AREA SWITCH PROGRAM

FOR

                                                              MITYANA    AREA

FOR FY2014/15

July 2014

SERVICE DELIVERY

WATER SALES

INNOVATION

TEAMWORK

CUSTOMER SERVICE

HARNESS RESOURCES

NATIONAL WATER AND SEWERAGE CORPORATION

PERFORMANCE, AUTONOMY AND CREATIVITY ENHANCEMENT CONTRACT

(PACE II CONTRACT)

NATIONAL WATER AND SEWRAGE CORPORATION

DRAFT 01



1           INTRODUCTION

  1. Preamble

The Area SWITCH Program is in line with the 5-Year Strategic Direction (SD) – (2013-2018) for National Water and Sewerage Corporation (NWSC). SWITCH encompasses the Area Annual Action Plan and mainly includes the Infrastructure Service Delivery Plans (ISDPs) and short-term-high-impact performance improvement programs (PIPs) that Mityana  Area will implement during the FY2014/15 to ensure that the performance standards set for in the Area PACE II (performance, autonomy & creativity enhancement) Contract are achieved and that customers’ expectations are realized.

The NWSC 5-Year SD has six focus areas, which include: (i) financial sustainability, (ii) infrastructure growth, (iii) increased coverage for water and sewerage services, (iv) learning and innovation, (v) customer delight, and (vi) management of stakeholder expectations.

The NWSC 5-Year SD was launched in November 2013. As part of operationalizing the 5-Yr SD, NWSC formulated the STEP-UP-90 programme in all the NWSC operational areas. The STEP-UP-90 programme ended in June 2014 and has enabled NWSC register a number of achievements especially in service expansion and tackling low functionalities of newly taken over towns.

The SWITCH program has therefore been developed as a successor to the STEP-UP-90 program and ensures continued improvements in the focus areas of the Strategic Direction.

The NWSC Annual Area Action Plans have been code-named SWITCH, which encompasses the following ideals and philosophy:

  1. SWITCH stands for the following objectives and attributes
    1. Service delivery,
    2. Water sales improvement,
    3. Innovation,
    4. Teamwork,
    5. Customer Service,
    6. Harness resources.
    7. The programme aims at achieving and/or improving the above mentioned objectives and attributes
    8. The programme will entail increasing service coverage and improving supply reliability.
    9. The programme will put emphasis on improving water sales. Water sales is taken to be central to the commercial viability and financial sustainability of NWSC. All factors that feed into improved water sales; such as reduction of non-revenue water (NRW) and growth of the customer base will be given due attention.
    10. The programme will encourage innovation from the staff in pursuit of solutions to address NWSC’s major challenges.
    11. The programme will aim at improving teamwork and team spirit, which form the foundation for sustained performance improvements.
    12. The programme will focus on improved customer service in line with the NWSC Slogan: “The Customer is the Reason We Exist”.
    13. The programme will include harnessing of resources, both human and financial, to promote optimization of cost and maximization of productivity.
    14. The bottom line of SWITCH is to improve the performance and service delivery of NWSC.
    15. The SWITCH programme is to run for one year (July 2014 to June 2015) and will include monthly and quarterly monitoring and evaluation in order to ensure effective implementation.

In line with above background and ideals, the management team of Mityana Area has prepared the Area SWITCH programme which is outlined in the subsequent chapters and sections.


  1. Overview of Key Area Operational Data

Here briefly & concisely describe the Area by discussing each of the attributes below

(maximum – 1pg)

  1. Geographical extent of the Service Area e.g. which parishes are served etc

Generally, Mityana lies on a low ridge with shallow valleys. Mityana town is made up of gentle slopes with open U-shaped valleys. The town developed on eight hills. These include: Mityana, Mizigo-Katakala, Busimbi, Bbuye, Kikumbi, Butega, wabigalo and Kiyinda. The town has an altitude of about 1280 meters above sea level, with the bottom of the valleys more or less 50m below that level. The valleys form a natural drainage for the town and become swamp-like further down-stream. Most of the streams/valleys drain into the Walugogo River in the south with some seasonal streams draining into the Busajjabwankuba swamp in the west and Wakitundu swamps in the north.

