4. 4
Established in 2007 with the mission of improving the efficiency in
the water sector.
Miya is a global leader in providing integrated solutions in water
efficiency for the public sector and has performed the largest most
complex projects in this field.
Owned by BridgePoint a leading UK fund managing over $32 billion.
Miya is the largest private operator of water utilities in Portugal.
Supplying water to over 1.4 million people around the globe.
Miya. Global experts in water efficiency management
Our company and values
5. 5 Miya. Global experts in water efficiency management
Selective presence
6. 6 Miya. Global experts in water efficiency management
Our approach
Direct, long term investment in water and
sanitation sector.
Focus on training our/theirs local staff -> Impact
in results and a lasting effect.
Create long term and sustainable employment for
skilled and unskilled workforce.
Work together with all levels of Government to
provide easily accessible safe clean and water.
Support local industry and expertise wherever
possible with special focus on previously
disenfranchised female owned businesses.
7. 7 Miya. Global experts in water efficiency management
Our experience translates into RESULTS
9. 9
1 2 3 4
. Define a work plan
detailing required
activities, timing and
necessary resources
Implementation of
plan, comprising a full
range of cutting-edge
technologies including
meter management, pipe
repair, pressure and
leakage control
Maintenance through
training (from the beginning of
the project) and certifying of
utility management and staff
Water Efficiency Projects: our four step approach solution
Miya. Global experts in water efficiency management
In-depth analysis
of existing water
system
10. Performance
Based Contracts
With & Without Investment
NRW
NON REVENUE WATER
Commercial & Revenues Impact
Customer Meter: testing, sizable installation, reading routes,
replacement
Improvement of billing, collection process and detection of theft.
Updating of billing database and NRW IT systems.
Monitoring
Asset and Customer information in GIS
Flow and pressure logging + data analysis
Monthly water loss performance
Physical Loss & Cost Reduction
Leak detection repair and Pressure Management
Network zoning and system optimization.
Asset management & selective pipe replacement
Construction, Maintenance and Optimization of infrastructures
10 Miya. Global experts in water efficiency management
11. Performance
Based Contracts
With & Without Investment
NRW
NON REVENUE WATER
Contracts 5-10 years
Variation:
What is the necessary time to accomplish results?
Time should be linked to the capex investment lifetime.
Improvement & Profitability
Raising of economic income
Infrastructure improvement
Loss reduction
Impact on environment and image concession
Performance Contracts
We believe in efficiency contracts linked to results & achievements,
ensuring Project benefits
11 Miya. Global experts in water efficiency management
12. 12
NEW PROVIDENCE, BAHAMAS (2012-22) KINGSTON, JAMAICA (2015-20)MANILA, PHILIPPINES (2009-14)
Goals
Reduce NRW from
6.9 MIGD to 2.5
MIGD in 2017 and 2.0 MIGD in 2019
Goals
Training of Client´s staff and reduce
NRW from 117 MLD 2 to 49 MLD, while
providing materials and equipment
Achievements
800m liters saved per day with losses
reduced from 64% to 34%. Helped
provide access to water to 3mpeople.
Quadrupled utility net income to $186m
Achievements
5.75.7 bn gallons of savings in 2013-17
(26 % over target) and moving to 24/7.
Expected benefits to WSC during life of
Project-$116 m
Achievements
5050 % reduction of NRW in the 25
DMAs 3 already established.
Expected benefits to NWC during life of
Project-$ 70 m
Goals
Reduce NRW levels from 64% to 40% (in
2012), enabling increase of access to
water and service levels, and training of
the NRW Unit (+400 engineers)
Client
Maynilad: water and waste water
services provider in west of
Metropolitan Manila Area, serving a
population of c. 9m
Water & Sewerage Corporation (WSC):
Bahamas Government owned Company
that manages, maintains, distributes
and develops the water resources
Client
National Water Commission (NWC):
main Jamaica ´s water supplier. It also
offers collection and treatment services
Client
Miya. Global experts in water efficiency management
66
61
66 66 66
69 69 69 68 68 66 64
60
53
46
40
3634
30
40
50
60
70
80
1997
1999
2001
2003
2005
2007
2009
2011
2013
Non-Revenue Water weight evolution (%)
0
5
10
15
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Project annual coverage contract target
Water supplied
Revenue water
Non-revenue water
New Providence NRW Reduction 2013-2018 (MIGD)
Jan-18
NRW intervention in newly established DMAs (000’s liters/d)
14,475
7,291
Pre intervention Post intervention
NRW
14. 14 Miya. Global experts in water efficiency management
SCOPE BEFORE 2009 AFTER 2019
Construction and Infrastructures Funding restrictions
Investment of 54 M €
+ 280 km pipes
+ 54 pumping stations
+ 40% water tanks
Population served
81.283 water contracts
79.708 wastewater contracts
+8,6% water contracts
+ 6,7% wastewater contracts
Water losses 37% of non-revenue water
14,9% NRW
(-73% water losses→ 5.037.000 m³/year)
Obstructions in wastewater system >2.000 obstructions / year -60%
Water quality of the sea
2 blue flags
0 gold flags
0 beaches with good water quality
13 blue flags
10 gold flags
16 beaches with good water quality
Tariffs
Increase of 1,2% / year
Between 2000-2005
Lower increases in tariff
(-19% compared to previous periods)
Example: Impacts of Private Sector Involvement in the long term
15. 15 Miya. Global experts in water efficiency management
Typical features of Concession Agreements
Length
Activities
Objectives
Concession fee
Performance
security
Concessionaire
compensation
Financial
rebalancing
25 to 50 years.
