Collection Efficiency % (Total Annual Collection of Water & Sewerage Sales (G$) divided by Total Annual Billed Water & Sewerage Sales (G$)) 100. Year Target = (90-BM)IF + BM Target will be measured average of statistics for year. Establish BM mid Q2/Q3 to coincide with billing cycle (90-BM) 0.25 + BM IF =0.25 (90-BM)x 0.50 + BM IF = 0.50 (90-BM)x 0.75 + BM IF = 0.75 90% Metering Coverage % (Number of connected customers billed on a metered basis divided by the Total number of connected customers) 100. Year Target = Previous Target + (85-BM)IF Target will be measured last day month 11 Establish BM with statistics of last day of month 6 (BM + [85 - BM] ) 0.25 IF = 0.25 (Previous Year Target + [85 - BM] ) 0.50 F = 0.50 (Previous Year Target + [85 - BM]) 0.75 IF = 0.75 85%
Billing Routine billing Requiring Field Work N/A 1 Day 7 Days 0.5 Day 5 Days 0.5 Day 4 Days 0.5 Day 3 Days Leakage Large leaks Minor leaks Large leak is defined as greater than 20 litres per minute N/A 1 Day 5 Days 1 Day 5 Days 1 Day 4 Days 1 Day 3Days Sewerage N/A 2 Days 1 Day 1 Day 1 Day Hinterland complaints N/A 7 Days 6 Days 5 Days 4Days
55%, 2 + 3%, 2 58%. 1 5, “1” 1 A “5” 5 1 5. H.3 Performance Obligations of the Operator for the Third Year Performance Criterion Criteria Weights Criterion Values 1 2 3 4 5 Non-Revenue Water 20 Target Target +3% Target +6% Target +8% Target +10% Continuity of Service 8 Target Target minus Target minus 2 hours Target minus 3 hours Target minus 4 hours Collection Efficiency 20 Target Target minus 1% Target minus 2% Target minus 3% Target minus 4% Metering Coverage 12 Target minus 2% Target minus 3% Target minus 4% Target minus 5% Disposal Efficiency 8 3.0% 3.5% 4.0% 4.5% 5.0% Response Time to Customer Complaints Routine Billing complaints 3 0.5 Days 0.7 Days 0.8 Days 0.9 Days 1 Days Billing complaints requiring investigation 2 5 Days 5.5 Days 6 Days 6.5 Days 7 Days Leakage complaints (Large leaks) 3 1 Day 1.25 Days 1.50 Days 1.75 Days 2 Days Leakage complaints (Minor leaks) 3 5 Days 5.5 Days 6 Days 6.5 Days 7 Days Sewage complaints 3 1 Days 1.25 Days 1.5 Days 1.75 Days 2 Days Hinterland complaints 3 6 Days 6.5 Days 7 Days 7.5 Days 8 Days Service Coverage in the Hinterland 15 Target Target - 2% Target- 5% Target - 7% Target - 9%
Part 4: Performance Evaluation at the End of the Year The fourth and final step is taken at the end of years 2-5, when we look at the achievements of the Operator and compare them with the criteria values and determine the composite score – reflecting overall performance of the Operator. A hypothetical example of the above system, including the calculation of the composite score is given below: Sample Management Contract Targets at the Beginning of the Year of Year x Criterion Units Weight Criterion Values 1 2 3 4 5 Reduction of unaccounted for water % .30 55 57 59 61 63 Collection efficiency % .40 35 37 39 41 43 Metering coverage % .30 30 28 26 24 22 The following table demonstrates the procedure for the calculation of the “Composite Performance Score,” if at the end of the year the achievements of the Operator are as follows: i) Reduction of unaccounted for water 57 ii) Collection efficiency 36 iii) Metering coverage 30 Calculation of Composite Performance Score Criterion Units Weight Achievement Raw Score Weighted Score Reduction of unaccounted for water % .30 57 2 .6 Collection efficiency % .40 36 1.5 .6 Metering coverage % .30 30 1 .3 Composite Performance Score 1.5 H.7 The Method for Incentive Compensation Payments The Operator will be paid Incentive Compensation based on the following formula: Annual Incentive Compensation Payment = 3.5 - Composite Score X Maximum Annual Incentive Compensation 2.5 The method for calculating the Composite Score is given in section 6 of this Appendix.