The plateau landscape is advantageous to the developers in that they do not incur many expenses for building sites clearance.

Soils: The areas around Mityana town are mainly made of laterite soils with sandy loams stretching across the south-west to the north –east areas of the town.

             POPULATION:

Mityana Town Council, according to the 2002 population and housing census, has a population of 35,214 people of which 16,885 and 18,329 are male and female respectively.  The population density, basing on the 2002 population and Housing census, stood at 1,677 persons per square kilometre. Basing on the 2002 census and taking a growth rate of 3.7% for urban areas, the projected population by end of 2012 was expected to be 48,243 people.

THE TABLE BELOW SHOWS THE PROJECTED POPULATION

DISTRIBUTION PER WARD BY THE YEAR 2012 @ 3.7% PER ANNUM

     

TOTAL

PROJ2012

PROJ2012

PROJ2012

WARD

MALE

FEMALE

2002

MALE

FEMALE

TOTAL

Central

2,447

2,841

5,288

3,352

3,892

7,245

East

4,772

5,182

9,954

6,538

7,099

13,637

West

3,403

3,427

6,830

4,662

4,695

9,357

North

3,879

4,302

8,181

5,314

5,894

11,208

South

2,384

2,577

4,961

3,266

3,530

6,797

Total

16,885

18,329

35,214

23,132

25,111

48,243

 

  1. b)Current customer base and Customer segmentation – consumer categories

 

Currently the customer base for Mityana Area is small and the collection obtained is not enough but there is Potential for growth in the Area. Only water supply is the service available currently but there is need to plan and invest in the Sewerage Service.

The following table highlights the current customer base and segmentation

S/N

Category /segmentation

Total no. of accounts

1

Domestic

2512

2

Commercial

165

3

Institutional

109

4

PSPs

6

 

Total

2,792

  1. c)Potential customer base, key un-served demand

 

The potential customer base lies in the recently connected areas of Busubizi,   Kabuwambo, Kiganwa, St. Mauritius, Butega Bunyolo naama, and also in the planned water extensions to Nambaale-Kigisu, Naama Mumsa, Naama-Kyalwa and Kitinkokola.

The intensification to be made in the areas of Kivinikide and some parts of Buye Kanamba, Nammamonde will tap on the un served demand.

The area also plans to construct 10 Public Stand Posts (PSPs) so as to serve the poor leaving in the urban areas of Kibati and Naama and Busubizi.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. d)Main water supply and sewerage infrastructure in the Service Area –  water works, sewage works, trunk mains, reservoirs, boosters etc

 

STATUS OF WATER SOURCE

. The current source of water for Mityana water supply is Nakatongoli Swamp.  This seasonal swamp varies in level and quality all the year around with peak levels occurring during the raining seasons of March – June and Sept to November, while it almost dries up between Dec – March and July – August every year

            WATER PRODUCTION FACILITIES

Mityana water treatment works is located near Nakatongoli Swamp at Businziggo Rd Businzigo Mityana at a distance of  about 10km from the town centre. Current and future water production capacity from the Mityana Water treatment works stands at about 4800 m3/day. This Water treatment works that was constructed way back in 2007

The installed capacity of the production is at about 4800m3/day. The pumped swamp water under goes four treatment processes namely, aeration, clarification, filtration and disinfection that will produce high quality treated water which is then pumped to the central reservoir in town for distribution. Currently alum, soda Ash and chlorine are being used for water treatment. The design capacity of this treatment works is estimated at 4800 m3/day. However only about 36% (about 1400 m3/day of the installed capacity is being utilized because of low demand and limited distributed network coverage.

