ANNUAL REPORT 2006
ANNUAL REPORT 2006
Done by the Management Contractor The 19-th of February 2007
______Patrick LORIN ANNUAL REPORT 2006
TABLE OF CONTENTS 1. GENERAL VIEW...... 5 INTRODUCTION...... 6 2. OPERATIONS...... 7 2.1 COMMERCIAL...... 8 1. ANNUAL ACTIVITIES...... 9 GENERAL ...... 9 IT EQUIPMENT AND SOFTWARE...... 9 COLLECTION ...... 11 WATER METERS INSTALLATION PROGRAM...... 16 PROGRAM ON FIGHTING AGAINST ILLEGAL CONNECTIONS ...... 16 2. PLAN OF 2007 ...... 18 2.2 W O R K S...... 19 WORKS ACTIVITY IN 2006...... 20 A WORKS...... 21 PIPES LAYING IN 2006 TABLE - 1...... 21 B TRANSPORTATION...... 26 C CHLORINATION...... 29 D CIVIL WORKS...... 29 GENERAL PRESENTATION ON 2007 EXPECTED PROGRAM ...... 30 2.3 TECHNICAL ...... 33 TECHNICAL STUDIES...... 34 WATER QUALITY CONTROL...... 39 POTABLE WATER DISINFECTION...... 39 WATER QUALITY CONTROL BY BRANCH SECTORS IN 2006 TABLE-2 ...... 39 COMPARISON OF USED DISINFECTANT AND WATER QUALITY DEVIATION IN 2006 DIAGRAM-9 .. 41 DYNAMICS OF USED DISINFECTANTS IN 2002-2006 DIAGRAM-10...... 41 PROGRESS OF WATER SAFETY AND WATER QUALITY CONTROL ENVISAGED TO CARRY OUT ON ACCOUNT OF 2006 INVESTMENTS TABLE-3...... 42 NATURE PROTECTION REPORT...... 43 ENVIRONMENT UTILIZATION & PROTECTION FEES BY SECTORS IN 2006 TABLE-4...... 43 WORKS PLANNED FOR 2007...... 44 ASSETS MANAGEMENT ...... 45 M A P P I N G ...... 48
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LIST OF IMPLEMENTED MAPPING WORKS IN 2006 ACCORDING TO THE BRANCHES TABLE-5...... 48 THE LIST OF MAPPED SETTLEMENTS IN 2006 TABLE-6 ...... 53 PLANNED WORKS FOR 2007...... 55 2.4 OPERATION & MAINTENANCE...... 56 OPERATION & MAINTENANCE WORKS...... 57 PLAN FOR 2007 ...... 59 DIAGRAM – 11 ...... 60 DIAGRAM - 12...... 60 DIAGRAM - 13...... 60 DIAGRAM - 14...... 61 DIAGRAM – 15 ...... 61 DIAGRAM - 16...... 61 CONSUMPTION OF LIQUID CHLORINE IN 2006 TABLE-7 ...... 62 CONSUMPTION OF HYPOCHLORITE TABLETS IN 2006 TABLE-8...... 62 CONSUMPTION OF LIQUID CHLORINE PER REGIONAL BRANCH IN 2006 DIAGRAM-17...... 62 ELECTRICITY CONSUMPTION, TABLES-9,10...... 63 COMPARISON OF ELECTRICITY CONSUMPTION AND EXPENSE BETWEEN 2006-2007 DIAGRAM-1863 WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTRICITY CONSUMPTION TABLE - 11...... 64 ELECTRICITY CONSUMPTION KWTH/M3 DIAGRAM - 19 ...... 65 COMPARISON OF WATER DELIVERY AND ELECTRICITY CONSUMPTION FOR YEAR 2006 DIAGRAM – 20 ...... 65 PLAN FOR 2007 ...... 65 3. SAFETY...... 66 PLAN FOR 2007 ...... 67 4. FINANCE & ACCOUNT...... 68 ACCOUNTING...... 69 FINANCE...... 70 THE MAIN OPERATING EXPENSES OF THE AWSC IN 2006 TABLE-12 ...... 71 EXPENSES MADE BY THE HEAD OFFICE IN 2006 TABLE-13...... 71 DIAGRAM - 21...... 72 THE MAIN MANAGEMENT OBJECTIVES FOR 2007 FOR FURTHER IMPROVEMENTS...... 73 5. COST CONTROL ...... 74 THE WORKS CARRIED OUT BY COST CONTROL DIVISION IN 2006...... 75
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6. HUMAN RESOURCES...... 76 ACTIVITIES PERFORMED BY HUMAN RESOURCES DEPARTMENT DURING YEAR 2006...... 77 1. HUMAN RESOURCES ...... 77 NUMBER OF EMPLOYEES OF AWSC DIAGRAM-22...... 78 AWERAGE SALARY OF EMPLOYEES OF AWSC DIAGRAM-23 ...... 78 2. TRAINING AND DEVELOPMENT ...... 79 TABLE - 14...... 79 PLAN OF HUMAN RESOURCES FOR 2007 ...... 80 3. TRADE UNION ...... 81 PLAN OF TRADE UNION FOR 2007 ...... 83 7. PUBLIC RELATION...... 84 ON ACTIVITIES IMPLEMENTED BY THE PUBLIC RELATIONS DEPARTMENT...... 85 PLAN OF PUBLIC RELATION FOR 2007...... 89 8. PROCUREMENT ...... 90 PROCUREMENT MANAGEMENT AND PROGRESS REPORT – 2006...... 91 DIAGRAM 24 ...... 92 TABLE-15...... 92 SELF PROCUREMENT...... 92 PROCUREMENT OF GOODS IN 2006 ...... 93 9. LEGAL & INSURANCE ...... 94 2006 ANNUAL RESULTS OF THE LEGAL AND INSURANCE DEPARTMENT ...... 95
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1. GENERAL VIEW
5 ANNUAL REPORT 2006
INTRODUCTION
This Report covering the period from 1st of January to 31st of December 2006.
2005 was the Year to put the Company on the path of improvements and 2006 was the Year of the first level of improvements in all sectors of activities, also the Management Contractor was able to exercise total control over the activities thanks to organization of the perimeter technical and administrative activities. 2006 was a bend in the change of the mentalities of the Employees (not for all, unfortunately!), who understood the validity and the necessity of the actions taken by the Contract Manager.
A lot of things were done during the year and this report is only the syntheses of them. The analysis of indicators revealed improvements on a good speed, neither too slow, nor too fast. It proves the fact of a start on good and strong basis built during 2005.
Of course, the objectives fixed for 2006 were not all fulfilled at 100% for different real reasons. However, the main analysis must be done for the works done and not for the works not done. The approach of the Management Contractor is to put the objectives on one level where the Company has to work hard to reach them and not to put on one easy level. We know that the criticism will be on the part not done but as we say in France “It is easy to criticize but hard to work”.
On the same spirit we will not talk too much on the difficulties encountered by the Management Contractor during this period. In general, our difficulties are on the day to day management in relations with the Company and the ministries, local authorities and several state bodies. Some did not yet understand that we are not a rich foreign private company but a state owned company with limited resources, despite numerous explanations made by the Contract Manager during the visits through the Country.
In conclusion, from the viewpoint of the Management Contractor, the year 2006 was successful and we met our commitments fixed in the Management Contract. This is the result of good work and efforts realized by the AWSC staff in general.
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2. OPERATIONS
7 ANNUAL REPORT 2006
2.1 COMMERCIAL
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1. ANNUAL ACTIVITIES
GENERAL The structure of Company’s Commercial Department remained almost unchanged. The number of computer operators in the revenue formation departments of the branches reduced due to non-cash payment against provided services (by HayPost and banks).
Meeting in the South branch, Sisian
During the whole 2006 the department was guided by mottos “Correct recording of consumed water” and “Collection of recorded revenue”. The involvement and cooperation of the employees of relevant departments became more active promoting the realization of set up goals. As a result, notable achievements were recorded. The analysis of 2006 results shows that almost all the indicators are improved except the installation of water meters which is mostly conditioned by delay in procuring water meters. The Company purchased 30000 water meters only in September (instead of planned March). RA Government Resolution N 2250-Ü of 22.12.2005 can be deemed as an outstanding event providing a unique opportunity for refusing the calculation method according to the pipe section. This procedure was introduced in the Company (with one-two month’s delay) and as a result, the calculation method by pipe section was nearly brought to an end. But in order to finally reject this method it is necessary to install water meters (which is also the main requirement of the Resolution): Extremely cold December had negative impact on natural progress of works. In some sectors, the water meters were frozen and went out of the order.
IT EQUIPMENT AND SOFTWARE Training On August 2006 trainings were conducted for the IT specialists of the Company (by representatives of Microsoft in Armenia).
Software The following software were purchased and introduced:
ð Symantec Antivirus Corporate Edition antivirus package ð User Gate 4.0 proxy server internet distribution network software
9 ANNUAL REPORT 2006
In November a contract was signed with Armenian representative of Microsoft according to which all the operating systems (MS Windows, MS Office, Client Access) will be legalized in the next 5 years. Netwok installation In the Company’s Head Office and the offices of regional branches local networks are in operation.
Internet & Web site
Contracts on providing satellite and radiometer internet service were signed with “Arminco” and “SMS” providing regular internet communication.
AWSC WEBSITE PAGE
The Company’s official website www.armwater.am is also operating.
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COLLECTION From May 2006 the collection of service payments by the Company’s employees was terminated. The amounts for 100% are collected by “HayPost” CJSC, “Business Trade Bank (BTB)” and “Ardshininvestbank” CJSC.
The contracts with above mentioned companies have been reviewed. Currently the payment against banking services constitute “BTB”- 1.3% (before 1.5%), “PayPost”- 1.8 % (before 2.0 %).
Revenue/sales ratio: the analysis of collected amounts are compared with the amounts recorded in the previous month. The analysis is made with different recording methods.
Collection indicator of customers with water On December 2005 from 97.5% to 101,2% on December 2006 meters
Number of customers On December 2005 from 85 507 to 92 711 on December 2006 making payment each (from about 170 000 customers making use of services) month
See Diagrams 1,2,3 and 4
Diagram 1
Analysis of Payments by number
100000 97027 94897 91645 89538.16 89687 90000 89525 92711 92432 85507 88800 85646 83337 80000 79841
70000
Number Number of Payments 60000 Number of Customers receiving services : average 170 000
50000 52997
40000 01/05 12/05 01/06 02/06 03/06 04/06 05/06 06/06 07/06 08/06 09/06 10/06 11/06 12/06
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Diagram 2
Billing, collection and ratio % for customers with water meters
2 000 130%
1 800 1 731 120% 1 577 1 711 1 600 1 563 1 422 110%
1 400 102% 103% 1 415 103% 103% 102% 102% 1 270 101% 1 242 102% 98% 100% 1 200 1 211 1 108 1 251 100% 101% 96% 1 089 953 1 000 90% 90% 931 800 Millions AMD Millions 800 656 80% 778 600 504 638 374 517 70% 400 249 65% 385 124 60% 200 239 72 47 111 0 50% Jan.05 Dec.05 Jan.06 Feb.06 Mar.06 Apr.06 May.06 Jun.06 Jul.06 Aug.06 Sep.06 Oct.06 Nov.06 Dec.06
Billing Revenue Collection Ratio
Diagram 3
Billing & Revenue collection (Collection n, Billing n-1)
400
360 359 347 350 336 324 312 311 303 297 300 287 286 284 267 259 250
200 206 203 203 201 206 196 195 Millions AMD Millions 197 178 182 187 179 150 153
100
85
50
0 Jan.05 Dec.05 Jan.06 Feb.06 Mar.06 Apr.06 May.06 Jun.06 Jul.06 Aug.06 Sep.06 Oct.06 Nov.06 Dec.06
Billing Revenue Collection
12 ANNUAL REPORT 2006
Diagram 4
Cummulative billing collection
4 624 5000
4500
4000 3 626
3 268 3500
3000
2 135 2 308 2500
Millions AMD Millions 1 834 2000 1 593 1 599
1500
1000
500
0 2003 2004 2005 2006 Billing Revenue Collection
Sales analysis
Each month about 170000 customers in average make use of services including 105000 customers with water meters.
