1. ORGANIZATIONAL LEARNING
OPPORTUNITIES
STUDY TOURS CONDUCTED FOR MIYAHUNA
IN 2007 - 2008
Colombia, United States of America
and Spain
Contract No. AFP-I-00-03-00035-00, Task Order No. 539
SEGURA / IP3 Partners LLC
May 2009
The authors’ views expressed in this publication do not necessarily reflect the views of the United
States Agency for International Development or the United States Government.

2. Acronyms
AGBAR Aguas de Barcelona
AMR Advanced Meter Reading
ASERCO AGBAR Servicios Compartidos
AWC Aqaba Water Company
COP Chief of Party SEGURA/IP3
DCWASA District of Columbia Water and Sewer Authority
EMASESA Water Company of Seville
EMIVASA Water Company of Valencia
GWh Giga watts per hour
IT Information Technology
ITA Instituto de Tecnología del Agua (Water Technology Institute)
JD Jordanian Dinar
JVA Jordan Valley Authority
LBWD Long Beach Water Department
MIYAHUNA Jordan Water Company
MW Mega watts
MWDSC Metropolitan Water District of Southern California
MWI Ministry of Water and Irrigation
NRW Non-revenue Water
PRV Pressure-reducing Valve
SWP State Water Project
UFW Unaccounted for Water
O&M Operations and Maintenance
USA United States of America
USAID United States Agency for International Development
€ Euro
$ United States Dollar
WAJ Water Authority of Jordan
Units
Km2 Square kilometer
Kw-h Kilowatt-hour
lcd Liters per capita per day
MCM Million cubic meters
MCM/year Million cubic meters per year
Currency equivalents (2008)
1€ = 1.31 $ dollars
1 JD = 1.43 $ dollars
The authors’ views expressed in this publication do not necessarily reflect the views of the United
States Agency for International Development or the United States Government.

3. CONTENTS
INTRODUCTION ..............................................................................................................2
WATER PRICING..……………………………………………………………………….4
MANAGING WATER SCARCITY………………………………...……......................13
CUSTOMER SERVICES………………………………...……......................................38
CORPORATE GOVERNANCE ….………….………………..………...…...................46
INFORMATION TECHNOLOGY ...……………...........................................................56
STRATEGIC PLANNING …………………………………………...……………........69
CORPORATE CULTURE ………………………………………………….…………...75
TRANSIENT MANAGEMENT ………………………………………………....... ......83
BULK WATER MANAGEMENT…………………….………………………………...90
OTHER INNOVATIONS …………………………………………………………….....94
ANNEX – STUDY TOURS DETAILS………………………………………...106
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 2

4. INTRODUCTION
Making MIYAHUNA’s vision, mission, and values real and not empty words on paper is a
major challenge for everybody in the company -- the management committee, senior and
middle level management, and all employees.
For the management committee and senior management, the challenge is to create
conditions that make productive change a natural way of life in MIYAHUNA. This way of
thinking is aptly expressed by Rosabeth Moss Kanter when she says that all managers have
two jobs – “handling today’s issues and getting ready for the future.”1
In line with the above thinking, this report was prepared by MIYAHUNA’s management in
cooperation with SEGURA/IP3 to assist management and employees at all levels in getting
ready for the future by identifying, considering, and implementing opportunities for
improving the quality and efficiency of the services. The report seeks also to encourage the
exchange of ideas with staff of sector government agencies and other water companies.
The report consolidates the results of study tours conducted in 2007 and 2008 as part of the
technical assistance provided to MIYAHUNA by USAID through SEGURA/IP3. The study
tours were to Colombia, Spain, and the United States2. The participants in the tours were
members of the management committee and directors.
The observations during the study tours reflected in this report should provide an
opportunity for organizational learning aiming at developing MIYAHUNA into a change-
adept rather than a top-down bureaucratic organization. In the words of Moss Kanter, a
change-adept organization anticipates, creates, and responds effectively to change while the
top-down bureaucratic organization lacks those characteristics.
The expectation of the management committee and senior management is then that
MIYAHUNA’s managers and employees at all levels learn from the lessons and experiences
included in the report and use them for developing and acting on an agenda for continuous
change and improvement, and for identifying and implementing specific projects. The
Super Client Program, the NRW Reduction Program and the Tariff Review Program under
implementation at MIYAHUNA are good examples of the potential of the ideas in the
report.
The management committee and senior management are determined to continue searching
for opportunities for organizational learning. To make this approach effective,
management expects the collaboration and direct involvement of all MIYAHUNA’s
employees without consideration of ranking. Initiatives and suggestions from everybody are
welcome.
1
Moss Kanter Rosabeth. On the Frontiers of Management. Harvard business review, 1997, page, 3.
2
Detailed reports for each visit were prepared including analysis and recommendations from tour participants.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 3

5. WATER PRICING
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 4

6. TARIFF POLICY: THE EXPERIENCE OF COLOMBIA
Cost recovery and tariff policy
The Colombian government and sector authorities have made sustained efforts since the
early 1990s to raise water and sanitation tariffs closer to cost recovery levels. Those efforts
have been instrumental in lifting the average domestic water and sewerage tariff from USD
0.33 per m3 in 1990 to USD 0.78 in 2001. The tariffs vary from municipality to
municipality taking into account the particular characteristics of each system, particularly
their cost levels.
The impact of the tariff increases in low-income groups has been alleviated by a cross-
subsidy from some group of consumers to other groups. This cross-subsidy scheme dates
back to the 1960’s and was subsequently included in the 1991 Constitution and, more
recently, developed in more detail by law 142 of 1994. The cross subsidy system is part of
a national tariff framework applicable to the electricity, telephone, and water and sanitation
services.
The system considers a six-level social stratification of all customers throughout the
country, according to the physical quality of the housing and general amenities. The
classification is undertaken by local authorities in line with broad national guidelines.
Households in the upper two strata (strata 5 and 6) have surcharges added to the cost of the
services provided. Strata 4 pay the cost of the services, while those consumers in the lowest
strata (strata 1 through 3) receive subsidies (discounts over the cost of the services).
The funds generated by the surcharge to strata 5 and 6 and to non-residential consumers in
each company are applied to cover the cost of the subsidies to strata 1 through 3 in the same
company. If the surcharges exceed the subsidies, the difference goes to a “Solidarity Fund”
in the municipality. On the contrary, if the surcharges are insufficient to cover the subsidies,
the municipal government should cover the difference with resources from the “Solidarity
Fund” or from its own source of revenue.
The surcharges and the discounts are explicitly reported on the customer’s bills.
Two-Step tariff determination
Step 1: Establishment of referential cost by the regulatory commission
The water companies prepare estimates of the full costs incurred to deliver the services
(Referential Cost), following a methodology defined by the Regulatory Commission. The
methodology includes a detailed description of acceptable costs in each cost category and
also provides for “efficiency cost adjustments” based on statistical cost analysis carried out
by the Commission.
The typical monthly bill (average bill) has a cost structure that shows investments as the
predominant component, followed by operation and maintenance cost, administrative cost
and, environmental charge. See graph below.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 5

