era, large
investments were made on water related projects to provide water to
urban and rural areas. However, quality of workmanship was low and
there were lack of proper water resource management and control of
consumption. In addition, water delivery and treatment infrastructure
were neither routinely maintained nor upgraded. Furthermore, major
repairs, investments, and upgrades were almost stopped for many years
after collapse of the Soviet Union due to the lack of funding. There
were also a wide spread misuse of assets and resources such as
stealing pipes and pumps.
During the last 10 years significant legislatives have been enacted
and institutional reforms have been introduced in Armenia related to
water resources management and protection. One of the main
achievements was introduction and application of the principles of
integrated water resources management.
Improvements in continuity of water supply can only happen with
increased investments in infrastructure. Initial estimates indicate
that short to midterm investment requirements could be about $179
million ($79 million for Yerevan and $100 million for other urban
areas). Recent proposed investment programs are linked particularly to
improving efficiency.
Five state-owned enterprises were established to manage and administer
the water systems in different areas of Armenia as part of the water
supply system reform. Currently the majority of the population of
Armenia is served by the following water utilities:
- Yerevan Jour - serving population of 1 million in Yerevan and 33
nearby villages;
- Armenia Water and Sewerage Company (AWSC) - serving population of
620,000 in over 300 villages; and
- Three Regional Utilities (Nor Akunq, Lori, and Shirak) - serving
population of 320,000.
Additionally there are 560 villages outside these utility service
areas, served by arrangements that vary by each individual community.
All five major utilities are engaged in some form of private-public
partnership arrangement with various international operators. AWSC is
currently managed and operated by Saur, a French utility company. The
fee-based contract had an original term of 5 years but was extended
for an additional year until 31 December 2013.
Armenia's water supply networks and systems are in need of major
repairs and upgrades. The absence of investments over the years,
coupled with the lack of routine maintenance, has resulted in
deteriorated infrastructure that is unable to deliver the appropriate
level of service to its users. Water losses or nonrevenue water is
estimated to be up to 85% which according to World Bank is one of the
highest percentage water losses in the world. More than 50% of water
losses are due to leaks from old pipes and the remainder is due to
nonpayment, underpayment, or theft. Nearly 65% of the nonrevenue water
losses are at the multifamily residential buildings and private
houses. Besides leaks from pipes, these losses are due to meter
tampering by using of magnets, leave water running, and use of 2nd and
3rd unmetered inlet pipes at residential units.
Increase in level of services using old leaky pipelines has a negative
effect on water losses. This is due to running high pressure water
through old pipes with leaks for longer time which cause more water to
be lost through the leaks. Recently about 70% of the distribution
system in Armavir was replaced and water supply duration was increased
to 22 hours a day but non revenue water has only decreased from 87 to
70%.
Most of the current water meters in Yerevan are old and are often of
low quality. These meters are inaccurate and they cannot provide
reliable results. In addition, most of the meters can be easily
tampered by using magnets. However, over 95% of residential and
commercial water connections are metered.
The water rates in Armenia are around AMD200 per cubic meter, which is
considered low compared to regional and international norms of
approximately AMD400 per cubic meter. Such a low level does not
provide adequate funding for water providers to renovate water system
infrastructure. The rates are not even sufficient to cover operation
and maintenance costs. The typical cost of water for one month for a
family is equivalent to three packs of cigarettes. It would be
difficult to imposing water rate increases on the public, especially
if the service is intermittent.
Revenue collections are extremely high when compared against
international and regional experience. However, generally billing is
based on flow volumes, and as noted earlier, currently it is almost
impossible to obtain accurate measures of consumption because of the
poor state of the metering. As a result there is no clear indication
of whether customers are paying for actual water volumes received.
Despite Armenia's abundance of water, the population's supply needs
could not be met, as a significant proportion had access to drinking
water for just a few hours per day. To address these issues, the
Government of Armenia has sought to improve the water supply and
sanitation sector through various policy and legislative reforms as
well as capital investments with support from international
institutions, such as the Asian Development Bank (ADB), and with
private participation through public-private partnerships.