In 2006 27,8 million m3 was recorded out of which 13,3 Recorded Water Volumes million m3 from the customers with water meters
Average monthly consumption of one individual customer On December 2005 from 5.8 m3 to 6.5 m3 on December 2006 according to the water meter
See Diagrams 5,6 and 7
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Diagram 5
Awerage monthly consumption of residental customers with water meters
12
9.9 10
8.1 8.1 8.0 8 7.1 7.0 7.6 6.5 7.7 6.8 3 6.6 7.1 6.5
m 7.0 6.4 6.7 6.9 6 6.4 6.5 5.9 6.2 6.1 5.9 5.8
4
2
0 01/06 02/06 03/06 04/06 05/06 06/06 07/06 08/06 09/06 10/06 11/06 12/06
2005 2006
Diagram 6
December 06 Average Consumption in m3/Res.Cust./month by Region
North West 10.00
8.00 6.37 6.00
4.00
2.00
South 6.43 0.00 4.89 North East
8.18
Center West
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Diagram 7
Water Volume Invoiced
3 000 2 639.2 2 493.8 2 461.5 2 460.3 2 398.6 2 362.6 2 500 2 298.4 2 311.6 2 252.2 2 126.2 2 035.2 1 993.1 2 000 3 1 500 '000 m
1 000
500
0 01/06 02/06 03/06 04/06 05/06 06/06 07/06 08/06 09/06 10/06 11/06 12/06
Inspections Selective inspections made in all the sectors had the same results: Inconsistency of water meters readings with recorded amount Non sealed water meters Damaged water meters Non registered water meters (mainly in the buildings supplied with water by two pipes) Illegal connections
Inspected illegal connections Fighting against illegal connections has an ongoing character and the involvement of relevant employees in this process should be more activated.
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Water Meters Installation Program Water meters should be provided by World Bank funds. The program envisages the installation of 122.000 water meters, including 54.000 water meters in 2006, 54.000 in 2007 and the rest in 2008.
We have a lot to be done in this direction. Instead of planned 54 000 water meters only 16624 have been installed. At present about 60 000 water meters have been purchased by World Bank financial resources.
Diagram 8
Water meters installed in 2006 by the Regional Branches
6000 5175
5000 4492
3720 4000 3237
3000
2000
1000
0 North West North East Center West South
PROGRAM ON FIGHTING AGAINST ILLEGAL CONNECTIONS Under the program on fighting against illegal connections, it is planned to do away with frauds and illegal connections at grassroots level hindering natural progress of Company’s activities. It is obvious that fighting against illegal connections is everyday and regular work involving the whole staff of Company, as well as information campaigns aimed at changing the mentality of consumers and the whole staff. Notwithstanding the works that are being carried out (recorded and abolished) still there are illegal connections met. The situation is more complicated in summer months in the settlements not having irrigation system. It is worth mentioning the fact that together with elimination of illegal connections new, as well as hidden customers came (or/and) have been brought to recording environment.
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On December 2005 from 262 582 customers to 265 529 customer Total number of customers on December 2006
TYPES OF ILLEGAL CONNECTIONS FIXED IN THE SECTORS
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2. PLAN OF 2007
Installation of water meters
The Company purchased 60 000 water meters which must be installed according to the undertaken task. In addition water meters installation is also the requirement of RA Resolution N 2250-Ü of 22.12.2005.
Recording level increase The increase of recording level is directly proportional to collection level increase. Installation of water meters, correct recording of the readings will provide possibility to have correct recording as far as it is possible.
Improvement of collection indicators AMD 2 655.9 million collection is undertaken for 2007 which means AMD 348.0 million more (about 13% increase) as compared with actual collection of 2006. At the same time a task is undertaken to increase the number of customers making payments, reaching about 120 000 payments per month.
Fighting against Illegal Connections
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2.2 W O R K S
19 ANNUAL REPORT 2006 WORKS ACTIVITY IN 2006
NEW PIPES INSTALLED BY AWSC
steel pipes 9 500 m TOTAL AWSC L 31 340 PE pipes 19 000 m sewerage 2 840 m
* DN 500mm for SUPPLY only 7 500 m
R E G I O N S NORTH EAST NE 12 965 m NORTH WEST NW 5 710 m CENTER WEST CW 4 940 m SOUTH S 7 725 m
The TOTAL AMOUNT spent for SUPPLY and INSTALLATION :
* DN 500mm for SUPPLY only a 36 000 000 AMD
SUPPLY 80 000 000 AMD INSTALLATION 55 000 000 AMD PIPES TOTAL P b 135 000 000 AMD
* CIVIL WORKS TOTAL c 16 000 000 AMD
REHABILITATION OF CHLORINATION d 32 000 000 AMD
TOTAL SELF FINANCING in 2006 a+b+c+d 219 000 000 AMD
The RATIO per meter is : P / L 4 308 AMD
This data include : - supply of pipes and fittings. - excavation , laying and backfilling. - supply of sand for technical bloc around PE pipes. - small civil works without reinstatement. * Civil works - concrete works and fences * DN 500mm supplied for Lchashen – Sevan (installed by MWWP fund)
20 ANNUAL REPORT 2006 COMMENTS ON 2006 WORKS ACTIVITY
A WORKS
NETWORK RATIOS PIPES LAYING IN 2006 Table - 1
L E N G T H S ( m ) 2006 / 2005 Ratio per category ( % ) 2006 Category of pipes 2005 2006 1 2 3 4 5 Steel pipes 19 500 9 560 49% 31%
PE pipes 6 420 19 010 296% 61% Other pipes 2 840 2 770 98% 9% TOTAL 28 760 31 340 109%
* According to the above table we can observe the place taken by the new technology of polyethylene in 2006, Following the comments of 2005 report, and representing 60% of the pipes laid in the year. This result is reached despite of the impact of the biggest projects done with steel ( 2.5 km DN 500mm ) in Martuni. We have to mention that AWSC has provide on site in Lchashen 7.7km of DN 500mm for 36 million AMD. The self financing in 2006 has reached 65% above 2005 due to the fact that A.W.S.C has increased the cash-flow and has been able to start new rehabilitation programs:
40 chlorination points have been rehabilitated with civil works and local purchase in view to receive the new ALLDOS equipments provided by MWWP program. The second part of the rehabilitation program will be done in 2007.
New rehabilitated building for chlorination in AGHEGI
New chlorination with bottles New chlorination with compressor New chlorine dosimeter unit 21 ANNUAL REPORT 2006 Preparation works and installation of fences have been started and will be completed in 2007.
As announced in 2005 the price ratio/m of pipes has been decreased ( -6,5% ) but not significantly due to the fact that the welding machines for PE were received only at the end of 2006. 20 millions AMD were spent only on the external service for the PE pipes welding on site. Fortunately, this amount will be saved and re- invested in 2007 by the use of our own means. Six welding machines are now deployed in the Regions and eight specialists have been trained for automatic and semi-automatic welding process.
PE PIPES LAYING
Welding of PE pipes DN 90 mm PE PIPES LAYING
* A new technological progress was reached end of 2006 through the reception of an injection set for concrete repairs by use of special acrylic resin. Eight specialists in the regions and two in the Head Office have already been trained for this technology that will solve many punctual problems in 2007 and later.
* The main actions on site in 2006 took place in the following locations: Sevan-Lchashen supply and preparation of DN 500mm steel pipe for the future boreholes.
22 ANNUAL REPORT 2006 Martuni -Tsak Kar new gravity delivery pipe DN 500mm.The project was tested in real configuration and the pumps in Tsak Kar could be stopped. The coming of the winter didn't allow to finalize the internal modification on the network inside Martuni city with a new regulation. This will be completed as soon as possible in 2007 but the central part of the city already receives 24h of chlorinated water (global average 12h actually).
Martuni -Tsak Kar DN 500 mm pipe laying
Lchashen boreholes have been completed with a good estimated capacity and the network inside the sanitary zone laid for the most part. The main concrete works have been done and stopped for the winter.
LTCHASHEN boreholes dirtying
Sevan pumping station has been build except the completion works left for spring 2007.
Dilijan - Golovino and Frolov cleaning station rehabilitation is on going and the main external civil works are completed.
Echmiatsin Training Center rehabilitation has been started after re-tendering. Rehabilitation civil works are on going and the rooms for water meters testing bench should be ready for the installation of the equipments and the training is scheduled for beginning of February 2007.
23 ANNUAL REPORT 2006 Argel semi-gravity project has been completed and will give a good result as soon as the small remaining additional connections are done. The pumping system to the reservoir has been regulated and the chlorination installed. An overflow regulator needs to be added as well a floating gate valve in the reservoir.
All completion works will be done as soon as the weather will allow it. This project is in coordination with Charentsavan MWWP project and will allow later to stop Gyumush PS and save a significant quantity of energy.
ARGEL - new rehabilitated catchments
* Other important black points have been solved in 2006 through the small projects among which were:
AGARAK - ARTASHAT - SEVAN - IJEVAN - ARTIK - ASHOTSK - TALIN - ASHTARAK - MASIS - HRAZDAN - ECHMIATSIN - YEGHEGNADZOR - GORIS - VARDENIS - GAVAR.
DN 400mm sewerage pipeline in ASHTARAK
* In 2006 A.W.S.C has invested in concentration with CHF (American NGO) in four locations and fully completed the projects. A total 4.5km of new PE network has been installed in IJEVAN - APARAN - SISYAN - KAPAN. These projects were considering the replacement of the totality of the existing network including mains and individual connections. The result is the one expected, no leaks, disconnection of illegal consumers or regularization, amelioration of the local hydraulic and sanitary parameters.
24 ANNUAL REPORT 2006 * All sectors and sub sectors have received funds for rehabilitation works and have undertaken repairs according to the actual main possibilities.
Main repair on DN 600mm in GARNI Installation of DN 300mm gate valve
WORKS IN THE SECTORS
* AGARAK WTP : a special mention has to be done on the partial rehabilitation with our own means of the WTP that was out of operation. The Region has done a good job by restarting the existing filters and back-wash system. The actual result is 40 l/s of filtered water but without pre- treatment and coagulation. A complete year cycle with monitoring will be done until October 2007 when A.W.S.C will have to decide on the final solution.
25 ANNUAL REPORT 2006 * BULK FLOW METERS PROGRAM:
P.I.U program: a total of 550 locations have been installed at the end of 2006. A.W.S.C has proceeded at the end of the year to the hand over of the totality, with reservations.
USAID filters program : this program has been completed fully with some delay but in much better condition than the previous one. The mechanical flow meters are now out of order due to accidental damages due to the passage of big dirt pieces inside the network.
The quantity of broken turbines in many locations has increased due to the delay of installation of the filters.
The replacement or repair of all defective flow meters has to be scheduled as quick as possible in view to complete the data capacity of the project that is an important component for AWSC. The Regions have received the task to organize the monitoring and the maintenance of the equipments.
The year 2007 will be the first monitoring year in the Company for this matter.
B TRANSPORTATION
* The approach in 2006 was to give to the regions the autonomy of management for FUEL consumption. The only positive point reached during the year was a starting notion of "stock" but no real management was observed around this matter.
* Compared to 2004 (equivalent number of operational machines and level of activity) and to 2005 the ratio 2006 was:
3 837 liters / vehicle in 2004 for all AWSC difference 2 017 liters / vehicle in 2005 for all AWSC -52% 2 017 liters / vehicle in 2006 for all AWSC 1%
163 vehicles operational in 2004. difference 237 vehicles operational in 2005. 145% 285 vehicles and machines operational in 2006. 120%
26 ANNUAL REPORT 2006 * 2006 has seen the arrival of the following new means:
ð 7 cars Niva 4x4 ð 4 UAZ pick-up ð 2 snow bikes for winter emergencies. ð 6 PE welding machines. ð 1 resin injection set for concrete repairs.
