Apresentação realizada pela IFC durante o lançamento do Manual de Perdas de Água promovido pela IFC, GO e Hiria em julho de 2013. Mais informações em: http://combaterperdasdeagua.com.br/ ou www.hiria.com.br

1. Working with Water Utilities
SBA- REF - LAC
Promoting Resource Efficiency
July 2013

2. IFC in the Water Sector
2
Water Demand Management
and Efficiency
• Demand-Side Management
• Water and Energy Efficiency
• Performance-Based Contracting
(PBC)
• Water Use Service companies
(WUSCOs)
• Industrial Water Use Efficiency
• Agricultural Water Use Efficiency
Wastewater Treatment
Sanitation and Solid Waste
• Wastewater /Reuse Treatment
• Agricultural Water Reuse -
Irrigation
• Private Industrial reuse and off
takers
• Power sector off-takers
• Solid Waste
Water Supply
• Bulk Water Supply BOOTs
• Ground Water
• Desalination
• Multiple-Use Water Facilities
(MUWFs)
IFC Business Plan focuses on five key areas
Key Growth Opportunities on Demand and Supply sides
Distributed Services
• Un-served consumer access
• Off-network water and sanitation
services
Innovative Technology
• Nano-technology
• Sustainable technology (water/
energy efficient)
• Distributed technology (e.g. on-site
treatment)

3. 3
Areas of potential support
The objective is to support the sustainable delivery of services by utility
companies through provision of advisory services and follow-up client investment
in efficiency and loss reduction activities.
• System optimization, distribution system automation, leak detection, storage
tanks management, install pressure regulators, improve energy efficiency in
pumping/facilities, etc.
• Metering programs, advance metering infrastructure, strategies for theft
identification, advanced data analysis techniques, remote communication, etc.
Technical and
Non-Technical
Loss Reduction
• Load profiling, DSM action plan design, implementation support.
• Utility-led Efficiency (Support for utility implemented EE programs such as street
lighting, or establishment of ESCO subsidiary).
Demand Side
Management
• Standard contract development, project structuring, performance-based
contracting services, procurement assistance, promotion of contracts with
ESCOs and WESCOs.
• Payment structuring based on performance metrics (e.g., guaranteed savings
vs. shared savings), success monitoring, etc.
Contract
Development
Assistance

4. 4
Working with Water Utilities
Triple A, Colombia
 Awarded a $3.5 million contract for the
implementation of energy efficiency improvement
measures identified by the SBA REF scoping.
 The client’s investments from internal funds will
consist of high-efficiency electrical motors,
pumps, and variable speed drives throughout
the entire water network.
 Installation of new equipment is expected to
recover investment in less than four years.
 In the second quarter of FY13, Triple A committed
US$12.1 million to implement additional water loss
reduction measures.
Water Utility Ref Project: Triple A, Colombia
 This investment will finance the installation of more than 120,000 water meters, including remote control
flow and pressure meters throughout the entire network.
 The water loss reduction initiative will be implemented in combination with an energy efficiency action plan.

5. 5
Working with Water Utilities
SEDAPAR, Colombia
 A state-owned water utility servicing
nearly 1.2 million people in
Arequipa metropolitan area.
 The scoping identified energy and
water savings of about US$3
million/year.
 The identified investment is
estimated at US$14 to 20 million.
Water Utility Ref Project: SEDAPAR, Perú

6. 66
Innovative Delivery Models
Model Objective IFC’s Role JVs Target Sector
Supplier REF Strengthen the value chain by
effectively channeling REF
financing mechanisms through
portfolio development.
Push-Pull approach to stimulate local markets by:
1. Aggregate market demand (via bidding mechanisms) for
financing offers that exist or being established.
2. Match existing market demand for REF financing with FI/
Funds.
3. Support SME achievements of resource efficiency/low carbon
footprint metrics and standards to enable supplier finance
mechanisms
SBA, A2F,
MAS, FM
MAS value
chains,
particularly in
agriculture/
agribusiness.
REF-C3P
Partnership
Enhance climate change
interventions and the impact of
C3P infrastructure projects
Join venture with C3P in LAC to actively participate in market
mapping, business development, technical supervision and
technology advise of infrastructure projects aimed to enhance
climate change development impacts.
PPP Public entities
Captive
Generation
Promote the use of renewable
power sources among
manufacturing clients/potential
clients in agribusiness sectors.
1. Assist manufacturing firms with feasibility analysis, project
structuring, and financing of captive power generation with
renewable fuels.
2. Procure EPC/ESCO partners and structure and bid-out PPAs.
3. Strengthen EPC, ESCO’s and technology suppliers in the
local market.
SBA, PPP,
Infra, MAS
Large MAS
firms
ESCO
Mechanism
Increase direct funding to utilities
and large MAS firms to implement
resource efficiency measures
through ESCOs/WESCOs
Work with utilities on demand side
management to make consumers
energy efficient
1. Open up markets for ESCO model
2. Mobilize funding to establish or support a funding mechanism
for ESCO/WESCO to implement resource efficiency
measures.
3. Develop the regulatory/legal framework to enhance ESCO/
WESCO mechanisms applicable to local conditions.
SBA, A2F,
PPP, FM,
MAS, Infra./
Subnational
Public entities,
Utilities,
Large MAS
firms
Green
building
Catalyze the transition to more
efficient (sustainable) building
practices in the region
Work at three levels (i) regulatory, (ii) partner certification and (iii)
firm (developers and FI). Develop a platform for deployment of
EDGE tool as an initial market offering tied to a series of AS
projects with authorities, FIs, developers, etc.
Green
Building
Program/
EDGE
New housing/
infra
structure sector