Chlorine chemical consumption is estimated between 150 to 200 kg per month, while electricity consumption may fluctuate between 31000 to 35000 K/WH/month.

Distribution network,

 The distribution network and transmission main is about 139.5km  for pipe ranging from DN250 mm to DN25mm and the reservoir capacity of 900M3 of sizes 450 m3 located at Wabigalo, 100m3 Near the Water Office and 350m3 at  Busimbi-Kasimbi  hill

Service coverage,

The water coverage of Mityana town currently stands at about 82% but the production capacity of the plant is adequate to supply the whole town as extensions are being done.

 

 

 

 

 

 

 

  1. market analysis showing the growth opportunities and related threats to growth e.g. new industries, hotels, business complexes, educational institutions etc and their impact on demand and revenue

SWOT Analysis for Water Sales, Billing, NRW and Supply Reliability

Strengths:

  1. Production capacity of 144,000M3/Day
  2. Reliable water source.
  3. Dedicated staff
  4. Head office is supportive in terms of achieving 100% service coverage
  5. Increased customer base hence increased consumption
  6. 100% metering of all accounts.

Weaknesses:

  1. No standby generator
  2. Variable water quality
  3. Low willingness to report illegal water users
  4. Area not block mapped.
  5. Frequent bursts on the transmission mains

Opportunities:

  1. The potential is still high since the area is still growing
  2. Communities are coming up to demand for our services.
  3. Increased demand due to water mains extensions made

Threats:

  1. Private water providers
  2. Un reliable power supply.
  3. Increased vandalism of fittings
  4. Lack of district meters
  5. Poor quality pipes on the transmission mains.

SWOT Analysis for Revenue Collections and Arrears

Strengths:

  1. Dedicated staff
  2. Availability of transport to ease movement for revenue collection.
  3. Improved water quality
  4. Improved water supply reliability
  5. Accurate billing system
  6. Several payment options, viz, partnering banks MM, M-Sente ,Airtel money , Easy money

Weaknesses:

  1. Network problems in the banks
  2. Some customers fear paying thru the bank
  3. Few partnering banks within Mityana town.

Opportunities:

  1. Water user committee helps in sensitizing the community about water bill payments
  2. Stakeholder engagement
  3. Banks have dedicated water bill payment tellers
  4. Increased consumption translates into increased revenue
  5. Willingness of customers to pay due to reliable water supply.

Threats:

  1. Competition with other service providers for bill payment e.g UMEME
  2. Alternative water sources 
  3. No block maps to identify nonpaying customers

  1. Key Performance Standards for SWITCH Programme

In line with the NWSC 5-Yr Strategic Direction and objectives of the PACE II Contract, the Key Performance Standards for Mityana Area for the period FY2-14/2015 are presented in Table 1 below

Table 1 Key Performance Standards for Mityana Area SWITCH Programme

#

KPI Description

Unit

Minimum Standard

(Avge perf. In FY2013/14)

Target Standard

PACE II Yr1 (FY2014/15)

  1.  

Total Water Sales – monthly

m3

18,341

30,000

  1.  

NRW – average monthly

%

43

30

  1.  

New Water Connections – average monthly

 

40

50

  1.  

Suppressed Water Accounts – by end of Yr

 

152

108

  1.  

Total Water Connections - by end of Yr

 

2792

3392

  1.  

Water Connection Efficiency - by end of Yr

%

  1. 4
  2. 8
  3.  
 
 

New Sewer Connections – average monthly

 

N/A

N/A

  1.  

Total Sewer Connections – by end of Yr

 

N/A

N/A

  1.  

Billed Revenue (Net of VAT) - Monthly

Ushs ‘millions’

  1. 9

70

  1.  

Collections (Net of VAT) - Monthly

Ushs ‘millions’

  1. 2

75

  1.  

Cash Operating Margin – average monthly

Ushs ‘millions’

  1. 8)
  2. 5)
  3.  
 