7. Typical Monthly Bill Components
(14.34 cm/month)
Average Environmental Average
Charge Administrative Cost
Average
Operation &
Maintenance
Average
Cost
investment cost
23%
60%
Step 2: Establishment of final tariffs by the municipality or the district
The final tariffs are determined by the company in accordance with the Referential Cost as
approved by the Regulatory Commission.
Tariff components
Fix Component ($/subscriber):
It includes the total administrative costs divided by the number of customers. This amount
is denominated the average administrative cost (CMA) and it is included as a fix charge in
the water bill.
Variable Component ($/m3):
Is based on the volumetric consumption and is the result of the addition of:
1. Average operation and maintenance cost
2. Average Environmental Tax cost
3. Average cost of investments
Referential cost formula
Ref.Costw = CMAw + Billed m3 * (CMOw + CMIw+ CMT)
Ref.Costww = CMAw w + Billed m3 * (CMOw w + CMIww+ CMT)
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 6

8. Where:
CMA: Average administrative cost
CMO: Average operation and maintenance cost
CMI: Average investment cost
CMT: Environmental tax
Tariff calculation by Strata
Tariffi = CMAref * fi + CMLPref * Billed m3 * fi
Tariff is indexed by inflation every year
Where:
• CMAref : referential administrative cost
• CMLPref : the variable operation and maintenance cost
• i: tariff Strata (from 1 to 6, being 4 the referential cost)
• fi: percentage of subsidy or contribution of the referential cost
Solidarity contributions (Subsidies)
According to Decree 57 of 2006, categories 5 and 6 of subscribers and the commercial and
industrial categories have a tariff with the following contributions to the average tariff of the
referential cost:
Contributions:
• Strata 4: 0%
• Strata 5: 50%
• Strata 6: 60%
• Commercial: 50%
• Industrial: 30%
The main purpose of the tariff regulation as defined in decrees 57 and 1013 is to achieve
equilibrium between subsidies and contributions from other subscribers and the external
funds provided by the municipality or central government.
CONTRIBUT
SUBSIDIES ION
STRATA 5 AND
6 COMMERCIAL,
STRATA INDUSTRIAL
1, 2 Y 3
CONTRIB.
STATE AND
MUNICIPALITY
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 7

9. Subsidies
The tariff as percentage of the referential cost is presented in the table below for the city of
Bogota for the month of September 2007:
Typical Tariff
Bill for As % of
Aug. 07 Refferential
JD (equiv.) Cost
Strata 1 4.7 29%
Strata 2 9.8 61%
Strata 3 14.4 91%
Strata 4 15.9 100%
Strata 5 30.4 191%
Strata 6 37.9 238%
The percentage contribution from each category compared to the percentage variation of the
typical bill (average) per category as depicted in the last table is different because the
different water level consumption between categories. For example in the case of Bogota in
September 2007, the customers in strata 5 contributed 50% of the surcharges of contribution
to finance the subsidy, but due to the higher level of consumption, their average bills end up
being 91% more than the category 4.
The financing of the cost of services for strata 1, 2 and 3 is presented in the following graph.
Estrato 1 1
Strata Estrato 2
Strata 2
Payment Payment by Payment
PAGAN
by User Other Users by User
PAGA USUARIOS
in 30%
Strata 34% in 60%
Strata
USUARIO APORTANTES
30% 30% 34% 60%
PAGAN PAGA
Payment by
USUARIOS USUARIO
Other Users
APORTANTES 60%
60%
60%
PAGA CIUDAD from the
Payment by the city
Payments Payment by the the
PaymentPAGA CIUDAD
from City
10% 10%
Solidarity Fund Solidarity Fund
6% 6%
10% 6%
Payment by
PAGAN
USUARIOS
Other Users
Estrato 3 3
Strata
APORTANTES
7%
7%
Payment
PAGA CIUDAD
Payment by the the
Payment from city by Users
by User
1%
Solidarity Fund
1% in 92%
Strata
1% 92%
PAGA USUARIO
92%
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 8

10. TARIFFS: THE EXPERIENCE OF EUROPE AND SEVILLE - SPAIN
The delegation listened to various presentations related to tariffs:
• The tariff adjustment process in the European Union
• Seville Water Company (EMASESA) tariff adjustment program
European Union Tariff Experience: Water Framework Directive (FWD)
The ITA made a presentation about a directive approved by the European Parliament in
2000 establishing the water policy framework (Water Framework Directive- FWD) to be
applied by the member countries. The framework established a 9-year period for all states
in the Union to adopt it. The FWD also established deadlines for the member states to
report to the European Commission on progress made in its implementation. The principles
for water costing are presented in the graph below.
Principles for Water Costing
FWD Directive
The member states commit
themselves to adopt no later than
2010 a policy of water prices that will
provide adequate incentives for an
efficient use of water resources that
contributes to achieving the
environmental objectives of the
present directive.
Implementing the above principles was a significant challenge, as most European countries
were far from applying them. Greece, Portugal, Ireland and Spain were the countries that
needed the major adjustments. The countries requiring comparatively less adjustment were
United Kingdom, France and Germany. See graph below.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 9

