ACTIVITY REPORT 2017 2 Regional Water and Sewerage Operator

ACTIVITY REPORT 2017 2 Regional water and sewerage operator

Address: St. Mihai Costachescu no 6, Iasi, RO–700495 Fiscal code: RO 1959768 Commerce Reg. No.: J22/1/1991 CAEN Code: 3600 Subscribed capital: 78.872.243 lei Paid-up capital: 78.872.243 lei Contact center: 0232.969 E-mail: [email protected]; [email protected]; [email protected] Webpage: www.apavital.ro

3 foto Andrei Cucu foto

4 CONTENTS foto Ioana Poleac foto

Message of the ApaVital General Director page 7 10 years of ApaVital page 8 Institutional organization and functioning page 10 Brief history page 12 Operational area page 14 The water road page 18 The General Directorate page 20 The Economic Directorate page 28 The Tehnical Directorate page 42 The Operational Directorate page 72 foto Suhan Ionela foto The Commercial Directorate page 95

5 A accessibility to high-quality water and sewerage services

P continous performance A ability of durable development V valuing of own potential I active involvement T decisional and legislative transparency A adaptability to clients’ demands L loyalty towards clients and the entire community

6 MESSAGE OF THE GENERAL DIRECTOR

The first 10 years have passed over ApaVital. Therefore, it’s a good moment for making a review. From the point of view of profession I chose and followed, I would not change anything, I am a rather strict person on this issue. Even from a young age I had the desire to become a hydro- technical engineer, and, afterwards, to coordinate greater projects. These desires have materialized, more beautiful things happen, and therefore, if I would go back in time, I would choose the same professional path.

10 years... What was the greatest challenge all this time? If at first the main challenge was the consistent development of the operating area, I now want to attract professionals around me, in the true sense of the word, professionals with which all problems of the company’s clients can be solved on due time and at a high degree of professionalism, thus managing to keep clients close to us. Nowadays, I can state that this goal has been reached, although there is always room for better or for more. Exclusivity does not mean assured success! I want to see around me the same determination, motivation and desire to succeed. These traits of character are not to be learned, but are part of our being, and in some of us they are pregnant, and therefore we meet people who succeed in everything they propose. Personally, I was motivated by the desire to transform the ApaVital name in a well-known and respected brand on the Romanian water market, a name that shall last for generations, about which to speak superlatively in any environment.

Ph. D. Eng ION TOMA General Director

7 OPERATIONAL AREA CLIENTS 2008: 37 territorial administrative units served 2008 - 336 thousand persons served 2018: 77 territorial administrative units served 2018 – 460 thousand persons served

INVESTMENTS 2008 - 2018 PHYSICAL PRODUCTION Apavital own sources – 201 contracts (works, services and goods), BILLED IN A 10 YEARS SPAN 245 million cubic meters of water reaching an amount of 104 million lei (this being 400 times the volume External sources – 38 contracts (works), of the Red Lake/Lacul Rosu) reaching an amount of 170 million euro

8 1,315 km of drinking water distribution 657 networks km of sewer networks

15 286 water tanks APAVITAL km of (new and upgraded) main water 10 years of pipelines presence in your life wastewate4 r water5 plants treatment plants (new and upgraded) 2 (new and upgraded) new water 69 plants pumping stations (water and wastewater), new and upgraded

9 Apavital Iasi is a company in which the shareholders are the “territorial administrative unit~. The total subscribed share capital of the company is 78,872,243 lei, divided into 788,723 shares, with a nominal value of 100 lei/share. The ApaVital management complies Iasi County Council participates in the share capital with shares, representing to the set of rules that govern the 99.694570% of the share capital. The remaining shares of up to 100% are held by management and control system 89 other territorial administrative units. within a public enterprise. The The ApaVital Administration Board was established in its current structure relationship between the public in February 2016, in compliance to the principles stated in OUG no. 109/2011 on tutelary authority and the entities of Corporate Governance, based on a prior selection carried out by a committee of independent experts, specialized in the recruitment of human resources the public enterprise, between the The ApaVital Board was appointed by Decision no. 6 / 22.01.2016, Board, directors, shareholders and issued by the shareholders general assembly, in accordance with the company’s other interested persons, takes place Constitutive Act, and includes the persons listed below: in light of the principles of corporate Ph.D. Eng. Mihail Doruş Prof. Ph.D. Eng. Alexandru Salceanu governance of public enterprises, Technical Director and President of the Department of Electrical and Energy Engineering developed by the Organization S.C.APAVITAL S.A. Board and Applied Informatics, the „Gheorghe Asachi” Ph.D. Eng. Ion Toma Technical University of Iasi for Economic Cooperation and General Director of S.C. APAVITAL S.A. Ec. Maria Simionescu Development (OECD). Ec. Elena Arvinte Economic Director, S.C. APAVITAL S.A., General Executive Director of the Economic Department Director of the Economic General Directorate of the County Council of Iasi. and Local Public Finance Iasi, 2012-2016. Prof. Ph.D. Eng. Carmen Teodosiu Eng. Ovidiu Mugurel Laicu Vice-rector in charge with scientific research and Regional General Director and Chairman of the innovation at the „Gheorghe Asachi” Technical Technical and Economic Council of the Regional University of Iasi. Directorate for Roads and Bridges Iasi. Ec. Mariana Chirila Eng. Constantin Dan Neagu Economic Director, S.C. APAVI TAL S.A., 2001- Expert in the Control Co-ordination Service, 2016 ANCOM (National Authority for Administration and Regulation in Communications) 10 ORGANISATION AND FUNCTIONING

The directors of S.C. APAVITAL S.A. were appointed by Decisions no. 25/25.03.2016, no. 51/25.04.2016 and no. 52/25.04.2016, issued by the Administration Board, by observing the principles of OUG no. 109/2011 on Corporate Governance, based on criteria related to a person’s expertise in the management of the public enterprises and on basis of technical oﬀers submitted during the selection procedure, by the members of the Board, thus becoming executive administrators. Beginning with May 16th, 2016, the company’s executive management has the following members:

• Ph.D. Eng. Ion Toma - General Director • Ph.D. Eng. Mihail Doruș - Technical Director • Ec. Maria Simionescu - Economic Director

Besides the three directors - to whom the Board has entrusted the company’s management - the company’s organization chart includes two positions of specialized directors, which were assigned on the 1st of July 2016 to the following persons:

• Eng. Ion Mihailescu - Operational Director • Eng. Romeo Casian - Commercial Director

11 The Timisesti water source proves to be insuﬃcient. Hence, the Prut River water supply towards Iasi is designed and completed. For this system, several facilities had to be completed: the Tutora 1 catchment facility, the supply pipeline from the River Prut intake towards the „Ion Creanga” re-pumping station, and the Șorogari Water Plant. The water-sewerage activities were assigned to the “Întreprinderea Comunala Apa-Canal-Bai Iași” (communal enterprise for water- 1936 sewerage-public baths) The authority 1955 -1957 named “Societatea 1968 -1973 Comunala a Apelor Potabile Iași” is The Timișești groundwater collectors are extended created (drinking water communal (design and completion) with 4,050 m of new company) pipes. Upgrading works commenced at the Iasi Wastewater Treatment Plant (WWTP), stage I. These works have been continued with stages II-IV, until year 1996, when the upgrading of existing process lines has started The activity of the “Întreprinderea 1942 1948 Comunale Apa-Canal Bai” Iași is transferred to Creation of enterprise named another entity named “Grupul întreprinderilor de “Societatea Comunala a Apelor “Întreprinderea de Electricitate, Tramvaie, Gospodarie Comunala și Locativa Iași.” (group on Potabile Iași” is converted into Apa-Canal, Salubritate” (public utility for electricity, tramways, water-sewerage, enterprises for public utilities and housing) a public commercial „regia”. sanitation)

1995 1991 The authority named “Regia Autonomă The “Regia Autonoma Județeană Apă Canal Iași” is created (a water-sewerage state-owned authority, Județeana Apă Canal Iași” “regia”) launches an investment program in all ﬁelds of activity

2001 - 2009 2008 RAJAC Iași starts the 2000 - 2001 implementation of the EU- The SC APAVITAL SA company ISPA program, its main goals Financing contracts are is created (“societate being to bring environmental, signed by delegates comerciala”), having as social and economical beneﬁts of Romania and the stockholders the Iasi County and, also, various operational Council and the Municipalities beneﬁts. 12 European Community within Iasi County BRIEF HISTORY

2016 The SOP Environment project „Extension and rehabilitation of water and wastewater infrastructure in Iasi county” (16 works contracts and two service contracts) is fnalized. The project „Investments for the operation and maintenance of water systems in the operating area of Regional Operator Apavital SA Iasi”, a completion of above mentioned project, is also fnalized. The investments listed in the scope of this project consisted of two works contracts, two service contracts, an equipment supply contract and 13 works contracts executed by ApaVital between 2007 and 2015, from their own sources, which were eligible for payment reimbursement via SOP Environment program. On March 7th, 2016, the contract named “Technical Assistance for the preparation of Financing Application and Tender Documentation for the Regional Water and Wastewater Infrastructure Development Project in Iaşi County for period 2014-2020” was signed. This contract’s scope included agglomerations matching the following conditions: distance between localities of less than 200 m or population of more than 2000 inhabitants. Localities all across the county were targeted. The contract involved two stages: 1. the completion of the necessary documents in order to obtain a co-fnancing from the European Union for works in the sector of water and wastewater infrastructure (Financing Application, Tender Documents, Projects, Execution Details). 2. The Project Management and Supervision of Works Contracts.

2017 On 10.03.2017, ApaVital submitted to the POIM Managing Authority the fnancing application requesting the fnancial resources needed to fnance the Technical Assistance Contract. On 26.04.2017, the AM-POIM authority approved the fnancing application. On 26.05.2017 the Financing Contract with the MINISTRY OF REGIONAL DEVELOPMENT, PUBLIC ADMINISTRATION AND EUROPEAN FUNDS was signed, as Managing Authority for POIM project. For year 2018 is envisaged the submission of a fnancing application for the second phase of the technical assistance contract, in order to insure the fnancing of POIM works contracts, but also the commencement of tendering procedures for awarding of works contracts. (note: POIM = Program Operational Infrastructura Mare - Large Infrastructure Operational Program, LIOP, 2014-2020)

2009 2011 - 2012 On the 14th of July 2009 a management delegation contract was signed with the The implementing ARSACIS inter-community development of projects with EU/ 2012 association (the regional association Cohesion Funds for water-sewerage services of Iasi). By The implementation of SOP means of this act, company SC APAVITAL ﬁnancing has Environment 1 and SOP SA Iasi becomes a regional operator in commenced. Environment 2 projects is started. Iasi County. 13 272served communes73 localities

towns3 counties2 HARLAU IASI PODU ILOAIEI NEAMT TG. FRUMOS

cities2 IASI PASCANI

14 OPERATIONAL AREA

R ai on G /"(! L O IASI COUNTY D CĂLĂRAȘI SANTA MARE E N I APAVITAL OPERATIONAL AREA OPERATED SYSTEMS R RĂUSENI a io /"(! /"(! n SYSTEMS CURRENTLY IN THE WORKS F Ă Județul BOTOȘANI (! BIVOLARI LE FACILITIES OPERATED BY THE COMPANY Ș 6" T ANDRIEȘENI I WATER FACILITIES 6" /"(!(! (! Water Tank # O!/"( PLUGARI 0(! U! Drinking Water Pumping Station U(! /"(! A (!U#0! ȘIPU!(OT#0E6"! /" Water Plant V DELENI #0U!O ( TRIFEȘTI A 6" (! ROȘCANI /" Chlorination Plant E O C #0#0 VLĂDENI O Caisson U #0 #0#0/"U!(#0(!U! (! O! S HÂ#0RLĂU (!/"U! /"(!U #6"0P! Abstraction Field l 6" FÂNTÂNELE U! țu (!U/" U!(U!#0 #0 (!/" Q Other Facilities e SIREȚEL (! O!SCU!OBINȚI #0 (! PROBOTA d #0 COARNELE CAPP!6"REI SEWERAGE FACILITIES u (!U U!(/"6" J (! #0#0 #06"#0 CEPLENIȚA GROPNIȚA #0 /"(! ! Wastewater Pumping Station O! U!( U( (! #0#0 (! U! (!/"#0 6" Operated WWTP /"(!U!(!6" #0 #0 TĂTĂRUȘI /" #0 U!( #0 #0#0 P! LESO!PEZI U/!"( (!/" FOCURI ȚIG/"U!(Ă#0NA6"ȘI Discharge Drain (! COTNARI U!( #0 #0 /"! 6" VÂNĂTORITODIREȘTI U!( U!( (! Q(/U!#0#0 WWTP ( not taken-over) U!/"( (!/" MOVILENI6" #06" Q 6" ! (!BELC(!/"E#P!6"0ȘTI #0 #0 U VICU!(TOR#0I#A0 R #0 #0 a (!#0 U!( (! io VALEA SEACA O!U/" POPRICANI n CUCUTENI BALȘ /"(! /"(! /U"! HĂRMĂNEȘTI ERBICENI ROMÂNEȘTI GOLĂIEȘTI U CRISTEȘTI N

F ER M A ! ( S P IN O A G S #0 A U! /"Q H Q R "(! A / RĂUCEȘTI U #"0 L #0 6 E Q MO #0 !" 6" L # U/ D 0 O ST VAT IA # ! N (" D 0 / A E PO U!( M /" REDIU PA " (! R 6 U E T " I 6 M IS ES # RUGINOASA T 0 O!I P!(AȘCANI 6" (! I Q #0 (!U!/"( #0 BU/(!"ĂLTAŢI # Text ARONEANU (!U STATIA T 0 OR ATAR E TIMISESTI

e r a ! s U r va Q (!/U" " de / a Q ur # "G #0 U!( 0 / S S TAT .M.A. IU PODU EX NE ! IL P ( OAI E ! E ! COSTEȘTI I R (" I ( M / ! EN U T AL ! #0 ION NECULCE #0 A U! ZANA AUL O # !" O!R Q # U! /"U!( #0#0 U/(! !F 0 OR (!" O / N U! T P # U 0 T U R I Z #0 Q QV # 6" UNGHENI O MOȚCA ##0 0 " R 0 6 A 6" # N #0 0 E S T !( O!I /"O! # #0 U! ( U! TIMIȘEȘTI QQ #0#0 TG F0#R#0/"U!UMO#0SU!U! PODU ILOAIEI #0 #0 (! #0 ! R U # EP R 0 E ZEN VO TA LKSW NTA O! #6"0 #0(! #0 6"#0LEȚC6"#0U!/"(AGEN NI TÂRGU-NEAMȚ QQ HELEȘTENI /"(! DUMEȘ/"(!TI VALEU!(A#0 LUPU!(ULU(!I HOLBOCA (U/!" 6" #0 6" U! U!/"( U!(!/"U#0#0U!/" (!U(!U /" Q SU!TOLNICENI PRĂJESCU #06"#0 #0 U! U!(! (! Q 6" #0 /"(! #0 #0#0U!#0#0 (!U URECHENI #0#0#0 #0 U! IAȘ#0I #0 U!(/"#0#0#0U(! Q O O!(!! U!U! U(!/" L/"(!UNGANI (!/" (!U!( 6" #0 O!/" U STRUNGA U! U! U! #0U! ȚUȚO/"(U!RA PĂSTRĂVENI Q BRĂEȘTI #0(! (!UU!#0 MIROSQLOVEȘTICIOHORĂNI POPEȘTI /"( U!( (! U!(!

F R MIROSLAVA O ! N (!U T

C A P T # A ! 0 R U!( "(! E /

M R I R O S L O V A E AL.I.CUZA TOMEȘTI S 6" Q T I !"( ( U/ V U!( e U r s #0 e n i ) (! Q L (! U!/"( P! R # (! #0 0 P #0 A HORLEȘTI # #0 0 R U!/" #6"0 U (!UU!/"( #0 O!MOGOȘEȘTI SIRET L (! U #0 S T I #0 /" ȚIBUCANI R /" #0#0 Q Q E (! /"U!(! T U( U! HĂLĂUC(!OEȘTI SINEȘTI #0 #0#06" #0 OȚELENI Q #0 #0 R U!/"( Q BUTEA COMARNA a BÂRN#0OVA io TUPILAȚI PRISĂCANI n O!/" U!( BOGHICEA VOINEȘTI N NISPOREȘTI MIRCEȘTI CIUREA I (! U(!/"##0 MĂDÂRJAC S /"U! #0 P RĂCHITENI #0#0 O Ju (!/U"! O! #0#0 MOGOȘEȘTI R d #0Q SCHITU DUCA E ABAOANI ! N TIA S ( TA ! /"S Q U e GHERĂE#0ȘTI BÂRA #0#0/"(! COSTULENI GROZEȘTI I țu O! #0#0 DOLJEȘTI U(!#0#0 l N #6"0 STĂNIȚA 6" SĂBĂOANI U/(!" 6"P! E TĂMAȘ!E6"#0NI ȚIBANA MIRONU!(#0#0EASA DOBROVĂȚ A P #0 GRAJDURI !( M SAGNA (!U RU!ĂDU"!(CĂNENI T O!(! /"(! #0 U! /U!6"#0 O!/" 6" /"U!#0 P!6" U!( U!/"(#0 U(! U(! DAGÎȚA P!Q(/"U! SCHEIA U!( Orasul ROMAN (!" U!( TĂCUTA P!6" GORBAN / ȚIBĂNEȘTI #0#0(! O!(6" SCINTEIA CIORTEȘTI MOȘNA O #0#0#0 (! /"(! U/!"( (!(!/"U PÂNCEȘTI #06" #0 P!6" IPA(!TELE R U! #0 a 6" i P!#0 U/!("U! U(! o TANSA (!(! DRĂGUȘENI (!/" n U! P!6" (! DOLHEȘTI COZMEȘTI H 6" Î REBRICEA N CODĂIEȘTI C E BACESTI Ș TODIREȘTI Județul VASLUI T Orasul NEGREȘTI MICLEȘTI AVEREȘTI I BOZIENI DUMEȘTI DRĂNCENI ARSURA BOTEȘTI

15 144 Drinking water pumping stations

1.940 9 4.888 15 water wastewater 170.943 188 plants treatment l/s l/s mc water plants tanks

Water Sewer 78 3.429 pipes 1.168 networks re-chlorination stations km km

154 wastewater pumping stations

16 MANAGED SYSTEMS

The supply with drinking and industrial water, including the water abstraction and treatment, in Iasi County, are activities performed for over 460,000 inhabitants and 3,700 economic agents. Total water supply capacities can serve over 1,000,000 inhabitants and more than 4,000 economic agents. ApaVital is constantly making eforts in order to ensure a continuous water supply and in order to provide proper water quality standards.

