Assessing the implementation of non revenue water (NRW) management efficiency based on economic indicators: Case of Bechah Tendong, Kelantan, Malaysia

Abstract

The State of Kelantan has recorded high Non- Revenue Water (NRW) Rate every year lately. Among the areas that recorded the highest NRW level was in Bechah Tendong, Pasir Mas, Kelantan with a value of 62%, hence this area was used as a case study. This study aims to assess and identify the economic implications of the implementation of NRW management in the study area from 2014 to 2023. The benefit-cost ratio (BCR), payback period (PBP), return on investment (ROI) and net present value (NPV) were used as an indicator. The results shows that, BCR recorded as 1.03, PBP=9.32, ROI (%)=6.40 and NPV=RM 405,576.82. It can be concluded that, the efficiency management of NRW at the case study area was able to generate income through savings in 2023 by RM 270,560.54, spesifically to the Kelantan Water Private Limited (AKSB) and generally to the state government.