Ke hoach SXKD cty URENCO ninh binh revised

08 Fall CORPORATE BUSINESS PLAN NINH BINH CITY ENVIRONMENT AND URBAN SERVICES JOINTSTOCK COMPANY 2016 – 2020 period November 2016 TABLE OF CONTENTS LIST OF TABLES AND DIAGRAMS LIST OF ABBREVIATION COGS Cost of goods sold Company Ninh Binh City Environment and Urban Services Jointstock Company JSC Joint Stock Company MABUTIP Management Board of Urban Technical Infrastructure Development Projects (Technical Infrastructure Agency- Ministry of Construction) M&E Monitoring and Evaluation PMU Project Management Unit PPC Provincial People’s Committee ROA Return on Assets ROE Return on Equity SOPs Standard Operating Procedures T&C CONSULTING Transformation and Change Management Consulting Company Limited WB World Bank PREFACE Along with the economic development towards industrialization and modernization as well as the fast urbanization all over the country, there exist environmental and infrastructural problems which need to be solved Ninh Binh City, with 580,000 citizens, will be extended up to 21,124 and will become the city under the central government by 2030 It is planned with to be a “cultural historical tourist centre which shall be both nationally and internationally oriented” Such change will be great attraction to the labor force and enterprises in the neighbouring areas The demand for public services increases in both quality and quantity Ninh Binh becomes an interesting market for companies supplying utilities services and urban services Under these circumstances, strategic mission of Ninh Binh is “to improve opportunities of accessing stable water supplying services, hygiene and sewage” It requires Ninh Binh City Environment and Urban Services JSC (hereinafter referred to as the Company) to be more active, more business and market oriented to achieve stable development on the basis of stable and high quality services Under the Urban Water Supply and Sewerage Project financed by WB, to ensure the management unit manage and operate the project effectively (total revenue is higher than total cost) and ensure ability of repayment, based on Operation Improvement Plan (OIP) approved by WB, the Project has recruited Consultants to develop the Corporate Development Plan in period of 2016 – 2020 for Ninh Binh Environment & Public Services JSC to assist the Company to be active and flexible in business activities, improving production and business efficiency and facilitating stable and sustainable development To meet the above objectives, the process of “Development of corporate business plan in period of 2016 – 2020 for Ninh Binh City Environment and Urban Services JSC” supported by the Consultant has been implemented through steps of investigation, comprehensive evaluation on Company’s business activities and study on development orientation under cooperation with Company’s staffs The business plan is developed to achieve the following specific objectives: (i) Assist the Company to have clear development orientation in period of 2016 – (ii) (iii) (iv) 2020; Assist the Company to manage business activities actively and flexibly; Improve production and business efficiency; Facilitate stable and sustainable development To ensure the feasibility, the business plan of Ninh Binh City Environment and Urban Services JSC need to be based on maximized mobilization of available resources, improvement of inefficient activities and making use of potential market oppotunities Thus, the business plan includes the following main parts: Part 1: Analyse of Company’s business activities and resources; Part 2: Analyse of environmental impacts and identification of opportunities and challenges; Part 3: Identification of business targets and implementation plan; Part 4: Implementation and monitoring Details are presented in the contents of the business plan below PART OVERVIEW OF COMPANY AND ITS CORPORATE DEVELOPMENT SITUATION 1.1 Introduction to Ninh Binh City Environment and Urban Services JSC Ninh Binh City Environment and Urban Services JSC is working in the fields of operating, implementing, constructing lighting systems; collecting and treatment the garbage, planting and caring for public trees to maintain a green, clean and beautiful city Established in 1986 through the decision of Ha Nam Ninh Provincial People’s Committee, its main development stages are described as below: Figure : Main development stages 1986 1996 1997 1999 2010 2014 To date Urban Construction and Management Company was established by Ninh Binh Province People’s Committee’s decision Renamed as Ninh Binh Construction Company assigned by Ninh Binh Province People’s Committee’s decision Recognized as pulic utilities enterprise Reformed operation system and renamed as Ninh Binh Town Environment and Urban Services Company Renamed as Ninh Binh city Environment and Urban Services One-member limited company Equitized and became Ninh Binh City Environment and Urban Services JSC Decision No.418/QD-UB dated 12/6/1986 decided to merge Town Construction Group and Public Services Group into Urban Construction