PE welding machine unit Welding of PE DN 90 mm pipe
December 2006 December 2006
New snow bikes for winter emergencies
* As shown by the result we had a perfect correlation in 2006 between the increase of the consumption (+20%) and the increase of the quantity of operational vehicles and machines (+20%), the ratio/ vehicle keeping at stable level. These observations are important and demonstrate that the critical low limit per machine is at around 2000 liters /year. This is the pond rated result for ALL categories. An analysis per type of machine will of course give different ratios.
27 ANNUAL REPORT 2006 * Some additional means should be scheduled as soon as possible in view to give to AWSC a real autonomy in the resolution of ALL repetitive situations. Few heavy equipment are needed and small additional machinery too and other new cars.. * We hope to increase during 2007 the quality of the maintenance by better responsibility of the users and also through the action of the transportation staff in the regions supported by the Head Office. * The global quantity of FUEL used in 2006 is:
Operational Vehicles and Machines
Quantity Quantity Increasing in 2005 in 2006 2006 / 2005 237 285 120% including REGIONS liters 455 000 515 000 113% 2 crane trucks and Head Office liters 23 000 60 000 261% 4 additional cars
TOTAL liters 478 000 583 000 120%
ratio / machine 2 017 2 046
New operational excavator New operational compressor
New welding unit
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C CHLORINATION
* All points mentioned in 2005 report have been fulfilled:
elimination of all intermediary entities for CL matter, direct negotiation with the supplier, Nairit CL plant in Yerevan, elimination of all external transports for CL matter, rehabilitation ( not the totality ) of old bottles and containers, use of log-book for CL transportation and delivery, installation in Nairit Plant of a new filling area for bottles in "packs", construction of 80 new "packs" to keep the bottles secure, rehabilitation of 40 chlorination points in the sectors, starting of the optimization of the CL delivery program (the data given through the new dosimeters need to be improved.
New chlorination New “packs” for chlorine Sets of “packs” for chlorine bottles ROOM bottles
* The 40 new CL points were internally handed over in December and all small defects will be corrected.
D CIVIL WORKS
* Starting in 2006 of the fencing in the Regions. The main quantity will be installed in 2007 to reach 13 km of net (fences).
* Concrete works to repair Abovyan reservoir, need to be completed with injection of resin in 2007.
* Concrete works on Gyumush-Argel sewerage siphon with rehabilitation of main supports and chambers. The new double line is ready to be used after winter and small completion works. After operation of the new line the old one will be repaired and kept as emergency reserve line.
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GENERAL PRESENTATION ON 2007 EXPECTED PROGRAM
I Small projects implemented by AWSC by own means and design, among which
* Vedi - Jermanis * Sevan - Dzekenget * Ashotsk * Talin * Martuni * Alaverdi - Noyemberyan * Abovyan * Berd - Ijevan * Spitak
TOTAL a 128 000 000
II Rehabilitation program of CHLORINATION
* The second part of the chlorination rehabilitation has been defined for 2007 and the priorities are: - SEVAN Region 21 points. - ABOVYAN Region 15 points. - ARTASHAT Region 1 point. - SISYAN Region 2 points. TOTAL 39 points b 50 000 000
* In parallel AWSC continues to invest in the rehabilitation of old CL bottles and containers. End of 2007 the TOTALITY of actual available bottles and containers should be repaired and re-looked. The monitoring of each point will finally be possible and the respect of the basic security conditions reached. The training of the CL operators has to be effective and give real results in 2007 in view to avoid any mistake in the operation and monitoring of the NEW CHLORINATION PLANTS. ALL directives and manual have to be strictly followed without deviations.
* The result globally reached in 2006 is highly encouraging to schedule a fully controlled chlorination system at the end of 2007.
CAPITAL REPAIRS ON THE NETWORK ( distance > 10m / intervention ) will continue at probably the III same level as in 2006 ( 40 millions AMD for 300 repairs including sewerage and water ). c 50 000 000
Restarting of the FENCING PROGRAM after spring in view to reach 13 km of installed fence at the IV end of 2007. d 10 000 000
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V Rehabilitation program for civil works on RESERVOIRS-CATCHMENTS-CLEANING STATIONS - OTHERS:
A program has been defined and will start in February 2007 after the training period.
e 12 000 000
TOTAL 2007 a,b,c,d,e 250 000 000
VI Realization of SCHEDULED PROJECTS under MWWP Fund
* PACKAGE 1 - Tsaghkadzor - Gavar - Charentsavan - Aparan - Ashtarak Expected result on the design as brief as possible in view to order one part of the supplies before the * PACKAGES 2 - 3 winter.
Completion of the works and starting of the new * SEVAN - LCHASHEN system from the boreholes.
DILIJAN - GOLOVINO - Completion of the works and starting of the new * FROLOVA equipments in the cleaning stations.
Installation of 26 new pumps in the main pumping stations in view to improve and secure the * NEW PUMPS distribution.
VII Training on Organization of Works: A capital matter has to be treated in 2007 concerning the capacity of A.W.S.C to face its obligations as SERVICE Company more than only "emergency" company ! * The first task will be to work rather closely on the SCHEDULE and ORGANIZATION of the job. * The second will be to define the optimal SITE STRUCTURE in term of human resource and equipment. * The third will be to fashion a specific notion of the SERVICE compared to EMERGENCY. As long as these three basic conditions are not integrated in the normal "WAY TO PROCEED" at each hierarchical level in the Company, the expected results will be difficult due to the fact that all steps in the Company are only busy to play between emergencies without real reactional capacity to face together emergencies and scheduled activity.
31 ANNUAL REPORT 2006
* The real autonomy capacity of the Regions in coordination with the Head Office support will remain only in the area of "dreams" from NOW on if this "WAY TO PROCEED" is not well implemented with a strong understanding of the basic supports : SCHEDULED activity - OPTIMIZATION of the job - SERVICE approach.
* The success of the expected actions in 2007 is also directly dependent on the efficiency of the TEAM LEADER of each sector's brigade on site. This NEW position in the staff list has to be considered as the "key" to the expected results in the future.
The Head Office has already implemented the support to be given to the Regions to improve their autonomy capacity in term of Management for 2007. * At the level of the Head Office the main target of the Supervision Team will be to get efficiency that is more global and individually to develop the notion of RESPONSIBILITY by treating a matter (project) under all aspects from the beginning to the end. * AWSC has already established a "guide line" for the use of the Supervision and the Regions describing all administrative sequences and documents and the corresponding signatory persons implicated in the process of project implementation. This "guide line" will be applied in the Company in 2007.
VIII AWSC will have to continue investments to complete and renovate the fleet of vehicles & machinery. 5 Nivas 4x4 are expected in March 2007. 5 Uaz pick-up also. In parallel, the Regions will have to reduce the quantity of vehicle rental contracts.
IX Beginning 2007 AWSC will implement a program to install GAZ system on 84 vehicles.
This is to reduce the operational costs to allow an increase of SERVICE following the NEW ORGANIZATION of the operational TEAMS in the sectors. The SCHEDULED division and optimization of the job will permit to treat more problems in the same time with a scheduled and controlled increase of energy.
The actual basic RATIO of 2000 liters / vehicle will increase in 2007 connected to the volume of job and the QUALITY of SERVICE. In counterpart the energy budget for the vehicles will decrease mechanically through the utilization of GAZ for one part of the fleet.
X 2007 is a year of full activity for the WORKS and DESIGN reminding the implementation of the 3 big Designs by USAID in ARTASHAT - HRAZDAN - KAPAN.
32 ANNUAL REPORT 2006
2.3 TECHNICAL
33 ANNUAL REPORT 2006
THE FUNCTIONS OF THE TECHNICAL DEPARTMENT FOR 2006 INCLUDING:
ð TECHNICAL STUDIES
ð WATER QUALITY CONTROL
ð MANAGEMENT OF THE COMPANY’S ASSETS
ð MAPPING OF TECHNICAL SYSTEMS
Sources of King lake near Aragats mountain
TECHNICAL STUDIES During the reporting year of 2006 the following works relating to technical studies have been carried out: 1. Works to be implemented by the World Bank resources; 2. Development of design packages and related activities under DW/SW-04/004 contract; 3. Preparation of designs for the works to be implemented by the resources of the RA state budget; 4. Elaboration of activities for the projects to be implemented by other financial resources. 5. Development of technical specifications; 6. Development of activities directed at improvement of water and wastewater systems.
1. Works to be implemented by the World Bank resources
Study of Charentsavan, Tsaghkadzor, Astarak, Gavar, Aparan, Echmiatsin, Masis, Ararat, Vedi, Talin, Egeghnadzor, Goris, Tashir, Stepanavan towns water and wastewater systems at site included in I, II and III tender packages. Based on the results of these studies schemes of the W&W sections subject to capital repairing and renovation were made on cadastral maps of these settlements; Renovation of Golovino treatment plant in DILIJAN
34 ANNUAL REPORT 2006 Development of terms of reference for II and III packages; Development of technical specifications for the necessary equipment to be purchased for implementing the works;
Study of option for supplying water to Aparan town by gravity from “Eznaki” sources, as well as preparation of design and cost estimation documents based on geodesic surveys; Analysis of the project on improving Aparan, Gavar, Tsakgkadzor, Ashtarak water supply systems within the framework of NMWWP- C2.4/06/3-01 contract and discussions with consulting companies.
40 sources area in Eghegnadzor
2. Development of design packages and related activities under W/SW-04/004 contract
Study of new route of Sevan DRR main from Lchashen deep wells, elaboration of plans for selected routes and longitudinal sections, elaboration of budget for two options;
Development of working design for Sevan-Lchashen water main;
Ammendements to package 1 of working design for “Connection of Lchashen boreholes with operating Hatsarat-Sevan system” under N DW/SW-04/004 contract on “Renovation of Sevan town water supply system”;
Preparation of bid packages for each branch for the works implemented under contract DW/SW-04/005 concluded with “ArmWaterDesign Institute” CJSC on “Protection of water supply system sanitary zones”.
3. Preparation of designs for the applications to be implemented by the resources of the RA State budget
Design for application of the state budget of 2007-2009;
Medium term projects on improving water and wastewater systems planned for 2007-2009;
Medium term expense program;
Development of proposal on improving water supply systems of Norashen, Geghadir, Gandzak, Koghb, Bjni communities included in the projects of 2007.
35 ANNUAL REPORT 2006 4. Elaboration of activities for the projects implemented by other financial resources
Development of necessary design and cost estimation documents under îÎÜÒîäÎ- ²ÞÒ´-1 contract on “Improving water supply systems of Surenavan, Armash and Erashk communities of the RA Ararat marz”
DRR in SURENAVAN (not completed)
Development of terms of reference for the USAID financed projects on improving water and wastewater systems of Artashat, Kapan, Hrazdan towns; Submission of proposal to the RA State Committee of Water Economy on accepting works on improving water and wastewater systems implemented by the Water Sector Development and Improvement Project Implementation Unit in the “AWSC” CJSC in 2004 financed by state budget in conformity with government resolutions; Study of the works implemented by means of Armenian Social Investment Fund (ASIF) for improving water supply systems fed from “Ortachia” and “Geghadir” sources under the “ Project on improving Tsahgkahovit water supply system”;
Study of water and wastewater sections of Talin, Eghegnadzor and Kapan general plan developed by the “ArmStateDesign” and “ArmAgroDesign” CJSCs and submission of relevant proposals for their further processing; Study of Aparan town gravity system being constructed by the ASIF for gratis utilization; Hydraulic testing of the main supplying water to Arshaluis, Hajtagh, Ferik, Tsaghkalandg, Aragats, Aghavnatun and Tsiatsan communities of the RA Armavir marz implemented under æîÒ´-Ìƶ-ÌÒ´-01 project.