11. Water Tariffs in European Countries before the Implementation of FWD
€/m³
Portugal Greece Ireland Spain France U.K. Germany Denmark
Water Tariff in 2000 Water Tariff needed to recover full cost
Some European cities had experienced steep adjustments in tariff rates even before the
directive. Copenhagen, for example, increased tariffs 20 times between 1972 and 1992 and,
then, in the ten years between 1992 and 2002 increased tariffs again by 25% or 2% per year.
Copenhagen Water Tariff Evolution
€/m³
Year
Innovative Tariff System in Seville
EMASESA implemented in 2006 an innovative tariff system for residential users. The new
system replaced the progressive tariff block system implemented in 1995, which awarded a
bonus to households with low consumption, and charged higher prices to households with
higher consumption. The decision to change was due to EMASESA’s perception that the
system had one major flaw, as large number of households with only one or two people
benefited unfairly from the allowance for low consumption, and, conversely, a large number
of families with a higher number of members were penalized with higher tariffs.
After reviewing various options, EMASESA introduced in 2006 a tariff system for
residential consumption that takes into account the number of inhabitants per household and
provides bonuses to customers with consumption levels below 10 m³ per quarter per person
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 10

12. and penalties for those that consume more than 15 m³ per quarter per person. The rest of the
clients are grouped in categories I and II.
The system has been gradually developed since 2006 initially being some customers billed
for per-capita consumption while others billed on the basis of household consumption. In
2009 all customers are billed on a per-capita base.
The tariff system is based on EMASESA’s estimates of average members living in a
residency. If a family has more members living in the house, it should notify it to the
company so its consumption can be measured and thus be entitled to a bonus. The bonus is
equivalent to 26% of the total bill.
The tariff in process of implementation had the following stages:
YEAR 2006:
Blocks I and II are calculated on
Block with bonus: less than 3.33 m³/person/month the basis of 4 people per
Block I: From 0 to 16m³/household/month household.
Block II: More than 16 m³/household/month
After new information showed that the average household had 2.4 people per household, a
new estimate was obtained for 2008 decreasing the average household from 4 to 3.
YEAR 2008:
Block with bonus: less than 3.33 m³/person/month Blocks are calculated on the
Block I: From 0 to 12 m³/household/month basis of 3 people per household.
Block II: From 13 to 15 m³/household/month
Block III: More than 15 m³/household/month
For 2009, it is planned that the tariff will be calculated by person. If this information is not
available, the limits of the blocks will be calculated based on 2.75 persons per household.
YEAR 2009:
Block with bonus: less than 3.33 m³/person/month
Block I: From 0 to 4 m³/person/month Blocks are calculated per person.
Block II: From 4.1 to 5 m³/person/month
Block III: More than 5 m³/person/month
Non Residential Consumption
The non-residential consumption has a single block tariff with incentives and penalties, as
shown below:
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 11

13. • Night consumption: a 39% bonus estimated on the base tariff for industry.
• Irrigation: EMASESA estimates the level of “efficient water consumption”
according to the surface and the technologies available. Consumptions above
EMASESA’s estimates are penalized with higher tariffs, and even with suspension
of service.
• Contamination: customers are charged a penalty for contamination. EMASESA
offers, however, assistance to remedy contamination problems.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 12

14. MANAGING WATER SCARCITY
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 13

15. DEMAND MANAGEMENT: THE EXPERIENCE OF BOGOTA -
COLOMBIA
Tariff policies based more on the cost of services than on political considerations, and water
losses reduction programs carried out by service providers have had a significant impact on
water consumption levels. The average consumption per connection in Bogota has had a
significant reduction (from 31.5 m3 in 1993 to 14.9 meters in 2006) while maintaining a
continuous service (24 hours a day and 7 days a week) to a growing number of customers
(from 5.5 million in 1993 to 7.4 million in 2005). See graph below.
Consumption Index By Billed Customer
(Billed Customer/Average users)/12
Consumption per Billed Customer
The changes in consumption per connection have allowed EAAB to postpone substantial
investments in water production, as shown in the graph below. The postponement of these
investments significantly reduces the marginal cost of water and alleviates EAAB’s
finances.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 14

16. Water Supply - Demand Trend in Bogota
24,00 Projection of demand before
Supply equal to demand
Water supply projected (2012)
1997
22,00 22.0
20,00
Flow (m3/s)
18,00
16.5
16,00
14,00
12,00 14.2 m3/s (2005)
10,00
90
82
06
98
80
86
92
94
96
00
02
04
10
14
16
84
88
08
12
18
20
19
19
20
19
19
19
19
19
19
20
20
20
20
20
20
19
19
20
20
20
20
Year
Factors that reduced consumption of potable water
Law 373/97 – Rational use of water Emergency in supply due to Chingaza crisis
Increase of tariffs associated to Law 142 (tunnel collapse) 1997
of 1994. Economic crisis since 1997
Implementation of Non Revenue Water
Program
The other cities have had similar experiences. Triple A, for example increased its number of
customers by 75% between 1996 and 2007 while supplying less water to the system (the
volume of water supplied declined from 16.5 to 15.0 million m3). See following graph.
In addition to provide service to a growing number of customers, Triple A has been able to
provide continuous service. The water supply service before Triple A was intermittent (3 to
4 days on average in the service area).
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 15

17. BARRANQUILLA
EVOLUTION OF SUBSCRIBERS VS. DELIVERED WATER
1996 - 2007 324.545
Subscribers
18.0 340,000
16,5 320,000
17.0 mil m3 300,000
15,0 280,000
mil m3
16.0 260,000
240,000
15.0 220,000
185.047 200,000
14.0 Subscribers 180,000
160,000
13.0 140,000
1/1/1996
7/1/1996
1/1/1997
7/1/1997
1/1/1998
7/1/1998
1/1/1999
7/1/1999
1/1/2000
7/1/2000
1/1/2001
7/1/2001
1/1/2002
7/1/2002
1/1/2003
7/1/2003
1/1/2004
7/1/2004
1/1/2005
7/1/2005
1/1/2006
7/1/2006
1/1/2007
7/1/2007
M ill. M3 Water Subscribers
A similar case is observed in Cartagena where approximately 160,000 customers in 2007 are
served with the same quantity of water supplied to 90,000 customers in 1999. From an
approximate consumption of 152 m3/ person/ y to 83 m3/person/y.
More Users With Less Water Distributed
Cartagena
78,000,000 180,000
76,000,000
160,000
74,000,000
72,000,000 140,000
Cubic Meter /Year
Subscribers
70,000,000
120,000
68,000,000
66,000,000 100,000
64,000,000
80,000
62,000,000
60,000,000 60,000
Agua dit ribuida (M3 año)
Distributed water Abonados at endidos
Customers served
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 16

