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OPERATIONAL PERFORMANCE MEASUREMENT:

THE CASE OF DEBRE BIRHAN WATER SUPPLY AND
SEWERAGE SERVICE IN ETHIOPIA

James Gibson*

*Maluti GSM, PO Box 8125, Nahoon, East London,5210, jim@malutiwater.co.za

This paper describes the development of a system of Key Performance Indicators that was
implemented to assist the management of the water service company of Debre Birhan in their
day to day decision making process’. The range of indicators selected addressed issues that
included technical, administrative and financial matters. Initial evaluation of the operations of
the organisation identified that regular reporting was lacking in many respects with few useful
indicators being supplied to inform management decision-making. It was however also noted
that many of the staff were recording basic operational data in a disciplined way. The
challenge was to utilise the data to create information that would be useful in directing the
operations of the organisation.

The selected indicators included such issues as ground water monitoring, water production
and consumption, losses and non-revenue water, billing and cost recovery, growth of
customer base, cash flow and the provision of sanitation services. These performance
measurements clearly demonstrated the areas of operational strength and weakness of the
Debre Birhan Water Supply and Sanitation Service. The exercise also clearly demonstrated
that although the measurement of performance of water service organisations is sometimes
challenging, it is often the case that basic operational data can be accessed and, with a little
effort, converted into useful management information. As Kelvin said “to measure is to know”.

1. INTRODUCTION

The town of Debre Birhan is situated 130km north East of Addis Abeba in the Ethiopian
Highlands at about 2840m above sea level. The town is situated on the watershed between
the Nile basin and the Rift Valley. An annual rainfall of up-to 1600mm is received, falling
mainly between June and September. The population of the town is estimated to be 75,000
people living in 9 Kebele’s (equivalent of a ward). While most people earn low wages, the
economy is however vibrant and the town has experienced significant population growth of
4.1% over the past 10 years. A growth of 14% in water customers has been recorded over the
past 18 months with the water consumption growing 44% in the same period. The
construction and partial commissioning of a new university for 10,000 students as well as
significant expansion in housing has resulted in a significant increase in the work load of the
Debre Birhan Water Supply and Sewerage Service (DBWSSS).

The DBWSSS provides water services to the town of Debre Birhan. The infrastructure
available for the provision of this service is as follows:
¾ Two well fields (Dalecha and Beressa)
¾ Nine boreholes equipped with electrically driven submersible pumps
¾ One un-equipped borehole at Beressa well field
 ¾ Approximately 5km of bulk transmission pipelines (avg 250mm steel pipe)
¾ Two ground level reservoirs (2000m3 ,1000m3) and one elevated water tower (250m3)
¾ Two transfer pump stations and chlorination equipment
¾ A distribution network of approximately 40km of pipelines
¾ Customer Connection Pipelines of approximately 92 km in length
¾ Private connections to 7809 customers (March 2008)
¾ 21 public fountains
¾ Seven standby generators
¾ Three motor vehicles
¾ Office facilities

Debre Berhan Water Supply Scheme (Schematic

Transfer pumps 2
5
EWT
Z3
(R1-ewt) 80mm

H
80mm d Ital Tank
5
cl dosing
2
Res 1

Z2
250mm

Supply to cust omers H

d

Transfer pumps ??mm

DA-BH-6
(R2-R1) (with gens et)
H
d

H
cl dosing d

200mm
1

Res
Z1 H
d

DA-BH-EX2
H
d

Z1 H
d H
H
d

d
DA-BH-EX1
BE-BH- old transmiss ion p ipe lin e

H
d
H
d

BE-BH-
DA-BH-4
(with gens et)
H
d
BE-BH-5
(not equi ped)

Figure 1: Debre Birhan Water Supply Infrastructure

Sanitation services are provided as pit latrines which are either:

¾ Private
¾ Communal (used by a group of homes in a neighborhood)
¾ Public

The DBWSSS provides an emptying service on request from customers. Due to the recent
increase in economic activity of the town a significant pollution problem is being experienced
from the numerous hotels in the town.

2. SUPPORT FROM THE FRENCH DEVELOPMENT AGENCY (AFD)

The town of Debre Birhan has been twinned with the French municipality of Blanc Mesnil
since 1993. This relationship has resulted in significant investments in the town from the
Blanc Mesnil municipality and other French agencies. The upgrade of the town’s water and
sewerage systems has been supported by AFD since the early part of this century, with a
total of Euro 6,500,000 being invested. This has enabled DBWSSS to create the majority of
the infrastructure described above, resulting in a significant improvement in service.
Residents currently enjoy a service that is reliably available 24hrs per day.

