collection and analysis of utility performance benchmarks ... · collection and analysis of utility...
Post on 30-May-2020
37 Views
Preview:
TRANSCRIPT
Collection and Analysis of Utility Performance
Benchmarks for Macedonia (2004-2007)
ADKOM
BENCHMARKING –DEFFINITION, OBJECTIVES AND
BENEFITS
It is understood as the process for identification, understanding and
adaptation of remarkable practices and processes of other
organizations to help the improvement of its own performance.
Providing the water companies with information that will help them to
improve their management and operation;
Allowing local and central authorities to compare water utilities
performances;
Providing key policy-makers and decision-makers with the information
they need to benchmark sector performance and organize their support;
Increase transparency towards the public by publishing the water
companies performance results and the decisions made to improve the
service quality;
Raising awareness about the interest of such an exercise and
increasing dialog between the water companies, the civil society, the
local authorities, the central government and the Donor community.
Humility to accept that there may be other
Companies with a better performance but under
similar socio-economic environment
Wisdom to learn the changes that may arise from
comparison
Ambition to introduce the necessary actions
Effectiveness to accomplish the programmed goals
THE BENCHMARKING PROCESS REQUIRES:
HISTORY OF THE BENCHMARKING PROJECT
Unknown up to 2006 - Reasons
- Limited public availability, reliability and affordability of data
- Very little information integrated in standard statistical
publications of the communal services enterprises, as well as of
the standard country statistical reports.
Realization of the project - Reasons
- The water sector currently ranks behind that of recent EU
accession countries, and especially of the EU-15, in
institutional practices (commercialization and political autonomy)
and in key performance indicators.
- Urgent need of work optimization and cost reduction
- Improvements in performance efficiency and effectiveness of
communal services enterprises
HISTORY OF THE BENCHMARKING PROJECT
There were two complementary benchmarking initiatives for Macedonia:
- 2006 by GTZ-sponsored project on the Improvement of Economic
Efficiency of Public Utility Services
- workshop organized by the World Bank and ADKOM in December
2007 on performance assessment of Macedonia water utilities according to
IBNET.
The IBNET benchmarking project realized binding on the contract signed by the
Association of communal service providers of Macedonia (ADKOM) and the
IBNET – World Bank.
ADKOM was designated to take the lead in initiating benchmarking in communal
sector service in the Strategy and Action Plan for Reform of Communal Services
Enterprises with focus on Water, Sewerage and Solid Waste Management
(Diagnostic and Strategy Final Report), prepared by Economic Consulting
Associates in association with MCIC, BAR E.C.E. and IGE Consulting.
The realization of the IBNET Benchmarking Project started in August 2008 and
ended in January 2009.
REALIZATION OF THE BENCHMARKING PROJECT
Developed performance monitoring and benchmarking of the
water sector in Macedonia through collection of technical and
financial data for the year 2004-2007 from the biggest 15 water
companies.
Company name Municipality
JPKR ”Usluga'' Berovo
JKP “Vodovod” Bitola
J K P "Standard" Debar
JP "Komunalec" Gostivar
JK Komunalec Kavadarci
KJP “Vodovod” Kocani
JP "Vodovod" Kumanovo
J.P. ”Komunalec” Negotino
MJP “Proakva” Struga
JP “Plavaja” Radovis
JKP “Proleter” Resen
JPKD “Isar” Stip
J.P.”Vodovod I Kanalizacija”-Skopje Skopje
JPKD “Komunalec” Strumica
JKP ”Derven” Veles
REALIZATION OF THE BENCHMARKING PROJECT
Developed performance monitoring and benchmarking of the
water sector in Macedonia through collection of technical and
financial data for the year 2004-2007 from the biggest 15 water
companies.
it was considered participant companies (the sample) to be
enough representatives, having in mind their capacity to supply
the most of the population in MK with water and sewerage
(representing at least 75% of Macedonian’s urban population).
The selection of separate companies that need to collect and
provide data, was on companies’ voluntary basis.
Data was collected through survey work, focus group
discussions and reports review.
The collected data are provided back in EXCEL template
format, supplied by the World Bank
Within the EXCEL sheets, key performance indicators are
calculated automatically upon inserted data and already
inserted formulas and functions.
THE APPLIED METHODOLOGY
INTERNATIONAL BENCHMARKING NETWORK
WATER AND SANITATION UTILITIES
DATA
IBNET DATA
Utility Information
Contact Information
General Information
Service Area
Staff
Water Service
Sewerage Service
Financial Information
Tariff Information
Customer Relations
IBNET INICATORS
Service coverage
Water consumption & production
Non revenue water
Meters
Network performance
Operating costs & staff
Quality of service
Billings & collections
Financial performance
Assets
Affordability / PPP
INTERNATIONAL BENCHMARKING NETWORK
WATER AND SANITATION UTILITIES
INDICATORS
DATA HAVE BEEN ENTERED, VALIDATED AND
REPORTED BY THE IBNET TOOL KIT SOFTWARE
ACTIVITIES
Initial workshop was held in Negotino (October,2008) with general
managers and technical staff of the 15th selected communal
enterprises.
The content and the importance of the Project were in details
explained.
The technical staff of each company was identified and appointed as
responsible individual project coordinators.
The EXCEL benchmarking template format for data collection was
delivered in electronic and hard format and explained to responsible.