18. WATER DEMAND MANAGEMENT: THE EXPERIENCE OF
SOUTHERN CALIFORNIA - UNITED STATES OF AMERICA
California is suffering from an 8-year-old drought in the catchments of the Colorado River,
with the lowest deliveries on record of bulk water from different sources. The levels of
local precipitation are also at record lows. The allocation of exceptionally limited water
resources among users is then a difficult task for water authorities. The difficulties are
compounded by local environmental laws protecting certain fish species, thus reducing the
withdrawal of water from rivers and lakes below historical levels.
In response to the water shortages in its service area, MWDSC has been implementing a
number of programs aiming at achieving a more efficient water usage. The programs are
concentrated on three main areas: 1) research and development, 2) incentives for water
conservation, and 3) changes in consumer behavior. See graph below.
Water-Use Efficiency Programs
Research and Consumer
Incentives
Development Behavior
Innovative Conservation Residential Legislation
Enhanced Conservation Advertising & Outreach
Commercial
Annual Program Review Education
Water Recycling
Outside R & D Code Compliance
Seawater Desalination
Groundwater Recovery Price
BMPs
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 17

19. Since 1990, Metropolitan has invested $ 251 million in its
conservation programs saving about 1,164 MCM of water,
equivalent to $0.22 per m3.
Some of the conservation programs implemented to achieve the results in the box above are
outlined below.
Water-saving programs
These programs include; implementation of water-savings regulations, promotion of low-
flow toilets and showerheads, high- efficiency clothes washers, water conservation gardens;
educational programs; and more strict plumbing codes. The achievements of some of these
programs are summarized below:
High Efficiency Item Average Saving /Year
Toilet 10 m3
Washer 34 m3
Irrigation Controller 51m3
Water-saving Regulations
MWDSC and the partnering companies have enforced a number of regulations aimed at
reducing water consumption. These regulations include the following:
1. Banning washing of driveways, sidewalks, parking areas, patios or other outdoor
areas using a hose.
2. Prohibiting irrigation of gardens between 9:00 AM and 4:00 PM.
3. Prohibiting the operation of non-water conserving pre-rinse nozzle in food-
preparation establishments such as restaurants and cafeterias.
4. Banning watering of any area beyond saturation thus causing excessive runoff into
the streets.
5. Prohibiting operation of fountains and other water features that do not re-circulate
the water.
6. Banning washing vehicles with a hose.
The regulations require hotels and motels to provide customers with the option of not having
the towels and linens laundered daily. This option must be prominently displayed in each
bathroom and sleeping room, using clear and easily understood language.
Rebate Programs
MWDSC is increasingly using rebate programs to promote savings on water consumption.
As residential water consumption is mainly used in irrigation of gardens and landscaping (in
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 18

20. many areas over 50% of total consumption), MWDSC puts strong emphasis on programs to
reduce irrigation at residents’ premises as well as on the promotion of plants that require
less water.
Water Usage and Rebate Programs
30% Inside the House 70% Outside the House
Rebates offered for houses: Rebates offered for gardens:
- High efficiency toilet: $ 75-180 - Synthetic turf: $ 1/sq meter
- High efficiency clothes washer: $130 - Rotating irrigation nozzles: $ 4
- Weather based irrigation system: $ 0.15/sq meter
The rebates executed by most of the water departments in Southern California have
restrictions such as:
- Rebate is limited to available financial resources (companies allocate a limited budget
for each program)
- Rebate is not available for new developments
- Rebate requests are processed on a first-come first-served basis
- Only one rebate per household
- The equipment must be purchased new and installed before submitting application
- New developments are not included in the program (they are held to stringent water
conservation standards from the beginning)
- Subject to onsite installation verification
- Based on approved list of items to be installed
- Request must include the original receipt with the model and serial number
- Form filled and signed by the beneficiary
WATER SAVINGS REWARD PROGRAM FOR NON RESIDENTIAL
CUSTOMERS
$ 3.00 per every 4 cubic meter of water saved
This program rewards companies or institutions that:
- Install equipment that will capture, treat and reuse water that would
otherwise be discharged to the sewer.
- Replace existing process equipment with more efficient resulting in
reduced water demand.
- Upgrade with more efficient irrigation equipment such as rotating
nozzles, spray heads, valves, sensors, smart controllers, etc.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 19

21. Institutional Water Saving Programs
MWDSC, together with its participating agencies, has been successfully promoting the
reduction of water consumption in private and public institutions. Through incentives,
training and awareness programs, many institutions have developed their own programs to
save water. The incentives include payments for conservation efforts and results. Follow
some examples of these programs.
Institutional Water Savings Programs
Estimated
Institution/Agency Project Title Savings/Year
(In MCM)
San Diego County Water District Landscape Auditor Interns 1.4
Western Municipal Water District Smart Controller Irrigation Installation 1.1
Los Angeles Water Department Water broom Distribution 0.9
West Basin Municipal District Landscape Reform Program 0.6
Western Municipal District High Efficiency Toilet Installation 0.5
Total in 15 programs 10.5
The California Friendly Program
MWDSC started in early 2000 the “California Friendly Program”, which is a branding effort
to make it easier for customers to identify which products, organizations, and programs
make efficient use of water. This idea came as a follow-up to a poll indicating that
respondents did not know the water needs of different plants. In addition, about 81% of
respondents said they would purchase more drought-resistant plants if they were clearly
labeled as such. The program is expanding its branding effort so that products, builders,
businesses, gardeners and cities carry the California Friendly designation.
The California Friendly Landscape Program assembled a panel of
experts to approve the official list of nearly 300 drought resistant
plants; then partnered with Home Depot and 70 independent
gardens that sell plants.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 20

