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November 2017

ENERGY SAVING MANAGEMENT ACTION PLANFOR

LIAONING SAFE & SUSTAINABLE URBAN WATER SUPPLY PROJECT

Acknowledgements

The financial and technical support by the Energy Sector Management Assistance Program (ESMAP) is gratefully acknowledged. ESMAP―a global knowledge and technical assistance program administered by the World Bank―assists low- and middle-income countries to increase their know-how and institutional capacity to achieve environmentally sustainable energy solutions for poverty reduction and economic growth. ESMAP is funded by Australia, Austria, Denmark, the European Commission, Finland, France, Germany, Iceland, Italy, Japan, Lithuania, Luxembourg, the Netherlands, Norway, the Rockefeller Foundation, Sweden, Switzerland, the United Kingdom, and the World Bank. For more information, please visit www.esmap.org.

The report was prepared by Chi Rong Huang (P.E., Senior Consultant to the World Bank). The Task Team Leader (TTL) for the study is Khairy Al-Jamal (Senior Infrastructure Specialist from Water Global Practice, World Bank Group) and co-TTL Sing (Terry) Cho (Senior Water and Sanitation Specialist, Water Global Practice, World Bank Group).

Special and sincere thanks go to those who have contributed a great amount of effort getting the pilot testing programs executed as planned and collected all testing results for the potential energy savings from all WSCs of Anshan, Fushun, Fuxin, Gaizhou and Shenyang. Without their dedication and responsive action, all the necessary assessments, evaluations, and analyses in this report would not be supported by so much valuable data and information. Only this committed assistance permitted the eventual provision of a concise management action plan for saving energy.

ESMAP for Water and Wastewater Utilities in Guilin January 2017

http://www.esmap.org/

TABLE OF CONTENTS

EXECUTIVE SUMMARY.................................................................................................71 BACKGROUND AND OBJECTIVE.........................................................................11

1.1 INTRODUCTION...........................................................................................................111.2 BACKGROUND............................................................................................................111.3 OBJECTIVES................................................................................................................15

2 WORK PLAN AND APPROACHES.........................................................................172.1 WORK PLAN AND SCHEDULES.................................................................................172.2 APPROACHES AND ACTIVITIES................................................................................19

3 ASSESSMENT OF CURRENT CONDITIONS........................................................233.1 COMPANY PROFILES.................................................................................................233.2 POWER USAGES.........................................................................................................273.3 NRW STATUS...............................................................................................................30

4 ESTIMATED TARGETS AND VALIDATION...........................................................334.1 SUMMARY OF ESTIMATED TARGETS......................................................................33

4.1.1 Targets of NRW Reduction....................................................................................344.1.2 Targets of Energy Saving......................................................................................374.1.3 Basic Information of Estimated Targets.................................................................39

4.2 VALIDATION.................................................................................................................394.2.1 Pilot Testing Programs..........................................................................................404.2.2 Results of Pilot Testing..........................................................................................42

4.3 COST BENEFIT ANALYSIS.........................................................................................434.4 MANAGEMENT ACTION PLANS.................................................................................46

5 SUMMARIES AND RECOMMENDATIONS............................................................485.1 SUMMARIES.................................................................................................................485.2 RECOMMENDATIONS.................................................................................................51


LIST OF TABLES

Table 1-1 Summary of GDP and Population in Liaoning and Project Cities...............................15Table 3-1 Basic Information of All WSCs....................................................................................23Table 3-2 NRW Status and Pressure Setting for All WSCs.........................................................24Table 3-3 Historical Power Usage, Electricity Fees and O&M Costs for All WSCs.....................25Table 3-4 Average Power Usage, Electricity Fees and O&M Costs for All WSCs......................26Table 3-5 Historical Power Usages for All WSCs........................................................................29Table 3-6 Historical NRWs for All WSCs.....................................................................................31Table 3-7 Categories of NRW in 2016 for All WSCs...................................................................32Table 4-1 Targets of NRW Reduction in Various Categories, %.................................................34Table 4-2 Annual NRW Reduction for all WSCs, %....................................................................36Table 4-3 Annual Water Saving for all WSCs, m3/year...............................................................37Table 4-4 Annual Energy Saving Targets for All WSCs, kW-h/year............................................37Table 4-5 Projections of Water Produced and Water Sold for all WSCs.....................................38Table 4-6 Estimates of Energy Consumption per Unit Water Sold for WSCs, kW-h/m3.............38Table 4-7 Summary of Rehabilitation Works for All WSCs..........................................................39Table 4-8 Representative Case Studies and To-be-Rehabilitated Project Components............41Table 4-9 Summary of Communities and Secondary BPSs To-be-Rehabilitated.......................42Table 4-10 Estimated Deviation for Scenarios of Case Studies..................................................43Table 4-11 Estimate of ROIs for Secondary BPSs To-be-Rehabilitated.....................................45Table 4-12 Estimate of ROIs for CSP To-be-Rehabilitated.........................................................45Table 4-14 Relevant Management Action Plans for Sceondary BPSs To-be-Rehabilitated.......47Table 4-15 Relevant Management Action Plans for CSPs To-be-Rehabilitated.........................47

LIST OF FIGURES

Figure 1-1 Performance of NRW (Top and Bottom Five Provinces) in China.............................15Figure 1-2 Geographical Locations of Liaoning and Five Project Cities......................................15Figure 1-3 Per Capita GDP for all Project Cities.........................................................................16Figure 2-1 Cycling Process for Working Plan and Approach......................................................19Figure 3-1 Historical Basic Operational Indicators for all WSCs.................................................27Figure 3-2 Percentages of Major Power Usage for all WSCs.....................................................31Figure A-1 Typical Pump Curve for Centrifugal Pump................................................................85Figure A-2 Characteristics of Multiple Pump Curves...................................................................85


LIST OF APPENDIXES

Appendix I Detailed Approaches and Methodologies

Appendix II Sample Questionnaires

Appendix III Representative Photos of Field Visit to All WSCs

Appendix IV Basic Information of WSCs

Appendix V-1 Estimates of Historical NRW Breakdowns

Appendix V-2 Historical Power Usage and Percentage Estimates

Appendix VI Detailed Breakdown of estimated targets

Appendix VII Case Studies of Rehabilitated and To-be-Rehabilitated

Appendix VIII Monitoring Data of Case Studies for Rehabilitation

Appendix IX Design Considerations for Pumping Station


ABBREVIATIONS AND ACRONYMS

BPS – booster pumping station

CCR – central control room

CSP – community service pipelines

DI – design institute

DMA – district metering area

ESMAP – Energy Sector Management Assistance ProgramEnergy Saving Management Action Plan

FSR – feasibility study report

GDP – gross domestic product

GHG – greenhouse gas

GIS – geographic information system

MoHURD – Ministry of Housing, Urban-Rural Development

NRW – non-revenue water

O&M – operations and maintenance

PBC – performance based contract

PPMO – provincial project management office

ROI – return on investment

TA – technical assistance

VFD – variable frequency drive

WSC – water supply company

WSP – water supply plant

WWTP – wastewater treatment plant

TA of Liaoning ESMAP

EXECUTIVE SUMMARY

China’s rapid economic development has also resulted in natural resource depletion. In response, China has intended to improve its energy efficiency, control energy consumption, and reduce pollutant discharge through a series of related policies, since 1986. All efforts were trying to speed up a transition to the use of energy-saving technologies, adjust energy intensive industrial production structures and reduce the number of high-energy consumers. Later in 1997 and 2000, National People’s Congress, National Development and Reform Commission and the State Economic and Trade Commission adopted and promulgated the relevant laws and directives to strengthen energy saving management, improve energy efficiency, promote the rational use of electric energy, reform the energy structure, and ensure sustainable development of the economy.

Since then, a series of regulations and circulars were inaugurated or announced for better energy management, especially for certain industries with high energy consumptions and those that needed to improve the efficiency of power use in production, such as efficiency of boilers, furnaces, and other high power-using equipment, etc. Reduction of production waste has also been aggressively promoted to save energy. In recent years, efforts have also focused on energy saving improvements in commercial buildings and housing development projects.

BACKGROUND

Since the late 1980s, thousands of municipal water supply plants (WSPs) and wastewater treatment plants (WWTPs) have been constructed in China to cope with rising water demand and wastewater generation. Water supply and wastewater treatment facilities around the world consume significant amount of energy and contribute to large quantities of greenhouse gas (GHG) emissions. Typically, the costs of power consumption are a significant portion of the total operations and maintenance (O&M) costs for most municipal WSPs and WWTPs in China. It is anticipated that energy costs will gradually increase, mainly due to more stringent environmental regulations for power supply as well as the associated labor cost increases as living standards rise with continued economic development in China.

For water supply companies (WSCs), power consumption is mainly driven by the pumping required for water intake and water distribution. It is clear that the majority of water distribution pipelines are pressurized systems that require significant energy. Another issue is the high levels of non-revenue water (NRW) – i.e. huge volumes of water lost through leaks, not billed, or inefficiently managed. This is also a waste of the energy used to pump and treat water supplies. Finding an effective way to reduce NRW can significantly improve the performance of public water utilities. Once NRW is reduced, energy efficiency is improved, GHG emissions are reduced, and the financial performance of providers improves concurrently.

Prior to economic reforms in the late 1970s in China, Liaoning was one of the country’s major industrial centers, focusing on heavy industry and mining; and the province was one of China’s


most urbanized provinces. By 2016, Liaoning had a total population of 43.75 million, ranking 14th in China, of which 67.4% lived in urban areas. The Government of China has prioritized the rejuvenation of the northeast provinces, including Liaoning Province.

A new law, CJJ92-2016 “Loss Control and Evaluation Standard for Urban Water Supply Network” was announced in 2016 and specifically sets a target for NRW reduction. Consequently, Liaoning Provincial Government has issued a similar law for all cities in Liaoning to fulfill such requirements. Both Central Government and Provincial government laws set aggressive targets for NRW at 20% and 15% by 2017 and 2020, respectively for all WSCs.

In order to cope with the newly inaugurated law and regulation by the Chinese Central Government, particularly for NRW reduction and associated energy saving, Liaoning is gearing up to obtain a World Bank loan for five of its cities. These five cities include the provincial capital (Shenyang), three municipality (Anshan, Fushun and Fuxin) and the county-level city Gaizhou (under Yinkou City). The proposed development objectives of this project are to improve water quality and operational efficiency of selected water utilities in the project areas including development of a NRW reduction plan plus an energy saving plan, considering the existing and planned water supply expansion in Liaoning. These activities will be implemented within the next five years through new lending from the World Bank funded project, the Liaoning Safe and Sustainable Urban Water Supply Project (Project).

OBJECTIVE

In order to assist WSCs to better prepare the Project, this technical assistance (TA) activity has been funded by the Energy Sector Management Assistance Program to assist Liaoning provincial project management office (PPMO) and all of the five water supply companies (WSCs) to evaluate their current situation of NRW and energy consumption. These initial self-evaluations and findings, have helped to make further assessments of the right targets for NRW reduction and energy savings for all WSCs under the World Bank loan.

The primary objectives of this TA are to assist all of the WSCs to explore potential energy savings under the Project, and also to function as a pilot/demonstration for others to learn or use as reference. Other elements of energy management and NRW reduction, including the distribution system reconfiguration and pressure management, were not pursued in this TA. Further complementary and comprehensive energy management and NRW reduction plans will be developed later under the Project.

The key outputs of the TA include a summary of findings and an assessment of achievable targets for both NRW reduction and energy saving. These will also include recommendations to include in current energy saving efforts, or as activities in the future energy saving management action plans (ESMAP) to be developed during the project implementation.


WORKING PLAN AND ACTIVITIES

In accordance with the terms of reference, the main objectives of the TA are to develop effective NRW reduction and energy saving plans for all WSCs. These efforts will consider the planned water supply system expansion for the five project cities in Liaoning to be implemented within the next 5 years through the new World Bank loan project. Major tasks of the TA include: i) conducting workshops to brief participants on the objectives and planned activities of the TA; ii) identification of candidate facilities & equipment for potential energy saving; iii) collecting initial operations data to assess the situation of each WSC; iv) conducting an energy audit of specific energy consumption elements; v) assisting in setting targets for energy savings, including NRW reduction; vi) development of pilot program including database, facilities, areas or equipment and devices; and interview with utility managers; vii) compiling the monitoring data collected, and evaluating the energy savings to be achieved; viii) assessment of results of the pilot testing and development of recommendations for long-term approaches to energy saving; and discussion of findings with utility managers; ix) preparation of draft final report (DFR) and revision as final report; and x) conducting a final workshop in Liaoning to disseminate the findings and recommendations

ASSESSMENT OF CURRENT CONDITIONS

In order to demonstrate the overall performance of each WSC, relevant questionnaires were developed to collect the historical and current operation records including basic information of each WSC. Draft questionnaires were initially provided for all WSCs to seek for their feedback, and then used as the basis for discussion with the relevant design institute (DI) to finalize the feasibility study reports (FSRs) and relevant performance indicators for the World Bank loan project preparation.

Through several meetings, workshops, and detailed discussions about the historic data collected, questionnaires were finalized for each WSC based on individual characteristics of all WSCs. Based on the collected data, summaries of company profile, NRW status, and energy consumption for all WSCs are described in Section 3.

ESTIMATED TARGETS AND VALIDATION

Typically, equipment repair and/or replacement can contribute directly to energy savings, especially for secondary booster pumping stations (BPSs). In addition, the water savings from NRW reduction, have indirect benefits on energy saving, which can be studied and quantified. In this way, targets for NRW reduction and energy saving via the World Bank loan were estimated for each WSC based on their specific context and implementation plans. Yet, certain categories of these potential saving were not easily performed and validated through the pilot testing program. Thus, in order to easily identify and quantify potential savings on water and energy, secondary BPSs and CSP were selected as the major targets for this TA.


Using the loan and available counterpart funds, each WSC will develop rehabilitation programs for transmission and distribution pipelines, including the installation or replacement of meters (i.e. replacing malfunctioning meters or installing for non-metered connections). Table E-1 summarizes the NRW reduction targets for all WSCs.

Table E-1 Targets of NRW Reduction in Various Categories, %

Categories / WSCs Anshan Fushun Fuxin Gaizhou ShenyangTotal NRW 6.41 16.36 8.68 28.00 3.20

Transmission Main Loss 2.40 0.37 2.00 3.00 1.46Community Pipeline Loss 2.10 14.75 5.11 4.00 0.84

Water Supply Loss 4.50 15.12 7.11 7.00 2.30 Note: “Water Supply Loss” considers only losses from transmission main and community pipeline

Based on the project implementation plan for each WSC, targets of annual NRW reduction are summarized in Table E-2 to layout the planned annual targets in the next five years starting from 2018.

Table E-2 Annual NRW Reduction for all WSCs, %

WSC / Year 2016 2017 2018 2019 2020 2021 2022 ReductionAnshan 30.90 29.00 28.00 27.00 26.00 24.00 24.00 6.90Fushun 38.80 37.00 33.00 29.00 25.00 23.50 22.13 16.67Fuxin 25.70 25.70 24.00 22.00 20.00 18.00 16.20 9.50

Gaizhou 64.10 64.10 57.98 48.42 37.56 35.10 35.10 29.00Shenyang 33.00 33.00 32.98 32.38 30.98 30.11 29.80 3.20

Note: These NRW reductions are achieved only via World Bank loan

Based on these assumptions, ROIs for both project components of secondary BPSs and CSPs were estimated and are shown in Tables E-3 and E-4. All of the estimated ROIs for all WSCs (and based on the assumptions for estimated CAPEX with OPEX savings) are not as high as expected, mainly due to combination of high CAPEX and low OPEX saving.


Table E-3 Estimate of ROIs for Secondary BPSs To-be-Rehabilitated

Categories / WSCs Anshan Fushun Fuxin Gaizhou Shenyang

BPS, stations 80 70 9 14 99OPEX Saving, RMB/year 1,144,500 1,663,200 169,000 190,800 2,551,900Estimated CAPEX, RMB 23,920,000 26,576,000 2,200,000 3,680,000 35,616,000

ROI1, % -0.22% 1.26% 2.68% 0.18% 2.17%ROI2, % 0.32% 1.95% 3.54% 0.76% 2.96%ROI3, % 0.85% 2.65% 4.39% 1.34% 3.76%ROI4, % 1.38% 3.34% 5.24% 1.91% 4.55%

Secondary BPSs to-be-rehabilitated

Notes: 1. denotes scenario #1 for system has no residual value after serving 20 years 2. denotes scenario #2 for scenario #1 plus estimated CAPEX 10% less 3. denotes scenario #3 for scenario #2 plus 10% more OPEX saving 4. denotes scenario #4 for scenario #2 plus 20% more OPEX saving

Table E-4 Estimate of ROIs for CSP To-be-Rehabilitated


Communities, places 28 271 48 41 63OPEX Saving, RMB/year 3,000,800 27,843,100 5,932,600 3,638,700 6,510,800Estimated CAPEX, RMB 41,312,000 288,696,000 53,088,000 97,904,000 57,120,000

ROI1, % 3.93% 6.31% 7.84% 0.38% 8.07%ROI2, % 4.74% 7.38% 9.08% 0.80% 9.33%ROI3, % 5.54% 8.45% 10.33% 1.21% 10.60%ROI4, % 6.35% 9.53% 11.57% 1.62% 11.86%

Community Service Pipelines to-be-rehabilitated


In order to ensure that all of the proposed investments can be implemented as planned, certain activities should be organized parallel to the Project preparation. According to the current conditions of each WSC and their future plans, relevant management action plans have been proposed and are shown in Tables E-5 and E-6. In addition, all WSCs should look into capacity building for all these activities during the project implementation, especially for the staffing development plan, in order to facilitate these elements with high efficiencies.


