D2-S7-Doppenberg

8/6/2019 D2-S7-Doppenberg

http://slidepdf.com/reader/full/d2-s7-doppenberg 1/22

The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use.

Terminology

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Content Presentation

• Vitens – Evides International

• Share experience in setting up WOPs

• 2 cases in a (small!) nutshell

• Da Nang, Vietnam

• Ulaanbaatar, Mongolia

• Lessons learned



Water companies: Vitens and Evides

Vitens Evides

Drinking water

Sanitation

350 Mm3 266 Mm3

1.2 M p.e.

Turnover € 423 million € 283 million

Distribution network 47,500 km 12,000 km

Connections 2.3 million 1.0 million

Staff 1,500 520

Annual contribution to

VEI

2M€ per annum



Vitens – Evides International

• Mission

• Contribution to improvement of global water & sanitation services

• Strategy

• Strengthen operational & financial performance and autonomy of urban water operators

sustainable services, also to the urban poor

• Main characteristic

• Transfer of know how & expertise, and

• Capacity building

• Multiple year partnership

• Not for profit not for loss

• No investments



Supporting context

• Contribution from share holders of VEI:

• At present M€ 2 per annum

• Funds from Donors & Banks

• Dutch government, WB, EU-facility

• Support from (VE) customers in NL

• Donations to Foundation Water for Life (M€ 0.8 in 2008)

• Human resources• Motivated staff from mother companies

• Amendment to water bill in NL

• Contribution from water companies allowed

up to 1% of annual turn-over



Portofolio

• Water Operator Partnerships

• Mozambique South

• Mozambique North

• Taiz, Yemen

• Ulaanbaatar, Mongolia

• Ho Chi Minh City, Vietnam

• Da Nang, Vietnam

• Management Contracts

• Ghana

• Service contract

• Malawi

• Technical Assistance

• Suriname, St Eustatius, Kenya



Design considerations WOP

• Sustainability of WOP intervention

• Matching need and capabilities/resources

• “From paper to the field”Budget for small investments

• Monitoring performance of WOP

• Structure of WOP

• Funding

We are still learning from our WOPs !



Sustainability of WOP intervention

•Shared sense of urgency to improve

•Minimum size to have impact

•WOP contributes to development plan

•Development plan (10 years) of a.o.:

•Institutional framework/autonomy

•Service level

•Development of organisation & HR

•Investment, financial plan, tariff policy

•Etc.

•Endorsement by all stakeholders !

Intervention WOP is relatively short !

WOP intervention



Matching need and capabilities

Autonomy operator/regulation

Managerial capacity

Operational capacity

Operational inefficiencies/losses

• First and real challenge of WOP ‘this is where it starts’

• Identify root of problem

• Agree upon focal points of WOP chemistry of partnership

Institutional framework

Capacity building/organisation

Training/manuals

Programs for intervention

Problem Focus



Small investments

• Purpose: “from paper to the field”

• Pilot projects

• Demonstration projects

• Implement improvements/changes/rehabilitation

• Sources of funding:

• Donor• Recipient operator



Monitoring of WOP

• Steering committee (representatives of partners)

• Monitoring performance (KPIs)

• Guidance & advice

• Conflict management (advice from independent audit team)

• Management of WOP (RPM and Director of recipient operator)

• Reports to the steering committee

• Reports to local government (depends on prevailing regulation)

• KPIs used

• Mainly input & output based

• Objective based



Structure of WOP

• Working teams of recipient operator

• Implement improvements/changes

• Responsible for plan of activities

• Short term experts from mentor operator

• Group of “problem owners”

• Peer to peer with working teams

• Coaching the working teams

• Training

• On the job & classroom (local & in NL)

• Supported by exposure visits

• Internship



Funding

• Financial contribution from operators:

• Human resources

• Small investments

• Contribution donor

• Human resources

• Travel & lodging

• Small investments

• Training & visits



Da Nang, Vietnam

• DaWaCo, drinking water company

• Strategic objective:

• Enhance operational & financial performances

• Ring fence a part of additional revenues for urban poor

• Activities

• Enhance quality of output WTP• NRW reduction program

• Improvement financial and billing & collection process

• Implementation of Asset management concepts

• Implementation of pro poor program, incl .tariff structure

• Program period = 3 years (2008 – 2011)

• Budget = M€ 3.2



Phased approach

Inception phase

•Base line survey, analysis of needs•Plotting common interest

Partnership building phase (9 mnths)

•Mid term development plan

•Focus & priority settingCommitment

Parallel activities (9 mnths)

•Pilots NRW reduction program

•Design & tendering software for FIS and B&C•Design & tendering bulk meters

Implementation (>= 2 years)



NRW reduction program

• Care taker teams

• Ownership in area with 3,000 – 5,000 connections

• Pro-active leak repair program

• Monitoring: NRW per C(are) T(aker) A(rea)

• Central control unit (CC)

• Flow distribution & pressure management

• Asset management

• Hand book, standards for design, materials

• Leak registration - Data base

• Result up to now• Reduction of NRW (39% to 30%)

• Minimum investments (IRR < 2 year) !!!!

• Enhanced own capability of DaWaCo



Ulaanbaatar, Mongolia

• USUG, Ulaanbaatar Water Supply and Sewerage Authority

• Strategic objective:

• Enhance operational performance (water supply and waste water management)

• Increase (financial) autonomy

• Activities

• Enhance operational control of drink water production & distribution

• Improvement of waste water collection and treatment process

• Development of a well field protection plan

• Improvement of services in peri urban ger-areas

• Assistance in management information, financial forecasting and tariff scenario’s• Assistance in the institutional reform process (initiated by Mongolian Parliament)

• Program period = 3 years (2007 - 2010)

• Total Budget = M€ 2.0



Management Information System

• Purpose of MIS

• To provide USUG a management tool

• Balanced scorecard model developed, based on

• Review of operational processes and financial position

• Definition of 20 Key Performance Indicators + targets

• Data acquisition & management in one central data base

• Managers are made responsible for the results

• Result

• USUG’s performance are discussed on monthly basis

• Provides strong basis for action and feedback



Dash board MIS



Lessons learned

• Identification of partnership

• Shared sense of urgency for improvements is essential

• Agree upon focus of intervention, .. Chemistry of WOP

• Mentor operator in a position of a co-pilot/coach

• Shared sense of ownership

• Mentor operator should have added value

• Takes time to build a true partnership

• Enhancement sustainability WOP intervention

• Endorsement by stakeholders on mid term development is important

• WOP contributes to first logical steps of the development plan

• WOP with minimum size to have impact

• Pitfall in a partnership:

• Approach is new, first reflex: WOP seen as a Consultancy project

D2-S7-Doppenberg

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