22. Programs launched under the California Friendly brand are the following:
1. Outdoor Conservation Outreach Program (education and public outreach).
2. Marketing and advertisement (website, radio, TV and print).
3. Consumer research.
4. Landscape Program (marketing, outreach and incentives).
5. Home Certification Program (a partnership with builders to build water efficient
landscapes and devices).
Water brooms have rebates of $150. California Friendly houses use 30% less water.
Under the California Friendly program, the Long Beach water utility has installed a
demonstration site where visitors or customers can see and learn about plants and
arrangements that can both save water and beautify the environment.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 21

23. Long Beach Water Department “drought tolerant garden” demonstration site
Incentives for Research and Development
MWDSC has a program to provide grants to universities for research and development of
cost-effective water saving technologies that can be implemented in water stressed regions,
locally or globally.
The program has exceeded MWDSC’s expectations. Thus, the funding was increased from
$ 120,000 in FY 2007 to $ 150,000 in FY 2008. Some of the results of the program are
presented below:
1. University of Southern California: new showerhead with touch activated on/off switch.
2. University of California at Riverside: rooftop rainwater harvesting.
3. University of SC Long Beach: conservation by onsite recycling.
4. Pasadena City College: biofiltration of household gray water.
The California Urban Water Conservation Council
In addition to utilities, the California Urban Water Conservation Council (CUWCC), a very
influential organization, benchmarks progress on water conservation by utilities and other
entities, and also allocate funding to different programs related to water.
The CUWCC was created to increase water-usage efficiency in the State, through
partnerships among urban water agencies, public interest organizations, and private entities.
The Council's main goal is to integrate urban water conservation “Best Management
Practices” into the planning and management of California's water resources.
The Council was created by nearly 100 urban water agencies and environmental groups that
signed a Memorandum of Understanding in December, 1991. Since then, the Council has
grown to 384 members. Those signing the MOU pledge to develop and implement fourteen
comprehensive water conservation programs denominated “Best Management Practices".
Once a year, the CUWCC publishes the names of institutions and their performance against
these 14 best practices and awards grants to programs of the best performing agencies.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 22

24. Long Beach Water utility believes that the results of the Council’s programs are mixed, and
that the net result is difficult to evaluate. On the one hand, the Council has succeeded in
promoting water conservation amongst all its members. On the other hand, the utility
believes that the Council’s programs inhibit new ideas for water conservation in areas which
are not included in the “Best Practices” list. The utility also believes that the staff-intensive
preparation of the reports to evaluate compliance with the “Best Practices” list is a major
effort for their organization, and that the system should be simplified and, perhaps, reduced
to a single indicator that effectively measures the results of water conservation efforts of
each utility.
The Best Management Practices list is presented below.
California Urban Water Conservation Council
Best Management Practices
1. Water survey programs for residential customers
2. Residential plumbing retrofit
3. System water audits, leak detection and repair
4. Metering for all new connections and retrofit of existing connections
5. Large landscape conservation programs and incentives
6. High-efficiency clothes-washing machine financial incentive programs
7. Public information programs
8. School education programs
9. Conservation programs for commercial, industrial, and institutional accounts
10. Wholesale agency assistance programs
11. Retail conservation pricing
12. Conservation coordinator designation
13. Water waste prohibition
14. Residential Ultra Low Flush Toilet replacement programs
American Leak Detection Franchise
American Leak Detection (ALD) is a company founded 30 years ago in Palm Springs
California, now turned into a franchise with presence in 8 countries. ALD specializes in
accurate, non-destructive detection of all types of leaks, including hidden water and sewer
leaks.
The company identifies leaks in swimming pools and in concealed plumbing systems, using
sophisticated electronic devices without bashing holes in walls or digging. The franchise is
considered one of the top 25 Franchise High Performers in the USA by The Wall Street
Journal. Also, for the seventh straight year, American Leak Detection was ranked #1 in its
category by Entrepreneur Magazine.
.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 23

25. ALD Opening Eye Statements:
• A leak the size of a pinhead can waste
1.3 MCM of water per year, enough to
fill 12,000 bathtubs to the overflow
mark.
• A leaking toilet can use 340 m3 of water
in 30 days.
• Approximately one in every 318 homes
or buildings has a leak.
ALD partners with associations and water companies to assist on water leak surveys, and
water conservation programs. For example, in March 2008, it teamed with the California
Rural Water Association to carry out educational programs in rural water districts. The
company gives free training seminars throughout the state titled, "Introduction to Water
Accountability and Leak Detection". The seminars are sponsored by the California Rural
Water Association and the California Department of Water Resources.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 24

26. WATER LOSSES REDUCTION: THE EXPERIENCE OF BOGOTA -
COLOMBIA
Program schedule
The three companies visited have developed successful programs of water losses reduction
during the past 7 to 18 years. An illustrative example is the program in Bogota, which
started in 1989 with a non-revenue water study. The study was followed up by the
establishment between 1992 and 2001 of four district zones covering the whole service area
of EAAB. Then EAAB management contracted with three private companies the operation
of the five zones.3 The bidding for the zones was completed during 2002 and 2003. So, by
now, EAAB has a five-year experience with private operators in the service area.
Main steps for the implementation of the program
The steps taken to reduce water losses are similar in the three companies, and include:
Step1: Mapping of sectors and sub-sectors, flow measurement points, feeders, isolation of
sectors and districts, and pre-modeling of the distribution zone.
Step 2: Field work including installation of valves and temporary/permanent closing of
sectors.
Step 3: Measurement of flows and pressure points in specific places: identification of
consumption curves and minimum night flows per district.
Step 4: Construction and calibration of mathematical models.
Step 5: Actions to reduce losses, including:
• Commercial activities:
- Identifying and regularizing illegal customers
- Replacing faulty meters
- Harmonizing billing cycles
•Technical:
- Establishing macro-sectors and districts
- Pressure control and bulk-water metering
- Rehabilitating networks
Step 6: Implementation of hydraulic optimization works, including: pipe renewal and
replacement, and installation of pressure-reducing stations.
Prioritization of tasks and areas
The financial and economic benefits of water losses reduction programs within a city vary
among hydraulic districts. This point is illustrated by the case of Bogota shown in the graph
below, which shows the financial gains or losses results per m3 for 37 districts.
3
One company won the bid for two zones.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 25