Table E-5 Relevant Management Action Plans for Sceondary BPSs To-be-RehabilitatedManagement Action Plans / WSCs Anshan Fushun Fuxin Gaizhou Shenyang

conducting inventory of equipment/device and assessment if control mechanism for all existing secondary BPSs vu u u u u

collecting water usage data (year long if possible), especially the peak and low demand to assess individual design scenario for all BPSs vu u u u u

re-assessing all rehabilitated BPSs to ensure their design approach are sound, then to optimize their performance vu mu u vu vu

prioritizing all BPSs based on rehabilitation schedule of community service pipelines to optimize overall water and energy saving u u u u u

re-evaluating the distribution system pressure setting to capitalize the available head to generate more energy saving u mu u u vu

while current plan to rehabilitate only small portion of secondary BPSs, developing a long-term rehabilitation plan is necessary u mu mu vu vu

re-evaluating the engineering cost estimates for all secondary BPSs to-be-rehabilitated to optimize the most cost effectiveness vu vu vu vu vu

identifying all possible savings from better BPS design and performance, less staffing owing to automation to create more project benefits vu vu vu vu vu

developing an implementation plan for rehabilitation of secondary BPSs, especially those who has many BPSs to-be-rehabilitated or little experience vu u u vu vu

evaluating the overall pumping system upgrade and modification per achievable NRW reduction, so to optimize the energy usage efficiency mu mu mu mu mu

Rehabilitation of Secondary BPSs

Note: "vu" denotes very urgent; "u" denotes urgent; and "mu" denotes moderately urgent in the action plan priority recommendations

Table E-6 Relevant Management Action Plans for CSPs To-be-RehabilitatedManagement Action Plans / WSCs Anshan Fushun Fuxin Gaizhou Shenyang

re-assessing all rehabilitated community service pipelines to ensure the existing NRWs are meeting the original design requirements u u u u u

prioritizing all communities based on their NRW situations and coping with the rehabilitation schedule of secondary BPSs u u u u u

considering to complete the not-fully rehabilitated community service pipelines so to ensure NRW targets are meeting original design mu mu mu mu mu

re-evaluating the engineering cost estimates for all community service pipelines to-be-rehabilitated to optimize the most cost effectiveness vu vu vu vu vu

identifying all possible savings from higher NRW reduction, less staffing and possible DMA establishment to create more project benefits vu vu vu vu vu

communicating with the community service pipelines to-be-rehabilitated to minimize any objections during pipe/meter installations mu mu mu mu mu

developing a public campaign program to announce the possible schedules for rehabilitation of the relevant community service pipelines mu mu mu mu mu

evaluating the most achievable DMAs to be setup with those community service pipelines to-be-rehabilitated particularly u vu u vu u

developing an implementation plan for rehabilitation of community service pipelines, especially those who has many communities or little experience u vu mu vu u

setting up an achievable NRW reduction target so that the water saving can accelerate the energy saving altogether mu mu mu mu mu

Rehabilitation of Community Service Pipelines

Note: "vu" denotes very urgent; "u" denotes urgent; and "mu" denotes moderately urgent

SUMMARY OF FINDINGS AND RECOMMENDATIONS


Based on the historical data assessment, field visits to the existing WSPs, secondary BPSs and communities rehabilitated and to-be-rehabilitated, and meetings with relevant personnel at each of the WSCs, a summary of the general challenges and issues to be addressed include the following: i) high NRW per historical data; ii) pressure settings affecting secondary BPSs; iii) existing conditions of CSP; iv) major energy consumptions for WSCs; v) inadequate pressure management; vi) lack of attention to leak detection; vii) jurisdiction of CSP and secondary BPSs; viii) Inadequate performance of secondary BPSs; ix) poor condition of produced water storage tanks; x) pilot testing programs for both NRW reduction and energy saving; xi) significant numbers of rehabilitation work; xii) cost effectiveness for both NRW reduction and energy saving approaches, etc.

In accordance with these findings, the list of general recommendations for all WSCs to make energy-saving improvements in their water supply systems include the following:

i) Perform thorough assessment of historical operation data, and inventory of facilities; ii) Acquire leak detection and monitoring equipment and devices;iii) Continue pilot testing programs; iv) Conduct public awareness and early communication targeting at community

households for rehabilitation of CSP; v) Establish and enforce a DMA program, with flow meters and pressure regulating

valves; vi) Develop long-term leak detection and monitoring programs; vii) Establish a program to Optimize NRW reductions; viii) Fine-tune the design and operations of secondary BPSs; ix) Set-up adequate staff training programs; x) Utilize GIS and hydraulic models to optimize operations; xi) Separate pressure zones and user-pay principle; and xii) Employ Performance-based Contracts in utility procurement.


1 BACKGROUND AND OBJECTIVE

1.1 INTRODUCTION

Mainly due to China’s rapid economic development and the resulting natural resource depletion, China has been aiming to improve energy efficiency, control energy consumption, and reduce pollutant discharges through a series of related policies. In 1986, the Chinese State Council promulgated the “Provisional Regulations on Energy Conservation Management” and the “Blue Book of China's Technical Policy – Energy” to ensure the focus on innovation and energy saving in the national economy. The State Council emphasized the need to strengthen research, development and the promotion of energy saving through the application of new technologies, equipment, and materials. These efforts were expected to speed up a transition to the use of energy saving technologies, adjust energy intensive industrial production structures, and reduce the number of high energy consumers in China.

In November 1997, the National People’s Congress adopted the Energy Conservation Law1 of the People’s Republic of China to promote the conservation of energy in society as a whole by improving energy efficiency, protecting and improving the environment, and promoting comprehensive and sustainable social and economic development. The law highlighted energy saving as a long-term strategic policy of national economic development. In March 2000, the China National Development and Reform Commission and the State Economic and Trade Commission jointly promulgated the “Measures of Management of Electricity Consumption” to strengthen energy saving management, improve energy efficiency, promote the rational use of electric energy, reform the energy structure, and ensure sustainable economic development. This directive stipulated that power users shall follow the relevant provisions, such as taking economically reasonable, technically feasible, and environmentally sound measures of power conservation, to develop energy conservation planning and consumption goals.

Since then, a series of regulations and circulars were inaugurated or announced for better energy management, especially for certain industries with high energy consumption, as well as for those that need to improve the energy efficiency in their production processes (such as efficiency of boilers, furnaces, and other high power usage equipment). Reduction of waste in production has also been aggressively promoted to save energy. In recent years, efforts have also focused on energy saving improvements in commercial buildings and housing development projects.

1.2 BACKGROUND

Since the late 1980s, thousands of municipal water supply plants (WSPs) and wastewater treatment plants (WWTPs) have been constructed to cope with rising water demand and wastewater generation. Total water production for municipalities in China reached 56.05 billion 1 The Law was revised in October 2007 first and again in July 2016 to cope with the overall development of China

the last two decades.


cubic meters (m3) in 2015, with approximately 710,000 kilometers (km) of water distribution pipelines. At the same time, a total of 42.88 billion m3 of municipal wastewater was treated, and 540,000 km of sewer networks were in place – according to the urban and township construction statistical report published by the Ministry of Housing and Urban-Rural Development of China (MoHURD).

Water supply and wastewater treatment facilities around the world consume significant amount of energy and contribute to large quantities of greenhouse gas (GHG) emissions. Typically, the cost of power consumption makes up a significant proportion of the total operations and maintenance (O&M) costs for most municipal WSPs and WWTPs in China. It is anticipated that energy costs will gradually increase due to more stringent environmental regulations for power supply as well as the associated labor cost increases due to living standard adjustments driven by continued economic development in China.

For water supply companies (WSCs), power consumption is mainly driven by the pumping required for water intake and water distribution. It is clear that the majority of water distribution pipelines are pressurized systems that require significant energy. Another issue is the high levels of non-revenue water (NRW) – i.e. huge volumes of water lost through leaks, not billed, or inefficiently managed. This is also a waste of the energy used to pump and treat water supplies. Finding an effective way to reduce NRW can significantly improve the performance of public water utilities. Once NRW is reduced, energy efficiency is improved, GHG emissions are reduced, and the financial performance of providers improves concurrently.

Prior to economic reforms in the late 1970s in China, Liaoning was one of the country’s major industrial centers, focusing on heavy industry and mining, and was one of China’s most urbanized provinces. In Liaoning, urban populations settled in a number of medium-sized cities whose economies were anchored around a small number of state-owned industrial and mining enterprises. By 2016, Liaoning had a total population of 43.75 million, ranking 14th in China, of which 67.4% live in urban areas. In recent years, the Government of China has prioritized the rejuvenation of the northeast provinces, including Liaoning Province.

Water scarcity is recognized as a growing concern, especially in the northeastern provinces of China. Due to over-extraction and pollution of groundwater, Liaoning has taken strong measures to phase out all groundwater use by 20202. A large project to divert raw water from the Dahuofang Reservoir (located in Fushun, Liaoning) has been developed to facilitate this shift away from groundwater. The Dahuofang Water Diversion Project will supply 1.79 billion m3/year of raw water to the cities of Anshan, Fushun, Liaoyang, Panjin, Shenyang, and Yingkou3. In this development, most cities will convert their raw water sources from groundwater to surface water; and as a result, the original water treatment processes will need

2 Provisions of Liaoning Province on Banning Groundwater Extraction Liaoning Groundwater, Order of the People's Government of Liaoning Province No. 225, March 3, 2011

3 Four project cities under the World Bank loan are benefitting from the Project: Anshan, Fushun, Shenyang and Gaizhou (under Yingkou)


to be adjusted, and less water intake pumping will be required. These changes will also impact the energy use of the water utilities.

Energy costs for water utilities in developing countries, such as China, are typically up to 40% or more of the total cost of O&M. This energy use is predominantly from water intake and distribution pumping requirements4. The energy consumption per m3 of water produced for Liaoning WSCs is about 0.51kW-h/m3, which is much higher than the national average5 of 0.35 kW-h/m3. This is primarily due to high water intake and distribution pumping, but also include factors such as the aging distribution mains and pipelines, as well as inefficiencies in pump operations and inadequate pressure management in the systems.

These inefficiencies are all worsened by high levels of non-revenue water (NRW). Based on data analysis in the 2013 Statistics of Urban Water Supply, average NRW in China was 22.5% 6. For the three provinces in northeastern China, NRW averaged over 30.0%. And in Liaoning, NRW is about 32.0%.

China recently inaugurated a new law, CJJ92-2016 “Loss Control and Evaluation Standard for Urban Water Supply Network” in 2016 that specifically set targets for NRW reduction following the “Water Ten Clauses”7. Consequently, Liaoning Provincial Government has issued a similar law for all cities in Liaoning to fulfill such requirements. Under both of these laws, the targets for water supply losses (i.e. NRW) are set at 20% by 2017, and 15% by 2020, for all WSCs.

Figure 1-1 presents the average NRW of the top five and bottom five provinces in China. Liaoning ranks second to last in the bottom five level. It is apparent that Liaoning must conduct immediate and effective actions to reduce its water losses, not only to achieve its water resource management plan but also to meet the the objectives of the National and Provincial Government’s aggressive targets for NRW reduction.

4 A Primer on Energy Efficiency for Municipal Water and Wastewater Utilities, ESMAP Technical Report, February 20125 Kate Smith et al “Impact of urban water supply on energy use in China: a provincial and national comparison”,

Springer Science and Business Media, Dordrecht 20156 It was reported that the total urban water supply in China was up to 38.65 billion m3 in 2012 and total water sold

for 29.96 billion m3 which equivalents NRW of 8.69 billion m3 at about 22.5% of NRW ratio (reference: 2013 Urban Water Supply Statistical Yearbook).

7 CJJ92-2016 is the updated version of CJJ92-2002 in coping with another major law “The Action Plan for Prevention and Treatment of Water Pollution” also called “Water Ten Clauses” which are focusing on reducing pollutants, improving the quality of drinking water, and promoting water saving, etc.


Figure 1-1 Performance of NRW (Top and Bottom Five Provinces) in China

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%

Estimated NRW in 2012

In order to cope with the newly inaugurated law and regulation by the Chinese Central Government, particularly on the NRW reduction and associated energy saving, Liaoning is gearing up to obtain a World Bank loan for five of its cities, ranking from the provincial capital (Shenyang), and three municipalities (Anshan, Fushun, Fuxin), to the county-level city Gaizhou under Yinkou City. Under this project, the proposed development objectives are to improve water quality and operational efficiency of selected water utilities in the project areas including development of a NRW reduction plan plus an energy saving plan, considering existing and planned water supply expansions in Liaoning. These activities will be implemented within the next five years through new lending of the World Bank funded project, the Liaoning Safe and Sustainable Urban Water Supply Project (Project).

Geographically, Liaoning is situated in the northeast of China, sharing a border with North Korea to the southeast, Hebei province to the southwest, Inner Mongolia to the northwest and Jilin Province to the northeast. Figure 1-2, shows the five project cities who will utilize the World Bank loan to improve their overall company performance in water and energy saving.

Figure 1-2 Geographical Locations of Liaoning and Five Project Cities

Note: Five project cities: [1] Anshan, [2 Fushun], [3] Fuxin, [4] Gaizhou, [5] Shenyang


Liaoning

5

1

23

4

According to basic statistics8 for Liaoning and the other project-related cities, the population and GDP in 2015 for Liaoning Province and five project cities are listed in Table 1-1. It is obvious that Shenyang is much more economically developed than Anshan, with Fushun and Fuxin falling below Anshan, and Gaizhou is much further behind.

Table 1-1 Summary of GDP and Population in Liaoning and Project CitiesProvince/Cities Liaoning Anshan Fushun Fuxin Gaizhou Shenyang

GDP/year, $ million 408,942.9 33,557.1 18,237.1 8,660.0 2,714.3 101,410.0population, million 43.7 3.5 2.3 1.9 0.7 7.4

As shown above, five project cities can also be categorized by three administrative levels: the provincial capital (Shenyang), three prefectural cities (Anshan, Fushun and Fuxin), and one county-level city (Gaizhou). Per capita GDP is presented in Figure 1-3 for all project cities, where Shenyang has GDP over the Liaoning average; while Anshan and Fushun have GDP around the Liaoning average, and Fuxin and Gaizhou are below the Liaoning average.

Figure 1-3 Per Capita GDP for all Project Cities

02,0004,0006,0008,000

10,00012,00014,000

GDP/capita, $

1.3 OBJECTIVES

It is apparent that none of WSCs under this Project will be able to meet the 2020 requirements per CJJ92-2016. Thus, it is strongly suggested that all WSCs focus on their facility plans and develop engineering projects to meet these requirements with whatever support and/or necessary funds required. The World Bank funded Project helps these cities and their WSCs in their efforts.

In order to assist the WSCs to better prepare for the Project, this technical assistance (TA) activity has been funded by the Energy Sector Management Assistance Program (ESMAP)9, and is meant to assist Liaoning provincial project management office (PPMO) and all five of the

8 Annual Statistical Yearbook 2016, Liaoning province and cities of Anshan, Fushun, Fuxin, Gaizhou and Shenyang


water supply companies (WSCs) to evaluate their current situations of NRW and energy consumption. These initial self-evaluations and findings, have helped to make further assessments of the right targets for NRW reduction and energy savings for all WSCs under the World Bank loan.

The primary objectives of this TA are to assist all of the WSCs to explore potential energy savings under the Project, and also to function as a pilot/demonstration for others to learn or use as reference. Other elements of energy management and NRW reduction, including the distribution system reconfiguration and pressure management, were not pursued in this TA. Further complementary and comprehensive energy management and NRW reduction plans will be developed later under the Project.

The key outputs of the TA include a summary of findings and an assessment of achievable targets for both NRW reduction and energy saving. These will also include recommendations to include in current energy saving efforts, or as activities in the future energy saving management action plans (ESMAP) to be developed during the project implementation.

9 ESMAP is a global multi-donor technical assistance trust fund administered by the World Bank. It provides analytical and advisory services to low- and middle-income countries to increase their know-how and institutional capacity to achieve environmentally sustainable energy solutions for poverty reduction and economic growth.


