Samuda: Non-Revenue Water is a crisis that Jamaica must fix

Jamaica is facing a significant challenge with non-revenue water (NRW), a problem that Minister of Water, Environment, and Climate Change, Matthew Samuda, has unequivocally labeled a "crisis" demanding immediate attention. This issue, where treated water is lost before it can be billed to customers, is not merely an inconvenience; it represents a substantial drain on the nation's resources and infrastructure.

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I be direct about one of the most serious structural problems in Jamaica’s water system: non-revenue water. NRW is water that is produced, treated, and pumped, but never reaches a paying customer.

Samuda articulated the multifaceted impact of NRW during his address to the House of Representatives. He highlighted how this inefficiency drives up energy consumption for water treatment and distribution, constrains the available water supply for the population, and poses a serious threat to the financial sustainability of the state-owned National Water Commission (NWC). The stark reality is that if left unchecked, NRW jeopardizes the very viability of the NWC, a critical service provider for the island.

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NRW is acknowledged as a crisis that we must fix.

To combat this pervasive issue, Jamaica has embarked on an ambitious NRW Reduction Programme. This multi-year initiative, with an estimated cost exceeding US$340 million, is designed to systematically tackle the problem over an 11-year period. The program's primary objective is to drastically cut the current NRW rate of 71% down to a more manageable 30%. The procurement process for this extensive project is already in motion through international competitive bidding, signaling a serious commitment to resolving the crisis.

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The annual financial return is clear: $10.7 billion, comprising $7.7 billion in additional revenue from improved billing and collection; $2.8 billion in electricity savings; and $167 million in chemical cost savings.

The economic rationale behind this significant investment is compelling. Samuda presented clear financial projections, indicating an annual return of J$10.7 billion. This return is expected to come from a combination of increased revenue due to improved billing and collection, substantial savings in electricity costs, and reductions in chemical expenses associated with water treatment. The minister emphasized that the benefits are not theoretical, citing positive results already observed in Kingston, St. Andrew, and Portmore, underscoring that the program "pays for itself" and is a sound investment for Jamaica's future.

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It pays for itself.