27. Gains y G $ por Sector por
P
or Losses per M3 Saved M t3
$1,500
$1,000
$500
$ Col.
$0
($ 5 0 0 )
($ 1 , 0 0 0 )
($ 1 , 5 0 0 )
01 07 14 17 21 23 25 30 32 34 36 T ota l
06 13 15 20 22 24 26 31 33 35 37
Districts
Se ctore s
The cumulative result is positive, but there are districts where the cost of the program
exceeds the financial benefits associated with the reduction of water losses.
Likewise, the benefit-cost of different projects or activities varied substantially in the case of
Bogota. See table below.
Benefit-Cost Analysis of Projects or Activities
Bogota
PROJECTS Litters/Sec Benefit/Cost
Connections 55 4.5
Massive fraud 227 2.3
Meters 185 3.1
Network Repair 710 12.0
Pressure reduc. valves 82 2.2
Others 10 1.1
TOTAL 1,269 3.2
As seen in the table above, the network repair and rehabilitation has had the highest benefit
cost ratio in Bogota. It has been followed by the repair of leaks at the connection point and
the meter repairs. The average ratio of benefit to cost has been very high (3.2).
EAAB’s information system includes a breakdown of the technical and commercial losses
by sub-district (see Annex 1), providing a powerful tool to help in the design and the
strategy for the implementation of the water losses reduction program.
Pressure Reduction Valves
During a period of two years between 2003 and 2005, Bogota installed pressure reducing
valves in most districts, achieving substantial results as shown in the graphic below. As it is
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 26

28. known excessive pressures are an important factor explaining water losses. The benefit-cost
ratios of the investments in pressure reduction were high as shown in the table showing the
benefit-cost of different projects and activities.
Pressure Control and Reduction of Losses
47.24 m Comportamiento Behavior
Losses de las pérdidas
42.14 m 45
90.28
100
40
90 74.13 32.95 m
35
80 66.74
Pressure (m)
30
Presión [m ]
70
Flow (l/s)
Caudal [L/s]
60 25
40.44 42.54 41.47
50 20
40 15
30
10
20 F.P. 55.21% F.P. 42.62% F.P. 37.86%
NRW 55.21% NRW 42.62% NRW 37.86% 5
10
0
0
Alta Media Baja
High Middle
Período de Operación Low
Period of Operation
Presión
Pressure Caudal macromedición
Bulk Meter Flow Customer Meter
Caudal micromedición Flow
The graph above shows how water losses are reduced with pressure control measures
implemented in the city of Bogota.
The formulation of hydraulic optimization works including the renovation of the areas, the
reinforcement of pipes and the implementation of pressure reducing stations produced
important results that reduced the losses.
Pressure map WITHOUT works of hydraulic Pressure map WITH works of hydraulic
optimization in Bogota optimization in Bogota
Reinforce Renovation Regulation Stations
ments
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 27

29. During a period of two years between 2003 and 2005, Bogota city covered most of their
districts with pressure reducing valves contributing significantly to the reduction of losses.
Service with PRV 2003 Service with PRV 2005
Technology
During the visit the georadar equipment was identified to detect illegal connections. The
experience in Barranquilla shows that when customers see this equipment in action they are
more willing to declare their illegal connections and negotiate with the company.
GEORADAR
(Noggin)
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 28

30. Reduction in water losses
EAAB has achieved substantial reductions in the volume of water losses since 1995 until
now. This is shown in the table below which represents both the absolute volume of water
losses and the water losses measured in m3 per connection (user). The latter index is known
as the “Water Losses per User Index” (IPUF in Spanish)..
NRW Vs. Losses Per Customer
Better Indicator
Volume Volume IPUF
Year m3 losses/ NRW
Supplied Lost user/month
1995 567 Mm3 207 Mm3 17.2 36.5%
2002 456 Mm3 165 Mm3 10.6 36.2%
2005 448 Mm3 161 Mm3 8.8 35.9%
Reduction 21% 22% 49% 0.6%
The above table illustrates both EAAB’s substantial accomplishments in reducing water
losses (from 207 million m3 in 1995 to 161 million m3 in 2005) and the failure of the
traditional indicator of non-revenue water (water losses as a percentage of production) to
reflect these accomplishments, as the non revenue water index remained virtually
unchanged at around 36%. This failure is the consequence of a weakness of the traditional
non-revenue indicator in an environment of contracting water demand and production. In
fact, it is even likely that in this type of environment, the unaccounted-for or non-revenue
water index as a percentage of total water production increases even though the volume of
water losses decrease in absolute terms, as was EAAB’s case.
Water Losses Index per User (IPUF)
Bogota, 1993-2005
The graph
(Non-billed volume/average number of customers)/12 shows how this
progress has
been achieved
over the past 13
years since 1993
with a
significant
M3/Month
achievement
during four
years during
1994 and 1997
and then stable
progress during
the last 9 years.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 29

31. WATER SAVING PROGRAMS: THE EXPERIENCE OF SEVILLE -
SPAIN
EMASESA’s efforts to reduce water losses from the water source, up to the metering and
distribution to customers were of particular interest for the Jordanian delegation. The results
of these efforts between 1997 and 2007 show a reduction of total water losses from 26.3%
to 14.8%. See table below.
EMASESA
Ten-year Improvements in Hydraulic Efficiency
ANNUAL EXECUTED
1997 2007
Losses MMC % MMC %
Total Losses 38.96 26.3% 17.75 14.8%
Losses from the source up to the treatment
3.37 2.5% 1.06 0.9%
plant
Losses in Treatment 2.95 2.1% 0.11 0.1%
Losses in Distribution 32.64 21.7% 16.58 13.8%
Efficiency
Hydraulic Return in Collection 97.5% 98.3%
Hydraulic Return in Treatment 91.9% 99.9%
Hydraulic Return in Distribution 67.0% 76.5%
From the Source to the Treatment Plant
The implementation of the water saving program helped to reduce from 2.5% to 0.9% the
losses from the water source to the treatment plant. This improvement is the outcome of
actions like the improvement of the raw water pipe illustrated below.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 30