5. Development of technical specification Connection of the water supply system of natural gas fueling station constructed by “Ara & Ajtsemnik” OJSC to Makravan-Abovyan water main and water discharge system - to Hrazdan sewer; Connection of the pig farm (constructed by “Getamech Pig Farm “ CJSC ) water discharge system to Charentsavan-Abovayn sewer;
36 ANNUAL REPORT 2006
Connection of water supply system of the rest home constructed in Tsaghkadzor by “Alfael Producer Center” LLC to the water main passing through Kecharetsi street and water discharge system to- the first manhole located at the crossroad of Orbeli and Chartarapetner streets; Connection of water supply system of “Storehouse of agricultural products” located in Arzni village of the RA Kotayk marz to the main fed from Makravan-Abovyan water main and passing through the sand pit; Connection of water supply system of ‘Garun” rest home to be constructed in Tsakhadzor by “Tsakhkadzor-Garun” LLC to the main passing through Kecharetsi street and water discharge system-to sewer of Magistros street.
6. Development of activities directed at improvement of water and wastewater systems
Study of water supply system of Alapars village, RA Kotayk marz and preparation of initial design and cost estimation documents;
Development of filter installation technology design in filtering station of Agarak town under the “Project on improving Agarak town water supply system”;
Study of Megri town water and wastewater systems, mapping of operating systems and submission of proposal;
Catchments of SHATJRER
Construction of Martuni-Tsakkar longitudinal section and hydraulic calculations; Study of Lori-Berd-Agarak water supply systems and construction of water main longitudinal section according to the hydraulic calculations; Study of Ardvin community water supply system and preparation of budget;
Main source of KHNUSIK
37 ANNUAL REPORT 2006 Study of Akhtala water supply system;
Study of sewers, internal networks and sewage treatment stations of Vardenis, Martuni, Gavar, Sevan, Hrazdan and Echmiatsin towns;
Development of plans and budget for two options of administrative buildings of sectors and subsectors; Study of water supply internal network of Echmiatsin Training Center of the “AWSC” CJSC and submission of proposal; Study of alternative options for terminating water supply to Masis villages from “Araratyan 3, 4” pumping station and submission of proposal.
The Department plans to carry out the following works in 2007:
¾ Development of designs for improving water supply systems of Akhtala and Hajanist village of Masis region; ¾ Study of design and cost estimation documents of I, II, III packages developed within the framework of NMWWP-C2.4/06/3-01 contract implemented by the World Bank funds; ¾ Study of design and cost estimation documents for improving Artashat, Kapan and Hrazdan towns water and wastewater systems implemented under USAID project; ¾ Study of water supply systems of Artik town and its rural settlements, “Katnagbjur”, “Sevaberd” sources of Tashir town, Bjni village of Kotayk marz; ¾ Study of options for improving Gagarin town water supply system (Lchashen deep well, “Atabekyan” sources); ¾ Study of Ashotsk water discharge system based on requirements of Krasar water supply system; ¾ Study of alternative options for terminating water supply to Masis villages from “Araratyan 3,4” pumping station and submission of proposal.
38 ANNUAL REPORT 2006
WATER QUALITY CONTROL
Potable Water Disinfection
In 2006 laboratories of the Company exercised regular control over the disinfection and potable water quality. Microbiological examination of 17.6 thousand samples were made from nearly 550 sample points including “North-West” branch - 6.8, “North-East” - 3.9, “Center –East” - 3.1, “South - 3.8 (table 2).
WATER QUALITY CONTROL BY BRANCH SECTORS IN 2006 TABLE-2
INVESTIGATIONS (item)
SECTORS I QUARTER II QUARTER III QUARTER IV QUARTER YEAR residual micro- residual micro- residual micro- residual micro- residual micro- chlorine biology chlorine biology chlorine biology chlorine biology chlorine biology 1 2 3 4 5 6 7 8 9 10 11 NORTH-WEST REGIONAL BRANCH Abovyan 254 345 422 384 355 380 477 301 1 508 1 410 Hrazdan 237 366 231 413 266 358 190 282 924 1 419 Charenchavan 0 0 0 0 0 0 0 0 0 0 Ashtarak 132 193 152 308 161 286 168 206 613 993 Artik 1 763 443 1 536 723 1 885 997 1 425 814 6 609 2 977 TOTAL 2 386 1 347 2 341 1 828 2 667 2021 2 260 1 603 9 654 6 799 NORTH-EAST REGIONAL BRANCH Sevan 135 257 132 272 85 155 123 248 475 932 Gavar 2 170 455 1 955 473 1 987 467 1 643 523 7 755 1 918 Idjevan 781 0 754 0 823 0 800 0 3 158 0 Dilijan 340 36 550 30 910 30 930 30 2 730 126 Alaverdi 499 164 392 169 406 155 426 134 1 723 622 Stepanavan 201 81 368 96 615 29 568 70 1 752 276 TOTAL 4 126 993 4 151 1 040 4 826 836 4 490 1005 17 593 3 874 CENTER-WEST REGIONAL BRANCH Artashat 359 611 305 387 538 0 397 0 1 599 998 Edjmiatsin 537 523 649 558 674 585 527 415 2 387 2 081 Masis 206 0 336 0 423 0 390 0 1 355 0 Vedi 0 0 612 0 502 0 382 0 1 496 0 TOTAL 1 102 1 134 1 902 945 2 137 585 1 696 415 6 837 3 079 SOUTH REGIONAL BRANCH Sissian 247 46 332 50 343 40 328 68 1 250 204 Goris 508 96 615 125 628 163 634 169 2 385 553 Kapan 2 028 540 2 277 682 2 064 713 1 836 632 8 205 2 567 Eghegnadzor 332 68 672 122 715 162 681 163 2 400 515 TOTAL 3 115 750 3 896 979 3750 1 078 3479 1 032 14 240 3 839 MAIN TOTAL 10 729 4 224 12 290 4 792 13 380 4 520 11 925 4 055 48 324 17 591
39 ANNUAL REPORT 2006
The number of samples taken from rural settlements constitutes 23% of total quantity. From 48.3 thousand chorine residual examinations, chlorine was not found in 2.4 thousand samples (4.9%). For rural settlements, this indicator constitutes 10.7%, reaching 14,6% in the North–East branch. According to microbiological indicator in 5.5% of examined samples deviations were recorded including: Water disinfection equipment inherited from the previous company o North-West regional branch - 8.2 % o North-East - 6.0 % o Center-West - 4.0 % o South - 3.1 % Potable water quality supplied to villages are not in sufficient level so far. The deviations constitute 13.0% including: o North-West regional branch – 27.6 % o North-East - 2.4 % o Center-West – 5.8 % o South – 8.5 % Cases of water quality deterioration were registered in Sasunik village serviced by Astarak sector and Argel village - by Charentsavan sector. Water quality control is best organized in South RB, where all the settlements are currently controlled and the number of analysis has been increased by 500. During the year the laboratories were provided with chemical reagents, biological environment, as well as auxiliary means.
Potable water disinfection by newly installed chlorinating equipments has already given its positive results for providing safety water (diagram-9).
As compared with the last year the amount of liquid chlorine used for potable water disinfection was increased by 25 tons, instead of 77 tons in 2005 reaching 102 tons in 2006 (diagram10).
Water quality control laboratory in DILIJAN treatment plant
The potable water disinfection was mainly improved in Astarak, Alaverdi, Vedi, Vayq and Jermuk sectors.
40 ANNUAL REPORT 2006
COMPARISON OF USED DISINFECTANT AND WATER QUALITY DEVIATION IN 2006 DIAGRAM-9
12000 7
10000 6
5 8000 % 4 KG 6000 3 4000 2
2000 Chlorine1 gas /ton/ Deviation, % 0 0 I II III IV V VI VII VIII IX X XI XII MONTHS
DYNAMICS OF USED DISINFECTANTS IN 2002-2006 DIAGRAM-10
Water supply systems were cleaned and disinfected including daily regulating reservoirs and water treatment plants. The laboratory assistants and chlorinating operators were instructed to define chlorine demand frequency, chlorine dosage and exercise control over residual chlorine.
41 ANNUAL REPORT 2006 In the below table the working process of potable water protection is represented. The information in detail concerning implemented works and procurement you can get in the “Works” and “Procurement” parts of this report.
PROGRESS OF WATER SAFETY AND WATER QUALITY CONTROL ENVISAGED TO CARRY OUT ON ACCOUNT OF 2006 INVESTMENTS TABLE-3
N Objects Works Work progress
Renovation and reconstruction of main Improvement of water In process, 1 facilities, water mains, intercommunity supply systems networks and construction of new ones Partially done
Renovation and capital repairing of water intakes, technological facilities The works for Dilijan, and reagent economy, Golovino, Frolovo, Agarak replacement of technological pipes, treatment plants are in process Treatment plants 2 valves and equipment (12 systems) Procurement of filter loading (sand) Not done
Procurement of coagulants Not done
Renovation of DRR and supporting 3 DRR facilities Ongoing work Repairing of fences, supporting 4 Sanitary zones facilities and lightings Partially done
Rehabilitation of chlorine stations, construction of new ones, procurement Done Disinfection objects, of equipments, containers and spare 5 equipments and parts substances Purchase of liquid chlorine and chlorine Done powder In process, Rehabilitation and replenishment of repairing works have been working laboratories, establishment of started, most part of equipment Potable water new ones and procurement of equipment is received, laboratory 6 protection furniture is ready
Purchasing of laboratory substances Done
42 ANNUAL REPORT 2006
NATURE PROTECTION REPORT
The reports on nature protection and nature utilization fees performed by the branches of the Company were summarized and registered in the nature utilization department of the RA Ministry of Nature Protection. The payments have been calculated according to the water use and water discharge individual rates defined by water usage permissions. Nature utilization fees constituted about AMD 21.0 million (2005- AMD 10.2 million), the nature protection - AMD 19.6 million (2005 - AMD 26.3million), (table 4). By the results of the year, “Statistical report” has been presented to the RA Ministry of Nature Protection.
ENVIRONMENT UTILIZATION & PROTECTION FEES BY SECTORS IN 2006 TABLE-4
ENVIRONMENT UTILIZATION (thousand AMD) ENVIRONMENT PROTECTION (thousand AMD) SECTORS I II III IV I II III IV Year Year quarter quarter quarter quarter quarter quarter quarter quarter 1 2 3 4 5 6 7 8 9 10 11 North-West regional branch Abovyan 325.8 511.7 387.6 387.7 1 612.8 0 0 0 0 0 Hrazdan 445.6 451.2 447.5 447.5 1 791.8 390.6 390.6 398.9 393.4 1 573.5 Charenchavan 286.7 277.8 283.7 283.7 1 131.9 0 0 0 0 0 Ashtarak 227.9 320 258.6 258.6 1 065.1 259.5 259.5 259.5 259.5 1038 Artik 108.2 144.4 120.3 120.2 493.1 428.5 266.6 278.9 292.7 1 266.7 TOTAL 1 394.2 1 705.1 1 497.7 1 497.7 6 094.7 1 078.6 916.7 937.3 945.6 3 878.2 North-West regional branch Sevan 178.8 311.8 223.1 223.1 936.8 175.7 175.7 175.7 175.7 702.8 Gavar 532.7 557.1 540.8 540.8 2171.4 394.2 394.2 394.2 394.2 1576.8 Idjevan 80.6 161.9 107.7 107.7 457.9 271.3 271.3 271.2 271.2 1085 Dilijan 38.5 41.3 39.5 39.5 158.8 123.7 123.7 123.7 123.7 494.8 Alaverdi 289.9 355.7 311.8 311.8 1269.2 213.4 213.4 213.4 213.3 853.5 Stepanavan 291.7 356.8 313.4 313.4 1275.3 324.1 324.1 324.1 324.2 1296.5 TOTAL 1 412.2 1 784.6 1 536.3 1 536.3 6 269.4 1 502.4 1 502.4 1 502.3 1 502.3 6 009.4 North-West regional branch Artashat 346.9 346.8 346.9 346.9 1 387.5 225.7 475.2 529.8 201.0 1 431.7 Edjmiatsin 445.2 459.5 425.7 425.7 1 756.1 447.4 603.6 647.7 447.3 2146 Masis 192.2 192.2 192.2 192.2 768.8 261.1 261.1 261.1 261.1 1 044.4 Vedi 205.8 206.1 205.9 205.9 823.7 280.6 257.4 254.1 254.1 1 046.2 TOTAL 1 190.1 1 204.6 1 170.7 1 170.7 4 736.1 1 214.8 1 597.3 1 692.7 1 163.5 5 668.3 North-West regional branch Sissian 168.7 303.6 213.7 213.7 899.7 128.3 138.8 128.3 128.3 523.7 Goris 102.7 378.8 194.7 194.7 870.9 383.2 371.5 246.3 209.9 1 210.9 Kapan 255.2 274.9 288.6 320 1 138.7 379.6 466 379.3 379.3 1 604.2 Eghegnadzor 146.7 481 189.4 189.4 1 006.5 157 150.4 174.3 171.4 653.1 TOTAL 673.3 1 438.3 886.4 917.8 3 915.8 1 048.1 1 126.7 928.2 888.9 3 991.9 MAIN TOTAL 4 669.8 6 132.6 5 091.1 5 122.5 21 016.0 4 843.9 5 143.1 5 060.5 4 500.3 19 547.8
43 ANNUAL REPORT 2006 Works planned for 2007
The main objective under potable water safety and monitoring program was to set up 4 branch laboratories, which will enable increasing the number of examinations to required standards - 95-100% instead of 65% in 2006, as well as increasing disinfection efficiency from 79.7% to 86.0%.
