The Performance Measurement Initiative of PMU in Water Services
Introduction:
Indicators are characteristic parameters that describe a status (operational, financial, technical etc) of an entity or process based on measuring the variable that define an indicator. The emphasis lies on measuring, meaning to say that judgment is based on verifiable facts and is not subject to individual impressions. As such and if measured periodically the indicators show a development trend.
| Indicators are a tool and not a solution. As such they have only statistical value unless they are analyzed, when they can then contribute to a better understanding of prevailing situations and circumstances. |
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The Water Authority of Jordan (WAJ) has identified performance measurement as a key component of its drive to increase transparency and accountability in the water services in Jordan.
The Performance Indicator Initiative for Water Services was launched in July 2005 with an initiation workshop, bringing together the major stakeholders of this task. Since this time PMU has received feed-back from LEMA (Management Contract Greater Amman), the Aqaba Water Company (AWC), Balqa and Tafieleh Governorate Administrations.
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The current set of indicators incorporate the WAJ key indicators / variables, which are:
• Number of staff per 1000 subscribers
• Cash collected as % of billed
• Non-revenue water as % of system input
• Operation cost recovery
• Water quality compliance with standards
The Jordanian Context
Even though being one of the most water-scarce countries in the world, almost the entire population (service coverage 97%) has access to piped water supply services. The related figures for wastewater services are 60%. These figures are outstanding in the developing world, showing an extraordinary commitment of the Government towards health concerns.
Jordan, however, is a country with one of the highest population growth rates, which has been further aggravated periodically by a high influx of people from surrounding military conflicts. Retaining the coverage of the services or even expanding it carries the burden of ever higher cost and narrowing the gap between demand and availability of resources.
Being caught between these two circumstances, increasing the effectiveness of service provision and exercising caution in the use of water are mandatory. Recent investigations have shown that there is a significant variety of potential improvements that will help ease the situation, thus postponing decisions to implement very costly new developments.
Introduction of Performance Indicators (PIs) is accepted to be a useful management tool for measuring the efforts of the utilities towards more effective operation of the facilities while maintaining or even increasing the quality of services. With applying and monitoring of the right PIs, a better insight into prevailing problems is gained which in turn serves to highlight those areas in need of remedial action.
Applicability of the IWA PIs
In recognizing the worldwide problems and in order to provide also the means for international comparison and sharing of improvement efforts and related effects, the International Water Association (IWA) has come up with an extensive set of 138 Performance Indicators grouped into the following main categories:
• Water resources
• Personnel (of the utility)
• Physical components
• Operational aspects
• Quality of services
• Financial aspects
Wastewater
The PMU/WSAU issued a version 6,1 November 2008 which contains the following list of PIs:
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IWA Categories / Number of Indicators
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Water Resources
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Personnel
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Physical
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Operational
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Quality of Services
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Financial
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Wastewater |
TOTAL
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IWA 2000
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2
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22
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12
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36
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29
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37
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138
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WAJ/PMU Pilot Areas
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Importance Level 1
|
1
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1
|
1
|
1
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4
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3
|
3
|
14
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|
Importance Level 2
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2
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1
|
0
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5
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3
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4
|
1
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16
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|
Importance Level 3
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0
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1
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0
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2
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1
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0
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0
|
4
|
|
TOTAL
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3
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3
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1
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8
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8
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7
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4
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34
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Establishment of service standards and benchmarks
Benchmarking is a useful tool to measure performance development of a utility relative to other utilities (e.g. “best practices”), and can be used to identify problems. It can also be used to justify performance targets a regulator would like to see realized by utilities. Service standards are standards that have been fixed and that are to be achieved by a utility. With the further development of the monitoring and reporting concepts, and an increasing WSAU role, a review could be made of existing service standards and how to include the standards in the monitoring and reporting exercises.