Several group discussions have been organized with appointed
project coordinators on site, as well as through many telephone
conversations, questions and concerns were discussed and
explained.
Additional workshop was organized in Skopje (December,2008) with
project coordinators - all identified problems during data collection
and data filling in EXCEL sheets on general level were explained in
depth again
Country Report
Macedonia
Water sector performance indicators for
15 Utilities for the years 2004-2007
Indicator 2003 2004 2005 2006 2007
1.1 Water Coverage (%) 100,0 94,6 95,3 95,2 95,3
2.1 Sewerage Coverage (%) 94,3 82,3 78,4 79,2 79,5
4.1 Total Water Consumption
(l/person/day)
173,0 199,8 180,6 176,0 171,0
4.7 Residential Consumption
(l/person/day)
115,8 135,9 123,8 121,7 123,6
6.1 Non Revenue Water (%) 58,2 57,3 58,6 59,9 60,2
6.2 Non Revenue Water
(m3/km/day)
72,37 115,84 108,36 110,00 105,82
8.1 % Sold that is Metered (%) 99,2 95,9 94,2 94,2 94,0
Country Report
Macedonia
Water sector performance indicators for
15 Utilities for the years 2004-2007
Indicator 2003 2004 2005 2006 2007
11.1 Operational Cost W&WW
(US$/m3 water sold)
0,437 0,282 0,292 0,318 0,363
12.3 Staff W/1000 W pop served
(W/1000 W pop served)
2,37 1,12 1,10 1,11 1,10
18.1 Average Revenue W&WW
(US$/m3 water sold)
0,515 0,469 0,492 0,478 0,691
23.1 Collection Period (Days) 255,5 427,1 479,3 511,8 485,6
23.2 Collection Ratio (%) 121,2 84,5 86,8 84,9 83,2
24.1 Operating Cost Coverage
(ratio)
1,179 1,644 1,686 1,503 1,906
139
198
225
77
186
108 107
171
201
137
61
149
210
132
165
140
123
135
161
63
130
87
78
123.6
137
127
52
116
144
102
130
109
0
50
100
150
200
250 Total Water Consumption (l/person/day)Residential Consumption (l/person/day)
WATER CONSUMPTION AND PRODUCTUION
57 52
81 73
65 64
51 60.20
53
71
41
60 59 66
49 44
53 59
138
241
83
49
68
105.82
45
114
15 25
161
89
67 72
0
50
100
150
200
250
300 NRW (%) 2007
NRW (m3/km/day) 2007
NON REVENUE WATER
153
55
100
45
158
60
83.2
99
117 111
62 72
116
230
59
0
50
100
150
200
250
Collection Ratio (%) 2007
BILLINGS AND COLLECTIONS
0.9
0.7
2.08
2.9
1.77
1.25
0.88
1.91
3.06
1.9
0.96 1.04
3.27
1.27
2.92
1.9
0
0.5
1
1.5
2
2.5
3
3.5Operating Cost Coverage (ratio)
FINANCIAL PERFORMANCE
DISSEMINATION OF RESULTS
Hard copy and electronic copy report
Report announced and published in ADKOM’s electronic
newspaper
Results internationally presented on workshop in
Prishtina, Kosovo (June, 2009), organized by Water and
Waste regulatory office in Kosovo under the topic
“Performance evaluation of Water Companies in
Region (Albania and Macedonia) and the
comparisons with Water Sector in Kosovo”
This Project should be considered as initial step in developing benchmarking
practices in Macedonia.
The positive experience of this project was thought to motivate involved
communal enterprises in the first project to collect data for the next years and
to continue to calculate performance indicators according to IBNET
benchmarking template format, and to expand the benchmarking toward
communal enterprises, which did not participate.
Need to continue Benchmarking project among previously involved
communal enterprises and spread to new ones
The project will enhance transparency in key areas of operations, finances
and quality of services, initiate promotion of a process of improving efficiency,
target settings and cooperation between each utility, collection of data on
regular basis and benchmarking annually.
SUMMARY
While not technically difficult, it IS hard work
This is a communication project
To improve, we have to change, and change is always
hard.
Performance measurement and benchmarking mean
nothing if we don’t do something with the results.
Strategy: Start with some quick wins to get buy in, then
move to more ambitious improvement programs.
It actually works! We can easily measure progress with
numbers and facts
Breaking the habits of the past is hard ,but it MUST start.
WHAT WE HAVE LEARNED
WHY ENGAGE IN REGIONAL BENCHMARKING?
The ultimate objective for engaging in regional benchmarking is, of course,
to improve regional development. Regional benchmarking is a powerful
strategic policy tool which contributes to regional development by
effectively serving a number of key functions. These include:
Raising awareness
- One of the most important reasons and value added by
the regional benchmarking process is raising awareness of
regional stakeholders on the region’s position as compared to
other regions.
Generation of knowledge
- By learning how to effectively address major challenges based
upon others’ policy-learning experiences
Trans-regional Co-operation - Trans-regional benchmarking projects can be an opportunity
to collaborate with other regions and build trans-regional partnerships
Regional Marketing - Benchmarking can be seen as a regional marketing tool
OVERVIEW OF REGIONAL INNOVATION
BENCHMARKING METHODOLOGY
The steps for the implementation of the regional innovation
benchmarking methodology should include:
Selection of indicators
Creation of the benchmarking database
Production of the benchmarking data
Analysis and interpretation of statistics
Suggestions for improvement
top related