Commercial Principles in Middle Governorates (Zarqa, Madaba, and Balqa)
GTZ has supported the Water Authority of Jordan since 1994 by the provision of assistance aimed at increasing the efficiency of potable water supply and wastewater disposal services through commercialisation of business processes and introduction of private sector participation under the Operations Management Support Project. The Ministry of Water and Irrigation, through the Water Authority of Jordan (WAJ), has requested support in applying the lessons learned in the Project, and the experience of various Private Sector Participation (PSP) initiatives, to the Middle Governorates of Jordan, i.e. Balqa, Madaba and Zarka.
The five phases of the ongoing Operations Management Support (OMS) Project to date have covered inter alia:
Phase 1 – (04/94 – 03/96) – Assistance in the development and application of water loss reduction programmes; improvement of maintenance & repair services, preparation of integrated GIS based information management systems and financial management/accounting procedures; and restructuring and reorganisation proposals for the Amman Governorate Water Administration (AGWA) to improve the operations management through commercial business practices and PSP.
Phase 2 – (04/96 – 03/99) – Assistance with the preparation of the World Bank financed Amman Management Contract and preparing the establishment of an autonomous water entity, AGWA, by introducing computerised commercial accounting systems; carrying out a Comprehensive Subscriber Survey (CSS); and establishing an integrated GIS based Information Management System.
Phase 3 – 04/99 – 03/01) - Establishment of autonomous, decentralised and commercially operating WAJ business units for Aqaba and Irbid Governorates, including establishment/updating of the fixed assets register; preparation of financial reports (profit & loss statements); development and introduction of GIS units; CSS in Aqaba and a pilot CSS in Irbid.
Phase 4 – (04/01 – 03/02) - Assistance with decentralising and isolating the four northern Governorates from WAJ headquarters and forming a new entity called Northern Governorates Water Administration (NGWA), including completing a CSS, establishing an integrated GIS based Information Management System, and the introduction of a number of computer based management and monitoring tools.
Phase 5 – (04/02 – 06/06) – Support to developing a new commercialisation option, Micro-PSP; corporatisation of WAJ entities for the Ministry of Water & Irrigation; developing applications and operating the integrated GIS based information management system; and developing performance monitoring systems and indicators for PSP. In the Middle Governorates, assistance was also given in the development of the first Micro PSP in Madaba, to Balqa in carrying out a CSS, , and to Madaba in carrying out a CSS, and creation of a GIS Unit.
In the operations management support in water supply/wastewater disposal component, experts from the programme team advise the employees of the WAJ and the water supply companies in the three Middle Governorates on improving technical operations and the organisation of water supply/wastewater disposal systems. This also includes the introduction of awareness-raising measures on the proper use of water, especially in cooperation with women’s groups. Working groups develop concepts for future operating models for the water supply companies. Employees of the water supply companies perform reviews of the financial and operational situations and follow these up (outputs). Building on the advisory approaches, the managers at the MWI, WAJ and PMU decide on the future operator structures in the Middle Governorates, and the managers of the water supply companies improve operations management and develop concepts for raising awareness among the population (uses of outputs). This package of measures will improve operating efficiency in water supply/wastewater disposal in the Middle Governorates (direct benefit). The components of support include: process and technical consultancy by international, regional and local long-term and short-term experts, inputs of materials and equipment (computer equipment, vehicles, items of equipment for water supply/wastewater disposal, training) and training measures. Local funds shall be used to finance PSP measures in the field of water supply/wastewater disposal.