 

Working Ratio - average monthly

%

141

121

 

 


2           IMPLEMENTATION SCHEDULLE FOR THE AREA INFRASTRUCTURE SERVICE DELIVERY PLAN

This chapter outlines the Implementation Schedule for the Area Specific Infrastructure Service Delivery Plan (ISDP) in an effort to expand the services, increase coverage and improve service and supply reliability. Area ISDP has been broken down into 3 (Nos.) projects. The implementation schedule is presented in Table 2 below.

Table 2: Implementation Schedule for the Mityana Area ISDP

#

Project Name & Description

(under the Area ISDP)

Project Milestone / Deliverable

Projected Due Date

1

Water mains extension to Naama Mumsa  Centre) and Naama-Kyalwa

    1. Acquisition of Pipes & Fittings
 

31 Aug2014

  1. Procurement of Contractor(s)

31 Aug.2014

  1. Effective Commencement of Works

15 Sept 2014

  1. 50% Implementation Progress

 Mid Oct.2014

  1. Completion & Commissioning of works

30 Nov. 2014

2

Water mains extension to  Nambaale Kigisu  and Kitinkokkola Namugo rd

    1. Acquisition of Pipes & Fittings
 

31 Aug2014

  1. Procurement of Contractor(s)

31 Aug.2014

  1. Effective Commencement of Works

15 Sept 2014

  1. 50% Implementation Progress

 Mid Oct.2014

  1. Completion & Commissioning of works

30 Nov. 2014

3

Water mains extension to Naama-Katiko  

    1. Acquisition of Pipes & Fittings
 

31 Aug2014

  1. Procurement of Contractor(s)

31 Aug.2014

  1. Effective Commencement of Works

15 Sept 2014

  1. 50% Implementation Progress

 Mid Oct.2014

  1. Completion & Commissioning of works

30 Nov. 2014

       

3           AREA SPECIFIC PIPs

This chapter outlines the Area Specific Performance Improvement Programmes (PIPs). The PIPS are meant to be short term and high impact in design and of operational interventions in nature. It should be noted that the PIPs are deemed to be over and above the Area routine activities. Each PIP will be designed to run for a period of up to three months with monthly evaluations. The PIPs may run concurrently or in succession of one another depending on the available resources and on the precedence link between the PIPs.  A PIP may be extended beyond the 3-months initial period if the evaluation recommends so or if the impact on Area performance is indeed positively compelling.

Notes:

  1. The Area should formulate a maximum of five (05) PIPs
  2. The PIPs should focus on and aim achieving the following main objectives: (i) increasing water sales and reducing NRW, (ii) improving water supply reliability, (iii) improving customer service / care, (iv) harnessing resources effectively and optimizing costs, and (v) effective stakeholder engagement 

Table 3: Area Specific PIPs

#

PIP Name:

PIP Cost Implication (UGX.

Main Objectives

Main Outcomes

Key Activities

Projected Commencement Date

1

Mityana Non Revenue Water Reduction program(MNRWRP)

  1. (Rewarding Informers(4m)

Hire of bike  (1.8m)

Plumber (casual) -0.4m)

Main Objectives

  1. Reduce metering inaccuracies  hence increase sales
  2. Reduce NRW.
  3. Reduce on illegal water use
  1. Identification and carrying out meter replacements (1000no.)
  2. Carry out meter relocation 50no
  3. Meter clamping(100no)
  4. Radio announcements and sensitization on illegal water use
  5. Weekly patrolling of the trunk mains.
  6. Rewarding of informers
  7. Meter resizing (100no)

Aug 2014

 

Disconnection of the Private operator (Kato Investment Ltd)

2M( Excavation of different pipes, purchase of non-uniform material  and facilitation of the security personnel)

Main Objectives

  1. Increase customer base
  2. Increase revenue
  3. Bar off people who have been stealing water
  1. Engaging the private operator
  2. Inform the affected customers to apply for NWSC-Services
  3. Effecting the new connection
  4. Carry out investigation on illegal water use activities in this area.