The activities described in this paper were supported as part of a technical assistance
programme provided as part of the overall infrastructure development programme. This
contract was awarded to Ukhamba Advisory Services who sub-contracted Maluti GSM to
provide personnel to assist with implementation. The technical assistance provided included
the following:
¾ Management support
¾ Implementation of management and technical systems to enhance the operations of
DBWSSS
¾ Training on selected topics.

Figure 2: Hard Rock Excavation for New Pipelines

3. DIAGNOSIS AND ACTION PLAN

The technical assistance programme commenced with the development of a ‘Diagnosis and
Action Plan” (DAP). This investigation addressed the following aspects of the operations of
the DBWSSS.
¾ Technical
¾ Finance and Accounting
¾ Commercial

It was identified during this phase of the project that while very little was being achieved in the
form of performance reporting by the DBWSSS it was clear that performance data was being
collected by the various employees in the different departments of the organization.

The DAP identified interventions that covered the following:

¾ Technical support and mentoring.
¾ Assistance with the implementation of additional construction activities.
¾ Financial systems training and mentoring
 ¾ Training

This paper will deal with some of activities of the “technical support and mentoring”
component of the project, particularly the implementation of systems to improve the analysis
of data to assist with management decision making.

MANAGEMENT
DATA INFORMATION DECISIONS

4. TECHNICAL MONITORING AND REPORTING SYSTEMS

4.1. Water Consumption

The two well fields that serve Debre Birhan have the following stated abstraction potential.
Table 1: Water Production Capacity
Pump Aquifer
Capacity Capacity
Beresa 30 l/s 76 l/s
Dalecha 52 l/s 46 l/s
Total 82 l/s 122 l/s
Note: 1. aquifer capacity from Aquassistance documents
2. at Dalecha well field the pump capacity exceeds the stated aquifer capacity

The water production and consumption trends have shown steady increase over the last 18
months. These trends are presented in the graph below:

W a t e r P r o d u c t io n a n d C o n s u m p t io n

10 0 ,0 0 0

9 0 ,0 0 0

8 0 ,0 0 0

7 0 ,0 0 0
cubic metres

6 0 ,0 0 0

5 0 ,0 0 0

4 0 ,0 0 0

3 0 ,0 0 0

2 0 ,0 0 0

10 ,0 0 0

p r o d u c t io n c o nsu m p t io n ( f in d ep )

Note: The Ethiopian calendar is unique, (Meskerem corresponds to approx to September)

Figure 3: Growth of Water Production and Consumption

During this period maximum production took place in May 2008, being 90,000m3 or 42% of
the pump capacity and hence 28% of the stated aquifer capacity.

The growth in water demand in the recent past has indeed been significant. Whereas the
number of customers has grown by 14% in the period October 2007 to March 2009, the
growth in water demand has been 39% in the same period.

Table 2: Production and Consumption Growth Figures

G ro w th in C u stom ers (18 M on th s)

03-O c t-07 19 -M a r-09 In crea se

c om m ercia l 2 35 3 21 37 %
g o v/n g o 2 40 2 49 4%
ind u stry 13 14 8%
p riva te 6,182 7,0 49 14 %
p u blic 50 53 6%
6,720 7,6 86 1 4%

p rod u ction 50,471 7 2,7 99 44 %

c on su m ptio n 47,302 6 5,7 40 39 %
UFW 6% 10 % 67 %
U F W (m 3 /km /day) 1 .99 1.50 -25%

Significant growth in consumption has been noted in Kabele’s 8 and 9, but particularly Kebele
9 where the university is located.

Water Consumption Water Consumption

(per Kebele) (per Kebele)

25,000 25,000

20,000 20,000
cubic metres
cubic metres

15,000 15,000

10,000 10,000

5,000 5,000

0 0

K 01 K 02 K 03 K 04 K 05 K 06 K 07 K 08 K 09 pub f ont

Figures 4 & 5: Water Consumptions in Each Kebele

The median monthly consumption is 4m3 per customer with the top 10 customers (0.01%)
accounting for 17 % of water consumption.

4.2. Ground Water Monitoring

A system of regular monitoring of ground water sensitivity to abstraction levels has been
implemented. At present it is only possible to monitor water levels at 5 of the 9 borehole
installations. This is due to limitations of access for the measuring equipment. In some cases
the access tubes are blocked and in others the geometry of the installation does not allow the
equipment to be inserted into the access tubes.

