Working Areas
Billing & Collection Efficiency
Customer Relations
Non-Revenue Water (NRW 1): Commercial Losses Management
Organizations Involved
Kisumu Water and Sewerage Company, Kenya — Lead Mentee
National Water and Sewerage Corporation, Kampala, Uganda — Lead Mentor
The Global Water Operators’ Partnerships Alliance
—
Broker
Project description
The aim of this WOP is to supply adequate and reliable wate and to ensure efficient technical and commercial operations
Project main objectives
Objectives
Improving KIWASCO’s organizational and operational performance with special attention paid to the reduction of Non Revenue Water. These objectives fits into the corporate objectives of the company:
Objective No.1: To supply adequate and reliable water from 21,000m3/d to 60,000m3/d and increase sewerage services by 20% in 2011, through, improved maintenance.
Objective No.2: To ensure efficient technical and commercial operations through economical operations, customer focussed and market oriented services and sustained efforts to reduce NRW.
Objective No.3: To achieve financial viability and risk management through cost optimization, improved revenue collection, prudent and viable investments and a cost effective supply chain.
Within these 3 general objectives, the PIP aims specifically at:
a) Reducing NRW from 49% to 40%.
b) Establishing systems for generating more factual and more accurate water balances and water audits.
c) Formulating and roll-out a more comprehensive and sustained NRW Reduction Programme.
d) Increasing the monthly Billing from KShs 24 million to KShs 28.8 million.
e) Increasing the monthly Revenue Collections from KShs 22.5 million to KShs 27.7 million.
f) Strengthening the Customer Complaints Tracking Systems and customer feedback mechanisms.
g) Establishing staff performance-based incentive mechanisms.
In terms of indicators to measure the objectives that should be attained during the 6 months PIP period: Total Volume of Water Produced in m3/month:+2.5%
Volume of water sold: +20.5%
Average monthly Non Revenue Water: -4.5% (from 49% to 44.5%) % of reported pipe leaks/bursts repaired: +2% (from 98 to 100%)
Average response time to leaks/bursts: from 7 to 6 hours
New Water Connections/month: +24%
Active Water Connections (by month end): +13%
Inactive Water Connections (by month end): -35%
Total Water Connections (by month end): +6%
Percentage of customer complaints responded to or resolved: 84% to 100%
Average response time to customer complaints:from 48hrs to 24hrs
Total Revenue (Billing): +26.5%
Total Collections: +29%
Operating Expenditure:+13%
Cash Operating Margin:+ 209%
Improving KIWASCO’s organizational and operational performance with special attention paid to the reduction of Non Revenue Water. These objectives fits into the corporate objectives of the company:
Objective No.1: To supply adequate and reliable water from 21,000m3/d to 60,000m3/d and increase sewerage services by 20% in 2011, through, improved maintenance.
Objective No.2: To ensure efficient technical and commercial operations through economical operations, customer focussed and market oriented services and sustained efforts to reduce NRW.
Objective No.3: To achieve financial viability and risk management through cost optimization, improved revenue collection, prudent and viable investments and a cost effective supply chain.
Within these 3 general objectives, the PIP aims specifically at:
a) Reducing NRW from 49% to 40%.
b) Establishing systems for generating more factual and more accurate water balances and water audits.
c) Formulating and roll-out a more comprehensive and sustained NRW Reduction Programme.
d) Increasing the monthly Billing from KShs 24 million to KShs 28.8 million.
e) Increasing the monthly Revenue Collections from KShs 22.5 million to KShs 27.7 million.
f) Strengthening the Customer Complaints Tracking Systems and customer feedback mechanisms.
g) Establishing staff performance-based incentive mechanisms.
In terms of indicators to measure the objectives that should be attained during the 6 months PIP period: Total Volume of Water Produced in m3/month:+2.5%
Volume of water sold: +20.5%
Average monthly Non Revenue Water: -4.5% (from 49% to 44.5%) % of reported pipe leaks/bursts repaired: +2% (from 98 to 100%)
Average response time to leaks/bursts: from 7 to 6 hours
New Water Connections/month: +24%
Active Water Connections (by month end): +13%
Inactive Water Connections (by month end): -35%
Total Water Connections (by month end): +6%
Percentage of customer complaints responded to or resolved: 84% to 100%
Average response time to customer complaints:from 48hrs to 24hrs
Total Revenue (Billing): +26.5%
Total Collections: +29%
Operating Expenditure:+13%
Cash Operating Margin:+ 209%
Most significant results
Describe WOPs activities
Courtesy phase: First activity carried out was namely a four day visit to NWSC by 11 Board members of KIWASCO that focused on an overview of the commercial and technical operations of NWSC. The NWSC Team conducted an entry meeting with KIWASCO Management on 6th/April/2010. This enabled the NWSC Team appreciate more definitively the expectations of KIWASCO, agreement on the entire PIP preparatory process as well as provision of the requisite background documentation. On 6th/April/ 2010, the NWSC Team was guided by the Technical Manager on a field excursion to get a reconnaissance of the KIWASCO water and sewerage installation and systems.
PIP workshops: 3 days from 7th/April/2010 to 9th/April/2010, focused on NRW and involving 50% of KIWASCO's staff. Working groups focusing on key areas related to NRW (such as commercial, technical etc) formulated improvement strategies and actions, including assignment of responsibility and implementation time as well as the respective cost estimates (the PIP).
SWOT analysis: In order to establish the basis for developing the PIP, a detailed SWOT analysis of the present situation was carried out to identify the strengths, weaknesses, opportunities and threats of KIWASCO. The issues discussed were categorized in eight performance areas of water production and supply reliability: Non Revenue Water, sewerage services, revenue generation, business growth & customer relations, cost optimization, staff motivation & productivity and administration and logistics done by NWSC based on reports and information gathered on KIWASCO performance.
A M&E framework was also developped, including monthly and quarterly reports on the progress made in the implementation of the PIP. In addition, a plan for one-off expenses was also designed.
Courtesy phase: First activity carried out was namely a four day visit to NWSC by 11 Board members of KIWASCO that focused on an overview of the commercial and technical operations of NWSC. The NWSC Team conducted an entry meeting with KIWASCO Management on 6th/April/2010. This enabled the NWSC Team appreciate more definitively the expectations of KIWASCO, agreement on the entire PIP preparatory process as well as provision of the requisite background documentation. On 6th/April/ 2010, the NWSC Team was guided by the Technical Manager on a field excursion to get a reconnaissance of the KIWASCO water and sewerage installation and systems.
PIP workshops: 3 days from 7th/April/2010 to 9th/April/2010, focused on NRW and involving 50% of KIWASCO's staff. Working groups focusing on key areas related to NRW (such as commercial, technical etc) formulated improvement strategies and actions, including assignment of responsibility and implementation time as well as the respective cost estimates (the PIP).
SWOT analysis: In order to establish the basis for developing the PIP, a detailed SWOT analysis of the present situation was carried out to identify the strengths, weaknesses, opportunities and threats of KIWASCO. The issues discussed were categorized in eight performance areas of water production and supply reliability: Non Revenue Water, sewerage services, revenue generation, business growth & customer relations, cost optimization, staff motivation & productivity and administration and logistics done by NWSC based on reports and information gathered on KIWASCO performance.
A M&E framework was also developped, including monthly and quarterly reports on the progress made in the implementation of the PIP. In addition, a plan for one-off expenses was also designed.