MIYAHUNA Study Tours (2007-2008)


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MIYAHUNA Study Tours (2007-2008)

  1. 1. ORGANIZATIONAL LEARNINGOPPORTUNITIESSTUDY TOURS CONDUCTED FOR MIYAHUNAIN 2007 - 2008Colombia, United States of Americaand SpainContract No. AFP-I-00-03-00035-00, Task Order No. 539SEGURA / IP3 Partners LLCMay 2009The authors’ views expressed in this publication do not necessarily reflect the views of the UnitedStates Agency for International Development or the United States Government.
  2. 2. AcronymsAGBAR Aguas de BarcelonaAMR Advanced Meter ReadingASERCO AGBAR Servicios CompartidosAWC Aqaba Water CompanyCOP Chief of Party SEGURA/IP3DCWASA District of Columbia Water and Sewer AuthorityEMASESA Water Company of SevilleEMIVASA Water Company of ValenciaGWh Giga watts per hourIT Information TechnologyITA Instituto de Tecnología del Agua (Water Technology Institute)JD Jordanian DinarJVA Jordan Valley AuthorityLBWD Long Beach Water DepartmentMIYAHUNA Jordan Water CompanyMW Mega wattsMWDSC Metropolitan Water District of Southern CaliforniaMWI Ministry of Water and IrrigationNRW Non-revenue WaterPRV Pressure-reducing ValveSWP State Water ProjectUFW Unaccounted for WaterO&M Operations and MaintenanceUSA United States of AmericaUSAID United States Agency for International Development€ Euro$ United States DollarWAJ Water Authority of Jordan UnitsKm2 Square kilometerKw-h Kilowatt-hourlcd Liters per capita per dayMCM Million cubic metersMCM/year Million cubic meters per year Currency equivalents (2008)1€ = 1.31 $ dollars1 JD = 1.43 $ dollarsThe authors’ views expressed in this publication do not necessarily reflect the views of the UnitedStates Agency for International Development or the United States Government.
  3. 3. CONTENTSINTRODUCTION ..............................................................................................................2WATER PRICING..……………………………………………………………………….4MANAGING WATER SCARCITY………………………………...……......................13CUSTOMER SERVICES………………………………...……......................................38CORPORATE GOVERNANCE ….………….………………..………...…...................46INFORMATION TECHNOLOGY ...……………...........................................................56STRATEGIC PLANNING …………………………………………...……………........69CORPORATE CULTURE ………………………………………………….…………...75TRANSIENT MANAGEMENT ………………………………………………....... ......83BULK WATER MANAGEMENT…………………….………………………………...90OTHER INNOVATIONS …………………………………………………………….....94 ANNEX – STUDY TOURS DETAILS………………………………………...106ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 2
  4. 4. INTRODUCTIONMaking MIYAHUNA’s vision, mission, and values real and not empty words on paper is amajor challenge for everybody in the company -- the management committee, senior andmiddle level management, and all employees.For the management committee and senior management, the challenge is to createconditions that make productive change a natural way of life in MIYAHUNA. This way ofthinking is aptly expressed by Rosabeth Moss Kanter when she says that all managers havetwo jobs – “handling today’s issues and getting ready for the future.”1In line with the above thinking, this report was prepared by MIYAHUNA’s management incooperation with SEGURA/IP3 to assist management and employees at all levels in gettingready for the future by identifying, considering, and implementing opportunities forimproving the quality and efficiency of the services. The report seeks also to encourage theexchange of ideas with staff of sector government agencies and other water companies.The report consolidates the results of study tours conducted in 2007 and 2008 as part of thetechnical assistance provided to MIYAHUNA by USAID through SEGURA/IP3. The studytours were to Colombia, Spain, and the United States2. The participants in the tours weremembers of the management committee and directors.The observations during the study tours reflected in this report should provide anopportunity for organizational learning aiming at developing MIYAHUNA into a change-adept rather than a top-down bureaucratic organization. In the words of Moss Kanter, achange-adept organization anticipates, creates, and responds effectively to change while thetop-down bureaucratic organization lacks those characteristics.The expectation of the management committee and senior management is then thatMIYAHUNA’s managers and employees at all levels learn from the lessons and experiencesincluded in the report and use them for developing and acting on an agenda for continuouschange and improvement, and for identifying and implementing specific projects. TheSuper Client Program, the NRW Reduction Program and the Tariff Review Program underimplementation at MIYAHUNA are good examples of the potential of the ideas in thereport.The management committee and senior management are determined to continue searchingfor opportunities for organizational learning. To make this approach effective,management expects the collaboration and direct involvement of all MIYAHUNA’semployees without consideration of ranking. Initiatives and suggestions from everybody arewelcome.1 Moss Kanter Rosabeth. On the Frontiers of Management. Harvard business review, 1997, page, 3.2 Detailed reports for each visit were prepared including analysis and recommendations from tour participants.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 3
  6. 6. TARIFF POLICY: THE EXPERIENCE OF COLOMBIA Cost recovery and tariff policyThe Colombian government and sector authorities have made sustained efforts since theearly 1990s to raise water and sanitation tariffs closer to cost recovery levels. Those effortshave been instrumental in lifting the average domestic water and sewerage tariff from USD0.33 per m3 in 1990 to USD 0.78 in 2001. The tariffs vary from municipality tomunicipality taking into account the particular characteristics of each system, particularlytheir cost levels.The impact of the tariff increases in low-income groups has been alleviated by a cross-subsidy from some group of consumers to other groups. This cross-subsidy scheme datesback to the 1960’s and was subsequently included in the 1991 Constitution and, morerecently, developed in more detail by law 142 of 1994. The cross subsidy system is part ofa national tariff framework applicable to the electricity, telephone, and water and sanitationservices.The system considers a six-level social stratification of all customers throughout thecountry, according to the physical quality of the housing and general amenities. Theclassification is undertaken by local authorities in line with broad national guidelines.Households in the upper two strata (strata 5 and 6) have surcharges added to the cost of theservices provided. Strata 4 pay the cost of the services, while those consumers in the loweststrata (strata 