Probe cannot
enter piezo tube

Figure 6: Water Level Measurement at Boreholes

The average abstraction over the past 6 months has been 34 % of the maximum design yield
with a maximum of 42% being pumped in May 2008

As can be seen from the graphs presented below, a slight sensitivity to pumping rates has
been observed at some installations. However, little significant long term effect on the ground
water levels at both well fields has been observed since monitoring commenced.
 Dalecha BH 2 Beressa BH 4
100 10,000 100 20,000

90 9,000 90 18,000

80 8,000 80 16,000
meters below ngl

meters below ngl

70 7,000 70 14,000

60 6,000 60 12,000

m3
m3
50 5,000 50 10,000

40 4,000 40 8,000

30 6,000
30 3,000
20 4,000
20 2,000
10 2,000
10 1,000
0 0
0 0

Hamle

Hamle
Meskerem 00

Meskerem 01

Meskerem 02
Megabit

Megabit

Megabit
Genbot

Genbot

Genbot
Hidar
Tirr

Hidar
Tirr

Hidar
Tirr
Meskerem 00

Meskerem 01

Meskerem 02
Hamle

Hamle
Megabit

Megabit

Megabit
Hidar
Tirr

Hidar
Tirr

Hidar
Tirr
Genbot

Genbot

Genbot

months
months
static water level dynamic water level water production (RH axis) static water level dynamic water level water production (RH axis)

Figures 7 & 8: Static Water Level vs Water Production

B o r e h o le M o n it o r in g

2 5
(m below ground level)
Static Water Level

2 0

1 5

1 0

0
Tirr

Tirr

Tirr
Genbot

Genbot

Genbot
Meskerem

Meskerem

Meskerem

d a -b h -1 d a -b h -2 d a -b h -7
d a -b h -6 b e -b h -2 b e -b h -4

Figure 9: Static Water Level Trends at all Boreholes

It is therefore crucial that such monitoring continues since water level measurements are
dependent on season and weather changes from year to year. A data set over a number of
years will be necessary to identify any long-term trends.

4.3. Water Quality

Bacteriological water quality is sampled and tested periodically by the local office of the
Department of Health. A test for faecal coliform contamination of water in the bulk storage
reservoirs has been undertaken 4 times in the past 18 months and all of the results have
tested negative and been declared suitable for human consumption.
Disinfection is carried out on a continuous basis at both reservoir 1 and reservoir 2 during the
daytime hours and residual chlorine levels are monitored on a daily basis at reservoir 1. At
present the systems are being run in such a manner that acceptable chlorine levels are
achieved in the potable water that is being supplied.

4.4. Un-accounted For Water

The measurement of unaccounted water is undertaken on a monthly basis through the
comparison of the metered volume of water pumped from all of the boreholes and the
domestic meter reading information collected in the billing system.

U na c c o un te d for W a te r

50% 2 0.0 0

45% 18 . 0 0

40% 16 . 0 0
percent of production

35% 14 . 0 0

30% 12 . 0 0

25% 10 . 0 0

20% 8 .0 0

15 % 6 .0 0

10 % 4 .0 0

5% 2 .0 0

0% 0 .0 0

p er c e n t o f p r od u c t ion In f r a s t r u c t u r a l L e a k a g e In d e x ( R H a x i s )

Figure 10: Measurements of Un-accounted Water

The variance in water losses can be seen in the graph above. Average losses, have been
15% of production over the past 6 months. The same losses measured as a volume lost per
km of pipeline each day (m3/km/day) have averaged 2.52, this yielding a very respectable
Infrastructure Leakage Index (ILI) of 1,34.

4.5. Latrine Emptying

The emptying of pit latrines and the transport of effluent to the sewage drying site is an
onerous task that currently requires the vacuum tanker to operate continuously during normal
working hours and on weekends.
 P it L a tr in e E m p t y in g

230

2 10

19 0

17 0

15 0

13 0

110

90

70

50

r e q u e st s e m p t ie d

Figure 11: Customer Requests for Pit Latrine Emptying

At one stage during the period of the T-A programme, the disposal of sewage was taking
place close to the Dalecha well-field; this posed a very real threat of contamination of the
aquifer. Sewage is currently disposed of at the disposal site although there is no consistent
use of drying trenches. Such random disposal is creating environmental pollution outside the
fence of the disposal site.

