Jimma institute of technology Business plan of water supply system

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Department of WREE
Jimma institute of technology Business plan of water supply system

List of member ID No
Kewser Abdulfetah 4415/00
Mamaru Dessalegn 4433/00
Henok Kiflom 4427/00
Kidest Tesfaye 4454/00
Haymanot Melesse 4413/00

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Jimma institute of technology Business plan of water supply system

Jimma Town Water Supply

And Sewerage

Preparation of Business Plan

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Jimma institute of technology Business plan of water supply system

Table of Contents
1 Executive Summary..................................................................................................................................6

1.1 GENERAL........................................................................................................................................6

2 INTRODUCTIONS..................................................................................................................................7

2.1 Background.......................................................................................................................................7

2.2 Establishment of the Town................................................................................................................8

2.3 Water Supply.....................................................................................................................................8

2.4 Populations and Water Demand.........................................................................................................9

2.5 Water Source.....................................................................................................................................9

2.6 Impacts of the Water Supply Project.................................................................................................9

3 Purposes, Vision & Objective of the Enterprise.....................................................................................10

3.1 Purpose............................................................................................................................................10

3.2 Vision..............................................................................................................................................11

3.3 Objective.........................................................................................................................................11

4 Town Water Board.................................................................................................................................12

5 Definition of business plan.....................................................................................................................12

5.1 Importance of Preparing a Business Plan.........................................................................................12

5.2 Business plan includes:....................................................................................................................13

5.3 Financial Management.....................................................................................................................13

5.4 Operation and Maintenance.............................................................................................................14

5.5 Capacity Building.............................................................................................................................14

5.5.1Capacity Building Measures.......................................................................................................14

5.6 The overall objectives for the capacity building plan are the following:..........................................14

5.7 Organizational Development of the Water Supply system...............................................................15

5.8 Systems Development and Implementation.....................................................................................15

6 Plan of Action and Budget......................................................................................................................16

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Jimma institute of technology Business plan of water supply system

6.1 Plan of Action..................................................................................................................................16

6.1.1 The Short-term Plan..................................................................................................................16

6.1.2 The Medium-term Plan.............................................................................................................16

6.1.3 The Long-term Plan..................................................................................................................17

6.2 Budget.........................................................................................................................................17

6.2.1 Project Costs.............................................................................................................................17

7 Water Consumption and Market Study...........................................................................................17

7.1 Customers....................................................................................................................................17

7.2 Marketing Potential.....................................................................................................................18

8 Financial Plan.................................................................................................................................18

8.1 Investment Cost...........................................................................................................................18

8.2 Land Compensation.....................................................................................................................19

8.3 Source development.....................................................................................................................19

8.4 Treatment.....................................................................................................................................19

8.5 Pumping Stations, Power Supplies and Centrifugal Pumps.........................................................19

8.6 Service Reservoirs & break pressure thanks................................................................................19

8.7 Distribution System.....................................................................................................................19

8.8 Public Fountains..........................................................................................................................19

8.9 Tariff Policies..............................................................................................................................19

8.9.1 Concepts...................................................................................................................................20

8.9.2 Costs.........................................................................................................................................20

8.10 Marketing Strategy........................................................................................................................21

9 Changing legal arrangements..............................................................................................................21

9.1 Publicity..........................................................................................................................................21

9.2 Improve Customer Complaint Handling..........................................................................................21

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Jimma institute of technology Business plan of water supply system

9.3 Identity (Corporate Image)..............................................................................................................22

10 Monitoring the Plan..........................................................................................................................22

11 Conclusion............................................................................................................................................23

12 References............................................................................................................................................24

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Jimma institute of technology Business plan of water supply system

1 Executive Summary
1.1 GENERAL
Jimma town is situated in the southwestern part of Oromia Regional State at latitude of 70 40` N
and longitude 360 50` E. at a road distance of 352 km from Addis Ababa. The town lies on
gentle slope with an elevation varying from 1,700masl to 1,800masl except Jiren area where the
elevation reaches up to 2020masl, and it characterized by temperate humid climatic zone. The
town is an important commercial center for coffee trading. For administrative purpose the town
is divided into thirteen kebeles. The present estimated population of the town as per the
information from the Town Water Board members and the Municipality is about 166,000. The
power supply for town is from national power grid. It has digital telephone service and is
connected with Addis Ababa with asphalt road air transport service which is five days per week.
In addition it is also connected to Gambela, Gore, Assossa, and Tepi about three days in a week.