and Management Company oriented and controlled by Ninh Binh Town People’s Committee On 22/8/1996, it was renamed as Ninh Binh Town Construction Company assigned by Ninh Binh Town People’s Committee according to Decision 1250/QD – UBND of Ninh Binh Province On 14/5/1997, Ninh Binh PPC issued Decision 575/QD-UB to recognze Ninh Binh Town Urban Construction Services Company as a public utility enterprise In April 1999, Ninh Binh PPC made decision to reform the management organization and renamed the company as “Ninh Binh Town Environment and Urban Services Company” (now it is Ninh Binh city) On 20/5/2010, Ninh Binh PPC issued Decision 486/QD-UB to rename the company as “Ninh Binh City Environment and Urban Services One- Member Limited Company” In implementation of the Plan 55/KH – UBND dated 12/10/2012, decision 209/QD-UB dated 1/4/2013 of Ninh Binh PPC on equitizing enterprises with 100% of state capital in the province Decision No 851/QD – UBND dated 18/11/2013 of Ninh Binh PPC approving the enterprise value of Ninh Binh City Environment s and Urban Services One-member Limited Company for equitization and Decision No 901/QD-UBND dated 05/12/2013 of Ninh Binh PPC approving the proposal and transformation of Ninh Binh Environment and Urban Services One-member Limited Company into JSC 1.2 Business situation of the company in the 2012-2015 period 1.2.1 Situation of technology, technique and sewage treatment system Basically, the Electronic Systems and Engineering Technology of the compay is primarily focus on fields: Wastewater treatment technologies and solid waste reatment technologies In the former system,there will be an analysis of the situation of groups, including: Sewage drainage, sewage treatment, stormwater treatment, surface water collection, sewer outlets, flood protection, river drainage and drainage basin Sewerage Network Sewage from households is discharged into sub-regional sewers, then sewage passes sewer network level 2, level There is no exlusion of households living along the main roads, who discharge sewage directly to sewer network level 1, level Sewer network consists of short culverts which directly discharge water into main sewers and then into Van river through floodgates Therefore, after sewage from households is pumped sewers, it will be discharged into Van river Wastewater pumping station and treatment plant Currently, Ninh Binh has no sewage pumping station There are only drainage pumping stations to pump water into Van river when the Van river’s water level is high, namely: Bach Cu pumping station, Phuc Chinh pumping station, Southest City pumping station, Ninh Phong pumping station, Ninh Binh thermo power plant’s pumping station, Con Muoi pumping station, Hoang Son pumping station, … Besides, pump stations to serve the agricultural area, although constructed a long time ago but are still working efficiently Rainwater drainage system At the moment, Ninh Binh City uses a shared water sewerage system The whole city has a fairly complete sewer system and drainage ditch system; the structure is mainly ditches, covered by reinforced concrete plates whose rectangular cross section is 0,6 – 1,0m width on average In the North-Western part of the city, there are two main drainage canals: The Western drainage canal which has been concreted and has the average width of B = 4,0m and the Quyet Thang Canal which has also been concreted and has the average width of B = 2,0-2,5m In the South-West, there is Bich Dao drainage canal, which goes through Chan Chim sewer, the main is the main drainage shaft for the most part of the South-West of the city except for the basin from Road 10 overlooking Day River and from the railway overlooking Van river The main feature of the city’s drainage system is that it is closely tied with Van River’s drainage When the Van River’s water level is low, all the sewage is discharged directly into Van river When Van river’s water level is high and likely to cause flood (heavy rain and flooding period), drainage is carried out along side with ditch systems and irrigation pumping stations Current pumping stations: • • • • • • • Bach Cu pumping station: 48000 m3/h Phuc Chinh pumping station: 4000 m3/h Southest City pumping station: 12,000 m3/h Ninh Binh thermal power plant’s pumping station: 8000 m3/h Ninh Phong pumping station: 28000 m3/h Con Muoi 9600 m3/h Hoang Son: 4800 m3/h The whole city is divided into water drainage basins: • Drainage basin I includes inferior between National Route 1A and Day River dike This has been a developed urban basin since 1960, whose major axis is Quyet Thang Canal and is concreted with a basin width of 2.0-2.5 m; when the Van river’s water level is high, water • will be drained to Bach Cu pumping station Drainage basin II includes the whole Tan Thanh ward, the western part of National Route 1A and a part of Phuc Thanh Ward, Ninh Khanh Ward from the route to Ninh Tien upwards, draining water to Do Thien canal and a new canal which flows to Van River When there is a heavy rain, rainwater will be drained backwards to Bach