1 through 3) receive subsidies (discounts over the cost of the services).The funds generated by the surcharge to strata 5 and 6 and to non-residential consumers ineach company are applied to cover the cost of the subsidies to strata 1 through 3 in the samecompany. If the surcharges exceed the subsidies, the difference goes to a “Solidarity Fund”in the municipality. On the contrary, if the surcharges are insufficient to cover the subsidies,the municipal government should cover the difference with resources from the “SolidarityFund” or from its own source of revenue.The surcharges and the discounts are explicitly reported on the customer’s bills. Two-Step tariff determinationStep 1: Establishment of referential cost by the regulatory commissionThe water companies prepare estimates of the full costs incurred to deliver the services(Referential Cost), following a methodology defined by the Regulatory Commission. Themethodology includes a detailed description of acceptable costs in each cost category andalso provides for “efficiency cost adjustments” based on statistical cost analysis carried outby the Commission.The typical monthly bill (average bill) has a cost structure that shows investments as thepredominant component, followed by operation and maintenance cost, administrative costand, environmental charge. See graph below.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 5
  7. 7. Typical Monthly Bill Components (14.34 cm/month) Average Environmental Average Charge Administrative Cost Average Operation & Maintenance Average Cost investment cost 23% 60%Step 2: Establishment of final tariffs by the municipality or the districtThe final tariffs are determined by the company in accordance with the Referential Cost asapproved by the Regulatory Commission. Tariff componentsFix Component ($/subscriber):It includes the total administrative costs divided by the number of customers. This amountis denominated the average administrative cost (CMA) and it is included as a fix charge inthe water bill.Variable Component ($/m3):Is based on the volumetric consumption and is the result of the addition of: 1. Average operation and maintenance cost 2. Average Environmental Tax cost 3. Average cost of investments Referential cost formula Ref.Costw = CMAw + Billed m3 * (CMOw + CMIw+ CMT) Ref.Costww = CMAw w + Billed m3 * (CMOw w + CMIww+ CMT)ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 6
  8. 8. Where: CMA: Average administrative cost CMO: Average operation and maintenance cost CMI: Average investment cost CMT: Environmental tax Tariff calculation by Strata Tariffi = CMAref * fi + CMLPref * Billed m3 * fi Tariff is indexed by inflation every year Where: • CMAref : referential administrative cost • CMLPref : the variable operation and maintenance cost • i: tariff Strata (from 1 to 6, being 4 the referential cost) • fi: percentage of subsidy or contribution of the referential cost Solidarity contributions (Subsidies)According to Decree 57 of 2006, categories 5 and 6 of subscribers and the commercial andindustrial categories have a tariff with the following contributions to the average tariff of thereferential cost: Contributions: • Strata 4: 0% • Strata 5: 50% • Strata 6: 60% • Commercial: 50% • Industrial: 30%The main purpose of the tariff regulation as defined in decrees 57 and 1013 is to achieveequilibrium between subsidies and contributions from other subscribers and the externalfunds provided by the municipality or central government. CONTRIBUT SUBSIDIES ION STRATA 5 AND 6 COMMERCIAL, STRATA INDUSTRIAL 1, 2 Y 3 CONTRIB. STATE AND MUNICIPALITYORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 7
  9. 9. SubsidiesThe tariff as percentage of the referential cost is presented in the table below for the city ofBogota for the month of September 2007: Typical Tariff Bill for As % of Aug. 07 Refferential JD (equiv.) Cost Strata 1 4.7 29% Strata 2 9.8 61% Strata 3 14.4 91% Strata 4 15.9 100% Strata 5 30.4 191% Strata 6 37.9 238%The percentage contribution from each category compared to the percentage variation of thetypical bill (average) per category as depicted in the last table is different because thedifferent water level consumption between categories. For example in the case of Bogota inSeptember 2007, the customers in strata 5 contributed 50% of the surcharges of contributionto finance the subsidy, but due to the higher level of consumption, their average bills end upbeing 91% more than the category 4.The financing of the cost of services for strata 1, 2 and 3 is presented in the following graph. Estrato 1 1 Strata Estrato 2 Strata 2 Payment Payment by Payment PAGAN  by User Other Users by User PAGA  USUARIOS  in 30% Strata 34% in 60% Strata USUARIO APORTANTES 30% 30% 34% 60% PAGAN  PAGA  Payment by USUARIOS  USUARIO Other Users APORTANTES 60% 60% 60% PAGA CIUDAD from the Payment by the city Payments Payment by the the PaymentPAGA CIUDAD from City 10% 10% Solidarity Fund Solidarity Fund 6% 6% 10% 6% Payment by PAGAN  USUARIOS  Other Users Estrato 3 3 Strata APORTANTES 7% 7% Payment PAGA CIUDAD Payment by the the Payment from city by Users by User 1% Solidarity Fund 1% in 92% Strata 1% 92% PAGA USUARIO 92%ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 8
  10. 10. TARIFFS: THE EXPERIENCE OF EUROPE AND SEVILLE - SPAINThe delegation listened to various presentations related to tariffs: • The tariff adjustment process in the European Union • Seville Water Company (EMASESA) tariff adjustment programEuropean Union Tariff Experience: Water Framework Directive (FWD)The ITA made a presentation about a directive approved by the European Parliament in2000 establishing the water policy framework (Water Framework Directive- FWD) to beapplied by the member countries. The framework established a 9-year period for all statesin the Union to adopt it. The FWD also established deadlines for the member states toreport to the European Commission on progress made in its implementation. The principlesfor water costing are presented in the graph below. Principles for Water Costing FWD Directive The member states commit themselves to adopt no later than 2010 a policy of water prices that will provide adequate incentives for an efficient use of water resources that contributes to achieving the environmental objectives of the present directive.Implementing the above principles was a significant challenge, as most European countrieswere far from applying them. Greece, Portugal, Ireland and Spain were the countries thatneeded the major adjustments. The countries requiring comparatively less adjustment wereUnited Kingdom, France and Germany. See graph below.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 9
