Dreampipe II encouraging the development of workable and replicable ideas for how to expand the financing available for non-revenue-water (NRW) reduction activities in developing countries – beyond the conventional sources (mainly the development banks and agencies and governments).
Non-Revenue Water (NRW) refers to the difference between the amount of water put into the water piped system and the amount of water billed to customers. This difference is due to physical water losses, from burst and unrepaired pipes or from overflow at storage tanks, and commercial water losses, due to incorrect or lack of billing and unauthorised water consumption. NRW affects all water utilities but is particularly high in many utilities in the developing world.
The focus of Dreampipe II is on NRW-reduction activities and investments with high benefit-cost ratios and rapid payback periods – rather than on massive programmes of mains replacement that may be justified only over the longer term. In many utilities, the financial gains generated from the top-priority set of NRW reduction activities (in decreased costs and increased revenue – while holding user tariffs constant in real terms) should be able to pay back the up-front investments and financing costs in 5–10 years.
This aspect is what drives the requirement that contestants plan an expansion project that will be financed to a substantial extent by non-traditional sources of funding and finance, many of whom may require market interest rates.
Building on the experience gained from Dreampipe I (formerly known as Dreampipe Stage 1), a second Dreampipe prize competition will now take place: Dreampipe II. This prize competition will consist of three distinct phases.
Prizes will be awarded to the winners of each phase.
- Phase 1 - Business Plan competition, opened in early 2017
- Phase 2 - Demonstration Project, launches mid 2017
- Phase 3 - Fully Structured Deal, launches mid 2018