Figures 12 & 13: Pollution by Effluent Disposal at the (a) Dalecha Well Field and (b) Outside the
Sewage Drying Facility

Recent changes in the operation of the pit emptying service has removed the risk of
contamination of the Dalecha well field and continues to limit the possibility of pollution in
town. However, the current situation is far from ideal. The cold climate and periods of high
rainfall in Debre Birhan mitigates against effective drying of effluent placed in the drying
trenches and there is resistance form DBWSSS to incurring the costs associated with
excavation of the trenches.

Figure 14: Trenches at the Sewage Drying Facility

The continued provision of this service is heavily reliant on the functionality of a single
vacuum tanker that may prove to be difficult to maintain. As can be seen from figure 11 there
is a need to empty about 6 latrines daily, with a travel distance of approximately 5 km to the
disposal site.

4.6. Regular Monitoring and Inspection of Infrastructure

5. Finance and Accounting

At the time of the commencement of this project the DBWSSS did not make use of a double
entry accounting system. This made it extremely difficult to ascertain the true financial status
of the organization since each department was keeping their own records but there was no
single point of consolidation. It was pointed out that this was common in Ethiopia but that
change was being implemented.

This point was identified as a serious shortcoming on the part of the systems of the
organization and various training programmes and mentorship support were put in place

5.1. Budgeting
The DBWSSS currently has a healthy bank balance but there are indications that the financial
status of the organisation will deteriorate in the future. Funds available at the bank are held in
both a current account and a fixed deposit facility (4,000,000 ETB) with a government
operated small business loan facility.

The significant improvement of cash resources observed in May 2008 was as a result of
payment of ETB 4 million from the Ethiopian Roads Agency (ERA) for the work that DBWSSS
carried out in relocating pipelines to clear the way for road construction in the middle of town.
As stated above, there is some cause for concern that financial status of the DBWSSS may
deteriorate in the future. It can be seen from the graph presented below that the profitability of
the operation has declined steeply in the past two years.

Debre Birhan WSSS

(Profit/Loss)

2,000,000

1,500,000

1,000,000 640,227
377,608
500,000 224,237
2,033
Bi rr

-500,000

-1,000,000

-1,500,000
(1,320,815)

-2,000,000
FY05 FY06 FY07 FY08 FY09 (proj)

Figure 17: Operational Surplus and Deficit

It can be seen from figures 18 and 19 presented below, that while there has been a steady
increase in revenue over the last few years, a significant increase in operational costs has
occurred, particularly in the current year. Water sales currently represent 53% of total income
with such sales having grown by 75% since 2005.

Revenue Expenditure

1,600,000 3,000,000
1,400,000
1,200,000 2,500,000
1,000,000
2,000,000
Birr

800,000
ETB

600,000 1,500,000
400,000
200,000 1,000,000
-
500,000
p-fountain
water

other
charges
sanitation

pipes and

connection

service

crossing
sales

fittings
water

road
sales

fees

-
salary, pension, etc operations pipes, fittings, etc pipeline replacement

FY05 FY06 FY07 FY08 FY09(proj) Actual FY08 Projected FY09

Figures 18 & 19: Revenue and Expenditure Trends

This problem is further exacerbated by the fact that such losses are being budgeted for and
there appears to be little to ensuring that the organisation generates a sustainable surplus
from the ongoing business of water sales. This situation is probably attributable to the fact
that available data was not being converted into management information and hence the
longer term implications were not being noted.
5.2. Tariffs
Fundamental to the improvement of this situation is the establishment of a realistic and
surplus generating tariff regime. The current tariffs for water sales have remained unchanged
for 5 years in Debre Birhan.

A tariff study conducted as part of the technical assistance programme has recommended a
new set of tariffs that balance the need for financial viability and the socio-economic realities
of the population in the town.

Table 4: Recommended Tariff Adjustments

Tariff per m3 in ETB

Consumption range current Recommended Increase
(m3)
Block 1 0–5 1.6 2.5 56%
Block 2 5 – 10 1.8 2.81 56%
Block 3 10 – 25 2.25 3.17 41%
Block 4 25 – 40 2.5 3.65 46%
Block 5 > 40 2.75 4.19 53%

5.3. Debt
The Debt owed to DBWSSS is currently equivalent to roughly 2 months income. The total
debt owed to the DBWSS is made up of three components:

water bills,
9%

connection
staff loans, loans,
57% 34%

Figure 17: Breakdown of debt Owed to DBWSSS

Unpaid water bills represent 3.5% – 5% of total sales, on a monthly basis. The vast majority
of the company’s debt is due to staff loans and it was observed that the repayment of this
debt was erratic.
It can be seen that even though the vast majority of the residents of the town have very low
incomes there is a good rate of cost recovery and the debt related to water sales is not
increasing. This indicates that non-payment is being made up in subsequent months. It
should also be noted that people who cannot afford a private connection collect water from
public fountains. A nominal charge of ETB 0-20 per 20litres is also collected by a bailiff at
these communal supply points.