  11. 11. Water Tariffs in European Countries before the Implementation of FWD €/m³ Portugal Greece Ireland Spain  France U.K. Germany Denmark   Water Tariff in 2000 Water Tariff needed to recover full costSome European cities had experienced steep adjustments in tariff rates even before thedirective. Copenhagen, for example, increased tariffs 20 times between 1972 and 1992 and,then, in the ten years between 1992 and 2002 increased tariffs again by 25% or 2% per year. Copenhagen Water Tariff Evolution €/m³            YearInnovative Tariff System in SevilleEMASESA implemented in 2006 an innovative tariff system for residential users. The newsystem replaced the progressive tariff block system implemented in 1995, which awarded abonus to households with low consumption, and charged higher prices to households withhigher consumption. The decision to change was due to EMASESA’s perception that thesystem had one major flaw, as large number of households with only one or two peoplebenefited unfairly from the allowance for low consumption, and, conversely, a large numberof families with a higher number of members were penalized with higher tariffs.After reviewing various options, EMASESA introduced in 2006 a tariff system forresidential consumption that takes into account the number of inhabitants per household andprovides bonuses to customers with consumption levels below 10 m³ per quarter per personORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 10
  12. 12. and penalties for those that consume more than 15 m³ per quarter per person. The rest of theclients are grouped in categories I and II.The system has been gradually developed since 2006 initially being some customers billedfor per-capita consumption while others billed on the basis of household consumption. In2009 all customers are billed on a per-capita base.The tariff system is based on EMASESA’s estimates of average members living in aresidency. If a family has more members living in the house, it should notify it to thecompany so its consumption can be measured and thus be entitled to a bonus. The bonus isequivalent to 26% of the total bill.The tariff in process of implementation had the following stages:YEAR 2006: Blocks I and II are calculated onBlock with bonus: less than 3.33 m³/person/month the basis of 4 people perBlock I: From 0 to 16m³/household/month household.Block II: More than 16 m³/household/monthAfter new information showed that the average household had 2.4 people per household, anew estimate was obtained for 2008 decreasing the average household from 4 to 3.YEAR 2008:Block with bonus: less than 3.33 m³/person/month Blocks are calculated on theBlock I: From 0 to 12 m³/household/month basis of 3 people per household.Block II: From 13 to 15 m³/household/monthBlock III: More than 15 m³/household/monthFor 2009, it is planned that the tariff will be calculated by person. If this information is notavailable, the limits of the blocks will be calculated based on 2.75 persons per household.YEAR 2009:Block with bonus: less than 3.33 m³/person/monthBlock I: From 0 to 4 m³/person/month Blocks are calculated per person.Block II: From 4.1 to 5 m³/person/monthBlock III: More than 5 m³/person/monthNon Residential ConsumptionThe non-residential consumption has a single block tariff with incentives and penalties, asshown below:ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 11
  13. 13. • Night consumption: a 39% bonus estimated on the base tariff for industry. • Irrigation: EMASESA estimates the level of “efficient water consumption” according to the surface and the technologies available. Consumptions above EMASESA’s estimates are penalized with higher tariffs, and even with suspension of service. • Contamination: customers are charged a penalty for contamination. EMASESA offers, however, assistance to remedy contamination problems.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 12
  15. 15. DEMAND MANAGEMENT: THE EXPERIENCE OF BOGOTA -COLOMBIATariff policies based more on the cost of services than on political considerations, and waterlosses reduction programs carried out by service providers have had a significant impact onwater consumption levels. The average consumption per connection in Bogota has had asignificant reduction (from 31.5 m3 in 1993 to 14.9 meters in 2006) while maintaining acontinuous service (24 hours a day and 7 days a week) to a growing number of customers(from 5.5 million in 1993 to 7.4 million in 2005). See graph below. Consumption Index By Billed Customer (Billed Customer/Average users)/12 Consumption per Billed CustomerThe changes in consumption per connection have allowed EAAB to postpone substantialinvestments in water production, as shown in the graph below. The postponement of theseinvestments significantly reduces the marginal cost of water and alleviates EAAB’sfinances.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 14
  16. 16. Water Supply - Demand Trend in Bogota 24,00 Projection of demand before Supply equal to demand Water supply projected (2012) 1997 22,00 22.0 20,00Flow (m3/s) 18,00 16.5 16,00 14,00 12,00 14.2 m3/s (2005) 10,00 90 82 06 98 80 86 92 94 96 00 02 04 10 14 16 84 88 08 12 18 20 19 19 20 19 19 19 19 19 19 20 20 20 20 20 20 19 19 20 20 20 20 Year Factors that reduced consumption of potable water Law 373/97 – Rational use of water Emergency in supply due to Chingaza crisis Increase of tariffs associated to Law 142 (tunnel collapse) 1997 of 1994. Economic crisis since 1997 Implementation of Non Revenue Water ProgramThe other cities have had similar experiences. Triple A, for example increased its number ofcustomers by 75% between 1996 and 2007 while supplying less water to the system (thevolume of water supplied declined from 16.5 to 15.0 million m3). See following graph.In addition to provide service to a growing number of customers, Triple A has been able toprovide continuous service. The water supply service before Triple A was intermittent (3 to4 days on average in the service area).ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 15
  17. 17. BARRANQUILLA EVOLUTION OF SUBSCRIBERS VS. DELIVERED WATER 1996 - 2007 324.545 Subscribers 18.0 340,000 16,5 320,000 17.0 mil m3 300,000 15,0 280,000 mil m3 16.0 260,000 240,000 15.0 220,000 185.047 200,000 14.0 Subscribers 180,000 160,000 13.0 140,000 1/1/1996 7/1/1996 1/1/1997 7/1/1997 1/1/1998 7/1/1998 1/1/1999 7/1/1999 1/1/2000 7/1/2000 1/1/2001 7/1/2001 1/1/2002 7/1/2002 1/1/2003 7/1/2003 1/1/2004 7/1/2004 1/1/2005 7/1/2005 1/1/2006 7/1/2006 1/1/2007 7/1/2007 M ill. M3 Water SubscribersA similar case is observed in Cartagena where approximately 160,000 customers in 2007 areserved with the same quantity of water supplied to 90,000 customers in 1999. From anapproximate consumption of 152 m3/ person/ y to 83 m3/person/y. More Users With Less Water Distributed Cartagena 78,000,000 180,000 76,000,000 160,000 74,000,000 72,000,000 140,000 Cubic Meter /Year Subscribers 70,000,000 120,000 68,000,000 66,000,000 100,000 64,000,000 80,000 62,000,000 60,000,000 60,000 Agua dit ribuida (M3 año) Distributed water Abonados at endidos Customers servedORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 16