In 2007, the ADB approved a loan of $36 million to Armenia to help
improve public health and the environment for 576,000 people in 16
towns by revitalizing and rehabilitating the existing water
infrastructure and increasing the capacity of the water supply and
sanitation service providers. While this project had positive
implementation results, the need to address pressing issues, including
capital investments for upgrading of the network and the long-term
financial sustainability of the Armenian water supplying companies
remained. Thus, in 2012, ADB approved the Government of Armenia's
request for $40 million in additional financing to continue and expand
the improvements delivered by the initial project.
Operationally, the project has increased potable water supply by at
least 12 hours to more than 600,000 residents. Payment collection also
increased from 61% in 2008 to 74% in 2010, driven by the installation
of water meters and an ongoing community program to raise awareness of
water use and management.
Water supplying companies acknowledge that nonrevenue water is
staggeringly high. To address the issue, they are suggesting that to
(i) utilize large capital investments to replace and upgrade aging
infrastructure and decrease leaks in the network; (ii) install better
water meters for residential properties and electronic water meters
for high-rise buildings to better account for water use; (iii) install
better flow meters to account for more accurate flow values; and (iv)
place more attention and efforts on decreasing the incidence of
illegal connections through better community consultation and active
monitoring.
Sources:
Water Sector Note, Report No.: 61317-AM, Sustainable Development
Department, Europe and Central Asia Region, The World Bank, May 2011
Armenia: Fostering the Long-Term Financial Viability and
Sustainability of the Armenian Water and Sewerage Company, Asian
Development Bank (ADB), Central and West Asia Department, Working
Paper Series, Adrian Torres, March 2013
by Areg Gharabegian
http://www.reporter.am/go/article/2013-07-06-water-issues-in-armenia
Published: Saturday July 06, 2013
This year's Vartavar - Armenia's water holiday - is on July 7. Photolure
Related Articles
Renewable energy assessment for Armenia
Armenia has abundant water resources which are generally adequate for
drinking, irrigation, and industrial use throughout the country, with
some limitations in a few areas. Water usage has been reduced after
independence due to reduction of industrial and agricultural
activities.
Approximately 98% of drinking water supplies are from groundwater
and/or springs with remaining percentage from surface water, mainly
streams. The quality of ground and spring waters is generally
satisfactory for potable use and as a result only
chlorination/disinfection treatment is required. However, conventional
water treatment systems are used for water from streams. The water
sources are quite well protected and only rare cases of contamination
or bacterial pollution have been reported in recent years. Base on the
forecast of water demands for urban and rural areas, it is anticipated
that the water sources would adequate to satisfy future water needs.
The adequacy of water resources is not the reason for issues related
with water services in Armenia. During the Soviet era, large
investments were made on water related projects to provide water to
urban and rural areas. However, quality of workmanship was low and
there were lack of proper water resource management and control of
consumption. In addition, water delivery and treatment infrastructure
were neither routinely maintained nor upgraded. Furthermore, major
repairs, investments, and upgrades were almost stopped for many years
after collapse of the Soviet Union due to the lack of funding. There
were also a wide spread misuse of assets and resources such as
stealing pipes and pumps.
During the last 10 years significant legislatives have been enacted
and institutional reforms have been introduced in Armenia related to
water resources management and protection. One of the main
achievements was introduction and application of the principles of
integrated water resources management.
Improvements in continuity of water supply can only happen with
increased investments in infrastructure. Initial estimates indicate
that short to midterm investment requirements could be about $179
million ($79 million for Yerevan and $100 million for other urban
areas). Recent proposed investment programs are linked particularly to
improving efficiency.
Five state-owned enterprises were established to manage and administer
the water systems in different areas of Armenia as part of the water
supply system reform. Currently the majority of the population of
Armenia is served by the following water utilities:
- Yerevan Jour - serving population of 1 million in Yerevan and 33
nearby villages;
- Armenia Water and Sewerage Company (AWSC) - serving population of
620,000 in over 300 villages; and
- Three Regional Utilities (Nor Akunq, Lori, and Shirak) - serving
population of 320,000.
Additionally there are 560 villages outside these utility service
areas, served by arrangements that vary by each individual community.
