Oda pm final


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Oda pm final

  1. 1. Jan. 20, 2013 ODA project management -Water supply and sanitation- 1
  2. 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. 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. 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. 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. 6. Dec. 23, 2012 ODA project management -Railway development projects- 6
  7. 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. 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. 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. 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.