7. Traditional Delivery Model
Consulting/Management Contracts
No risk / reward structure
No incentive
No private capital invested
Required utility to cover capex
for rehab/repair
New Delivery Model
Performance-Based Contracting (PBC)
Private companies work at risk
Performance reward for water saved
High rate of return benefits
both utility and contractor
Lower risk / lower profile
Targets greatest efficiency gains
Opportunities
Water loss management companies
WESCOs and ESCO companies
Industry –water savings plans
Agribusiness/Irrigation companies
Efficient irrigation, etc.
Performance-based contracting
Financial market
Leasing companies (efficiency)
IFC Additionality
Private sector contracting
expertise for PBC contracts
Catalyze private capital
investment on PBC contracts
Sub-national /advisory support
to utilities for NRW reduction
Link to client portfolios
7
Performance-based contracting
An innovative delivery model

8. 8
Marco Giussani
Operations Officer
IFC Sustainable Business Advisory
in Latin America and the Caribbean
Tel: +52(55) 3098-0154
E-mail: Mgiussani@ifc.org
Luis Alberto Salomón Arguedas
Resource Efficiency Specialist
IFC Sustainable Business Advisory
in Latin America and the Caribbean
Tel: +52 (55) 3098-0136
E-mail: Lsalomon@ifc.org
Muito Obrigado
Contact

9. Otras opciones de slides
9

10. • IFC’s Resource Efficiency teams
work with firms to save costs,
prevent waste, and reduce
greenhouse gas emissions
through more efficient use of
energy, water, and materials.
• At the sector level, we promote
broader adoption of good
practices through case studies and
benchmarking energy, water, and
material use.
10
Resource Efficiency
Pulp and Paper Ref Project: FAPSA, México

11. 11
Private and Public stakeholders
IFC works with private and public stakeholders to promote the
adoption of more efficient resource use by:
 Assessing potential for increased energy, water, and material efficiency at the
firm level.
 Developing and undertaking sector benchmarking of resource efficiency
indicators for certain resource-intensive sectors to overcome knowledge gaps.
 Collaborating with financial institutions, industry groups, and other market
aggregators to scale up investment in advanced technologies.
 Promoting resource-efficient best practices and standards such as green
buildings standards.
 Analyzing and supporting policy and regulatory needs on energy/water
efficiency and waste prevention/recycling.

12. 12
REF Utilities (power, water and municipal waste) in LAC Project
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Objective: Increase investment flows in resource efficiency in utilities thorough a combined firm-specific
and sector level approach to reduce technical and non-technical losses and improve efficiency. The sector
approach will promote demand-side solutions in industry, commerce and public infrastructure using utilities
as aggregators.
Targets: contribute up to 220,000 tCO2e in GHG emission avoidance (IDG6a) by FY16 (Lifetime: 0.7 M tCO2e)
and 30 M m3 of water saved by FY16 (lifetime: 100 M m3)
Key Strategic Focus, FY14-16
• Firm specific approach – focus will be the LAC region, with particular focus
on Caribbean, Central America sub-regions.
• Sector approach - the focus will be water utilities in Brazil and municipalities
in Mexico (frontier regions) promoting ESCO/WESCO and PPP solutions.
• Water Utilities (production, distribution and waste water treatment)
• Power Utilities (distribution and renewable generation)
• Municipal governments (municipal solid waste - renewable generation, street
lighting, green building retrofit)
• Utility efficiency (firm level approach)
• REF-C3P partnership
• ESCO / WESCO Mechanisms
• One additional staff/ STC with support of existing REF team.
Geographic Focus
Sector Focus
Delivery models (refer to slide 15)
Delivery Capacity
Budget FY14-16
Pricing Intention (to be tested)
Supply-side REF - 50 to 80% contribution
Demand-side REF via utilities - up to 100%
contribution at maturity
REF
U&li&es
Project
Item
FY14
FY15
FY16
Total
Staff
80,000
90,000
90,000
260,000
Consultants
200,000
250,000
250,000
700,000
Other
60,000
90,800
98,575
249,375
Total
340,000
430,800
438,575
1,209,375
Item
FY14
FY15
FY16
Total
Reveues
168,000
204,000
204,000
576,000
Donor
75,000
75,000
100,000
250,000
Unsecured
97,000
151,800
134,575
383,375

13. 13

14. 14

15. 15

16. 16

17. Pilot Efforts: LAC Utility (p584727)
• Project supported initial scoping visits to three clients, initial analysis of
utility efficiency opportunities
• Delsur (Privatized distribution company in El Salvador)
 Not current client, but interested in potential IFC investment engagement
 Potential value add in smart meter/loss reduction advisory work
• AAA (privatized water utility in Colombia)
 Existing IFC client with high levels non-revenue water loss, high levels of
energy consumption
 Good potential for efficiency investments, and appetite for follow on IFC
loan
• NAWASA (public water utility in Grenada)
 Potential IFC sub-national finance client, high interest from INF
 High per unit energy costs, high levels of NRW
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18. Clients: Initial results
• Utility Efficiency pilot audits identified over $35.6 million of energy and water
loss reduction investment opportunities for three clients.
• If implemented, these investments could provide $16.6 million in direct annual
cost savings to the clients
• Investments have the potential to trigger 6 million cubic meters (m3) of water
saved and almost 17 million kilowatt hours of energy saved annually.
• Results from successful implementation could trigger over 82,930 tonnes of
avoided GHG over ten years.
7/22/13 Version 2.0
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