In this publish paper we have included the definition of water supply business plan with its
purpose, the projection of population and water demand, system of water supply, how we can
build the capacity, purpose of water board, the source of supply, financial management of the
project, total budget and project cost. Their description in detail for each section is stated in the
subsequent section .

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2 INTRODUCTIONS
2.1 Background
Towns are centers for social, political and economical activities that require basic infrastructures
to facilitate the proper function of the activities. However, most towns in Ethiopia in general and
Oromia in particular do not have adequate infrastructure facilities and nor fully capable and
authorized administrations to run the infrastructure. To mitigate the short comings and to achieve
the Millennium Development Goal (MDG), at present, the Ethiopian government has given due
attention for the development of basic infrastructure of the towns. Accordingly, decentralize
administrations of the towns have been established and federal and regional governments are
supporting the decentralization activities and development work of infrastructures in order to
fulfill the basic needs of the towns. One of the basic infrastructures which, is necessary for the
towns to adequately run the social, political and economical activities is water and sanitation
facilities. Until recently the overall management of these facilities has been coordinated
centrally. This in turn has caused poor management and hence poor service of the infrastructure.
To mitigate the aforementioned problem, water policy has been set and resolutions to
decentralize the operation and management of water supply and sanitation services has been
passed. This is being done through Government support in the establishment of autonomous
Water Boards for the planning, operations and financial management of Water Supply and
Sewerage Enterprise and its investments for future expansion to the wider population.

To facilitate the establishment of the Town Water Board, proclamations and bylaws have been
set by the respective Regional Governments so as to give legal status of the TWBs. Accordingly,
the organizational structure of the town water supply and sanitation services have been
restructured pertinent to the proclamations. The rapid expansion of urban centers has sought for
the development of the infrastructures that cop with the ever expanding urban centers; among
which the water supply and sanitation sector is one. To this effect the planning and management
of water supply and sanitation facilities has changed dimensionally and in its extent. These
changes are attributed to the rapid economic development, population boom, limitation of
resources in most of the urban centers of the Country. As a result the cost for development of
water supply and sanitation facilities has increased rapidly while resources are growing

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comparatively scarce. To alleviate these problems it is found necessary to have guiding

principles on appropriate resource management such as cost recovery, efficient financial, human
and other resource management and institutional arrangement. To meet these requirements and
to attain the MDG through Universal Access Plan, (UAP) the Regional Government of Oromia
has funded the Feasibility Study Detail Design and business plan preparation of four towns’
water supply and sanitation project, among which Jimma is one. This business plan is prepared
based on the Feasibility Study Detail Design of the water supply and sanitation project of Jimma
town.

2.2 Establishment of the Town

Jimma town was established in 1930 and it situated in the southwestern part of Oromia Regional
State at latitude of 70 40` N and longitude 360 50` E. at a road distance of 335 km from Addis
Ababa. The town lies on gentle slope with an elevation varying from 1,700masl to 1,800masl and
it characterized by temperate humid climatic zone. The town is an important commercial center
for coffee trading. For administrative purpose the town is divided into thirteen kebeles. The
present estimated population of the town as per the information from the Town Water Board
members and the Municipality is about 166,000. The population size of Jimma, according to the
CSA Population and Housing Census of 1994 was 88,867. The current total population of
Jimma, as per the information obtained from the Municipality and the Kebele officials is about
166,000. If the 1994 CSA census, which is 88,867, is projected to year 2007, with growth rate of
4.6 percent, it will come to 167,359.

2.3 Water Supply

Jimma town water supply is from Gilgel Gibe River with a weir intake structure. During the
study, potential water sources have been investigated and it has been verified that the viable
potential water source is Gilgel Gibe River. At that time the water source for Jimma town was
Boreholes and Saint Gabriel spring. The yield of the Boreholes was not adequate to supply the
required demand of the township. As a result further study on the Gilgel Gibe River was
conducted and the present weir intake has been designed accordingly. The scheme has been
designed for design period of 10 years to serve projected population of 123,000.

