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Sawaco Ho Chi-Minh ppp para lograr eficiencia

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SAWACO es la empresa socialista de Agua de la ciudad Ho Chi Minh, la Hidrocapital de la ciudad capital de la República Socialista de Vietnam. Para prestar un mejor servicio realiza asociación con …

SAWACO es la empresa socialista de Agua de la ciudad Ho Chi Minh, la Hidrocapital de la ciudad capital de la República Socialista de Vietnam. Para prestar un mejor servicio realiza asociación con empresas privadas, PPP. Los amigos de Hidroven deberían viajar a Vietnam y retomar una ruta que abandonaron, hace 15 años.

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  • 1. SAIGON WATER CORPORATION (SAWACO) PUBLIC – PRIVATE PARTNERSHIP IN NON-REVENUE WATER REDUCTION IN SAWACO 1
  • 2. BRIEF ON WATER SUPPLY NETWORKS OF HCMC  POPULATION OF HOCHIMINH CITY: 7,123,000  TOTAL CAPACITY OF WATER PUMPED INTO NETWORK 1,350,000 m³/day  TOTAL PIPELINE LENGTH (Ø100mm - Ø2400mm ) : 3,800 km  TOTAL WATER METERS ON THE NETWORK : 740,000  NON-REVENUE WATER RATE : > 40 % : 2
  • 3. DEVELOPMENT DEMAND UP TO 2025  CAPACITY OF WATER PUMPED TO NETWORK - INCREASED TO: 3,200,000 m3/day  PIPELINE EXPANSION (Pipe with diameter from Ø100mm up): 2,775 Km  PIPE REHABILITATION: 933 Km  NON-REVENUE WATER – REDUCED TO: 25% ESTIMATED FINANCE REQUIRED FOR THE DEMANDS: ABOUT USD 4 BILLION NEED INVESTMENTS FROM SOURCES INSIDE AND OUTSIDE THE COUNTRY WITH AN IMPORTANT INVOLVEMENT OF PRIVATE SECTOR 3
  • 4. PERFORMANCE-BASED CONTRACT ONE KIND OF PUBLIC – PRIVATE PARTNERSHIP 4
  • 5. ADITIONAL LEAKAGE REDUCTION CONTRACTS 1) Contractor is responsible to carry out leak detection surveys 2) Contractor is paid for example per length of pipeline surveyed or per staff day 3) The results of this modality are in many cases still less-thanoptimal 5
  • 6. ADITIONAL LEAKAGE REDUCTION CONTRACTS 4) Contractor has the wrong (or no) incentive and no obligation whatsoever to achieve maximum savings 5) Repairs are traditionally carried out by a third party; the leakage reduction Contractor is not accountable for anything and the results are sometimes not satisfactory. 6
  • 7. ONCEPT OF PERFORMANCE-BASED CONTRACT 1) 2) 3) This is a new concept Contract is designed to increase the efficiency and effectiveness of water distribution networks and related operations Ensures that the leakage will be significantly reduced and the reduced leakage levels will be maintained over several years 7
  • 8. ONCEPT OF PERFORMANCE-BASED CONTRACT 4) 5) Contract significantly expands the role of the private sector, from the simple execution of works to the management and conservation of water distribution networks Performance Based Contract tries to address the issue of inadequate incentives 6) Contractors are not paid directly for “inputs” or physical works, but for the “output”: volume of leakage reduced 8
  • 9. ONCEPT OF PERFORMANCE-BASED CONTRACT 7) Contractor is responsible for designing and carrying out the actions he believes are necessary in order to comply with the contract. 8) Under the performance-based contract, the Contractor has a strong financial incentive to be efficient . 9) To maximize profits, the Contractor must reduce his activities to the least possible volume of intelligently designed interventions but also that pre-defined outputs are achieved and maintained over time. 9
  • 10. ONCEPT OF PERFORMANCE-BASED CONTRACT 10) Necessary for the Contactor to have a good management capacity having the means to define, optimize and carry out in a timely basis the physical interventions which are needed in the short, medium and long term, to guarantee efficiency 11) The role of the Employer is to enforce the contract by verifying achieved leakage reduction, as well as all other legislation and regulations the Contractor must comply with. 10
  • 11. BENIFICIARIES OF THE NEW CONCEPT 1. Customers of Water Utility: • Customers will be able to know the service level they will get for their water tariff. • Improved water quality and services • More new customers supplied 11
  • 12. BENIFICIARIES OF THE NEW CONCEPT 2. Water Utility • Benefit from the cost-efficient water loss reduction • Able to sell saved volume of water to existing and new customers without investment in new water treatment plan • Opportunity for apply of new technology in management of water supply systems to improve the efficiency of general management 12
  • 13. BENIFICIARIES OF THE NEW CONCEPT 3. Contractors and other private enterprises: • The new type of contract opens up new business opportunities, in which longer contract periods provide amore stable business environment. 4. Future generations perhaps benefit most, since they will not have to pay for excessive capacity of new water production facilities. 13
  • 14. APPLICATION OF NEW CONCEPT IN HCMC NRW PROJECT The performance-based contract has been officially used in SAWACO from 2006 under Ho Chi Minh City Nonrevenue Water Management Project – IDA credit 14