Systems managed in Iasi County: 75 operational areas (265 localities)

Systems managed in Neamt County: 2 operational areas (7 localities)

17 Water operation activities includes the catchment, the treatment and the distribution of drinking and industrial water flows towards consumers, in the quantities and at the pressures that match their demand. Water operations in the Iaşi City is structured on three directions: • two groundwater collecting systems in Timisesti, together with the associated main pipelines (length 297.5 km); • two river bank intake systems (surface water), the Ţutora facility, on Prut River, together with the corresponding main water pipelines of 74 km; 1. CATCHMENT-TREATMENT • the water Chirita treatment plant; The assembly of installations • the Timisesti water treatment plant; and pipelines needed to draw, • the main pumping stations: Moldova River bank, Pacurari, Aurora, Mijlociu convey and treat all the volume of (for the Timisesti system), Prut, Chirita (for the Prut system) water required by domestic and • the Zvoraneşti wells, the Mirosloveşti wells (groundwater catchment industrial consumers. felds)

Activities in the distribution system: 2. DISTRIBUTION • permanent supply to clients of a water having the demanded and The water main pipeline and adequate parameters (flow, pressure and quality); distribution systems in Iasi city • repairing all failures and malfunctions that occur; and other cities and communes • inspection, check and repairs of hydraulic devices; within the activity area; operation • washing of pipe sections; of network water pumping • replacement of worn-out connections and pipeline sections; stations and maintenance of • verifcation and detection of hidden losses through sewers, district storage capacities. heating stations, telephone networks; • monitoring the water consumption at microsector level

The sewerage system includes a 497 km sewer network with 9 wastewater pumping stations and a mechanical-biological wastewater treatment plant 3. SEWERS that features a designed capacity of 4,200 l/s (treatment of wastewater and meteoric water)

18 THE WATER ROAD

19 Counselors are best Another goal listed in the Counselors defned as assistants of the company’s Policy statement is General Director, to whom they the expanding of operational provide advice and support, in area, either by implementing new general in relation to technical, externally fnanced projects, or economic and biochemical by taking over other water supply issues, but also punctual advice, systems in the county, outside related to the enlargement the county or from Republic of of company’s operating area, Moldova. The Technical Advisor compliance to water, wastewater provides expert advice and ensures and environment standards, communication with ARSACIS and compliance to the system all local and national authorities requirements, issues related to the for this important step. internal managerial control, social Company ApaVital nowadays responsibility or those related to has a system of internal the personal data protection and managerial control that includes anticorruption strategy. self-control mechanisms, Compliance with national and and the implementation of A counsel is judged by results, not European quality standards has measures needed to increase by someone’s intentions been and is a priority for our its efectiveness is based on risk company and the assessment of assessment. The Secretary of Marcus Tullius Cicero the technical, technological and the Implementation Monitoring organizational levels of systems and for the development of the operated by the company, and, as managerial internal control system well, the formulation of proposals is another advisor to the general for studies on improving the director. drinking water and wastewater It is also no coincidence that he is quality are roles assumed by the part of the counselor team with his biochemist counselor. position of person in charge with

20 GENERAL DIRECTORATE

Data Protection, that is, the one who performs a mission Concluding, it is to be noted that beyond the high level focused on internal information, counseling and control. of expertise, the position of counselors is primarily The European Union has made substantive changes in „trustworthy” because the decisions of the General this area through the new EU Personal Data Protection Director are based on their assessments, which must be Regulation, which will become mandatory in the course realistic, correct and complete. of this year.

GENERAL DIRECTORATE

HUMAN CONTROL LAW COUNSELORS RESOURCES DEPARTMENT DEPARTMENT DEPARTMENT

21 The Control Department

The performance of our company would not be possible without the activity of the Control Department, which ensures that things happen in accordance with the provisions of operational procedures approved in SC. Apavital S.A. Iasi. Whether we are talking about fnancial management control, or internal public audit or operational control, there must be certainty that the company’s business is conducted in accordance Below, there is a list with specifc tasks of this department: with applicable standards and legisla- • Coordination of control activities carried out in the company; tion. • Verifying the compliance to internal legal provisions and regulations Related to the existence, the integrity, the preservation and the use of means and resources held at any title by the company and how these are reflected into accounting records; • Verifying the compliance to legal provisions related to the registration in accounting records of all economic and fnancial operations; • Securing the integrity of company’s patrimony; • Fulfllment of specifc performance indicators set by the senior management; • Performing internal audits in order to assess whether the fnancial management and control systems of S.C. Apavital S.A are transparent and comply with the rules of legality, regularity, economy, efciency and efectiveness;

22 GENERAL DIRECTORATE

• Exercising an internal audit on all activities carried out detecting any irregularities or possible damages. within SC. Apavital S.A., in relation to the formation and use of public funds, as well as on the management Based on the above-mentioned aspects, it cans be said of the public patrimony; that target levels of the key performance indicators that • Performing counseling activities related to the were approved by the company’s top management and improving the internal/management control system were assumed by the Control Department employees • Performing of surveys, research and on-feld surveys, were all reached. as it is required by the company’s management; • Drafting of reports in relation to facts found The conclusion is that the activity carried out by the during controls and issuing recommendations and employees of the Control Department provided the implementing measures in order to solve all detected company the certainty that the internal control system non-compliances or malfunctions found; is working properly, and the fact that this department • Identifcation of nonconformities in the company’s is able to provide valuable advice for the improvement current activity and f de ning the measures needed of operations and contributes to value added to the for their correction managerial act.

More than 12,116 hours were allotted by the employees of the Control Department in 2017 for the fulfllment of all these duties, and the activity eventually was materialized as the results below: - 28 financial management control objectives, which generated 33 measures at diferent stages of implementation; - 129 operative control actions (35 planned and 94 unannounced), that generated 48 measures for improvement of activity; - 6 internal audit missions were completed, with 36 proposed and approved recommendations, without

23 Performance appraisal system Starting in 2012, a complex performance appraisal system has Human been implemented at ApaVital, system based mainly on Key Performance Indicators (KPI). Resources In April 2012, ApaVital won the most prestigious competition in the domain of Human Resources Management Competition: “The HR Club Department Gala” - the award for the most valuable performance management project, overtaking by direct competition prestigious companies such as Uni- The total number of employees, in credit Tiriac Bank, Bergenbier or Cargus. ApaVital is the frst state-owned compliance to the company’s personnel company and, at the same time, the frst regional company in Romania, norms, as of 31 december 2017, was honored with this distinction. 1,288 employees, of which: Work productivity MEN Benchmarking analyzes carried out by the Romanian Water Asso- 1063 ciation WOMEN confrms that ApaVital is one of the water companies with the highest 225 levels of labor productivity. The physical labor productivity (billed physical output / average number of employees), in January-November 2017 amounted to 40,500 cubic meters/employee/year. Another important indicator, derived from the Delegation Contract, is the number of persons served per employee, which leads to the conclusion unqualifed – 51 that in 2017 one ApaVital employee served a number of 368 persons qualifed – 895 benefting from the company’s services.

highschool studies – 44

foremen/team leader – 50

with higher education – 189

management staf – 54

directors - 5

24 GENERAL DIRECTORATE

Professional training managers from all company’s levels. The program was ApaVital has its own professional training designed to cover all the critical skills needed to fe ci- center (CFP), commissioned in 2008. The initial invest- ently lead highly performant teams based on the results ment reached a value of 200,000 euro and subsequent of a survey of 100 specialists in the company in 2016. endowments had a value of approximately 33,000 euro, from the company’s own funds. The CFP has an area of Social responsibility more than 300 m2 and a capacity of 150 seats, 5 multi- ApaVital is currently implementing a social res- media and conference rooms. ponsibility management system according to interna- In 2011, ApaVital became the frst provider of tional standard SA 8000: 2014. This standard promotes qualifcation programs for two complex trades, specifc the ethical principles in the process of conducting busi- to water companies: „Water and sewerage installations nesses, both in relation to a company’s employees and a operator” and „Electromechanical for water-sewerage company’s suppliers and subcontractors. pumping stations.” The two trades were added by Apa- Vital in the COR register for trades and professions of Ro- mania (Clasifcarea ocupatiilor din România) and were registered by ApaVital in the qualifcations list “Nomen- clatorul Califcarilor”, thus drafting the corresponding occupational standards. Within the company, 25 internal trainers are authorized. Professional training at ApaVital is based on an Annual Training Plan, which includes 60-70 programs which are conducted with internal and external trainers. The annual number of participants in training programs is about 2,500, with a total of 45,000 hours of training. In 2017, for example, ApaVital conducted a managerial and leadership development program with 60

25 The Occupational Health and Safety (OHAS) activity has taken place on basis of laws in force, the ITM Iaşi Instructions (local work inspectorate) Occupational and instructions issued by the company’s senior management. Thus guiding and thematic programs are prepared and their achievement is Health And reported at each OHAS committee meeting.

Safety Main directions for action: - Methodological guidance of OHAS activity within the company; Apavital invests in people and in - Organizing and conducting training and examination sessions for all secure jobs! electricians, electro-mechanics and automation technicans in view of - Periodical training and medical their authorizing-208 workers; checks performed by a physician - Organizing and conducting, together with the ISCIR co-ordinator, specialized in labor medicine; training and examination sessions for all crane-operators, load binders, - Endowment with individual fremen, etc. - 242 workers (ISCIR = state inspectorate for pressure protection equipment and collective installations and lifting gear); protection equipment; - General training: OHAS + frefghting and prevention; - Endowment with road signaling - General training at hiring stage: 140 persons who were hired during equipment; 2017; - Monitoring of polluters and taking - Verifcation of polluters level at most of work points and implementation the measures needed to their of mitigation or neutralization measures; decreasing - Ensuring the constant supply and distribution of the most fe cient work protection and safety equipment and devices; - Procurement of training materials for all employees, and proper ftting of workplaces with OHAS-related billboards, posters, warning signs and instructions, in compliance to technical requirements and engineering level of machinery

26 GENERAL DIRECTORATE

Work accidents Funds In 2017, no work accidents occurred in ApaVital. For the OHAS activity in 2017 have been allocated funds that reached an amount of worth over 1.2 million lei. Doctor’s office activity General periodical examinations at the doctor’s ofce 1,979 persons General clinical examination at hiring stage 910 persons Medical examination for employees regularly exposed to harmful emissions 561 persons General periodic examination under the Chronic Illness Patients Survey Program 411 persons Treatment in doctor’s ofce 500 persons Influenza vaccination of at-risk individuals 529 persons On-site regular medical check-up at working points (electrocardiogram) 315 persons Spirometry tests 77 persons Audiometry tests 85 persons Blood tests with Spotchem Automatic Analyzer 245 persons Visiotest 13 persons Laboratory tests 1,271 persons

27 I have joined the ApaVital executive team two years ago and I immediately felt that this is my place. I had many things to learn because the water supply sector was something new for me. Fortunately, I have the ability to quickly acquire the knowledge I need and my great luck was to be part of the lucky managers within one of the most long-living and competent teams. I took care to encourage communication and to acknowledge the efforts made during day-to-day work. Activities like financial reporting with verified and complete information on the company’s financial and Managing the budget of such an important company requires the patrimony situation, the compliance making of fnancial decisions that are not always popular, but so necessary with managerial and performance to ensure the economic health of the company. indicators, are all mandatory targets During my professional development, I looked at every stage as that I monitor carefully. a new challenge and, this way, I did not feel my new responsibilities as Obviously, the position of economic something difcult to accomplish. Nowadays I’m in full control of my director implies greater responsibilities professional domain and I often get involved in operational activities, and perhaps some of them are not the trying to convey confdence to people around me. type of duties a person might like to It is clear to me that motivation is diferent from person to person. In fulfill. these two years I have seen people who look at either the material part of the work in the company or they search for the lesser stress level, but also people for whom work means knowledge and new skills on the way to acquire them. I think there must be a balance between these motivational factors and I try to create a working environment conducive to performance in which employees feel at ease. Ec. MARIA SIMIONESCU Economic Director

28 ECONOMIC DIRECTORATE

The Economic Directorate, the company’s fnancial Directorate carries out the drafting and execution of the motor, is headed by the Economic Director and has, income and expenditure budget, drafts the fnancial and according to the personnel flowchart, 4 departments and accounting statements needed for the preparation of all two bureaus, with a total of 66 people in 2017, of which 6 specifc periodical reports, ensures a fair presentation of executives and 60 employees. The fnancial management company’s fnancial situation, fnancial performance and achieves a permanent analysis of the way how funds cash flows, the patrimony situation and stats, and ensures are obtained and used, the aim being to improve the management of activities related to secretarial efciency, the increasing of proft and the maximizing services, the mini-canteen and the administrative activity. the company’s value. Through its activity, the Economic

ECONOMIC DIRECTORATE

ECONOMIC PUBLIC PRIVATE SECRETARIAT FINANCIAL ADMINISTRATIVE ACCOUNTING ANALYSIS & PATRIMONY PROTOCOL DEPARTMENT DEPARTMENT DEPARTMENT TARIFFS DEPARTMENT BUREAU BUREAU

29 Main activities carried out in 2017 by this department: The Financial Department The Financial Department has the role to provide the accurate presentation of the company’s financial situation, financial performance and cash flows

Twelve fscal statements (D100) were drafted and submitted to the great taxpayers authority “Directia generala mari contribuabili”, for an amount of 524,573 lei. Moreover, twelve D112 fscal statements were also drafted and submitted, for an amount of 26,113,770 lei. Plus, thirty D112 amending statements were drafted and submitted.

30 ECONOMIC DIRECTORATE

31 The Administrative Department

The Administrative Department has fulfilled in 2017 all its performance indicators set by the company’s top management, respectively: the average response time related to company’s Below, the activities carried out by the Administrative Department Archives; the performance parameters in 2017: related to internal cleaning activity; • Providing guarding services at 25 ApaVital facilities with observance and the performance parameters of security plans and full compliance to Law 333/2003. As regards the related to external cleaning activity. access of public in the ApaVital headquarters a number of 108,816 persons were verifed and guided in the main premises building and, as regards the “Production Base”, the number reaches the fgure of 14,364 persons ; • The department promptly responded to requests made by I.S.U. (the Emergency Situations Inspectorate) in reference to the involvement in alerting drills and the providing of specifc information; • The maintenance and repair of alarm systems was ensured, in due time, for a total of 46 facilities and buildings,

32 ECONOMIC DIRECTORATE

• Joint actions have been carried out with the Territorial • The company’s Registry Ofce worked for the entire Service for Special Issues (“Serviciul Teritorial pentru duration of work program (including the third day of Probleme Speciale”), as a contribution to the organizing Easter and the day of ApaVital worker ) and managed of the National Symposium of the Territorial Structure to distribute correspondence without delay (to the for Special Issues) and the documents requested by territorial sub-units: Production Base, Tg. Frumos this structure were drafted in due time, i.e. “Technical Department, Pascani Department). A number of sheet with redeemable goods and the list of personnel 62,796 documents were registered and distributed able to supply public interest services”; according to work procedure. • In the purpose of conclusion of contracts for product procurement or services supply the needed information, requests or specifcation were made available; • Inner cleaning has been carried out on a total surface of 884,272 m2; • Monthly S.S.M. and P.S. trainings were carried out with employees (i.e. occupational health and safety, and frefghting and prevention) • The company’s Archives activity was carried out in a normal way. Thus, a number of 214 certifcates were issued in due time (documents requested from outside the company), and a number of 14,665 documents were made available on request to ApaVital departments. A number of 1,364 dossiers were arranged and verifed; • The document binding activity included a number of 1,201 binded dossiers (this including the brochure- type binding, covers writing, tagging of dossiers with attached checklists)

33 The activity of the Accounting Department includes the systematic and chronological registration of documents and operations, the drafting The Accounting of annual fnancial statements, the submittal of the half-yearly statement, the submittal of the monthly statements on the value added tax and Department monthly informative statements on national territory, plus other statistical reporting. Accounting is an activity that provides In 2017 the next activities were performed: the measuring, the evaluation, the knowledge, the management and the control of company’s own assets, liabilities and capital. For this purpose, accounting activity must ensure a chronological and systematic registration of documents and operations, and also the processing, publishing and storing of information related to the financial position, the financial performance and other information related to the department’s activity. All this is mandatory in relation to the company’s internal requirements and also in reference to relationships established with existing and potential investors, financial and commercial creditors, clients, public institutions and others users.

34 ECONOMIC DIRECTORATE

Submittal towards the Control department of answers related to the solving of measures decided ApaVital via control protocols, related to minuses and pluses recorded during accountant verifcations. Plus, the modifying, together with the Public Private Patrimony Department, of the PLO-PPP-001 inventory procedure, and training of personnel in reference to the processing of meter bills, and as regards the inventory procedure

35 Taking over into concession, from Territorial Administrative Units, for administration and operation, a number of 40 systems, extensions The Private and land, related to water and sewerage services, based on hand-over Public protocols lists with return goods. Performing of inventory procedures for patrimonial property (including land), which are not handed-over into concession for Patrimony administration and operation towards S.C. APAVITAL S.A., according to the following notifcations. Department Recording of ownership rights for property belonging to SC In accordance with the provisions APAVITAL S.A., in compliance to Law no.7 / 1996 on cadastral survey and of the ApaVital’s Organizing and estate publicity. Operation Regulation and job files, the personnel within this department, in Submittal to the Accounting Department of documents related to 2017, performed the management of the recording in accounting books of public patrimony assets taken into company’s public private patrimony as administration and operation by S.C. APAVITAL S.A. (40 handover-takeover it follows: protocols and 37 returned goods lists).

Regular checking, together with the Accounting Department, of consistency between technical-operative records and accountant bookkeeping as regards goods received in concession.

Submittal towards the Territorial Administrative Units of reports concerning all patrimony modifcations that occurred during the year, and, as well, the public patrimony status (in terms of quantity and value)

36 ECONOMIC DIRECTORATE

Defning, in due time, the tax rates for the entire Training of Inventory Committees in accordance public and private patrimony of S.C. APAVITAL S.A. and with the Inventory Regulations and the last regulations the submittal of calculated amounts to the Accountant in force and coordinating the inventory procedures for Department for their payment. public and private patrimony of S.C. APAVITAL S.A.

Verifcation of documentation (i.e. Local Council Ensuring the management of APAVITAL public and Decisions, Appendixes, etc.) related to the introduction private patrimony. of return goods into the public domain of Territorial Administrative Units and granting them in concession for Ensuring the tracking of discarded patrimonial administration towards S.C. APAVITAL S.A. property via the special goods discarding Commission after approval of procedures by the company’s Board Tracking and submittal to public local and follow-up of their operation by the Accounting administrations of demanded information and providing Department. access to all necessary information in order to verify the patrimony’s status in accordance with the clauses of the Submittal of data and record information related Delegation Contract and legal provisions in force. to patrimony towards other departments within the company. Involvement in the drafting of additional papers for Delegation Contract when its modifcation is required Collaboration with empowered audit and control or if, with parties’ will, modifcations of some contractual entities and making available all documents required by provisions are agreed. them.