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2.4 Populations and Water Demand

Available statistical documents for Jimma at present are that of the Central Statistics Authority
(CSA) Population and Housing Census of 1994 and the 1998 Analytical Report which indicates
the population growth rate in three variants. Thus for population projection the CSA Population
and Housing Census report of 1994 which is 88,867, has been used as base figure. The 1994
CSA report population figure for Jimma town i.e. 88,867 has been projected to year 2007, with
growth rate of 4.6 percent. The projected figure for the town was 167,359 which are nearly the
same to the population indicated by the Municipality for the same year.

2.5 Water Source

Under this study the previous water resource verification report and the source identification
study report for Jiren area has been studied and it has been found that the viable option to be the
Gilgel Gibe River. Hence adequacy of the Gilgel Gibe River has been analyzed under this study.
The water supply source for Jimma town is a weir intake from Gilgel Gibe River. The Capacity
of the Gilgel Gibe River has been checked for its adequacy to supply the future demand of
Jimma town. The findings of the analysis are as indicated hereunder.

2.6 Impacts of the Water Supply Project

Due to the problems associated with the limited supply from the existing source, the Water Supply
and Sewerage Enterprise and the major stakeholders in the region have been undertaking a number
of measures to improve the water supply system of Jimma. The major initiative currently planned is
rehabilitate the raw water intake, installation of new raw water pumps, to construct additional new
water treatment plant nearby the existing treatment plant, and other huge physical facilities and
infrastructures.
In order to enable the Jimma town water supply and sewerage Enterprise efficiently operate and
manage the new water supply system sustainable and effectively on cost recovery basis, the utility
should be strengthened in the functions of operational, financial, and managerial capability.

Therefore, when the new water supply system starts functioning, because of expansion of the
operation of the system, would have a considerable impact on the current organizational structure.
Consequently, the major impacts of the new water supply system on the organizational set-up of
Enterprise are summarized as follows:

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 As the consequence of expanded operation, expected number of customers would increase

compared to the existing system.
 Due to the new water supply system the required number of employee would be
considerably increased so as to enable the office efficiently performs its duties.
 Due to the construction of huge facilities, the new system would require highly qualified
and trained employees to operate and manage the physical facilities on a sustainable
basis.
 The outcomes of the new water supply system obviously would be high production. This
in turn results high demand of water. Therefore, service provision simultaneously
increased in all phases of its operations and this will require a more efficient service.
 Due to the improved capability and capacity of the system, the financial transactions would
be increased compared to the existing system.

In general, to operate and manage the new water supply system of Jimma town to sustainably and
effectively on cost recovery basis, more efficient, reliable and fast services are required in the following
functional activities:
 Overall Management of the Water Service
 Operation and maintenance
 Materials management
 Customer handling, billing and collections
 Financial management
Hence, for the successful and efficient handling of the operations and implementation of the new
water supply system it requires reviewing and assessment of current organizational structure to
address the initiatives of the authority.

3 Purposes, Vision & Objective of the Enterprise

3.1 Purpose
The purpose of Jimma town Water Supply and Sewerage system is to supply potable water
treated to high standards, without interruption to all users of the water supply services and
collects, treats household and industrial wastewater to regional standards before discharging back
to the river system in an efficient manner.

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3.2 Vision
Our vision is that all peoples and organizations in Jimma town should get clear, sufficient and
reliable water supply and sewerage services.

3.3 Objective
The objectives related to the achievement of our vision and purpose. This should be what our
customers and the population of Jimma must expect from us as venture and from our Water
panel in the way it supervises our activities. Some key objectives for our plan for the future
include:
• To expand of the water supplies service to reach from 70.1% to 100% of the population by the
year 2025 (2025 is the year that the water supply system is designed in the 1 st phase), upgrade
capacity to cop-up with the service required
• To undertake investments in a financially sustainable way that meets the requirements to invest
and be able to provide water supply and sewerage services and connections at affordable prices
to all the population,
• To upgrade the raw water pumping station to meet increasing demands by increasing current
108.7 l/s to 372.7l/s in 2025
• Discharge waste water by treating to the required standard in order to avoid the negative
impact.
• Manage efficiently the Technical and Financial Systems to realize sustainable water supply and
sanitation service.
• To increase the per capita water consumption from current 36 l/d to 60 l/d in 2025
• To improve the capacity of our work & provide efficient service
• To produce financial statements every year & audited by external auditor
• To provide water borne sewerage services to the standard set by the regional government
• Increase the private connections from 46% to 80% in 2025,
• To expand coverage of water supply to provide water supply for the whole population of the
town and rural population at the outskirt of the Town.
• To improve skills and motivation of employees in the management, operation and maintenance
of the utilities.