2 WORKING PLAN AND ACTIVITIES

In accordance with the terms of reference, the main objective of the TA is to develop effective NRW reduction and energy saving plans for all WSCs. These efforts will consider the planned water supply system expansion for the five project cities in Liaoning that will be implemented within the next five years through the new World Bank loan project. Major tasks of the TA include:

conducting workshops to brief participants on the objectives and plans for the TA identifying candidate facilities and equipment for potential energy savings collecting initial operation data to assess the situation of each WSC conducting an energy audit of specific energy consumption elements assisting in setting targets for energy saving, including NRW reduction developing pilot programs, including database, facilities, areas or equipment and

devices; and interviewing utility managers compiling monitoring data collected, and evaluating the potential energy to be saved assessing the results of pilot testing, and developing recommendations for long-term

approaches to energy savings; and discussing findings with utility managers preparing a draft final report (DFR) and revising as a final report conducting a final workshop in Liaoning to disseminate the findings and

recommendations

2.1 WORKING PLAN AND SCHEDULES

Based on the scope of work for the Liaoning ESMAP TA, relevant work plans for eight milestone functions were developed, including: i) initial and follow-up workshops with field visits; ii) questionnaires development; iii) data collection and assessment; iv) energy auditing and case study site visits; v) pilot testing; vi) data compilation and DFR preparation; and vii) final workshop and DFR finalization; viii) peer review and submission of Final Report. In order to assist all of the WSCs during the TA, which was almost in parallel to the World Bank loan project preparation, extra efforts were provided, e.g. reviewing of feasibility study report (FSR), fine-tuning the targets for energy saving and NRW reduction, and workshop for basic requirements for a decent engineering cost estimates, etc. Details of the methodology and approach for the work plan can be found in Appendix I.

Figure 2-1 presents the process cycle for the work plan and the approaches to deliver the TA. Workshops share the ideas and less-learned for delivering the TA. Data collection and assessment, along with site visits help to develop case studies and pilot testing programs for each WSC. All of these activities provide good feed-back toward the next step, and help to achieve the overall TA activities and outcomes.


Figure 2-1 Cycling Process for Working Plan and Approach

Workshops

Data Collection and

Assessment

Site VisitsCase Studies

Pilot Testing Programs

Energy Saving

Brief descriptions of the milestone activities, and the related schedules of the TA are as below:

1. Conduct workshops to brief objectives of TA, plan for identification of facilities, areas and equipment for potential energy savings and NRW reduction opportunity: an initial workshop was conducted on 2 December 2016 for Liaoning PPMO and all five WSCs; a follow-up workshop was conducted on 13 January 2017 to further present the objectives and approach for the TA of ESMAP.

2. Develop a questionnaire to collecting necessary info/data to identify potential energy savings: a questionnaire was developed to solicit basic information of the WSCs, historical operation records, and including estimates of NRW and energy consumption.

3. Conduct site visits and meetings with utility managers for the pilot testing program: initial site visits to all five WSCs, and meetings with the relevant utility managers were conducted in November 2016 to learn the current operation schemes; second site visits to Anshan, Fushun, Shenyang and Fuxin were conducted in March 2017 to confirm all potential case studies for both NRW reduction and energy savings.

4. Conduct a self-evaluation energy audit for major energy consumption elements: questionnaires for basic information and energy consumption records from the major WSPs of all the WSCs were provided in early January 2017; additional feedback was provided and evaluated in early March 2017 and finalized in April 2017.

5. Develop a pilot program for facilities, equipment, and devices: after the site visits and an assessment of the questionnaires, initial pilot testing programs were discussed with all WSCs in March 2017, and historical operation data began to be collected as the baseline for future pilot testing programs; data collected for actual case studies as rehabilitated and to-be rehabilitated for CSP (for NRW reduction) and secondary booster pumping stations (for energy saving) were further evaluated and re-confirmed in April 2017.


6. Compile monitoring data and evaluate the savings to be achieved: with all NRW reduction and energy saving monitoring data collected from December 2016 to August 2017, assessment of these reductions and savings were summarized to provide the basis for preparing the DFR.

7. Conduct final workshop to disseminate the findings and recommendations: the final workshop was conducted on 21 and 22 September 2017 to disseminate the findings of TA of ESMAP for Liaoning and recommendations related to long-term approach of NRW reduction and energy savings for all WSCs; feedback and findings/recommendations agreed-upon with the Liaoning PPMO and all WSCs were to be summarized in the DFR

8. Draft and revise the TA project final report: a draft final report (DFR) was submitted by 30 September 2017, and then comments from reviewers were addressed by 20 October 2017. The final report was submitted by the end of October 2017.

2.2 TA ACTIVITIES

In order to meet all objectives of the TA, relevant activities were carried out, including: i) conducting workshops for all WSCs to understand purposes of the TA and their obligations; ii) development of questionnaires and validation of collected info/data; iii) visiting all pilot testing sites for NRW reduction and energy saving; iv) identifying of possible cause of NRWs and potential energy saving; performing pilot testing programs; v) establishing possible scenarios for workable NRW reductions and energy saving; and vi) developing of management action plans and estimating the associated costs and potential GHG effect.

Workshops were held on several occasions to present the objectives, roles, and responsibilities for the TA of ESMAP to the Liaoning PPMO and all WSCs. Eventually, the PPMO and WSCs would fulfill the necessary obligations and inputs to assess their existing situations and develop their own project implementation plans, particularly on NRW reduction and energy saving. During the TA, three more workshops were conducted mainly to fine-tune the project scope for proposed project components, engineering cost estimates, potential savings on water and energy, case studies for rehabilitation of CSP and secondary BPSs, and estimates of targets for both NRW reduction and energy saving of the Project, etc.

In order to better help each WSC to fulfil their actions and/or activities under the TA, a set of draft questionnaires and instructions was developed as shown in Appendix II. The WSCs would be able to provide all requested data for their facility basic information and historical operational records. Typically, the required information and records were available from routine operational logs and could be retrieved from the management information system within the central control room, except in the case of Gaizhou WSC who has not had such system developed yet.

The questionnaire for basic facilities information and historical operations data included: records on water produced and sold; and energy usage of water intake pumping, water treatment,


distribution and booster pumping. These questionnaires were provided to each WSC to function as the basis for the ESMAP and the backbone of the related FSRs preparation for the Project. Based on the data, information, and documents provided, workshops, meetings, and discussions were held to solicit general and specific comments from each of the WSC and their municipal engineering design institutes (DIs).

In order to identify the possible causes of NRW (particularly pipeline losses), relevant leak detection plans for each WSC were discussed. However, due to inadequate detection equipment, and a lack of experienced technicians to perform such activities, the leak detection results were somewhat unsatisfactory for most of the WSCs. Some WSCs had requested outside help in identifying the potential leaks, yet these results were similarly inconclusive. Thus, the leak detection plans for all WSCs were updated, and specifically outlined new efforts that will be draw from previous lessons-learned as a better and more effective means for future performance.

Most WSCs require booster pumping stations in different parts of their systems (geographic conditions of the service area being an important factor). For all WSCs, major booster pumping stations (BPSs) are not only required along the transmission mains (to maintain basic service pressure), but also secondary BPSs can be used to serve single communities or multiple communities in order to meet minimum pressure requirements as stipulated in the relevant design specifications10. Typically in China, water supply systems need to provide a minimum pressure of 0.28 MPa11 (equivalent to 28 meter above grade) to seventh floor of any building compounds.

Heated and constructive discussions for two targets, NRW reduction and energy saving, were exchanged with Liaoning PPMO and all WSCs during the TA. In addition, previously rehabilitated cases were presented by Fushun and Anshan WSCs as the key references or guidance for those WSCs who have not conducted much of the existing facility rehabilitation. It is critical for the actual rehabilitated cases of water loss reduction and energy saving to serve as the basis for any new project components, so that the new investment can achieve the goal of Project. This comparison activity of facilities rehabilitated and to-be-rehabilitated can be used as reference to estimate the overall project targets, namely the total NRW reduction and energy saving via the World Bank loan.

Field visits to most WSP facilities and representative BPSs were conducted in November 2016. During the TA, another trip to visit rehabilitated and to-be-rehabilitated CSPs and BPSs were conducted in March 2017 to ensure the planned World Bank loan can be utilized for more and better outcomes. Representative photos of these visits can be found in Appendix III. Obviously, most of facilities visited are outdated or aging that all need to have immediate

10 1) GB50013-2006: Outdoor Water Supply Engineering Design Specification; 2) GB50015-2003: Architecture Water Supply and Drainage Design Specification11 1 MPa = 1 Million Pa = 1 Million N/m2


rehabilitation work and equipment repair or replacement. Summaries of these site visits are briefed in general as the followings:

most WSPs have gone through major rehabilitation process already, so only Anshan, Fuxin and Gaizhou require some budget for equipment replacement and structure reinforcement

groundwater extraction and water intake require high energy mainly due to deep well or high elevation of lifting

lack of meters of malfunctioning meters have created major issue of high NRW and possibly misleading the actual situations for both leaking situations for residential or commercial compounds

communities are typically lacking of good flow measurements to provide accurate data for water supplied and sold, and some do not have meters but a flat rate charged to each household monthly or bi-monthly

big portion of CSPs are aging (over 20-year old) and were installed by developers without complying with the code of outdoors domestic water supply requirements

newly installed meters not only need a good location for better management but also require good weather proof, especially during cold winter period

produced water storage tank, either above grade, underground, or within the basement of buildings are mostly aging and sometimes without adequate protection of illegal access or potential sanitation/hygiene issues and toxic/hazard threats

some secondary BPSs were originally installed by contractors either in poor shape or without complying with the code of domestic water supply requirements

lots of pumps, valves and pipes in the visited BPSs are showing rusty and in poor operating condition without adequate ventilation, especially only little space for future improvement

vaults of flow meter or control valve are made of brick typically and either at the brink of collapsing or filled with water which should not be allowed for such incident

transmitting cable within flow meter vaults are sometimes in a chaotic condition and it has also blocked the access to the meters occasionally

Based on the assessment of historical data and current situation of using World Bank loan to facilitate required improvement for all WSCs, it is apparent that there is no single element of causing the high NRW and energy consumptions. NRW reduction from the rehabilitation of CSPs and energy saving from the rehabilitation of the secondary BPSs are more directly and independently than others. Thus, consensus was made for this TA to focus on the effectiveness of water and energy saving via the rehabilitation of CSPs and optimization of power usage from the secondary BPSs, respectively.

In accordance with the pilot testing programs for each WSC, current and historic operations data were collected to validate the proposed targets of NRW reduction and energy saving. These two targets are not only achievable based on the implementation plans respectively for the rehabilitation of CSPs and secondary BPSs as the major targets of this TA but also owing to


their quantifiable benefits. These two elements of the loan project are considering the most critical because of their beneficiaries are so direct impact by their individual performance and also the additional revenue for all WSCs.

In order to ensure results from various pilot testing programs can provide strong basis for validating the proposed targets setup by all WSCs, two scenarios for different period of time were developed. With the comparison for both scenarios, estimates of both NRW reduction and energy saving will be further fine-tuned to meet with their ultimate objectives. Based on both targets to be achieved for NRW reduction and energy saving, associated cost benefit analysis was conducted to offer sensitivity analysis of investment vs. benefits.

Management action plan for both elements were also developed to cope with their estimated targets which return on investments (ROIs) are major concern for their cost effectiveness. Based on the estimated capital investment and saving for bot water and energy, cost benefit analysis will be conducted including sensitivity analysis for potential less investment vs. the higher savings.


3 ASSESSMENT OF CURRENT CONDITIONS

In order to demonstrate the overall performance of each WSC, relevant current and historic data on operations was collected (via questionnaire). Draft questionnaires were initially provided to all WSCs to seek for their feedback, and then used to discuss with the relevant DI to finalize FSRs and establish performance indicators for the World Bank loan project preparation.

Through several meetings, workshops and detailed discussions, the questionnaires were finalized; and the collected data, summaries of company profiles, the NRW status, and the energy consumption levels for all WSCs are described below.

3.1 COMPANY PROFILES

Under the World Bank loan project, five WSCs are striving to reduce their NRW volumes and to improve their associated energy efficiency to meet the related requirements under the “Water Ten Clauses” and CJJ92-2016. Basic information from all WSCs (including their relevant facilities and operational status) are presented concisely in Appendix IV. Using this data, a brief summary of the basic information and NRW status of pipeline loss including pressure settings for water distribution system for all WSCs is summarized in Tables 3-1 and 3-2 below.

Table 3-1 Basic Information of All WSCsItems / WSCs Anshan Fushun Fuxin Gaizhou Shenyang

Established in 1917 1908 1956 1975 1915Current Staff 2,293 1,495 1,769 219 6,662No. of WSPs 4 8 6 2 9

Total Capacities, m3/day 550,000 820,000 350,000 65,000 1,750,000Service Pipelines, km 2,526 2,174 2,225 67 6,800

Major BPSs 2 0 0 0 0Secondary BPSs 336 80 188 52 1,829

Household Served 620,000 600,000 340,000 48,000 2,360,000Population Served 1,580,000 1,260,000 800,000 120,000 5,690,000

Source: data from questionnaires provided all WSCs, July 2017

As presented in Table 3-1, Anshan, Fushun and Shenyang WSCs were all established over a hundred years ago, and their facilities were constructed or installed decades ago, especially within the old city districts which typically have the most populated areas. Three of the WSCs (Anshan, Fushun and Shenyang) are also developing into a water group company as promoted by the government under the reform of state-owned enterprise, as they slowly merge with adjacent WSCs that were originally independent and operating by themselves, and to expand their service area coping with urban development for each city. Fuxin WSC was established in late 1950’s, and originally was responsible for serving the urban areas of the city and certain industries. Though industrial reform has caused the industrial water demand to drop for Fuxin


WSC, the residential water usages have gotten higher, mainly due to service area expansion. Gaizhou WSC was established as the last among the five companies; however, its facility conditions are the worst compared to the others. For example, Gaizhou has the highest NRW. Its service area has been expanding due to urban development, yet aging infrastructure and management is far behind the actual requirements to perform.

Filtration Tanks Chlorination Room

A comparison of average water produced versus the water sold for all WSCs is summaried in Table 3-2. This data shows present levels of NRW, wherein pipeline losses are a major factor in their performance. While Gaizhou WSC has the highest NRW with the smallest water supply system, NRW of Shenyang is not so high, and its water system is the largest among all WSCs. Variable pressure settings define the available head within the water distribution systems, and Fushun provides the highest, while Fuxin the lowest. These pressure settings will determine the distribution pumping performance and ultimately the power usage.

Table 3-2 NRW Status and Pressure Setting for All WSCsItems / WSCs Anshan Fushun Fuxin Gaizhou Shenyang

Water Produced, m3/day 373,950 413,810 224,660 37,000 1,600,000Water Sold, m3/day 258,360 253,260 167,170 13,300 1,072,000

NRW, % 30.91 38.80 25.59 64.05 33.00Pipeline Loss, % 23.70 29.11 20.10 26.10 26.40

Pressure Setting, Mpa 0.20 0.36 0.06 0.18 0.14Source: data from questionnaires provided all WSCs, July 2017

As indicated in Table 3-2 above, the distribution system pressure settings are quite varied. This is basically owing to the nature of water supply system as it was originally designed, especially due to topographic conditions, service coverage, and the location of major users for each WSC. This also means that secondary BPSs have become important for most WSCs, particularly for those that provide low pressure settings, such as Fuxin, Gaizhou and Shenyang.


Central Control Room Pressure Monitoring Room

Based on the data provided, the average power usage per unit water produced, electricity fees and O&M costs are summarized in Table 3-3. The total water production figures are primarily from the questionnaire and data provided during the TA. Total power usage and electricity fees are provided for each m3 of water to end users eventually for each WSC. For total O&M costs, most WSCs were able to separate the staff costs from the other necessary O&M costs related specifically to producing water (except Fushun WSC because of its subsidiary companies would not be able to split their costs for O&M only).

