Efficiency
There are many different indicators for utility efficiency. In the case of China, some indicators, such as labor productivity, suggest a low level of operational efficiency, while other indicators - such as non-revenue water - suggest a high level of operational efficiency.
Labor productivity Most water and sanitation utilities in China have a low labor productivity and are overstaffed. For example, many utilities in small towns in Henan province have more than 20 employees per 1,000 connections, while international good practice is less than 4 employees per 1,000 connections. In Chengdu, the utility employed 34 employees per 1,000 connections, while in Shanghai, the ratio was less than 6 employees per 1,000 connections.
Non-revenue water Non-revenue water (NRW) - consisting mainly leakage losses in the distribution network - are estimated by the Chinese Waterworks Association to be only 20% on average and less than 10% for the best utilities, which is very low by international standards. The International Benchmarking Network for Water and Sanitation Utilities estimated the non-revenue water for a sample of Chinese water utilities at 27% in 2006 and 21% in 2001.
One explanation for the relatively low level of NRW may be that most Chinese live in dense apartment complexes, which results in compact distribution systems. In some smaller cities, non-revenue water remains relatively high. For example, average non revenue water in small towns in Henan province is 38%.
Read more about this topic: Water Supply And Sanitation In The People's Republic Of China
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