COUNTRY | Japan
REGION | Asia
SECTOR | water and waste
QII Principles | Principle 1 Sustainable Growth & Development, Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle 4 Building Resilience, Principle 5 Social Considerations, Principle 6 Infrastructure Governance
QII Sub-Principles | 1: SDGs, 1: Paris Agreement, 1: Wider economic benefits, 2: Value for money analysis, 2: Life-cycle costing, 2: Operation and maintenance, 2: Technological innovation, 2: Risk management, 3: Environmental Impact Assessment, 3: Disclosure of environmental aspects, 3: Ecosystems, 3: Climate, 3: Emissions, 4: Resilience, 4: Disaster risk management, 4: Disaster risk insurance, 5: Social Impact Assessment, 5: Capacity and institutional building, 5: Occupational health and safety, 5: Universal access to services, 5: Social inclusiveness, 5: Low-income groups, 5: Displaced communities, 5: Vulnerable environments, 6: Growth & development strategies, 6: Procurement transparency, 6: Financial & debt sustainability, 6: Anti-corruption, 6: Access to information and data, 6: Legal and Regulatory Frameworks, 6: Institutional Framework of infrastructure investment, 6: Transparency of infrastructure investment, 6: Enabling Environment, 6: Policy
Overview
Fukuoka City is one of the most prominent cities in Japan today. Early consolidation of basic infrastructure supported their sustained growth in the post-war period. This approach was particularly important in the water sector since Fukuoka had very limited water resources.
Having suffered from a historic drought in 1978, the city set out a vision to become a “Water Conscious” City and further strengthened their efforts for efficient water management.
Three major initiatives were:
- Development and upgrading of water distribution pipe network
- Establishment of a Water Distribution Control Center
- Leakage reduction measures
For economic evaluation, this case study saw the Water Distribution Control Center and leakage reduction measures as a combined set of investments. The total project cost is JPY 16.9 billion (US$ 150 million).
Fukuoka City also has been carrying out capacity building projects on water management with Yangon City, Myanmar, making use of the know-how it has accumulated over the years.
Timeline
1979: Establish the Water Distribution Control Cener + Ramp investments in leakage reduction
Relevance to QII
Fukuoka pioneered life-cycle costing in Japan by making incremental investments in leakage reduction and pipe upgrades. In the process, Fukuoka incorporated latest technology such as remote monitoring and control of water flow with motorized valves. Furthermore, early consolidation of water infrastructure made Fukuoka competitive and liveable, thus attracting talent and growth industries in service sector.
The Water Distribution Control Center was one of the first cases in Fukuoka which adopted the Comprehensive Evaluation method for procurement. This method improved the technical quality and procurement transparency of public works.
Benefits
The Water Distribution Control Center enables real-time monitoring and control of water flows and pressure across the city?s entire water distribution network. Leakage reduction measures include leakage inspection, service pipe replacement, lead service pipe replacement, and cathodic protection. This set of investments reduced leakage rates from 13% to 2%. Lower leakage rates led to reductions in water production and delivery costs. The benefit was JPY 32.5 billion (US$ 300 million), and the net present value (NPV) was JPY 15.7 billion (US$ 140 million). The B/C ratio is 2.1, and the internal rate of return (IRR) is 15%. Pipe upgrades with polyethylene sleeves extended the lifespan of pipes from 40 to 80 years with 1-2% additional costs. This reduced recurring pipe replacement costs by 13%.
Metrics
Leakage rates, reduction in operational expenditures
Name of Institution
Ministry of Finance, Japan
Website URL