6. Commercial

The number of customer contracts with the DBWSSS has grown from 6,790 in September
2007 to 7,809 in March 2009. This represents a growth of 10 % per annum. In March 2008 a
total of 84 new customers were connected in one month. The opportunity to grow the
customer base by this amount has been made possible by the construction of bulk pipelines
in areas of new housing development. This capital investment was made possible through
funding from AFD.

N u m b e r o f Cu s t o m e rs

9 ,0 0 0

8 ,5 0 0
bills & contracts

8 ,0 0 0

7 ,5 0 0

7 ,0 0 0

6 ,5 0 0

6 ,0 0 0

b i l l s i ssu e d c on t r ac t s

Figure 15: Growth of Customer Base

At present the DBWSS provides new connections and responds to maintenance requests
within a day of the customer lodging a request with the office. In some cases it has been
reported that the connection of new customers has taken place on the same day as the
application. Likewise, pit empting is dealt with promptly, the customer usually receiving the
service within one or two days of his request. Such a level of customer service is admirable.

The billing system operated by the organization is a simple “access” based solution that
produces monthly bills based on meter readings. This IT solution has proved to be reliable
with not a single callout for software maintenance in the past 5 years. Although the system is
unsophisticated it has enabled the production of regular and accurate bills. As there are no
street addresses or postal service in Debre Birhan it is necessary that each customer goes to
the Kebele (ward) office and collects their bill and pay their water account. Uncollected
(unpaid) bills are returned to central office where the arrears are added to the following
month’s bill, this is carried out manually. In theory continued non-payment can result in
disconnection but in reality this is seldom necessary.

7. SUMMARY AND CONCLUSIONS

The implementation of the systems described above whereby data has been processed into
useful information to assist management decision making had a number of useful outcomes:
¾ Donors were given comfort on the effective operation of the organization
¾ The Management and Board of Directors of the DBWSSS were sensitised to
some of the risks and threats the organization may have to accommodate in the
future.
¾ Various staff members achieved a better understanding of the operational
requirements that should be expected of a well run water services utility.

On the whole the Debre Birhan Water Supply and Sewerage Service is an organization that is
operating well in a difficult environment with a limited economy. The large investment from
AFD has enabled the organization to expand its services and many new customers continue
to be connected to the system. The development of regular reporting highlighted the following
areas of concern for the future:

1. There is a danger that the aquifers might be over-pumped in the future. Continued
ground water monitoring is therefore crucial to the sustainability of the service.
2. Consumption growth must be closely monitored.
3. More attention to ensuring appropriate water quality is required. Particularly in view
of the ever expanding new housing developments.
4. There is currently a significant income from new connections. This has been
consequential to the new bulk infrastructure that was grant funded. The
organization will have to make financial provision for continued expansion of bulk
infrastructure without the benefit of such external investment.
5. Tariff modification needs to take place so that there is more reliance on water sales
rather than once off construction type activities such as new connections or pipe
replacements.
6. A double entry accounting system is desperately needed so that the financial status
of the organization can be realistically evaluated.
7. Annual budgeting needs to be realistically undertaken with a view to continued
generation of a trading surplus.
8. The organizations debt needs to be controlled particularly the staff loans
component.

Finally, the importance of collecting operational data cannot be over emphasized. The
challenge of improving the operation of water companies or departments will remain elusive
as long as we are attempting to improve that which we cannot even measure.

8. ACKNOWLEDGEMENTS

The assistance and support of the following people is gratefully noted:

¾ Ato Abiye Sissay (Manager) and Ato Admasu Kebede (Engineer) of the Debre
Birhan Water Supply and Sewerage Service
¾ Messr’s Yazid bensaid and Chaik Djia of the AFD office in Addis Abeba
¾ Mr JP Mas of Ukhamba Advisory Services
¾ Ato Melaku Mulugeta and his team at Tropics Consulting Engineers in Addis
Abeba