  • 15. APPLICATION OF NEW CONCEPT IN HCMC NRW PROJECT The Project divided the water distribution network of HCMC into six (6) zones with totally estimated 500 District Metered Areas (DMAs). 15
  • 16. ZONE 3 ZONE 4 :: ZONE 2 ZONE 1 ZONE 6 ZONE 5 16
  • 17. APPLICATION OF NEW CONCEPT IN HCMC NRW PROJECT The Project will establish around 200 DMAs in Zone 1 and Zone 2 and the Performance-based Contract applies in Zone 1. 17
  • 18. CONTRACT AREA: ZONE 1 Zone 1: by Contractor Zone 2: by SAWACO This will give an opportunity to compare the efficiency in leakage reduction in the two Zones. ZONE 2 ZONE 1 18
  • 19. PERFORMANCE-BASED LEAKAGE REDUCTION AND MANAGEMENT CONTRACT (Zone 1) 19
  • 20. CONTRACT ELEMENTS  Establishment of District Metered Areas (DMA Establishment Works)  Leakage Reduction and Management Services  System Expansion Works (install service connections for new customers within contract area)  Emergency and Unforeseen Works (leak repairs on mains outside contract area …)  Transfer of Technology 20
  • 21. LEAKAGE REDUCTION & MANAGEMENT  Leakage reduction and management is the key element of the contract reflecting the public-private partnership  The Contractor has to execute all works, provide all personnel, services, equipment and materials required to achieve the contractual targets. 21
  • 22. LEAKAGE REDUCTION & MANAGEMENT  A special and new point in this Contract: Contractor will not be paid directly for “inputs” but for “output”: volume of leakage reduced.  By bidding, the Contractor will get “performance fee” at unit rate per m3 of water saved, paid on the basis of quarterly billings according to the volume of water saved in respective quarters and unit rate per illegal connection detected. 22
  • 23. LIQUIDATED DAMAGES UNDER CONTRACT Liquidated damages will be applied if, for any reasons attributable to the Contractor:  Quarterly DMA establishment targets are not met;  Annual minimum leakage reduction targets are not met;  Leakage levels in established DMAs increase more than the required levels under the Contract 23
  • 24. ALLOCATION OF RISKS CONTRACTOR’S RISKS 1. Unqualified personnel mobilized 2. New working environment and conditions: night works in complicated traffic and flood in HCMC 3. Difference in culture, habits, and language. 24
  • 25. ALLOCATION OF RISKS CONTRACTOR’S RISKS 4. Coordination and support of water supply joint stock companies and customers 5. Not in time assistant from Transport Department in license of excavation permits 6. Changes in laws and regulations and inflation during the Contract period 25
  • 26. ALLOCATION OF RISKS EMPLOYER’S RISKS 1. Capability of coordination, management of network, and strong support from stakeholders in execution of the Contract 2. Inaccurate maps and drawings 3. Contract indemnity for late response to eligible requests from the Contractor, especially in payment. 26
  • 27. ALLOCATION OF RISKS EMPLOYER’S RISKS 4. Changes in laws and regulations during Contract period 5. Inflation causing additional costs for contract execution 6. Support of customers both in day time and night time 7. Not in time assistant from Transport Department in license of excavation permits 27
  • 28. ALLOCATION OF RISKS EMPLOYER’S RISKS 8. It may be a risk that the Contractor will request for indemnity for delays caused by late settlements of competent authorities for proposals from the Employer, Contractor and Consultant as well as delays caused by the Employer. 9. Risk of loan cutting from the World Bank in case of delayed contract execution, causing adverse impacts to the overall project. 28
  • 29. The above mentioned management and allocation of risks will be a constant effort from the relevant parties during the execution of the Contract as well as the Project so that the Project will be successfully carried out and benefits both the public and the private sides. More new customers will be connected to the supply network thanks to the saved volume of water from NRW reduction and this is also one of the most important objectives of the Public – Private Partnership (PPP). 29
  • 30. NEW TENDENCY OF JOINT VENTURE WITH NRW REDUCTION INVESTORS  Currently there is a new tendency that many foreign investors with high qualifications and experience in water loss reduction expect to cooperate with SAWACO in investment in reduction of non-revenue water in Zone 3 and Zone 4 under the joint venture association.  Investors will carry out projects with their own finance and recover their investments. Profits will be distributed on the basis of the agreement between SAWACO and investors acceptable to competent authorities. 30
  • 31. NEW TENDENCY OF JOINT VENTURE WITH NRW REDUCTION INVESTORS  SAWACO has been submitted this to the People’s Committee of HCMC for its acceptance as a basis policy for SAWACO to proceed with negotiations with foreign investors. 31
  • 32. Zone 3 and Zone 4 ZONE 3 ZONE 4 32 ::
  • 33. SAIGON WATER CORPORATION ------oOo------ THANK YOU FOR YOUR ATTENTION ! 33
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