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TOWARDS PERFORMANCE BASED UTILTY SECTOR IN ARMENIA: CASE OF DRINKING WATER SUPPLY SERVICES  By Lianna Mkhitaryan
THE GOAL OF THE RESEARCH ,[object Object],[object Object],[object Object],[object Object],[object Object]
CONTEXT INFORMATION  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CONTEXT INFORMATION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WATER SECTOR REFORMS  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SYSTEMS OF WATER SUPPLY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
PERFORMANCE MANAGEMENT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
PERFORMANCE INDICATORS ,[object Object],[object Object],[object Object]
YWSC ,[object Object],[object Object],[object Object],[object Object]
1. PIs in YWSC Source: SCWR Performance Indicator Before Private Sector Involvement At the End of the  Management Contract with  ACEA  –  A.  Utilities After 2.5 Years of Lease Contract  with “Generale des Eaux”, Véolia Water Average duration of water supply  4-6 hours 18.4 hours 20.35 hours Energy consumption 240.3 mln kWh 124.2 mln kWh 115.3 mln kWh Installed water meters 3 856 379 580 401 100 Average water consumption  By norm 250 lcd Actual 797 lcd 110 lcd 87.3 lcd User fee collection rate 20.9% 79% 90.3%
AWSC ,[object Object],[object Object],[object Object],[object Object]
2. PIs in AWSC Source: SCWR Performance Indicator Before Private Sector  Involvement, (2004) After 5 years of Management Contract with SAUR   Average duration  of water supply  6.0 hours 12.20 hours Energy consumption 0.43 kWh/m 3 0.29 kWh/m 3 Installed water meters 40.0% of subscribers 65.0% of subscribers Average water consumption, lcd Not used Not used User fee collection rate 47.95% 78.2% Number of customers paying 53,000 115,000 Average water bacteriological safety compliance 61.0% 92.0%
SWSC, LWSC, Nor Akunk  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
3. ENVISAGED PIs IN SWSC Source:  SCWS Performance Indicators Project Area Average duration  of water supply  Reconstructed areas -24h;  other areas increase from 1h to 3h daily per year Compliance to water quality standards Maximum 6 tests p.a. do not comply with standards Water losses 1 st  year - max. 80%  2 nd  year - new network: <35%;  old network: max.75% 3 rd  year - new network: <30%; old network: max.70% ,[object Object],[object Object],1 st  year  ≥ 70% 2 nd  year  ≥ 80% 3 rd  year  ≥ 90%
CITIZEN EXPECTATIONS MET BY SERVICE PROVISION?: MONITORING PROGRESS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CITIZEN EXPECTATIONS MET BY SERVICE PROVISION?: MONITORING PROGRESS  Source:  survey of 296 households in 37 communities in Shirak, Gegharkunik and Kotayk marzes  (June – September 2009).
CITIZEN EXPECTATIONS MET BY SERVICE PROVISION?:  SUMMARY OF FINDINGS ,[object Object],[object Object],[object Object],[object Object]
SUMMARY OF FINDINGS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
1.RESULTS OF PERFORMANCE MANAGEMENT Objectives  Characteristics Results on Project Level Results on Organizational Level 1. Efficiency  and  effectiveness   and  internal control  and/or  accountability Focus on outputs and outcomes (results and effects); availability of performance  information Recovery of operation and maintenance for all  projected urban and rural communities; improved access to safe, reliable and sustainable water supply; improved duration of supply Improved technical, financial, and managerial capacity and operating efficiency of WSCs; rehabilitated, replaced, and/or extended WSS; optimized operation of the existing infrastructure; constructed new infrastructure;  improved personnel working conditions;  some increase in salaries;  limited public satisfaction with the quality of services
2.RESULTS OF PERFORMANCE MANAGEMENT Objectives  Characteristics Results on Project Level Results on Organizational Level 2. Improved decision making  in the budget process, and/or allocation of resources and  external accountability Focus on performance budgeting Improved decision making in the budget process and internal allocation of resources  Commercially-oriented operations; increased financial autonomy; meters installed to bulk and domestic consumers; increased tariff collection efficiency; reduced non-revenue water
3-4. RESULTS OF PERFORMANCE MANAGEMENT Source: prepared by author Objectives  Characteristics Results on Project Level Results on Organizational Level 3. Improved external transparency and accountability  to higher administrative levels  and public Focus on the public availability of information Still insufficient public access to information Citizens’ discontent with public access to information 4. Savings Focus on input side of operations Technical and financial management training provided to  personnel of WSCs and communities covered and not covered by WSCs Enhanced workforce skills; decreased number of employees
SUMMARY OF FINDINGS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
RECOMMENDATIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Towards The Result Based Utility Sector In Armenia

  • 1. TOWARDS PERFORMANCE BASED UTILTY SECTOR IN ARMENIA: CASE OF DRINKING WATER SUPPLY SERVICES By Lianna Mkhitaryan
  • 2.