Cu pumping station before being • pumped to Day River Drainage basin III includes Nam Thanh Ward,which mainly drains water to Lam San Lake and the main drainage canal before water leaks to Van River when the Van River’s water • level is low Drainage basin IV includes inferior between National Route 1A and the railway The terrain in the area is > 3,0m height, never hit by floods and water is directly discharged into • Van River Drainage basin V includes the Eastern part of Thanh Binh Ward, the whole area of Bich Dao Ward nearby Canh Dieu mountain and the residential area along National Route 10, discharging water to Bich Dao Ditch and Chan Chim sewer installed along National Route 10 When there is a heavy rain, water will be drained into the pumping station in the thermal • power plant Drainage basin VI includes the whole Ninh Phong ward and Ninh Son Ward, water passes through Chan Chim sewer and then flows to Vac River, when there is a heavy rain which raises the Vac River’s water level, the Chan Chim sewer gate will be closed, the rainwater will be concentrated at Ninh Phong pumping station to drain to Vac River Curb and gutter systems On most major routes, stormwater outlets (trash rack bars) are working normally rainwater-drainage system works quite effectively There are only some roads such as Luong Van Thang road, when there is a heavy rain and large flow water, the road is usually struck by flood due to its horse – saddle shape with the concave middle part, therefore, the whole amount of water can not go through at the same time Moreover, broken mainhole cover in several drain lines, results in sand drifting, making sewer line clog in some parts of the city during heavy rains The damanaged manhole cover in Luong Van Thang Sewer gate system The drainage system consists of a series of short drain lines , which directly drain water into canals then to rivers, mostly Van River The drain lines of the residential areas alongside Van river discharge water directly into Van River through sewer gates Therefore, the sewer gates are all high in number and working effectiently The main feature of sewer gates is based on the size of the final drain line flowing to the river The gate is rectangular, its slope is the same slope as the slope of the river embankment (normally 1:1.50), its width is the same as the width of the drainage ditch (B=500-4000), and its height is H = 700 – 2800 Particularly, there are some small sewer gates which discharge exclusively water from some specific small drain lines or from some households alongside the river are allowed to be built in shape of the intersection of circular-shape sewer gate and a slanted surface The sewers are varied in terms of appearances Most sewers are rectangular with the same slope as the slope of the river embankment Current situation of Van River water outlet Solid waste management system (Ctr) The collection of solid waste from the local areas and transportation of solid waste in Ninh Binh City is currently the responsibility of the Ninh Binh City Environment and Urban Service Company The volumn of the household waste per day is about 85 tons but only 80% of them is collected, mainly in innercity areas In areas where solid waste collection has yet to be seen, untreated waste spillages are not concentrated, which causes the unsanitary condition of the city There has been a scheme approved by the city for sanitary landfill in Thung Lang, the same solid waste landfill as Tam Diep, the landfill has room for expansion since the land is 15 in width In newly constructed areas, garbage collection has not been thoroughly conducted, thus there are some sidewalks, empty lots are used as trash and construction debris collection area treatment, isolated by greenery range In the long-term period, waste will be processed with the capacity of 100 tons/day, an area of 15 hectares in 25-30 years Hazardous medical waste should be collected and burned in incinerators • Cemetery: - Using of the city cemetery in Dong Nen with the expansion from 3ha to 9ha in the next 15 years, combining with the construction of incinerators in the future to reduce the - area of the cemetery within the city Expanding the cemetery in Khoai Thuong village, Ninh Phuc commune to 6ha for serving the southeast area of the city This cemetery has 0.4ha width with the low base; therefore, it is necessary to raise its base when expansion Specific indicators for the period of 2016 – 2020 as follows: Table : Technology development plan Indicator 2016 2017 2018 2019 2020 Type of technology for treating waste, solid waste Burying Burying Burying Burying Burying Type of technology for sewage treatment Biological pond Biological pond Biological pond Biological pond Biological pond Executing Piloting and finalizing Applying and improving Applying and improving Applying and improving Applying and improving Developing and applying the ISO 9001:2008 Developing Developing the SOPs for the drainage and sewage treatment system Executing Piloting and finalizing Number of initiatives for technology