  18. 18. WATER DEMAND MANAGEMENT: THE EXPERIENCE OFSOUTHERN CALIFORNIA - UNITED STATES OF AMERICACalifornia is suffering from an 8-year-old drought in the catchments of the Colorado River,with the lowest deliveries on record of bulk water from different sources. The levels oflocal precipitation are also at record lows. The allocation of exceptionally limited waterresources among users is then a difficult task for water authorities. The difficulties arecompounded by local environmental laws protecting certain fish species, thus reducing thewithdrawal of water from rivers and lakes below historical levels.In response to the water shortages in its service area, MWDSC has been implementing anumber of programs aiming at achieving a more efficient water usage. The programs areconcentrated on three main areas: 1) research and development, 2) incentives for waterconservation, and 3) changes in consumer behavior. See graph below. Water-Use Efficiency Programs Research and Consumer Incentives Development Behavior Innovative Conservation Residential Legislation Enhanced Conservation Advertising & Outreach Commercial Annual Program Review Education Water Recycling Outside R & D Code Compliance Seawater Desalination Groundwater Recovery Price BMPsORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 17
  19. 19. Since 1990, Metropolitan has invested $ 251 million in its conservation programs saving about 1,164 MCM of water, equivalent to $0.22 per m3.Some of the conservation programs implemented to achieve the results in the box above areoutlined below.Water-saving programsThese programs include; implementation of water-savings regulations, promotion of low-flow toilets and showerheads, high- efficiency clothes washers, water conservation gardens;educational programs; and more strict plumbing codes. The achievements of some of theseprograms are summarized below: High Efficiency Item Average Saving /Year Toilet 10 m3 Washer 34 m3 Irrigation Controller 51m3Water-saving RegulationsMWDSC and the partnering companies have enforced a number of regulations aimed atreducing water consumption. These regulations include the following: 1. Banning washing of driveways, sidewalks, parking areas, patios or other outdoor areas using a hose. 2. Prohibiting irrigation of gardens between 9:00 AM and 4:00 PM. 3. Prohibiting the operation of non-water conserving pre-rinse nozzle in food- preparation establishments such as restaurants and cafeterias. 4. Banning watering of any area beyond saturation thus causing excessive runoff into the streets. 5. Prohibiting operation of fountains and other water features that do not re-circulate the water. 6. Banning washing vehicles with a hose.The regulations require hotels and motels to provide customers with the option of not havingthe towels and linens laundered daily. This option must be prominently displayed in eachbathroom and sleeping room, using clear and easily understood language.Rebate ProgramsMWDSC is increasingly using rebate programs to promote savings on water consumption.As residential water consumption is mainly used in irrigation of gardens and landscaping (inORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 18
  20. 20. many areas over 50% of total consumption), MWDSC puts strong emphasis on programs toreduce irrigation at residents’ premises as well as on the promotion of plants that requireless water. Water Usage and Rebate Programs 30% Inside the House 70% Outside the House Rebates offered for houses: Rebates offered for gardens: - High efficiency toilet: $ 75-180 - Synthetic turf: $ 1/sq meter - High efficiency clothes washer: $130 - Rotating irrigation nozzles: $ 4 - Weather based irrigation system: $ 0.15/sq meterThe rebates executed by most of the water departments in Southern California haverestrictions such as:- Rebate is limited to available financial resources (companies allocate a limited budget for each program)- Rebate is not available for new developments- Rebate requests are processed on a first-come first-served basis- Only one rebate per household- The equipment must be purchased new and installed before submitting application- New developments are not included in the program (they are held to stringent water conservation standards from the beginning)- Subject to onsite installation verification- Based on approved list of items to be installed- Request must include the original receipt with the model and serial number- Form filled and signed by the beneficiary WATER SAVINGS REWARD PROGRAM FOR NON RESIDENTIAL CUSTOMERS $ 3.00 per every 4 cubic meter of water saved This program rewards companies or institutions that: - Install equipment that will capture, treat and reuse water that would otherwise be discharged to the sewer. - Replace existing process equipment with more efficient resulting in reduced water demand. - Upgrade with more efficient irrigation equipment such as rotating nozzles, spray heads, valves, sensors, smart controllers, etc.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 19
  21. 21. Institutional Water Saving ProgramsMWDSC, together with its participating agencies, has been successfully promoting thereduction of water consumption in private and public institutions. Through incentives,training and awareness programs, many institutions have developed their own programs tosave water. The incentives include payments for conservation efforts and results. Followsome examples of these programs. Institutional Water Savings Programs Estimated Institution/Agency Project Title Savings/Year (In MCM)San Diego County Water District Landscape Auditor Interns 1.4Western Municipal Water District Smart Controller Irrigation Installation 1.1Los Angeles Water Department Water broom Distribution 0.9West Basin Municipal District Landscape Reform Program 0.6Western Municipal District High Efficiency Toilet Installation 0.5 Total in 15 programs 10.5The California Friendly ProgramMWDSC started in early 2000 the “California Friendly Program”, which is a branding effortto make it easier for customers to identify which products, organizations, and programsmake efficient use of water. This idea came as a follow-up to a poll indicating thatrespondents did not know the water needs of different plants. In addition, about 81% ofrespondents said they would purchase more drought-resistant plants if they were clearlylabeled as such. The program is expanding its branding effort so that products, builders,businesses, gardeners and cities carry the California Friendly designation. The California Friendly Landscape Program assembled a panel of experts to approve the official list of nearly 300 drought resistant plants; then partnered with Home Depot and 70 independent gardens that sell plants.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 20