All five major utilities are engaged in some form of private-public
partnership arrangement with various international operators. AWSC is
currently managed and operated by Saur, a French utility company. The
fee-based contract had an original term of 5 years but was extended
for an additional year until 31 December 2013.
Armenia's water supply networks and systems are in need of major
repairs and upgrades. The absence of investments over the years,
coupled with the lack of routine maintenance, has resulted in
deteriorated infrastructure that is unable to deliver the appropriate
level of service to its users. Water losses or nonrevenue water is
estimated to be up to 85% which according to World Bank is one of the
highest percentage water losses in the world. More than 50% of water
losses are due to leaks from old pipes and the remainder is due to
nonpayment, underpayment, or theft. Nearly 65% of the nonrevenue water
losses are at the multifamily residential buildings and private
houses. Besides leaks from pipes, these losses are due to meter
tampering by using of magnets, leave water running, and use of 2nd and
3rd unmetered inlet pipes at residential units.
Increase in level of services using old leaky pipelines has a negative
effect on water losses. This is due to running high pressure water
through old pipes with leaks for longer time which cause more water to
be lost through the leaks. Recently about 70% of the distribution
system in Armavir was replaced and water supply duration was increased
to 22 hours a day but non revenue water has only decreased from 87 to
70%.
Most of the current water meters in Yerevan are old and are often of
low quality. These meters are inaccurate and they cannot provide
reliable results. In addition, most of the meters can be easily
tampered by using magnets. However, over 95% of residential and
commercial water connections are metered.
The water rates in Armenia are around AMD200 per cubic meter, which is
considered low compared to regional and international norms of
approximately AMD400 per cubic meter. Such a low level does not
provide adequate funding for water providers to renovate water system
infrastructure. The rates are not even sufficient to cover operation
and maintenance costs. The typical cost of water for one month for a
family is equivalent to three packs of cigarettes. It would be
difficult to imposing water rate increases on the public, especially
if the service is intermittent.
Revenue collections are extremely high when compared against
international and regional experience. However, generally billing is
based on flow volumes, and as noted earlier, currently it is almost
impossible to obtain accurate measures of consumption because of the
poor state of the metering. As a result there is no clear indication
of whether customers are paying for actual water volumes received.
Despite Armenia's abundance of water, the population's supply needs
could not be met, as a significant proportion had access to drinking
water for just a few hours per day. To address these issues, the
Government of Armenia has sought to improve the water supply and
sanitation sector through various policy and legislative reforms as
well as capital investments with support from international
institutions, such as the Asian Development Bank (ADB), and with
private participation through public-private partnerships.
In 2007, the ADB approved a loan of $36 million to Armenia to help
improve public health and the environment for 576,000 people in 16
towns by revitalizing and rehabilitating the existing water
infrastructure and increasing the capacity of the water supply and
sanitation service providers. While this project had positive
implementation results, the need to address pressing issues, including
capital investments for upgrading of the network and the long-term
financial sustainability of the Armenian water supplying companies
remained. Thus, in 2012, ADB approved the Government of Armenia's
request for $40 million in additional financing to continue and expand
the improvements delivered by the initial project.
Operationally, the project has increased potable water supply by at
least 12 hours to more than 600,000 residents. Payment collection also
increased from 61% in 2008 to 74% in 2010, driven by the installation
of water meters and an ongoing community program to raise awareness of
water use and management.
Water supplying companies acknowledge that nonrevenue water is
staggeringly high. To address the issue, they are suggesting that to
(i) utilize large capital investments to replace and upgrade aging
infrastructure and decrease leaks in the network; (ii) install better
water meters for residential properties and electronic water meters
for high-rise buildings to better account for water use; (iii) install
better flow meters to account for more accurate flow values; and (iv)
place more attention and efforts on decreasing the incidence of
illegal connections through better community consultation and active
monitoring.
Sources:
Water Sector Note, Report No.: 61317-AM, Sustainable Development
Department, Europe and Central Asia Region, The World Bank, May 2011
Armenia: Fostering the Long-Term Financial Viability and
Sustainability of the Armenian Water and Sewerage Company, Asian
Development Bank (ADB), Central and West Asia Department, Working
Paper Series, Adrian Torres, March 2013