an eu funded project building together for the future...an eu funded project building together for...

Municipal Infrastructure Support Programme An EU funded project

●●● Building together for the future

A Project implemented by

Participatory Planning PUC “Vodovod” Krusevac-FOPIP

Workshop Report

Premises: PUC ‘Vodovod” Krusevac -Water Treatment Plant Conference Hall Date: 14 April 2010



2 A Project implemented by

Objectives

• To achieve a common understanding and commitment with regard to the FOPIP project; objectives among the key staff and management of the PUC “Vodovod” Krusevac;

• To identify key issues and priority actions to be addressed by FOPIP; • To introduce SWOT analysis and action plan for each of the prioritised activities; • To learn by doing participatory planning process and methodology; • To create genuine interaction between the FOPIP project team and the Company staff.

Participants

Prior to the planning workshop, the FOPIP team suggested and the Company Director approved the participation of the following key staff.

No. Name Position 1 Slobodan Lazic PUC “Vodovod” Krusevac Director 2 Milan Grmusa PUC “Vodovod” Krusevac Deputy Director 3 Jasmina Banjanin Head of Technical preparation and designing 4 Miodrag Djurdjevic IT system Designer 5 Dragoljub Petrovic IT system and data base Designer 6 Viseslav Lukic Head of Water supply network maintenance 7 Ljubomir Banovic Investment, technical development Manager (Deputy Director) 8 Tanja Krkic Head of Accounting Unit 9 Svetlana Pavlovic Financial and accounting operatives Manager (Deputy Director) 10 Miroslav Stojanovic Water production and maintenance of dam Manager 11 Snezana Tadic Head of Chemical control and water quality 12 Jelica Blazic Purchasing, Sales, and collection Manager (Deputy Director) 13 Milena Nikolic Head of Legal and common affairs 14 Dalibor Stanojlovic Head of HR department 15 Radoje Lukic Maintenance department Manager 16 Marijana Andjelkovic PR of PIU

Participants from the MISP FOPIP team:

No. Name Position 1 Michel Leushuis FOPIP Project Manager 2 Sanja Vemic FOPIP Project Manager Deputy 3 Aleksandar

Radenovic Financial management Expert

4 Olivera Kovacevic HR Expert 5 Bane Pertusevski Water Supply and Sanitary Engineer 6 Ana Novkovic Engineer




Agenda:

Timing Topic 10.30 - 10.45 Introduction (Presentation of FOPIP activities and area of intervention ) 10.45 - 11.30 Intervention areas 11.30 - 11.55 Break 11.55 - 13.15 Participatory work/SWOT Analysis and selection of the priority actions 13.15 - 13.30 Break 13.30 - 14.30 SWOT analysis of other priorities for action 14.30 - 14.50 Introducing the Action Plan 14.50 - 15.00 Evaluation and closing

Proceedings

1. Introduction: 1030 -1045

The workshop started at 10.30 with opening words by Mr. Slobodan Lazic PUC “Vodovod” Krusevac Director.

Mr. Lazic briefly introduced the FOPIP project and the project team and gave the floor to Mr. Leushuis, FOPIP Project Manager. Mr Leushuis stated the purpose of the planning workshop and explained the minimum list of measures related to the regional bulk water activities.

Introduction

2. Intervention areas: 1045- 1130 Previous to the session the FOPIP team facilitators made a minimal list of measures to be done for the regional bulk water system and presented the list to the participants. The participants agreed with the stated list of minimal proposed activities in a framework of FOPIP TOR comprised of six main activities stated below:




1. Cost accounting per organization units (especially bulk water);

2. Assistance in preparation and implementation of Bulk water delivery contract;

3. Assistance in a Methodology for Bulk water tariffs;

4. O & M of DWTP and transmission main;

5. Adjustment of HR policy and organizational setup;

6. Reporting and disclosure of information.

Alongside the above mentioned activities and in order to recognize together other priorities for action, the facilitators asked participants to suggest other activities which they consider important for the improvement of PUC’s operational efficiency. The participants selected additional five activities which are listed below:

1. Increase of PUC revenues, decrease of cost / decrease of receivables;

2. Inventory management;

3. Standardization of working procedures / harmonising of job task descriptions with standards;

4. Improvement in business planning and establishment of business planning and development department;

5. Monitoring and control of water losses in regional water supply system with GIS.

Intervention areas

3. SWOT Analysis of main activities for action: 1155-1315

Following the definition of the intervention areas and in order to understand current challenges the PUC is facing, the participants together with the FOPIP team made a SWOT analysis for each activity presented in the list of FOPIP’s minimum proposed activities.

