Performance Enhancement of Water and Sanitation Utilities in Kenya through Benchmarking and

Collective Learning

Dr Adriaan Mels - Vitens-Evides International Mr Toon van Kessel - Vitens-Evides International

Mr Peter Dane, Association of Dutch Water Companies

Project: Partnership for Performance enhancement of Water and Sanitation Utilities in Kenya through Benchmarking and Collective Learning

Partners: Water Services Providers Association (WASPA)Association of Dutch Water Companies (VEWIN) Vitens-Evides International (VEI)9 Water Services Providers (WSPs)Kenyan Water Institute (KEWI) SNVWASREB

Budget: € 1.19 million

Period: 1 November 2011 – 31 October 2015

Financers: EU Water Facility, VEI, SNV, GIZ

Aim: To improve the technical and financial performance of Water Services Providers (WSPs) in Kenya by introducing benchmarking and collective learning amongst peer WSPs and strengthen their capacity to implement the necessary performance improvements.

Vitens Evides International (VEI)

International subsidary of two largest Dutch water companies

Evides Vitens

Turnover € 274 million

€ 475 million

Consumers 2.3 million 5.4 million

Staff 550 1,500

50% of Netherlands’ population

The Hague

Water Operators Partnerships

• Since 2005 we are active to support water companies in developing countries in improving operations and financial management

• Cooperation through Water Operators Partnerships: long term partnerships between water companies aiming at capacity development in a peer to peer approach

Peer to peer approach in capacity development

Experienced staff supports colleagues of partners in:

• Finance, Planning & Control• Investment planning, procurement, commisioning (and

fund raising)• Operations (production, distribution)• Water source protection• Customer management• Sanitation

= project references since 2000

= current projects

UFW (2004 -2008) (%)

0

10

20

30

40

50

60

70

Chokwe Inhambane Maxixe Xai Xai

% U

FW

What type of results do we achieve?

NRW for cities in Mozambique in the period 2004 until 2010.

Outline

• Dutch Association of Water Companies (VEWIN)

• Benchmarking in the Dutch Water Sector

• Partnership for Performance enhancement of Water and Sanitation Utilities in Kenya through Benchmarking and Collective Learning

Peter Dane

• MSc in civil engineering

• 25 year in the water industry (utilities)

• at present manager international benchmarking

at Vewin, Association of Dutch Water Companies

• programme manager of the European Benchmarking

Co-operation

• member of IWA’s SG BPA management committee

Vewin - Association of Dutch Water Companies

• established 1952 – 212 water utility members

• today 10 (public) utility members

• runs one of the first national benchmarking programmes of Europe

• coordinating partner of the European Benchmarking Co-operation (international benchmarking programme)

Development of water supply

Number of Dutch water companies

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50

100

150

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250

1853

1859

1865

1871

1877

1883

1889

1895

1901

1907

1913

1919

1925

1931

1937

1943

1949

1955

1961

1967

1973

1979

1985

1991

1997

2003

2009

Public limited liability company

Share holdersProvinces

Municipalities

Water company

Assets Assets Assets

(public) customers

WaterIncome

28 May 2010 15

What is benchmarking?

IWA’s Task Group on Benchmarking:

“benchmarking is a tool for performance improvement

through systematic search and adaptation of leading

practices”

• Benchmarking consist of two essential steps:

performance assessment and performance improvement

• Results of benchmarking are made tangible via

Performance Improvement Plans

National benchmarking scheme

voluntary programme since 1997

• initiated by national discussions on privatisation and liberalisation of public

services

objectives

• improving efficiency by learning

• transparency

as of 2011: mandatory national benchmarking programme

Results of national benchmarking scheme

• efficiency improvement 1997-2009 of 27%

European Benchmarking Co-operation (EBC)

• initiative of national water associations and several

utilities of Denmark, Finland, Netherlands, Norway,

Sweden (2005)

Mission:

• to facilitate water utilities in the continuous process

of improving performance and transparency by:

offering a simple, web based, international

benchmarking programme for water services

providing a platform for exchanging best practices on

management and operations

What can Vewin / EBC contribute?

Peer to peer support to WASPA and utility members:

•benchmarking knowledge and –experience: ‘how to benchmark’

•access to peer utility network: ‘learning from best practices’

The project

Objective

To improve the technical and financial performance of WSPs in Kenya by introducing benchmarking and strengthen their capacity to implement the necessary performance improvements

Key performance indicatorPerformance

2008/2009Target (source: National Water

Services Strategy 2007-2010)

Water coverage urban areas 45% > 80%

Sanitation coverage urban areas

50% > 72.5%

Non Revenue Water (NRW) 49% < 30% by 2015

Hours of supply 16 h

Metering ratio 81% > 95%

Revenue collection efficiency 83%

Staff per thousand connections

7

Coverage of O&M costs 97% Recommended value > 150% to achieve full cost recovery

Selected KPIs, results and targets for Kenya’s water services sector in 2008 / 2009 (source: IMPACT 3)

The project

Performance measurement and

comparison

Identification of best practices

(collective learning)

Performance Improvement Plans

Performance Improvement

Performance measurement and

comparison

Identification of best practices

(collective learning)

Performance Improvement Plans

Performance Improvement

(3 demo projects)

The project partners

Performance measurement and

comparison

Identification of best practices

(collective learning)

Performance Improvement Plans

Performance Improvement

Performance measurement and

comparison

Identification of best practices

(collective learning)

Performance Improvement Plans

Performance Improvement

VEWIN

VEI

SNV

WASREB

(3 demo projects)

WASPA

9 WSPs

Participating WSPs in first stage

Selected by WASPA executive commitee in close consultation with members

• Sibo• Isiolo• Kericho• Nyeri• Muranga’a• Thika• Oloolaiser• Malindi

Include more WSPs in the course of the project

Activities

1.1 Training in benchmarking and collective learning (WASPA, WSPs)

1.2 Joint development of methodologies and tools for benchmarking

2.1 To compare performance among the participating WSPs

2.2 Form 3 expert groups for selected KPIs

2.3 Identify best practices and develop & implement enhanced Performance Improvement Plans on the selected KPIs

2.4 Plan, implement and evaluate at least 3 demonstration projects on best practices

3 Sector-wide dissemination and upscaling of benchmarking approaches

Thank you for your attention!