Table 3-3 Historical Power Usage, Electricity Fees and O&M Costs for All WSCsWSCs Categories / Year 2012 2013 2014 2015 2016

Total Water Produced, m3/year 136,780,742 138,362,112 139,613,367 136,492,932 138,633,024Total Power Usage, kW-h/Year 51,916,840 49,925,127 44,956,031 43,008,313 42,813,130Total Electricity Fees, RMB/year 38,664,491 36,270,366 32,612,499 30,428,196 27,403,463Total O&M Costs, RMB/year 43,052,615 44,386,979 69,364,399 74,266,035 71,815,217Total Water Produced, m3/year 153,560,000 153,380,000 152,370,000 151,040,000 147,790,000Total Power Usage, kW-h/Year 64,738,071 66,170,749 64,258,250 58,498,027 54,428,134Total Electricity Fees, RMB/year 42,901,847 43,675,529 42,042,333 38,255,124 35,393,601Total O&M Costs, RMB/year 177,760,000 186,283,000 180,516,000 208,087,000 225,676,000Total Water Produced, m3/year 81,026,642 84,481,867 82,513,623 81,194,865 82,711,622Total Power Usage, kW-h/Year 57,391,068 57,185,820 56,431,776 56,032,440 57,973,272Total Electricity Fees, RMB/year 43,900,913 45,012,592 42,732,571 42,885,291 39,154,041Total O&M Costs, RMB/year 66,725,381 79,644,053 74,618,903 74,860,853 69,575,624Total Water Produced, m3/year 11,290,000 12,045,000 12,775,000 13,505,000 13,505,000Total Power Usage, kW-h/Year 4,311,170 4,954,593 5,586,401 4,994,285 5,436,502Total Electricity Fees, RMB/year 3,448,936 3,963,674 4,469,121 3,995,428 4,349,202Total O&M Costs, RMB/year 5,815,851 6,855,674 8,532,121 6,453,428 6,199,202Total Water Produced, m3/year 486,000,000 495,000,000 535,000,000 575,000,000 584,000,000Total Power Usage, kW-h/Year 294,452,031 301,854,792 299,129,967 303,114,161 300,590,976Total Electricity Fees, RMB/year 215,831,309 230,450,720 241,905,245 200,294,892 185,760,239Total O&M Costs, RMB/year 341,958,000 362,702,000 353,116,100 331,965,400 333,733,789

Anshan

Fushun

Fuxin

Gaizhou

Shenyang

Source: data provided by relevant WSCs in August 2017


Typical Residential Water Bill

In accordance with Table 3-3, the average energy use per unit water produced, average electricity fee per kW-h, and the ratio of electricity fees to O&M costs were estimated and are presented in Table 3-4. For all WSCs, historical relevant operational performance indicators of historical energy usage per unit water produced, average electricity fee per kW-h, and ratio of electricity fees to O&M costs are shown visually in Figure 3-1.

Table 3-4 Average Power Usage, Electricity Fees and O&M Costs for All WSCsCategories / WSCs Anshan Fushun Fuxin Gaizhou Shenyang

Unit Water Produced, kW-h/m3 0.34 0.41 0.69 0.40 0.56Unit Electricity Fees, RMB/kW-h 0.71 0.66 0.75 0.80 0.72Electricity Fees to O&M Costs, % 59.53 20.99 58.63 60.31 62.23

Source: data provided by relevant WSCs in August 2017

Figure 3-1 Historical Basic Operational Indicators for all WSCs


0.2

0.4

0.6

0.8

2012 2013 2014 2015 2016 Average

Power Usage per Unit Water Produced，kW-h/m3

Anshan Fushun Fuxin Gaizhou Shenyang

When comparing to other WSCs in China, the unit power consumption (kW-h/m3) for water produced of 0.56 and 0.69 for Shenyang and Fuxin, respectively, are considered relatively high, mainly due to the high water intake pumping requirements. Fuxin WSC is planning to receive water from a different source, through another Liaoning water diversion project, so its water intake pumping in the future will be much lower. About 60% of the water now produced at Shenyang WSC is provided by two WSCs of a private company under a Build-Operate-Transfer arrangement. When groundwater extraction later decreases owing to the further NRW reduction, its energy consumption for water intake and produced will be significantly lowered. For the remaining three WSCs, their energy consumption will be further lowered with the effective NRW reduction to reduce the power consumptions for all associated pumping stations.

Based on historical (2012~2016) electricity bills, the unit cost of power range from 0.66 to 0.80 RMB/kW-h for the five WSCs. Unit costs have generally increased mainly due to the fat that a majority of power supply companies in China now face more stringent requirements to increase basic charges of power usages. It is notable that the ratio of electricity bill to total O&M costs is over 50% for most WSCs, except for Fushun whose ratio is consistent with other WSCs in China. Fushun WSC is currently trying to reduce its manpower requirements through various re-organizations of subsidiaries and expect to eventually make its operations more consistent with the other WSCs.

3.2 POWER USAGES

Power usage can vary significantly for different WSCs, because of the different needs for water intake pumping, treatment requirements, final distrubution water pumping, and any required booster pumping. With all these different functions, pumping is the largest contributor to power consumption for any WSC. One of the data requests in the questionnaire for all WSCs was for all power usage records for all treatment units. This was used to estimate their relevant power usage patterns. In generally, it is very useful to perform such self-auditing on a monthly to yearly basis to find the relative contributions of total power consumption within an WSC.


0.5

0.7

0.9

2012 2013 2014 2015 2016 Average

Average Electricity Fees，RMB/kW-h


0

20

40

60

80

100

2012 2013 2014 2015 2016 Average

Percentages of Energy to O&M Costs，%


Water Intake Pumps Produced Water Pumps Rehabilitated Secondary BPS

The main objective of the self-auditing is to identify the major power usage of the WSC, and to explore the potential energy savings that can be achieved. In order to assess the power usage for each WSC, historical records of power consumption for all the different power-consuming treatment units were collected. To examine any potential seasonal or annual variations, three different months in 2015 and 2016 were selected from each WSC as the typical power usages for the respective year to evaluate power usage contributions during regular operation.

The major treatment functions studied for each WSC were categorized as: water intake pumping, water treatment (such as chemical pumping, sedimentation, filtration, backwash and disinfection, etc.), finished/produced water pumping, and distribution pumping. Data on these functions are shown and compared in Appendix V-2.

Based on historical monthly data, the average power consumption for various treatment processes at each of the major WSCs is summarized in Table 3-5. Because water treatment technologies vary based on the different sources of water at each plant, the energy requirements will also vary. However, as a percentage of total power usage, the power required for treatment processes is relatively low (typically around 1.0%, except for Fushun which is 3.6%). This low proportion of energy use for water treatment processes is considered unusual when compared to other WSCs. But it is mainly explained due to the high power consumption requirements for water intake pumping (i.e. from the deep groundwater wells, or lifting water to high elevations of reservoirs) and water distribution pumping (i.e. high pressure settings for regular users, and the significant numbers of secondary BPSs), thus relatively energy usage for water treatment is much lower than water intake and distribution pumping.

Table 3-5 Historical Power Usages for All WSCs


Treatment Units / WSCs Anshan Fushun Fuxin Gaizhou ShenyangWater Intake Pumping 1,331,932 2,298,633 926,653 116,110 478,667

Chemical Pumping 9,625 10,800 2,946 0 6,336Sedimentation 2,129 8,333 52,472 0 0

Filtration/Backwash 6,687 20,800 2,920 0 28,672Disinfection 2,954 0 1,681 3,198 182

Produced Water Pumping 786,424 1,384,917 0 0 2,491,833Distribution Pumping 0 229,817 689,586 125,706 0

Total Power Usage 2,139,751 3,953,300 1,676,258 245,014 3,005,689Water Treatment Power Usage 21,395 39,933 60,019 3,198 35,189

% Water Treatment of Total Power Usage 1.01% 1.01% 3.59% 1.31% 1.17%% Water Intake Pumping of Total Power Usage 62.25% 57.88% 55.34% 47.39% 15.90%

% Produced Water Pumping of Total Power Usage 36.74% 35.28% 41.07% 0.00% 82.93%% Distribution Pumping of Total Power Usage 0.00% 5.83% 0.00% 51.31% 0.00%

Summary of Major Equipment Power Usage, kwH/month

Notes: 1. Anshan, Fushun and Fuxin all require high water intake pumping from the relevant reservoirs2. Fuxin maintains high pressure setting to its distribution system3. Gaizhou extracts groundwater and maintains high pressure setting for its distribution system4. Shenyang’s produced water pumping including its pumping requirements for secondary BPSs

Produced Water Storage Tank Secondary BPSs to-be-rehabilitated

As presented in Table 3-5, the major power uses are from water intake pumping for most WSCs except Shenyang WSC, then followed by produced water pumping except Gaizhou WSC. Fuxin WSC requires the most distribution pumping. It is also interesting to note that Fushun WSC consumed the most energy, even higher than Shenyang WSC, even though 60% of its treated water is provided by two WSPs of a private firm via a BOT contract directly, the outsourcing of water supply service did not result in energy savings. In general, these high levels of energy consumption demonstrate that all of the WSCs have high potential for energy savings, especially after NRW is significantly reduced. Relevant percentages of energy usages for water


intake, produced and distribution pumping, and water treatment comparing with the total power usages for all WSCs are also shown in Figure 3-2 for easy comparison purpose.

Figure 3-2 Percentages of Major Power Usage for all WSCs

3.3 NRW STATUS

NRW in water supply systems is typically due to losses from a number of sources: water transmission mains and pipeline leaks, community service pipeline leaks, non-metered water consumption (i.e. theft, broken meters, municipal non-metered use, etc.), and management


1%

62%

37%

Anshan WSC% Water Treatment ofTotal Power Usage

% Water Intake Pumpingof Total Power Usage

% Produced WaterPumping of Total PowerUsage

1%

58%

35%

6% Fushun WSC% Water Treatment ofTotal Power Usage

% Water Intake Pumpingof Total Power Usage

% Produced WaterPumping of Total PowerUsage% Distribution Pumping ofTotal Power Usage

4%

55%

41%

Fuxin WSC% Water Treatment of TotalPower Usage

% Water Intake Pumping ofTotal Power Usage

% Produced Water Pumpingof Total Power Usage

1%

48%

0%

51%

Gaizhou WSC% Water Treatment of TotalPower Usage


% Produced Water Pumpingof Total Power Usage

% Distribution Pumping ofTotal Power Usage

1%

16%

83%

Shenyang WSC

% Water Treatment of TotalPower Usage


% Produced WaterPumping of Total PowerUsage

losses, among others. Historical operations records of the volumes of water produced and sold (2011~2016) were used to estimate the NRW rates for all of the WSCs. This data is shown in Appendix V-1. In recent years, total water production has been growing steadily, and efforts to reduce NRW have been made. All WSCs have been striving to improve their NRW rates, even under the economic down-turn period of the last few years as shown in Table 3-6.

Table 3-6 Historical NRWs for All WSCs

WSCs/Year 2011 2012 2013 2014 2015 2016Anshan 37.00% 35.30% 36.60% 35.60% 30.00% 31.00%Fushun 43.57% 39.98% 39.49% 39.10% 38.80% 38.80%

Fuxin 22.98% 24.33% 26.58% 23.62% 25.42% 26.17%Gaizhou n/a n/a n/a 64.52% 64.88% 64.05%

Shenyang 34.27% 34.35% 34.33% 33.47% 33.25% 33.01% Source: data from questionnaires provided all WSCs, April 2017

As presented in Table 3-6, Gaizhou has the highest NRW among the five WSCs, mainly due to insufficient attention to dealing with malfunctioning and aging water supply systems. Fuxin WSC seems to be doing well on its NRW control, as compared to other WSCs, yet its overall performance is still below the requirement set by the National and Provincial Governments. NRW for Shenyang WSC is only a bit higher than Anshan, yet its daily average water supply is high (1.6 million m3/day), which means daily water losses are almost 0.5 million m3/day. Anshan and Fushun WSCs both have tried reducing NRW via leak detection plans, yet the results have not been convincing. Fushun has made major efforts to rehabilitate its CSPs in order to reduce NRW to the acceptable level.

Dual Flow Meter Vault Flow Meter Vault

It is clear that the majority of water losses are due to pipeline losses which include transmission mains, pipelines, and CSPs for all WSCs as presented in Table 3-7. For Shenyang WSC, the major water losses are due to pipeline losses (26.4% of the total NRW of 33.0%), which is quite significant considering its daily water supply quantity. Also, it is noticeable that Gaizhou WSC has major water losses from non-metered connections and malfunctioning meters – improvement of which would reduce NRW significantly. All five WSCs are having trouble dealing with management losses, and this type of loss will require special attention. In general,


comparing the current situation of NRW to any other WSCs in China, none of the five WSCs meet the basic requirements, and immediate actions are need in order to meet the “Water Ten Clause” and CJJ92-2106 law. Further evaluation of the potential reductions in the various categories is needed to ensure overall NRW reductions can be achieved through the Project implementation.

Table 3-7 Categories of NRW in 2016 for All WSCs

NRW Items/Year Anshan Fushun Fuxin Gaizhou ShenyangPipeline Loss 23.50% 29.10% 20.57% 42.55% 26.40%

Management Loss 5.30% 6.98% 5.00% 4.50% 3.47%No-meter Loss 1.90% 2.29% 0.50% 12.00% 2.31%

Institutional Loss 0.30% 0.43% 0.00% 5.00% 0.83%Others 0.00% 0.00% 0.10% 0.00% 0.00%

Annual NRW, % 31.00% 38.80% 26.17% 64.05% 33.01%Source: data from questionnaires provided all WSCs, April 2017


4 ESTIMATED TARGETS AND VALIDATION

Under requirements of the “Water Ten Clause” and CJJ92-2016 law, all WSCs are gearing up to improve their relevant NRW targets, as set by the Central and Liaoning Provincial Governments, even the government funds are limited to cater for their facility upgrade or replacement which should be implemented much earlier due to the long service years of their outdated facilities. With the potential water savings from NRW reduction, indirect effects on energy saving can also be identified. In addition, equipment repair and/or replacement can contribute to direct energy savings, especially at the secondary BPSs, since they will be required to cope with the community service pipeline improvement projects.

Though NRW reduction targets and energy savings via the World Bank loan were estimated by each WSC based on their own situations and implementation plans, certain categories of these potential saving are not easy to to estimate nor validate through a pilot testing program. Thus, those potential savings of water and energy that were easier to identify and quantify, i.e. at the CSP and secondary BPS, were selected as the major targets for this TA.

In accordance with the NRW reduction targets and energy savings for all WSCs, a cost benefit analysis based on engineering cost estimates was conducted to estimate the ROI of each WSC, including a sensitivity analyses to explore those factors with the most influence on ROI. In addition, relevant management action plans for those CPSs and secondary BPSs to-be-rehabilitated under the project were developed. These action plan will assist planning all necessary activities ahead of project implementation according to the unique characteristics and situations for each WSC.

4.1 SUMMARY OF ESTIMATED TARGETS

NRW reduction targets for each WSC were determined and based on all of the idea exchanges and discussions of this TA. Actual cases of systems rehabilitated for reduced NRW were referenced as the basis for setting the target values under this TA. The reference cases were mostly from CSPs and household connection improvement projects, and from secondary BPS rehabilitation projects that saw decent energy savings.

In accordance with historic operations data and the implementation plan of the World Bank loan for rehabilitating the existing water supply systems at all WSCs, the estimated savings for water and energy in various categories are presented in Appendix VI.

4.1.1 Targets for NRW Reduction

In accordance with assessment of historic data and the necessary actions to meet the requirements of CJJ-92 2016, each WSC has developed their respective approaches to utilize the funds available from the World Bank loan. Using the loan and available counterpart funds, each WSC will develop rehabilitation programs for transmission and distribution pipelines,


including the installation or replacement of meters (i.e. replacing malfunctioning meters or installing for non-metered connections). Table 4-1 summarizes the NRW reduction targets for all WSCs. The total NRW is listed by six different categories to better present the source of losses. This data is also shown in the bar charts below the table. It is notable that Fushun WSC has identified an urgent requirement is to reduce NRW, and Gaizhou WSC has the most urgent requirement for meter installations.

Table 4-1 Targets of NRW Reduction in Various Categories, %

Categories / WSCs Anshan Fushun Fuxin Gaizhou ShenyangTotal NRW 6.41 16.36 8.68 28.00 3.20

Transmission Main Loss 2.40 0.37 2.00 3.00 1.46Community Pipeline Loss 2.10 14.75 5.11 4.00 0.84

Water Supply Loss 4.50 15.12 7.11 7.00 2.30 Note: “Water Supply Loss” considers only losses from transmission main and community pipeline

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In Anshan WSC, water losses from transmission mains and community service pipelines dominate the NRW. Anshan WSC plans to put the majority of effort on these two areas using the World Bank loan. Also, it will make efforts to improve the performance of aging equipment in the WPSs.

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Fushun WSC has identified the main water losses to come from aging community service pipelines, leading to high NRW. So their efforts will primarily focus on this activity. This NRW reduction will also benefit its operation scheme of secondary booster pumping stations, so to ultimately generate significant energy savings.

In Fuxin WSC, water losses from the community service pipelines is the highest among all categories, followed by losses in transmission mains. Both dominate the NRW of Fuxin WSC. Its major effort will be focusing on these two areas using the World Bank loan. Fuxin WSC will also rehabilitate the existing WSP by replacing aging equipment and structures.

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In Shenyang WSC, transmission main losses are the major source of NRW. Shenyang will need to make significant efforts in this area and also in improving the losses from community service pipelines and management for better NRW reduction. As the provincial capital and largest WSC in Liaoning, Shenyang WSC still needs to put in lots of effort in meeting the CJJ92-2016 requirements for NRW reduction in addition to the available World Bank loan.

Gaizhou WSC has the highest NRW among the five WSCs and requires significant rehabilitation work to community service pipelines, especially the new meter installations for non-metered connections and replacement of malfunctioning meters.

Based on the project implementation plan for each WSC, targets of annual NRW reduction are summarized in Table 4-2 to layout the planned annual targets in the next five years starting from 2018. It is clear that Fushun and Gaizhou WSCs are putting significant efforts in NRW reduction, so their energy saving could be relatively substantial owing to this water-saving contribution and the associated decrease in pumping that will be required. Nonetheless, Shenyang WSC needs to explore more effective means to push their NRW reduction further mainly because of its high volume water loss every single day.

