Two companies have signed a half-billion Birr contract to supply and install equipment that controls and measures utility water flow to cut down on wastage. The Ministry of Water & Energy has selected nearly two dozen towns, including Dessie, Jimma and Arba Minch, for a pilot programme.

Agrabat Construction & Trading and Wada Engineering Plc have entered a joint venture deal with BAYLAN Water & Energy Metres, a Turkish company. They will supply over 41,000 water metres, including the smart metres, for the 22 selected urban centres at the cost of 200.6 million Birr (4.2 million dollars). G6 Trading has been contracted to supply and install 282.9 million Br leak detection equipment, testing benches, and welding machines in partnership with JUSTOR SPOL.SR.O, a Slovakian manufacturer.

Incorporated a decade ago, Wada Engineering Plc is constructing water and sewage treatment plants and irrigation dam infrastructures. In business for 15 years, G6 Trading is an exclusive agent of Apator Powogaz S.A, a water metre manufacturer based in Poland, among others.

The companies are committed to supplying the equipment in five months.

The project is part of the World Bank financed program designed to improve water supply and operational efficiency in secondary cities.

“There will be similar works in several other cities,” said Asfaw Dingamo, a state minister for Water & Energy, signing the agreement last week at the Ministry's headquarters on Haile Gebreselassie Avenue. Ministry officials say it is necessary to replace water metres that have long passed service periods and cause waste and unregistered water usage, also known as "non-revenue water (NRW)."

The smart metres help regional water utility bureaus to collect bills in advance and save resources, according to Fitsum Birhan, a representative of Agrabat Construction and Wada Engineering.

Studies conducted by the Ministry revealed that close to 40pc of the water supply goes to waste, with the volume increasing in some places. The project aims to reduce wastage, says Tewodros Mergia, communications director at the Ministry.

"The government will benefit if it can manage to bill every drop of water supplied," said Tewodros. "And the water that goes to waste would reach users."

Over 3,500 leak detection equipment will be distributed among all towns under the project, while six-metre testing benches will go to four: Wolaita Sodo, Arba Minch, Jimma and Dessie. Addis Abeba is not part of the project, for it has relatively better control over efficiency. The Addis Abeba Water & Sewerage Authority (AAWSA) oversees the supply of 93 million cubic metres of water over the first half of the year, generating 865 million Br from utility bills.