Decision No. 2147/QD-TTg of November 24, 2010, on approval of national unaccounted-for water, non-revenue water program to 2025

DECISION

ON APPROVAL OF NATIONAL UNACCOUNTED-FOR WATER, NON-REVENUE WATER PROGRAM TO 2025

THE PRIME MINISTER

Pursuant to the Law on Governmental Organization dated 25 December 2001;

Pursuant to the Law on Construction dated 26 November 2003;

Pursuant to Decree No. 117/2007/ND-CP dated11 July 2007 on treated water production, supply and consumption;

At the request of the Minister of Construction,

DECIDES

Article 1: To approve the National Unaccounted-for Water (UFW), Non-Revenue Water (NRW) Program to 2005, including specifically:

1. Objectives

Mobilize and muster all resources for UFW/NRW activities, reduce UFW/NRWrate averaging 30% in 2009 to below 15% by 2025 with specific targets for each period as below:

- By 2015: AverageUFW/NRWrate at 25%.

- By 2020: AverageUFW/NRWrate at 18%.

- By 2025: AverageUFW/NRWrate at 15%.

2. Key Program activities

a) Public Awareness Improvement Activities:

Raise public awareness on the role of treated water supply to public livelihoods and production and identify one’s role and responsibility to effective and efficient use of treated water and protection of water supply systems for community benefits.

b) Capacity Building for Local Authorities:

Promote the role and responsibility of authorities of all levels towards water supply development, consumption and protection of water works and water resources; join efforts in UFW/NRWactivities for more efficient use of water resources in the service areas.

c) Capacity Building for Water Supply Companies:

- Managerial organization:

+ Arrange and organize system management, monitoring and maintenance mechanisms, and assign specific tasks to each unit in the utilities. All water supply companies in urban centers with high rates of UFW/NRW shall establisha unit fully in charge of UFW/NRW.

+ Establish and manage systematic and proper billing systems to minimize fraud in treated water production and business.

+ Set up records of pipeline networks, water meters, apply GPS and GIS in networks and water meter management.

+ Prepare annual and five-year plans for inspection and replacement ofdistribution network pipelines and equipment.

- Capacity building training:

+ Provide training for staff and employees of water supply companies on managing water supply system and UFW/NRWactivities. Use appropriate software for network management.

+ Conduct workshops and seminars for experience exchange and sharing in UFW/NRWactivitiesin water supply companies.

d) Establishment and Improvement ofUFW/NRWPolicy Framework:

- Develop sector performanceindicators and reporting systems for water supply management and monitoring.

- Develop regulations on fixed UFW/NRW ratesto encourage water supply companies to minimize UFW/NRW and benefit from the profits so achieved.

- Set up incentive mechanisms to encourage water supply companies and participation by other economic sectors in improving the distribution pipelines, network management and UFW/NRWactivities.

- Develop financial incentives for UFW/NRW projects.

- Encourage study and apply the modern technology and new materials in management and detection of water loss and operation of water works in general.

- Set up mechanisms to reward individualswhodetect and report pipe breakdown and leakage points. Sanctions will be applied to organizations and individuals for fraudulent practices in water use, non-payment and damage to pipelines.

e) UFW/NRW due to Technical Reasons:

- Assess the conditions of old pipeline networks and plan to replace those pipelines that fail to meet technical requirements. For large urban centers (especially urban center - Grade II upwards)with complex networks, network zoning is required for water loss monitoring.

- Monitor closely the installation of new pipelines, replacement of old pipelines particularlyatconnection points between new and old pipes and for new connections.

- Install meters that meet quality standards and sufficient quantity for all consumers. Replace old meters, conduct regular maintenance and inspect meters as per applicable regulations.

- Procure the leakage detection equipment and materials for pipeline repairing.

3. Funding for Program Implementation

Mobilize state budget, ODA, credit and other sources of capital for UFW/NRW activities, giving priority over large urban centers, water supply companies with high UFW/NRW rates. A tentative financing approach will be as follows:

- Public Awareness Improvements will be financed out of state budget, grants or grant elements as part of mixed loans; other sources of capital or integrated with other projects/programs.

- Institutional strengthening for water supply companies and local authorities will be based on grantor grant elements from mixed loans; water utilities’ own capital and other resources. State budget funds will be allocated for compiling materials and course books; conducting capacity building training, workshops and seminars, etc.