Table 4-2 Annual NRW Reduction for all WSCs, %

WSC / Year 2016 2017 2018 2019 2020 2021 2022 ReductionAnshan 30.90 29.00 28.00 27.00 26.00 24.00 24.00 6.90Fushun 38.80 37.00 33.00 29.00 25.00 23.50 22.13 16.67Fuxin 25.70 25.70 24.00 22.00 20.00 18.00 16.20 9.50

Gaizhou 64.10 64.10 57.98 48.42 37.56 35.10 35.10 29.00Shenyang 33.00 33.00 32.98 32.38 30.98 30.11 29.80 3.20

Note: These NRW reductions are achieved only via World Bank loan

In accordance with targets of NRW reduction as indicated in Table 4-2, annual water savings to be achieved by 2022 for all WSCs are estimated in Table 4-3 for all categories. As indicated, most WSCs will still need to explore further optimizations to reduce their NRW in the most effective and efficient manner for the investments.

Table 4-3 Annual Water Saving for all WSCs, m3/year

Categories / WSCs Anshan Fushun Fuxin Gaizhou ShenyangTransmission Main Loss 125,078 5,831 31,979 5,513 637,590

Community Pipeline Loss 109,443 232,443 81,706 7,350 366,832Meter Loss 25,537 4,885 13,111 1,838 0

No-meter Loss 0 0 0 33,077 0Management Loss 44,298 19,541 25,103 5,513 393,035

Others 55,243 0 0 0 0Total Water Saving 359,598 262,700 151,900 53,290 1,397,457

Note: total water saving for all WSCs are based on the estimates of water production and sold in 2022

4.1.2 Targets of Energy Saving

Similar to NRW reduction, each WSC has developed their rehabilitation program for energy saving, especially from equipment repair or replacement and indirect savings from the NRW reductions (i.e. from the resulting decrease in pumping for water intake and distribution, and treatment requirements, etc.).

A detailed breakdown of various energy saving sources (either directly and indirectly) are listed in Table 4-4 for all five WSCs. Since the conditions at each WSC are different, the major energy savings will also be different (mainly because of its original situation of water supply system design, NRW and associated energy consumption requirements). Obviously Anshan,


Fushun, and Shenyang WSCs all need to rehabilitate many secondary BPSs so that their relevant energy saving are all equivalent to over 1.0 million to almost 2.0 million kW-h/year.

Table 4-4 Annual Energy Saving Targets for All WSCs, kW-h/yearCategories / WSCs Anshan Fushun Fuxin Gaizhou Shenyang

Water Intake Pumping 774,013 4,109,232 3,456,708 0 0Produced Water Pumping 508,695 1,484,268 1,131,624 0 4,043,052

Distribution Pumping 50,880 1,032,276 353,604 0 0Secondary Booster Pumping 1,152,960 1,701,600 724,560 178,008 1,938,000

Others 0 0 0 0 0Total Energy Saving 2,486,548 8,327,376 5,666,496 178,008 5,981,052

Note: relevant annual energy savings for the secondary BPSs of all WSCs are based on combined effectiveness from rehabilitation of CSP and associated BPS.

It is sure that total effectiveness of NRW reduction and energy saving for any WSCs are compounded since water saving is the beginning of better operational performance. Then the less power consumption can be achieved not only from the equipment repair or replacement but also the less water pumping. Based on the estimates of NRW reduction to be achieved through the actions taken, projections of annual water produced and sold and daily data for all five WSCs are shown as the Table 4-5.

Table 4-5 Projections of Water Produced and Water Sold for all WSCs

WSCs million m3/year 2016 2017 2018 2019 2020 2021 2022Water Produced 136.5 139.2 140.7 142.3 144.6 147.1 149.8

Water Sold 94.3 98.8 101.3 103.9 107.0 111.8 113.9Water Produced 151.0 150.3 147.9 139.0 131.1 124.1 118.7




Water Sold 391.3 401.0 402.0 406.6 409.5 411.0 408.9

WSCs Volume, m3/day 2016 2017 2018 2019 2020 2021 2022Water Produced 373,945 381,300 385,500 389,800 396,100 403,100 410,500

Water Sold 258,356 270,723 277,560 284,554 293,114 306,356 311,980Water Produced 413,808 411,781 405,205 380,822 359,233 339,945 325,233



Water Sold 13,300 13,500 13,800 15,000 16,300 17,600 26,800Water Produced 1,600,000 1,639,559 1,643,333 1,647,286 1,625,417 1,611,350 1,595,270

Water Sold 1,072,000 1,098,603 1,101,370 1,113,973 1,121,918 1,126,027 1,120,274Shenyang

Fushun

Anshan

Gaizhou

Fuxin

Fuxin

Gaizhou

Fushun

Anshan

Shenyang

Note: water produced and sold is based on realistic NRW reduction to be achieved through the World Bank funded project and other financial support

Based on data provided in Table 4-5, estimates of unit energy usage per m3 water sold are summarized in Table 4-6. It is intentional to present the unit power usages for the water sold for all WSCs rather than the water produced; this demonstrates that the NRW would impact to the


actual power consumption per m3 of water needed. Thus, it will be an essential effort for al WSCs to continue reducing their NRW, in order to make the company not only sustainable but also profitable.

Table 4-6 Estimates of Energy Consumption per Unit Water Sold for WSCs, kW-h/m3

WSC/Year 2016 2017 2018 2019 2020 2021 2022Anshan 0.4620 0.4580 0.4560 0.4550 0.4530 0.4510 0.4500Fushun 0.6040 0.5960 0.5610 0.5250 0.4890 0.4860 0.4830Fuxin 0.9600 0.9500 0.9400 0.9100 0.8700 0.8500 0.8350

Gaizhou 1.1128 1.1031 0.9298 0.7495 0.6085 0.5774 0.3553Shenyang 0.5817 0.5626 0.5434 0.5242 0.5051 0.4859 0.4668

Note: Gaizhou will purchase water from the Yinkou WSC directly so most energy consumption are contributed from the secondary booster pumping since its distribution pumping requires minimal energy

4.1.3 Basic Information of Estimated Targets

As stated prior, NRW reduction and energy savings from the rehabilitation of CSP and secondary BPSs will be the focus for this TA owing to their direct benefits and quantifiable savings. Table 4-7 presents the recommended secondary BPSs and CSPs to-be-rehabilitated using the World Bank loan by each WSC and their relevant beneficiaries, targets to be achieved, and required budget for engineering costs, etc.

Table 4-7 Summary of Rehabilitation Works for All WSCs

Various Items/WSCs Anshan Fushun Fuxin Gaizhou Shenyang Rehabilitation of Secondary Booster Pumping Stations

Rehabilitation Stations 80 70 9 14 99Beneficiaries, People 160,690 168,650 28,190 64,807 345,830

Energy Saving，kW-h/month 89,953 141,730 13,952 14,834 219,466Engineering Costs, million RMB 29.90 33.22 2.75 4.60 44.52

Rehabilitation of Community Service PipelinesRehabilitation Communities 28 271 48 41 63

Beneficiaries, Households 29,266 336,015 41,392 32,050 111,558Beneficiaries, People 66,610 958,882 115,740 80,125 341,998

Water Saving, m3/day 7,059 65,430 18,385 8,517 15,302Engineering Costs, million RMB 51.64 360.87 66.36 122.38 71.40

Source: Data provided by all WSCs in April 2017

Energy savings can be translated into estimated GHG savings by assuming that every kW-h saved needs not to be generated. According to the 2012 report of International Energy Agency on ‘CO2 Emissions from Fuel Combustion’, in 2010China emitted an average of 766 gCO2 per kW-h of electricity generated. Combining this value with the above energy saving of 5,759,220 kW-h/year for the secondary BPSs for all WSCs, it leads to a potential GHG reduction of 7,500 tons CO2/year. For the entire Project, including all other categories, the total potential energy


saving will be 23,872,100 kW-h/year for all WSCs, which it leads to a potential GHG reduction of 31,160 tons CO2/year.

4.2 VALIDATION

In order to demonstrate that the targets for both NRW reduction and energy saving proposed in this TA can be achieved using the World Bank loan, a pilot testing program was set up for all WSCs to conduct their own validations of the proposed targets. Thus, relevant testing programs for each WSC were developed based on their own current and future situations. In accordance with the assessment of historical operation data and records of power consumption, visits to facilities, and meetings with associated operational and managerial personnel with both companies, proposed pilot testing programs for all WSCs were then prepared.

4.2.1 Pilot Testing Programs

Results of respective pilot testing programs were collected and then used to assess the potential water and energy savings and to compare with the original targets. With the available records of power usage and average electricity costs for all WSCs, the potential energy savings were also converted into money savings for all WSCs.

Based on discussions with all WSCs, potential water and energy savings can be achieved through various means:

Adding more monitoring devices (mainly on pressure gauge, flow meters and electrical meters), particularly for those case studies for rehabilitated and to-be rehabilitated communities and secondary BPSs

Equipment and personnel responsible for the testing program should be the same as far as possible; if feasible, all equipment should be checked for their performance using the same criteria (for example, power consumption, flow rates, output pressure) particularly on performance of pumps and monitoring device, based on the original specifications

Providing a database and developing a hydraulic model for water distribution pumping and separate pressure zones in accordance with the economic analysis from capital investment and O&M costs for such an approach.

The contents of the pilot testing program and associated activities for all WSCs are listed below:

Setting up pilot testing programs: start setting up all required monitoring equipment or device for all representative case studies of rehabilitated and to-be-rehabilitated project components for all WSCs and ensure all required monitoring data for water produced, sold, energy consumptions are available for all case studies since January 2016

Conducting initial testing programs: with the collected monitoring data for both NRW and energy consumption, both data set will be used for estimating the NRW reduction and energy saving via two case studies: rehabilitated and to-be-rehabilitated to evaluate


the potential water and energy saving are both reasonable per their respective characteristics

Assessing data collected vs. the original estimates: based on the assessment of monitoring data for both rehabilitated and to-be-rehabilitated cases to re-confirm the original estimates of these two targets when applying various case studies; should results of these pilot testing programs for each WSC are sound and reliable, then continue the testing and collecting records of all monitoring data for water produced and sold for NRW and energy consumption for relevant secondary BPSs including water supplied till August 2017

In order to estimate the potential water and energy savings, each WSC developed their own proposed plans to rehabilitate the CSPs and secondary BPSs (via the World Bank loan). Relevant savings of water and energy based on these rehabilitation plans were then estimated. As shown in Table 4-7, Fushun WSC has planned to rehabilitate 271 CSPs for their service pipelines since it contributes the highest percentage (14.75 out of 16.67%) of NRW reduction for the company. While Shenyang WSC is planning to rehabilitate 99 secondary BPSs, yet these rehabilitations are only covering about 5% of the secondary BPS under the entire company. It will eventually need more funds to rehabilitate all of the other secondary BPSs.

The features of different community and secondary BPS are generally not the same, so the most representative community and secondary BPS were screened and selected by all WSCs to categorize a few actual case studies for comparison. These case studies were then used as references for other cases to be rehabilitated. Details of these case studies for rehabilitated and to-be-rehabilitated are presented in Appendix VII.

The case studies planed by each WSC are shown in Table 4-8. Actual data was collected to verify that the proposed rehabilitation of BPSs and CSPs are adequately achievable with the budget allocated. Either cases of secondary BPS or CSP is chosen as the representative case for similar conditions for those communities or BPS of to-be rehabilitated will be using the World Bank loan to facilitate the Project. Of course, the characteristics of these case studies will not be exactly the same, but will focus on those points that are similar, i.e. their relevant households, people and normal service requirements, etc.

Table 4-8 Representative Case Studies and To-be-Rehabilitated Project Components

Rehab Cases / WSCs Anshan Fushun Fuxin Gaizhou ShenyangCase of Communities, places 3 3 5 3 5

To-be-Rehabilitated, places 28 271 48 54 63Case of Secondary BPS, stations 3 6 3 3 5

To-be-Rehabilitated, stations 80 70 9 14 99


Table 4-9 shows the breakdown of proposed numbers of communities and secondary BPSs to-be-rehabilitated for all WSCs via the World Bank loan. These case studies are the basis for comparison, and using monitoring data of the rehabilitated and to-be-rehabilitated systems, estimates of water and energy savings were able to demonstrate the potential energy savings and NRW reductions can be achieved.

Table 4-9 Summary of Communities and Secondary BPSs To-be-Rehabilitated

Case 1 6 Case 1 15 Case 1 21 Case 1 5Case 2 3 Case 2 8 Case 2 9 Case 2 5Case 3 19 Case 3 57 Case 3 11 Case 3 4

Sub-total 28 Sub-total 80 Case 4 13 Sub-total 14Sub-total 54

Case 1 21 Case 1 8Case 2 140 Case 2 20 Case 1 8 Case 1 3Case 3 110 Case 3 20 Case 2 5 Case 2 11

Sub-total 271 Case 4 8 Case 3 6 Case 3 21Case 5 7 Case 4 23 Case 4 51Case 6 7 Case 5 21 Case 5 13

Sub-total 70 Sub-total 63 Sub-total 99

Case 1 4 Case 1 3Case 2 2 Case 2 4Case 3 6 Case 3 2Case 4 34 Sub-total 9Case 5 2

Sub-total 48

Shenyang WSC

Gaizhou WSC

Communities Secondary BPSs


Anshan WSC

Fushun WSC


Fuxin WSC



4.2.2 Results of the Pilot Testing

Although each case study may not be able to demonstrate that estimated savings for water and energy are exactly the same between the rehabilitated and to-be-rehabilitated cases, the pilot testing exercise did show representativeness for both cases. Monitoring data of energy consumption and NRW for both representative case studies of CSPs and secondary BPSs were collected from January 2016 to September 2017. These monitoring data not only demonstrate their own situations for all case studies but also were used to analyze the performance of NRW reduction and energy saving. For all case studies of each WSC, these monitoring data are summarized and shown in Appendix VIII.

During the data collection stage, several interesting findings were observed as follows:

water demand per household is not as high as planned, especially for those old housing projects compared to new development areas

seasonal total water usage is not as variable as originally claimed previous rehabilitated pipelines and meters still do not perform as anticipated


meters for community and households are not as accurate as originally specified, resulting in less accurate NRW measurement

water usage after midnight is lower than planned, which affects the secondary BPS performance, especially for those rehabilitated ones

energy usage for some rehabilitated secondary BPSs does not meet the original planned effectiveness, mainly due to over-sized for less water actually needed

Since monitoring data for both CSP and secondary BPS for all case studies will not be the same, two scenarios of these data assessment were developed in order to estimate the NRW reduction and energy savings that can be achieved and using the actual case studies as reference to accurately calculate these two targets for all WSCs.

Scenario 1: using monitoring data from full year of 2016 or available data and prorated to full year as the annual data for both NRW reduction and energy saving

Scenario 2: using monitoring data from September 2016 to August 2017 as another full year data to project the annual water and energy saving, respectively

The analysis of the two water and energy saving scenarios indicates that Scenario 2 had better simulation results against the original estimates of NRW reduction and energy saving. This is shown in Table 4-10. Though testing results are quite close for both scenarios, it also proves that not only results of all pilot testing programs for all WSCs are a well-designed system but also to be able to use the actual case studies to verify the original estimates for both targets.

Table 4-10 Estimated Deviation for Scenarios of Case Studies

Estimates Deviation Estimates DeviationWater Saving, m3/year 2,576,535 2,458,985 -4.6% 2,653,337 3.0%Energy Saving, kWh/year 1,079,436 1,053,889 -2.4% 1,058,254 -2.0%Water Saving, m3/year 23,881,950 23,911,070 0.1% 23,836,348 -0.2%Energy Saving, kWh/year 1,700,760 1,626,370 -4.4% 1,703,234 0.1%Water Saving, m3/year 5,110,000 4,885,784 -4.4% 5,394,266 5.6%Energy Saving, kWh/year 167,424 180,835 8.0% 166,962 -0.3%Water Saving, m3/year 3,108,705 2,845,571 -8.5% 2,900,146 -6.7%Energy Saving, kWh/year 178,008 198,905 11.7% 176,808 -0.7%Water Saving, m3/year 5,585,230 5,448,418 -2.4% 5,962,349 6.8%Energy Saving, kWh/year 2,633,592 2,859,368 8.6% 2,775,636 5.4%

Fuxin

Gaizhou

Shenyang

WSCs Estimated Targets Original Estimates

Anshan

Scenario 1 Scenario 2

Fushun

4.3 COST BENEFIT ANALYSIS

In accordance with Table 4-7, engineering cost estimates for both CSPs and secondary BPSs to-be-rehabilitated are a bit high for each community or pumping station, mainly due to aging equipment and facility structures require substantial budget in order to be functional. Normally, water pipelines are only installed up to the property boundary, yet the CSP (public area and


household connection pipeline) and smart-meter for each household proposed by all WSCs all required additional budget on top of the routine O&M. In addition, monitoring equipment for pH, turbidity, and chlorine residuals are required per the designs of the new water distribution systems; and this has further raised the budget requirements for certain BPSs.

