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Master's Thesis Submitted by Nibal Najjar Supervised by Dr. Nidal Mahmoud 2018 Assessing the Governance and Designing a Succes

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Master's Thesis Submitted by Nibal Najjar Supervised by Dr. Nidal Mahmoud 2018 Assessing the Governance and Designing a Succes Assessing the Governance and Designing a Successful Utility Reform for Jerusalem Water Undertaking M.Sc. Thesis Birzeit University Faculty of Graduate Studies Water and Environmental Engineering Masters Programme Master’s Thesis Submitted By Nibal Najjar (Student No. 1095414) Supervised By Dr. Nidal Mahmoud 2018 تقيمي احلكوةم تصممي برانمج اصﻻح انحج ملصحة ميه احهظة اققس رســـــهةل مهجســـــتري Assessing the Governance and Designing a Successful Utility Reform for Jerusalem Water Undertaking M.Sc. Thesis Birzeit University Faculty of Graduate Studies Water and Environmental Engineering Masters Programme Master’s Thesis Submitted By Nibal Najjar (Student No. 1095414) Supervised By Dr. Nidal Mahmoud January 2018 تقيمي احلكوةم تصممي برانمج اصﻻح انحج ملصحة ميه احهظة اققس رســـــهةل مهجســـــتري This thesis was submitted in partial fulfillment of the requirements for the Master’s Degree in Water and Environmental Engineering from the Faculty of Graduate Studies, at Birzeit University, Palestine. ` Abstract Successful public utilities are exception. Many water and sanitation utilities around the world are locked in a vicious cycle of declined performance and deteriorated assets which are generally the consequence of misdirected and ineffective policies, poor governance, and the monopolistic nature of the sector. Jerusalem Water Undertaking (JWU) is a regional water utility in Palestine established in 1966 that serves at present a significant part of Ramallah and Al Bireh Governorate, and other communities north of Jerusalem. It is financially and administratively independent and is governed by its own board of directors. And there is a medium to long term vision that the JWU service area will extend over the entire two governorates of Jerusalem and Ramallah & Al Bireh. Recently, in 2011, it was decided by the Council of Ministers to upgrade JWU by widening its mandate to sanitation services. The integration of water and sanitation services has led to a need to reconfigure JWU. This transition coincides with implementation of a comprehensive reform plan for the Water Supply and Sanitation (WSS) Sector in Palestine, whereby JWU would play a crucial role in. The purpose of this study is to assess the governance of JWU and design a successful utility reform of JWU by combining measures, with utility-focused steps, to improve the institutional environment and its interaction with the utility and to strengthen its internal functioning to enable it to efficiently expand its mandate to sanitation services and increase its scale and its geographical coverage. This work can be considered as a real start in JWU reform process triggered by the new mandate of JWU and a leadership at the utility level to contribute to the public sector reform agendas in a best-fit approach. The research will make use of the governance assessment tool and the utility analytical framework developed by the World Bank. This analytical framework is grounded on the