37 The Economic Analysis-Tariffs Bureau the Program for investment, endowments and fnancing As regards year 2017, the activities carried out by sources of the company, for years 2017-2019; the Annual this bureau are detailed as it follows: Program for public procurement (fxed assets) for year 2017; the Revision and Repair Program for 2017; the Program for Substantiation, drafting, approval and execution current repairs, construction and installations for 2017; the of the company’s revenue and expenditure budget, respec- 2017 estimated Financial and Management Indicators; the tively: 2017 Financial Plan and estimates for years 2018-2021; • Substantiation of revenue and expenditure budget, on • Execution of the revenue-expenditure budget: monthly year’s quarters; and yearly drafting, on cost centers. • Ensuring compliance to the format and structure of revenue-expenditure budget as well as substantiating Substantiation, endorsement, adjustment and annexes; modification of prices/tariffs for water and sewerage • Submittal, within deadline provided by law in force, of public services budget draft for 2017 and estimates for years 2018-2019 for Substantiation of prices and tarifs for: basic the approval and / or endorsement by the Administration activities and obtaining of permit ANRSC Council, the Shareholder General Meeting, and local public no. 502728 / 24.03.2017 on price/tarifs changes for public administration authorities; water and sewerage services, in SC APAVITAL SA Iasi, Iasi • Sizing of related expenditure according to the budget county. Starting with 01.07.2017 the price of drinking approved for current year on cost cost centers and water produced, conveyed and distributed throughout the departments; operating area and the tarif for sewerage and wastewater • Substantiation, sizing, and drafting of the rectifed treatment for the entire operating area, for population and revenue-expenditure budget and its submittal for approval for the remainder of clients, were modifed. Within regional towards by the company’s Administration Council; operators, SC Apavital SA is ranked 35th in terms of water- • Submittal, for approval/endorsement, within deadlines sewerage services prices/tarifs. provided by laws in force, of the following documents: Price Approved price 01.07.2017 01.01.2017 Approved VAT VAT VAT SPECIFICATIONS VAT increasing, excluded 9%/ 19% included, excluded, lei/m3 lei/m3 lei/m3 lei/m3 lei/m3 Drinking water produced, conveyed and distributed throughout the entire 3.20 0.20 3.40 0.31 3.71 operational area Industrial water 2.56 0 2.56 0.49 3.05 Drinking water produced and conveyed for redistribution 2.02 0 2.02 0,18 2.20 Sewerage – wastewater treatment for the entire operating area, out of 2.33 0.20 2.53 0.48 3.01 which: 1.10 0.11 1.21 0.23 1.44 • sewers 1.23 0.09 1.32 0.25 1.57 • wastewater treatment 38 ECONOMIC DIRECTORATE

Monitoring of economic-financial payment of obligations, repayment of installments and performance indicators related to company’s interests on loan contract, providing of current liquidity, management turnover speed for client debit items and stocks, labor Drafting of monthly report on the main economic productivity, decreasing of average duration of failures/ and fnancial indicators recorded by S.C. APAVITAL S.A damages repair, etc. IASI and their correlation with achieved performance:

Cumulative budget execution, 12 months 2017 The compliance to the Income and Expense Budget for January - December 2017 was as it follows:

specificationSpecification MU PlannedMU achievedPlanne d Progress rate ac(%)hieved Progress rate Physical productio productionn Mm3Mm 3 50.272 50.47350 ,2100,4072 50,473 100.40 DrinkingDrinking water Mm3Mm 3 24.598 24.85824, 101,06598 24,858 101.06 IndustrialIndustrial waterwater Mm3Mm 3 2.778 3.014 2,7108,5078 3,014 108.50 Sewers/w-waterSewers/w-water treatment treatment Mm 3 Mm3 22.42022,42022 22.107,20 98,60 22,107 98.60 3 WaWastewaterstewater treat treatmentment Mm3Mm 476 494 47103,786 494 103.78 RevenueReve nue lei 161.190.000lei 160.638.350161,190,00 0 99,66 160,638,350 99.66 ExpenditureExpenditure lei 153.427.780lei 145.587.330153,427,78 0 94,89 145,587,330 94.89 Gross profit lei 7.762.220 15.051.020 193,90 Gross profit lei 7,762,220 15,051,020 193.90 Tax on profit lei 1.915.000 2.920.395 152,50 Tax on profit lei 1,915,000 2,920,395 152.50 Net profit lei 5.847.220 12.130.625 207,46 Net profit lei 5,847,220 12,130,625 207.46 Out of which investment funds lei 6.659.576 6.604.017 99,17 Out of which investment funds lei 6,659,576 6,604,017 99.17

By analyzing the economic and fnancial results for mainly from costs related to power, consumables and 2017, compared to those set out in the Revenue and services provided by third parties; Expenditure Budget, the following are to be observed: • Due to cost savings, gross and net proft ratios have • The recorded physical production reached an amount exceeded of their planned values. Based on the of 100.40%, as a result of an increasing in water economic and fnancial data reflected byf nancial production (drinking and industrial); statements and budget executions, the evolution of • Total revenues were achieved in quantum of 99.66%, performance indicators over the period 2013-2017, the revenues from basic production being achieved at according to the Management Delegation Contract, is a rate of 100.52%; as follows: • As regards expenditure savings of 5.11% were recorded, compared to budget, savings generated

39 INDICATOR MU 2013 2014 2015 2016 2017 Current liquidity ratio Rate 3,36 2,71 3,32 3,62 3,38 Turnover speed, client debit items Days 63 59 54 50 53 Operational cost/1000 lei operational revenue lei 948 897 886 888 890 Inventory turnover Days 14 15 13 18 16 Physical labor production m3/empl/yr 42.343 38.814 39.709 39.597 39.994

Average failure repair time Days3 – pagina 40 1,09 1,03 1,12 1,05 1,03

Proft rate before depreciation and royalty %(DIRECTIA ECONOMICA15,85 = ECONOMIC20,98 DIRECTORATE22,03) 23,69 23,97 PAGINA 40 GRAFICE Operational costs for la 1000 lei operational revenue: ≤ 980lei (Operational costs x 1000 / Served population/employee no. pers. 345 349 357 359 358 1 – pagina 40 operational revenue) CurrentDecreasingPAGINA Liquidity> 40rate, 1GRAFICE (Current nonrevenue Assets / Cwaterurrent Liabilities) %During the analyzed46 period, this indicator42 has slightly41 increased in year30 2017. in the same29 time Fro m the analysis of the indicator, on period 2013-2017, it was noticed that the company had operational costs and operational revenue increases too. On the whole, however, a decrease of the1 – ability pagina to 40cover all short-term debts, by capitalizing their current assets, within analyzed this indicator has been recorded since 2013, that is decrease of operational costs due mainly to period.Current Liquidity> 1 (Current Assets / Current Liabilities) the decrease of costs related to power, raw water and released compounds. The power GCurrentFroraficm the 1 pagina analysis Liquidity> 40 of the indicator, 1 (Current on period 2013Assets-2017, / it wasCurrent noticed thatLiabilities) the company had Operationalexpenditure has decreased costs due for to the1000 liberalization lei operational of energy market andrevenue: the refurbishment ≤ 980lei of the ability to cover all short-term debts, by capitalizing their current assets, within analyzed water and wastewater treatment plants, while costs with raw water decreased as a result of period. CURRENT LIQUIDITY (Operationalreduction in water losses costs. x 1000 / operational revenue) Grafic 1 pagina 40 From the analysis of GRAFIC 3 PAGINA 40 CURRENT LIQUIDITY the indicator, on period OPERATIONAL COSTS FOR 1000 LEI During the analyzed 3.62 3.36 3.32 3.38 OPERATIONAL REVENUE (LEI) 2013-2017, it was noticed period, this indicator 2.71 3.62 that the company had has slightly increased in 3.36 3.32 3.38 948

the ability to cover all year 2017. in the same 2.71

short-term debts, by time operational costs

897 capitalizing their current 888 890 and operational revenue 886

2013 2014 2015 2016 2017 assets, within analyzed increases too. On the

period. whole, however, a 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2 - pagina 40 decrease of this indicator

Turnover speed, for client debit items = 70 days (Average client balance x no. days / has been recorded since Turnover) 2 - pagina 40 From this graph, it results for 2017 an increasing of number of days in which clients’ debts are TurnoverTurnover speed, speed, for client for debit client items = 70debit days (Average items client < 70 balance days x no (Average. days / 2013, that is decrease of operational costs due mainly to the cashed, the figure reaching the value to 53 days, and the cashing rate being 95.26% Turnover) GRAFICclient 2balance PAGINA 40 x no. days / Turnover) decrease of costs related to power, raw water and released From this graph, it results for 2017 an increasing of number of days in which clients’ debts are cashed, the figure reaching the value to 53 days, and the Fromcashing thisrate being graph, 95.26% it compounds. The power expenditure has decreased due to the TURNOVER SPEED, FOR GRAFIC 2 PAGINA 40 results for 2017 an liberalization of energy market and the refurbishment of water CLIENT DEBIT ITEMS (DAYS)

TURNOVER SPEED, FOR increasing of number and wastewater treatment plants, while costs with raw water

CLIENT DEBIT ITEMS (DAYS) of days in which clients’ decreased as a result of reduction in water losses.

63 59 debts are cashed, the 54 53 50 f gure reaching the

63 59 54 50 53 value to 53 days, and

the cashing rate being

2013 2014 2015 2016 2017 95.26%

2013 2014 2015 2016 2017

6 – pagina 41 Average time for failure/damage repair (days) = 3 days (No. of days needed for failure repair/ No. of failures) The majority of failures/damages (97%) are solved within 24 hours, the other failures/damages that exceed this dead-line occurring in the days when a large number of failures/damages occur at the same time or when the failure/damage is more complex and hard to repair. There is an improvement in this indicator since 2016. Therefore in 2017, this indicator being clearly improved as a result of a decreasing in the number of failures/damagea by 34%, compared to 2015. GRAFIC 6 - PAGINA 41

AVERAGE DURATION OF FAILURE/DAMAGE REPAIRS (DAYS)

1.12 1.09

1.05 1.03 1.03

pagina 41 GRAFICE

2013 2014 2015 2016 2017 (economic directorate) pagina 41 GRAFICE 4 – PAGINA 41 (economicInventory turnoverdirectorate) : = 30 days (Inventory x No. of Days / Turnover) The increase of this indicator was caused in 2016 by the purchase, at the end of 2016, of 7 – pagina 41 4materials – PAGINA needed 41 for investments planned for the first half of 2017. In 2017, this indicator Profit rate before depreciation and royalty (%) Inventoryreturned to turnover values closer : = 30 to days those (Inventory recorded inx No.period of Days2013 -/ Turnover)2015 ECONOMICThe company’s netDIRECTORATE profit ratio had a clear growing trend, thus indicating an increase in the TheGRAFIC increase 4 - PAGINAof this indicator 41 was caused in 2016 by the purchase, at the end of 2016, of profitability of water sector. This indicator illustrates the level of financial available resources of materials needed for investments planned for the first half of 2017. In 2017, this indicator the company for loans repayment and for implementing investments financed from the returned to values closer to those recorded in period 2013 - 2015 INVENTORY TURNOVER (DAYS) company’s own resources. GRAFICInventory 4 - PAGINA turnover 41 : <30 days (Inventory x No. of Days / Turnover) GRAFICProfit 7 - PArateGINA 41before depreciation and royalty (%)

18 INVENTORY TURNOVER (DAYS) The increase of this indicator The company’s net proft 16 14 15 PROFIT RATE BEFORE 13 was caused in 2016 by the ratio had a clear growing 18 DEPRECIATION AND 16 purchase, at the end of 2016, trend, thus indicating an 15 14 ROYALTY (%) 13 of materials needed for increase in the proftability

23.97 investments planned for the 20.98 22.03 23.69 of water sector. This indicator 8 – pagina15.85 41 2013 2014 2015 2016 2017 illustrates the level of f rst half of 2017. In 2017, this Served population, per employee (no. of persons))

The increase in this indicator, during analyzed period, is due to the expansion of company’s indicator returned to values fnancial available resources operating2013 area.2014 2015 2016 2017 5 – PAGINA2013 412014 2015 2016 2017 of the company for loans Physical labor productivity = 33,000 m3/employee/yearcloser to those recorded in GRAFIC 8 - PAGINA 41

(Total physical production/Average number of personnel cumulated on one year) repayment and for implementing investments fnanced from period 2013 - 2015 5The – PAGINA increasing 41 of operating area in 2014 with the inclusion of Paşcani Town and neighboring 8 – paginaSERVED 41 POPULATION, PER EMPLOYEE 3 the company’s own resources. Physicallocalities, labor and, asproductivity well, the extension = 33,000 to m rural/employee/ areas andyear the commissioning of several Served population, (NO.per employee OF PERSONS) (no. of persons)) (Totalwastewater physical treatment production/ plants,Average led to number an increase of personnel in the number cumulated of personnel on one year), which negatively The increase in this indicator, during analyzed period, is due to the expansion of company’s ThePhysicalaffected increasing the labor oflabor operating productivity productivity area factor. in 2014 In 2017 with thethis inclusionindicator> 33,000 ofshows Paşcani a slightm3/employee/year Town increase, and neighboring mainly due operating area. localities,to the positive and, asevolution well, the of extension physical production. to rural areas and the commissioning of several 359 (Total physical production/Average number of personnel GRAFIC Served 8 - PAGINA population, 41 357 per employee358 (no. of persons)) wastewaterGRAFIC 5 -treatment PAGINA plants,41 led to an increase in the number of personnel, which negatively affected the labor productivity factor. In 2017 this indicator shows a slight increase, mainly due 349 The increase in this indicator, cumulated on one year) SERVED345 POPULATION, PER EMPLOYEE to the positive PHYSICALevolution of physical LABOR production. (NO. OF PERSONS) during analyzed period, is GRAFIC 5 - PAGINA 41 The increasing of operating PRODUCTIVITY

3 area in 2014 with the 2013 2014 2015 2016 2017 due to the expansion of PHYSICAL LABOR 359 (M /EMPLOYEE/YEAR) 357 358 company’s operating area. PRODUCTIVITY inclusion of Paşcani Town and 349 42,343 3 neighboring localities, and, 345 (M /EMPLOYEE/YEAR) 9 - pagina 41 39,709 39,597 39,994 38,814 as well, the extension to rural Decreasing of amount of non-revenue water (%)

42,343 This2013 indicator 2014diminished2015 as a result2016 of the implementation2017 of the SOP Environment project that areas and the commissioning 2013 2014 2015 2016 2017 had as scope the extension and the rehabilitation of water distribution infrastructure throughout 39,709 39,597 39,994 the entire county. 38,814 of several wastewater

6 – pagina 41 GRAFIC 9 - PAGINA 41 9 - pagina 41 Averagetreatment2013 time for2014 failureplants,/damage2015 led repair2016 to an(days) 2017increase = 3 days in the number of personnel, Decreasing of amount of non-revenue water (%) (No. of days needed for failure repair/ No. of failures) which negatively fa ected the labor productivity factor. In 2017 This indicator diminished as a result of the implementation of the SOP Environment project that The majority of failures/damages (97%) are solved within 24 hours, the other failures/damages DECREASING OF AMOUNT Decreasing of amount of had as scope the extension and the rehabilitation of water distribution infrastructure throughout that exceed this dead-line occurring in the days when a large number of failures/damages occur this indicator shows a slight increase, mainly due to the positive the entire county. at the same time or when the failure/damage is more complex and hard to repair. There is an OF NON-REVENUE WATER non-revenue water (%) GRAFIC 9 - PAGINA 41 improvemenevolutiont in this ofindicator physical since 2016. production. Therefore in 2017, this indicator being clearly This indicator diminished as a improved as a result of a decreasing in the number of failures/damagea by 34%, compared to (%)

2015. result of the implementation GRAFIC 6 - PAGINA 41 DECREASING OF AMOUNT Average time for failure/damage repair (days) < 3 days 46 42 41 of the SOP Environment OF NON-REVENUE WATER30 29 (No. of days needed for failure AVERAGE DURATION project that had as scope (%) OF FAILURE/DAMAGE REPAIRS repair/ No. of failures) 2013 2014 2015 2016 2017 the extension and the (DAYS) The majority of failures/ 46 42 41 rehabilitation of water 30 29 1.12 damages (97%) are solved 1.09 distribution infrastructure throughout the entire county.

1.05 within 24 hours, the other *************************************************************************************************** 1.03 1.03 2013 2014 2015 2016 2017

failures/damages that exceed In conclusion,In the conclusion,departments and bureaus the departments within the Economic and Directorate bureaus managed within to the this dead-line occurring in the perform in a way that all their managerial and business Indicators proposed for 2017 were 2013 2014 2015 2016 2017 Economic Directorate managed to perform in a way that all their days when a large number of successfully reached. We can therefore say that each employee within the directorate was ***************************************************************************************************activelymanagerial involved in andactivities business presented above, Indicators thus participating proposed to the fulfillment for 2017 of the were suc- failures/damages occur at the same time or when the failure/ company’s mission and confirming what once Pablo Picasso said: "Involvement is the In fundamentalcessfullyconclusion, the key reached. departments to success . "andWe bureaus can therefore within the Economic say Directoratethat each managed employee to within 7damage – pagina 41 is more complex and hard to repair. There is an performthe indirectorate a way that all their was managerial actively and b usinessinvolved Indicators in proposedactivities for 2017 werepresented above, Profitimprovement rate before depreciation in this and royaltyindicator (%) since 2016. Therefore in 2017, successfully reached. We can therefore say that each employee within the directorate was The company’s net profit ratio had a clear growing trend, thus indicating an increase in the activelythus involved participating in activities presented to theabove, fulfillment thus participating ofto the the fulfillment company’s of the mission and profitabilitythis indicator of water sector. being This indicator clearly illustrates improved the level of financialas a result available resourcesof a decreasing of company’s mission and confirming what once Pablo Picasso said: "Involvement is the the company for loans repayment and for implementing investments financed from the fundamentalconfirming key to success what." once Pablo Picasso said: „Involvement is the fun- company’sin the ownnumber resources. of failures/damagea by 34%, compared to 2015. GRAFIC 7 - PAGINA 41 damental key to success.”

PROFIT RATE BEFORE

DEPRECIATION AND 41

ROYALTY (%)

23.97 20.98 22.03 23.69 15.85

2013 2014 2015 2016 2017

I consider that ApaVital is an example of professional activity. The level of professional development, the flexible organization and the technical endowment have always been the strengths of ApaVital since its transformation from the previous “regia autonoma” structure.

Ambition has always been a plus, and where there is passion, determination and success certainly shall come. “There are more people who give up than those who fail,” said Henry Ford. I am thinking of this quote whenever I try to fnd a solution to a problem that does not apply the known algorithms, in order to encourage myself that there are always solutions, and only a change of perspective brings more understanding. Even if it were possible, I would not change anything about the beginnings of ApaVital. Every stage has had its importance and we are satisfed with what we managed to do in order to get where we are nowadays.

42 TECHNICAL DIRECTORATE

Only in 2017 we have implemented investments that evolution, the recognition and responsibility being the reached a value of 16 million lei from own funds, which main motivational elements in this formula. Inspiration, adds to the important external funds obtained for regional with its entire inventory of conditioning factors, played projects focused on the development of the water and an important role at the beginning of my career. Now it’s sewer infrastructure. completed with over 25 years of professional experience So it is about lots of money that were used with high and today I am mastering my strength at a degree that responsibility. The feedback received from accreditation allows me to try to inspire others around me. entities fully proves the recognition of quality in everything we do. Ph. D. Eng. MIHAIL DORUS I am and I have always been motivated by people Technical Director around me: colleagues, family, competition, my need for President of the SC ApaVital SA Management Board

TECHNICAL DIRECTORATE

TECHNICA AUTO- ELECTRO- INVESTMENT- TECHNICAL QUALITY AND PUBLIC DESIGN IT&C MECHANICAL MECHANICAL DEVELOPMENT DEPARTMENT DEPARTMENT WORKS DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT

43 Technical Department

The Technical Department is subordinated to the Technical Directorate, being supervised by a Head of Department which controls the following sectors - The Permits/Gis Bureau, with 18 The activity of the Permits/Gis Bureau is structured into two employees (15 engineer positions and categories as it follows: 3 technician positions). - issuing water and sewer connection permits and issuing building/site - The Metrology Laboratory, which permits consists of 2 engineers with the - creating and adjusting the GIS/NETSET databases following specializations: mechanical, In 2017 there were issued 3,831 building/site permits and 9,217 water- hydro-technical constructions and 2 sewer connection permits. positions of metrological verifer - The Technical Department, with The key performance indicator targets have been reached in 2017, 5 engineers with specializations: namely: mechanical, hydro-technical - Number of building/site permits issued – 2,030 constructions, electromechanical - Number of water/sewer connection permits issued – 4,350

Non-compliances were not recorded in the specifc work procedures.

The creation and the updating of the GIS-NetSet database is focused on the entering on digital support of newly created water and sewerage public systems (taken over for operation by S.C. APAVITAL S.A.) and also the updating of information related to currently managed and operated public water and sewerage systems.

In 2017 a number of 135.8 km of water and sewerage network was 44 TECHNICAL DIRECTORATE entered and updated, 2,600 water/sewerage connections were entered and 2,830 water connections were collected and identifed. Also, in 2017, a number of 1,823 work progress reports and bills of quantities were drawn up.

ACTIVITY OF METROLOGY LABORATORY

Goal ACHIEVED ITEMS, 2017

water meters metrologically verifed, 2017, TOTAL 12,115 pcs

water meters metrologically verifed, 2017, PASSED 10,118 pcs

drafting of documents needed for the extension of metrology laboratory extension of permit no. 045-26, re- functioning permit, re-assessment with DRML Bacau assessment in period 21-22 aug. 2017

Permit no. BC-107-17 drafting of documents needed for the extension of metrology laboratory Permit no. BC-108-17 functioning permit, re-assessment with DRML Bacau Permit no. BC-109-17 Permit no. BC-110-17 Calibration certifcate for: drafting of documents needed for permits of metrology personnel, with 1. STAP-50 installation training and authorizing by DRML Bacau, period 27-28 febr. 2017 2. STAP 200 installation 3. SVG 72.1.1.2.2. installation

calibration of metrology laboratory equipment, performing of intermediary verifcations and providing maintenance Activity of the Technical Department out of which 22 works were completed, and 6 remained Production activities in execution in order to be to completed in 2018. The A number of 28 contracts have been signed and total value of works in 2017 reached an amount of executed, contracts related to repair works on buildings, 2,417,832.91 lei.