  22. 22. Programs launched under the California Friendly brand are the following: 1. Outdoor Conservation Outreach Program (education and public outreach). 2. Marketing and advertisement (website, radio, TV and print). 3. Consumer research. 4. Landscape Program (marketing, outreach and incentives). 5. Home Certification Program (a partnership with builders to build water efficient landscapes and devices).Water brooms have rebates of $150. California Friendly houses use 30% less water.Under the California Friendly program, the Long Beach water utility has installed ademonstration site where visitors or customers can see and learn about plants andarrangements that can both save water and beautify the environment.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 21
  23. 23. Long Beach Water Department “drought tolerant garden” demonstration siteIncentives for Research and DevelopmentMWDSC has a program to provide grants to universities for research and development ofcost-effective water saving technologies that can be implemented in water stressed regions,locally or globally.The program has exceeded MWDSC’s expectations. Thus, the funding was increased from$ 120,000 in FY 2007 to $ 150,000 in FY 2008. Some of the results of the program arepresented below:1. University of Southern California: new showerhead with touch activated on/off switch.2. University of California at Riverside: rooftop rainwater harvesting.3. University of SC Long Beach: conservation by onsite recycling.4. Pasadena City College: biofiltration of household gray water.The California Urban Water Conservation CouncilIn addition to utilities, the California Urban Water Conservation Council (CUWCC), a veryinfluential organization, benchmarks progress on water conservation by utilities and otherentities, and also allocate funding to different programs related to water.The CUWCC was created to increase water-usage efficiency in the State, throughpartnerships among urban water agencies, public interest organizations, and private entities.The Councils main goal is to integrate urban water conservation “Best ManagementPractices” into the planning and management of Californias water resources.The Council was created by nearly 100 urban water agencies and environmental groups thatsigned a Memorandum of Understanding in December, 1991. Since then, the Council hasgrown to 384 members. Those signing the MOU pledge to develop and implement fourteencomprehensive water conservation programs denominated “Best Management Practices".Once a year, the CUWCC publishes the names of institutions and their performance againstthese 14 best practices and awards grants to programs of the best performing agencies.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 22
  24. 24. Long Beach Water utility believes that the results of the Council’s programs are mixed, andthat the net result is difficult to evaluate. On the one hand, the Council has succeeded inpromoting water conservation amongst all its members. On the other hand, the utilitybelieves that the Council’s programs inhibit new ideas for water conservation in areas whichare not included in the “Best Practices” list. The utility also believes that the staff-intensivepreparation of the reports to evaluate compliance with the “Best Practices” list is a majoreffort for their organization, and that the system should be simplified and, perhaps, reducedto a single indicator that effectively measures the results of water conservation efforts ofeach utility.The Best Management Practices list is presented below. California Urban Water Conservation Council Best Management Practices 1. Water survey programs for residential customers 2. Residential plumbing retrofit 3. System water audits, leak detection and repair 4. Metering for all new connections and retrofit of existing connections 5. Large landscape conservation programs and incentives 6. High-efficiency clothes-washing machine financial incentive programs 7. Public information programs 8. School education programs 9. Conservation programs for commercial, industrial, and institutional accounts 10. Wholesale agency assistance programs 11. Retail conservation pricing 12. Conservation coordinator designation 13. Water waste prohibition 14. Residential Ultra Low Flush Toilet replacement programsAmerican Leak Detection FranchiseAmerican Leak Detection (ALD) is a company founded 30 years ago in Palm SpringsCalifornia, now turned into a franchise with presence in 8 countries. ALD specializes inaccurate, non-destructive detection of all types of leaks, including hidden water and sewerleaks.The company identifies leaks in swimming pools and in concealed plumbing systems, usingsophisticated electronic devices without bashing holes in walls or digging. The franchise isconsidered one of the top 25 Franchise High Performers in the USA by The Wall StreetJournal. Also, for the seventh straight year, American Leak Detection was ranked #1 in itscategory by Entrepreneur Magazine. .ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 23
  25. 25. ALD Opening Eye Statements: • A leak the size of a pinhead can waste 1.3 MCM of water per year, enough to fill 12,000 bathtubs to the overflow mark. • A leaking toilet can use 340 m3 of water in 30 days. • Approximately one in every 318 homes or buildings has a leak.ALD partners with associations and water companies to assist on water leak surveys, andwater conservation programs. For example, in March 2008, it teamed with the CaliforniaRural Water Association to carry out educational programs in rural water districts. Thecompany gives free training seminars throughout the state titled, "Introduction to WaterAccountability and Leak Detection". The seminars are sponsored by the California RuralWater Association and the California Department of Water Resources.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 24