- Funds for pipeline rehabilitation, meter replacement, equipment procurement etc., will be as allocated from ODA loans, commercial loans, credit, water utilities’ own resources and sources from other economic sectors.

- Program management activities: Funds for this purpose will be as allocated from annual state budget estimates to various ministries, sectors and provinces.

Article 2: Implementation Arrangements

1. Establish Central Steering Committee (CSC) for National NRW/UFW Program

- The CSC shall be established by the Prime Minister. Key CSC members include:

+ The Minister of Constructions CSC Chairman; a Deputy Minister of Construction as vice Chairman.

+ Other CSC members include key representatives from the Ministry of Planning and Investment; Ministry of Finance; Ministry of Science and Technology; Ministry of Information and Communications; Ministry of Agriculture and Rural Development; Ministry of Natural Resources and Environment; State Bank of Vietnam.

- The CSC shall be responsible for directing the development of annual and five-year program implementation plans; instructing implementation of the Program; instructing and coordinating Program related issues; reviewing, monitoring and supervising Program implementation in the provinces.

2. The Ministry of Construction:

- The Ministry of Construction shall be the permanent agency of the CSC.

- Guide the provinces/centrally-based cities to prepare and implement UFW/NRW projects.

- Review and develop a portfolio of projects on public awareness improvements; provide capacity building for water utilities and UFW/NRW capital projects in the provinces.

- Based on specific plans prepared by the various ministries, the Ministry of Construction shall prepare annual and five-year implementation plans to be reported to the Prime Minister.

- Lead and coordinate with the relevant ministries to issue UFW/NRW policies according to their function assignments.

- Lead and coordinate with the relevant ministries to implement, monitor and supervise implementation of projects under the Program; assess the Program quality, progress and performance and report to the CSC on a regular basis.

- Lead and coordinate with the relevant ministries and Provincial and Town People’s Committees to publish data and performance indicators on the management of water works and UFW/NRW rates by water utilities, on websites and other mass media.

- Review, revise and supplement technical sector standards; prepare course books and guide the implementation of the Program.

- Encourage research and application of modern technologies and materials in UFW/NRW management and detection in particular, and in the construction and operations of water works in general.

- Conclude and evaluate the Program implementation.

3. Ministry of Planning and Investment:

- Arrange annual budget and ODA allocations to finance the Program activities.

- Lead and coordinate with the Ministry of Construction and Ministry of Finance to develop and guide preferential mechanisms and encourage participation by all economic sectors in network management and rehabilitation for UFW/NRW reduction.

4. Ministry of Finance:

- Lead and coordinate with the various ministries to provide guidelines on financial mechanisms to ensure effective implementation of the Program.

- Lead and coordinate with the Ministry of Construction and Ministry of Planning and Investment to develop financial assistance and incentive mechanisms for UFW/NRW projects.

- Lead and coordinate with the various ministries to develop regulations on fixed UFW/NRW rates and benefit from the profits so achieved.

5. Vietnam Water Supply and Sewerage Association:

The Vietnam Water Supply and Sewerage Association shall cooperate with the Ministry of Construction and other relevant agencies to disclose, disseminate and share UFW/NRW experience for water utilities. Evaluate and commend water utilities that achieve the best performance indicators on water works and UFW/NRW management.

6. Provincial/Centrally-Based City People’s Committees:

- Based on the issued UFW/NRW policies, develop specific regulations and guide their implementation in a locally adaptive manner.

- Prepare UFW/NRW projects in the respective province and provide relevant instructions for their implementation.

- Develop and issue annual and five-year UFW/NRW plans.

- Prepare annual and five-year cost estimates and plans for implementation of the aforesaid in the province and report to the Ministry of Construction.

- Conduct and coordinate with central and local social organizations to conduct community awareness education campaigns on the Program activities.

- Mobilize capital resources for network construction, rehabilitation and management projects in the socialized approach.

- Monitor and supervise the implementation of the projects in the province; evaluate the Program quality, progress and performance and report to the Ministry of Construction on a regular basis.

Article 3: This Decision shall come into full force and effect from the date of issuance. Ministers, Heads of ministerial agencies and Heads of Government-based agencies,

Chairpersons of Provincial/Centrally-Based City People’s Committees, relevant organizations and persons shall cause this Decision to be executed..