232
inter alia agricultural imports lies with the cabinet – not with the sector; and
historically, low tariffs have helped to protect the poor and farmers working at the
margins. Meanwhile, government focus on new supplies to deliver water security
silenced debate on the need for effi cient and fairer allocation; while access to “virtual water”
5 helped to disguise the scale of the crisis and the need for increased
demand management (Allan 2003 ).
With these constraints, the 1997 tariff system, with its 2002 By-Law revisions,
remained unchanged, despite USAID making cash transfers for GOJ projects conditional on agreed steps towards full cost recovery, including raising tariffs (USAID
2011 , p. 8). Agriculture continued to pay less for water than the municipal and
industry sectors – and below the cost of delivery. Low prices and import tariffs
worked against commitments to improve end-use effi ciency reduce waste and
increase conservation. They distorted allocations so farmers lacked incentive to
switch to higher-value water-effi cient crops. Agriculture’s share of renewable water
declined, but not signifi cantly; and overall, the Highlands area given to irrigation
increased (Hagan 2008 , p. 32).
15.1.3.3 Reducing Non-Revenue Water (NRW)
The high level of NRW – water supplied that raises no revenue – represents huge
waste of low-cost water supply (Salameh 2007 ; MWI 2009 ). With an average
45–47 % of water pumped through supply works lost to NRW, an estimated
137 × 10
6 m
3 of the total 320 × 10
6 m
3 municipal allocation would have been lost in
2009 (Denny et al. 2008 , p. 10; MWI 2009 , pp. 3–2). The government has reiterated
the need to reduce NRW – with the JWS aiming to reduce the level to 25 % –
through addressing leakages, illegal pumping and meter defi ciencies. Despite huge
expenditure on infrastructure, corporatisation of utilities and donor projects to
improve effi ciency, reductions have not been signifi cant.
One reason has been the slow pace of privatisation owing to political opposition.
The government favours private-sector involvement in water and wastewater services in order to attract investment and implement reforms to improve fi nancial
sustainability. But by 2011, only three utility companies, owned by the Water
Authority of Jordan (WAJ), had been established and their operations corporatised.
6
Moreover, results were mixed. The Aqaba Water Company (AWC) reduced NRW
levels signifi cantly, but Miyahuna (Amman) and the Yarmouk Water Company
(YWC) recorded continuing high losses – 35.3 % and 40.8 %, together accounting
for an estimated average annual loss to NRW of 77 × 10
6 m
3 of a total 80 × 10
6 m
3 for
the three companies (USAID 2012 ). Poor performance was reportedly mainly due
to distribution practice of undersupply and rationing, since intermittent fl ows
5 The term coined by Professor Tony Allan refers to water used to produce grain and food imports.
6 In 2007, the original Amman private operator was substituted by Miyahuna, a company owned by
WAJ with private involvement. The AWC and YWC were similar companies established in 2004
and 2011 respectively.
V. Yorke
inter alia agricultural imports lies with the cabinet – not with the sector; and
historically, low tariffs have helped to protect the poor and farmers working at the
margins. Meanwhile, government focus on new supplies to deliver water security
silenced debate on the need for effi cient and fairer allocation; while access to “virtual water”
5 helped to disguise the scale of the crisis and the need for increased
demand management (Allan 2003 ).
With these constraints, the 1997 tariff system, with its 2002 By-Law revisions,
remained unchanged, despite USAID making cash transfers for GOJ projects conditional on agreed steps towards full cost recovery, including raising tariffs (USAID
2011 , p. 8). Agriculture continued to pay less for water than the municipal and
industry sectors – and below the cost of delivery. Low prices and import tariffs
worked against commitments to improve end-use effi ciency reduce waste and
increase conservation. They distorted allocations so farmers lacked incentive to
switch to higher-value water-effi cient crops. Agriculture’s share of renewable water
declined, but not signifi cantly; and overall, the Highlands area given to irrigation
increased (Hagan 2008 , p. 32).
15.1.3.3 Reducing Non-Revenue Water (NRW)
The high level of NRW – water supplied that raises no revenue – represents huge
waste of low-cost water supply (Salameh 2007 ; MWI 2009 ). With an average
45–47 % of water pumped through supply works lost to NRW, an estimated
137 × 10
6 m
3 of the total 320 × 10
6 m
3 municipal allocation would have been lost in
2009 (Denny et al. 2008 , p. 10; MWI 2009 , pp. 3–2). The government has reiterated
the need to reduce NRW – with the JWS aiming to reduce the level to 25 % –
through addressing leakages, illegal pumping and meter defi ciencies. Despite huge
expenditure on infrastructure, corporatisation of utilities and donor projects to
improve effi ciency, reductions have not been signifi cant.
One reason has been the slow pace of privatisation owing to political opposition.
The government favours private-sector involvement in water and wastewater services in order to attract investment and implement reforms to improve fi nancial
sustainability. But by 2011, only three utility companies, owned by the Water
Authority of Jordan (WAJ), had been established and their operations corporatised.
6
Moreover, results were mixed. The Aqaba Water Company (AWC) reduced NRW
levels signifi cantly, but Miyahuna (Amman) and the Yarmouk Water Company
(YWC) recorded continuing high losses – 35.3 % and 40.8 %, together accounting
for an estimated average annual loss to NRW of 77 × 10
6 m
3 of a total 80 × 10
6 m
3 for
the three companies (USAID 2012 ). Poor performance was reportedly mainly due
to distribution practice of undersupply and rationing, since intermittent fl ows
5 The term coined by Professor Tony Allan refers to water used to produce grain and food imports.
6 In 2007, the original Amman private operator was substituted by Miyahuna, a company owned by
WAJ with private involvement. The AWC and YWC were similar companies established in 2004
and 2011 respectively.
V. Yorke