WATER AND JOBS MANAGING WATER FOR ECONOMIC GROWTH AND JOB CREATION Presentation at the 2016 National Water Conference on March 21-22, 2016 By Dr. William Muhairwe Former CEO, NWSC Uganda Executive Director, Global Water Leaders, UK Senior Team Leader, 2ML Consulting Limited

I am so excited about this year’s World Water Day Theme: Water and Jobs To make the world of water work better and sustain economic growth.’ Because it is in line with our objective at the Global Water Leader’s Group. ‘To make the world of water work better and sustain economic growth.’ I am so excited about this year’s World Water Day Theme: Water and Jobs To make the world of water work better and sustain economic growth.’ Because it is in line with our objective at the Global Water Leader’s Group. ‘To make the world of water work better and sustain economic growth.’

Water is Life. It is Not a Sector. It is the Whole No wonder, half the world’s workers, 1.5 billion people work in water related sectors and nearly all jobs depend on water and those that ensure its safe delivery

No Water, No Job, no economic growth To the 1.5 billion people who make their livelihoods through the water business including you and me, It is very clear that: No Water, No Job, no

5 Water Industry Job Opportunities Water Industry Provides job opportunities

Jobs in different stages of Water Supply…. Extraction and Treatment Water Storage Pipe Network- Transmission and Distribution Customer Connections Billing & Revenue Collection

……water borne diseases limit economic growth QUALITY WATER BORNE DISEASESLONG DISTANCES Limited Access/Long distances - consumes productive time of individuals (workforce) Poor quality – causes waterborne diseases and even deaths Water borne diseases – affects productivity of workforce (parents absenteeism from work) as well as family financing on treatment Productivity + Expenditure

We believe that Economic Development can be sustained if…. if we put in the water business the right incentives for the players, we shall create a cycle of success; where the adequately remunerated workers do a good job, develop their families and societies, attract new talent, innovate and provide excellent service

9 ……….how can our Water Utilities sustain economic growth and create jobs for the society?? …......Public Sector Reforms (Continuous improvement of service delivery and management)

But First…

11 WHY Public Sector Reforms ? Reforms address the following challenges in most of the Public Utilities 1) Poor Governance & Accountability 2) Poor Leadership 3) Attitudinal Issues 4) Inadequate Financing 5) Poor Management 6) External Interference AUTONOMY ACCOUNTABILITY INCENTIVES/ PENALTIES SUCCESS …….with focus on

12 Some of the Water utilities that have carried out reforms, improved their performance and created jobs…. NWSC -Uganda, NWSC -Uganda, GVWC - Sierra Leone GVWC - Sierra Leone WASC – Rwanda & WASC – Rwanda & Ghana Water Ghana Water

NWSC’s Historical Performance Prior to 1998, NWSC’s service delivery was characterized by Dry Taps -Monthly cash deficit -$300,000 per month -Low collection efficiency 60% -Low staff productivity 36/1000 connections -3,000 new connections per annum -High operating expenses etc. There was urgent need to revamp the operations of the Corporation Two International Private Operator contracts for Kampala had been tried unsuccessfully The only remaining option was to institute Internal Reforms through changing the Internal Incentive Mechanisms

What We Did We introduced Performance Improvement Programmes (PIPs) that were Results-oriented but People-focused. On One Hand NWSC the Company: What do we want to stand for in the market? On the Other Hand NWSC the People: What are our people’s aspirations? Vision, Mission, Goals, Performance Targets Autonomy, Performance Based Cash Incentives, Better Salaries, Allowances, Paid Study Leave, Training, Benchmarking, Recognition, Promotion, Trophies, Participation, Accountability Vehicles, Good Governance, …

The Results: Performance Indicator Service Coverage48%78 % Total Connections50,826389,057 New Connections per year3,31728,000 Metered Connections37, ,889 No. Staffs Employed1,4003,000 Collection Efficiency60%103 % NRW60%31.6 % Proportion Metered Accounts65%99.7 % Annual Turnover (Billion Shs)21 ($18 million)209 ($63 million) Profit (Before. Dep.) (Millions USD)4.0 USD (loss) or Ushs 4.6bn 15 USD (Surplus) or Ushs 42 billion

And then we did it again, this time as 2ML Consulting Limited in… Guma Valley Water Company Sierra Leone(GVWC) Ghana Water Company (GWCL) Water and Sanitation Corporation Rwanda (WASAC) Guma Valley Water Company Sierra Leone(GVWC) Ghana Water Company (GWCL) Water and Sanitation Corporation Rwanda (WASAC) And It Worked Each Time

The Freetown GVWC PIP : Revenue Collection INSTANTLY Increased by x2.3!

18 GVWC: Non-Revenue Water Reduced by over 30% in 100 days

The GHANA GWCL 100 DAY PIP Instantly Increased Their Revenue By Close to 8 million Ghana Cedis (2 million Dollars)

WASAC’s Revenue in RWANDA Instantly Increased by x1.78 in their 90 days PIP!!

“ Landscapes may vary and scopes differ but a well developed Performance Improvement Program (PIP), That clarifies the corporate strategy, That challenges workers to perform and rewards them for a job well done; Will benefit all stakeholders, including YOU and ME What We Have Learnt

What We Know Is Critical 1.Visionary Leadership (imagine the future, inspire others to make it a reality) 2.Incentives, Incentives, Incentives (It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest-Adam Smith) 3.Thinking Quick-Wins (do something now, with what you have now; if you wait for the traffic lights to turn green, you will never leave home) 4.Look for Common Ground (I said it before and I will say it again: development is the intersection of common interest; you need coalitions that have strong champions) 5.Communication and Branding (A wise man once said that great stories happen to those who know how to tell them) 6.Innovation and Technology (Stay relevant, or else)

Conclusion 23 Remember today; SAY FAREWELL TO FAILURE, SAY HELLO TO SUCCESS “Be the change that you wish to see in the world.” Mahatma Gandhi,