32. Improvement of the raw water pipe
• Repairs Plan for the Minilla canal.
• Interconnection works with other
systems for the exchange of resources.
Treatment Plants
The reduction of water losses in the treatment plants from 2.1% to 0.1% was achieved
through investments in upgrading water recovery systems, filters, treatment lines, and
control systems.
Improvements in Water Treatment
• Introduction of new treatments which
guarantee quality in adverse situations: ozone,
activated carbon.
• Water tightness of the principal reservoirs.
• Recovery systems of processed water.
Distribution
The reduction in water losses in the distribution system from 21.7% to 13.8% was the result
of EMASESA’s most intensive efforts in the distribution network through actions in the
following areas:
• Expanding and improving measurement and control of water flows.
• Establishing a continuous tracking of unaccounted for water (UFW) values.
• Establishing districts and introducing systematic leakage control.
• Renovating networks.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 31

33. Measurement of Flows
Improvement of Flow Meters
• Installing additional and more accurate flow meters.
• Implementing a Main Control Center.
• Implementing real time tracking and control.
• Detecting problems in the primary and secondary network
due to breakages.
• Improving repair response times.
Continuous Tracking of UFW
EMASESA has established an integrated control of subsystems covering water treatment,
transport and distribution, equipped with meters that continuously report to a central control
room.
Establishment of Districts to Reduce Losses
EMASESA has established water distribution districts to help in the management and
implementation of systematic leakage control through observation of minimum night flows.
Districts Establishment and Measurement
• EMASESA network is divided into 170 sectors, which
represent a total network of 3.450 km. some of them are of a
permanent nature and the rest are temporary.
• They are observed for period of 15 days at least once a year.
• Control of sectors is carried out by means of measuring the
Minimum Night Flows. Their comparison with standards and
if is necessary leakage detection by traditional methods:
correlation, geophones, etc.
• Analysis of causes of leaks serves as a base to establish
priorities in the network renovation plans.
Network Rehabilitation
EMASESA also carried out a major network rehabilitation program, which amounted to
about 50% of the annual investment plan during 1997-2007. Through these investments, the
company rehabilitated 40 to 50 KM per year or the equivalent to 1.5% to 2.0% of the total
network per year.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 32

34. DEMAND MANAGEMENT: THE EXPERIENCE OF SEVILLE - SPAIN
As a result of a severe drought in 1992, EMASESA has implemented a number of water
demand managent initiatives, which have resulted in significant reductions in water
consumption (16% between 1992 and 2007), as shown in the table below.
EMASESA
Water Consumption Profile in Seville
1992 1998 2004 2007
Consumption (MCM) 83.4 72.0 73.9 70.0
Breakdown by type of customer
Residential 69% 74% 71% 70%
Industrial 21% 22% 25% 27%
Government 10% 4% 4% 3%
The initiatives have included the promotion of water-saving devices, grey water use, and
consumption metering.
Water Saving Devices
After carrying out market studies and a careful testing of different water-saving devices,
EMASESA implemented a communication campaign to promote the use of such devices in
showers, toilets, and faucets. The customers reacted favourably to the campaign, as
EMASESA and the Municipality provided valuable information to the customers by
publishing the results of the testing of the devices produced by different manufacturers.
The types of devices are illustrated below.
Three Types of Devices Promoted
Showers Toilet Faucet
MODELS AVAILABLE AT EMSASESA MODELS AVAILABLE AT
MODELS AVAILABLE AT EMSASESA
ECO-Ducha 245-A MULTISHOWER Antical EMSASESA
Econ-System Martí de 22 mm
ECO-Ducha CADET MULTISHOWER Antical Toilet discharger (IMPULS280A)
Econ-System Martí de 24 mm
ECO-Ducha GALANT MULTISHOWER System model KOMBIFIX
ECO-Grifo Monomando MULTISHOWER Antical
Antical System model DUOFIX
ECO-Grifo Temporizado MULTISHOWER Antical
ECO-Reductor Ducha MULTISHOWER System model GIS
Econ-System Martí Model IMPULS280B
Model IMPULS280C
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 33

35. The promotion of the water-saving devices included several steps:
1. First, EMASESA and the Municipality installed the devices in their offices.
2. Second, a municipal ordinance made it mandatory to install the devices in new homes or
refurbished buildings. It was also mandatory in public bathrooms.
3. Third, EMASESA and the municipality also entered into collaboration agreements with
the Hotel Association, the universities, the catering associations, and other confederation
of businesses organizations to install such devices in their premises.
4. Fourth, EMASESA implemented a campaign denominated denominated “Saving 55
liters per person per day”, showing how the use of the saving-devices would result in
these significant savings in water consumption with the correspondin reduction in the
water bill.
The graph and the box below illustrate the campaign denominated “Saving 55 liters per
person per day”.
CAMPAIGN
SAVING 55 LITERS PER PERSON PER DAY
TOILET SAVINGS: 21 LITERS
Normal consumption per person per day:
10 Litters x 4 discharges = 40 liters
Using saving devices per person per day:
10 liters x 1 discharge = 10 liters
3 liters x 3 discharges= 9 liters
TOTAL=19 litters
SHOWER SAVINGS: 20 LITERS
Normal consumption per person per day: 60 liters
Using saving devices per person per day: 40 liters
FAUCET SAVINGS: 14 LITERS
Normal consumption per person per day: 40 liters
Using saving devices per person per day: 26 ltters
Grey Water Use
The Water Technology Institute presented the case of grey water use in toilets. The
technology consists of collecting water used in faucets and showers and treating it through a
a two-stage treatment process with 1) sand filter, and 2) sand filter and activated carbon.
The recycled water is mixed with rain water and repumped to a roof storage to be circulated
to the toilet system.
New and old buildings can be equiped with two networks, one that collects the toilet water
that is sent to the sewerage, and the the other that collects water from the rest of uses to be
recycled for toilet use. The system also consists of a small treament facility, storage tanks
and pumps. The Water Technology Institute estimates that with an adequate level of tariff
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 34