Provide professional trainings for laboratory assistants involving new employees.
44 ANNUAL REPORT 2006
ASSETS MANAGEMENT Assets Handover & Acceptance Works have been carried out to fulfill the orders of the Chairman of the RA State Committee of Water Economy at the RA Government dated October 31, 2005 on transferring irrigation systems and property to 7 WUUs with the right of gratis utilization; handover and acceptance acts have been prepared and submitted to the “Staff of the State Committee of Water Economy at the RA Government” State Enterprise. Certain works have been implemented for making amendments to some RA Government Resolutions, for transferring irrigation systems and property to defined water users unions with the right of gratis utilization, as well as property list has been reviewed and new lists prepared for submitting to the RA Government.
The list of property has been analyzed, changes have been made in property transferred to “Lori Channel” WUU, as well as in the irrigation systems, fixed assets and property transferred to “Dzorer”, “Spandaryan”, “Tolors”, “Vorotan”, “Karahunj”, “Khnzorut” “Hakhum, “Vardenis” WUUs for gratis utilization by providing relevant substantiations according to the transferred property list.
Inherited old property
The lists of additional property have been made for transferring to the WUU for gratis utilization (registered in the balance sheet of the “AWSC” CJSC) for its further submission to the RA Government. The list of fixed assets and property transferred from the “AWSC” CJSC to “WSC” CJSC and from “WSC” CJSC to “AWSC” CJSC have been analyzed. Clarifications have been made in regard to several issues.
New property
Works have been carried out for transferring non-operated fixed assets belonging to the “AWSC” CJSC and subject to alienation to the “WSC” CJSC in compliance with the RA Government Resolution N1458-² dated October 7, 2004. Handover and acceptance acts were submitted to the “WSC” CJSC. Packages with N1, N2, N6 Annexes on transferring property to the “Staff of the State Committee of the Water Economy at the RA Government” State Enterprise have been prepared in compliance with Order N219-² of the Chairman of the RA State Committee of Water Economy at the RA Government. Handover and acceptance acts were submitted to “Shirak WSC” CJSC, “WSC” CJSC relating to “Shirak Jrar” and handover and acceptance acts were received from “Lori WSC”.
45 ANNUAL REPORT 2006 Assets regulation Works have been carried out for regulating the Company’s assets as a result of which standing Committee has been set up by the order of General Director. The regulation of the Committee has been developed and put into operation.
Assets Investigation The documents on below mentioned assets have been studied and commented for different purposes: ð “Ashtarak-Eghvard” water line; ð Whole property of former “Armavir” branch; ð Sevan sewer; ð Underground pipeline of semi finished construction in Fantan village; ð “Goris-Kornidzor” water main; ð Main sewer of “Dilijan” sector
Analysis and adjustment of the alienated property to be taken back from the “WSC” CJSC. The list has been submitted to the State Committee of Water Economy for discussion.
Certain works have been carried out for transferring the property from “Irrigation” CJSC to the “AWSC” CJSC connected to “Eghegnadzor” sector of “South” RB for gratis utilization.
Documents have been prepared relating to the RA Government draft Resolution on “Transferring the premises to the RA Police at the RA Government and allocating funds to the “AWSC” CJSC.
Information has been prepared relating to illegal constructions made in the water construction alienation zones of the “AWSC” CJSC branches.
Registration of Assets belonging to the “AWSC” CJSC Methodology Manual has been prepared for registering ownership rights of the “AWSC” CJSC property.
Analytical data have been processed for registering the Company’s property (buildings, constructions), sanitary and non-alienated zones (ownership right for lands), as well as for registration of vehicles and machinery.
Comparative analysis of the assets list to be registered in the state register has been made. The list of sanitary zones within the servicing perimeter of the “North-East”, “Center-West”, ‘South” RB has been submitted to the RA National Archive for receiving the resolutions of the RA Soviet of Ministers on land allotments.
Information has been prepared on activities of registering ownership rights carried out by the “AWSC” CJSC directors.
46 ANNUAL REPORT 2006 Certain works are being implemented for labeling the Company’s property and for this purpose the lists have been prepared.
Preparation of information for submitting clarifications to the RA Ministry of Finance and Economy for including privatized property in the list of RB assets and making relevant accounting registrations.
Short references on privatized property have been made and recording of this property is in progress.
Works with archive documents Archive documents on fixed assets and property of former “Armavir” branch have been classified.
Works to be carried out in 2007
1. Registration of the “AWSC” CJSC water systems ownership rights with the state register (1st stage); 2. Inventory, analysis and review of the “AWSC” CJSC whole property (fixed assets and property); 3. Certification of the whole property (1st stage); 4. Adjustment of property relations with the WUUs; 5. Property labeling.
47 ANNUAL REPORT 2006
M A P P I N G In 2006 mapping program was reviewed and adjusted.
In the 3rd quarter AutoCAD & MapInfo program training was conducted with 5 specialists of the “North-East”, “North West”, “Central-West”, “South” regional branches for digitalizing W&W intercommunity networks of the country’s settlements. According to the program, mapping of internal networks of the settlements serviced by the Company was made as follows:
LIST OF IMPLEMENTED MAPPING WORKS IN 2006 ACCORDING TO THE BRANCHES TABLE-5
Branches Planned or done Town Village
1 2 3 4 Planned 9 40 North-West Done 4 26
Planned 5 15 North-East Done 5 17
Planned 1 40 Center-West Done 1 50
Planned 3 5 South Done 5 6
Planned 18 100 Total Done 15 99
As an experiment mapping of water and wastewater systems of Ashtarak town was made.
Under mapping program of the Company, the mapping of Ashtarak town water supply inner network was made by GIS system. A part of the map is shown in picture 1 below and a part from corresponding database - in the picture 2.
48 ANNUAL REPORT 2006
Picture 1 Map of water and wastewater systems of Ashtarak town in Picture 2. Databases of Ashtarak town water and wastewater systems GIS format in GIS
49 ANNUAL REPORT 2006
Map of water and wastewater systems of Sisian town.
50 ANNUAL REPORT 2006 Except the works planned by mapping program the following works have also been implemented: Preparation of initial databases for mapping inner networks of settlements; Different mapping works for the Company’s settlements; Different drawings to be used in the guideline worked out by the Works & Transport department; Maps made by AutoCAD & MapInfo programs which were printed and provided to all the branches; Maps of 4 branches were prepared and printed.
Map of water and wastewater systems of the Center-West branch
51 ANNUAL REPORT 2006
Water supply map of the “AWSC” CJSC was reviewed and adjusted
General map of the “AWSC” CJSC” water supply system in MapInfo format
52 ANNUAL REPORT 2006
THE LIST OF MAPPED SETTLEMENTS IN 2006 TABLE-6
NAMES N BRANCHES Villages Villages 1 2 3 4 1 Abovyan Ejmiadzin 2 Byuravan 3 Nshavan 4 Mkhchyan 5 Araqsavan 6 Azatavan 7 Kanachut 8 Vostan 9 Dlar 10 Baghramyan 11 Dimitrov 12 Berqanush 13 Mrgavan 14 North-West Masis 15 Shahumyan (Armavir) 16 Antap 17 Ciacan 18 Tsakhkalanj 19 Mrgastan 20 Baghramyan(Armavir) 21 Aygeshat 22 Doghs 23 Khorunk 24 Amberd 25 Arshaluys 26 Ferik 27 Aygek 28 Lernamerdz 29 Musaler 30 Voskehat 31 Aghavnatun 32 Aragac 33 Dasht 34 Samaghar 35 Caghkunq 36 Arevshat 37 Hovtamej
53 ANNUAL REPORT 2006
NAMES N BRANCHES Villages Villages 1 2 3 4 38 North-West Haytagh 39 Artimet 40 Arevadasht 41 Vanand 42 Shahumyan 43 Ptxunq 44 Shenik 45 Hushakert 46 Argina 47 Norakert 48 Arevshat 49 Artamet 50 Byurastan 1 Qaxsi Abovyan 2 Jrarat Byureghavan 3 Argel Hrazdan 4 Bjni Ashtarak 5 Arzni 6 Saralanj 7 Bujakan 8 Aragyugh 9 Kotayq 10 Dzoravan 11 Artavaz 12 Dzoraghbyur 13 North-East Karin 14 Ohanavan 15 Oshakan 16 Aragacotn 17 Kosh 18 Ujan 19 Sasunik 20 Voskevaz 21 Voskehat 22 Dprevanq
³ÙÇñ³Ù 23 Shamiram 24 Mughni 25 Alapars 26 Aragyugh
54 ANNUAL REPORT 2006
NAMES N BRANCHES Villages Villages 1 2 3 4 1 Uyc Meghri 2 Ashotavan Agarak 3 Khot Sisian South 4 Hartashen Jermuk 5 Shtin Goris 6 Qarahunj 1 Gandzak Dilijan 2 Karmir gyugh Ijevan 3 Berkunq Gavar 4 Varser Alaverdi 5 Covazard Sevan 6 Lchap 7 Azatamut 8 Hagvi 9 Norashen 10 Lchashen 11 Aygehat 12 Center-West Cater 13 Arevacag 14 Chkalovka 15 Sarukhan 16 Noratus 17 Hayravanq
Planned works for 2007
It is a priority objective to continue and complete mapping of intercommunity networks of the water and wastewater systems of settlements serviced by the Company, including typical statistic data.
Create thematic maps.
55 ANNUAL REPORT 2006
2.4 OPERATION & MAINTENANCE
56 ANNUAL REPORT 2006 OPERATION & MAINTENANCE WORKS
In 2006 the operation works were mainly directed at: 1. Change of acting operation manner for making it more effective; 2. Increase of water supply duration; 3. Reduction of electricity consumption.
Water losses in LORI BERD - ALAVERDI water main 1. The necessity of changing operation manner acting in the water supply systems was conditioned by the fact that: In many systems supplied water was not distributed rationally and effectively according to the water demand and carrying capacity which in its turn brought to breakdowns in the network and increase of water losses; In some systems daily regulating reservoirs appeared out of exploitation for certain reasons and water was delivered directly from the internal network; Numerous pumping aggregates installed in pump stations did not operate in conformity with their technical parameters. Implementation of these works is still in progress and will continue in 2007 too. Along with aforementioned, works directed at repairing of breakdowns were also fulfilled, thus in trunk mains and internal networks about 6 592 breakdowns were repaired, as well as about 652 linear and 400 partial repairing were made. As a result visible water losses were considerably reduced.
HRAZDAN. Repairing of water main. ARTASHAT. Repairing of water main.