45 - Monitoring natural gas supply contracts. - Preparaing the reports requested by the A.N.R.E. authority (including the former “Agentia Româna de Conservare a Energiei” (Romanian Energy Preservation Agency).

Machinery/equipment maintenance activity - Observance of the re-hauling and repair plan and verifcation of works that are to be carried out by work teams by confronting them with corresponding bill sof quantities - Renewal of service contracts and their permanent This activity includes: the conclusion of contracts, the monitoring for the following domains: monitoring and feld verifcation of executed works, • Monitoring of dynamic equipment and their diagnosing; invoice settlement on basis of work progress reports. • Servicing, maintenance and repairs of motor pumps Survey and implementing the contract covering the and machinery driven by thermal and electric motors. reinstatement of roads after interventions carried out • Preparing the time use graphs and plans for company’s on water–sewer network: asphalting works were carried pumping systems out, on a total area of 4,707.95 m2 Metrology and ISCIR (Inspectorate for pressure Activities in energy sector installations and lifting gear) - Ensuring a correlation between power consumption -Training and examination (by an ISCIR authorized person) and allotted amounts in order to avoid to be charged with of a total of 249 workers under the ISCIR incidence: 181 penalties by the E.ON Energie Romania power company load binders, 24 crane operators (Class A and E), 19 crane - Maintaining the electricity consumption within operators, 5 auto elevator operators, 3 auto platforms forecasted load graphs at the great consumers of operators, 15 C class fremen, 2 forklift operators ApaVital, where eligible consumers contracts were - Obtaining of ISCIR re-authorizations (technical concluded verifcations due for re-authorizations) through the RSVTI - Centralization of energy data for small consumers that authorized person at S.C. APAVITAL S.A .: are to be taken over by ApaVital, obtaining of power - Lifting equipment - 100 pcs. permits and concluding power supply contracts - Pressure installations - 73 pcs. - Monitoring of thermal energy supply contracts. - Heating boilers - 31 pcs.

46 TECHNICAL DIRECTORATE

- Safety valves - 108 pcs. Procurement of goods (Fixed assets): - Annual metrological checks at 78 weighing devices at - Continuous updating of the Equipment Procurement List company’s work points: water chlorination stations, (included in the Annual Procurement Plan), depending warehouses, depots, wastewater treatment plants. on approved supplements - Preparation of tender documents and specifcation Management and monitoring, in electronic for procurement procedures related to machinery, format, of technical and quality indicators installations, other equipment. During year 2017, a number of 15 monitoring - Drawing up of value estimates for the procurement of operations were conducted, respectively for water- machinery, installations, other equipment. sewerage systems of communes: Ciurea, Motca, Letcani, - Conducting the technical-economic analysis ofofers Tansa, Todireşti, Ţutora, Ipatele, Ţibăneşti, Cotnari, Butea, regarding machinery, installations, other equipment. Vladeni, Dagata, Moşna, Halauceşti and for the Town of - Drafting answers to clarifcation requests, and, as well, Paşcani. to any legal contests submitted by bidders.

Research activity on applicability and development of new tools, methods and optimization techniques for conducted processes: - 71 operational working procedures were updated, and the same for 17 working instructions, 166 other documents (forms, operating authorizations, system delibery hand over protocols, etc.). - Were identifed and updated on map, with corresponding data, a number of 2,431 consumers belonging to Iasi, Paşcani, Holboca and Tomeşti.

47 The activities related to the logistics-transportation domain include the following: The Auto- . Ensuring the availability of all vehicles needed for a rhythmic supply with raw materials, materials and equipment at company’s work sites Mechanical and locations, both for completion of investment works, and, as well, for activities of repairs on damages/failures; . Operation of company’s vehicle fleet, subject to the observance of Department technical, economic and legal provisions in force; . Systematically checking of how vehicles and machinery are used/ operated; . Appropriate and efcient vehicle loading and ensuring a rational and efcient use of vehicles and workforce; . Defning optimal transportation routes for company’s vehicles, with compliance to rationality criteria and ensuring minimal fuel and time consumption; . Obtaining all documents and permits needed for the operation of company’s vehicle fleet; . Collaboration with the Romanian Auto Registry, the Romanian Road Authority, and, as well, with all other entities authorized to ensure Duties assigned to the Auto- the legality of vehicle operation and registration; Mechanical department are crucial for . Reporting the failures/damages that occur in vehicles included in the ApaVital global optimal functioning, park and adopting all necessary measures for their repair in due time; and are a condition that influence the . Active participation in the investigationf oftra c accidents, in co- operativeness with which intervention operation with the Trafc Police; teams move to locations where works . Maintaining the vehicle fleet in a proper operational shape (external must be completed. appearance and technical functionality);

48 TECHNICAL DIRECTORATE

. Maintaining contractual relations with authorized . Team 3-operation: 96 vehicles, 28 employees – service firms and involvement in negotiations carried operates vehicles such as automobiles, special utility out for the defining of contract clauses vehicles, tipper-trucks . Team 4-vehicle and machinery repair: 15 employees The activity of the department is carried out (carries out maintenance and repair activities on according to legal provisions, namely: vehicles and special machinery used in infrastructure . Goods transportation services: Certificate for reinstatement works and interventions on water- transportation on own’s account, CP series no. sewerage networks (compacting heads, asphalt and 0030468 concrete cutters, motor driven pumps, motor-driven . Maintenance and repair of vehicles: Technical electric generators, etc.) Authorization no. 2292/19.11.2004

The structure of the department, transportation means and personnel, is the following: . A. Vehicles: total 240 units . B. Personnel: total 101 employees . Distribution of vehicles and personnel in the department of the section is the following: . Technical Department: 4 employees . Team 1-operation: 97 vehicles, 11 employees - operates vehicles, respectively automobiles and special utility vehicles . Team 2-operation: 47 vehicles, 43 employees - operates special utility vehicles: towing trucks, truck- mounted cranes, truck-mounted sewer cleaners, truck-mounted cleaners, bulldozers, backhoe loaders. tracked excavators.

49 The Quality Department The Quality Department The Quality Ensures the maintenance the valability of the Class 1 Operating License no. 3572 / 01.02.2016 issued by the National Regulatory Authority for Public Utility Services - Autoritatea Nationala de Reglementare Department pentru Serviciile Comunitare de Utilitati Publice ANRSC (www.anrsc. ro) for water/sewerage/wastewater treatment services / water treatment services in Iasi and Neamt Counties. In 2017 the necessary documents were submitted and a number of 3 ANRSC licensing orders have been obtained (i.e. no.93/12.04.2017, no. 299 / 29.08.2017 and 436 / 18.12.2017). Ensures the compliance to requirements of the ISO international standards, SRAC certifed (www.srac.ro) • SR EN ISO 9001: 2015 Quality management systems • SR EN ISO 14001: 2015 Environmental Management Systems • SR OHSAS 18001: 2007 Occupational Health and Safety Management Systems • SR ISO / CEI 27001: 2013 Information technology. Security techniques. The Quality Department manages the Information security management systems Regulatory Committee, the Process • SR ISO / CEI 22000: 2005 Food safety management systems Currently the SA 8000: 2008 standard is under implementation Laboratories, the Drinking Water Labo- (Social Accountability 8000), which aims to improve working conditions ratory and the Wastewater Laboratory. around the world. Ensures the authorization of water and sewerage systems managed by ApaVital.

50 TECHNICAL DIRECTORATE

MANAGEMENT OF CONTRACTS RELATED TO RAW/ • There is no annual contracted volume – only the DRINKING WATER AND TREATED WASTEWATERS volume actually abstracted is paid: In 2017, from the Libertatea Tank source (NOVA RAW WATER APASERV) a volume of 95,441 thousand m3 was • A.B.A. Siret distributed for which an amount of 340,169.64 lei was • Contracted volume - 43,293.400 thousand m3 , this paid. being a value of 2,427,068.44 lei . TREATED WASTEWATER • Abstracted volume - 34,708.440 thousand m3 , this • In 2017 the ApaVital WWTPs released a total of being a value of 1,966,658.59 lei 47,290.080 thousand m3 for which an amount • E.C. Stanca-Costesti of 1,483,700.86 lei was paid out of which the Iasi • Contracted volume - 12,140.000 thousand m3 , this WWTP released a total of 38,989.926 thousand being a value of 607,000.00 lei m3 from Biological Stage), this reaching a value of • Abstracted volume - 16,022.926 thousand cubic m3 , 1,171,596.31 lei and 1,718.504 m3 from Mechanical this being a value of 801,146.30 lei Stage, this reaching a value of 76,876.82 lei; • A.B.A. Prut-Barlad • Contracted value for Iasi WWTP in 2017 was • Contracted volume - 3,135.7 thousand cubic m3, this 1,254,535.53 lei for a volume of 40,996.800 thousand being a value of 158,389.60 lei m3; • Abstracted volume - 2,572.487 thousand m3 , his • The volume of treated wastewater released from Iasi being a value of 129,451.21 lei WWTP has been steadily declining in recent years, • SC NOVA APASERV SA Botosani recording a variation as shown in table below:

Indicator 2012 2013 2014 2015 2016 2017

Volume (thou m3) 73,071.951 70,651.177 48,689.464 43,621.513 38,293.025 40,708.430

Value (lei) 1,886,071.98 210,834.52 2,069,444.30 1,656,250.84 1,420,396.06 1,248,473.13

51 The Process Laboratories parameters The Process Laboratories controlled by the Quality . Testing the treated wastewater in the Tibanesti Department are conducting tests on water in order to wastewater treatment plant: 7 parameters monitor the quality of drinking water in water plants and . Testing of drinking water in the Vladeni water supply networks, and, as well the quality of wastewaters treatment plant: 12 parameters and sludge in wastewater treatment plants. . Testing of treated wastewater in the Vladeni The water processes are monitored via these laboratories wastewater treatment plant: 5 parameters within water plants and wastewater treatment plants that . Testing of drinking water in Belcesti water treatment operate inside operational areas, as it shown below: plant, 16 parameters, and 8 parameters tested for treated . Wastewater Laboratory - Dancu WWTP- - tests wastewater in the Belcesti wastewater treatment plant conducted on 60 parameters out of which 16 are . The town of Podu Iloaiei - testing of treated wastewater RENAR accredited in Podu Iloaiei wastewater treatment plant, 10 parameters, . Drinking water testing in the Gorban water plant: 12 and 12 parameters for drinking water parameters Ensures the monitoring of economic agents that release . Testing of treated wastewater in the Raducaneni industrial wastewater into the public sewer systems wastewater treatment plant: 7 parameters of localities, in order to preserve an efcient operation of . Testing water the Tibanesti water treatment plant: 13 wastewater treatment plants.

Economic agents, monitored and fined in 2017 (additional costs)

Fines value Additional expenditure WARNINGS Fining protocols Total value (lei) 2017 (lei) 2017 (lei)

121 75 68,801.92 407,855.15 476,657.07

52 TECHNICAL DIRECTORATE

The Drinking Water Laboratory The laboratory has implemented a quality management system according to the European standard ISO 17025: 2005 “General Requirements for competence of testing and calibration laboratories “and since 2006 is registered with the Ministry of Health in the Registry for drinking water laboratories, Certifcate no. 399/27.07.2016, for control monitoring and sampling, in accordance with Law no. 458/2002, on the drinking water quality (republished). The laboratory performs specifc tests on drinking water in all ApaVital operational areas and includes a personnel All data regarding volumes of wastewater and of 12 employees, plus the head of the laboratory, the septic pits emptying in Iaşi County were centralized – thus working schedule being day 8 hours/day, and 5 days / the fgure for 2017 was 18,133 m3. week. Wastewater and residues collected from septic pits, via The laboratory developed and implemented contracts signed with eight companies, reached a volume methods of physic-chemical and biological tests for a of 10,734.24 m3. The situation of companies that have number of 22 drinking water parameters (6 microbiological signed contracts with ApaVital and did not perform parameters and 16 chemical parameters). The total septic pit emptying operations (plus the discharging number of samples taken and the total number of tests of wastewater in treatment plants) is to be notifed conducted in the laboratory in 2017 is shown below. towards environmental authorities (APM Iaşi, GNM Iaşi, ANAR–ABA Prut - Barlad). Moreover, notifcations were The drinking water laboratory: Total samples and total also made as regards the continuation/termination of number of performed tests, 2017 existing contracts. The attachment shows the situation of contracts concluded by ApaVital with companies in this sector and the volumes of wastewater.

No. samples 2017 No. tests 2017

DWL 2017 Chemistry Bacteriology Total Chemistry Bacteriology Total

Total 6,115 2,186 8,301 41,692 12,374 54,066

53 laboratory, calculation of measurement uncertainty for each parameter, internal control (control and duplicate samples), external control (laboratory is involved in international PT benchmarking procedures) and re- registration with the Health Ministry. Such tests reached a number of 3640 tests.

Costs value 2017 • Internal - 889,772 lei • External (third parties) – 4,752 lei

Work schedule and testing frequency • program: 8 hours/40 hours per week; • tests frequency averaged a number of 216 tests / day Total number of tests performed for water (fgure dependa on the Control monitoring program, plants and water networks according to the Monitoring approved by DSP Iasi and DSP Neamt (Iasi and Neamt Program 2017: 42,380 tests out of which: Compliant: sanitary authorities), the requests received from 41,129, Non-compliant: Microbiology - 319, Physico- internal/external clients and notifcations/complaints chemical - 932, Compliance rate achieved: 97% related to water quality received from the DSP and consumers) Number of raw water tests/systems in process of taking-over and extension/industrial waters etc: Performance results (inter-laboratories benchmarking): • Raw water: 1707 tests / 133 samples The Drinking Water Laboratory was involved in 2017 • - Systems in process of taking over and extension: in an inter-laboratory benchmarking process named 1298 tests / 69 samples „AQUACHECK Proficiency Scheme”, rounds 533 / • - Industrial water, flter water, clarifer waters: 746 13.10.2017, 534 / 27.10.2017, 537 / 21.12.2017 and the tests/242 samples „QWAS - Quality in Water Analysis PT Scheme” action, • - Losses and infltrations: 466 tests / 59 samples in rounds 257 and 259, organized by LGC Standards, • - DSP notifcations (sanitary inspectorate): 1079 tests UK. The inter-laboratory benchmarking is intended to / 156 samples test the performance of the participating laboratories, • - Client notifcations: 2475 tests according to requirement 5.9, ensuring the tests quality, • - External clients: 275 tests in comparison with laboratory standards, namely SR EN CEI / ISO 17025/2005. Certain tests were carried out for other various purposes: validation of test methods used in

54 TECHNICAL DIRECTORATE

The Water Laboratory: Results obtained after the inter-laboratory benchmarking procedure

Tester parameter Used method MU z score Qualified as Free residual chlorine SR EN ISO 7393-2/2002 mg/L -0.60 Satisfying

- Nitrites SR EN 26777/C91:2006 mg NO2 /L 0.00 Satisfying

+ Ammonia SR ISO 7150-1:2001 mg NH4 /L 0.00 Satisfying pH (25 OC) SR ISO 10523-2012 - - 0.10 Satisfying

Electric Conductivity (20 OC) SR EN 27888-1997 µS/cm - 0.02 Satisfying

Permanganate index SR EN ISO 8467/2001 mg O2/L 0.05 Satisfying

- Nitrates SR ISO7890-3/2000 mg NO3 /L -0.61 Satisfying Chloride SR ISO 9297:2001 mg/L -0.44 Satisfying Total hardness SR ISO 6059:2008 mg Ca/L 0.33 Satisfying Calcium SR ISO 6059:2009 Mg Ca/L 0.02 Satisfying Magnesium SR ISO 6059:2009 Mg Mg/L 1.08 Satisfying MF average m-CP CFU/100 mL - 0.52 Satisfying Clostridium perfringens MF average TSC CFU/100 mL - 0.23 Satisfying

Coliform bacteria Colilert 18 CFU/100 mL 0.47 Satisfying MF average CCA CFU/100 mL 0.44 Satisfying Colilert 18 CFU/100 mL 0.46 Satisfying Escherichia coli MF average CCA CFU/100 mL 0.69 Satisfying Enterococci MF-Slanetz Bartley CFU/100 mL 0.17 Satisfying Enterolert DW CFU/100 mL -0.33 Satisfying cultivable micro-organisms at 22 OC Pour plate tech. – PCA CFU/100 mL 0.07 Satisfying cultivable micro-organisms at 37 OC Pour plate tech. – PCA CFU/100 mL 0.15 Satisfying

55 The Wastewater Laboratory After the re-organization of the laboratory, in 2017 new General presentation work points were created, in the towns of Pascani, Târgu The laboratory has implemented a quality management Frumos and Harlau. Besides testing wastewater, the system according to the European standard ISO 17025: Târgu Frumos and Harlau laboratories are now testing 2005 “General requirements for the competence of trials the drinking water quality within water treatment plants and calibration laboratories” and since 2012 is accredited (for process and network management). The laboratory by to the ROMANIAN ACREDITATION ASSOCIATION IN includes specialized technical personnel. Also, the ROMANIA -ASOCIATIA DE ACREDITARE DIN ROMANIA - laboratory features the appropriate endowment with RENAR (Accreditation Certifcate LI 963/2016, valid until laboratory installations and equipment for the performing 2020) for conducting specifc tests. of current analytical tests.

The implemented management system covers all activities carried out in the laboratory premises, which are located Description of laboratory activities inside the Iasi wastewater treatment plant. The laboratory The laboratory activity and program include the activities is testing the raw water (surface and underground described below: water sources) before treatment processes, the sewer - requests from external and internal clients; wastewater and the fnal treated wastewaters from all - conducting monitoring programs on control sections wastewater treatment plants operated by ApaVital. input, output, wastewater treatment stages ) for all wastewater treatment plants operated by APAVITAL; The laboratory has developed and implemented physico- - conducting monitoring program on control sections chemical and biological test methods for a number of (collectors), managed by the Sewerage Department; 60 wastewater parameters (surface, underground and - conducting monitoring program for the main industrial sludge), and, out of these, 16 test methods are covered agents, that are potential polluting sources, which are by a RENAR accreditation (Www.renar.ro). Moreover, in releasing industrial wastewaters in the sewers of Iasi City, November 2017, the RENAR - the Romanian Accreditation and the towns of Targu frumos, Podu Iloaiei and Pascani. Association assessed other test methods in order to - conducting monitoring programs on control sections expand the accredited testing domain with another 8 (input, output, treatment stages) of treatment plants and parameters (sulphates, iron, manganese, nickel, copper, distribution networks in the areas of towns Târgu Frumos zinc, lead, chromium). The evaluation of the RENAR team and Harlau. did not detect any nonconformity as regards with the test methods proposed for the accreditation extension.