Development of networks. Downstream water supply and wastewater
collection.
Expansion investments, reinvestment (upgrades) and operation
efficiency.
Annual rent.
Bank guarantee.
Trigger events (significant deviations
from Base Case):
‒ Water consumption volume
‒ Investment plan
‒ Legal and regulatory changes
‒ Etc.
Rebalancing through:
‒ Tariffs;
‒ Concession fee;
‒ Length of concession;
‒ Direct financial compensation;
‒ A combination of the above.
Rebalancing of the concession is said
to be restored when certain ratios
are in line with base case – e.g. IRR,
Debt Service Coverage Ratio, etc.
Through tariff collection to end-users.
Municipality
Private
Company
Ownership
Water Co
Assets
Bank or Fund
Ownership
Water Co
Holding
End Users
Water
Fees
Lease,
Reantal Fees
16. An adequate business management relies heavily in managing some relevant aspects of the contract :
• Defined in the tender process for all the contract period.
• Tariffs are reviewed every year in order to accommodate
inflation through a defined formula.
• Tariffs are fix and variable without minimum consumption.
• Tariffs are split between water & wastewater provision
(wastewater tariff as a percentage of water tariff – 50 to
120%).
• Investment plan is a part of the tender.
• IP is defined for all the contract period and can be
defined as specific works or as an amount of money
per year.
• Investment is always heavily concentrated in the first
5 years of concession.
• The operator has the total responsibility for service provision.
• Typically operator focus in a) Non Revenue Water control
(mainly if bulk water is bought to a third party), b) attendance
level by network expansion or refurbishment and c)
commercial side by improving invoicing and collection
processes.
• Service levels are clearly defined in the contract and audited by
the regulator.
• The contract includes a rebalance clause. Through these clauses
is defined the level of financial risk for each party and the way to
re-balance the contract. Typically the operator assumes risks up
to 10 to 20% water consumption less than initially expected.
• Contract re balancing is done by tariff increase, IP reduction,
Municipality rental fee reduction or concession period increase
and has contract expected IRR as a reference.
• Being a complex process. clarity in rebalance clauses is key to an
adequate contract management.
Service
Tariff
Financial Risk Management
Investment
Source: ERSAR.
16 Miya. Global experts in water efficiency management
MARKET & COMPANY BACKGROUND |CONCESSION CONTRACTS KEY FEATURES
18. 18
“The improvement of
commercial results relies on
budgets which are insufficient.
This creates a vicious cycle in
which lack of funds causes a
deterioration of the commercial
and physical systems essential
to generate those same funds.
The Vicious Efficiency Cycle
Insufficient funds to
invest in commercial
systems
Deteriorating systems -
meter parc and
supporting commercial
syst.
Decreased cash
generation and service
level
Lower capex investment
and system failures
Rationale: Vicious cycle Problem
Miya. Global experts in water efficiency management
19. 19
Main principles to IMPACT REVENUES
Miya. Global experts in water efficiency management
BUSINESS PROCESS
OUTSOURCING OF THE
COMMERCIAL DEPARTMENT
PRIVATE SECTOR FINANCING &
INVESTMENTS
MODERNIZATION OF THE ENTIRE
METER PARK
REVENUES & GROWTH
FOR WATER COMPANY
20. Metering System
Upgrade
FULLY FINANCED by the private sector
• We work with banks like JPM and funds like Allianz to supply
affordable financing
• Off balance sheet debt
• Repayment and benefit matching
Long term COMMITMENT TO METER PERFORMANCE
• We will be responsible for the performance of the meters for the
defined project time
• Unparalleled warranties achieved
• Strong motivation to maintain meter performance
Tailored Upgrade of the METER PARC and supporting systems
• Focus on client needs and return on investment not on a specific
technological solution
• AMI/AMR vs. manual reading
• Mechanical vs. ultra sonic
20 Miya. Global experts in water efficiency management
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The full responsibility to the commercial cycle and client engagement is outsourced
Bringing comprehensive solutions for managing increasing utility income and immediately decreasing costs
Attack cash generation focused on accurate billing and
proactive collection
Commitment to improve service level to clients
Immediate reduction in OPEX
Data generated to support network management
A commitment to efficiency
Advantages
MEASURES
FOCUS
commercial
services
Meter
reading
Client
management
Smart
commercial
loses
reduction
Call centers,
web services
and offices
Smart billing
Revenue
Collections
Customer
service level
Miya. Global experts in water efficiency management
22. Metering
Optimization
Meters routs optimization
Increase the number of real readings and reduce estimations, due to behavior correction and increase of real readings
CS customers cluster update
The correct allocation of customers in CS allows better customer interaction.
Meter replacement planning
Maximize the potential return through the correct selection of meters to be replaced
Pattern consumption evaluation
Knowing the customer’s pattern consumption allows to identify in advance potential under readings and billing errors
Sewage billing recovery
Identify the customers connected to system without sewage account
22 Miya. Global experts in water efficiency management
23. 23
Water utility should have sufficient tariff to cover its activity
Water utility should be able to move funds collected from
consumers through escrow accounts or similar guarantees.
Contractor should assume the responsibility for commercial
management and improvement of financial results.
Physical infrastructure should be defined, purchased and
installed during the project.
Project should not last less then 10 years, 15-25 in most cases
Well designed PPP agreement
Private Sector
Financing
Contract
flexibility
Balance
between
both parties
Definition
of
responsibility
Necessary
lifetime
Guarantees
Miya. Global experts in water efficiency management