57 ANNUAL REPORT 2006
2. During the year daily water supply duration has been increased by 1.2 hours and if in the beginning of the year it was 8.8 hours, at the end of the year it reached 10.02 such as in Martuni from 5 to 12 hours, in Vardenis from 15 to 20 hours, in Ijevan from 6 to 13 hours, in Asharak from 2 to 4 hours, in Meghri from 4 to 13 hours, in Eghegnadzor from 9 to 15 hours, in Kapan from 7 to 11 hours. The number of customers with minimum water supply duration (less than 4 hours per day) has also been reduced, thus if at the end of 2005 only 74.07% of total communities enjoyed more than 4 hours water supply, at the end of 2006 this figure raised to 82.95%.
3. Electricity consumption indicators and this process in general were also improved. Comparing the consumption of electricity for mechanically produced water quantity for 2005-2006 we shall notice that in 2006 it was reduced by 6.67million KWH which was achieved by changing the exploitation manner, as well as by reducing working hours of pumping aggregates installed in the networks providing water mechanically. Electricity consumption indicator for producing 1 cubic meter of water by mechanical way, has also been improved reaching 0.64 KW/m3 in 2006 against 0.67 KW/m3 of 2005.
Exploitation works in sewage networks were directed at networks cleaning, elimination of obstructions and some renovations of networks and manholes. Three special cars were used for network cleaning purposes. About 182.5 km of sewers were cleaned, 6449 obstructions were eliminated, as well as 663 manholes were repaired and renovation of sewage systems was made. DILIJAN. Water treatment plant
As of 2006, 102 739 kg liquid chlorine and 14 476 kg hypochlorite tablets were used for water disinfection purposes in water and wastewater systems.
In 2006 a number of chlorine stations were reconstructed and new, modern equipment were installed more facilitating the recording and control over liquid chlorine consumption. The second stage of this process is planned to carry out in 2007. GARNI. Repaired chlorination station.
58 ANNUAL REPORT 2006 In general potable water disinfection works for 2006 is estimated satisfactory which is the result of water treatment plants replenishment with new equipment, control exercised over consumption of disinfecting substances and proper organization of delivery works.
The quantity of produced water in 2006 constituted 168 281.6 thousand cubic meter (by gravity- 96395.6 thousand cubic meter, mechanically – 71 886.0 thousand cubic meter) which is about 8.5% more than it was envisaged by Company’s budget of 2006 (in budget – 87 480+67 520 = 155 000 thousand cubic meter). Such an increase was conditioned by necessity of ensuring proper works of water supply systems and provision of customers with required water quantities in very hot summer and severe winter months.
Despite the increase of produced water quantities, in 2006 un-accounted for water constituted 83%, which is by 1% less from the indicator envisaged in the budget (84%):
PLAN for 2007
In 2007 it is planned to reduce produced water quantity by about 15 million m3/year, out of which 6.66 million m3/year mechanically and 8.3 million m3/year by gravity. It is also envisaged to increase network repairing works to the extent enabling the reduction of water losses which is not connected to non-repaired breakdowns. But these works cannot compensate commercial water losses. The main reasons of water losses are water squandering, illegal connections and absence of water meters. Therefore it is envisaged to carry out works that will reduce such losses. In 2007 it is planned to increase daily water supply schedule up to 12.5 hours due to changes made in the manner of exploitation works and their organization in water supply systems. In 2007 it is planned to improve qualitative indicators of exploitation works by making such works more coordinated and planned. In 2007 it is also envisaged to increase the activities directed at repairing of sewerage systems, elimination of breakdowns and cleaning works. In 2007 it is planned to put into operation new chlorine stations with up-to-date chlorinating equipment replacing old chlorinating methods and equipment.
The operation and maintenance activity is presenting below by the tables and diagrams.
59 ANNUAL REPORT 2006
MAINS CLEARED
250
200
150 KM 100
50
0 NORTH EAST NORTH WEST CENTER WEST SOUTH TOTAL 2007 PLAN 43.34 7.94 115.23 16.219 182.729 200
DIAGRAM – 11
REMOVAL OF OBSTRUCTIONS
8000
6000
4000 NUMBER 2000
0 NORTH EAST NORTH WEST CENTER WEST SOUTH TOTAL 2384 1707 1066 1292 6449
DIAGRAM - 12
REPAIRED WASTEWATER COLLECTION SYSTEMS 1000
800
600
400 NUMBER 200
0 NORTH NORTH CENTER SOUTH TOTAL 2007 PLAN EAST WEST WEST WASTEWATER PIPES REPAIR 25 48 36 149 258 300 MANHOLES REPAIR 51 57 211 86 405 550
DIAGRAM - 13
60 ANNUAL REPORT 2006
W A T E R L O S S E S
88 86 84 % 82 80 78 I Quart II Quart III Quart IV Quart Annual Plan 2007 81 82.2 84.6 86 83 83.3 DIAGRAM - 14
W A T E R P R O D U C T I O N
200000
150000
100000
50000
0 I Quart II Quart III Quart IV Quart Annual Plan 2007 Gravity 21798 23811 25089 25387 96085 73625 Deviered through pumps 17583 16420 19598 18597 72198 66375 Total 39380 40231 44687 43984 168282 140000
DIAGRAM – 15
NUMBER OF REPAIRED BREAK-DOWNS
8500
6500
4500 NUMBER 2500
500 NORTH EAST NORTH WEST CENTER W ES T SOUTH ANNUAL 2006 PLAN 2007 NETWORK PARTLY REPAIR 71 20 289 20 400 600 NETWORK LEANER REPAIR 53 135 228 236 652 850 REPAIRED BREAK-DOWNS 2959 619 1776 1238 6592 8500
DIAGRAM - 16
61 ANNUAL REPORT 2006
CONSUMPTION OF LIQUID CHLORINE IN 2006 TABLE-7
BRANCHES I II III IV V VI VII VIII IX X XI XII 2006
North-East 1 065 903 971 877 901 1 111 1 075 1 256 1 542 1 007 1 369 1 586 13 663 North-West 1 838 2 191 2 752 2 169 2 625 2 387 2 656 2 203 2 640 2 628 1 947 2 262 28 298 Center-West 1 965 1 824 1 852 2 494 2 850 3 080 2 878 4 346 3 842 3 779 3 673 3 576 36 159 South 1 018 1 080 1 749 1 986 2 263 1 993 2 293 2 455 2 677 2 534 2 538 2 033 24 619 TOTAL 5 886 5 998 7 324 7 526 8 639 8 571 8 902 10 260 10 701 9 948 9 527 9 457 102 739
CONSUMPTION OF HYPOCHLORITE TABLETS IN 2006 TABLE-8
BRANCHES I II III IV V VI VII VIII IX X XI XII 2006
North-East 163 637 442 490 988 1 009 1 201 838 834 876 605 593 8 676 North-West 149 161 141 288 334 299 319 378 299 136 74 181 2 759 Center-West 22 74 308 300 197 155 95 105 29 26 13 10 1 334 South 111 107 106 173 93 289 156 122 116 154 107 173 1 707 TOTAL 445 979 997 1 251 1 612 1 752 1 771 1 443 1 278 1 192 799 957 14 476
CONSUMPTION OF LIQUID CHLORINE PER REGIONAL BRANCH IN 2006 DIAGRAM-17
5000 4500 North- East 4000 3500 North- 3000 West Kg 2500 2000 Center- West 1500
1000 South 500 0 I II III IV V VI VII VIII IX X XI XII Month
62 ANNUAL REPORT 2006
ELECTRICITY CONSUMPTION, TABLES-9,10
Annual electricity consumption constituted 53.1 million KWH amounting AMD 996 million which is less than actual consumption of 2005 by 8.4 million KWH amounting AMD 155 million. The saving as compared with the budget of 2006 constituted 0.58 million KWH amounting AMD 26.5 million.
These indicators were possible to archive due to the following: ¾ changes of exploitation manner in some water supply systems; ¾ replacement of pumps in some pumping stations. In Kosh, Hatsarat, Makravan-2, Berdavan pumping stations non correctly selected and more energy consuming pumps were replaced; ¾ clarification of working regime of pump aggregates as a result of which the electricity used for production 1 cubic meter was reduced; ¾ disconnection of some working pumps. A number of deep well pumping aggregates of Bazmaghbjur, Ghazaravan pumping stations were disconnected. Aragats second level pumping station was entirely disconnected due to supplying water by gravity.
COMPARISON OF ELECTRICITY CONSUMPTION AND EXPENSE BETWEEN 2006-2007 DIAGRAM-18
120 000 6000
100 000 5000
80 000 4000
60 000 3000 1000 KWH 1000 AMD
40 000 2000
20 000 1000
0 Cost 2006 April May June July March January August October Cost 2007 February November December September KWH 2006 KWH 2007 MONTH Please, see attached tables # 9,10
63 ANNUAL REPORT 2006
WATER DELIVERED THROUGH PUMPING AND CORRESPONDING ELECTRICITY CONSUMPTION TABLE - 11
WATER DELIVERED, ELECTRICITY ELECTRICITY N SECTORS THROUGH PUMPING CONSUMPTION CONSUMPTION thousand m3/year KWH/m3 thousand KWH/year
1 2 3 4 5 2 787 1.3 3 627 1 Ashtarak 1043 0.7 758 2 Aparan 3 121 0.3 995 3 Artashat 2344 0.5 1087 4 Echmiadzin 6 760 0.7 4 472 5 Gavar 8 426 0.8 7 039 6 Sevan 961 0.0 0 7 Tashir 1515 0.7 1124 8 Stepanavan 781 1.4 1116 9 Noyemberyan 256 0.5 137 10 Spitak 12 181 0.2 2 529 11 Abovyan 3 323 1.6 5 402 12 Charentsavan Hrazdan and 13 596 0.7 10 026 13 Tsakhkadzor 443 0.5 242 14 Martuni 1061 0.8 841 15 Meghri 81 0.9 74 16 Sisyan 89 0.7 63 17 Ijevan 13 844 0.5 6 976 18 Masis 413 0.5 216 19 Ashotsk 17 2.9 50 20 Byureghavan TOTAL 73 042 0.64 46 775
64 ANNUAL REPORT 2006
ELECTRICITY CONSUMPTION KWTH/m3 DIAGRAM - 19
0.68 0.66 0.64 0.62 0.6 I Quart II Quart III Quart IV Quart Annual 2006 El. energy 0.66 0.63 0.64 0.63 0.64
COMPARISON OF WATER DELIVERY AND ELECTRICITY CONSUMPTION FOR YEAR 2006 DIAGRAM – 20
70000 60000 50000 40000 30000 20000 10000 0 I Quart II Quart III Quart IV Quart Annual Water 17759 16640 19907 18793 73042 El. energy 11776 10503 12647 11850 46775
PLAN for 2007
In 2007 it is planned to consume 51.36 million KWH electricity amounting AMD 960 million, thus saving 1.74 million KWH amounting AMD 36 million. Such a reduction is planned to achieve by changing exploitation manner of water supply systems, reducing working hours of pumps.
In the 3rd quarter of 2007 it is planned to fulfill investment programs, purchase up-to-date pumps and replace old ones promoting electricity savings.
65 ANNUAL REPORT 2006
3. SAFETY
66 ANNUAL REPORT 2006
WORKS CARRIED OUT BY SAFETY DIVISION IN 2006 In 2006 the Safety Department implemented certain works for improving safety conditions in the “AWSC” CJSC system. During the past 2006 no accidents have been recorded though technical safety of equipment is not in sufficient level so far.
The Department paid regular visits to the sites of the Company, 5 acts-assignments were made and in 3 of them the situation was corrected. There are still a lot to be done in Makravan and Hatsarat pumping stations where the safety of equipment and especially technical equipment are not in required level.