56 TECHNICAL DIRECTORATE

The Waste Water Laboratory is carrying out the activities - Performing of periodic internal audits of activities listed below: (according to planned and predetermined procedures) - Applying of implementation strategy, accreditation in order to check if system’s performance complies and maintaining of test methods accreditation in to the requirements of International Standard 17025: compliance to standard SR EN ISO / CEI 17025: 2005 2005; “General requirements for competence of testing and - Collaboration with the process analysis laboratories of calibration laboratories”; APAVITAL; - Identifying, defning and reporting in hierarchical order - Providing the necessary data for preparation of reports of potential conflicts of interest, in order to avoid the on the evolution of tested wastewater parameters; negatively influence in the quality insurance activity - Tracking the fulfllment of performance individual and the quality control for test results; indicators defned by the company’s executives. - Applying of appropriate methods and procedures for all tests, including sampling, manipulation, transportation, storage and preparation of testing Quantitative indicators objects, estimating the measurement uncertainty, The laboratory is permanently concerned about and the statistical techniques for the assessment of ensuring the quality of performed tests by: drafting and laboratory test results; implementing the internal control plan (use of reference - Performing of sampling and laboratory tests according materials as MRC certifcates, control charts, repeated to standards in force; analyzes) and the external control which implies - Drafting of test bulletins the information and supplying the participation in inter-laboratory benchmarking of data required for the preparation of payment procedures organized at international level. Thus, in 2017, documents; the wastewater laboratory participated in the Aquacheck - Centralizing, organizing and keeping track in electronic 527 benchmarking program, organized by company LGC format and/or in writing of all tests performed in Standards with 12 quality paramters (COD-Cr, suspended defned sampling points; total matter, detergents, Cr, Fe, Mn, Cu, Pb, Ni, Zn, Phenol, - Drafting of the annual resource needs (equipment sulphates), for which all results were satisfactory. (see and glassware, specifc materials and reagents) for the Table 4); laboratory, with observance of procedures related to the assessment of requests, bids and contracts;

57 TABEL PAG 58 Participation list and results obtained at the performance rating scheme in 2017

Period of RezultaResult (Z- Comments Perioada DenumireName of test/testing încercare/ method metoda de analiză Organizatorul/Organizer/ scheme denumireaname schemei participation tulscore (sco) - Observații participării rul Z)

DeterminationDeterminarea of oxygen consumului chemical chimic consumption de LGC Standards/Aquacheck Standards/Aquacheck – round – runda527 527 Iul.July 2017 2017 0.480,48 CODoxigen,-Cr/SR CCO-Cr/SR ISO 10523:2012 ISO 10523:2012

Determinarea materiilor totale în LGC Standards/Aquacheck – runda 527 Iul. 2017 0.14 Determinationsuspensie/SR of total EN suspended 872:2005 matter/SR EN 872:2005 LGC Standards/Aquacheck – round 527 July 2017 0,14 Determinarea agenților de suprafață anio- LGC Standards/Aquacheck – runda 527 Iul. 2017 -1.89 Determinationnici (detergenților)/SR of anionic surface EN 903:2003agents (detergents)/SR EN 903:2003 LGC Standards/Aquacheck – round 527 July 2017 -1,89

Determinarea cromului/SR EN 1233: 2003 LGC Standards/Aquacheck – runda 527 Iul. 2017 -0.46 |Z|<2 = =satisfying rezul- Chrome determination / SR EN 1233: 2003 LGC Standards/Aquacheck – round 527 July 2017 -0,46 tat satisfăcăresult; - Determinarea fierului/SR 13315:1996/ LGC Standards/Aquacheck – runda 527 Iul. 2017 0.40 tor; C91:2008Iron determination / SR 13315:1996/ 2<|Z|<3 LGC Standards/Aquacheck – round 527 July 2017 0,40 C91:2008 2<|Z|<3=uncertain = Determinarea manganului/SR 8662:1996 LGC Standards/Aquacheck – runda 527 Iul. 2017 0.16 rezultatresult îndo; - ielnic; Manganese determination / SR 8662:1996 LGC Standards/Aquacheck – round 527 July 2017 0,16 |Z|>3 = Determinarea cuprului/SR ISO 8288: |Z|>3nonsatisfying = rezul - LGC Standards/Aquacheck – runda 527 Iul. 2017 -0.30 2001Copper determination / SR ISO 8288: tat nesatisfaresult - LGC Standards/Aquacheck – round 527 July 2017 -0,30 2001 cator Determinarea plumbului/SR ISO 8288: LGC Standards/Aquacheck – runda 527 Iul. 2017 -0.06 2001Lead determination / SR ISO 8288: LGC Standards/Aquacheck – round 527 July 2017 -0,06 2001 Determinarea nichelului/SR ISO 8288: LGC Standards/Aquacheck – runda 527 Iul. 2017 -0.07 2001Nickel determination / SR ISO 8288: LGC Standards/Aquacheck – round 527 July 2017 -0,07 2001 Determinarea zincului/SR ISO 8288: LGC Standards/Aquacheck – runda 527 Iul. 2017 -0.28 2001Zinc determination / SR ISO 8288: LGC Standards/Aquacheck – round 527 July 2017 -0,28 2001 Determinarea fenolului/SR ISO LGC Standards/Aquacheck – runda 527 Iul. 2017 0.29 6439:2001/C91:2006 Phenol determination /SR ISO LGC Standards/Aquacheck – round 527 July 2017 0,29 6439:2001/C91:2006 Determinarea sulfaților/EPA 9038:1986 LGC Standards/Aquacheck – runda 527 Iul. 2017 -0.43 Sulphates determination /EPA 9038:1986 LGC Standards/Aquacheck – round 527 July 2017 -0,43

58 TECHNICAL DIRECTORATE

of test results and assessing the performance Important achievements of the laboratory in 2017 characteristics of test methods; • RENAR evaluation of accredited methods, and as well • Supplementation of laboratory personnel by selecting as those proposed for the extension of accredited and hiring a biologist test domain, from a number of 16 test methods to a number of 18 methods, for 24 representative quality parameters in the contract concluded with ABA Prut - Barlad authority and economic agents; • Increasing of number of test orders received by the laboratory from external clients in 2017, as numbers (16.72%) and also as value (18.75%), compared to 2016; • Full monitoring according to monitoring programs and internal requests and monthly reporting of results, within deadlines, towards all operating departments, in order to identify and remedy in a timely manner all possible operational defciencies with potential for water pollution ; • Ensuring the continuity of laboratory’s activity in terms of material and reagent procurement and as well the operation of equipment as a result of a careful monitoring of existing stocks and needs and as well the control of planned maintenance and specialized service for equipment; • Training of newly employed personnel and as well as the staf responsible for tests in the newly created working location only ensuring the quality control

59 The Technical and Public Works department has as main activity the execution of the works for the replacement of water networks and The Technical reinstatement of water connections (investments with ApaVital funds) and execution of water/sewer connections for both natural and legal and Public Works persons, plus works of worksite reinstatement (asphalt, concrete, tiling), and other production works. Department In 2017, this department had a personnel of 46 employees out of which: 1 head of department, 4 - engineers, 1 – clerk, 4 – work teams including bands 4 team heads, 23 water-sewer plunbers, 2 locksmiths- mechanics, 2 welders, 5 asphalt layers, 4 unskilled workers. In 2017, the department generated revenue reaching an amount of 4,993,926 lei. The activity in this department includes various works: - Investment (ApaVital and conventions with localities); Site reinstatement (asphalt, concrete, tiling); Water connections; Sewer connections; Other works (manhole concrete slabs).

Investments (ApaVital and conventions with localities) in 2017 The investment projects for which works were executed referred to the contracts listed below: - Extension of water supply system Bârnova commune; - Extension of sewer networks and water networks in Pacurari area (str. Cazarmilor); - Extension of water supply Cristesti; - Extension of water networks in the villages of Timisesti commune; - Extension of water-sewer networks in the central area (str. Lozonschi); - Main pipeline network and pumping station, Lunca Cetatuii - Cercu; - Replacement of water networks/connections – st. Cicoarei, str. Arh. Berindei Str/Ste-ela Poienilor, str Caramidari etc - Extension of distribution network for water supply of Occupational Therapy Integration Center, in the commune of Popricani; - Extension of water network in Scobinti commune - Extension of water supply network in Ţibăneşti; - Extension of the Holboca water supply network - Water supply in Sârca village, Baltati commune;

60 TECHNICAL DIRECTORATE

- Water supply on Bd. Poitiers; Site reinstatement works: - Extension of water network in Miclauseni village, Butea Executed works - 283; commune; Asphalt - 560 tons; Storable mix - 39 tons; - Water supply in Osoi village, Comarna commune. Tiles-712 m2 ; Water connections - 2.981 pcs. Investment works in communes with which ApaVital Sewer connections - 258 pcs. concluded conventions: - Water supply system, Mogosesti; Other production works: - Water supply system, Voinesti; Arrangement of the TPW headquarters within the - Water supply in the villages of Grozeşti commune; Wastewater Treatment Plant, Gate 2; - Extension of water network, Horodiştea-Luparia; E-ON Statia Iasi-Tomesti - location change; - Extension of water supply network Erbiceni village; Trafc concrete tiles – 22 pcs; - Water supply extension Victoria commune, the Bulgarie Water supply system Raducaneni commune, Rosu village; zone; Airport - Intervention to at the water-heating system. - Water supply - Osoi village, Comarna commune; In 2017, during investment works (ApaVital and - Extension of Ciohorani water supply communes conventions) a length of 21,350 meters of HDPE pipes were laid. Also 90 hydrants and 50 valves were mounted on networks.

61 • Implementing all adequate measures for adapting equipment and installations included in the public water and sewerage systems to The the evolution of standards and techniques, in accordance with the provisions of the Delegation Agreement; • Preparation of the annual spare parts requirements lists and defning Electromechanical the list with parts that are to be executed in the company’s metal works workshop; Department • Execution of spare parts in the metal works workshop, on the basis of orders received from departments; Mechanical sector, processing and • Participation in the reception committee that takes over materials metal works purchased from third parties; Electromechanical and Electrical • Defning of production and services tasks, on activity sector, and Repairs and automation sector implementing action measures whenever malfunctions occur. • The preparation of the monthly repair schedule and The Electromechanical Section is carry- • the machinery/equipment stoppage schedule for repairs and ing out the following activities: inspections; • Collaborating with the Human Resources Department for regular • Achievement of the annual program training of personnel that operates installations under the incidence of revisions and repairs, with strict of I.S.C.I.R. regulations (state authority for pressure boilers and lifting observance of prescriptions in terms machinery); of technology, quality, occupational • Timely preparation of activity reports; health and security, fre prevention • The fulfllment of specifc performance indicators set by the company’s and extinguishing, and, as well the top-level management, in accordance with the Performance Appraisal I.S.C.I.R. prescriptions (lifting gear and manual, in force within ApaVital. pressure boilers); • • Performing of non-planned repairs on machinery and equipment, respectively hydraulic, electric and automat- ed installations;

62 TECHNICAL DIRECTORATE

Activities carried out by the department APAVITAL FUNDS The Investment- - In 2017 there were executed works worthing an amount of 16,078,532.77 lei, the following facilities were commissionned: Development - - water networks - 33.7 km, out of which: o Iaşi City 4% Department o metropolitan area 34%, in communes . Ciurea Within the Technical Directorate of . Bârnova ApaVital the Investment-Development . Holboca Department operates, a hierarchical . Popricani unit that is comprising the PIU o Iaşi County 62% in the localities Bureau and the Worksite Supervisors . Deleni Bureau. This department includes 22 . Cotnari employees. . Paşcani . The department’s main role is to Scobinţi . Tg. Frumos manage the implementation of . Scobinţi company’s investment projects (included in the ApaVital Investment Program related to investments fnanced from own sources and external sources), and this meaning all project-related stages: defning the project necessity and opportunity, drafting technical and economic documentation, drafting the substantiation notes and project approval decisions, ensuring the projects fnancing, preparing the tendering process (tender/bid evaluation /contract awarding), supervising of execution and arranging the taking-over and commissioning of completed works/services.

63 stage on streets of the Dimitrie Cantemir, Cramei and Sewer networks Aleea Teilor in Deleni commune, Iaşi County – 8,8 km out of which: • Extension of water network, 1.7 km, village of Buznea, Ion - Iaşi City 7% Neculce commune - Metropolitan Area 53% • Extension of water network in Scobinti commune, Iasi (5.2 - County 40% km network) Ion Neculce • Extension of sewers in Iaşi, 2nd part, 2nd stage of works Deleni located in the DN 24 road area (4.6 km sewer network) • Water supply village of Sârca village, Bălţaţi commune, Iaşi county (6.6 km water network)

EXTERNAL FUNDS

REGIONAL DEVELOPMENT PROJECT FOR WATER AND WASTEWATER INFRASTRUCTURE IN IAŞI COUNTY ON PERIOD 2014-2020 (“POIM 2014-2020”)

The regional projects that are to be funded during the 2014-2020 programming period will address the needs of water sector in urban agglomerations, where environmental impacts are usually higher and where the benefciary population is more numerous, and also those from rural areas. The prioritization of investments in the project area will also take into account the commitments made by Romania via the EU Accession Treaty. The most important works completed in 2017 are: An essential objective of these regional projects is to promote • Extension of water supply system in Bârnova village (3.6 greater efciency and quality in delivering local public services km water network) through investment and the promoting of independent, well • Replacement of water networks in Bd. Poitiers, str. Manta co-ordinated and fnancially sustainable operations. Roşie street, Şos. Bucium section Bd. Poitiers - Pumping About 200 million euros are allocated to Iasi County and the station (2.6 km water network) investment costs will reach some 175 million euro. • Extension of water network to ensure the water supply The project named REGIONAL DEVELOPMENT PROJECT FOR service for the Occupational Integration Therapy Center WATER AND WASTEWATER INFRASTRUCTURE IN IAŞI COUNTY DGASPC Popricani (6.2 km water network and a pumping FOR PERIOD 2014-2020 (“POIM”) will be implemented station) between 2014 and 2020 and will include 13 works contracts • Sewer network (2,400 m) and water network (1,7 km), and two service contracts (Technical Assistance and Audit).

64 TECHNICAL DIRECTORATE

documents to obtain a co-fnancing from the European Union This project is focused on agglomerations which for water and wastewater infrastructure works. fall under the following conditions: the distance between The contract is structured in two stages: localities to be lesser than 200 meters or a population must • STAGE I - Preparation of the Financing Application, Tender exceed 2000 inhabitants. Localities within the entire county Documents, Technical Projects, Execution Details – this are targeted. amounting to 9.254.170,00 lei; Within this project, the investments will be made • STAGE II - Project Management and Supervision of Works through works contracts (13 contracts) and having as object Contracts - in the amount of 10,237,630 lei. the following: From the date when the Works Commencement Instruction - Catchment works: new main water pipelines and rehabilitation was issued (March 28, 2016), Stage I is in progress, and Stage - Water plants: new chlorination stations and rehabilitation of II is set to begin after approval of the Financing Application. the existing ones In Stage I, the Consultant has the following tasks: - Distribution networks: pumping stations, water tanks, • Preparing topographical surveys for water supply networks distribution networks (including connections) (about 292.7 km long) and sewer networks (length of about - Sewer systems: collecting sewer networks (including 428,1 km); connections), wastewater pumping stations • preparing of topographic surveys for water main pipelines - Works inside Waste Water Treatment Plants: new plants and (about 278,7 km long) and wastewater main collectors (length rehabilitation of the existing ones of about 162,5 km); - Other facilities related to investments • drafting of feld studies: geotechnical study, hydrogeological study, floodability studies; The short list of investments includes 27 agglomerations, and the investments provide for the water supply of these agglomerations, for the construction of main water pipelines, water tanks and, as well, sewer networks and wastewater treatment plants. SC APAVITAL SA IAŞI has concluded the service contract no. 9670 / 07.03.2016 with consulting company SC EPTISA ROMANIA SRL, contract amounting to a value of 19,491,800 lei, with an implementation period of 74 months. Under this contract, the Consultant has to prepare all necessary

65 • Drawing up of Technical Projects and Execution Details including documentation needed for obtaining all permits and documents demanded for the Construction Authorization; • Preparing of Tender Documents for each contract identifed in the Procurement Strategy;

On 10.03.2017, SC APAVITAL SA IAŞI submitted to the POIM Managing Authority the fnancing application requesting the fnancial resources needed to fnance the Technical Assistance Contract. On April 26th, 2017, AM POIM approved the fnancing application and on May 26th, 2017, the Financing Contract was signed with the MINISTRY OF REGIONAL DEVELOPMENT, PUBLIC ADMINISTRATION AND EUROPEAN FUNDS, as POIM • Preparing the Institutional Analysis, the Sludge Management Managing Authority. Strategy, the Study on Industrial Wastewater Discharges; • Preparing the Procurement Strategy – on this issue 13 works For 2018 the following activities are envisaged: contracts have been identifed with the Regional Operator, for - Submittal of fnancing application for the 2nd stage of the which Tender Documents are to be prepared (under Yellow and technical assistance contract, as well as for the fnancing of Red Fidic contracts); it is to be noted that some of contracts the POIM works contracts include both types of Fidic contracts; - Commencing of tendering procedures for contracts awarding • Drawing up of the Cost-Beneft Analysis, Feasibility Study;

66 TECHNICAL DIRECTORATE

The Design Department At present, the Design Department team consists of 18 specialists with experience of up to 40 years in various fields of activity: - Hydrotechnics; Constructions; Geodesy; - Electrical Engineering; Automation; Installations in construction; Environmental Engineering. Goals - Ensuring the internal and external clients’ satisfaction through quality design works and delivered according to the deadlines. - Increasing the revenues of the Company, by involvement in external Rezervor = tank statie epurare = wastewater treatment projects competitions. statie clorare = chlorination station plant - Modernization of activities carried out statie tratare = water plant statie pompare ape uzate = wastewater by the large-scale use of advanced design statie pompare = pumping station pumping station technologies and simulation (hardware front fir.alim. = main water pipeline and software). captare = groundwater catchment field - Ensuring a high level of diversity of conducted activity by co-operation with specialists in multi-disciplinary fields, according to the needs of the company. - Permanent identification of new solutions for the mechanization and automation of works, and, as well, as regards the modernization of networks / installations.

67 Specific activities Executed projects  Preparation of technical documentation on different  In 2017, there were produced a total of 62 technical design phases (RC-current repair, RK-overhaul, documentations, internally ordered, related to SPF-prefeasibility study, SF-feasibility study, different design phases (SF, DTAC, DTOE, PT + DDE, DALI-documents for authorizing of intervention etc.) and were concluded a number of 157 contracts works, DTAC-documents for construction permit, with external third parties PTh (design) + DDE(execution details) , DTOE-  documents for organization of execution) for all Revenue amount in 2017 from engineering and investment projects implemented by the company, or technical consultancy activities reached a total of subcontracted; 1,200,000 lei.  Requesting and obtaining permits and agreements from various utilities / agencies / departments, etc., regarding the execution of the contracted work;  Approval of executed projects;  Preparation for approval of design works, followed by submission for internal and external approval;  Providing technical assistance in design domain on beneficiary’s request;  Preparation of comparative studies, by variants, proposing the optimal design and execution of works, in order to ensure their profitability;  - Conducting topographic surveys in order to design investment objectives;

68 TECHNICAL DIRECTORATE

Each member of the department carries out its work according to his/her job description and in compliance to work procedures. The The IT&C collaboration of the department members with the other ApaVital departments is an active one, achieved via several systems and paths: Department the Intranet; the ERP CROS integrated ticketing activity, the data flow and document management subsystem; the MICROSOFT SHAREPOINT The IT & C Department is organized ENTERPRISE technology; the GIS subsystem monitoring; the subsystem within the Technical Directorate and for online payments and receipts; the SCADA type water and sewerage consists of three programmers and systems monitoring and control subsystems. The systems also provide an analyst, as well as a Hardware the following activities: various specifc project management activities, Infrastructure Bureau, led by an generation and management of work progress reports, access control and engineer having a “Ph.D” title, monitoring, monitoring of the automotive fleet usage and movement, including two system engineers, a client meter readings, interface applications from state institutions, the database administrator and two www.apavital.ro external portal, etc. technicians. The department is run by a cybernetics licensed economist, head The software development, as a distinct activity of the IT Service, of the department, who co-ordinates has as a fundamental objective the computerization of activities and the entire activity. IT procedures used at a high frequency and which need adaptation to the current context of the company’s activity. This activity sets an upper benchmark in terms of performance at company level, being the one that develops ahead of all the others and proposes solutions before other employees ask for or notice opportunities of this type. Taking into account the principles that govern ApaVital’s activity, the Development Strategy 2013-2018 provides for the following tactical objectives, derived from the Company’s overall strategy, as regards the computerization activity: • Increasing the computerization degree of the company; • Computerization of the personnel evaluation system; • Generalization of GIS systems; • Increasing the level of IT security; • Improving the fnancial management of IT activities; • Adopting the service level system (SLS), as regards the clients

69 • Sharing the role of the IT Department as a value- We consider that these objectives have been achieved, adding generator for S.C. APAVITAL S.A; although most of them are continuous activities. Being a • Starting the implementation of a dashboard system crucial department for all activities conducted in ApaVital, for the company’s senior management; in 2017 there were achieved objectives initially proposed • Generalization of the use of project management and also those that appeared afterwards. Statistically, the software applications. current help desk activity, compared to the 2016 one, is shown in the following table:

CATEGORY REQUEST TYPE NO. 2016 NO. 2017 Development Analysis 46 69 Development Screen creation / modification 1 4 Development Application modules creation / modification 9 7 Development Reports creation / modification 69 108 Application Helpdesk Website updating 43 84 Application Helpdesk Acces card – Configuring 29 33 Application Helpdesk Data corrections 453 390 Application Helpdesk Virus removal 6 2 Application Helpdesk Extraction of specific data 11 38 Application Helpdesk GPS 19 3 Application Helpdesk User training 39 45 Application Helpdesk User support 4 13 Equipment Helpdesk Installation of client applications 26 32 Equipment Helpdesk Installation of OS + programs 16 39 Equipment Helpdesk User training 4 1 Equipment Helpdesk Intervention in user environment 23 5 Equipment Helpdesk Intervention in SMS transmission system 0 1 Equipment Helpdesk Re-installation of operating systems 42 5 Equipment Helpdesk Repairs ( hardware ) 4 3 Equipment Helpdesk Reinstatement of hardware configuration 134 21 Equipment Helpdesk Configuration modification, on request 55 65 Equipment Helpdesk User support 11 55 TOTAL 1044 1023

70 TECHNICAL DIRECTORATE

The company aims to protect their own from the Romanian and international IT sector. data and also, the clients data. To achieve this, the Company has implemented an Information Projects for 2018: Security Management System in line with the next • Implementing a new monitoring application for requirements: field mobile teams in the field and its integration with GIS and SCADA systems. The solution will be • ISO / IEC 27001: 2013 (ISO 27001: 2013) accessible from any mobile device, having the ability to offer and capture all working details, allowing ApaVital holds the position of Vice President better management of field resources and shorter of the IT&C Committee within the Romanian Water intervention duration; Association. The Commission performs a complex • Implementation of technical and organizational activity where it discusses topics of interest for IT measures in orer to comply with the new EU specialists from the country’s water companies, regulation (679/2016) on the protection of personal establishing professional and friendly ties that data (GDPR - General Data Protection Regulation) enable successful completion of work tasks and which becomes mandatory from May 25, 2018 the professional development. The meetings are attended by representatives of important companies

71 I’ve been coordinating for almost two years now the core activities carried out by the company: water catchment, treatment and distribution, and the evacuation and treatment of wastewater. Therefore, I also have one great responsibility, being focused on water quality and on how which water meets everyone’s needs, the care for environment being also taken into consideration.