improvement proposed by the staffs and their application 11 14 Developing and applying the smart office and intranet system helping to store information and to quickly process every internal feedback (% finalizing) 50% 100% 100% 100% 100% 3.3.4 Organization and human resource development plan Direction: This strategy includes the overall activities for: (i) Improving the quality of human resources and (ii) Improving the scope and structure of human resources in an organizational way Improving the quality of human resources will be implemented through training as follows: • Appointing staffs to participate in external training courses such as professional secondary, • college and university Organizing the internal training of professional skills for specialized staffs (such as the • technique on using new technology) Training in the form of hands-on and knowledge transfer to new employees in a work-study • • manner under the guidance of experienced staffs Organizing the professional trainings on marketing for sales and advertising staffs Organizing trainings on soft skills and serving attitude for the specialized staffs On the other hand, the strategy on human resource development that the Company needs to conduct is the mechanism system of company's human resource management This mechanism has a direct impact on the Company’s business situation according to its orientation for development strategy Therefore, the Company needs to focus on following aspects: • • • Defining a roadmap on wage increase for all employees Identifying the bonus mechanism for staffs fulfill/exceed targets defined Identifying the sanction mechanism to violations (on ethics, attitude, qualification) Table : Organization and human resources development plan Indicator Demand resources for 2016 human 2017 2018 2019 2020 450 450 450 450 450 Rate of moving and replacing human resource (%) 15% 10% 5% 5% 5% Rate of training cost/staff (million VND/staff) 0.25 0.35 0.45 0.55 0.65 Number of staffs/1000 tons solid waste collected and treated 12.41 12.00 11.53 11.12 10.60 Rearranging human resource by job position Developing and applying the new evaluation process on work efficiency Developing applying the and new Developing Applying Finalizing Developing Applying Finalizing Developing Applying Evaluating Finalizing and improving Finalizing and improving Finalizing and improving Finalizing and improving Finalizing Finalizing and improving evaluation process on human resource capacity and competence administration Developing and applying the salary regulation by work efficiency Developing the human resource management software integrated with customer relation management Developing Developing Applying Applying Evaluating Evaluating Finalizing Finalizing and improving Finalizing Finalizing and improving 3.3.5 Financial plan The current account way of the Company is adding up all costs without clear allocation for each individual item This makes it difficult for the analysis, planning, monitoring and evaluation of the effectiveness of each element involved in the production and business activities The system does not allow data to calculate indicators of effective measure such as labor productivity of each personnel group, the profitability of each group of assets or systems of technology, technique Therefore, in the financial plan below, it is necessary to change system of cost items according to a more detailed way (compared to the current calculation of the Company), as follows: • The cost of goods sold will be divided into 03 small cost items: Cost of raw materials; Salary • cost of direct labors and depreciation of fixed assets The expense divided on administrative management is divided into 04 parts: salary expenses for managing personnel; operating cost; cost for training - staff development; spare expenses due to price increase and public relations Detailed on the plan of finance and capital of the Company in the period of 2016 – 2020 as follows: Revenue plan: Table : Revenue plan on services 2016 2017 2018 2019 2020 Year Year Year Year Year Indicator Revenue from public service Revenue from urban service 45,085,000 55,905,400 68,204,588 6,110,000 7,820,800 9,854,208 79,799,368 90,173,286 12,219,218 14,907,446 Revenue from capital construction Other revenue Total revenue 4,500,000 6,525,000 9,461,250 13,718,813 19,617,902 7,800,551 8,580,606 9,438,667 10,382,533 11,420,787 116,119,932 136,119,42 63,495,551 78,831,806 96,958,713 Diagram : Revenue and profit plan Table : Revenue, cost and profit plan No Indicator 2016 2017 2018 2019 2020 2021-2030 50,291,410 63,495,551 78,831,806 96,958,713 116,119,932 136,119,420 0 0 0 Net revenue from sales and service supply Revenue deductions Revenue from sales and service supply (=1-2) 50,291,410 63,495,551 78,831,806 96,958,713 116,119,932 136,119,420 Cost of goods sold 45,466,617 56,833,271 68,199,926 80,475,912 92,547,299 101,802,029 4.1 Direct raw materials 7,330,171 9,162,714 11,453,392 14,889,410 19,058,445 23,823,056 4.2 Direct labors 34,320,000 44,616,000 57,108,480 75,954,278 102,538,276 