Oda pm final

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

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Transcript of Oda pm final

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ODA project management -Water supply and sanitation-

Jan. 20, 2013

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• 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

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”

Install smart meters

Analyze pipe conditions

Develop the good relationship with customers

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Install smart meters To stop commercial losses, reduce O&M cost, and

develop the optimal tariff scheduleA 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.

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Analyze pipe conditions To stop physical losses

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.

The oldness

The type of pipe

Soil condition

Priority

Old Weak Good 2

Bad 1

Strong Good 4

Bad 3

Young Weak Good 6

Bad 5

Strong Good 8

Bad 7

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Develop the good relationship with customers To increase tariff collection and to expand business

more Even if a utility can make the brilliant meter and invest perfectly, it cannot be profitable more without the good 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 claims can be treasures to improve its service level.

2. Water service shop• Water service shop can be also one of the

contact point with customers. Especially for emerging countries, water leak inside house are crucial problems. If this shop is singularly profitable, this shop is not only for contact point but also for new business.

3. The advice for water saving• It is sure that customers want

to save water to decrease costs. By analyzing data from smart meters, a utility can give the optimal advice to let customers save costs. It must be the win-win relationship with costumers.

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ODA project management -Railway development projects-

Dec. 23, 2012

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• Revenue• Cash

• Tickets• Deposit• Retail• Real estateEtc.

• Expenditure• Investment• Operating/Maintenance

cost• Advertise expenses• WagesEtc.

What affects financial viability of railway business?

Objective of discussion:To maximize the surplus of metro“Maximize the revenue and Minimize

the expenditure”

Targets to increase and decrese

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How to increase revenue? The concept of metro system

High density of residence

Commercial area

Leisurearea

High density of residence

The currentrailway

New metro railway

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

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The current railway

InhabitantsMetro

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 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.

2. Operating/maintenance cost• Establish joint firms for operation and

maintenance with the current railway to reduce the cost of hiring and training.

• Joint firms would be profitable also for the current railway because keeping high quality of maintenance and hiring young people are also problems for the railway which has a lot of old operators.

3. Advertise expense• Targeting has an important

role for metro because metro can focus on commuters and public railway generally focuses on all people.

• This lead not only the optimal advertisement, but also the benefit to leisure area and collaboration with them.

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How to apply it to emerging countries? Delhi Metro is a good model

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.

JBIC loan 70%