QUARTERLY REPORT OCTOBER-DECEMBER 2014 PREPARED BY MANAGEMENT CONTRACTOR TABLE OF CONTENTS 1. COMMERCIAL DIRECTORATE .................. 4 2. OPERATIONAL DIRECTORATE ................. 8 3. WATER REMOVAL DIRECTORATE ........ 33 4. ADMINISTRATIVE & FINANCIAL DIRECTORATE ................................................ 37 5. INTERNAL CONTROL DIRECTORATE .... 43 6. HUMAN RESEOURCE DIRECTORATE .... 45 7. QUALITY, SAFETY & ENVIRONMENT DEPARTMENT ................................................. 48 8. PUBLIC RELATIONS DEPARTMENT ....... 50 9. INVESTMENT PROGRAMS COORDINATION DIRECTORATE ................ 53 10. TOTAL MANAGEMENT PLAN IMPLEMENTION ............................................ 74 11. INDICATORS ............................................. 75 12. APPENDIX ................................................ 87 COMMERCIAL DIRECTORATE 1.1 Billing and revenue ................................................................................................................................................... 5 1.2 Customers service center .......................................................................................................................................... 7 During the IV quarter of 2014 all water meter data were recorded online and with average index of previous months (with the exception of a number of villages). Pa- per records of water meter data are almost canceled. Every month about 60 000 water meter data are recorded online, the rest are calculated by the av- erage of previous 3 months. Visits are made every 3-4 months, thus after every 3-4 months all water meters along with data recording are available. The implemented projects has its pos- itive results and during the IV quarter of 2014 a progress was recorded. Installation of high quality water me- ters are carried out. This commercial initiative was also justified and the ev- idence is consumption increase up to 2 times and more. More detailed analyt- ical report on these high quality water meters will be presented in the annual report. The company continues to provide necessary information via SMSs and individual envelopes (monthly consumption, unpaid debt, planed water supply cut off ). 1.1 BILLING AND REVENUE A billing level continues to improve due to implemented activities. Table1. Comparative indicators of average monthly consumption per customer with water meter 1 400 17% 1 291 1 200 1 142 12% 1 000 11% 13% 800 600 mln AMD 448 400 383 424 419 400 359 2013 200 2014 0 growth % October November December Total IV quarter Commercial directorate 5 The main growth is conditioned by customer-residents. Average monthly expense per customer is continually increasing. Table 2. Comparative indicators of average monthly consumption per customer with water meter 11.0 10.8 10.5 10.2 10.1 10.0 9.5 9.8 3 9.0 9.4 m 8.8 8.5 8.0 2013 7.5 2014 7.0 October November December Together with billing, level of payments is also increasing. There was an increase of payment about 30.0 million AMD or 3% in comparison with the same period of last year. Table 3. Comparative indicator of billing 1 400 5% 1 204 1 234 1 200 1 000 3% 800 2% 600 404 419 440 mln AMD 400 404 381 390 2013թ. 200 0% 2014թ. 0 growth % October November December Total IV quarter Despite the fact that payment level is continually increasing, there are about 400 million AMD incomplete payments during the year. A number of activities are carried out: • SMSs and envelopes are sent to customers regualarly, • Surveys and visits are implemented by the employees of Customer Service Center • Lawsuits • Individual water supply cuttings 6 Commercial directorate 1.2 CUSTOMERS’ SERVICE CENTER During October-November of 2014 Customer service Table 4 center registered 4 088 calls, 3 498 out of which were Number of calls according to issue type about AWSC CJSC activity and 663 didn’t refer to 850 the company (Yerevan Djur, etc). During the quar- 799 ter Customer service center registered more than 663 563 voice mails which were studied and were accordingly 439 427 processed. 388 Customer Service Center greatly assists branches in accomplishing daily activities to receive the calls from 12 10 10 the customers and solve them as soon as possible. October November December Commercial Exploitation/Technical Other During the quarter the number of commercial calls were significantly increased in regard to number of commercial activities (monthly about 160 000 SMSs on billing and incomplete payment, personal ordered envelopes on customers data, etc). During this quarter the operators of the center carried out a telephone monitoring. The employees contact- ed those customer-residents who had consumed water during the whole 2014 and didn’t do any payment. As a result once again the reasons of non- payment were clarified. It became possible to survey only 108 customers out of 121 included in the list. 1 year not paid billing of 108 customers was 2.4 mln.AMD. After the calls 36customers made payments of 431.0 AMD as of 31.12.2014. December Number of the paying customers 36 Amount paid (thous.AMD) 431 The survey conducted among non-paying customers is still in process. This time it was conducted in Masis and Artashat towns. Those customers who were for some reasons unavailable the operators tried to clarify the reasons of non-pay- ment through personal phone calls. While analyzing the results of the survey it should be mentioned the outcomes are rather satisfactory. October November December Total Number of the paying customers 52 35 32 72 Amount paid (thous.AMD) 1 037 440 530 2 007 Commercial directorate 7 OPERATIONAL DIRECTORATE 2.1 Key Performance indicator ......................................................................................................................................... 9 2.1.1 Service duration indicators .................................................................................................................................. 9 2.1.2 Financial performance indicators ................................................................................................................... 10 2.1.3 Water losses indicators ..................................................................................................................................... 11 2.1.4 Water quality indicators ................................................................................................................................... 11 2.2 Impact of project investment plan on KPI ................................................................................................................ 12 2.3 Exploitation unit .........................................................................................................................................................13 2.3.1 Water production ............................................................................................................................................. 13 2.3.2 Distribution ....................................................................................................................................................... 16 2.3.2.1 Water supply ....................................................................................................................................... 16 2.3.2.2 Reduction of losses .............................................................................................................................. 16 2.3.2.3 Illegal connections control ................................................................................................................. 17 2.3.2.4 Sectorization works ............................................................................................................................ 17 2.3.2.5 Outstanding works .............................................................................................................................. 18 2.3.3 Operation divisionion ...................................................................................................................................... 18 2.3.4 Special works implementation ........................................................................................................................ 18 2.4 Water quality ............................................................................................................................................................. 19 2.4.1 Drinking water quality monitoring ................................................................................................................ 19 2.4.2 Wastewater quality monitoring ...................................................................................................................... 21 2.4.3 Natural resources utilization .......................................................................................................................... 22 2.5 Technical department ................................................................................................................................................ 23 2.5.1 Technical investigations, design ....................................................................................................................... 23 2.5.2 The control of capital expenses ........................................................................................................................ 25 2.6 New technologies unit ............................................................................................................................................... 27 2.6.1 Information technologies ................................................................................................................................