Quarterly Progress Report 4, April 1 - June 30, 2020

The project focuses on improving operational performance, achieving full cost recovery, and financial sustainability. The IWSSTA Activity is a four-year project, with the objective of enhancing the capacity of HCWW and WWCs in the target governorates. The project is divided into five outcome areas: Asset Management, Quality of Service, Cost Recovery, Operational Efficiency, and Monitoring and Evaluation. In the Asset Management area, the project has prepared the concept structure for the business plan production in Luxor and Sohag water companies, in coordination with HCWW. Additionally, the project has designed data collection training for above-ground assets and prepared the Scope of Work for software assessment and commissioning the short-term consultant. In the Quality of Service area, the project has prepared the central laboratory in Assiut for procurement process, prepared staff structure for labs, and prepared training needs requirements. The project has also presented the Internal Audit functions to each water company. In the Cost Recovery area, the project has reviewed the billing system in Luxor and Minia, conducted Field Testing Customer Identification Survey in Minia and Assiut, and prepared Power Factor procurement. The Operational Efficiency area has seen significant progress, with the establishment of a Best Practice Committee for water treatment. The committee has implemented changes, such as switching from alum powder to alum liquid, which has resulted in a 30% improvement in terms of cost. The project has also prepared training packages for energy efficiency audits. The Monitoring, Evaluation, and Learning (MEL) Plan has been updated in response to feedback received from USAID. The plan is now an integral tool within the IWSSTA and is used to monitor progress. The project has also started to conduct field activities from June 2020, ensuring that risk assessments are conducted and mitigation measures are used. The project has made significant progress in its first year, with some timing revisions to the Year 1 Workplan. However, the tasks will still be carried out, and the targets will remain valid. The project is also reinforcing its regional footprint, after gaining significant knowledge of existing skills and gaps within target WWCs. As the project deepens its knowledge of its partner WWCs, it can progressively see new opportunities to improve the outcomes of the project, as well as new routes that will require more culture change than originally expected. The project has been affected by the outbreak of the novel coronavirus disease 2019 (COVID-19), which has impacted the ability of the project to implement field activities. However, the Government of Egypt (GOE) strategy of coexistence with COVID-19 has allowed the project to continue its activities, with measures to reduce transmission of the virus. The project is committed to ensuring the safety of its staff and stakeholders while continuing to implement its activities. The IWSSTA Activity is a critical component of the USAID/Egypt Water and Wastewater Sector (WWS) reform efforts. The project aims to support the GOE in promoting sustainability of the WWS, and its progress will be closely monitored to ensure that it meets its objectives.