Discussion is already in progress. Effective disconnection to be effected before the end of Aug 2014

2

Replacement of some sections of the transmissions

Acquisition of Generator for the water works

Main Objectives

  1. Reduce on down time during repair
  2. Increase on water supply reliability from 18 hrs to 20hrs per day.
  3. Improve on water quality

Main Outcomes

  1. Increase water supply reliability to 24hrs a day
  1. Procurement of pipes
  2. Procurement of the contractor to carry out the works
  3. Follow up with operations on the progress for the acquisition of the standby Generator
  4. Installation of isolation valves at selected points in the network(2no, 6’’,3no 4’’)
 

3

Mityana Customer Satisfaction Improvement Program(MCSIP)

Training facilitators 2m

7m for  10PSPS

1m for corporate social responsibility)

Main Objectives

  1. Increasing customer awareness
  2. Improving customer satisfaction Index
  3. Improving internal customer care
  4. Serve the vulnerable members of the community
  5. Radio talk show
  6. Visits to places of worship
  7. Awarding of customer s in their different categories
  8. Carry out area customer surveys through phone calls
  9. Construction of 10 PSPs
  10. Cleaning of Mityana Hospital and donate vulnerable patients.
 

Aug –Oct 2014

4

Mityana Cost Reduction Program

Main Objectives

  1. Reduce on  monthly power cost
  2. Reduce on chemical usage
  3. Optimize local travel
  4. Reduce on repairs for area vehicle.
  5. Maximum pump age during off-peak hours
  6. Adopt the new economic order
  7. Use courier services
  8. Follow up with transport to acquire new pick up for area operations
 

Aug –Dec 2014

5

Mityana Water User  program MWUP

Main Objectives

  1. Protection of the catchment
  2. Improve customer requirement
  3. Improve customer perception about NWSC services
  1. Strengthening of the water user committee
  2. Attending District, town council and sub county council meeting
  3. Formation of water user clubs
  4. Engagement in sport activities with other corporate bodies and the communities
  5. Involvement in village meetings through local council leaders
  6. Arranging field visits to LWC members , after every meeting

Aug-Dec 2014

NB:

Please provide explanatory notes and justifications on the total cost implication, outside the Area Management Fees, for each PIP.

Mityana Non Revenue Water Reduction program (MNRWRP

The activities under here include meter replacement, investigation of illegal water users and paying informers. The total cost to undertake this activity is 6.2m (rewarding 4m, hire of motorcycle 1.8m and pay plumber hired on casual basis 0.4m).

Mityana Customer Satisfaction Improvement Program (MCSIP)

The activities to be under require 4.4 m against a budget of 0.4m monthly. The budget money targets mainly revenue collection activities. Therefore there is need to beef up this area in order to realize its impact on our customers.

7M needed for the construction of PSP’s IM corporate social responsibility with the district leaders.

Mityana Water User program MWUP

There is no budget allocation for the formation of water clubs and the field visits for the local water user committees. There is therefore need for 2m for this program to be under taken.  This program will run for only 6 month.

4           MEMORANDUM OF UNDERSTANDING

MEMORANDUM OF UNDERSTANDING BETWEEN HEAD OFFICE AND ………. AREA

  1.       This Memorandum of Understanding is made this 31st day of July 2014

BETWEEN

NWSC Head Office of P. O. Box 7053, of Plot 39, Jinja road, Kampala (hereinafter called Head Office)

AND

Mityana Partnership/Area (hereafter referred to as the “Operator”) of MityanaWater and Sewerage Service Area, P.O. Box 458, Plot ……, Kanoni ……. Road/Street,            on the other hand

