1. Jan. 20, 2013
ODA project management
-Water supply and
sanitation-
1

2. How to improve profitability of a water supply
business
Objective of discussion:
To maximize the profit of a water supply company
“Maximize the income and Minimize the expenditures”
• Targets to increase the
income and decrease the
expenditures
• To increase NRW ratio
• To ensure tariff collection
• To develop the optimal
tariff schedule
• To increase served
population
• To decrease the O&M
cost
2
Install smart meters
Analyze pipe conditions
Develop the good relationship
with customers

3. Install smart meters
 To stop commercial losses, reduce O&M cost, and
develop the optimal tariff schedule
A smart meter is a meter that can calculate water demand momentarily and
can be metered automatically from the remote site. It is a bit expensive
compared to an older one but it is valuable to install especially to the emerging
countries which have the high losses and costs for the following three reasons.
1. To stop the commercial loss
•
A smart meter can be monitored from the remote site by automatic
metering system and wireless network.
•
Suppliers can find the cheat by checking the difference between the
demand and the supply of water.
2. To reduce O&M cost
•
For suppliers, the metering cost generally occupies main parts of
O&M cost because many utility workers have to come to all
customers to meter the demand every month.
•
By the installment of smart meters, the demand can be metered
remotely and a utility does not have to come to visit.
3. To develop the optimal tariff schedule
•
To make a utility be more profitable, they have to change the tariff
schedule. Generally speaking, the tariff schedule should be changed
individually by monitoring and analyzing the hourly usage.
•
A smart meter has the high resolution demand inside and send it.
3

4. Analyze pipe conditions
 To stop physical losses
The
oldness
The type
of pipe
Soil
condition
Prio
rity
Old
Weak
Good
2
Bad
1
Good
4
Bad
3
Good
6
Bad
5
Good
8
Bad
7
Strong
Young
Weak
Strong
4
To more focus on high ratio of NRW, pipe investment and
renovation are essential. But a utility has to consider more
which pipe should be invested because pipe investment and
renovation cost too much. To put the priority the investment, it
has to analyze the pipe condition by the following three criteria.
1. The oldness
•
The oldness is critical criterion because the older the
pipe is, The more water leaks. A supplier should
make a mark when all pipes were invested in the
past.
2. The type
•
The pipe has the several types which are
ironic, cupric, plastic, and combinational. Based on
the analysis which type is easy to be depleted, a
supplier has to choose the investment.
3. The condition of soil
•
The pipe is affected also by external environment
especially soil because pipe is easy to be damaged if
the soil is soft or good condition for bacteria.
From these information, a supplier can make the priority list as
the left table.

5. Develop the good relationship with customers
 To increase tariff collection and to expand business
Even if a utility can make the brilliant meter and invest
more
perfectly, it cannot be profitable more without the good
3.
relationship with customers. This utility has only 80% tariff
collection ratio and more 40% population who are not still
served water. To improve the tariff collection and expand
business area to cover all the population, the following
three strategy are considerable.
1. Call center
•
The call center is important to make customers
connect to companies. If customers want to
receive better service, they can call to it.
•
Also for a utility, the call center is valuable to
receive claims and analyze the reason because
The advice for water saving
claims can be treasures to improve its service
•
It is sure that customers want
level.
to save water to decrease
2. Water service shop
costs. By analyzing data from
•
Water service shop can be also one of the
smart meters, a utility can give
contact point with customers. Especially for
the optimal advice to let
emerging countries, water leak inside house are
customers save costs. It must
crucial problems. If this shop is singularly
be the win-win relationship
profitable, this shop is not only for contact point
with costumers.
but also for new business.
5

6. Dec. 23, 2012
ODA project management
-Railway development
projects-
6

7. What affects financial viability of railway
business?
Objective of discussion:
To maximize the surplus of metro
“Maximize the revenue and Minimize
the expenditure”
• Revenue
• Cash
• Tickets
• Deposit
• Retail
• Real estate
Etc.
• Expenditure
• Investment
• Operating/Maintenance
cost
• Advertise expenses
• Wages
Etc.
Targets to increase and decrese
7

8. How to increase revenue?
 The concept of metro system
High density
of residence
The current
railway
Commercial
area
New metro railway
Leisure
area
High density
of residence
8
New metro railway should be developed to help
commuters moving to the areas which are not covered by
the current railway, especially dense residential,
commercial, and leisure area. This is the effective system
to recover the investment.
1. Tickets
•
Set comparatively expensive fare to cover the
high investment.
•
But long distance with the initial price because
we have to quickly get commuters as customers.
2. Deposit
•
Introduce deposit system such as Suica to get
enough loan without interest.
•
Then invest to another retail service.
3. Retail
•
Develop the inside business of stations and get
rent fee by utilizing the underground area for
connecting with the current railway.
•
Food, apparel, stationary, and cosmetics are
main services because targets would be
commuters

9. How to decrease expenditure?
 To optimize the investment
Negotiation and targeting are key factors for the optimal
investment because developing the metro costs a lot.
1. Investment
•
[The current railway] Share the investment of the
pathway connecting each station, especially
entrance, stairway, and escalator etc. except for
the retail area.
•
[Inhabitants] For the railway on the ground,
Purchasing lands and negotiating people living
Metro
Inhabitants
there are highly heavy tasks. On the other hand,
The only thing the metro has to do is the
negotiation for a bit noise and vibration.
Advertise expense
2. Operating/maintenance cost
•
Targeting has an important
•
Establish joint firms for operation and
role for metro because metro
maintenance with the current railway to reduce
can focus on commuters and
the cost of hiring and training.
public railway generally
•
Joint firms would be profitable also for the
focuses on all people.
current railway because keeping high quality of
•
This lead not only the optimal
maintenance and hiring young people are also
advertisement, but also the
problems for the railway which has a lot of old
benefit to leisure area and
operators.
collaboration with them.
The current
railway
3.
9

10. How to apply it to emerging countries?
 Delhi Metro is a good model
JBIC loan 70%
10
Delhi rail corporation is an Indian company which has been
operating metro railway around Delhi city, mainly connecting
residential area to downtown of New Delhi. Delhi metro must
be a good model for developing the metro in emerging
countries for the following three reasons.
1. Targeting
•
The main targets are commuters and travellers. That
is the reason why they have 6 lines, which are
connecting residential area, an airport, and
downtown. This business is successfully developing.
2. Negotiation
•
In the start of development, many concerns
happened. But Delhi rail learned from the past
success of Hong Kong MTR and Tokyo Metro.
•
The negotiation with government and to get key
person for managing money were most important.
3. Capital
•
Even if they can expect the achievement, initial
investment was enormous. To solve this
problem, they decided to grant ODA mainly from
JBIC. ODA is a main role of recovering initial
investment.