  • 3.
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  • 9.
  • 10. 1. PIs in YWSC Source: SCWR Performance Indicator Before Private Sector Involvement At the End of the Management Contract with ACEA – A. Utilities After 2.5 Years of Lease Contract with “Generale des Eaux”, Véolia Water Average duration of water supply 4-6 hours 18.4 hours 20.35 hours Energy consumption 240.3 mln kWh 124.2 mln kWh 115.3 mln kWh Installed water meters 3 856 379 580 401 100 Average water consumption By norm 250 lcd Actual 797 lcd 110 lcd 87.3 lcd User fee collection rate 20.9% 79% 90.3%
  • 11.
  • 12. 2. PIs in AWSC Source: SCWR Performance Indicator Before Private Sector Involvement, (2004) After 5 years of Management Contract with SAUR Average duration of water supply 6.0 hours 12.20 hours Energy consumption 0.43 kWh/m 3 0.29 kWh/m 3 Installed water meters 40.0% of subscribers 65.0% of subscribers Average water consumption, lcd Not used Not used User fee collection rate 47.95% 78.2% Number of customers paying 53,000 115,000 Average water bacteriological safety compliance 61.0% 92.0%
  • 13.
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  • 16. CITIZEN EXPECTATIONS MET BY SERVICE PROVISION?: MONITORING PROGRESS  Source: survey of 296 households in 37 communities in Shirak, Gegharkunik and Kotayk marzes (June – September 2009).
  • 17.
  • 18.
  • 19. 1.RESULTS OF PERFORMANCE MANAGEMENT Objectives Characteristics Results on Project Level Results on Organizational Level 1. Efficiency and effectiveness and internal control and/or accountability Focus on outputs and outcomes (results and effects); availability of performance information Recovery of operation and maintenance for all projected urban and rural communities; improved access to safe, reliable and sustainable water supply; improved duration of supply Improved technical, financial, and managerial capacity and operating efficiency of WSCs; rehabilitated, replaced, and/or extended WSS; optimized operation of the existing infrastructure; constructed new infrastructure; improved personnel working conditions; some increase in salaries; limited public satisfaction with the quality of services
  • 20. 2.RESULTS OF PERFORMANCE MANAGEMENT Objectives Characteristics Results on Project Level Results on Organizational Level 2. Improved decision making in the budget process, and/or allocation of resources and external accountability Focus on performance budgeting Improved decision making in the budget process and internal allocation of resources Commercially-oriented operations; increased financial autonomy; meters installed to bulk and domestic consumers; increased tariff collection efficiency; reduced non-revenue water
  • 21. 3-4. RESULTS OF PERFORMANCE MANAGEMENT Source: prepared by author Objectives Characteristics Results on Project Level Results on Organizational Level 3. Improved external transparency and accountability to higher administrative levels and public Focus on the public availability of information Still insufficient public access to information Citizens’ discontent with public access to information 4. Savings Focus on input side of operations Technical and financial management training provided to personnel of WSCs and communities covered and not covered by WSCs Enhanced workforce skills; decreased number of employees
  • 22.
  • 23.