NTS003: Governance, Financial and Commercial  Management of Water Services

Date: 15^th – 26^th October 2012 (2weeks)

About the Course:

This course is designed to address the three key factors that contribute to success in service delivery by water utility companies, namely governance; financial and; commercial management.
Governance essentially relates to the arrangement by way of which a good or service is provided, managed, regulated, and the process by way of which decision making regarding the provision, management, regulation of a good or service takes place. It goes beyond ‘government’ as it includes non-state providers (NGO, CBO, private sector). Governance incorporates multiple ‘tasks’: Policy formulation; Policy implementation; Provision of Services/Goods; Regulation of ‘Service Providers’; and Financing of Provision. Mainstreaming of good governance principles contributes to enhanced service delivery in water utilities, and has direct benefit in financial success of water utilities.
Financial Planning is a process of appraising the financial resources a company needs for continuing its operations and making timely decisions as regards the method of funding.  Financial planning is based on financial forecasts, which among other things assist utilities in bargaining for more realistic tariffs based on clear and transparent projections. The sustainable operation of any water service area is dependent on the appropriateness of its tariff system and revenue management.  Tariffs are key to the proper function and sustainability of any system. Financial sustainability goes beyond user fees and entails the commitment of the: tariffs; taxes; and transfers.
Revenue management involves maximizing billed revenues; collections and reduction of water losses; proper management of meters; and billing management and invoice collection amongst other factors. Revenue management depends on reliable water supply and customer satisfaction amongst other factors.  Revenue management also contributes to reduction of apparent water losses, which increases revenue collection amongst other benefits.
All these key factors will be dealt with in depth during the course.

Course Objectives

• To be able to mainstream the principles of good governance in water utilities;
• To be able to analyze financial statements and forecasts;
• To be able to propose measures to improve financial and commercial performance;
• To be able to develop an appropriate cost recovery system; and
• To be able to outline measures of reduction of the apparent losses, improved billing and revenue collection.

Who can benefit from this course?

This module targets senior members of water utility companies, who include members of the board of directors; managers of water utilities; senior financial and commercial mangers; and senior managers from the water regulators.