  26. 26. WATER LOSSES REDUCTION: THE EXPERIENCE OF BOGOTA -COLOMBIA Program scheduleThe three companies visited have developed successful programs of water losses reductionduring the past 7 to 18 years. An illustrative example is the program in Bogota, whichstarted in 1989 with a non-revenue water study. The study was followed up by theestablishment between 1992 and 2001 of four district zones covering the whole service areaof EAAB. Then EAAB management contracted with three private companies the operationof the five zones.3 The bidding for the zones was completed during 2002 and 2003. So, bynow, EAAB has a five-year experience with private operators in the service area. Main steps for the implementation of the programThe steps taken to reduce water losses are similar in the three companies, and include:Step1: Mapping of sectors and sub-sectors, flow measurement points, feeders, isolation of sectors and districts, and pre-modeling of the distribution zone.Step 2: Field work including installation of valves and temporary/permanent closing of sectors.Step 3: Measurement of flows and pressure points in specific places: identification of consumption curves and minimum night flows per district.Step 4: Construction and calibration of mathematical models.Step 5: Actions to reduce losses, including: • Commercial activities: - Identifying and regularizing illegal customers - Replacing faulty meters - Harmonizing billing cycles •Technical: - Establishing macro-sectors and districts - Pressure control and bulk-water metering - Rehabilitating networksStep 6: Implementation of hydraulic optimization works, including: pipe renewal and replacement, and installation of pressure-reducing stations. Prioritization of tasks and areasThe financial and economic benefits of water losses reduction programs within a city varyamong hydraulic districts. This point is illustrated by the case of Bogota shown in the graphbelow, which shows the financial gains or losses results per m3 for 37 districts.3 One company won the bid for two zones.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 25
  27. 27. Gains y G $ por Sector por P or Losses per M3 Saved M t3 $1,500 $1,000 $500 $ Col. $0 ($ 5 0 0 ) ($ 1 , 0 0 0 ) ($ 1 , 5 0 0 ) 01 07 14 17 21 23 25 30 32 34 36 T ota l 06 13 15 20 22 24 26 31 33 35 37 Districts Se ctore sThe cumulative result is positive, but there are districts where the cost of the programexceeds the financial benefits associated with the reduction of water losses.Likewise, the benefit-cost of different projects or activities varied substantially in the case ofBogota. See table below. Benefit-Cost Analysis of Projects or Activities Bogota PROJECTS Litters/Sec Benefit/Cost Connections 55 4.5 Massive fraud 227 2.3 Meters 185 3.1 Network Repair 710 12.0 Pressure reduc. valves 82 2.2 Others 10 1.1 TOTAL 1,269 3.2As seen in the table above, the network repair and rehabilitation has had the highest benefitcost ratio in Bogota. It has been followed by the repair of leaks at the connection point andthe meter repairs. The average ratio of benefit to cost has been very high (3.2).EAAB’s information system includes a breakdown of the technical and commercial lossesby sub-district (see Annex 1), providing a powerful tool to help in the design and thestrategy for the implementation of the water losses reduction program. Pressure Reduction ValvesDuring a period of two years between 2003 and 2005, Bogota installed pressure reducingvalves in most districts, achieving substantial results as shown in the graphic below. As it isORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 26
  28. 28. known excessive pressures are an important factor explaining water losses. The benefit-costratios of the investments in pressure reduction were high as shown in the table showing thebenefit-cost of different projects and activities. Pressure Control and Reduction of Losses 47.24 m Comportamiento Behavior Losses de las pérdidas 42.14 m 45 90.28 100 40 90 74.13 32.95 m 35 80 66.74 Pressure (m) 30 Presión [m ] 70 Flow (l/s) Caudal [L/s] 60 25 40.44 42.54 41.47 50 20 40 15 30 10 20 F.P. 55.21% F.P. 42.62% F.P. 37.86% NRW 55.21% NRW 42.62% NRW 37.86% 5 10 0 0 Alta Media Baja High Middle Período de Operación Low Period of Operation Presión Pressure Caudal macromedición Bulk Meter Flow Customer Meter Caudal micromedición FlowThe graph above shows how water losses are reduced with pressure control measuresimplemented in the city of Bogota.The formulation of hydraulic optimization works including the renovation of the areas, thereinforcement of pipes and the implementation of pressure reducing stations producedimportant results that reduced the losses. Pressure map WITHOUT works of hydraulic Pressure map WITH works of hydraulic optimization in Bogota optimization in Bogota Reinforce Renovation Regulation Stations mentsORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 27
  29. 29. During a period of two years between 2003 and 2005, Bogota city covered most of theirdistricts with pressure reducing valves contributing significantly to the reduction of losses. Service with PRV 2003 Service with PRV 2005 TechnologyDuring the visit the georadar equipment was identified to detect illegal connections. Theexperience in Barranquilla shows that when customers see this equipment in action they aremore willing to declare their illegal connections and negotiate with the company. GEORADAR (Noggin)ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 28
  30. 30. Reduction in water lossesEAAB has achieved substantial reductions in the volume of water losses since 1995 untilnow. This is shown in the table below which represents both the absolute volume of waterlosses and the water losses measured in m3 per connection (user). The latter index is knownas the “Water Losses per User Index” (IPUF in Spanish).. NRW Vs. Losses Per Customer Better Indicator Volume Volume IPUF Year m3 losses/ NRW Supplied Lost user/month 1995 567 Mm3 207 Mm3 17.2 36.5% 2002 456 Mm3 165 Mm3 10.6 36.2% 2005 448 Mm3 161 Mm3 8.8 35.9% Reduction 21% 22% 49% 0.6%The above table illustrates both EAAB’s substantial accomplishments in reducing waterlosses (from 207 million m3 in 1995 to 161 million m3 in 2005) and the failure of thetraditional indicator of non-revenue water (water losses as a percentage of production) toreflect these accomplishments, as the non revenue water index remained virtuallyunchanged at around 36%. This failure is the consequence of a weakness of the traditionalnon-revenue indicator in an environment of contracting water demand and production. Infact, it is even likely that in this type of environment, the unaccounted-for or non-revenuewater index as a percentage of total water production increases even though the volume ofwater losses decrease in absolute terms, as was EAAB’s case. Water Losses Index per User (IPUF) Bogota, 1993-2005 The graph (Non-billed volume/average number of customers)/12 shows how this progress has been achieved over the past 13 years since 1993 with a significant M3/Month achievement during four years during 1994 and 1997 and then stable progress during the last 9 years.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 29