In order to present the cost effectiveness of any projects, a cost benefit analysis for both the secondary BPS and CSP to-be-rehabilitated were conducted based on a few assumptions as the followings:

Typically in China, budget for engineering cost estimates is prepared by DIs who have been retained by project owners and they tend to use the cost index for budgeting purpose instead of convincing market price; so after competitive bidding process, proposed capital expenditure (CAPEX) for all project components are at 80% of their original budget

Operating expenses (OPEX) saving includes direct energy and water saving to generate their cost saving and associated personnel expense decreasing owing to better system performance and automation after the rehabilitation, especially for secondary BPSs; so the rehabilitated BPSs and CSPs will only require half of its original O&M staff

Benefits of energy savings come from the reduction in energy usage based on the electricity fee normally charged to WSCs and water saving is from the water resource fee typically charged to WSCs by provincial water resource department; staffing requirements for routine O&M activities for the secondary BPSs and CSPs are normally require one person for covering two to three BPSs or communities

Service lives for secondary BPS and CSP are setting up for 20 years and 30 years, respectively, since equipment and device within the pumping station are generally faded faster than the installed pipelines and meters; residual value will be zero beyond the service life for the subject cost benefit analysis

Based on these assumptions, ROIs for both project components of secondary BPSs and CSPs were estimated and are shown in Tables 4-11 and 4-12. All of the estimated ROIs for all WSCs (and based on the assumptions for estimated CAPEX with OPEX savings) are not as high as expected, mainly due to combination of high CAPEX and low OPEX saving. Thus, a cost benefit analysis and sensitivity analysis were conducted for both project components to explore which part of costs and benefits could be further improved.


Table 4-11 Estimate of ROIs for Secondary BPSs To-be-Rehabilitated


BPS, stations 80 70 9 14 99OPEX Saving, RMB/year 1,144,500 1,663,200 169,000 190,800 2,551,900Estimated CAPEX, RMB 23,920,000 26,576,000 2,200,000 3,680,000 35,616,000

ROI1, % -0.22% 1.26% 2.68% 0.18% 2.17%ROI2, % 0.32% 1.95% 3.54% 0.76% 2.96%ROI3, % 0.85% 2.65% 4.39% 1.34% 3.76%ROI4, % 1.38% 3.34% 5.24% 1.91% 4.55%

Secondary BPSs to-be-rehabilitated


For implementing the rehabilitation of CSP, basically it is pipelines serving domestic compounds and connection pipeline to each household with individual meter. Thus, its unit cost would be much higher than those distribution pipelines even with relevant small diameters.

Table 4-12 Estimate of ROIs for CSP To-be-Rehabilitated


Communities, places 28 271 48 41 63OPEX Saving, RMB/year 3,000,800 27,843,100 5,932,600 3,638,700 6,510,800Estimated CAPEX, RMB 41,312,000 288,696,000 53,088,000 97,904,000 57,120,000

ROI1, % 3.93% 6.31% 7.84% 0.38% 8.07%ROI2, % 4.74% 7.38% 9.08% 0.80% 9.33%ROI3, % 5.54% 8.45% 10.33% 1.21% 10.60%ROI4, % 6.35% 9.53% 11.57% 1.62% 11.86%

Community Service Pipelines to-be-rehabilitated


It is clear that the OPEX savings per year are not as high as expected (when considering the amount of CAPEX invested), especially for the Gaizhou WSC. In addition, the estimated amount of CAPEX significantly affects the ROI estimates, since it dominates the calculation of cost benefit analysis12.

12 Note that these calculations assume a service life for the CSP of 30 years, as typical for civil works of service pipelines and meters. Therefore it will be required that these installations include weather protection and routine maintenance in order for these pipelines and meters to be able to perform well during their service life.


Normally both CSP and secondary BPS installations are not the responsibilities of the WSCs in China. It is Liaoning Provincial Government’s intention to take active possession of these issues so as to prevent high NRW and to lower the energy consumption in the long term. Thus, high CAPEX is clearly unavoidable for all WSCs. Well planned and comprehensive designs to lower the engineering costs will definitely be required for all project cities during the project preparation.

In accordance with the cost benefit and sensitivity analyses, it is worthwhile for all WSCs to re-evaluate their engineering cost estimates since the estimated ROIs are low even when CAPEX is 20% lower than currently budgeted. It is also notable that OPEX savings could be more significant than lowering the estimated CAPEX. Based on the analysis, an assumption of 10% OPEX savings could be equivalent to a 20% lowering of CAPEX; and all WSCs should seriously consider this in their investment planning.

4.4 MANAGEMENT ACTION PLANS

Based on validation of energy saving and NRW reduction targets through the pilot testing programs, it is apparent that all WSCs still need to re-evaluate their proposals for the CPSs and secondary BPSs to-be-rehabilitated. It is strongly recommended that the number of CPSs and secondary BPSs to-be-rehabilitated should be increased to generate more savings and beneficiaries, and so that the planned facilities provide the most benefits. Also, engineering costs for these proposed elements need to be lowered as much as possible. This is especially true considering the WSCs’ financial capacities to cover such heavy investments.

In order to ensure that all of the proposed investments can be implemented as planned, certain activities should be organized parallel to the Project preparation. According to the current conditions of each WSC and their future plans, relevant management action plans have been proposed and are shown in Tables 4-14 and 4-15. Depending on the specific situations at each WSC, certain activities can be defined as very urgent and some are less critical. Nonetheless, it is strongly recommended that all proposed management action plans be carried out in a timely fashion so as to match the loan implementation.

In addition, all WSCs should look into capacity building for all these activities during the project implementation, especially for the staffing development plan, in order to facilitate these elements with high efficiencies. Most activities in the management action plans are part of the project implementation, so the budget to facilitate these plans should be available through the World Bank loan.


Table 4-14 Relevant Management Action Plans for Sceondary BPSs To-be-RehabilitatedManagement Action Plans / WSCs Anshan Fushun Fuxin Gaizhou Shenyang

conducting inventory of equipment/device and assessment if control mechanism for all existing secondary BPSs vu u u u u

collecting water usage data (year long if possible), especially the peak and low demand to assess individual design scenario for all BPSs vu u u u u

re-assessing all rehabilitated BPSs to ensure their design approach are sound, then to optimize their performance vu mu u vu vu

prioritizing all BPSs based on rehabilitation schedule of community service pipelines to optimize overall water and energy saving u u u u u

re-evaluating the distribution system pressure setting to capitalize the available head to generate more energy saving u mu u u vu

while current plan to rehabilitate only small portion of secondary BPSs, developing a long-term rehabilitation plan is necessary u mu mu vu vu

re-evaluating the engineering cost estimates for all secondary BPSs to-be-rehabilitated to optimize the most cost effectiveness vu vu vu vu vu

identifying all possible savings from better BPS design and performance, less staffing owing to automation to create more project benefits vu vu vu vu vu

developing an implementation plan for rehabilitation of secondary BPSs, especially those who has many BPSs to-be-rehabilitated or little experience vu u u vu vu

evaluating the overall pumping system upgrade and modification per achievable NRW reduction, so to optimize the energy usage efficiency mu mu mu mu mu

Rehabilitation of Secondary BPSs

Note: "vu" denotes very urgent; "u" denotes urgent; and "mu" denotes moderately urgent in the action plan priority recommendations

Table 4-15 Relevant Management Action Plans for CSPs To-be-RehabilitatedManagement Action Plans / WSCs Anshan Fushun Fuxin Gaizhou Shenyang

re-assessing all rehabilitated community service pipelines to ensure the existing NRWs are meeting the original design requirements u u u u u

prioritizing all communities based on their NRW situations and coping with the rehabilitation schedule of secondary BPSs u u u u u

considering to complete the not-fully rehabilitated community service pipelines so to ensure NRW targets are meeting original design mu mu mu mu mu

re-evaluating the engineering cost estimates for all community service pipelines to-be-rehabilitated to optimize the most cost effectiveness vu vu vu vu vu

identifying all possible savings from higher NRW reduction, less staffing and possible DMA establishment to create more project benefits vu vu vu vu vu

communicating with the community service pipelines to-be-rehabilitated to minimize any objections during pipe/meter installations mu mu mu mu mu

developing a public campaign program to announce the possible schedules for rehabilitation of the relevant community service pipelines mu mu mu mu mu

evaluating the most achievable DMAs to be setup with those community service pipelines to-be-rehabilitated particularly u vu u vu u

developing an implementation plan for rehabilitation of community service pipelines, especially those who has many communities or little experience u vu mu vu u

setting up an achievable NRW reduction target so that the water saving can accelerate the energy saving altogether mu mu mu mu mu

Rehabilitation of Community Service Pipelines

Note: "vu" denotes very urgent; "u" denotes urgent; and "mu" denotes moderately urgent


5 SUMMARY OF FINDINGS AND RECOMMENDATIONS

Estimated NRW reduction by rehabilitation of CSPs and energy savings from the rehabilitation of secondary BPSs are summarized in the relevant tables in previous sections. All WSCs are eager to meet the minimum requirements set-up by the National and Liaoning Provincial Governments. Although the available funds from the World Bank loan will be able to assist all five WSCs to reduce their NRW to certain levels, additional funds and support will still be required in order to meet the aggressive Governments requirements in the “Water Ten Clause” and CJJ92-2016.

Of course, the higher NRW reduction, the better performance of a WSC would be. This leads to not only direct water savings, but also to efficiencies in power consumption, because of less energy required for water intake pumping, treatment, and distribution pumping. Power consumption per unit water sold was estimated based on the NRW reduction and energy saving from the equipment replacement, system upgrade and control optimization all have demonstrated these effects from both NRW reduction and less pumping.

Through all of the activities of the TA, and in accordance with the related work plans of all WSCs, summaries of findings, assessment of operation records, proposal for facility improvement plans and budget, and results of pilot testing program for NRW reduction and energy saving are presented below. Relevant recommendations for NRW reduction and energy savings for all WSCs are also provided for consideration.

5.1 SUMMARY OF FINDINGS

Based on historical data assessments, field visits to the existing WSPs, secondary BPSs and communities rehabilitated and to-be-rehabilitated, and meetings with relevant personnel of each WSCs, a summary of the general challenges and issues to be addressed include the following:: i) high NRW per historical data; ii) pressure settings affecting secondary BPSs; iii) existing conditions of CSP; iv) major energy consumptions for WSCs; v) inadequate pressure management; vi) lack of attention to leak detection; vii) jurisdiction of CSP and secondary BPSs; viii) Inadequate performance of secondary BPSs; ix) poor condition of produced water storage tanks; x) pilot testing programs for both NRW reduction and energy saving; xi) significant numbers of rehabilitation work; xii) cost effectiveness for both NRW reduction and energy saving approaches, etc.

These are further detailed below.

High Historical NRW: According to the questionnaires and datasheets provided by all WSCs in early 2017, estimates of NRW reduction and energy saving using actual case studies were initially completed. During the course of the TA, several meetings with all WSCs altogether and/or individually with their DIs about their estimates of NRW reduction and energy saving,


associated target values owing to World Bank loan were re-evaluated and re-confirmed. It is obvious that NRW for all five WSCs are serious when compared to the provincial average of 30%, especially for Gaizhou (64.05%) for its high NRW rate and Shenyang (33.01%) for its total daily water supplies. For Gaizhou, daily water supply is about 37,000 m3/day, and because of insufficient attention and support from the city Government, aging pipelines and no/malfunctioning meters have contributed significant of its NRW up to 54.55%. The World Bank loan will be able to lower its NRW by 25% (out of 29% total NRW reduction) and rehabilitate these two main categories. For Shenyang, the daily water supply is up to 1.6 million m3/day, and with a 33% NRW there is about 0.5 million m3/day of water losses, mainly from the pipeline losses. The World Bank loan will be able to lower 2.3% (out of 3.2% total NRW reduction) of NRW while pipelines are rehabilitated.

Pressure Settings Affecting Secondary BPSs: Pressure settings in the distribution systems is the dominate factor for energy consumption. Each WSC has their own setting depending on the topographic conditions, user characteristics (industrial, commercial and domestic) and service coverage. Also, per the service requirements (flow and pressure) for all users, secondary BPSs have been used to supplement the produced water and distribution pumping. Typically in China, most WSCs need to provide a minimum pressure to 0.28 MPa at the grade level, so as to provide decent water pressure up to seven stories for buildings. Only Anshan WSC has installed two major BPS, and Fuxin is planning to construct two major BPSs to provide better services. Yet, certain secondary BPS have not been able to capitalize the available head from the distribution pumping which makes them becoming the major target for more potential energy saving.

Existing Conditions of CSP: For most WSCs, a major portion of the service pipelines were installed over two decades ago and are now in poor condition. When housing projects were constructed years ago, the WSC had no authority to inspect the basic requirements of these pipeline installations, so the construction quality of pipes and valves including at the secondary BPSs were all under the developers’ control. Recent years, urgent requests for repair because of pipe leaking or bursting have become an extra burden for all WSCs, even at locations out of their service coverage. But since there are no other entities to conduct this urgent repair work, the WSCs are the only assistance available. To fix the issue of lacking CSP management, relevant City Governments have been requesting for WSCs to resume the responsibility, including management of the relevant secondary BPS.

Major Energy Consumption at WSCs: The patterns of energy use for all WSCs was estimated using the historical operation records, particularly using those months of low and high demands to better present the energy usage throughout the years of 2015 and 2016. Based on data provided, it is clear that the major energy consumptions come from water intake pumping, and pumping of produced water in the distribution system. Though percentages of these pumping requirements vary by WSC, on average water treatment processes only represent a bit over 1 % of energy use (except for Fuxin WSC, which is higher). Water distribution pumping


requires highest energy usage for most WSCs and water intake pumping typically ranks the second, followed by produced water pumping.

Inadequate Flow and Pressure Management: Water distribution systems requires significant energy to provide the required water flows and pressure settings; however there are limited flow and pressure monitoring stations in the WSC systems studied in this TA. Inadequate or insufficient flow meters cause difficulties in monitoring the actual water distribution to users and subsequently make it difficult to estimate leakage and NRW. With many secondary BPSs to support the tall buildings or users located at high points, high pressure outputs have been set up for most WSCs. Residual pressure of the distribution systems are not well utilized which is definitely an energy loss that can be re-evaluated and recovered for less pumping requirements. Most WSCs have not developed hydraulic models for water distribution (except Anshan WSC, which has received some grant from World Bank for a GIS and simplified model). For the other WSCs, the necessary GIS systems are either insufficient or unavailable; and the World Bank loan will be assisting in these areas.

Lack of Attention to Leak Detection: Though high NRW exists, most WSCs are still struggling with the basic leak detection capacity, neither equipment/device nor the required personnel to conduct the leak detection. Gaizhou especially only has little resources to deal with the issue. Pipeline losses are the key area for leak detection and insufficient effort has been paid to this obvious area to recover losses for all WSCs. Some WSCs claimed that they have worked with outside professionals or academic experts on leak detection or NRW reduction, yet results were not promising. For Anshan, Fushun and Fuxin WSCs, they have tried identifying these potential leaks, yet most of their activities are still insufficient. Shenyang WSC has designated a team to go around their service boundary to identify and fix such leak, but considering its NRW still at 33% in 2016, the effort is obviously not enough and timely.

Jurisdiction of CSP and Secondary BPSs: Due to early development and management style, the majority of CSP and relevant secondary BPSs are either aging, have used inadequate materials, do not meet the current design specifications, and lack of good management. Typically in northeastern China because of heavy industrial development in the last few decades, dormitories were provided for most employees. Traditionally, enterprises were responsible for all water fees and energy for secondary BPSs as well. Lately, due to housing policy reform, all WSCs are forced to take over these malfunctioning facilities. This is not only a big challenge for short-handed WSCs but also a very costly investment. In addition, future asset transfer and overall responsibility will be an extra burden to all WSCs since these activities are originally not under their jurisdiction.

Inadequate Performance of Secondary BPSs: Generally, most secondary BPSs are not performing to their design requirements mainly due to aging equipment and because of over-designed capacity caused by lower demand and higher leaks for most WSCs. With meter installed and water saving propaganda, rationalizing the actual water demand has becoming a common issue for most of WSCs in China nowadays. Even some secondary BPSs have been


rehabilitated but their performance still requires additional efforts due to lower demand than projected and inadequate control mechanism for variable water demand for small communities, especially the lowest water demand after midnight. For some secondary BPSs, their rehabilitation work still needs to be re-evaluated due to limited space and very tight construction time allowed due to harsh weather condition during winter season in Liaoning.

Poor Condition of Produced Water Storage Tanks: Produced water storage tanks are typical existed for certain secondary BPSs, yet their protection is not well provided or maintained from hygiene or potential toxic/hazardous threat. In addition, structures of these tanks are either aging or corroded, no matter they are above grade or underground (within building basement). Due to original design typically too conservative or water saving concept being popular, some tanks are larger than actually needed. Thus, secondary disinfection is normally required or unavoidable, but most tanks are not well equipped with such provisions. Ventilation is also poor for most BPSs visited with high moisture and foul air, especially for those underground tanks.