In this short time, I learned to transform myself from a a pure professional into a manager and I discovered many things that I like: the emotion of a new beginning, the satisfaction of being appreciated by clients and colleagues and, in particular, the freedom I have to take decisions and to implement the operational strategy I believe in. I do not know if there is a secret, but if it exists, this is, in my opinion, the ability to correctly mix the leadership elements. Thus, this helps me to attract

72 OPERATIONAL DIRECTORATE collaborators in order to implement my personal ideas, communicate better and that reflected in the reached together with the management activity, andf e ectively targets. combining all the production factors that we have at our More than 80% of our activity is unfolds in disposal. carried out in an automatic procedure-based manner I’m glad to see that now in my team, each and I consider that I managed to fnd the leaders - those manager, from each hierarchical level, learns and is able persons adherent to the values they communicate - which to do this, and results are a proof of this. It is said that can potentiate our common approach. people do not change ... unless they want it, and in the operational sector they are very diferent people, with a Eng. ION MIHAILESCU total non-homogeneous education. But once deciphered Operational Director for everyone what is our common goal, I managed to

OPERATIONAL DIRECTORATE

WATER PRUT OPERATIONAL WASTEWATER DISTRIBUTION DISTRIBUTION CATCHMENT/ TIMISESTI WATER PLANTS WASTEWATER NETWORK OPERATIONAL DISPATCH WASTEWATER TREATMENT: AND SEWER/IASI AND SEWER/IASI TREATMENT OPERATIONAL OPERATIONAL TREATMENT ENERGY & METROPOLITAN ANALYSIS DEPARTMENT BUREAU TREATMENT COUNTY AREA DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT AUTOMATION AREA BUREAU DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT

73 The department is organized in two sub-departments, as it follows: • Timisesti Operational Department The Water • Water Plants Operational Department 1. Timisesti Operational Department operates the following facilities: Catchment • Timisesti groundwater collectors: New collector and old collector. • Groundwater wells area: Zvoraneşti, Verşeni, Motca. and Treatment • Sabaoani Chlorination Station. • Main water pipelines: Timisesti-Iaşi, Motca-Pascani, Prut bank intake-Iaşi- Department lakeChirita • Water catchment system and drinking water distribution system - The Water Catchment and Treatment Timiseşti. Department carries out activities • Water catchment system, water treatment, drinking water distribution system and wastewater collecting system - Cristeşti commune. related to the catchment of raw • Water catchment system, water treatment, drinking water distribution water, pumping, treatment, storage system and wastewater collecting system - village of Gheraeşti. and transportation of drinking water up to the limit of competence, the 2. The Water Plants Operational Department operates the following distribution and conveying to sewers facilities: of domestic sewerage. • The water catchment and pumping system Prut bank intake -Ţutora. • The Chirita reservoir. • Water treatment plants: Chirita, Harlau, Timisesti, Sculeni, Tibanesti, Gorban,Belceşti, Vladeni. • Raw water pumping stations: Sculeni, Halceni, Gorban, Tansa, Timisesti • Main raw water pipelines: Pârcovaci – Harlau WP, Halceni – Vladeni WP, Gorban caisson – Gorban WP, Tungujei – Ţibăneşti WP

74 DIRECȚIA OPERAȚIONALĂ SECȚIA CAPTARE-TRATARE APĂ OPERATIONAL DIRECTORATE

Producti on Production

PRODUCTIE - APA CAPTATA 2017(mc) PRODUCTIE APA FURNIZATA 2017 (mc) 35.000.000 30,000,000 25,453,376 30.000.000 28.863.064 25,000,000 20,000,000 25.000.000 15,668,843 15,000,000 20.000.000 15.872.835 10,000,000 15.000.000 4,377,261 5,000,000 2,175,279 10.000.000 0 3.791.980 Sursa Prut Tutora Sursa Timisesti Sursa Motca STAP pt judet 5.000.000 2.617.072 Pascani DIRECȚIA OPERAȚIONALĂ SECȚIA CAPTARE-TRATARE APĂ 0 PRODUCTIE -APA FURNIZATA 2017

Sursa Prut Tutora Sursa Timisesti Sursa Motca STAP pt judet Pascani

PRODUCTIE -APA CAPTATA 2017

GRAFIC STANGAPRODUCTIE PAGINA- APA CAPTATA 75 PRODUCTIE 2017 APA CAPTATA 5% 7%

31%

57%

PRODUCTIE -APA CAPTATA 2017 Sursa Prut Tutora Cristian Chirica – Şef Secţie Captare Tratare Apă UI: 529 Tel. Int.: 5128 [email protected] PRODUCTIE -APA CAPTATA 2017 Sursa Timisesti PRODUCTIE -APA CAPTATA 2017 Sursa Motca Pascani PRODUCTIE -APA CAPTATA 2017 STAP pt judet

GRAFIC DREAPTA PAGINA 75 PRODUCTIE APA FURNIZATA

Cristian Chirica – Şef Secţie Captare Tratare Apă UI: 529 Tel. Int.: 5128 [email protected]

Water production + power consumption The Water Catchment and Treatment Department production 2017

Indicators

Raw abstracted water Month Distributed water (m3) Process water (m3) Power (Kwh) (m3) Specific power consumption (Kwh/(m3)

TOTAL 51,144,951 47,968,751 1,565,246 7,719,660 0.15

Networks – Main water pipelines

Length Diameter Pipe failures Failure rate Main Water Pipeline Materials (km.) (mm) (no.) (no. failures/km)

PREMO, concrete, cast TIMIȘEȘTI 298 1000/800/ 600 43 0.14 iron, steel

TUNEL STRUNGA 1.25 Concrete 2000 0 0.00 PRUT 74 PREMO, steel 1200/1000 19 0.26 PASCANI 43 PAFSIN 600 7 0.16 TOTAL 416.25 69 0.17

76 OPERATIONAL DIRECTORATE

THE WATER CATCHMENT AND TREATMENT DEPARTMENT – WATER BALANCE, IASI MAIN WATER PIPELINES, 2017

Billed Billed metered consumption 40,373,515 Billed water Authorized authorized 40,373,515 consumption consumption Billed non-metered consumption 0 40,373,515 Water input to Non-billed metered consumption 833,157 system, Non-billed „abstracted 41,233,672 authorized 860,157 water ‚’ consumption Non-billed non-metered consumption 27,000 44,702,269 Non-revenue water Non-authorized consumption 0 Commercial Losses losses 201,868 Flow measurement and processing (apparent) 201,868 errors

Losses on distribution pipes and/or main 44,702,269 3,266,729 4,328,754 water pipelines

Physical Losses and discharges via tanks 3,468,597 3,266,729 0 losses (real) overflows

Connection losses, up to flowmeter 0

77 Central Dispatch Bureau The Dispatch Bureau conducts the following activities: - Coordination of production activities carried within the company in the county, in order to ensure the proper functioning of ApaVital systems (drinking and industrial water supply, sewers and wastewater treatment plants); - Coordination and control of network and facilities maneuvers needed for the supplying of potable and industrial water at optimal pressure and flow for Description of activities the company and clients; The main activities of the bureau revolve around dispatching - Rapidly and accurately inform production processes to ensure proper operation of water and sewerage decision makers on executed system, and the identifcation and execution of maneuvers necessary for regulation actions carried out for the uniformity and continuity of the water supply processes. production / services processes, and • With SCADA computer software the Dispatch Bureau coordinates the in relation to events that may lead dispatching processes for the company s production in order to ensure to emergencies as well as the daily good functioning of the drinking and industrial water supply system, informative situation regarding the respectively of the sewer networks and wastewater treatment plants water supply system across the county and its presentation to the company’ in the county; senior management • Coordinating, via the dispatching personnel, the necessary maneuvers needed for the distribution of drinking and industrial water at optimal pressures and flows to the company premises and clients; • Permanent and systematic tracking and correct recording of main network paramaters: pressures, flows and levels in water tanks; • Identifes and performs necessary maneuvers, in order to ensure the uniformity and the continuity of water supply;

78 OPERATIONAL DIRECTORATE

• Ensuring current and statistical survey and tracking the Achievements main operating parameters of facilities, installations and equipment and, as well, as regards the main events  Among the achievements of the Dispatch Bureau in that might occur and the way to solve/mitigate them; 2017 those liste below are to be mentioned: • Involvement in actions and projects related to the  Decreasing of water losses through a strict monitoring decreasing of water consumption and losses and, and by maintaining optimal pressures in networks; as well, those focused on the decreasing of power  Water distribution to all consumers during drought consumption; periods (i.e. 6-7 months per year) via an efcient • Participation in the drafting of the Technical Report management of water resources; related to the number of users, billed volumes, number  Managing the major events that occur during the year of water and sewer connections, network lengths, (failures/damages on main water pipelines, drought, output parameters related to production and various scheduled works, accidental pollution…etc); ways of water conveying and supply, statistics related  Involvement, in 2017, in rehabilitation projects to water cutofs and corresponding waiting time, and, carried out on networks and facilities by performing as well, the Performance Indicators rate at the end of all maneuvers needed for hydraulic isolation and/or fnancial exercise, in compliance to the provisions of facilities commissioning; the Delegation Contract;  Development of SCADA systems, from company funds, • Satisfaction, in terms of quality and quantity, of clients by monitoring the most important facilities managed demand for water and sewerage services, within the by ApaVital. limits of technical possibilities and considering the need to the continuously supply such services, in accordance with the provisions of the Delegation Contract;

79 The main activities carried out within the Wastewater Treatment Department are related to wastewater treatment operations carried out via The Wastewater diferent mechanical, chemical and biological processes, plus equipment setting operations, technological schemes and water microbiological Treatment monitoring carried out in order to measure and maintain parameters within the fgures imposed by the Romanian law in force. Department The Wastewater Treatment Plants supervised by this department, in 2017, have processed and discharged into emissaries (rivers and creeks) The Wastewater Treatment a volume of 47,230,415 m3 of waste water. Another important activity Department includes two sub- carried out within this Department is the treatment of sludge. Therefore departments, the Wastewater a volume of 290,500 m3 of sludge was treated and stored in the Iasi and Treatment Operational Department Pascani Wastewater Treatment Plants. The Iaşi Wastewater Treatment and the Wastewater Treatment Energy Plant uses sludge for producing biogas, that reached a volume of 1.129.094 and Automation Department. The m3, biogas used as fuel for thermal motors and power and heat generating department has the mission to operate boilers (both used in the production process). a number of 14 Wastewater Treatment In 2017 the activity of the Wastewater Treatment Department Plants: Iasi, Pascani, Tg.Frumos, was expanded throughout Iasi county and also in the Neamt and Vaslui Hârlău, Podu Iloaiei, Belceşti, Tibanesti, counties, as follows: Raducaneni, Vladeni, Leţcani, Ţigănaşi, - the total number of wastewater treatment plants in which the Wastewater Gherăeşti, Doljeşti and Cotnari. Most of Treatment Department had interventions is 34; Wastewater Treatment Plants received - the Wastewater Treatment Department operates 14 wastewater support from the technical personnel treatment plants; within Wastewater Treatment - Improvement technical proposals for improvement have been analyzed Department. and drafted for 17 wastewater treatment plants operated by the Wastewater Treatment Department Sewage and other departments from the Operational Directorate, and, as well, as regards Wastewater Treatment Plants from other water companies (Vaslui and Barlad); - 4 new Wastewater Treatment Plants were taken over and commissioned

80 OPERATIONAL DIRECTORATE

WWTP aeration tanks; - microscopic biological tests of active sludge from aeration tanks pf WWTPs from the (managed by the Wastewater Treatment Department); - on-demand assistance as regards biological tests and guidance for ApaVital WWTPs that do not belong to the Wastewater Treatment Department; - conducting professional trainings (on active sludge biological testing methods) for personnel of Huşi WWTP, Galati WWTP, Tecuci WWTP and from the Iaşi Wastewater Treatment Department; - active sludge monitoring, tests and guidance for Barlad and Vaslui WWTPs; into operation by the Department: Gheraeşti WWTP, - preparation of internal and external audit documentation, Doljeşti WWTP, Cotnari WWTP,Tiganasi WWTP; and risk management documents; - 3 wastewater treatment were commissioned, WWTPs - presentations made for school and university students managed by other departments of the Operations that carry out practical activities in the Iaşi WWTP. Directorate: Tansa WWTP, Boureni WWTP and Dumesti All Wastewater Treatment Plants operated by the WWTP; Wastewater Treatment Department, under the new form - rehabilitation works were continued at 4 wastewater of organization, have met the legal requirements related treatment plants: Belceşti WWTP, Ţibăneşti WWTP, to the functioning and the parameters of water released Raducaneni WWTP and Vladeni WWTP. to emissary, as made mandatory by law in force. In 2017 a special event was a know-how exchange The Biology Laboratory has an important role in with operators from the Republic of Moldova in the the activity of the Wastewater Treatment Department; in feld of Wastewater Treatment Plants (during the action, 2017 this sector carried out the following activities: the representatives of water companies visited the Iaşi - microscopic biological tests of active sludge from Iasi WWTP).

81 The Water Distribution and Sewerage/Iasi Metropolitan Area Department The Water Distribution and Sewerage/ Iasi Metropolitan Area Department was founded in July 2016, through the merging of the Water Distribution The basic activity of this department consists of maintaining Department and the Iasi Metropolitan and operating the water and sewer networks in orderf toe ciently Area Sewerage Department. and continuously supply drinking and industrial water, at parameters provided by laws in force, within Iasi City and, as well, in the surrounding localities: Miroslava commune (Balciu, Bratuleni, Ciurbeşti, Corneşti, Dancaş, Gaureni, Horpaz, Proselnici, Uricani, Valea Adânca, Valea Ursului, Voroveşti, Miroslava), Letcani commune (Bogonos, Cogeasca, Cucuteni, Letcani), Valea Lupului, Rediu commune (Breazu, Horleşti, Rediu), Aroneanu commune (Dorobant, Aroneanu, Şorogari), Holboca commune (Cristeşti, Dancu, Hoboca), Tomeşti commune (Tomeşti, Chicerea, Goruni, Vladiceni), Bârnova commune (Cercu, Paun, Pietraria, Todirel, Vişan, Bârnova), Ciurea commune (Ciurea, Hlincea, Lunca Cetatuii), Popricani commune (Carlig, Vanatori, Popricani, Vulturi), Ungheni commune (Coada Stancii, Bosia, Manzatesti, Ungheni), localities included into the Iasi metropolitan area, according to the table below. Moreover, other activities include the maintenance and operation of the pumping stations, boosting pumping stations, chlorine load correction stations and water tanks, plus, respectively, wastewater pumping stations. The mentioned facilities are: 45 water and wastewater pumping stations and boosting pumping stations, 16 chlorine load correction stations, 46 water tanks and 43 wastewater pumping stations. 82 OPERATIONAL DIRECTORATE

Water network Sewer network Locality Length [M] Length [KM] Length [M] Length [KM] Iași City 493,303.26 493.30 505,024.05 505.02 Aroneanu commune 47,530.66 47.53 - 0.00 Bârnova commune 75,885.79 75.89 31,936.55 31.94 Ciurea commune 47,175.55 47.18 17,290.54 17.29 Holboca commune 35,456.32 35.46 18,534.25 18.53 Lețcani commune 47,397.42 47.40 7,490.89 7.49 Miroslava commune 123,166.83 123.17 22,212.11 22.21 Popricani commune 27,550.34 27.55 - 0.00 Rediu commune 41,515.53 41.52 - 0.00 Tomești commune 72,675.38 72.68 48,497.91 48.50 Ungheni commune 27,816.38 27.82 - 0.00 Valea Lupului commune 40,051.4 40.05 29,287.77 29.29 Total IMA 586,221.60 586.22 175,250.02 175.25 TOTAL WDS IMA 1,079,524.86 1,079.52 680,274.07 680.27 In order to ensure proper operation and wastewater pumping stations, plus water storage tanks maintenance of the whole water and sewer system respectively. networks across the metropolitan area, including the Iasi Within the team assigned to the maintenance of water- Municipality, the Department is structured in two sectors: wastewater pumping stations and tanks there is a mobile operational sector South and operational sector North, team dealing with the verifcation, the monitoring and delimited by the Bahlui River. Each sector includes 4 the maintanance of facilities with no operating personnel, work teams, three for water-sewer network maintenance both for water and sewerage. and one for maintenance and operation of water and

83 Main activities carried out by the Department: and November - problems occurred at Timisesti source, The activities of the Department are split into two situation that implied the need to pump more water categories: from source Prut through the Chirita pumping station. Activities specific to drinking water distribution: Therefore this meant an increased power consumption - operation and maintenance of drinking water distribution for the department and, implicitly, the increase of the networks; efciency rate which, at the end of the second semester, - operation and maintenance activities of facilities for had the value of 0.384 KWh / m3, beyond the proposed drinking water disinfection (chlorine load correction target. However, this did not influence the target value by stations); the end of 2017. On the sewer side, in 2017, the energy - operation and maintenance of machinery and equipment efciency rate at the end of the year was 0.132 KWh/m3, for pressure raising, and automation systems in pumping which corresponds to the proposed target of 0.24 KWh / stations/hydrophores; m3. - execution of interventions / repairs maintenance works on drinking water networks; - execution of pipeline replacement works and Price of electric power consumption replacement of worn-out water connections; YEAR : 2016 KWh LEI Lei/KWh Sewerage specific activities: HALF-YEAR I 5,716,901 2,062,845 0.361 - operation and maintenance of sewerage networks; HALF-YEAR II 6,496,363 2,336,682 0.360 - operation and maintenance of pumping stations and TOTAL 12,213,264 4,399,527 0.360 auxiliary constructions of the section, in the purpose YEAR : 2017 KWh LEI Lei/KWh of taking over and conveying wastewater towards the wastewater treatment department; HALF-YEAR I 7,459,442 2,546,267 0.341 - execution of interventions/repairs and maintenance on HALF-YEAR 7,757,964 2,592,831 0.334 sewerage networks; TOTAL 15,515,928 5,185,663 0.334 - execution of sewer pipe replacement works and replacement of worn-out connections. For the entire department, although in 2017 a higher amount of energy was used compared to 2016, in Achievements in 2017 a justifed way, the unit cost (lei / KWh) was lower in 2017 In 2017, the energy efciency rate achieved was (0.334 lei / KWh) than in 2016 (0.360 lei / KWh), which 0.370 KWh/m3 and corresponds to the proposed target means savingsreaching an amount of 786,136 lei. fgure of 0.38 KWh/m3. Specifc for 2017 was the fact that, in the second semester - August, September, October