36. and according to the type of house, the cost of a grey water use system can be amortized in
2.5 to 5.0 years.
Grey Water Systemes and Savings of Water
Tank of recycled
water for toilets
Toilet sub
network to
Rain water sewerage
to recycling
Faucet and
shower sub
network
to treatment
and recycling
Pump
Treatment
process
• Septic tank
• Pump
Sewerage • 1st: Sand filter
Tank of recycled
Tank • 2nd: Activated carbon
water
Savings of this system can be broken down in various categories as the graph above shows.
The three main contributers to the savings are reuse of water from faucets (39%), toilets
(22%) and showers (20%).
PLAN 5: Individualization of Consumption
Multifamily buildings, which accounted for 43% of residential water consumption, had a
single meter, making it difficult for families to rationalize their consumption and thus reduce
their water bills. EMASESA considered, then, that those buildings had a good potential for
achieving substantial water savings, provided that the individual households had the right
incentives. Based on this consideration, EMASESA implemented a plan denominated “Plan
5” to encourage customers to install individual household meters in multifamily buildings.
Approximately 26.000 buildings participated in “Plan 5” during a five-year period. The
results were highly satisfactory, as it resulted in water savings equivalent to 25% of the
average water consumption per household before the plan. See graph below.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 35

37. Water Savings Achievement with Plan 5
Plan 5 included five steps designed to align the interests of the customers, EMASESA and
private contractors. The five steps were:
1. Organizing the community in each multifamily building and reaching agreement
on the implementation of the plan. Once 60% of the households in a builiding
favored the program, the community filled out a form and sent it to EMASESA or
contacted directly one or more contractors assigned to the area.
2. Inviting bids for the work. Private contractors asigned to the area prepared quotes
for the work, and the one with the best offer continued with the necessary
paperwork.
3. Financing the works. EMASESA offered a financing plan for each building,
including a subisidy for the installation of the meters. The financing plan offered by
EMASESA is presented in a box below.
Meter Station in a Multifamily Building
Financing Offered by EMASESA
Funding agency: Local bank
Award: Automatic
Amount: 100% of cost
Period of repayment: Five years
Prepayment: Allowed without penalty
Payment: Deduction from the bill
Interest rate: 8.5%
Commission: 1.5%
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 36

38. 4. Carrying out the works. The work started once the financing plan was agreed
between the community and ASESA, and the contractor received the downpayment.
5. Paying the contractor. Once the contractor completed the work in a satisfactory
manner, the customers gave their approval to the work and EMASESA or the
customers payed the contractor.
Advantages for customers
The advantages for customers included the following:
1. Potential savings in water bills, and access to bonus offered by EMAESA for low
consumption.
2. Control of water consumption in the household and, thus, of the water bills.
3. Rehabilitation of water connections in building, improving pressures and reducing
leaks.
4. Accessing to subsidies provided by EMASESA including:
a. No subscription costs.
b. No deposit or warranties.
c. Incentives for connections (€ 93.76 per building)
d. In case there was the need of a pumping system to increase pressure,
EMASESA increased the subsidy by € 36.06 per building
e. In case there was the need to increase the intake points to two, the subsidy
wasl increased by € 57.70 per building.
f. If there are additional legal steps to follow, the subsidy was increased by €
2.88 per building.
5. Access to preferential loans provided by a financial institution and payment in 5
years.
6. No individual paperwork; it was done by the contractor.
Advantages for EMASESA
1. Improving control of consumption per individual users, reducing the levels of
demand of water by 25%.
2. Rehabilitating networks inside houses that have problems of leaks and pressure.
3. Updating the database of customers.
4. Installing high precision digital meters.
5. Facilitating the implementation of tariff systems based on individual
consumption.
6. Sharing with customers the costs of service improvements in the premises.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 37

39. CUSTOMER SERVICES
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 38

40. CUSTOMER SERVICE: THE EXPERIENCE OF BARRANQUILLA
COLOMBIA
Clear vision
The three companies’ mission and vision statements put the customer at the forefront of the
utilities success. The vision statement of the Triple A illustrates the point well:
Commercial Vision– Customer Management
Directives:
1. We do not generate unconformity to our clients
2. If our client need us, they don't have to come to our offices
3. We will attend our clients nice and diligently
4. We add value to our best clients
The three companies back up the mission statements with innovative programs to satisfy
customers’ desires and needs. The paragraphs below outline some of the programs currently
in place, which may be readily applicable to MIYAHUNA.
Bill collection strategy: Super Client
Triple A implemented a successful program denominated Super Client aiming at providing
better service to the customers and simultaneously improve bill collection. The program
consisted in creating a status of Super Client for all those customers that pay promptly their
bills in full (in the next week or so after receiving the bill). Clients included in this category
enjoy benefits like the following:
• Faster attention (VIP line at customer centers)
• Special bill (including, for example, vouchers for discounts in stores,
participation in raffles)
• Special recognition in the call center of the company (116 line)
• Special letter of recommendation after 12 months of status as Super Client
(These letters are highly valued by the banking and commercial systems as a way
to obtain references for potential customers)
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 39

41. Special design of bills
Special characters and
Special branding for
Superclients
The success of the Super Client program can be illustrated by the rapid membership growth
since the program started in mid-2005. The number of clients that were included in this
category has reached close to 30% of total clients. Triple A management objective is to
reach 100% in the next 5 years.
Evolución mensual del Supercliente Triple A
Superclients Billing
100.000
94.859
93.491
93.120
90.000 88.819
86.176
83.524
80.000
76.881
74.285 74.468
71.574
68.112 69.420 69.715
70.000 67.737
64.913 67.529 66.369
64.481 65.813
63.216 64.755
62.808 63.682 62.915
60.943 60.945
60.000
50.368
50.000
38.743
40.000
37.025
30.000
Ju 6
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06
Ag 6
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The impact of this strategy on bill collection has been significant, as the number of
customers up-to-date on its payments has increased from 41% at the beginning of the
program to 61% eighteen months later. This is illustrated by the number of bills outstanding
for no more than one month after the issuance of the bill. The graph below illustrates the
number of customers with bills outstanding one month or less between June 05 and October
07.
ORGANIZATIONAL LEARNING OPPORTUNITIES - STUDY TOURS FOR MIYAHUNA IN 2007-2008 40