Pilot Testing Programs for Both NRW Reduction and Energy Saving: Using actual case studies (CSPs and secondary BPSs) of rehabilitated and to-be-rehabilitated in most representative cases were developed individually for each WSC. Each WSC has proposed certain communities and secondary BPSs to-be-rehabilitated using the World Bank loan. Actual case studies used to estimate the proposed rehabilitation sometimes are not able to justify their representativeness, yet still providing good starting point for all WSCs. Monitoring data for these case studies indicated water and energy savings are sometimes convincing. Yet their actual saving all rely on if these data are as consistent as they have presented so to estimate the most potential saving for both water and energy. In accordance with two scenarios developed for verifying the current pilot testing programs, all WSCs were able to justify their origin design approach for both NRW reduction and energy saving are achievable based on current implementation plan. For all WSCs, results of relevant programs have also proven that the working plans and methodologies are effectively developed.

Significant Numbers of Rehabilitation Work: It would be better to start communicating with the communities to be providing the rehabilitation not only for service pipelines but also for their designated secondary BPS, so to minimize unnecessary objection or foul feeling during the construction. Though these rehabilitations are designed to assist the communities and local residents to have better service, regular life will be affected temporarily, especially for potential long-delaying constructions due to unexpected events. Within five WSCs, Fushun WSC is planning to rehabilitate 271 CSPs and Shenyang is planning to rehabilitate 99 secondary BPSs. All construction activities will need to be well-planned so to ensure all rehabilitations can be completed within short period of available time for construction due to harsh weather condition during winter season, say April to November yearly.


5.2 RECOMMENDATIONS

Based on the findings, pilot testing programs, and conclusions of the TA, a number of general recommendations are offered for WSCs to consider. These are as follows:

i) Perform thorough assessment of historical operation data, and inventory of facilities; ii) Acquire leak detection and monitoring equipment and devices;iii) Continue pilot testing programs; iv) Conduct public awareness and early communication targeted at community

households for rehabilitation of CSP; v) Establish and enforce a DMA program, with flow meters and pressure regulating

valves; vi) Develop long-term leak detection and monitoring programs; vii) Establish a program to Optimize NRW reductions; viii) Fine-tune the design and operations of secondary BPSs; ix) Set-up adequate staff training programs; x) Utilize GIS and hydraulic models to optimize operations; xi) Separate pressure zones and user-pay principle; and xii) Employ Performance-based Contracts in utility procurement.

These are further detailed below.

Assessment of Historical Operations Data: All available historical operations data related to NRW and energy consumption should be re-evaluated on a regular basis. Such data assessments will assist in more accurate understanding of NRW and the possible adjustments of pumps within WSPs and major/secondary BPSs for a better control mechanism and energy saving (notably for water intake, produced and distribution systems). These assessments will provide the basis for evaluating existing system and facility performance and ensure that future testing programs are applicable without creating problems or hindering regular operations.

Inventory of Facilities and Utilities: In order to achieve the NRW reduction and energy savings targets set by each WSC, all existing facilities and utilities should be reviewed against the original design specifications, so the final inventory of these facilities can be categorized into a systematic approach for better management. With more knowledge about the existing situation, it can be seen as a self-auditing and performance evaluation. This activity needs to be performed by all WSCs so to provide the decision makers to re-confirm their proposed implementation plan not only are sound but also to meet with the project objectives.

Acquisition of Leak Detection and Monitoring Equipment and Devices: For both NRW reduction and energy saving approaches, typical monitoring equipment and devices, such as flow meters, pressure gauges, electricity meters, thermometers, and data transmission devices, etc., should be provided, along with proper training to those staff who are responsible for their future rehabilitations of the facilities, namely the CSPs and secondary BPSs. Without adequate monitoring equipment and devices, all of the newly constructed and/or rehabilitated facilities will


no necessarily be operated with according to the original design specifications. In particular, the facilities will need to be operated in an optimized manner so to quickly recover the investment.

Continue Pilot Testing Programs: Although current assessment of the targets for both NRW reduction and energy savings seem to be achievable, without identifying all basic information of all communities and secondary BPSs, most of the BPS rehabilitations are still not finalized for the equipment selection and system control design. All WSCs should continue verifying the basic information for all facilities related to NRW reduction and energy saving for all case studies more thoroughly based on what have been achieved so far, even just to re-confirm their monitoring data throughout the project implementation. In addition, these pilot testing activities should be continued during the project implementation, so as to ensure all proposed NRW reduction and energy saving projections can be facilitated effectively, efficiently, and within the budget.

Public Awareness and Early Communication targeting at community households for rehabilitation of CSP: Prior to any rehabilitations of either CSPs or secondary BPSs, public announcement and awareness program should be conducted, especially alerting community households to any temporary water service shut-downs during the construction period. Such temporary water service shut-downs could range from a week to a month in duration; and so proper coordination with the relevant communities and construction schedules for these rehabilitation works must be as short as possible. To minimize inconvenience to regular life of the affected households, water tank or re-routing the service pipelines to these users should be provided so that the construction can be conducted smoothly without any objections or complaints.

Establishing a DMA Program and the Enforcement of Flow Meters and Pressure Regulating Valves ： No matter whether for NRW reduction or energy saving activities, a DMA program should gradually be established and implemented based on a long-term program for each WSC, even for those were already rehabilitated community or secondary BPSs. Without an effective DMA program, the emergency maintenance team will not be able to effectively repair the inevitable leaks at pipeline joints or from bursting pipes. In order to make the DMA become an overall WSC-wide management plan, flow meters and pressure regulating valves should distinguish and separate service zones (or areas pending the pressure setting or other requirements, such as geographically or topographically). It is strongly suggested that all vaults be constructed with reinforced concrete instead of bricks so as to prevent water being stranded in the vault and potentially damaging the expensive equipment/devices, and also to minimize the effect to malfunctioning data transmission.

Development of Long-term Leak Detection and Monitoring Programs: It is worthwhile for all WSCs to continue their relevant leak detection and monitoring programs for all facilities including NRW for transmission and representative community pipelines as the routine work. Relevant long-term leak detection and monitoring programs are strongly recommended to be developed based on the situation of each WSC but mainly focus on the assessment of existing


facility operation, then to optimize the future system design and overall performance improvement. These activities will also need to be expanded to monitoring the energy consumption at all WSPs, major BPSs, and secondary BPSs, so as to capitalize on the less water pumping scenarios.

Optimization of NRW Reduction Program: All records show that NRW is mainly coming from the distribution system operations (e.g., operating at higher pressure settings than required) and possibly due to inadequate pipeline materials or installation quality, in addition to typical aging of pipelines and/or poor connections for old urban districts particularly. Thus, developing an overall NRW reduction program, starting from higher pressure zones or larger diameter of water transmission mains and pipelines using all available leak detection equipment and device is essential for all WSCs, so that all possible sources of leaks can be identified. This can then serve as the backbone to the overall leak detection plan. A leak detection plan and better control of pressure settings can minimize potential NRW. For example, initial DMA implementation should focus on new development areas, rehabilitated communities, or high water demand areas.

Fine-tuning the Basic Design of Secondary BPSs: For any WSCs, the basic pumping system design vs. the actual water demand needs to be thoroughly evaluated: i) re-assess the pumping requirements for each secondary BPS, based on its user characteristics, especially for period of low demand after midnight to minimize the unnecessary big pump installation and required pumping arrangement to cover all possible water supply demands; ii) it is also critical that any BPS must work along with the CSP to be rehabilitated already, otherwise the newly installed BPS may face a situation of too large for the rehabilitated community pipelines after its NRW reduction target is met; iii) secondary BPS handling multiple pressure settings (different building heights) or extremely variable water demands should be re-evaluated or re-designed to cope with separate piping system for different pressure requirements. To fine-tune the design for pumping station, especially the secondary BPS and future O&M, several factors need to be considered as presented in Appendix IX.

Setup an Adequate Staff Training Program: For any activities to optimize the NRW reduction and/or energy saving approaches, well-trained personnel at all WSCs are necessary. An adequate and comprehensive staff training program should be established. The subject training program should at least include experienced trainers, well-planned activities and materials, and sufficient budget to support such basic staff development for all trainees. The training program should cover all basic engineering concepts of the water supply system, from the water intake, treatment to distribution, and ultimately to reach highest customer satisfactory, for both requirements of quality and quantity. Trainees should not only be staff for routine O&M but also for those managers who will take the lead on guiding these staff in their daily activities, so as to be able to handle unexpected situations or emergency responses.

Utilize GIS and Hydraulic Models to Optimize System Operations: Typically, modern WSCs in China would have a computerized GIS and database to manage their assets. In addition to


this function, a GIS can also assist the planning and management of future system expansion via a more accurate and systematic understanding the current system. Based on the available GIS and continuous data acquisitions, a water distribution system hydraulic model can also be developed – slowly, or in stages if need be, from a static mode and eventually to a dynamic mode to monitor the real-time system performance. With such a hydraulic model, each WSC can assess routine operational adjustments, evaluate pressure regulating options, or provide scenario analysis for re-routing temporary piping and/or for regular pipeline repair/replacement. It can also provide a more comprehensive simulation of the water distribution system and provide design considerations for overall system upgrades and/or modifications.

Separate Pressure Zones and User-Pay Principle: Depending on the topographic conditions of the service area for each WSC, separate pressure zones can potentially be established to save energy and reduce NRW. This will also assist in reducing leaks. It is evident that the lower the pressure setting in the distribution system, the lower NRW. For regular users who have to pay for additional costs to support higher pressure setting for those who live in the high ground or high-rise buildings, it is somewhat unfair, even City Governments typically can only allow a flat rate for all users, except for special industrial or commercial purpose. The principle of User-Pay is quite common in developed countries, and for years has been used to differentiate payment by certain customers for their special needs, even though they may not intentionally request such extra service. Thus, a separate pressure zoning plan should be considered for all WSCs to optimize their system performance and to save the energy and water concurrently.

Performance Based Contracts (PBCs): No matter what system has been upgraded or modified, the leak detection plans need to be continuously performed so as to ensure all investments in NRW reduction and energy savings are effective. The plans should cover the necessary staff and equipment/devices, and a long-term outlook to gradually cover the entire service area for all WSCs. Although it is a new concept13 to apply to PBCs to deal with the NRW reduction and energy saving, actually local WSCs have been testing similar activities either via outside assistance or using their own team. Thus, a localized PBC could be considered for those WSCs who have limited abilities to conduct such leak detection or energy saving approaches, so as to minimize the initial investment and slowly build up their own team’s capacities via these PBCs.

13 The Challenge of Reducing NRW in Developing Countries - How the Private Sector Can Help: A Look at Performance-Based Service Contracting, Bill Kingdom, Roland Liemberger, Philippe Marin, Dec 2006

Using Performance Based Contracts to Reduce Non-Revenue Water, Wyatt et al, June 2016


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12. Rachel Young, A Survey of Energy Use in Water Companies - An ACEEE White Paper, June 2015

13. Melody et al., Improving Energy Efficiency and Reducing Costs in the Drinking Water Supply Industry: An Energy Star Resource Guide for Energy and Plant Managers, Office of Scientific & Technical Information Technical Reports, September 2010

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26. Wyatt et al, Using Performance Based Contracts to Reduce Non-Revenue Water, June 2016


APPENDIX IDETAILED APPROACHES AND METHODOLOGIES

I.1 Workshops

Workshops were designed for the Liaoning project management office (PPMO), project cities of Anshan, Fushun, Fuxin, Gaizhou and Shenyang, and the World Bank team to exchange thoughts about the ESMAP TA activities related to the operation data collection and assessment and then develop programs for pilot testing for all WSCs and, eventually, to share findings of the testing results periodically.

The first workshop was conducted in November 2016 to brief the Liaoning PPMO and all five WSCs on the objectives of the TA, providing an initial understanding of the NRW reduction and energy saving programs. Outlining approaches and ideas were exchanged on how to achieve such programs based on the relevant facility O&M of each company. In January 2017, the second workshop on self-evaluation of company performance including power usage auditing was conducted for all WSCs. With the initial respective pilot testing programs for all WSCs, workshops were conducted in March and April 2017 for what has been assessed for each WSC.

The final workshop of the TA was held in September 2017, in Fushun of Liaoning province, China to share information on what NRW reduction and energy savings can be achieved through a similar exercise for all WSCs in China. Attendees included representatives from the Liaoning PMO and all WSCs. About 40 people attended the workshop, which covered four major topics related to energy saving, the application of district metering area (DMA). All five WSCs and Liaoning PPMO were invited to present their lesson learned through this TA activities and future plan for both NRW reduction and energy saving. A question and answer session included inquiries and recommendations pertaining to both topics and actual experiences were presented during project implementation. All valuable comments and constructive recommendations for the TA were then incorporated into the final report.

I.2 Candidate Facilities and Equipment

Typical areas or units for water supply and treatment facilities including booster pumping stations (BPSs) where energy savings are potentially high can be easily identified from regular operation records of power consumption and/or discussion with facility personnel. For comparison purposes and effective implementation of pilot testing programs, visits were conducted to candidate sites such as WSP, BPSs and community with aging pipelines for all WSCs.

For any WSC, its water supply system O&M dictates the overall company performance, especially with regard to the water distribution system. Most Chinese WSCs set up an incentive program, not to encourage staff to lower their costs in WSP operations, but to meet the water supply demand (in terms of quantity and pressure). Especially important is the objective of


receiving few or no complaints from the customers. Ways exist in a number of areas to save energy (and equivalent costs) while meeting the basic requirements of water supply, making O&M more cost effective, and reducing the air pollution and GHG associated with the coal-generated power on which China relies:

water intake: measuring water level and analyzing demand for efficient pumping (multi-pumps versus variable frequency drive, or VFD) to support design optimization

sedimentation and filtration system: using pressure gauges and control mechanisms to minimize backwashing requirements and optimizing the production water tank operation scheme based on the actual demand scenarios

water produced and distribution system: assessing the separate pressure zones based on service requirements, produced water and booster pumping, and peak and low demand management (demand, pressure, and backflow prevention) including major and secondary booster pumping requirements

heating, ventilation, and air conditioning (HVAC) and lights: using sensors or timer controls to maintain adequate temperature and brightness for all working areas and for different seasons of the year

non-revenue water (NRW): maintaining adequate pressure to minimize water leakage and water losses using reclaimed water

I.3 Case Study Facility and Site Visits

To obtain a better understanding of the regular system control and management, especially with regard to the power consumption situation for various facilities, visits were conducted to the most representative facilities for all WSCs. These included discussions with the facility operators or superintendents on their routine work and responsibilities and facility performance. Thorough discussions were conducted beforehand with the responsible departments of each WSCs to ensure all collected data match and consistent. Visits were made to the WSPs and secondary BPSs since they are typical major power consumption facilities for most of WSCs. Photos in Appendix III show that relevant facilities such as WSPs and secondary BPSs were visited including representative flowmeter vaults.

I.4 Development of Questionnaires

Based on initial discussions with all WSCs and preliminary records of NRW situations and power consumption provided, a set of general questionnaire was developed. It was validated first with all WSCs to seek for their inputs so to make these questionnaires more comprehensive and closer to the reality as shown in Appendix II.

The first round of data assessment for all available power consumption records further showed that pumping stations for both water intake, produced and distribution are the major energy contributors of the relevant WSPs. Based on questionnaires developed, basic data of each WSC and their operation logs were obtained on water produced and sold for NRW reduction estimates and energy consumption for secondary BPSs were collected in Appendix II.


After relevant pilot testing for all WSCs were conducted, results of operational data and records of power consumption from rehabilitated and un-rehabilitated case studies were collected and assessed. Analyses of all collected data will be used to estimate the NRW reduction and potential energy savings for the project were summarized in Appendix VII.

I.5 Pilot Testing Programs

To demonstrate that actual NRW reduction and energy savings could be targeted and achieved in the facilities identified by all WSCs, separate pilot testing programs were developed. Based on the discussions with the associated managers of all WSCs, candidate facilities were confirmed to implement the testing program.

For all WSCs, main focus of the pilots with NRW reduction and energy usage efficiency was on CSP and the secondary BSP pumping. Monitoring results of pilot testing were then used to estimate the NRW reduction and energy saving could be achieved via all these pilots.

I.6 Management Action Plans

The results of the pilot testing program conducted by all WSCs were used to estimate the potential NRW reduction and energy savings that can be achieved after project implementation. Scenarios for both topics were developed based on the pilot-scale findings and projected for larger-scale testing results.

Though NRW reduction can be contributed via water distribution mains, CSP, and functional flowmeters for district level to each household, most distribution mains have been repaired or replaced, so the focus of the World Bank loan is used for later two elements. With the NRW reduction to be achieved, it will not save the precious water but also save significant energy to less pumping requirements from water intake, treatment, distribution and eventually to each secondary BPSs.

Energy savings can be achieved through different approaches, mainly focusing on pumps especially in terms of improving their efficiency (through repair or equipment adjustment), unless they are at their replacement stage. The motors associated with this equipment are the most critical element for all potential energy saving. By using the energy-saving scenarios, relevant management action plans and associated indicative budgets for these plans were estimated for budgeting purposes.