In addition from the additional list of activities made by participants the FOPIP team decided to perform SWOT analysis for the following activities:

1. Increase of PUC revenues, (decrease of cost / decrease of receivables);




2. Inventory management;

3. Monitoring and control of water losses in regional water supply system by using GIS.

Also, during discussions with the participants another topic appeared to be relevant and the FOPIP facilitator decided to include it in a SWOT analysis:

Defining of policy for the provision of non collected claims and cleaning of Data base and revenue collection problems.

Concerning proposed activities regarding:

1. Standardization of working procedures-job task descriptions, improvement in business planning; and

2. Establishment of Department for Planning and Development

It was decided to merge these with the previously mentioned FOPIP activity of Adjusting of HR policy and Organisational Setup. Therefore, it was decided only to carry out a SWOT analysis for the combined / merged activity (Item nr. 5 Adjustment of HR policy, organizational setup)

SWOT analysis




The detailed SWOT analysis is presented hereinafter:

1. Cost accounting per organization units (esp. bulk water)

STRENGTHS

Strong technical possibility of existing accounting software to record material cost per organisational unit;

Strong technical possibilities of existing accounting software to separate revenues per PUC organisational unit.

WEAKNESS

Lack of time for the introduction of new activities in the existing job task of PUC personnel;

Serbian people mentality, and resistance to change;

Lack of interest for the innovation and professional improvement.

OPPORTUNITIES

-

THREATS

Low level of public awareness

2. Assistance in the preparation and implementation of Bulk Water Delivery Contract

STRENGTHS

Prepared draft document Bulk water delivery contract.

WEAKNESS

Lack of awareness about the water resources.

OPPORTUNITIES

Payment guarantees (As the result of the payment guarantees from the contract, high collection rate is expected)

THREATS

The existing water infrastructure was built from self-contribution therefore the final consumers would not accept full cost coverage price.




3. Assistance in development of the methodology for Bulk water tariffs

STRENGTHS

Establishment of full cost water tariff ;

PUC would operate on sustainable level

WEAKNESS

-

OPPORTUNITIES

THREATS

Population is refusing to accept water tariff increase;

Poverty situation on the local level;

Poor water quality (Difficulty to define the minimum and maximum water delivery quantities)

4. O & M of DWTP and transmission main

STRENGTHS

Introduction of new technologies in water production;

Improvement of quality and capacities of DWTP;

Auto immunization and computerisation of production and distribution related activities

Improvement of laboratory analyses

WEAKNESS

Poor maintenance of pipeline main;

Old secondary network in Krusevac;

Lack of equipment for measurement on the system;

No existing relevant authorities and state master plan in the case of emergencies

OPPORTUNITIES

Implementation of existing law regulation;

Protection of accumulation lake Celije

THREATS

Ownership and legal status of water assets (legal status) is not clear;

Deterioration of water quality and accumulation.




5. Adjustment of HR policy, organizational setup

STRENGTHS

More precise definition of the existing PUC job positions;

Adjustments of responsibilities and separation of functions;

Respect to hierarchy (bottom up, and up to bottom approach);

Clearly defined rights and responsibilities (accountability).

WEAKNESS

Non adequate practice in new staff selection;

Strong external (political) pressure and influence on the employment policy.

OPPORTUNITIES

Significant improvement of the personnel structure (staff selection based on current demand and adequate qualification)

THREATS

Local mentality of relatively small town and political pressure.

6. Reporting and disclosure of information

STRENGTHS

Dissemination of reliable and confirmed information about water quantity and quality.

WEAKNESSES

As a result of current situation in the PUC irrelevant and poor information appear in a public and for that reason the PUC has been facing significant intangible damages.

OPPORTUNITIES

With good reporting procedures PUC would have a good relationship with the final consumers and as a result it would lead to increase of own revenues.

THREATS

Influence on public awareness;

Dissemination of non reliable information to the public




4. SWOT analysis for other suggested activities: 1330-1430

7. Defining of the policy for the provision of non collected claims and cleaning of customer database and revenue collection problems.

