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Quarterly Report January - March 2016

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Quarterly Report January - March 2016 QUARTERLY REPORT JANUARY - MARCH 2016 PREPARED BY MANAGEMENT CONTRACTOR TABLE OF CONTENT 1. COMMERCIAL DIRECTORATE .................. 4 2. OPERATIONAL DIRECTORATE ................. 8 3. WATER REMOVAL DIRECTORATE ........ 33 4. ADMINISTRATIVE & FINANCIAL DIRECTORATE ................................................ 38 5. INTERNAL CONTROL DIRECTORATE .... 43 6. HUMAN RESEOURCE DIRECTORATE .... 47 7. QUALITY, SAFETY & ENVIRONMENT DEPARTMENT ................................................. 50 8. PUBLIC RELATIONS DEPARTMENT ....... 54 9. INVESTMENT PROGRAMS COORDINATION DIRECTORATE ................ 56 10. INDICATORS ............................................. 70 11. APPENDIX ................................................ 83 COMMERCIAL DIRECTORATE 1.1 Billing and revenue ................................................................................................................................................... 5 1.2 Customers service center .......................................................................................................................................... 6 During the I quarter of 2016 commercial indicators have been improved. There was a serous progress in billing. It’s due to implemented commercial activities; • Registration of customers’ water meter readings by “mobitoweb” system • Sending of SMSs and individual envelopes • Installation of high quality water meters • Involvement of Customer Service Center • Selective visits The payment level was directly proportional to the billing level. Along with the billing increase the level of payments was increased. 1.1 BILLING AND REVENUE Billing The billing level has been increased due to new installed water meters. Table 1. Average invoiced consumption per residential customer with meter 13 % 9.9 9.9 9.8 10 9.5 9.5 9.1 9.1 8.8 8 7 % 3 6 m 4 2015 4 % 4 % 20 2016 growth % January February March Total I quarter Billing level in comparison with the same period of last year has increased. The increase was about 102 million AMD (or about 9%). Table 2. Comparison of billing indicators 1 400 1 291 12 % 1 200 1 189 1 000 8 % 9 % 800 6 % 600 mln AMD 432 440 409 419 393 400 387 2015 200 2016 0 growth % January February March Total I quarter 2016-I quarterly report - Commercial directorate 5 Payments The payment level was also improved. There was increase every month compared with the same period of the last year and the increase was 72.0 million AMD (or about 7%). TABLE 3. Comparison of payments indicators 14 % 1 200 1 050 1 000 978 MD 800 7 % A 600 mln 6 % 400 336 381 366 376 2015 276 292 200 3 % 2016 0 growth % January February March Total I quarter 1.2 CUSTOMERS’ SERVICE CENTER Each year customer service center is enhancing communication with customers with a view to improve service delivery. In comparison with the 1st quarter of 2015 an increase of phone calls has been registered. The increase of this indicator is mainly due to information availability and positive solution of the calls. It should be also noted that along with the increase of number of calls, call quality changes are also recorded. Table 4. Number of received calls 4 689 3 030 1 632 1 722 1 335 1 158 1 077 795 January February March Total I quarter 2015 2016 During the January-March of 2016 Customer service center registered 5 179 calls, 4 689 out of which were about AWSC CJSC activity and 490 didn’t refer to the company (Yerevan Djur, etc). During the quarter Customer service center registered more than 483 voice mails which were studied and were accordingly processed. 6 Commercial directorate - 2016-I quarterly report Table 5. Number of calls according to issue type 3 077 1 399 1 187 1 000 890 544 415 440 88 30 95 213 January February March Total I quarter Commercial Exploitation/Technical Other During the 1st quarter a large number of customers apply to call center in regard to commercial issues. The increase of phone calls is mainly due to the fact that the company sent reminder-notifications to 7 700 customers who has more than 2 000 AMD debt. This activity enables the customers to clarify their water consumption, debt sources, payments, etc. The provision of the monthly data on the customers’ consumption through SMSs has intensified. As a result a large number of phone calls are registered in regard to this issue. In case of inaccuracies online checking are done (ID, address, water meter reading, debt, etc). As in the previous year this year also the center carried out a telephone monitoring. The employees con- tacted those customer-residents of Gavar town who had consumed water during the year 2015 and didn’t do any payment. As a result once again the reasons of non- payment were clarified. The one year not paid bill- ing of 183 customers was 3641.0 thousand AMD. After the calls the payment was about 160 thousand AMD. During the upcoming quarters customer service center is going to carry out telephone monitoring and sur- veys of non- paying customers. 2016-I quarterly report - Commercial directorate 7 OPERATIONAL DIRECTORATE 2.1 Key Performance indicator ......................................................................................................................................... 9 2.1.1 Service duration indicators .................................................................................................................................. 9 2.1.2 Financial performance indicators ................................................................................................................... 10 2.1.3 Water losses indicators ..................................................................................................................................... 11 2.1.4 Water quality indicators ................................................................................................................................... 11 2.2 Exploitation unit .........................................................................................................................................................12 2.2.1 Water production ............................................................................................................................................. 13 2.2.2 Distribution ....................................................................................................................................................... 15 2.2.3 Operation divisionion ...................................................................................................................................... 16 2.2.4 Special works implementation ........................................................................................................................ 16 2.3 Water quality ............................................................................................................................................................. 17 2.3.1 Water Quality Control ................................................................................................................................... 17 2.3.2 Natural resources utilization ........................................................................................................................... 20 2.4 Technical department ................................................................................................................................................ 21 2.4.1 Technical investigations, design ....................................................................................................................... 21 2.4.2 The control of capital expenses ........................................................................................................................ 24 2.5 New technologies unit ............................................................................................................................................... 26 2.5.1 Information technologies ................................................................................................................................. 26 2.5.2 Mapping division ............................................................................................................................................... 27 2.5.3 Water meters and loggers ................................................................................................................................. 27 2.6 Asset management department ................................................................................................................................. 28 2.6.1 Asset management ............................................................................................................................................ 28 2.6.2 Communities asset registration ........................................................................................................................ 29 2.7 Transportation division .............................................................................................................................................. 31 KEY PERFORMANCE INDICATOR Improvement of the Company activity by the contractor is monitored by the following performance indi- cators and connected to target values. 2.1.1 SERVICE DURATION INDICATORS Table 6. Service duration regarding the 3 groups of cities & rural communities specified in Amendment #5 March 2016 Active customers Average daily supply Year 2016 target number 1st group of cities (11) Sisian 3 870 24.00 Agarak 1 238 24.00 Jermuk 1 597 24.00 Vardenis 2 113 24.00 Vayq 1 528 24.00 Yeghegnadzor 2 409 24.00 Dilijan
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