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• To become an organization that is trusted and respected by the population of Jimma town for its
professionalism and understanding of the requirements of many different customers for water
and sewerage services.

4 Town Water Board

The Town Water Board for Jimma town has been established based on the Region’s
proclamation for the administration and management of urban water supply schemes. The water
supply system is administered under the Town Water Board whose chairperson is the zonal water
resources office head and the Enterprise head being the secretary. The Town Water Board
consists of members from the town administration/municipality, health office, women affair,
finance and economic development zonal office, EEPCO office, education office, one member
from the customers at Jimma.

5 Definition of business plan

Business plan is like a manual that help the entrepreneur to design and start up the business. It
provides a way to see what the financial implications are. This will then help to make decisions,
which are best for the venture to operate and improve its performance in a financially sustainable
way, and at the same time meet the expectations of the consumers.

5.1 Importance of Preparing a Business Plan

Business planning will help the town Water Supply & Sewerage Enterprise to plan operations,
investments and finance in a sustainable and affordable way. It will also;
• Provide a means to share information with employees, customers, political leaders and potential
investors, so that there is agreement on our plans;
• Make sure that investment decisions take account of what consumers want and are prepared to
pay for;
• Ensure that revenues are sufficient for “full cost recovery”, i.e. the Enterprise is financially
sustainable;
• Help the Enterprise to monitor financial and technical performance;
• Support to identify and agree performance targets with customers, community, the Water Board
and relevant government bodies;
• Help to support activities needed for performance improvements of existing activities.

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• It helps the Enterprise to monitor financial and technical performance;

• It supports performance-based contracts with employees or a Private Operator, by helping in
identifying and agreeing on performance targets;

5.2 Business plan includes:

• An investment plan:- To ensure that planning is affordable, including appropriate design and
financial sustainability, and to understand potential future consumers, and plans to expand and
upgrade services;
• A financing plan - Including how and from whom the money to pay for the investment plan
will be raised;
• An operations plan – Management and staffing arrangements including professional support
and training;
• A financial management and reporting plan - To monitor performance and meet regulatory
obligations;
• A marketing and communications plan - To offer informed choices to consumers, including
the type of connection, and to keep decisions transparent; and
• A procurement strategy – To identify professional support needed, and the type of contract
that is appropriate.

5.3 Financial Management

The existing financial management and control has been studied and the necessary
recommendations have been forwarded. Inline to this the Consultant recommend that the
organizational structure to be revised and restructured in order to facilitate the financial operation
in a clear work flow, efficient accumulation of data, healthy inter section communications and
effective internal control. The department had a great burden of work flow including their
routine operations. .As major function finance control consumptions, proper utilization of funds
for logistics expenditures therefore it control itself but this is not a proper segregation of duties.
Let finance regulate and control the proper usage of the resources but the physical performance
done by other departments.

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5.4 Operation and Maintenance

This study has investigated the status of the operation and maintenance of the water supply
system. The strengths and weaknesses in the current management of the operation and
maintenance system are identified. Management and monitoring improvements, which can be
implemented in stages, are proposed. The proposals include an upgrade of the controlling
mechanisms of the pumping equipment by additional installation of control equipment, which
will greatly improve the day-today operation of the system.

5.5 Capacity Building

The Capacity building interventions are directed at the Town Water Board as well as the Water
Supply and Sewerage Enterprise. However, the major focus will be the Water Supply and
Sewerage Enterprise, where a number of Capacity building measures have been proposed.