STRENGTHS

Well established procedure for writing off debts in a case of pipe breaks.

WEAKNESSES

Not able to invoice industry and enterprises as they find themselves in the process of privatisation and bankruptcy.

Not well established legal procedure for invoicing.

For the industry after three years debts are written off.

Court procedure is not efficient and additionally involves payment of court fees.

OPPORTUNITIES

Fostering communal inspection work in disconnection from water supply network

Increasing of collection rate

Improving efficiency of Legal and court processing system.

THREATS

Violation of financial stability of PUC

8. Inventory management

STRENGTHS

Development of Inventory Plan for next year;

Allocation of financial sources for the Inventory plan;

Monitoring and stock control;

Monitoring of the minimum necessary quantities of stock

WEAKNESSES

Lack of inventory balance;

Currently unrealistic plans are prepared

OPPORTUNITIES

FOPIP

THREATS

Unpredictability of water system;

Unexpected cases’ in system maintenance




9. Monitoring and control of water losses in regional water supply system with GIS

STRENGTHS

Establishment of joint responsibilities between all municipalities participating in regional project;

Water losses can be shared with other municipalities.

WEAKNESSES

The parts of water network are old;

Some parts of the water system are not functioning;

Long and wide water network without adequate measuring instruments;

Illegal buildings and constructions on the water network.

OPPORTUNITIES

Development of system for distance control for accurate monitoring, supervision and management

THREATS

Water pipeline damages caused by force majeure;

Some parts of the water system are not functioning;

Long and wide water network without adequate measuring instruments;

Illegal buildings and constructions on the water network.

10. Increase of PUC revenues (decrease of cost / decrease of receivables)

STRENGTHS

Regional water supply development ;

By increasing the revenues PUC would be also capable to solve waste water issues;

Continuous water delivery and less disconnection.

WEAKNESSES

Weak collection rate;

According the current State policy VAT must be paid even for non collected amount

OPPORTUNITIES

30:70 invoicing to household compare to the industry (past situation)

70:30 invoicing to household compare to the industry (current situation)

THREATS

No bright future




Voting and ranking Following the SWOT analysis the participants were asked to prioritise the activities by voting with “Red” (high priority 5 points), “Blue” (middle priority 3 points) and “Yellow” (low priority 1 point) stickers. Based on the votes of the participants the FOPIP team summarised the list of top three priorities that will be the core activities to be further detailed in an Action Plan. Ranking by participants

Voting stickers

The results are as follows:




The list of priorities is presented below:

1. Cost accounting per organization units, (esp. bulk water) (29 points)

1. Increase of PUC revenues, (decrease of cost / decrease of receivables) (29 points)

3. Adjustment of HR policy; organizational setup (26 points)

4. O & M of DWTP and transmission main (20 points)

5. Inventory management (14 points)

6. Reporting and disclosure of information (4 points)

6. Defining of policy for the provisions of non collected claims and cleaning of data base and revenues collection problems

(4 points)

6. Assistance in a Methodology for Bulk water tariffs (4 points)

9. Monitoring and Control of water losses in regional water supply system with GIS

(3 points)

10. Assistance in the preparation and implementation of the Bulk water delivery contract

(0 points)

5. Action Plan and closure: 1445-1500

After the SWOT analysis and participants voting, FOPIP team facilitator presented the guidelines on how to develop the Action plan for each of the above mentioned priorities.

Action Plan




Evaluation and closing

The activities which should be further detailed in an action plan are given below.

Main Activities Responsibilities Time frame Resources Indicators

1 Cost accounting per organizational units, (esp. bulk water)

• Head of units • 31.12.2010 • HR • Financial

• Quarterly reports

2. Increase of PUC revenues, (decrease of cost / decrease of receivables)

• • • •

3. Adjustment of HR policy; organizational setup

• • • •

4. O & M of DWTP and transmission main

• • • •

5. Inventory management

• • • •

6. Reporting and disclosure of information

• • • •

7. Defining of • • • •




policy for the provisions of non collected claims and cleaning of data base and revenues collection problems

8. Assistance in a Methodology for Bulk water tariffs

• • • •

9. Monitoring and Control of water losses in regional water supply system with GIS

• • • •

10.Assistance in preparation and implementation of the Bulk water delivery contract

• • • •

PREPARED by FOPIP TEAM

an eu funded project building together for the future...an eu funded project building together for...

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