84 OPERATIONAL DIRECTORATE

Malfunctions Sewer sector works Notifcations/complaints 0-24 hours 24-48 hours 48-72 hours P.72 Total Notifcations for sewer Failures/damages 4,448 100 33 0 4,581 Malfunction 0-24 hours 24-48 hours 48-72 hours P.72 Total Sewer failure 84 7 0 0 91 Clogged sewer 3,069 19 11 0 3,099 Clogged discharge pipe 129 13 0 0 142 Sewer collapse 15 3 0 0 18 Manhole rim collapse 58 6 0 0 64 Discharge pipe rim collapse 21 2 0 0 23 Total 3,376 50 11 0 3,437 Water networks works Notifcations/complaints 0-24 hours 24-48 hours 48-72 hours P.72 Total Notifications for water Network malfunction/failure 4,837 294 48 0 5,179 Malfunction 0-24 hours 24-48 hours 48-72 hours P.72 Total Connection leak 434 54 0 0 488 Meter manhole leak 472 30 0 0 502 Leak in valve manhole 28 3 0 0 31 Pipe leak 1,122 74 16 0 1,212 Inflicted pipe leak 5 0 0 0 5 Hydrant leak 26 0 0 0 26 Valve leak 8 0 0 0 8 Total 2095 161 16 0 2272 Water Distribution and Sewerage/Iasi Metropolitan Area Department – notifications and complaints Department notifcations 0-24 hours 24-48 hours 48-72 hours P.72 Total Sewer notifcations 4,448 100 33 0 4,581 Water notifcations 4,837 294 48 0 5,179 Total notifications/complaints per dept. 9,285 394 81 0 9,760 Type work/days 1 2 3 6 Total Sewer 3,376 50 11 0 3,437 Water 2,095 161 16 0 2,272 Total 5,471 211 27 0 5,709 85 As regards the sewer sector, in the second half of 2016 a number of 3,256 malfunctions were repaired, while in the second semester of 2017 the repaired malfunctions were with 5.6% more compared to 2017 (i.e. 3437). This was due to fact that in 2017 the department took in charge the operation of other 16 wastewater pumping stations in communes of Victoria, Ciurea and Tomeşti (Chicerea). Other Achievements: - Execution of replacements and extensions on water networks, according to table below: Year 2016: As regards water distribution: in the second half of 2016 - Extensions of drinking water network: 1,575 m a number of 2,367 malfunctions were repaired, while - Replacement of drinking water network: 0 malfunctions repaired in the second half of 2017 were Year 2017: with 4.0135% fewer (i.e.2272), which proves a positive - Extensions of drinking water networks: 4,588 m efciency of the department’s personnel work quality. - Replacements + Drinking Water networks diversions: 2,491 m

86 OPERATIONAL DIRECTORATE

Completed network meters

87 Permanent activities Type of activity Number The Network Water leaks detections As requested by water network operation and maintenance de- 195 Analysis partments Based on written order 70 Bureau Localization of manhole covers and street connection points 425 Monthly meter readings were carried Localization of pipes 225 out and the fgures were compiled in Flow measurements 135 a database with water consumptions Pressure measurements 64 in the existing micro-sectors. Thus the information were sent by e-mail to the CCTV inspections 15 company’s executive management and Georadar inspections 1 departments concerned by them. Ana- Amount cashed for provides services 9,106.45 lyzes were performed and, depending on results, the personnel intervened in The construction of the hydraulic model continued for the Iasi City water order to fx identifed issues. network. The model is created with the Mike Urban program, and the process requires the updating of software GIS database with information related to networks structure and volumes of billed/transited water through these networks. In order to achieve this goal, during year 2017 a number of 12,000 items were manually entered into the program database. These items included graphic elements with specifc information, such as pipelines, valves, nodes, water tanks, etc. The same was done for more than 3,000 clients, including the history of their billed water volumes.

88 OPERATIONAL DIRECTORATE

Periodic activities In addition to the ongoing permanent current activities, listed in table above, the bureau also carried out the activities listed below: 1. Flow and pressure analyzes were performed on the water systems in Gorban, Tungujei, Harlau-Cotnari. 2. Defective equipment was scrapped and new water leak detecting equipment was purchased. The new equipment provides water leak detection, electronic pressure monitoring, metal pipe localization and identifcation of lids covered by road public works. 3. The department arranged a cooperation with the Eptisa consulting specialists for the providing of flow-pressure data in several territorial administrative units, the data being needed for the design of new networks or extensions of existing ones. 4. New SCADA flow measurement points were created by the installing of ISOIL flowmeters in Tg. Frumos on main water pipeline no. 2 (“Fir 2”), in the Belcesti pumping station, on the pumping pipe, on Timisesti DN600 towards the Pacurari pumping station input and on the Ciric tank input. 5. The personnel was involved in various training cours- es such as: the course held by ADECCO, the water loss detection contest in Tulcea, the Bucharest workshop named “The Detectives of Lost Water” organized by UTCB (Bucharest Technical University) the Hydro-tech- nics Department and Aquademica Timisoara. 6. Has been provided the continuous monitoring and maintenance of insertion flowmeters mounted on water network, in order to provide permanent and accurate information towards SCADA systems, as regards flows passing through measurement points.

89 The Siret Operational Sector

Operating area The Water- The operating area of the Siret Operational Sector comprises the town of Pascani Sewerage/Iasi and the localities Motca, Harmaneşti, Todireşti, Stolniceni Prajescu, Mogoşeşti- County Area Siret, Lespezi, Siretel, Miroslovesti, Ciohorani, Halauceşti and Mircesti. Personnel structure: Department Total employees in the 2017: 57 persons.

Length of managed networks: The Siret Operational Sector operates main water pipelines and distribution networks of a water, plus sewer networks in localities, as follows: - Water supply networks: 50,074 km; - Water distribution networks: 193.86 km; - Sewer systems: 87.59 km.

User data: - Number of users benefting from water supply services (contracts): 11,881 - Number of users connected to sewerage network (contracts): 3,676

Activities carried out for provision services within operating area

90 OPERATIONAL DIRECTORATE

leaks; • Remedy of damages/failures that occur on main water pipelines and distribution networks; • Reinstatement of worksites after completion of works for failure repairs; • Maintaining and calibrating the network surveillance/ monitoring systems

In year 2017 a number of 1,670 intervention works were on the water distribution networks within the operation area of the Siret Operational Sector. Water supply services Taking over of wastewater from public sewer In 2017, the operation of water systems involved the networks following activities: In 2017, the processing of wastewaters from all • Catchment, pumping and distributing water at quality users meant the execution of the following levels in compliance the regulations in force; activities: • Optimal maintenance of facilities: pumping stations, • Ensuring the continuity of collection of wastewater treatment plants, main water pipelines, distribution discharged by all users connected to the sewer networks through execution of maintenance and network sewer by declogging obstructed sewers; repairs; • Maintenance and repair works on sewer pipes • Creation and maintenance, in the water catchment (collapsed or damaged connections); areas, of sanitary protection perimeters with severe • Sewer collectors cleaning, declogging and washing; access regime; • Removal deposits from sewers, manholes and siphons • Intervention in due time in case of notifcations/ in order the clogging of sewers. complaints from users, in reference to water parameters; In 2017 a number of 1,325 intervention works were • Replacement of worn-out networks sectors; executed on sewer networks within the operational area • Reinstatement/replacement of worn-out connections; of the Siret Operational Sector. • Checking of network tightness and detection of water

91 Wastewater treatment The Prut-Barlad Operational Sector In 2017, the operation of Wastewater treatment plants implied the completion the following activities: Operating area:Prisacani, Ţutora, Voineşti, Horleşti, • Treatment of all wastewater conveyed via the sewer Raducaneni, Gorban, Moşna, Vladeni, Andrişeni, Sipote, network and sludge treatment, with full compliance to Plugari, Fântânele, Bivolari, Ţiganişi, Probota, Trifeşti, all standards and norms in force; Tibanesti, Ipatele, Mironeasa, Tansa, Dagita. • Monitoring of treatment process via tests conducted within the wastewater test laboratory; Water/Sewer Connections • Compliance with requirements included in Total, as of 2017: environment and water management permits; - water connections – 12,715 • Keeping in proper operation all installations, - sewer connections – 1,339 machinery and equipment within Wastewater Treatment Plants; Recorded damages/failures • Providing and efciency and safe sludge management During 2017 there was registered and repaired a number 478 failures, of which 463 in 24 hours, 11 in 48 hours, 4 in Investments completed in 2017 72 hours and 0 in over 72 hours; In 2017, the following investment objectives were completed: Taking over of water supply systems • Str. Garii – replacement of water pipelines and Replacement works: reinstatement of 80 connections, Distribution networks • on a length of 1236 m. Execution of a PVC sewer - Dagata commune network, Dn 250 mm, length of 216 m and a sewer - Gorban commune network with Dn160 mm over a length of 36 m, plus - Raducaneni commune number of 41 connections. • Str. C. Petrescu - laying of a water pipeline a length Taking-over of water/sewer systems and of 219 m in order to remove pipes that were crossing wastewater treatment plants: private property (garage area) and reinstatement of • Sipote commune- sewer system and wastewater 18 connections. treatment plant • Interconnection of the new water pipeline layed on • Bivolari commune - Bivolari wastewater treatment Str. Stefan cel Mare with distribution networks in plant streets: Vatra, Lt. Ionescu, Walter Maracineanu, V. • Solonet wastewater treatment plant Ţepeş and M. Busuioc • Plugari commune - Water Supply System, Boroşoaia • Reinstatement of 95 connections on Str. Stefan cel village Mare

92 OPERATIONAL DIRECTORATE

• Sewer system and wastewater treatment plant Belceşti commune, Butea commune Boroşoaia b) sewer networks: the town of Podu Iloaiei • Voinesti commune - water supply system in localities Bogdaneşti, Scoposeni, Horleşti Taking-over of water supply systems: Movileni commune, with villages of Movileni, Larga Jijia, Potangeni, Iepureni, The Bahlui Operational Sector Belceşti communes, Liteni and Ulmi villages, town of Podu Iloaiei, Holm village, Baltati commune, Sârca Operating area: Hârlau, Podu Iloaiei, Târgu Frumos, village, Costeşti commune, Cotnari commune, the village Bals, Baltati, Belcesti, Braesti, Butea, Ceplenita, Coarnele of Luparie, Hodora, Iosupeni and Bahlui, the Scobinti Caprei, Cotnari, Deleni, Doljeşti (Neamt), Dumeşti, commune, Zvarici village, Doljeşti commune - water Erbiceni, Focuri, Gropnita, Ion Neculce, Lungani, Rachiteni, extensions. Romaneşti, Scobinti, Strunga, Movileni, Costesti. Taking-over of sewer systems, and wastewater treatment Water connections / sewer connections plants: Dumeşti commune, with villages Dumeşti and Total as of 30.12.2017: Păşeşti, Baltati commune, with Baltati village, Erbiceni - water connections - 19,438 commune, Erbiceni and Barlesti villages, Strunga - sewer connections – 2,502 commune, with Strunga village.

In 2017, the following were took over: - 1,501 water connections - 536 sewer connections

Recorded damages/failures In 2017 were registered and repaired a total of 1,990 damages, of which 1,989 in 24 hours, 1 in 48 hours, 0 in 72 hours and 0 over 72 hours.

Replacement works a) water distribution networks: the towns of Podu Iloaiei and Tg.Frumos, Lungani commune, Baltati commune, Deleni commune, Braesti commune, Dumesti commune,

93 I’m a Commercial Director since July 2016, but I coordinate the commercial sector for over 20 years. A difcult to manage sector, sometimes exhausting, with lots of arguments with clients that do not pay their bills or with those that infringe law, by clandestinely using our services. In fact I strive to keep the balance between the need for receipts and social constraints determined by the applying of the unpopular measure represented by water cutofs.

With tact, relying on my great experience, but on law in force, I faced people with great pride, who were looking for “cracks” in anything. On the other hand, a real challenge was to make my collaborators to believe in the same values as myself, to make them support the culture of the company, the need for quality and full compliance to assumed standards. I succeeded that at the end of 2017 weto have a production with more than 95% of the amount of water billed and a metering rate of 99.93%. And all

94 COMMERCIAL DIRECTORATE this despite the the expansion of operating area and the people because otherwise I do not see how one you increasing mobility of our personnel (a somehow normal could work with them and for them. I have patience, I phenomenon). know how to listen and, especially, I know to be present. The Commercial Department has been a school Models, diagrams, schemes, anything can be found on the for many members of this family called ApaVital. People Internet, but the great talent is to make all this to become come, learn, grow and leave for positions with higher helpful in your daily work. responsibilities but paradoxical (seemingly) lower stress. Romeo Casian You have to like what you do, and you have to understand Commercial Director

COMMERCIAL DIRECTORATE

CONTRACT COMMERCIAL MARKETING COMMERCIAL MONITORING DEPARTMENT PROCUREMENT AND PUBLIC DEPARTMENT METER AND IASI BUREAU RELATIONS IASI COUNTY WORKSHOP MANAGEMENT METROPOLITAN AREA DEPARTMENT AREA DEPARTMENT

95 Structure of Commercial Departments Iasi Metropolitan Area Commercial Department Commercial Iasi City and neighboring communes: Leţcani, Ciurea, Bârnova, Tomeşti, Holboca, Aroneanu, Valea Lupului, Rediu, Miroslava and Popricani. • Iasi North Commercial Sector Department • Iasi South Commercial Sector

Iasi County Zone Commercial Department - the remainder of localities and communes within operating area in Iasi County and localities in Neamt County, through which the main Timisesti water pipeline passes. • Bahlui Commercial Sector • Prut-Barlad Commercial Sector • Siret Commercial Sector

Activities performed within the Commercial Departments 1. Contracting of water supply and sewerage services • Receiving documentation for contract drafting • Drawing up of contract • Signing of contract by user • Registering in computer system • Contract archiving at sector level

2. Meter reading and consumption billing • Meter reading (consumption) • Transmittal of reading and recording in CROS • Verifying and validating consumption • Calculationa for recorded consumption • Checking of reports for bill issuing • Bills - Issuing and sending to client

3. Cashing of debts from defaulted debtors • User notifcation • Issuance of water cutof order • Issuance of disconnection/pipe cutting order • Provision of data for case fle drawing up 96 • Cashing of debts and legal fees COMMERCIAL DIRECTORATE

4. Replies to petitions/complaints concerning commercial each user being assigned an identifcation code, this activities allowing easy use of data for bill issuing, reporting, etc. • Receiving petitions / complaints via the Input-Output Register Contracting procedures in condominiums • Collecting of needed information in oder to draft In condominiums there are several types of contracting: answers • Contract concluded with the collective user – owners • Drafting of responses to petitions / complaints association (Article 31 of Law 241/2006) • Verifying the responses drafted by the heads of - operator does not have responsibilities downstream the departments connection meter; • Sending the response towards clients - the purchase and installation of cost allocators (apartment meters) is the responsibility of the residential Types of users spaces or non-residential spaces owners; • economic operators; - the cost allocator readings and the distribution of the • public institutions; consumptiona recorded by connection meter is the • users in individual households, natural persons; responsibility of owners association; • collective household users, owners/tenants associations with legal personality • Contract concluded in own name (Article 28 of Law 241/2006) Meter reading and consumption billing - the apartment owner made a meter connection, • Metering rate: Iasi Metropolitan Area Commercial upstream of condominium connection meter ; Department - 99.99% - 3 non-metered users, improper - The operator has no responsibilities downstream the technical conditions meter. • Iaşi County Commercial Department: 99.87% - 59 nonmeteres users, water networks through private • Individual contract with vertical distribution or individual property contract with horizontal distribution (Article 31 of Law • Reading of consumption indexes 241/2006) - is carried out by 58 agents, as follows: - the purchase and the installation of water meters on - monthly – at economic operators, public institutions, a residential unit is the responsibility of the owners collective household clients, owners / tenants residential or non-residential spaces, with the operator›s associations with legal personality; approval. - half-yearly - to individual households, natural persons; - the operator reads water meters and issues bills for • Direct reading is used for 76,933 meters - 93,70% the entire residential unit. The difference between the • Remote reading is used for 5,399 meters - 6.30% consumption recorded by the condominium connection • The recording of water consumptionf gures is electronic, meter and the sum of individual consumptiona is alloted

97 by operator equally to each residential unit. (economic agents and public institutions) according to - the operator has no technical responsibilities ARSACIS Decision no.13 / 05.11.2010. (maintenance, repairs, replacements, etc.) as regards the • The price of rainwater sewerage service is clearly building inner installation, after the connection meter of distinguishable in the bill issued for water consumption the building. and sewerage services.

• Conveying of rainwater • The rainwater sewerage service is billed to clients Billed volumes, meteoric water, January-December

Mth Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017mLUNA3 2017103,800IANUARIE 142,394FEBRUARIE 175,461MARTIE 405,129APRILIE 679,756MAI 550,244IUNIE 372,504IULIE AUGUST365,484 2SEPTEMBRIE91,095 OCTOMBRIE130,983 NOIEMBRIE338,620 DECEMBRIE193,994 mc 103.800 142.394 175.461 405.129 679.756 550.244 372.504 365.484 291.095 130.983 338.620 193.994

Activity report 2017 Commercial dept. Iasi Commercial dept. Iasi Activity Total Metrop. Zone County Zone

Billed physical production (million 3m ) 21,829,487 6,042,850 27,872,337

Billed production as value (million lei) 135,298,464 29,538,749 164,837,213

Cashed production as value (million lei) 128,294,756 28.888.617 157,183,372 Cashed/billed (%) 94.82% 97.79% 95.35% Active managed contracts 33,986 46,012 79,998 New contracts 2017 2,892 4,107 6,999 Consumption locations 37,208 46,715 83,923 Metering rate (%) 99.99% 99.87% 99.93% Issued bills 204,659 241,841 446,500 Petitions/complaints 1,258 1,013 2,271

98 COMMERCIAL DIRECTORATE

• Management of the company’s meter stock; • Replacement, repair and adjustment of water meters according to The Meter metrological specifcations; • Preparation and follow-up of meter replacement and verifcation schedule in accordance with legal provisions regarding the duration of Workshop • Meters metrological validity; • Ensuring the management of meter seals; • Meter preparing (cleaning, re-calibration, adjustment) in order to carry out the metrological verifcation within the company’s Metrology Laboratory; • Replacement of water meters for which defciencies were reported (blocked, illegible, damaged…. etc.); • Preparation of work progress reports occasioned by unexpected events such as: seal breakage (voluntary/accidental), modifcations on water connections as requested by users (resizing, mounting of by- pass meters etc.), damage to meters being in settlement with users and costs attributable to them and in any other similar cases including tracking and collecting the value of bills issued until the expiry of the due date as foreseen by law in force; • Identifcation of meters that are likely to indicate erroneous values and their submittal to the Metrological Laboratory for metrological verifcation or resizing and replacement; • Market research in order to identify new types of meters with performances superior to those used by the company, and pre- equipped for remote reading; • Mounting of remote readable meters and ensuring their maintenance; • Resizing and replacing existing meters in order to optimize the ratio between meter size and actual consumption of users, in order to diminish commercial losses; • Performing a permanent activity as regards the mounting pf meters with a superior accuracy class; • Participation in the development and the implementation of a Leak Reduction Program;

99 • Checking the compliance of meters installation Measures for reducing water losses conditions a water meters listed in approval models The Meter Workshop implements the following issued by the B.R.M.L. authority in the case of works measures: carried out by personnel; • Resizing and replacing of existing water meters, in order • Notifying users about the data and periods of to optimize the ratio between meter size and actual users temporary water cutofs in case of meter replacement, consumption, with the purpose of diminishing commercial in accordance with the legal provisions in force; losses; • Honoring all orders received from clients as regards • Running a permanent activity regarding the installation the septic pits emptying and sewer declogging and of upper accuracy class meters washing

Work environment 2017 in figures Served area: localities in Iasi and Neamt counties - Meters replaced according to Order no. 148/2012 • Connection meters: ~ 86,000 issued by B.R.M.L. authority (valid metrological • Radio modules for remote meter reading: ~ 5,000 pcs. verifcation) - 9,465 units - Meter resizing - 159 units User categories • Refurbished meters - 7,503 units (recovery rate, • Individual users - homeowners 97%) • Tenants / owners associations • Mounting of radio transmitter modules - 1,000 units • Economic agents (industries), public institutions • Revenue from replacement of meters damaged by • District heating stations, heating units and thermal users’ fault - 91,430 lei modules • Rates for honoring or unlocking commands of channels within 72 hours of reception - Types of used meters 99.35% Meters, diameters: • Revenues from septic pit emptying vacuuming and - Meters with diameters (DN) between 15 and 40 mm declogging operations -721,000 lei (expenditure, represent a proportion of 85% (Class C accuracy), 355,795 lei) - Meters with diameters (DN) 50 mm represent a quantum of 60% (Class B) and 40% (Class C).