principles of New Public Management (NPM) which is a direction in public sector reform that focuses on outputs. The analytical framework combines two principal perspectives. The first deals with the “external environment”, describing the institutional, economic, and social context in which the service provider operates. The second deals with the “internal functioning of the utility”, mostly oriented toward decision-making processes and management practices, and encompasses issues such as financing, strategic planning, management information systems, human resource management, etcetera. For v Abstract this, the framework uses various indicators proposed for assessing the dimensions of well-run utility: (i) external autonomy; (ii) external accountability; (iii) internal accountability for results; (iv) market orientation; (v) customer orientation; and (vi) corporate culture. The results of this research were drawn from a mixture of various sources, which included a desk review of literature including extensive review of public water utilities case studies, field research of the case study JWU, analyzing operational experience from professionals in the sector, and extensive participation in meetings with the relevant stakeholders in the sector. The diagnostic findings reveal that JWU has the capacity to initiate and absorb change related to the aggregation in terms of scope and scale which would involve taking over municipal wastewater departments nearby and the other smaller service providers, often underperforming and with significant infrastructure investments. The findings also indicated that the political economy is favorable with good prospects for the continuation of the present momentum of the JWU-donor-stakeholders collaboration towards reform. And in the core of the findings is that JWU has the characteristics of well-performing utility for the success of the process. However, some reform actions are required for further strengthening JWU in preparation to the aggregation process. ` اخلﻻص تعترب املراظق اقعهم اقنهحج اس تثنهء. ظهقكثري من مراظق امليه اقرصف اقصحي يف مجيع أحنهء اقعهمل احبكوس يف ححق مفرغ من ا لداء املتسهكور ا لصكول املتسهكورة اقيت تككون عهدة نتيج قس يهسهت خهطئ غري ظعهةل، سكوء احلمك )احلكوةم (، اقطبيع الاحتاكري لحقطهع. مصحة ميه احهظة اققس يه مرظق ميه اقحميي يف ظحسطني ت أسست يف عهم 1966 ختسم يف اقكوقت احلهيل جزًءا كب ًريا من احهظة رام هللا اقبرية بعض اقتجمعهت ا لخرى شامل اققس . يه مس تقةل مهقيه اداراي حيمكهه جمحس ادارة خهص هبه. هنهك ؤي رمتكوسط ا ىل طكويةل املسى قتكوس يع منطق خسم املصحة لمتتس ا ىل اكمل احهظةيت اققس رام هللا اقبرية. مؤخرا، يف عهم ، 2011قرر جمحس اقكوزراء تطكوير مصحة ميه احهظة اققس من خﻻل تكوس يع نطهق خسمهته اىل خسمهت اقرصف اقصحي. أدى دمج خسمهت امليه اقرصف اقصحي ا ىل احلهج ا ىل اعهدة تشكيل مصحة ميه احهظة اققس . يزتامن هذا الانتقهل مع تنفيذ خط ا صﻻح شهمةل ققطهع امليه اقرصف اقصحي يف ظحسطني ، حيث س تحعب مصحة ميه احهظة اققس د رًا ههمه ظهيه. اقهسف من هذ ادلراس هكو تقيمي احلكوةم تصممي برانمج ا صﻻح انحج ملصحة ميه احهظة اققس من خﻻل امجلع بني تسابري، مع خطكوات ترك ز عىل املصحة ، قتحسني اقبيئ املؤسس ي تفهعحهه مع املصحة تعزيز أداهئه ادلاخيل لمتكيهنه من تكوس يع نطهق خسمهته بشلك ظعهل ا ىل خسمهت اقرصف اقصحي زايدة جحمهه تغطيهته اجلغراظي . ميكن اعتبهر هذا اقعمل اقبحيث مبثهب بساي حقيقي يف معحي ا صﻻح مصحة ميه احهظة اققس اقنهمج عن تكو يل املصحة نطهق اخلسم اجلسيس قيهدة عىل