131,248,993 4.3 Depreciation of fixed assets 3,816,446 4,770,558 5,963,197 7,752,156 9,922,760 12,403,450 Gross profit from sales and service supply (=3-4) 4,824,793 6,662,280 10,631,881 16,482,801 23,572,633 34,317,391 Revenue from financial activities 6,413 8,337 10,838 14,089 18,316 23,811 Financial cost 0 720,000 1,440,000 2,740,000 4,040,000 Expense for sales and marketing 100 130 182 237 308 Expense for administrative management 4,328,811 5,107,997 5,874,197 6,755,326 7,768,625 8,933,919 9.1 Salary for managing personnel 3,402,000 4,014,360 4,616,514 5,308,991 6,105,340 7,021,141 9.2 Operating cost: Electricity, water, telephone, stationery… 300,000 354,000 407,100 468,165 538,390 619,148 9.3 Cost for training - staff development 300,000 354,000 407,100 468,165 538,390 619,148 9.3 Other expenses (spare for price increase and public relations) 326,811 385,637 443,483 510,005 586,506 674,481 10 Net profit from sales and service supply (=5+6-7-8-9) 502,395 1,562,520 4,048,392 8,301,382 13,082,088 21,366,976 11 Other income 0 0 0 12 Other cost 70,962 0 0 13 Other profit (=11-12) -70,962 0 0 14 Total profit before taxes (=10+13) 431,433 1,562,520 4,048,392 8,301,382 13,082,088 21,366,976 15 Current enterprise income tax 94,915 343,754 890,646 1,826,304 2,878,059 4,700,735 16 Deferred enterprise income tax 0 0 0 17 Profit after enterprise income tax (=14-15-16) 336,518 1,218,765 3,157,746 6,475,078 10,204,028 16,666,241 ROE (Return on equity) 0.91% 3.28% 6.70% 13.73% 16.42% 26.82% ROA (Return on assets) 0.71% 2.56% 5.88% 9.29% 10.78% 15.92% Capital plan Diagram : Capital plan Table : Capital mobilization plan 2016 1st capital mobilization with the interest of 12%/year Purchasing fixed assets Inceasing the Owners’ equity Purchasing fixed assets 2nd capital mobilization with the interest of 12%/year Purchasing fixed assets Inceasing the Owners’ equity Purchasing fixed assets 3rd capital mobilization with the interest of 13%/year Mobilizing capital for 2017 2018 2019 6,000,000 10,000,000 6,000,000 15,000,000 10,000,000 2020 business 4th capital mobilization with the interest of 13%/year Mobilizing capital for business 10,000,000 PART IMPLEMENTATION AND MONITORING 4.1 Implementation schedule Chairperson of the Management Board cum General Director will lead the implementation The roles of senior leaders are not only to build the internal unity and solidarity but also to ensure the roadmap to implement the plans The Vice Directors will support the General Director by taking care of distinct customer segments, for example business segment or family segment In the implementation of the plans, the coordination between 04 departments including Accounting and Finance Department, Organization and Administration Department, Technical Accounting Department, and Sale Department is significantly important There should be a consistent working mechanism for these departments in supplying the services The timeframe of 5-year plan will be divided into shorter periods (month/ quarter/ year) However, to successfully implement the above-mentioned development strategy, the plan for the 2016-2020 will be as follows: Table : Implementation schedule of Strategic plan for period of 2016 – 2020 No Tasks Year of completion 2016 Formulating and finalizing the assessment criteria set of service quality 2017  Building the ISO 9001: 2008 system and applying SOPs (standard operating procedures) for the operation of the wastewater treatment and drainage utilities Developing the administrative software system for operational management of water supply system and drainage: system management, quality management, assets management… Developing plan of training and capacity improvement for staffs  Restructuring of human resources in several departments, rearranging human resources by job positions  Finalizing the design and applying new procedure for performance management  Finalizing the design and applying new procedure for competency management and 2019  Perfecting the organizational structure of the company by re-organizing the wastewater treatment and drainage team and restructuring groups in the Sale Department 2018    2020 talent management Finalizing the design and applying C&B policy based on work performance  10 Developing the software of human resource management integrated with customer relation management  11 Developing the training plan for improving capacity of technique, system management, sales and customer service for staffs  In the short period of 2017 – 2018, target implementation plan is detailed in the table below: Table : Detail Work Schedule for period of 2017 – 2018 Objectives Results to be achieved Responsible person/Dept IV quarter, 2016 A clear, intensive, easy-to-control, easyto-evaluate criteria set of service quality assessment Organization and Administration Dept and team leaders IV quarter, 2016 A communication channel for feedback is disseminated and used Team leaders by area Task 3: Integrate work performance criteria into C&B policy I quarter, 2017 New salary structure considering the “completion