5.5.1Capacity Building Measures

 Enhancing Financial Resources
 Improved Revenue and Collection
 Reducing Costs
 Improving Customer Service

5.6 The overall objectives for the capacity building plan are the following:
 Enhance the institutional capacity of Enterprise and provide sustainable water supply in the
town.
 Enable the Water Board exercise its responsibilities towards supervising and supporting
the Enterprise.
 Enable the Enterprise to operate independently
 Improve the operational efficiency of the Enterprise
 Enable the Enterprise financially to be self-controlled
 Create improved management capacity in the Water Supply Enterprise.
 Improve the skills and capability of the staff of the Water Supply Enterprise
 Provide the Water Supply Enterprise with improved infrastructure and systems

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5.7 Organizational Development of the Water Supply system

The water supply units are expected to self-administer by generating their own income on
sustainable basis through the achievement of the following targets:
 Improved operational efficiency
 Commercial practice
 Improved revenue

There are no problems in the existing institutional framework. However, it is essential that the
relationship between the utility and the board be clearly identified. Issues that are important in this
respect will be the following:
 Authority of the Board in Tariff, organization structure, salary scale, personnel assignment
and other important management issues
 Preparation of Investment program
 Procurement procedures
 Customer policy issues
 Financial Control
 Monitoring and Evaluation

5.8 Systems Development and Implementation

An important aspect in strengthening town Water Supply and Sewerage Enterprise is establishing
improved operational and management systems.
Therefore, enhancing capabilities in systems development is essential in the following major areas:
 Personnel management
 Financial management
 Operation and maintenance
 Supply management
 Customer Relations
The Water Supply and Sewerage Enterprise should develop financial management and O&M
manuals. Further, what it requires is only targeted support to implement these systems. It can obtain
the support either from the Regional Water Bureau or from a Consultant. Particular priority should
be given to financial management and operations.

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6 Plan of Action and Budget

6.1 Plan of Action
Jimma Town Water Supply and Sewerage Enterprise is at a critical juncture that requires it to
develop a strategy in order to meet the challenges brought about by the policy and scope of operation
changes that it currently faces. Therefore, the need for formulating a phased transformation strategy
cannot be stated enough times. Consequently, we have proposed a short, medium and long-term
strategy.

6.1.1 The Short-term Plan

It deals with the capacity building requirements needed in the coming two to three years. Once
approved, the Water Supply and Sewerage Enterprise would need to immediately embark upon the
discrete project objectives as discussed in this report in order to prepare itself to implement the
project.
The short-term plan shall include the following:
 Improving the institutional framework
 Training of water board members
 Providing Town water board members with guidelines
 Implement improved systems and manuals
 Conduct the on the job training as outlined in the training program
 Improving revenue and collections
 Improving customer relations

6.1.2 The Medium-term Plan

Deals with the institutional development issues and capacity building requirements that will arise
after the project become operational, which would entail additional frameworks for addressing these
needs from 2 to 5 years.
The short-term plan shall include the following:
 Reduce Unaccounted for water
 Reduce power cost through improved pump efficiency
 Training of staff members
 Outsource activities that are not profitable (Example Public Taps)
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 Commercialization Study
 Procurement of facilities

6.1.3 The Long-term Plan

To create independent autonomous public enterprises that can operate on a commercial principle.
The long-term plan shall include the following:
 Implement commercialization

6.2 Budget
The total budget required for the capacity building is Birr 3,230,960. Out of the total 1.5 Million Birr
is required for procurement of Vehicles and other facilities. The Consultant recommends 50% of this
amount that is 1.5 Million Birr shall be (it is estimation not exact)

6.2.1 Project Costs

The estimated costs for the Jimma Water Supply Project is assessed on the basis of tender rates
from recent Contracts in Ethiopia and latest budget quotations for pipes, fittings, valves and
equipment obtained from manufacturers, and local/overseas suppliers.

7 Water Consumption and Market Study

The business of the Jimma town Water Supply & Sewerage Enterprise is delivering water to its
consumers. The main characteristics of the business are the following:
• The Water Supply & Sewerage venture has monopoly
• The venture has social responsibility of providing water to low income section of the society
• The venture has to operate on a commercial basis.
These characteristics are fundamental in formulating its marketing strategy.

7.1 Customers
The types of users are classified in to four, namely
• Private households
• Commercials
• Government and Institutional
• Public Tap users

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7.2 Marketing Potential

The existing water supply service coverage of Jimma town is limited to the relatively low level
areas and the older part of the town located in the low level area due to the Capacity of the
system and inadequacies distribution facilities. The town has extended considerably than it was
during the implementation of the existing water supply project. The increased population
coupled with investment opportunities has called for improved infrastructure such as water,
sanitation facilities and access road. At present considerable number of residential houses, in the
new areas and business and commercial centers are waiting for connection.

