Non-revenue water: financial model for optimal management in developing countries – application in Aqaba, Jordan

Abstract

This paper presents the application of a financial model for optimal non-revenue water (NRW) to the Aqaba Water Company (AW), which serves approximately 130,000 residents of the Aqaba Governorate in Southern Jordan. It describes the water supply circumstances in Aqaba, summarizes previous NRW-reduction programs and their historical impacts, outlines the process of application for an NRW financial optimization model, and then presents the results, focusing on Aqaba City in particular. Currently, Aqaba Governorate's water is supplied from non-renewable groundwater drawn from the Disi Aquifer. With growing water demand, Aqaba will face a severe constraint – the limited capacity of wells and of the pipeline from Disi to Aqaba. As of 2010, the actual NRW was 361 L/customer/day, while the optimal amount was found to be about 89 L/customer/day. Sensitivity analysis shows that the reliability of the optimal NRW model result is plus or minus 10%. Depending on the effort expended, AW could reach optimal NRW by 2014–2017. Approximate projections show that NRW reduction can be a ‘source’ of water supply for the near future by delaying the date when Aqaba reaches full capacity of its current source of supply. However, a major new source of water will be needed for the long term. The paper concludes with a discussion of observations, conclusions and future work.