مس تكوى املصحة لحمسهمه يف جسا ل أعامل اصﻻح قطهع امليه اقرصف اقصحي ظق هنج ا لكرث مﻻمئ . سكوف يس تخسم اقبحث أداة تقيمي احلكوةم ا لطهر اقتةحييل لحمراظق اذلي ط ر كواقبنك ادل يل. يرتكز هذا ال طهر اقتةحييل عىل مبهدئ ال دارة اقعهم اجلسيسة اقيتيه اجته يف ا صﻻح اققطهع اقعهم اذلي يركز عىل اخملرجهت. جيمع الطهر اقتةحييل بني منةكورين رئيس يني. يتنه ل ا ل ل "اقبيئ اخلهرجي "،يصف اقس يهق املؤسيس الاقتصهدي الاجامتعي اذلي يعمل ظيه مقسم اخلسم . يتنه ل اقثهين "ا لداء ادلاخيل لحمرظق"، اذلي يتجه يف اقغهقب حنكو معحيهت صنع اققرار ممهرسهت ال دارة، يشمل قضهاي مثل المتكويل، اقتخطيط الاسرتاتيجي، نةم املعحكومهت الداري ، ادارة املكوارد اقبرشي ، مه ا ىل ذكل. قهذا، يس تخسم الطهر مؤرشات خمتحف مقرتح قتقيمي ال بعهد اقتهقي اخلهص ابملرظق اقنهحج: )1( الاس تقﻻل اذلايت اخلهريج؛ )2( املسهءةل اخلهرجي ؛ )3( املسهءةل ادلاخحي عن اقنتهجئ؛ )4( اقتكوجه حنكو اقسكوق؛ )5( اقتكوجه حنكو اقعمﻻء؛ )6( ثقهظ اقرشك . اخلﻻص vii ت اس تخﻻص نتهجئ هذا اقبحث من خحيط من مصهدر خمتحف ، اقيت تضمنت مراجع مكتبي ق لدبيهت مبه يف ذكل مراجع شهمةل دلراسهت حلهةل ااخلهص مبراظق امليه اقعهم ، اقبحكوث امليساني دلراس احلهةل اخلهص مبصحة ميه احهظة اققس ، حتحيل اخلربات اقتشغيحي من املهنيني يف اققطهع، املشهرك اقكواسع يف الاجامتعهت مع أحصهب اقعﻻق املعنيني يف قطهع امليه اقرصف اقصحي يف ظحسطني. تكشف اقنتهجئ اقتشخيصي أن مصحة ميه احهظة اققس دلهيه اققسرة عىل بسء استيعهب اقتغيريات املتعحق ابقتجميع )ادلمج( عىل مس تكوى اقنطهق احلجم اقيت من ش أهنه أن تشمل الاس تحكواذ عىل ادل ائر اقبدلي لحرصف اقصحي اجمله ة ر مقسيم اخلسمهت ا لصغر ا آلخرين، اقيت كث ًريا مه يككون أدا ؤهه ضعيف ًه مع جكود استامثرات كبرية يف اقبني اقتحتي . أشهرت اقنتهجئ أيضه اىل أن الاقتصهد اقس يهيس مكوا ت مع جكود آأظهق جيسة لس مترار اقزمخ احلهيل لحتعه ن بني املصحة اجلههت املهحن أحصهب اقعﻻق من أجل ا لصﻻح. يف جكوهر اقنتهجئ، أن مصحة ميه احهظة اققس متتكل خصهئص املرظق اقنهحج قنجهح اقعمحي . مع ذكل، ظهن بعض ا جراءات ال صﻻح مطحكوب قزايدة تعزيز مصحة ميه احهظة اققس يف اقتحضري قعمحي اقتجميع. ` Dedication To my adorable parents, my ideal mama “Basema” and my faithful baba “Fawzi”… To my amazing brothers and sisters … To my wonderful family … To my homeland, Palestine … To Jerusalem Al Quds… To my hometown, Yaffa … To Birzeit University … To my workplace, JWU … ` Acknowledgements بسم هللا اقرمحن اقرحمي اقصﻻة اقسﻻم عىل س يسان محم س امحلس هلل يف ا ل ل يف ا آلخر )سكورة يكوسف، أآي 64( Again and again, my greatest thanks and gratefulness to my parents for their continuous support, endless love, non-stopping giving and encouragement. They have been my source of inspiration, strength and courage. I owe them everything! Special thanks to my lovely brothers and sisters and to their families my big family. I remain deeply grateful to Dr. Nidal Mahmoud for his generous support and the enormous encouragement, his inspiring words and thoughts, and his strong belief in my skills and capabilities. My appreciations are extended to the dean office of the Faculty of Graduate Studies, and to Birzeit University. And particular thanks are due to the Institute of Environmental and Water Studies, especially to the members of my MSc examination committee Dr. Rashed Al-Saed and Dr. Maher Abu-Madi. Abbreviations CARL Current Annual Real Losses CMWU Coastal Municipal Water Utility GIS Geographic Information System IEWS Institute of Environmental and Water Studies IWSR Institutional Water Sector Review
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