The Jimma University community which is about 30,000 populations at present and the un-
served population which are about 30% of the present population are among others who are
potentially waiting to be connected to the water supply system. To adequately address this issue,
the existing water supply system needs to be upgraded as per the feasibility study and detail
design of the system. Besides, the population of the town is anticipated to increase from the
present 167,359 to around 360,733 in 2025 and number of households will increase from the
present 33,472 to around 72,147. The current number of connections is covering only 9194
households, it is expected that the connection will cover around 50,500 households by the year
2025 making potential new customers to the Water Supply & Sewerage Enterprise to about
40,000 households. From past history Jimma town used to be in its glory in terms of commerce
and trade. Although, it, may have somewhat lost its luster and past glories, it is still a commercial
Town that passes through most of the coffee brands coming from the surrounding areas.

Jimma town is also serving as a terminal centre for passengers from south and southwest part of
the neighboring regions and Addis Ababa. Upgrading of the water supply system requires
investment which otherwise, makes the Enterprise in a difficult position to respond for new
applicants.

8 Financial Plan
8.1 Investment Cost
In this section the basic costs associated with each component of the proposed system are
presented. The estimates are based on the unit costs and town factors

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8.2 Land Compensation

Costs related to land compensation is estimated at 160,000 Birr per hectare. Under this design
work the cost includes land compensation cost for reservoir and booster pumping station.

8.3 Source development

The source development work is rehabilitation of Intake works - Weirs, Gates and Channels
rehabilitation of wet well sump, raw water pumping station, supply and installation of pumps
generator and related works. The total investment cost is estimated to be Birr 1.923 million.

8.4 Treatment
The proposed treatment consists of aeration, sedimentation thanks, rapid sand filters, disinfection
and clear water reservoirs. The total investment cost for the above mentioned units including
ancillary accessories is estimated at Birr 15.653 million.

8.5 Pumping Stations, Power Supplies and Centrifugal Pumps

The cost includes civil works and mechanical works and it is estimated to about ETB 9.269
million. The investment cost estimated for power supplies includes cost estimates for supply and
installation of overhead 3 phase low voltage line, transformers, and underground cables to the
pumping stations and the estimated cost is ETB 1,527,862.

8.6 Service Reservoirs & break pressure thanks

The investment costs for the reservoirs are is estimated as ETB 8.137 million

8.7 Distribution System

The estimated cost for the distribution system is ETB 60.739 million.

8.8 Public Fountains

The total investment cost required for constructing the public fountains is ETB 179,010.00.

8.9 Tariff Policies

 Ensure that tariff structures are site-specific and determined according to local circumstances,
 Ensure that urban tariff structures are based on the basis of full cost recovery,
 Establish a “social tariff “ that enables poor communities to cover operation and maintenance
costs, and

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 Establish progressive tariff rates, in urban water supplies, tied to consumption rates.

8.9.1 Concepts
A water tariff is the appropriate price for using the water supply services from municipal or
commercial water provider. The major objectives of water tariff are financial sustainability and
cost recovery, efficient allocation of resources, water conservation and water provision for low-
income groups. The process of tariff setting addresses the determination of a tariff that will
appropriately meet the needs of stakeholders. There are a number of ways in which tariffs can be
developed, among which, cost recovery; economic efficiency, social objectives, practicality and
conservation are the major:
The cost recovery principle refers to the ability of the water service to cover all costs over a
specific time period, usually one-year, while Economic Efficiency emphasizes that a given
service should be produced at the highest net social value, which is interpreted as delivering the
desired level of service at the least cost. A pricing system based on the efficiency system not
only aims for this level of service but also acts as a built-in regulator of demands and system
growth.
Further, there is an obligation for society at large to ensure that the very low-income population
has access to safe water. It becomes the responsibility of the Water Supply & Sewerage
Enterprise that an affordable service is available to this segment of the population. Water utilities
will need to accommodate this section of the population through cross-subsidization of rates
among various consumer groups.

8.9.2 Costs
According to the government’s policy, the urban water tariff is based on full cost recovery, with
a social tariff of operation and maintenance cost for poor communities.
The first important issue in designing a tariff is which of the costs should be covered.
In this study the proposed tariff is based on full cost recovery; to cover the following costs.