  1.       WHEREAS
    1. The NWSC-Head Office has signed a three year Performance, Autonomy & Creativity Enhancement (PACE II) Contract with the Operator, represented by the Lead Partner.
    2. Clause 4.3 of the PACE II Contract for Mityana  Area allows the Operator to discretionally but in a professional manner develop the services in Mityana  Area efficiently  in the best interests of the Corporation, which include but are not limited to improved customer services and achievement of the agreed performance standards
    3. The NWSC 5-Year Strategic Direction provides guidance on the service enhancement and performance improvement focus areas.
    4. The Operator is desirous of ensuring that the 5-Year Strategic Direction Provisions and Milestones that pertain to Mityana Area are adequately incorporated in Mityana Area’s Plans and effectively implemented.
    5. The Operator understands and agrees to be bound, as an agent of the Head Office in Mityana Water and Sewerage Service Area, by the relevant provisions stated in the PACE II Contract and any amendments and variations thereto, which relevant clauses of the PACE II Contract form part of this Memorandum of Understanding (MoU).
    6. The Head Office recognizes the roles to be assumed and played by the Operator as a contribution towards the implementation of the 5-Year Strategic Direction.
    7. The purpose and objective of this MoU and the arrangements it puts in place is to ensure effective implementation of the Area Annual Action Plan - Code named “SWITCH”, and to promote further improvements in performance and service delivery and enable Mityana Area achieve its service and performance obligations set forth in the PACE II Contract and also implied in the 5-Year Strategic Direction.

NOW THE PARTIES HEREBY AGREE AS FOLLOWS:

All parties hereby undertake to fulfill their obligations, outlined below, towards achievement of agreed targets and objectives entailed in the SWITCH Program. The SWITCH Program will be implemented for a one year period July 2014 to June 2015.  

  1.       OBLIGATIONS OF THE HEAD OFFICE:
    1. To provide financial and technical support as agreed in the details set out in PACE II.
    2. To operate in a bureaucracy-free environment, to enable the Area acquire the agreed financial, logistical and technical support in the stipulated time.
    3. To carry out periodic monitoring and evaluation of the SWITCH activities and Area Performance and promptly provide constructive feedback. 
  1.       OBLIGATIONS OF THE OPERATOR:
    1. To do everything necessary to improve performance, and achieve the targets stipulated in this SWITCH Program. 
    2. To take continuous pro-active steps and liaise with the Head Office in respect to the required operational inputs.
    3. To provide timely reports as per the formats agreed upon and provided by the Head Office
    4. To optimize costs in all activities carried out and in the SWITCH implementation.
    5. To ensure professional operations management that promotes the NWSC Corporate Image.
    6. NOW THEREFORE the HEAD OFFICE and OPERATOR here to sign this Memorandum of Understanding (MoU) the day and date first above mentioned.

THE OPERATOR

  1. Signed by                                                             

…………………                                                    ……………………………….

AREA/GENERAL MANAGER                            On behalf of ……………

  Area/Water Partnership

  1. Witnessed by:                                                         …...…………………………

…..                                                                      On behalf of ………

……                                                                      Area/Water Partnership

  1. Witnessed by:                                                         …...…………………………

…..                                                                      On behalf of ………

……                                                                      Area/Water Partnership

                     

  1. Witnessed by:                                                         …...…………………………

…..                                                                      On behalf of ………

……                                                                      Area/Water Partnership

  1. Witnessed by:                                                       ….……………………………

……….                                                                 On behalf of the Staff

       Union Representative

THE HEAD OFFICE

 

  1. Signed by:                                                                        ………………………………..

……..                                                                       On behalf of the HEAD OFFICE

………           

  1. Witnessed by:                                                      .…….…………………………

……..                                                                        On behalf of the HEAD OFFICE

………                                                         

Endorsement

  1. Endorsed by:                                                       ………………………………….

………………..                                                                                                                                    CHAIRPERSON UPEU                                 For and on Behalf of the Staff

  1. Endorsed by:                                                       ………………………………….

MANAGING DIRECTOR-NWSC                For and on Behalf of NWSC, UGANDA

 

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