Last year all the pumping stations were provided with safety posters and nameboards. Safety posters & nameboards In 2006 the chlorine and pumping stations were provided also with general safety means including voltage indicators, grounding rods, masks, dielectric gloves and carpets, torches, fire extinguishers and portable fences for isolating breakdown sections. The pumping stations are also in need of different instrument sets. The vehicles for transportation of liquid chlorine are equipped with everything necessary for safety and duly transportation of chlorine regardless weather conditions in accordance with acting procedure. “ALLDOS” chlorinating equipment were installed in 36 chlorine stations of the Company by direct and active participation of the Safety Department. During assembly works it was necessary to make some modifications. For safe transportation of chlorine bottles and drums, mechanization of loading and unloading works, as well as for safety operation of valuable equipment, 80 metallic baskets and 20 vertical trolleys were made. Together with Human Resources Department practical trainings were conducted with 66 chlorine operators teaching them safety operation rules of new equipment. Trainings were conducted also with 30 welders and they were provided with safety instructions and guidelines.
PLAN for 2007
In 2007 inspections will be carried out in chlorine stations for checking the condition of chlorine stations and knowledge of operators. At the end of 2006 RASCOFLEC-405 (injection rubber) was received for eliminating water losses. In January 2007 safety trainings were planned to conduct for its further practical use in Abovian and Berd and in other required places. Each branch was provided with instructions on quantities of components to be mixed. In 2007 it is planned to purchase uniforms and boots amounting AMD 24 million. A schedule was developed for visiting the regions starting during favorable weather conditions enabling field works.
67 ANNUAL REPORT 2006
4. FINANCE & ACCOUNT
68 ANNUAL REPORT 2006
FINANCE AND ACCOUNTS, 2006
ACCOUNTING
In 2006 the Company’s accounting system was implemented by the Company’s Head Office and 4 regional branches. The accounting was maintained based on the RA Accounting Standards (ASRA) with application of Soft Master 6.2 accounting software.
Soft Master 6.2 accounting software installed as late as in 2005 has been improved with the assistance of Soft Master Company.
During this year a number of seminar-workshops were organized for the chief accountants of branches in the Company’s Head Office aimed at maintenance of accounting in compliance with the RA legislation, for ensuring cooperation with branches, as well as discussing various issues to have common approach for their solution.
Accounting of branches has been coordinated by the Finance and Accounting Department of the Company’s Head Office. In addition the Company’s Cost Control Department established for monitoring and internal audit of branches’ activities, conducted survey for conformity of expenses specified in Financial Plan of 2006 and actually made expenses.
In compliance with the RA legislation, requirements at the end of 2006 before preparing annual financial statements the Company started the inventory of Company’s assets. In case of availability of financial resources the above mentioned works are envisaged to continue in 2007 for revaluation of non current assets by attracting independent evaluator.
In order to minimize cash transactions all the employees of the Company are provided with “ArCa” classic cards for receiving salaries through these cards under the contract on providing services signed between the Company and “Ardshininvestbank” CJSC. Staff of Accounting
69 ANNUAL REPORT 2006
FINANCE Due to successive works implemented by Financial Department the transparency and management of the Company’s cash flows have been improved for the purpose of which new contracts (with reduced commission rate) have been concluded with the banks and HayPost CJSC providing services to the Company. As a result numerous previous transit accounts of the sectors, sub sectors and branches have been closed and relevant interim accounts have been opened with the banks for each branch and the amounts accumulated in these accounts are being transferred to the principle accounts of the Head Office. Appropriate regulation has been developed and approved for selling water meters through branches procured within the framework of Municipal Water and Wastewater Project. In conformity with credit project a Revolving Fund has been set up for separately managing financial flows of water meters procurement and sales. 31 000 water meters in the total amount of 383 370 USD have been procured in September, 2006. The Company sold 2 281 items for 13.7 bln AMD and received 13.0 bln AMD back from the sell:
According to the established order the plans of financial flows for 2007, as well as for coming three years 2008- 2010 have been developed. They include all the substantiating calculations of incomes and expenditures as per the branches and Head Office. Mentioned calculations demonstrated that in case of non increasing the existing tariffs the additional subsidiary from the state budget of the RA will be necessary to cover operating expenses. Staff of Finance
For increasing the existing tariffs of services provided by the Company a package of relevant documents has been prepared in accordance with RA legislation on 06 March, 2006 submitted to the State Committee of Water Economy for consideration.
The Company ensured participation in the process of elaborating financial planning instrument for regional water supplying companies financed by the OECD which can be effective for prediction of Company’s activities, making decisions on capital investments and enhancing control efficiency.
Necessary information has been provided to the consultants of the European Bank for Reconstruction and Development for realizing “Lake Sevan Basin Environmental Project” ensuring participation in different discussions and workshops, as well as providing comments and opinions on made analysis. As a result a draft project has been developed for extending a loan of EURO 7.0 million and grant of EURO 6.2 million for renovation of Gavar, Vardenis, Martuni, Sevan and Jermuk wastewater systems.
70 ANNUAL REPORT 2006
THE MAIN OPERATING EXPENSES OF THE AWSC IN 2006 TABLE-12 mln AMD OPERATING EXPENSES 2006 ELECTRICITY 996.1 FUEL 192.7 MATERIALS FOR CURRENT REPAIRING 169.7 CHEMICALS 51.8 PURCHASED WATER AND SEWERAGE 55.9 SALARY 1180.7 SOCIAL SECURITY PAYMENTS 255.6 REPAYMENT OF COMMERCIAL LOAN AND INTEREST 90.4 VAT, OTHER TAXES AND MANDATORY STATE PAYMENTS 209.5
EXPENSES MADE BY THE HEAD OFFICE IN 2006 TABLE-13 thousand AMD EXPENSES MADE BY THE HEAD OFFICE
MONTHS Including TOTAL Payments from On account of own subsidies revenue 1 2 3 4 JANUARY 442 091 300 000 142 091 FEBRUARY 254 528 100 000 154 528 MARCH 268 746 100 000 168 746 APRIL 297 887 120 000 177 887 MAY 268 921 120 000 148 921 JUNE 312 271 80 000 232 271 JULY 322 217 180 000 142 217 AUGUST 369 370 100 000 269 370 SEPTEMBER 308 973 70 000 238 973 OCTOBER 274 378 80 000 194 378 NOVEMBER 294 392 70 000 224 392 DECEMBER 341 601 61 260 280 341 TOTAL 3 755 376 1 381 260 2 374 116
71 ANNUAL REPORT 2006
DIAGRAM - 21
300 000 Payments from subsidies
On account of own revenue 250 000
200 000
150 000
100 000
50 000
0 January February March April May June July August September October November December
72 ANNUAL REPORT 2006
THE MAIN MANAGEMENT OBJECTIVES FOR 2007 FOR FURTHER IMPROVEMENTS
9 Continue the works necessary for improving monitoring and internal audit procedure of branches’ accounting departments by Head Office. 9 Ensure the consistency of accounting and sales database information in collaboration with the Commercial department. 9 Carry out inventory through independent auditor for correct presentation of the company’s non current assets value (in case of availability of relevant financial sources). 9 Ensure participation in cooperation with the State Committee of Water Economy and international financial organizations for fund raising to finance Company’s capital expenses.
73 ANNUAL REPORT 2006
5. COST CONTROL
74 ANNUAL REPORT 2006
THE WORKS CARRIED OUT BY COST CONTROL DIVISION IN 2006
In compliance with the new management structure of the “AWSC” CJSC, Cost Control Division was set up the main objective of which was to:
ð exercise more effective control over the expenses of Head Office and Regional Branches in accordance with the Company’s budget;
ð control the procedure of payable accounts and their repayment;
ð exercise control over the use of salary fund in accordance with the Company’s budget;
ð exercise control over procurement procedure in accordance with the Company’s budget;
ð exercise also control over telecommunication and transport facilities and make analysis as per individual telephone numbers and relevant car models.
MAIN OBJECTIVES FOR 2007
ð Expenses control strengthening
ð Increasing number of audit visits in site
ð Improvement of the Company Budget structure through Plan/Actual/Variance analysis
75 ANNUAL REPORT 2006
6. HUMAN RESOURCES
76 ANNUAL REPORT 2006
ACTIVITIES PERFORMED BY HUMAN RESOURCES DEPARTMENT DURING YEAR 2006
1. HUMAN RESOURCES
ð External relations a/ A new working style has been developed with the RA State Statistical Department submitting monthly, quarterly and annual reports in electronic version through special database providing the Company broader opportunities to make data analysis; Plastic card of employees
b/ Reports have been submitted to the State Works Department; c/ Plastic payment cards have been ordered and provided to more than 500 employees; d/ Current and consolidated reports have been submitted to the Social Security Fund; e/ Together with the Company’s Trade Union internal football championship has been organized and one of the teams participated in the republican competition of the enterprises. Summer camp has been organized for the children of Company’s employees in Lori.
ð Internal works a/ Current works relating to the business trips, vocations, bonuses, employment contracts and their termination procedure have been properly organized; b/ Monthly monitoring of personnel number and current works of branches’ Human Resources inspectors have been carried out; c/ The amendments to the legislation and legal environment have been studied and ensured their introduction in the Company’s procedures;
d/ The order of maintaining employment contract registers have been introduced.
ð Recapitulation indicators a/ Labor turnover in the Company constituted 30 % b/ Increase of average salary constituted 9 % c/ The right of regular annual leave was enjoyed by 93 %
77 ANNUAL REPORT 2006
NUMBER OF EMPLOYEES OF AWSC DIAGRAM-22
3000 2553 2500
2000 1982 1840 1858 1813 1814 1500
1000 Number of of Employees Number
500
0 2004 2005 2006 2006 2006 2006 avearage avearage I quarter II quarter III quarter IV quarter
Months
AWERAGE SALARY OF EMPLOYEES OF AWSC DIAGRAM-23
60000
50000 49 000
40000 41 000 30000 AMD
20000 25 000
10000
0 2004 2005 2006 awerage awerage awerage
78 ANNUAL REPORT 2006
2. TRAINING AND DEVELOPMENT
Training on AutoCad & Map info
The following employees of AWSC have been trained in 2006.
TABLE - 14
N Name of Program Number of Participants Location
1 2 3 4 Have been conducted by Training Department and Company’s specialists 1 Qualified managers 22 Jermuk 2 AutoCad & Map info 6 Head Office 3 Electric and gas welding 30 Sectors 4 Chlorinating operators 66 Sectors 5 Software 15 Head office 6 Commercial specialists 72 Branch
By other specialists 7 Word , Excel 2 USAID 8 Plastic pipe welders 14 Supplier
During 2006 total number of trained personnel was 227 constituting 12.5 % of total employees.
79 ANNUAL REPORT 2006
Welders training
Plan of Human Resources for 2007
Some programs on personnel and trainings were transformed from 2006 to 2007 which is connected to certain changes taken place in the Company, in particular:
ð Establishment and renovation of training centers and laboratories ð Structural and organizational changes ð Technical and technological investments ð Reduction of the employees, linked with the introduction of a new technology and organization actions.
80 ANNUAL REPORT 2006
3. TRADE UNION
Activities carried out by the “AWSC” CJSC Trade Unions in 2006
In 2006 United Trade Union and Trade Unions of branches cooperating with the management of the Company and branches carried out daily works directed at improvement of working conditions as well as material welfare of the employees and their families. These activities considerably contributed to the improvement of performance indicators, as well as moral and physiological atmosphere of the Company.
An important precondition in this process was the organization of sport and cultural works among the employees.
In the Head Office of the Company and in all the branches mini football teams were organized which were provided with sport uniforms and inventory, as well as halls were rented for proper organization of their training. Combined team of the Company participated in several competitions and won prizes.
Football Championship. October 2006
By the initiative of the General Manager of the Company Mr. Lorin and participation of Trade Unions, in October intersystem football championship was organized participated by the Head Office, four branches and SAUR teams. The winner of championship was the Head Office team. The winners were awarded prizes.
81 ANNUAL REPORT 2006
It is already the second year that a summer camp is organized for the schoolchildren of Company’s employees.
In the “Gugark” camp of Vahagnadzor. Summer, 2006.
In 2006 by the assistance of the management summer holidays of 60 children were organized in “Gugark” camp of Vahagnadzor. Both the children and their parents expressed their satisfaction about such a well organized event in that picturesque place. In general while organizing such activities the priority is given to the employees with comparatively less remuneration, many children and needy families.