• Operation and maintenance cost

• Depreciation
• Interest and loan payment

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8.10 Marketing Strategy

If the water service is expected to achieve the planned increases in sales, it has to undertake a
massive marketing program.
The following measures will be the starting marketing initiatives:
 Promotion of new connections through credit and other flexible arrangements
 The Water Supply & Sewerage Enterprise should encourage households to get connected
to the system.
 One of the major problems for low-income families is lack of financial resource to cover
connection expenses.
Therefore, The Water Supply and Sewerage Enterprise should promote new connections through
credit facilities and other flexible arrangements.

9 Changing legal arrangements

Legal provisions that retard new connections should be removed. The Enterprise should identify
all legal problems and amends them.

9.1 Publicity
It is important for the Enterprise to promote the business plan. It should undertake a series of
public meetings over 1 month, to meet and present to community leaders every 6 months, and to
report progress on achieving business plan.
 Prepare and Implement Public Awareness and Customer Relations Operational Manual.
 Prepare and Implement Monitoring and Evaluation on Public Awareness Campaign.

9.2 Improve Customer Complaint Handling

Customer complaint handling procedures must be developed and equally important a monitoring
system must be in place. Central to the monitoring of customer handling will be the
establishment of customer service standards. Standards will have to be established for the length
of time required for new connections, meter readings, bill collections, sludge removal, time it
takes to respond to customer complaints etc.

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9.3 Identity (Corporate Image)

An organization’s image – its reputation – is among its most valuable corporate resources. It is a
priceless strategic asset – which must be nurtured, managed and readjusted in keeping with the
times and ever-changing business realities. While intangible, a credible image is probably an
organization’s most valuable asset. A corporate identity, which is properly planned and
developed, can play a significant role in improving staff performance and attitude. Therefore, the
Enterprise needs to develop a new identity to enhance the value of its image.

10 Monitoring the Plan

Monitoring plays an essential role in implementing successful plans. A properly designed
monitoring system provides stakeholders with a way to assess implementation of the plan and
make adaptations as needed.
Having made decisions on the activities and investments that will be implemented, and having
undertaken to finalize the work plans, it will be important to ensure that initiatives and
investments are being done according to the timescales and budgets specified in the business
plan.
Therefore, it is essential to develop a monitoring framework that will identify the levels and
actors involved. The proposed monitoring framework is shown below:

Regional Water
Bureau Water Fund
Town
Administration

Water Board

Management
of Enterprise

Enterprise Staff

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Jimma institute of technology Business plan of water supply system

11 Conclusion
The population of Jimma Town has been growing considerably in the last 10 years. The Town
Water Supply and Sewerage Enterprise has attempted to cover the growing water demand.
However, so far it has only achieved limited results. The proportion of households supplied
through private yard connections is still high in terms of number but less served for quantities
and quality of water. Therefore, the Town Water Supply and Sewerage Enterprise should expand
the existing system and attempt to increase the proportion of households supplied through private
yard connections from the present 70% to 100%.

In order to achieve this target it requires a total investment of 156,737,727.20 million Birr.

The investment will be made available primarily through loan, government allocation own
resource and grant. The Water Supply and Sewerage Enterprise will be required to pay the loan
and cover other expenditure. In order to achieve this it has to mobilize all available resources.
The success of any plan is dependent not only on how well it is designed but also on how well it
is implemented. In order to implement the plan successfully, the following issues should be
given priority.

 The commitment of the management and the Municipality to implement the plan and to
address the challenges.

 Effective communication between the Management and the employee.

 Staffing all positions with competent people and upgrading of existing employees
through training.

 Involving the stakeholders primarily, the consumers in the process.

 Communicate with the town community and involve them in decision process.

 Introduction of commercial practices.

 Introduction of incentive schemes

12 References
1. Jimma Town Water Supply and Sewerage annual financial Report, 2007,
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Jimma institute of technology Business plan of water supply system

2. Hand out of entrepreneur ship prepare by Mr. Messay

3. Business Plan Preparation Guideline MoWR, 2004

4. Water Supply and Sanitation Implementation Manual, MoWR, 2004

5. Millennium Development Goal,

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Department of WREE