Narrative description of the supervised Project:
The EBRD extended a loan of up to €20 million to the Mersin Water and Sewerage Administration (“MESKİ”) to finance the construction of the greenfield Mezitli Wastewater Treatment Plant (the “Project”). The loan was guaranteed by the City of Mersin.
MESKİ is a water and wastewater company, wholly owned by Mersin Metropolitan Municipality which provides water and wastewater services in Mersin city centre and 13 districts
Description of actual services provided by the staff within the assignment:
We assessed the level of MESKİ performance and service quality, prepared an excellence model which consists of customer strategy, regulatory affairs, asset, work, product and customer management
- We identified areas for improvement of financial and operational performance of MESKİ by preparing a FOPIP, which included recommendations on possible improvements and next steps for development in areas of new tariff scheme (introduction of two-part tariff), billing and collections processes, sales/commercial area, municipal transformation, NRW assessment & water balance in MESKİ service boundaries, metering, IT system integration and general service level agreement within the company
- We provided templates and methodologies for MESKİ to follow in the regional merger and consolidation process in which MESKİ acquires control over water/wastewater infrastructure in the entire province of Mersin, outlining the need for PPP in several cases
- We prepared asset management system and templates for predictive regular maintenance and replacement of assets, and defined PPP options
- We designed revenue increase programme consisting of two components: (a) loyalty and promotional PPP programme, first of its kind in Turkey, with the goal of reducing illegal water use and introducing responsible behavioural patterns in water consumption through sharing service responsibility with private partners, and (b) billing and customer care process improvements
- We have supported the middle management in implementing the revenue increase programme and gaining understanding of PPP/private sector specifics in working with them
- We assisted MESKİ in design and implementation of KPI-based performance system with focus on selection, monitoring and evaluation of the monthly and annual performance. The KPI management system helped MESKİ to achieve EFQM Committed to Excellence 2-star award.
- We prepared comprehensive and long term business plan which outlines MESKİ’s commercial standing, investment planning, strategic objectives and aims to improve service quality, and environmental and social performance.
- We supported Waste Water Department in defining improvements in sludge processing operations in waste water treatment process and related biogas production
- We prepared a pre-feasibility study for 1 MWp photovoltaic (PV) solar power plant installation project in Karaduvar WWTP
- We designed communication strategy and carried out customer awareness raising campaign with focus at promoting MESKİ’s messages on environmental, technical, economical, rational and health aspects of water consumption
- We restated MESKİ’s financial statements per IFRS for financial years 2012, 2013, 2014, 2015 and organized an IFRS training to MESKİ financial department including senior accountants and managers focusing on preparation of interim financial statements restated in line with GAAP and IFRS
- We supported collection of financials in financial department of Mersin Metropolitan Municipality and updated financial analysis of MESKİ with annual figures and prepared sensitivity analysis on MESKİ’s repayment capacity in relation to extension of grace period.
- We organized a study tour consisting of workshops, trainings and site visits focusing on operational improvements and private sector participation in water utilities in Bratislava and Prague Water Utilities.
“Aspiro presented us qualified team of CDP experts, supporting us in various areas of our business – from financials, water management, operations to stakeholder relations. We especially profited from their broad expertise in management of similar projects in EBRD environment. Their suggested improvements were always supported by analysis, making us aware of benefits and risks of proposed steps, thus having exact and complete information for our decision making. We also liked Aspiro’s practical approach when we implemented the changes to our services portfolio. They helped us to define and shape future investments from the initial stage and prepared pre-feasibility analysis which enabled us to move forward. Our cooperation was smooth and enjoyable.”
Handan Solmaz, Head of PIU, MESKİ