APPENDIX II SAMPLE QUESTIONNAIRES

Contents

Brief Company Introduction

StaffManagement/Admin

Water Treatment PlantsBooster Pumping Stations

Water InfrastructuresPerson Who Inserts Tables

Date

cells to insert related contents, data or descriptions as accurate as possible

Water Treatment Plants???? WTP???? WTP???? WTP???? WTP

Booster Pumping Stations???? District???? District???? District???? District

Facilities/Year 2011 2012 2013 2014 2015 2016

???? WTP???? WTP???? WTP???? WTP

???? WTP???? WTP???? WTP???? WTP

Company NRW 0 0 0 0 0 0

Categories of NRW/ NRW, % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Pipeline loss

Management lossNo-meter Loss

Instituional LossOthers

Year 2011 2012 2013 2014 2015 2016Company Monthly Energy

Consumption 0 0 0 0 0 0Management/Admin

Productions 0 0 0 0 0 0Water Treatment Plants 0 0 0 0 0 0

???? WTP???? WTP???? WTP???? WTP

Booster Pumping Stations 0 0 0 0 0 0???? District???? District???? District???? District

Treatment Units/Year 2015.2 2015.6 2015.10 2016.2 2016.6 2016.10Intake Pumping

Chemical AdditionSedimentation

Filtration/BackwashingDisinfection

Produced Water PumpingDistribution Pumping

I II III IVBPS = V + VI + VII + VIII

VII VIII

High Energy Consumption Treatment Units of all WTPs, 10000 KW-hr/year or monthly averageNotes

Water Sale by each WTP

NotesProduced Water by each WTP

Water Supply and NRW of all WTPs, 10000 m3/year or monthly average

Notice for inserting the tables: cells with formulas no need to insert any data or info

V VI

Energy Consumption of Major Facilities, 10000 KW-hr/year or monthly averageNotes

COM = MAN + PROMANPRO = WTP + BPSWTP = I + II + III + IV

Basic Info of Major FacilitiesCapacity, m3/day Date Constructed Produced, m3/day Notes

Capacity, m3/day Units Produced, m3/day Notes

Notes

Bnasic Info of ??????? Water Supply CompanyDescriptions

0


Notice for inserting the tables: cells to insert contents and data be as accurate as possible, 所有数据尽可能越准确越好

Treatment Units/Months Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16Intake Pumping



Produced Water PumpingHVAC

LightingDistribution Pumping
















??? WTP: Monthly Energy Consumption, 10000 KW-hr




Name of WTP，净水厂名称：Year of Construction，建设年份：

Capacity m3/day，规模吨/日：Person prepared these tables，填表人：填表人联系方式：


Notice for inserting the tables:

Treatment Units/Months Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17Intake Flows

Intake PumpingProduced Water Pumping

Distribution Pumping

Treatment Units/Dates 01-Jul-16 02-Jul-16 03-Jul-16 04-Jul-16 05-Jul-16 06-Jul-16 07-Jul-16 08-Jul-16 09-Jul-16 10-Jul-16 11-Jul-16 12-Jul-16 13-Jul-16 14-Jul-16 15-Jul-16 16-Jul-16 17-Jul-16 18-Jul-16 19-Jul-16 20-Jul-16 21-Jul-16 22-Jul-16 23-Jul-16 24-Jul-16 25-Jul-16 26-Jul-16 27-Jul-16 28-Jul-16 29-Jul-16 30-Jul-16 31-Jul-16Intake Flows



Treatment Units/Dates 01-Dec-15 02-Dec-15 03-Dec-15 04-Dec-15 05-Dec-15 06-Dec-15 07-Dec-15 08-Dec-15 09-Dec-15 10-Dec-15 11-Dec-15 12-Dec-15 13-Dec-15 14-Dec-15 15-Dec-15 16-Dec-15 17-Dec-15 18-Dec-15 19-Dec-15 20-Dec-15 21-Dec-15 22-Dec-15 23-Dec-15 24-Dec-15 25-Dec-15 26-Dec-15 27-Dec-15 28-Dec-15 29-Dec-15 30-Dec-15 31-Dec-15Intake Flows



DateTreatment Units/Hour 12:00 AM 1:00 AM 2:00 AM 3:00 AM 4:00 AM 5:00 AM 6:00 AM 7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM 10:00 PM 11:00 PM

Intake FlowsIntake Pumping


DateTreatment Units/Hour 12:00 AM 1:00 AM 2:00 AM 3:00 AM 4:00 AM 5:00 AM 6:00 AM 7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM 6:00 PM 7:00 PM 8:00 PM 9:00 PM 10:00 PM 11:00 PM

Intake FlowsIntake Pumping


Name of WTP，净水厂名称：Year of Construction，建设年份：

Capacity m3/day，规模吨/日：Person prepared these tables，填表人：填表人联系方式：

Table 5: Minimum Hourly Flows and Energy Consumption, m3 and KW-hr (lowest energy consumption date from Table 3)

Table 2: Maximum Daily Flows and Energy Consumption, 10000 m3 and 10000 KW-hr (highest energy consumption month from Table 1)

Table 3: MinimumDaily Flows and Energy Consumption, 10000 m3 and 10000 KW-hr (lowest energy consumption month from Table 1)

cells to insert contents and data be as accurate as possible, 所有数据尽可能越准确越好

Table 1: Monthly Flows and Energy Consumption, 10000 m3 and 10000 KW-hr

Table 4: Maximum Hourly Flows and Energy Consumption, m3 and KW-hr (highest energy consumption date from Table 2)


APPENDIX IIIREPRESENTATIVE PHOTOS OF FIELD VISIT TO ALL WSCS

(submitted in separate file)


APPENDIX IVBASIC INFORMATION OF WSCS

(KEEP IN PROJECT FILE)


APPENDIX V-1ESTIMATES OF HISTORICAL NRW BREAKDOWNS



APPENDIX V-2HISTORICAL POWER USAGE AND PERCENTAGE ESTIMATES



APPENDIX VIDETAILED BREAKDOWN OF ESTIMATED TARGETS

Breakdown of NRW Reductions via World Bank LoanExisting Reduction Target Existing Reduction Target Existing Reduction Target Existing Reduction Target Existing Reduction Target

Total 30.9 6.9 24 38.8 16.67 22.13 25.7 9.5 16.2 64.1 29 35.1 33 3.2 29.8Transmission Main Loss 8.29 2.4 5.89 4.37 0.37 4 6.73 2 4.73 14.1 3 11.1 14.1 1.46 12.64

Community Pipeline Loss 15.41 2.1 13.31 24.74 14.75 9.99 13.51 5.11 8.4 12 4 8 12.3 0.84 11.46Meter Loss 1.85 0.49 1.36 2.29 0.31 1.98 2.46 0.82 1.64 5 1 4 2.3 0 2.3

No-meter Loss 0 0 0 0 0 0 0 0 0 25 18 7 0.84 0 0.84Management Loss 3.73 0.85 2.88 6.97 1.24 5.73 3 1.57 1.43 8 3 5 3.46 0.9 2.56

Others 1.62 1.06 0.56 0.43 0 0.43 0 0 0 0 0 0 0 0 0

Pipeline Loss 23.70 4.50 19.20 29.11 15.12 13.99 20.10 7.11 11.82 26.10 7.00 19.10 26.40 2.30 24.10Pipeline Loss w/ Meters 25.55 4.99 20.56 31.40 15.43 15.97 22.70 7.93 14.77 56.10 26.00 30.10 29.54 2.30 27.24

FushunNRW, %

Anshan Fuxin Gaizhou Shengyang

Source: Estimates provided by all WSCs, April 2017

Breakdown of Energy Saving via World Bank LoanEnergy SavingkW-h/month Existing Saving Target Existing Saving Target Existing Saving Target Existing Saving Target Existing Saving Target

Total 2,853,213 207,212 2,646,001 4,650,800 693,948 3,956,852 4,831,106 472,208 4,269,716 456,411 14,834 441,577 28,310,000 498,421 27,811,579Water Intake 1,290,022 64,501 1,225,521 2,341,000 342,436 1,998,564 2,749,512 288,059 2,461,453 206,870 0 206,870 4,500,000 0 4,500,000

Water Production 847,825 42,391 805,434 1,281,500 123,689 1,157,811 992,648 94,302 898,346 207,201 0 207,201 12,510,000 336,921 12,173,079Water Distribution 86,045 4,240 81,805 635,800 86,023 549,777 282,684 29,467 253,217 0 0 0 0 0 0

Booster Pumping 629,321 96,080 533,241 392,500 141,800 250,700 806,262 60,380 656,700 42,340 14,834 27,506 11,300,000 161,500 11,138,500

Anshan Fuxin Gaizhou ShenyangFushun

Source: Estimates provided by all WSCs, April 2017


APPENDIX VIICASE STUDIES OF REHABILITATED AND TO-BE-REHABILITATED

Anshan WSC - Case Study Rehabilitated and To-be-RehabilitatedNo. Communities Rehabilitated Communities To-be-Rehabilitated

Case 1 Fanrongsanwujiefang, 1232 household, 3080 people Qimeng, 1325 household, 3310 peopleCase 2 Qianshanfanfchan, 1908 household, 4200 people Qianshanfangchan, 1908 household, 4200 peopleCase 3 Jingxie, 850 household, 1870 people Ziyunhuifangyuan, 804 household, 2010 people

No. BPSs Rehabilitated BPSs To-be-RehabilitatedCase 1 Nanlushijia, 960 household, 2680 people Dade, 1000 household, 2700 peopleCase 2 Xianggelanshan, 900 household, 2350 people No. 11 Place, 850 household, 2120 peopleCase 3 Dakang, 420 household, 1200 people Bazhonggongan, 390 household, 1050 people

Fushun WSC - Case Study Rehabilitated and To-be-RehabilitatedNo. Communities Rehabilitated Communities To-be-Rehabilitated

Case 1 Rongxinghuayuan, 545 household, 1744 people Binhuyaju, 465 household, 1392 peopleCase 2 Lvchangnan, 971 household, 3107 people Yongshengtuliaochang, 898 household, 2425 peopleCase 3 Youjishequ, 1841 household, 5891 people Jiangjusuoqifangkuai, 1823 household, 5365 people

No. BPSs Rehabilitated BPSs To-be-RehabilitatedCase 1 Qiandian 2, 748 household, 1871 people Hepanjiayuan, 810 household, 2079 peopleCase 2 Julongjiayuan, 716 household, 1935 people Longdahuayuan, 790 household, 2505 peopleCase 3 Longdashiji, 711 household, 1849 people Huanan, 805 household, 1950 peopleCase 4 Shenglongjiayuan, 485 household, 1212 people Fenghuangtai, 510 household, 1390 peopleCase 5 Qiandian 1, 2455 household, 6383 people Shuiandongcheng, 2600 household, 7000 peopleCase 6 Weixiao, 1350 household, 3375 people Pinghufengying, 1500 household, 3900 people

Fuxin WSC - Case Study Rehabilitated and To-be-RehabilitatedNo. Communities Rehabilitated Communities To-be-Rehabilitated

Case 1 Jiawei, 323 household, 808 people Guangming, 377 household, 943 peopleCase 2 Yuandong, 1121 household, 3140 people Shuangyao, 1036 household, 2590 peopleCase 3 Dongyuan, 5623 household, 15744 people Changxin, 5305 household, 13263 peopleCase 4 Huahejubei, 1555 household, 4354 people Jinghuaxinrenlei, 1344 household, 3360 peopleCase 5 Xihuayuan, 1953 household, 5468 people Jiangjing, 2735 household, 6838 people

No. BPSs Rehabilitated BPSs To-be-RehabilitatedCase 1 Xianggeyuan, 846 household, 1980 people Junfenqusanhao, 431 household, 1078 peopleCase 2 Honwei 1, 1220 household, 3410 people Xinjiang 9th Building, 1064 household, 2660 peopleCase 3 Dianchang, 1496 household, 4040 people Renminjie Basement, 1449 household, 3623 people


Gaizhou WSC - Case Study Rehabilitated and To-be-RehabilitatedNo. Communities Rehabilitated Communities To-be-Rehabilitated

Case 1 Wujialou, 50 household, 138 people Guangyuanlou, 87 household, 231 peopleCase 2 Qinghejiayuan, 573 household, 1425 people Xingcheng, 443 household, 1108 people

Case 3-1 Mentun, 430 household, 1247 people Ludongsandui, 480 household, 1368 peopleCase 3-2 Mentun, 3357 people (referenced Baiguo) Baiguo, 1199 household, 3357 people

No. BPSs Rehabilitated BPSs To-be-RehabilitatedCase 1 Tiancihuayuan, 198 household, 495 people Huayang, 206 household, 515 peopleCase 2 Tiancihuayuan, 720 people Longfengyuan, 288 household, 720 peopleCase 3 Dongshengxinyuan, 436 household, 1158 people Xingchen, 443 household, 1108 people

Shenyang WSC - Case Study Rehabilitated and To-be-RehabilitatedNo. Communities Rehabilitated Communities To-be-Rehabilitated

Case 1 Dafanglian, 4968 household, 17755 people Beili, 5745 household, 17235 peopleCase 2 Maoquan, 2187 household, 7774 people Taihualin, 2892 household, 10122 peopleCase 3 Qunfangyi, 1882 household, 5748 people Fengjingmingcheng, 1150 household, 3450 peopleCase 4 Pangjiang, 1092 household, 3276 people Changjiang No. 37, 1022 household, 3577 peopleCase 5 Jinma, 505 household, 1515 people Jiangminer, 868 household, 2604 people

No. BPSs Rehabilitated BPSs To-be-RehabilitatedCase 1 Dafanglian, 4968 household, 17755 people Xianggongerhao, 4891 household, 17430 peopleCase 2 Maoquan, 2187 household, 7774 people Guangyisan, 2276 household, 7055 peopleCase 3 Sanbanan, 1892 household, 5676 people Minjiang, 1693 household, 5926 peopleCase 4 Ruishi, 700 household, 2100 people Jianji, 473 household, 1419 peopleCase 5 Mingcheng, 799 household, 2437 people Yijuyuan, 493 household, 1385 people


APPENDIX VIIIMONITORING DATA OF CASE STUDIES FOR REHABILITATION



APPENDIX IXDESIGN CONSIDERATIONS FOR PUMPING STATION

All pumping stations should be re-evaluated for their basic design, such as flow rates (average, peak and low), available head (dynamic or static) upstream of pump inlet, piping and valve control, monitoring equipment/device; pump selection including characteristics and efficiency against the required system operation curve, so that all selected pumps can perform as designed.

Pump Curves and Efficiency: Two types of pump curve presented in Figures A-1 and A-2 demonstrate typical pump operating curves for individual and multiple system pump operations. These two curves have typically been overlooked by most Chinese DIs during the design stage and relevant users during the system implementation and operation stages.

Figure A-1 Typical Pump Curve for Centrifugal Pump

Figure A-2 Characteristics of Multiple Pump Curves

Another critical operation feature is the static head available from the existing distribution system. This is typically overlooked or even neglected while calculating the pumping efficiency and energy consumption. In addition, Chinese DIs typically like to size the pump using the worst-case scenario, that is using the maximum pumping requirement for lifting water from the upstream pipelines or storage tanks to their end users. Yet, in reality, certain amount of static head14 is still available within the distribution system and should be capitalized during regular

14 1 meter static head is almost equivalent to 0.01 MPa.

operation. Low flow, especially during night time, should be monitored for as many months as possible, so to better size the pump characteristic or units to accommodate the variable flow situations for any service areas.

VFD Cannot Solve All Issues: Motor with VFD control should be carefully evaluated for each pump, especially for selecting the adequate size of pumps to deal with the peak and low demand periods, not only to accommodate flow variations but also to be able to optimize the system control mechanism. Also, system operation should ensure all operation conditions are well designed and controlled within the most efficient range for all motors with the provision of VFD, to achieve better energy saving. It is important to recognize that VFD is a good mechanism for flow control but not an almighty solution for some people thought it would be.

Pump Selection Scenario for Secondary BPSs: For secondary BPS with or without produced water storage tank, its available pressure residual head should be capitalized as much as they could and to optimize the static head availability for routine operation and thereby accomplish the best energy saving options. In addition, using different size of pumps to provide variable flows to handle the maximum and minimum flow conditions can be an alternative option for certain secondary BPSs. For this type of setup, less standby pump units can be achieved to save the capital investment and less O&M budget as well. For cities need to accommodate high-rise buildings, multi-zone secondary BPS will need to thoroughly consider all possible factors of pumping control since the pressure and flow conditions are more complicated and sensitive than single-zone secondary BPS.

Popular Setup of Secondary BPS in China Multi-Zone Secondary Pumping Station

Also, hydro-pneumatic tank with adequate flow and pressure control can provide small communities a better service than a traditional pumping station with complicated control. This alternative should be considered for certain secondary BPS, especially for Gaizhou WSC since its BPSs are relative small.


High Zone BPS

Mid Zone BPS

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