  31. 31. WATER SAVING PROGRAMS: THE EXPERIENCE OF SEVILLE -SPAINEMASESA’s efforts to reduce water losses from the water source, up to the metering anddistribution to customers were of particular interest for the Jordanian delegation. The resultsof these efforts between 1997 and 2007 show a reduction of total water losses from 26.3%to 14.8%. See table below. EMASESA Ten-year Improvements in Hydraulic Efficiency ANNUAL EXECUTED 1997 2007 Losses MMC % MMC % Total Losses 38.96 26.3% 17.75 14.8% Losses from the source up to the treatment 3.37 2.5% 1.06 0.9% plant Losses in Treatment 2.95 2.1% 0.11 0.1% Losses in Distribution 32.64 21.7% 16.58 13.8% Efficiency Hydraulic Return in Collection 97.5% 98.3% Hydraulic Return in Treatment 91.9% 99.9% Hydraulic Return in Distribution 67.0% 76.5%From the Source to the Treatment PlantThe implementation of the water saving program helped to reduce from 2.5% to 0.9% thelosses from the water source to the treatment plant. This improvement is the outcome ofactions like the improvement of the raw water pipe illustrated below.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 30
  32. 32. Improvement of the raw water pipe • Repairs Plan for the Minilla canal. • Interconnection works with other systems for the exchange of resources.Treatment PlantsThe reduction of water losses in the treatment plants from 2.1% to 0.1% was achievedthrough investments in upgrading water recovery systems, filters, treatment lines, andcontrol systems. Improvements in Water Treatment • Introduction of new treatments which guarantee quality in adverse situations: ozone, activated carbon. • Water tightness of the principal reservoirs. • Recovery systems of processed water.DistributionThe reduction in water losses in the distribution system from 21.7% to 13.8% was the resultof EMASESA’s most intensive efforts in the distribution network through actions in thefollowing areas: • Expanding and improving measurement and control of water flows. • Establishing a continuous tracking of unaccounted for water (UFW) values. • Establishing districts and introducing systematic leakage control. • Renovating networks.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 31
  33. 33. Measurement of Flows Improvement of Flow Meters • Installing additional and more accurate flow meters. • Implementing a Main Control Center. • Implementing real time tracking and control. • Detecting problems in the primary and secondary network due to breakages. • Improving repair response times.Continuous Tracking of UFWEMASESA has established an integrated control of subsystems covering water treatment,transport and distribution, equipped with meters that continuously report to a central controlroom.Establishment of Districts to Reduce LossesEMASESA has established water distribution districts to help in the management andimplementation of systematic leakage control through observation of minimum night flows. Districts Establishment and Measurement • EMASESA network is divided into 170 sectors, which represent a total network of 3.450 km. some of them are of a permanent nature and the rest are temporary. • They are observed for period of 15 days at least once a year. • Control of sectors is carried out by means of measuring the Minimum Night Flows. Their comparison with standards and if is necessary leakage detection by traditional methods: correlation, geophones, etc. • Analysis of causes of leaks serves as a base to establish priorities in the network renovation plans.Network RehabilitationEMASESA also carried out a major network rehabilitation program, which amounted toabout 50% of the annual investment plan during 1997-2007. Through these investments, thecompany rehabilitated 40 to 50 KM per year or the equivalent to 1.5% to 2.0% of the totalnetwork per year.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 32
  34. 34. DEMAND MANAGEMENT: THE EXPERIENCE OF SEVILLE - SPAINAs a result of a severe drought in 1992, EMASESA has implemented a number of waterdemand managent initiatives, which have resulted in significant reductions in waterconsumption (16% between 1992 and 2007), as shown in the table below. EMASESA Water Consumption Profile in Seville 1992 1998 2004 2007 Consumption (MCM) 83.4 72.0 73.9 70.0 Breakdown by type of customer Residential 69% 74% 71% 70% Industrial 21% 22% 25% 27% Government 10% 4% 4% 3%The initiatives have included the promotion of water-saving devices, grey water use, andconsumption metering.Water Saving DevicesAfter carrying out market studies and a careful testing of different water-saving devices,EMASESA implemented a communication campaign to promote the use of such devices inshowers, toilets, and faucets. The customers reacted favourably to the campaign, asEMASESA and the Municipality provided valuable information to the customers bypublishing the results of the testing of the devices produced by different manufacturers.The types of devices are illustrated below. Three Types of Devices Promoted Showers Toilet FaucetMODELS AVAILABLE AT EMSASESA MODELS AVAILABLE AT MODELS AVAILABLE AT EMSASESAECO-Ducha 245-A MULTISHOWER Antical EMSASESA Econ-System Martí de 22 mmECO-Ducha CADET MULTISHOWER Antical Toilet discharger (IMPULS280A) Econ-System Martí de 24 mmECO-Ducha GALANT MULTISHOWER System model KOMBIFIX ECO-Grifo Monomando MULTISHOWER AnticalAntical System model DUOFIX ECO-Grifo Temporizado MULTISHOWER AnticalECO-Reductor Ducha MULTISHOWER System model GISEcon-System Martí Model IMPULS280B Model IMPULS280CORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 33
  35. 35. The promotion of the water-saving devices included several steps:1. First, EMASESA and the Municipality installed the devices in their offices.2. Second, a municipal ordinance made it mandatory to install the devices in new homes or refurbished buildings. It was also mandatory in public bathrooms.3. Third, EMASESA and the municipality also entered into collaboration agreements with the Hotel Association, the universities, the catering associations, and other confederation of businesses organizations to install such devices in their premises.4. Fourth, EMASESA implemented a campaign denominated denominated “Saving 55 liters per person per day”, showing how the use of the saving-devices would result in these significant savings in water consumption with the correspondin reduction in the water bill.The graph and the box below illustrate the campaign denominated “Saving 55 liters perperson per day”. CAMPAIGN SAVING 55 LITERS PER PERSON PER DAY TOILET SAVINGS: 21 LITERS Normal consumption per person per day: 10 Litters x 4 discharges = 40 liters Using saving devices per person per day: 10 liters x 1 discharge = 10 liters 3 liters x 3 discharges= 9 liters TOTAL=19 litters SHOWER SAVINGS: 20 LITERS Normal consumption per person per day: 60 liters Using saving devices per person per day: 40 liters FAUCET SAVINGS: 14 LITERS Normal consumption per person per day: 40 liters Using saving devices per person per day: 26 lttersGrey Water UseThe Water Technology Institute presented the case of grey water use in toilets. Thetechnology consists of collecting water used in faucets and showers and treating it through aa two-stage treatment process with 1) sand filter, and 2) sand filter and activated carbon.The recycled water is mixed with rain water and repumped to a roof storage to be circulatedto the toilet system.New and old buildings can be equiped with two networks, one that collects the toilet waterthat is sent to the sewerage, and the the other that collects water from the rest of uses to berecycled for toilet use. The system also consists of a small treament facility, storage tanksand pumps. The Water Technology Institute estimates that with an adequate level of tariffORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 34