100 COMMERCIAL DIRECTORATE

Administrative Contracts Bureau Throughout 2017, this Bureau supervised a number of 377 con- Contract tracts, out of which: - 83 contracts for products supply; Management - 203 service contracts; - 91 works contracts.

Department Commercial Contracts Bureau This Bureau deals with receiving and storing goods in the Cen- tral Warehouse, and as well with their release towards the benefciaries from ApaVital. The Central Warehouse is divided into 5 administrations in Iasi and one administration in Tg. Frumos, where all supplied goods come in. Also, the bureau prepares the entry documents (N.I.R.) for all goods and also those needed for their release. Each administration is served by a manager. Also, the bureau has two machinery operators and a manipula- tor, which help to unload or deliver the goods. Within the bureau, the goods are received, occasion when their price and quality are verifed. Another verifed element is delivery dead line according to the SEAP procurement made by the Procurement Bureau or the one stated in contractual terms within concluded contracts. In case of any inconsistency, the supplier is contacted and asked to solve the situation. In 2017, a total of 22,519 items were delivered to the Central Warehouse and 84,125 items were released. .

101 Public procurement procedures Number of public procurement procedures: 63 The Procurement Number of concluded contracts: 98 Bureau Submitted bids: 325 Direct procurement Direct procurement form type Total requests/ Parameter items F547 F267 Items requests, direct procu- 1,561 765 2,326 rement Items no. 6,471 2,135 8,606 Percentage items no. out of 75.19% 24.80% 100% items total

Percentage per form type out 67.11% 32.88% 100% of total requests

1,421 718 2,139 Product requests (91.03%) (93.85%) (91.96%)

24 8 32 Works requests (1.53%) (1,04%) (1.37%)

116 39 155 Services requests (7.43%) (5.09%) (6.67%)

102 COMMERCIAL DIRECTORATE

Marketing activity is a constituent part of the Apavital management policy, which fnds its justifcation, frst of all, in increasing the economic The Public efciency of the market activity, such a desideratum being reachable only in the conditions of a correct substantiation of decisions, and sound Relations and execution and control of each marketing actions. The proposed strategies for marketing mix components are price strategies, product strategies, distribution and promotion strategies, social responsibility strategies, and Marketing internal communication strategies. By means of marketing activities, a set of practical actions, staggered in time and space, with the indication of the Department responsibilities, the resources involved in the individual development, as well as the overall activity, are all incorporated in a coherent and unitary The Public Relations and Marketing ensemble. ApaVital’s main marketing goals for 2017 were to increase the Department aims to achieve marketing company’s visibility, to enhance the customer orientation, to generally objectives such as the increasing improve the company’s image and to attract new clients. The targeted of company’s visibility, ensuring audience was represented by the users of water and sewerage services customer orientation, improving the company’s image and attracting provided by Apavital within the company’s operating area. The position new customers, through marketing we wanted on the market was that of a responsible company thatable activities, communication events, to provide high quality water services, by means of a continuous water social responsibility actions, press supply regime. conferences, participation in fairs and exhibitions, branding activities and I. Public relations activities communication with the media. On The communication with clients is carried out by telephone, via the customer relationship sector, the the Contact Center, directly at the desk or in writing, through classic mail PRM department ensures the interface and via electronic mail. between the ApaVital departments The Contact Center: The place where clients notify by phone all and the public, in order to promptly malfunctions that occur into the water or sewerage networks by phone, can solve the clients, potential clients and provide the self-readings of water meters, ask for bill-related information usersrequests (individuals and legal or information related to permits issuing and technical projects. on invoices entities), requests entered via phone cales, e-mail, in writing or directly at and how to get endorsements and drafts. Water cut-ofs are notifed to the desk. clients via the Contact Center by means of channels such as the SMSender department, the web pagea, press releases, telephone notes. Below, some fgures related to this department: • 160,417 recorded phone calls, out of which 104,144 incoming calls • Average answer time for phone calls: 5.14 seconds 103 • Calls taken in a max 30 seconds period - 98,026 (98.90%) that can not be solved directly by the other departments. * Average call time per call: 1.43 minutes In 2017, 252 clients requested such appointments. • 2,544,937 SMS sent to clients • Number of water cutofs notifcations posted on website II. Marketing activity - 1.389 The management of marketing activities is a priority for companies that provide public water and Desk: Clients can get in touch directly with sewerage services and which intend to perform at high Apavital employees, who assist them in completing standrads. In order to achieve this goal, ApaVital quickly standard forms, submitting documentation, or indicating adapted to the recent challenges posed by the modern the easiest way to solve water/sewage problems. In informational society, all related to the growing demands 2017 a number of 34,403 direct contacts with customers of clients. Words or phrases such as “marketing,” “brand,” occurred in Apavital. or “social responsibility” have found their place in the company’s organizational culture, becoming part of a By mail: Petitions and notifcations received from common language. The implementation of the new clients are carefully monitored in order to to prepare and directions of action has added value and has developed submit replies within legal deadlines. By e-mail, clients an awareness of a community membership status and, can forward their water meter readings or complaints hence, the clients’ perceptions have begun to change. to addresses [email protected] and contact@apavital. Therefore nowadays ApaVital has the image of a ro, while the address [email protected] is dedicated responsible company, with the capability to be a strong exclusively to notifcations related to failures/malfunctions and efective local partner. in the distribution network. In 2017 a number of 4,680 written and electronic correspondence documents were Branding: Visual elements, such as the logo, the processed. slogan, the icon, have become permanent on any building or vehicle, while modifying and giving backgroundshape Webpages: Clients beneft from information to all other transmittal vectors that carry the company’s about events, scheduled works, other public interest messages, regardless of their form: printed or virtual. By issues, information available on the company’s website, means of this the following objectives were reached: www.apavital.ro. • Replacing an unfavorable image in the community’s public conscience; Appointments of clients with Apavital executive • Increasing the responsibility of each employee and their officials: It is possible for clients, in an organized and attachment to the symbolistics of identity elements; scheduled arrangement, to directly meet the company’s • Prints standardization; executive ofcials in order to talk about complex issues • Decreasing corruption by personalizing the work

104 COMMERCIAL DIRECTORATE equipment at work places and by marking all Apavital The press conferences, with pre-defned tipics, vehicles; related to positive events in ApaVital’s life or those that • Creating a specifc culture based on brand’s elements. want to solve crisis situations generated by unwanted events, are periodically arranged by the company’s Social responsibility: The internal dimension executive ofcials. Such actions, if well prepared, can towards its own employees, and the external dimension radically change the vision of opinion makers. Another applied to clients have created social responsibility efective way of approaching the press relationship is the themes. Therefore the marketing activity is fnding its work through communiques and points of view expressed usefulness in areas of action that positively influence through the Apavital spokesperson. the competitive advantages, the company’s reputation in the community, the relationship with the territorial The web page has also become an efective administrative units, with clients or various other communication tool, as the number of Internet users stakeholders. Social responsibility has thus created a has increased exponentially. The ApaVital website signifcant potential for public relations actions as „Open provides the mandatory information provided iby Law Gates” actions or partnerships with educational or cultural 544/2002 on access to public information (general data, institutions, so that ApaVital values can be engraved budgets, balance sheets, activity reports, investment in younger generations who will form the tomorrow’s data, procurement data), whichand almost completely clients. In 2016, a number of 1,881 persons visited our replaced the classical printed wall billboards. Webpagea head-quarters and facilities (water plants and wastewater allow also the downloading of standard forms, viewing treatment plants) water quality parameters on monitored areas, and also also planned cutofs are notifed on the webpages. Promotional actions in public space: The main ways of communication used by ApaVital, which proved ApaVital’s presentation materials take on the their usefulness in time, are the media, the web pages most varied shapes, each person’s imagination being the and the presentation materials. The relationship with only limit to the choice of type, size, shape or support. the press, one of the main opinion-forming vectors, is Starting with flyers that can accompany bills or enrich the approached in an unitary way, all contacts being managed stalls from public access points in the company’s ofces, through the Public Relations Bureau. The attending of continuing with social responsibility tab-like messages, TV live broadcasts by Apavital executive ofcialsm in located at visible key points and ending with various programs devoted to city’s life is also an efcient form of promotional media, presentation is the support of any popularization of Apavital’s activity. more complex public relations actions.

105 Keeping the clients informed: By accessing the degree of satisfaction was present among the persons company’s website, ciients can see from the frst page that responded the questions. information about the ApaVital mission, announcements and information, communications, water cutofs MARKETING schedules, events, the results of drinking water physic- - Total number of social responsibility actions - 52 chemical tests inside Iaşi city, implemented investments, - External arranged events - 42 provided metrological servicea, information on Pascani - Internal arranged events - 10 Town, client meter self-readings, national water-sewerage - Number of press releases posted on the ApaVital website - 40 tarifs. In 2017, out of a total of 2,243,808 views per portal, - Number of posts on the company Facebook page - 423 the most viewed page was “My bill” page - 487,619, - Number of submitted newsletters: 1,158 followed by the home page – 382,747, login page - 364,570 and news page - 266,657 views. It is to be said EXTERNAL COMMUNICATION ACTIVITIES that ApaVital has constantly informed their clients, both by telephone and other means of information, on how ApaVital celebrated World Water Day bills can be paid. This was achived by messages printed World Water Day was celebrated by ApaVital on the bills reverse, flyers joined to bills, Facebook video through a series of social responsibility activities over clips, Facebook infographs, and postings on the Frequently several days, with hundreds of school students and teachers Asked Questions webpage. involved in various activities such as visits to ApaVital in Iasi and Pascani, competitions between highschools and street Opinion poll: In August 2017, the Romanian information campaigns organized in partnership with various Institute for Evaluation and Strategy (IRES) conducted a institutions. On March 18th, the project “Gifts of the Earth research on the perceived quality of ApaVital provided - Water and Forest”, 5th edition, organized in partnership public services (for individuals). Therefore 1383 with the Children’s Palace in Iasi, involved preschoolers, questionnaires were submitted to the ApaVital clients in the following areas: Iasi City, the towns of Pascani, Tg.Frumos, Harlău and Podu Iloaiei and the 60 communes that beneft from the ApaVital services. The sample was representative for the populationf de ned within the geographical area served by ApaVital. The data collecting was carried out by phone and the responses were recorded by the operators on computers (CATI method - telephone and computer based interviews). At the level of the entire sample (subjects from Iaşi County, in localities served by ApaVital), the result was that a rather high

106 COMMERCIAL DIRECTORATE schools students from primary grades, gymnasium and highscools from 22 counties and Bucharest City. In this contest, which was divided into four sections (drawings, collages, posters, projects), children brought 392 works (children from 71 educational institutions). The activities continued with a visit to the Dancu Wastewater Treatment Plant. On Wednesday, March 22, a children’s team from the Children’s Palace organized a street information campaign on the route Copou (ApaVital headquarters) - University - Children’s Palace - Piata Unirii, and distributing to the public balloons and flyers with information on the World Water Day theme. On the same day, a group of children from the “Mihail Sadoveanu” National College of Pascani visited the Pascani Water Plant. Wednesday, March 22nd, 2017, exist in trafc.” ApaVital supported this event, organized the “Ion Creanga” Branch of the Gheorghe Asachi County on the occasion of the Romanian Police Day, by installing Library in Iasi hosted the fnal stage of the “Water and Arts” hydration points, thus providing drinking water to all the contest, 3rd edition, for high school students in Iasi County. bicycle enthusiasts. Over 200 cyclists attended the event. Ranking: 1st place - the team from “Emil Racoviţă” National College Iasi, 2nd place - the team from “Vasile Lupu” ApaVital Iasi, partner at Iasi Semi-marathon Pedagogical College Iasi, 3rd place - the team from “Mihai ApaVital supported as a partner the Iaşi Semi- Sadoveanu” National College of Pascani. Involved, there marathon 2017 project, a sports event held on Sunday, were also teams from the “Garabet Ibraileanu” National April 23rd, 2017. ApaVital participated in this event both College, the “Costache Negruzzi” National College, the Administrative Economic College no. 1, the “Alexandru Ioan Cuza” Theoretical High School and the “Vasile Alecsandri” Theoretical High School from Iasi.

ApaVital: supporter of the Romanian Police Day Cycling March The Iasi County Police Inspectorate - Trafc Department and the Iasi Municipality organized on Saturday, March 25th, 2017, a cyclist march with the purpose to send the message “CHOOSE LIFE! Bicyclists

107 in the contest with 7 runners enrolled in the 21 km semi- ApaVital, partner at the National Session of marathon trials and the 10 km crosscountry trials and as Scientific Papers and Communications a partner, providing much of the amount of water needed On May 20th, 2017, at the „Ştefan Procopiu” to hydrate the over 1200 athletes of all ages who have run Technological Highschool for Mechanics and Automation for this contest. ApaVital also provided some of the prizes of Iaşi, the „National Session of Scientifc Papers and awarded to winners. Communications for Professional and Technical Education “Ştefan Procopiu” was held, event included in the National ApaVital supported the International School Calendar of Scientifc Papers and Communications, within Theater Festival “Theater under the chestnut trees” the event named “Days of Iasi School”. On this May day, Apavital, as main sponsor, supported the 8th ApaVital, as a partner, was again with the school students edition of the International School Theater Festival from Iasi schools and some schools in the country, at the “Theater under the chestnut trees”, which took place 19th edition of this national contest. April 19-23, 2017. The event was organized by the National College “Mihai Eminescu “, where students and teachers from all around the country - Timişoara, Baia Mare, Cluj- Napoca, Gura Humorului, Galati, Slobozia, Pascani and, of course, Iasi. This year, for the frst time, special guests were invited - a theater group from the “Mihai Eminescu” Theoretical High School from Balti, Republic of Moldova.

I know and apply ApaVital, as a partner, participated in the National Competition “I know and apply, Occupational Security and Health is to be learned from school “, 5th edition, organized by the “Gh. Asachi” Iasi Technical College, the Labor Inspectorate and the Iasi Territorial Labor Inspectorate. The competition took place on May 26-28, 2017. The

108 COMMERCIAL DIRECTORATE competition was organized on 5 sections: theoretical Gane and 150 Years of “Convorbiri literare” within superior, theoretical inferior, technical superior, technical project “Nicolae Gane and the modernization of Iasi in an inferior and professional (the participants were 186 European context “. The representative of ApaVital spoke school students and 49 teachers from 31 counties. to the audience about the importance of the Iasi-Timisesti main water pipeline and about the role of mayor Nicolae Visits to ApaVital facilities Gane in the completion of this project. At the end thef lm Within the practice and laboratory activities of Iasi “Clear, good and cold water” was presented. education institutions, over than 1,880 school students, university students, professors and teachers, both ApaVital participated in the first edition of the Romanian and foreign, have visited the water plants of International Engineering Career Fair Iasi, Timisesti and Harlau and the wastewater treatment On 9 and 10 November 2017, ApaVital participated plants in Dancu, Pascani and Târgu Frumos. The pumping in the International Fair of Engineering Career, organized stations in Iasi and the Timisesti and Prut water catchment by the “Gh. Asachi” Technical University of Iasi. The event systems have also shown interest for the public. took place at the Department of Chemical Engineering and Environmental Protection. Students who were interested in a job in our company had the opportunity to receive all necessary information from the our Resources personnel.

ApaVital - partner in project “Nicolae Gane and the modernization of Iasi in European context” On September 28th, 2017, ApaVital participated as a partner of the “Vasile Adamachi” Agricultural and Food Industry College in Iasi at conference “Nicolae

109 Partnership: ApaVital -”Emil Racovita” National College Between 17th and 19th of November, the 9th edition of the “IaşiMUN” Conference took place at the “Emil Racoviţă” National College in Iaşi. MUN (Model United Nations) conferences are organized around the world and are internationally recognized as the most vibrant and educational activities through which school students are introduced into a formal debate environment.

Horpaz, Uricani, Iaşi, Rediu and Valea Lupului. The old man’s efort was rewarded with ... 150 smiles.

INTERNAL COMMUNICATION ACTIVITIES

The ApaVital Chess Cup The third edition of the ApaVital Chess Cup took place on February 17th and brought together 12

This year 163 high school students from Iaşi, Republic of Moldova and the country attended this event.

Christmas presents Santa Claus visited ApaVital, flled his bag with sweet gifts and swiftly, on snowy roads, went to the good children in Scobâlţeni, Budăi, Podu Iloaiei, Răchiteni, Tg.Frumos, Buznea, Belceşti, Horleşti, Scoposeni, Bogdăneşti, Zaboloteni, Hermeziu, Trifeşti, Pascani,

110 COMMERCIAL DIRECTORATE participants at start. The matches took place in a Swiss awarded by drawing lots. system, during 6 rounds. The Tennis ApaVital Cup Water Cross, 3rd Edition Between May 29th and June 9th, 2017, the third On Saturday, May 20th, 2017, about 80 people edition of the “ApaVital Cup” tennis tournament with were present, as competitors or supporters, at the 3rd single and double men’s tournaments took place. There edition of the Water Cross, a competition reserved to were 22 employees in the singles and 16 in the double ApaVital workers and their children. The races took place men’s trial, the matches taking place on clay.

The Water Road On Friday, September 8th, 2017, the second edition of the bicycle competition took place onthe shores of Lake Chiriţa. The participants had to travel two laps around the lake, that is a distance of about 15 km.

The Bowling ApaVital Cup On November 25th, the CFR Sport Complex in Iasi hosted the frst edition of the ApaVital Bowling Cup. 15 competitors participated in the male trials and 6 in the female trials. on several age ranges, females and males / girls and boys, and the routes had diferent lengths. Retirees Day For 37 of our colleagues, 2017 was the year of ApaVital Day retirement. As a token of appreciation for their work On July 20th, 2017, over 150 ApaVital workers were perfomed within the company, the Human Resources present at the Chiriţa Lake in order to celebrate together Department organized in mid-November a new edition of the Day of the Water and Sewerage Utilities Worker. The the Retirement Celebration, that reached its 5th edition. champions have been awarded were tose from the last year’s ApaVital competitions: bicycle race, table tennis The ApaVital Table tennis Cup (simple and double), chess, running, tennis (single and In December ApaVital organized the third double) and football. A raffle was also organized and the edition of the ApaVital Table Tennis Cup, attended by 24 10 lucky ones went home with the big prizes, namely 5 competitors for the singles trials and 10 teams for the Lenovo tablets and 5 LG 4K smartphones. A number of double trials. 84 promotional items with ApaVital logo have also been ROGER GRAPHIC DESIGN GRAPHIC ROGER

6, MIHAI COSTĂCHESCU STREET 700495, IAȘI, ROMÂNIA Contact Centre: 0232.969 [email protected] www.apavital.ro Copyright ApaVital S.A. - all rihts reserved • Photo: ApaVital archive • Text: ApaVital • Graphics and editing: • Graphics ApaVital • Text: archive ApaVital • Photo: S.A. reserved ApaVital - all rihts Copyright