Before the beginning of school year stationery in the amount of AMD 850 000 (for 1200 children) were purchased by the Trade Unions and provided to the children. Several times in a year tickets for performances and concerts were purchased for the office employees.
Taking into account the tradition of celebrating some holidays in the country for years, the management of Company’s and branches’ Trade Unions jointly organize activities for celebrating New Year and Women’s Day.
Some activities were organized both in the Head Office and in branches by the Trade Union funds such as decoration of New Year trees, presents, and tickets for participating in different New Year activities.
By the decision of committees set up by the order of the General Director of the Company the member of which Trade Union is, pecuniary aid was provided to those employees whose family members died. The Trade Union provided also material assistance to the needy employees.
82 ANNUAL REPORT 2006
In 2006 the total amount of 11 674.6 thousand AMD has been accrued to the account of Trade Union from the Company Salary Fund.
Plan of Trade Union for 2007
In 2007 it is planned to continue and expand the works directed at organization of sport and cultural works among the employees. We have already started the acquisition of sport inventory for participating in other competitions. Priority is given to the organization of chess championship in the Company.
Greatest attention should be given to the activities directed at organization of holidays of children and training of personnel and increase the evolvement in these activities.
Activities directed at provision of pecuniary and material assistance for moral and encouregment purposes, as well as activities pursued by management of the Company and departments of Head Office (mainly Human Resources and Technical Sequrity) for improving moral and psychological atmosphere, solution of development and social problems shall be continued.
83 ANNUAL REPORT 2006
7. PUBLIC RELATION
84 ANNUAL REPORT 2006
ON ACTIVITIES IMPLEMENTED BY THE PUBLIC RELATIONS DEPARTMENT
(January-December)
In the frames of the “Management Contract” of AWSC, on March 6 and March 14, in Yerevan, “Kongress” hotel was organized the presentation about annual review of the 2005’s activities and 2006-objectives. The presentation has been invited the leading personnel of the Head Office and regional branches of the company, the representatives of RA Government, State Committee of Water Economy of Regional Administration Ministry and responsible persons of other ministries, the supervisory personnel of “Water Sector Development and Institutional Improvements PIU” SI, “USAID”, World Bank, Post Offices, Bank services, the representatives of professional consulting centers, the presidents of NGO-es, the representatives of mass communication media (newspapers, TV- Companies, Informational Agencies).
The Director General of the Company, the Managers of regional branches and the heads of the company departments has participated in the seminar, held on 9-10 March, in Jermuk (“Armenia” hotel). The Director General has presented, explained in details the methods, styles and the principal rules of sustainable management, as well as answered the questions.
JERMUK. Seminar in the Hhotel “Armenia”
The Director General of “SAUR NEPTUN GDANSK” organization was special guest in the seminar, who presents the activity and progress of the “SAUR NEPTUN GDANSK” company.
In April-May, by “H-2” Armenian TV was broadcasted the announcement about the collection payments, which are suggested to implement through “Haypost’ and Bank’s offices. The announcement has been prepared by the Directorate of the Company and addressed to the subscribers.
85 ANNUAL REPORT 2006
On September 27 and October 13, have been organized meetings of the General Director with the representatives of interesting NGO-ns, and Mass Media.
The results of the company activity for last periods of this year, as well as the course of programs and projects directed to the improvement processes have been presented the representatives of public organizations and Mass Media.
Meeting with NGO-ns and Mass Media
The Director General of the company has answered the questions of participants. In one copy of Informational Bulletin and summarized report of activity of the company given the participants of the meeting held on 27.09.06. The means of mass media (“LRABER” Program of “H-2” TV, newspapers) was broadcasted programs and published articles about that meeting. On November 9 and November 11, by Armenian TV Company was broadcasted a program about the situation and main issues of water supply of Martouni town, presented a new constructed gravity water supply system “Tzakqar-Martouni”. The inhabitants of Martouni town were expressed gratefulness about the effectiveness of new constructed gravity water supply system. On November 10, the General Director of the Company has answered the questions of journalists of “Khosqi Iravunk” program of “H-2” TV Company, presented the goals, issues and results of the “Management Contract” as well.
On December 8, was organized a meeting of the General Director in “Metropol” Hotel (Yerevan), where, in detail, was discussed the plan of financial budget 2007.
YEREVAN, in “Metropol” Hotel
86 ANNUAL REPORT 2006
During the year, the General Director and the specialists of the Company have been participated the different conferences, seminars, discussions related to the laws of “Drinking Water”, “National Program of Potable Water”, “Management Program of Water resources”, “Poverty Overcoming Program”, as well as regarding the Decrees of Public Services Regulatory Commission of RA, where has presented the interests of Company, current situation of modern methods and their necessity.
During the year, the Director General of the Company, in accordance with the established procedure, held consultations in Regional Branches of the company. During the meetings have been discussed the results of the company activity, as well as institutional questions. The representatives of SCWE, “Water Sector Development and Institutional Improvements PIU” SI, Local Governance Bodies has been participated in the meetings. Meeting in the North-West regional branch
During the year was published Informational Bulletin (“Trust”). The later has been delivered to all Regional Branches, interesting parties and persons.
Bulletin 1 Bulletin 2 Bulletin 3 Bulletin 4
The internal contacts have been provided between departments. The subscribers have been informed about the activity of the Company through the following mass communication media: “H-1”, “H-2”, “Armenia”, “ALM” “Kentron”, “Yerkir Media”, “Shant”-TV programs, “Hayastani Hanrapetutiun”, “Aravot”, “Hayots Ashkharh”, “Azg”, “Haykakan jamanak”, “Iravunk”, “Pakagitz”, “168 jam”, “Aib…Fe”-newspapers, Announcements (in a set of 15 000), Informational Bulletins (Quarterly), Questionnaires (for 7 000 subscribers).
87 ANNUAL REPORT 2006
As a result of implemented works has improved the activity of the Company. In this connection the General Director of the Company receives gratefulness from different regions. During the quarter AWSC has received 1654 letters, including assignments, letters (from SCWE - 407), as well as 102 announcements, from which 33 has from SCWE. There are studied, discussed in details by the departments of the company, answered 870 letters and 66 announcements. The rest are in process. AWSC, in accordance with the established procedure, has presented the technical and economical reports (monthly, quarterly) to the checking organizations.
VISIT OF SITES
ARARAT
VAYOTS DZOR
88 ANNUAL REPORT 2006
PLAN OF PUBLIC RELATION FOR 2007
In 2007, it’s suggested to continue AWSC subscriber’s awareness and information process as an important measure for implementation main issues of “Management Contract” third year.
In this connection has developed the program of Subscribers Awareness and Information.
It includes the concrete works by its responsible persons and implementation schedules. In the program was also presented the works of 2006 and their effectiveness.
The program suggests:
Elimination of illegal connections, Installation of water meters, Regulation of “Company-Subscriber” mutual relations, Goals of the activity and it’s transparency, Collection of payments through Bank and Post Offices, Participation of NGO-es, Local Governance Bodies and Mass Media.
89 ANNUAL REPORT 2006
8. PROCUREMENT
8A WB PROCUREMENT 8B SELF PROCUREMENT
December 2006
90 ANNUAL REPORT 2006
SAUR S. A. – AWS SCJC
MUNICIPAL WATER AND WASTEWATER PROJECT Procurement Management and Progress Report – 2006
WB PROCUREMENT
During reporting period have been carried out the following World Bank financed Municipal Water and Wastewater Project procurement: TEST BENCH
1. Procurement of Works 1.1. Renovation of AWSC HQ and 2 Branch offices – about 50,000 USD equivalent. have been finished 1.2. Have been singed 6 contracts for total amount of – about 1,068,000 USD equivalent.
2. Procurement of Goods 2.1. Goods received: Fuel for amount of – about 170,800 USD equivalent; Office equipment for amount of – about 43,000 USD equivalent; Spare parts for vehicles for amount of – about 40,000 USD equivalent; Vehicles and snow bikes, 7 units – about 67,800 USD equivalent; PE Welding units, 6 units – about 99,000 USD equivalent; Water meters (31 000) and Test Bench (1) – about 456,000 USD equivalent; Pipes and Fittings – about 220,000 USD equivalent; Materials for Sanitary Zones – about 73,000 USD equivalent.
2.2. Contracts signed: Pumps for Sevan and Dilijan for amount of – about 78,000 USD equivalent; Pipes and pipe fittings for amount of – about 787,000 USD equivalent; Water meters, 31,500 items for amount of – about 351,000 USD; Laboratory Equipment and furniture – about 255,000 USD equivalent.
3. Procurement of Consultancy Services 3.1. Designs for Tsaghkadzor and Charencavan have been completed. Designs for Ashtarak, Aparan and Gavar are in progress.
3.2. Have been organized 2 tenders for the selection of design companies for towns of Package 2 and Package 3, which are under final evaluation.
91 ANNUAL REPORT 2006
DIAGRAM 24
Contracting & Disbursement
Signed Contracts Paid Ammounts
8 000 7 240
7 000
6 000
5 000 4 530
4 000 000 USD 3 000
2 000
1 000
0 Jan. 06 Feb. 06 Ma.r 06 Apr. 06 May. 06 Jun. 06 Jul. 06 Aug. 06 Sep. 06 Oct. 06 Nov. 06 Dec.06 Month
Note* See also the attached TABLE-15
SELF PROCUREMENT
In compliance with Order number 71 of the “AWSC” CJSC General Director, from December 1, 2006 a new procedure of works was put into operation. The procedure regulates also works and goods procuring stages starting from preparing request forms and ending with handover & acceptance acts at the end of works and in case of purchasing goods- their storage.
Information on procurement within “AWSC” CJSC budget of 2006
1. Car services, petrol diesel and gaz 16,852,870 AMD 2. Pipes, fittings, valves and others 55,410,343 AMD 3. Water chlorination 9,240,322 AMD 4. Office supply, IT and cellular phones 13,384,212 AMD 5. Safety devices 4,851,800 AMD 6. Equipment for works 18,795,449 AMD 7. Other 4,806,622 AMD TOTAL ALLOCATED 123,341,618 AMD
TOTAL REQUESTED 318,611,470 AMD
92 ANNUAL REPORT 2006
PROCUREMENT OF GOODS IN 2006
December 2006 December 2006
December 2006 December 2006
PE WELDING EQUIPMENT
December 2006 December 2006
WATER METERS AND TEST BENCH
93 ANNUAL REPORT 2006
9. LEGAL & INSURANCE
94 ANNUAL REPORT 2006
2006 ANNUAL RESULTS OF THE LEGAL AND INSURANCE DEPARTMENT
PAYMENT OF RECEIVABLES Legal Division of the “AWSC” CJSC collected AMD 31 544 000 receivables from total claim amount of AMD 188 414 200 and AMD 100 382 700 satisfied by court judgments. The judgments passed in favor of the Company as a creditor are mostly not executed by the law enforcement bodies about which the management of this service is duly informed. Among the debtors there are customers not paying against the services provided by the Company due to the fact that court judgments are not executed by the law enforcement bodies.
TRANSFER OF PROPERTY According to the RA Government Resolution number 1458-² “On Reorganization of the “AWSC CJSC” the transfer of fixed assets and non current assets in progress to the AWSC CJSC has not been fully completed causing additional liabilities for the Manager not envisaged in the Management Contact.
INSURANCE Transport facilities and construction machinery purchased by the Company in 2005-2006 have been insured against the accidents and damages caused by the third parties.
REPRESENTATION IN THE COURTS In 2006 the lawyers of Legal Division participated in numerous legal cases defending the interests of the Company the overwhelming majority of which were labor disputes, claims on compensation of losses, as well as appeals against the activities of state authorities.
SHORT DESCRIPTION OF ACTIVITIES TO BE CARRIED OUT IN 2007
1. Coordination of the branch lawyers works; 2. Control over fulfillment of insurance contracts; 3. Evaluation of legal activities of branches; 4. Legal expertise of new contracts; 5. Editing of contracts, internal orders, powers of attorney, regulations and other documents; 6. Legal consultations to the Manager within the framework of Management Contract.
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