  36. 36. and according to the type of house, the cost of a grey water use system can be amortized in2.5 to 5.0 years. Grey Water Systemes and Savings of Water Tank of recycled  water for toilets Toilet sub  network to  Rain water  sewerage to recycling Faucet and  shower sub  network to treatment  and recycling Pump Treatment process • Septic tank • Pump Sewerage • 1st: Sand filter Tank of recycled  Tank • 2nd: Activated carbon waterSavings of this system can be broken down in various categories as the graph above shows.The three main contributers to the savings are reuse of water from faucets (39%), toilets(22%) and showers (20%).PLAN 5: Individualization of ConsumptionMultifamily buildings, which accounted for 43% of residential water consumption, had asingle meter, making it difficult for families to rationalize their consumption and thus reducetheir water bills. EMASESA considered, then, that those buildings had a good potential forachieving substantial water savings, provided that the individual households had the rightincentives. Based on this consideration, EMASESA implemented a plan denominated “Plan5” to encourage customers to install individual household meters in multifamily buildings.Approximately 26.000 buildings participated in “Plan 5” during a five-year period. Theresults were highly satisfactory, as it resulted in water savings equivalent to 25% of theaverage water consumption per household before the plan. See graph below.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 35
  37. 37. Water Savings Achievement with Plan 5Plan 5 included five steps designed to align the interests of the customers, EMASESA andprivate contractors. The five steps were: 1. Organizing the community in each multifamily building and reaching agreement on the implementation of the plan. Once 60% of the households in a builiding favored the program, the community filled out a form and sent it to EMASESA or contacted directly one or more contractors assigned to the area. 2. Inviting bids for the work. Private contractors asigned to the area prepared quotes for the work, and the one with the best offer continued with the necessary paperwork. 3. Financing the works. EMASESA offered a financing plan for each building, including a subisidy for the installation of the meters. The financing plan offered by EMASESA is presented in a box below.Meter Station in a Multifamily Building Financing Offered by EMASESA Funding agency: Local bank Award: Automatic Amount: 100% of cost Period of repayment: Five years Prepayment: Allowed without penalty Payment: Deduction from the bill Interest rate: 8.5% Commission: 1.5%ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 36
  38. 38. 4. Carrying out the works. The work started once the financing plan was agreed between the community and ASESA, and the contractor received the downpayment. 5. Paying the contractor. Once the contractor completed the work in a satisfactory manner, the customers gave their approval to the work and EMASESA or the customers payed the contractor.Advantages for customersThe advantages for customers included the following: 1. Potential savings in water bills, and access to bonus offered by EMAESA for low consumption. 2. Control of water consumption in the household and, thus, of the water bills. 3. Rehabilitation of water connections in building, improving pressures and reducing leaks. 4. Accessing to subsidies provided by EMASESA including: a. No subscription costs. b. No deposit or warranties. c. Incentives for connections (€ 93.76 per building) d. In case there was the need of a pumping system to increase pressure, EMASESA increased the subsidy by € 36.06 per building e. In case there was the need to increase the intake points to two, the subsidy wasl increased by € 57.70 per building. f. If there are additional legal steps to follow, the subsidy was increased by € 2.88 per building. 5. Access to preferential loans provided by a financial institution and payment in 5 years. 6. No individual paperwork; it was done by the contractor.Advantages for EMASESA 1. Improving control of consumption per individual users, reducing the levels of demand of water by 25%. 2. Rehabilitating networks inside houses that have problems of leaks and pressure. 3. Updating the database of customers. 4. Installing high precision digital meters. 5. Facilitating the implementation of tariff systems based on individual consumption. 6. Sharing with customers the costs of service improvements in the premises.ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 37
  40. 40. CUSTOMER SERVICE: THE EXPERIENCE OF BARRANQUILLACOLOMBIA Clear visionThe three companies’ mission and vision statements put the customer at the forefront of theutilities success. The vision statement of the Triple A illustrates the point well: Commercial Vision– Customer Management Directives: 1. We do not generate unconformity to our clients 2. If our client need us, they dont have to come to our offices 3. We will attend our clients nice and diligently 4. We add value to our best clientsThe three companies back up the mission statements with innovative programs to satisfycustomers’ desires and needs. The paragraphs below outline some of the programs currentlyin place, which may be readily applicable to MIYAHUNA. Bill collection strategy: Super ClientTriple A implemented a successful program denominated Super Client aiming at providingbetter service to the customers and simultaneously improve bill collection. The programconsisted in creating a status of Super Client for all those customers that pay promptly theirbills in full (in the next week or so after receiving the bill). Clients included in this categoryenjoy benefits like the following: • Faster attention (VIP line at customer centers) • Special bill (including, for example, vouchers for discounts in stores, participation in raffles) • Special recognition in the call center of the company (116 line) • Special letter of recommendation after 12 months of status as Super Client (These letters are highly valued by the banking and commercial systems as a way to obtain references for potential customers)ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 39