Measurement for Success

Roy TombsChief Operations OfficerBelize Water Services Limited

CASCAL COMPANY PROFILE

� A nv Nuon, Biwater Plc Joint Venture� Own, operate and develop a range of Water Company Investments� Experienced International Operator in Water and Wastewater

� Portfolio of highly efficient Water Companies Worldwide

Subic Bay

Batami

Telang Kelapa

NelspruitSantiagoi

Belizei

Puerta Vallarta

Bournemouth

Antofagasta

� The total area of Belize is 22,965 sq km (8,867 sq miles) twice the size of Jamaica

� In this small, essentially private enterprise economy the tourism industry is the number one foreign exchange earner, followed by cane sugar, citrus, marine products, bananas, and garments

� Population - 266,440 people (25% of Jamaica)

� Unique challenges - sparsely populated areas

BELIZE WATER SERVICES LIMITED

CHALLENGESCHALLENGES

� Interrupted Water Supply > 50% of Customers� Water Sales per Customer very low� Non Revenue Water > 50%� Illegal Connections - known problem� Infrastructure - poor condition� Staff - Public Utility mentality� Management Information - not reliable� Billing System - inadequate

WHAT WERE THE PRIORITIES ?

Year 1 = Constant Water Supply

$$$$$

� Increased Non Revenue Water > 60%� Sales increased, but below

expectation (average per customer -15 m³/month (3600 US gallons))

� Illegal connections increased considerably

DECISION ON FUTURE OF BWSDECISION ON FUTURE OF BWS

� Infrastructure� Billing System� Measurement� People

INFRASTRUCTURE INVESTMENTINFRASTRUCTURE INVESTMENT

! Replace the poor! Improve on the present

NEW BILLING SYSTEMNEW BILLING SYSTEM

! Customer Survey! Database! Categorise

Macro MeteringMacro Metering

�� Zonal measurementZonal measurement�� Where was all the water going to?Where was all the water going to?�� District MeteringDistrict Metering

MEASUREMENTMEASUREMENT

ResultResult

Total water into supplyTotal water into supplyMinimum Night FlowMinimum Night FlowWater SalesWater SalesNon Revenue Water Non Revenue Water �� Technical / NonTechnical / Non--technicaltechnical

Marage Road

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

May-03

Jun-03

Jul-03

Aug-03

Sep-03

Oct-03

Nov-03

Dec-03

Jan-04

Feb-04

Mar-04

mnf

UAW

Sales

BELIZE WATER SERVICES LIMITEDWATER PRODUCTION vs WATER SALES

0200000400000600000800000

10000001200000

Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02

Production (cub.m) Sales (cub.m)

Micro MeteringMicro Metering

�� DiscrepancyDiscrepancy�� First reaction First reaction -- change all meterschange all meters�� Cautious approach Cautious approach -- Pilot ProjectsPilot Projects�� DownsizeDownsize

Pilot ProjectsPilot Projects

�� Key AccountsKey Accounts�� San PedroSan Pedro�� Representative Domestic AreasRepresentative Domestic Areas�� Imperial Gallon MetersImperial Gallon Meters

Results Results -- Meter Change TrialsMeter Change Trials

�� Mixed ResultsMixed Results�� Key Accounts Key Accounts -- Payback within 6 months Payback within 6 months �� Imperial Gallon Meters Imperial Gallon Meters �� Min. 18% increaseMin. 18% increase�� San Pedro Island San Pedro Island -- 20% increase in sales 20% increase in sales �� Overall minimum 15% gains sales on averageOverall minimum 15% gains sales on average

SAN PEDRO ISLANDWATER PRODUCTION vs WATER SALES

0

5000

10000

15000

20000

25000

30000

35000

40000

Jul-02 Aug-02 Sep-02 Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03

Production Sales

Non Revenue Water = 6%

INVESTMENT IN PEOPLEINVESTMENT IN PEOPLE

Meter & Billing Process��..! Meter Readers! Meter Changers! Customer Service Agents! Disconnection Staff! Billing Staff! Bill Delivery Team! Illegal Disconnection Team! Audit

Get anyone of these wrong and the process will fail !!!!Get anyone of these wrong and the process will fail !!!!

CHOICE OF METERCHOICE OF METER

� Several world class meters on the market� Looked for one that was fit for purpose

� Reliability� Efficient at all flow ranges� Value for money� After sales service� Difficult to tamper with� Cope with water quality� AMCO

IN SUPPORT OF METER CHANGEIN SUPPORT OF METER CHANGE

! High consumption complaints rose dramatically! Media wrongly accused BWS of raising the water rate

BWS do not relish the bad publicity, but it is proof that meter changing, if correctly controlled using good quality meters, makes good business sense

Measurement to Success

Firefighting

Understanding Measurement

Result