of quality indicators” criterion Organization and Administration Dept Task 4: Organize training, share the meaning of the job for employees, raise good examples and reward for excellent employees Quarterly, starting from Q I in 2017 Participation of 100% workers More interest from employess on their job Organization and Administration Dept Q II in 2017 The sale teams are clearly divided by regions and customers Sale Dept Q I in 2017 New bonus policy Sale Dept Specific activities Task 1: Formulate and specify criteria set for evaluating service quality Disseminate information to employees and quality inspection teams Objective 1: Improving the quality of products – services which are being provided to existing customers; Objective 2: Expanding and further exploiting different customer groups in the City Task 2: Establish a communication channel to collect feedback from community on service quality Task 1: Re-organize the sale teams by region Task 2: Develop and apply policy on high bonus for high sales results (from new customers: agencies and enterprises) Time Task 3: Complete the set of sales tools, further design and apply marketing materials, services promotion Q I in 2017 Professional and sufficient sales tools Sale Dept Task 4: Conduct training on sales and market development skills for sales staff Q I in 2017 100% sales staffs are trained Sale Dept Q III in 2017 Sales and service delivery teams are established and put into operation Sale Dept Q II in 2017 Business profile is completed; The Company is known by City/district People’s Committees Sale Dept Q IV in 2017 In Q IV in 2017, there will be 300 households Sale Dept using the service Q I in 2017 VND billion is mobilized Vice Director; Accounting and Finance Development Q IV in 2017 Loan amounts of VND billion, interest rates below 13% Vice Director; Accounting and Finance Development Task 1: Establishing sales and service delivery team in new areas Objective 3: Expandind market into neighborhoods bordering Ninh Binh City Task 2: Complete the business profile, participate in the bidding, strengthen relationships with city/district People’s Committee Task 3: Apply marketing program: "use 1-month free service for new customers" Objective 4: Using financial leverage (increase loans) to serve business development Objective 5: Improving and upgrading technology for wastewater and solid waste treatment Task 1: Study and mobilize sponsorship packages to invest more in fixed assets, supplies and equipment for business development Task 2: Access loans from financial institutions, commercial banks serving business production Task 1: Develop policies that encourage the development and application of solutions and technical innovations in staff Q IV in 2016 5-10 initiatives are proposed General Director, Vice Director; Planning and Technical Dept Task 2: Study, approach and seek to receive the modern technology system for application in wastewater and solid waste treatment Q IV in 2017 Knowledge in modern technology Planning and Technical Dept Objective 6: Develop, enhance expertise of staffs Task 1: Survey and identify needs, formulate training plan and staff development plan Q IV in 2016 Staff development plan Vice Director; Organization and Administration Dept Task 2: Search for suitable courses to appoint staff in participate in or conduct training in the company to develop the staff expertise Q IV in 2016- Q IV in 2017 100% management staffs are trained 50% professional staff and employees are trained Vice Director; Organization and Administration Dept 4.2 Monitoring and Evaluation mechanism To implement strategic objectives on service quality improvement and staff capacity enhancement, it is very important to develop a tight monitoring mechanism The whole staffs in the Company should understand monitoring and evaluation responsibility that can be any one’s responsibility M&E responsibility needs to be decentralized by roles and concrete assignments of M&E Evaluation criteria system should be developed clearly to ensure transparence: - To service quality evaluation, criteria system is developed in Task of Objective (Quarter IV/2016); Monitoring and controlling service quality needs to be implemented as follows: Evaluated by implementer Evaluated by staffs of Departments Evaluated by Heads of Departments/Divisions Evaluated by Supervising Dept - With regard to the assessment of business development: The business indicator system should be sufficiently included indicators on revenue from sales, new customers, profit/customer or the profit/project… - With regard to the evaluation of support service (operation of the Administration- Organization Department and the Finance- Accounting Department): It is necessary to appreciate indicators on its transparence, relevance to regulations and service quality - The assessment of human resource needs to ensure to have a plan, support, training and transparent evaluation 4.3 Risk Management Market risk The consequences of the global economic recession in 2008 - 2009 had a huge impact leading to the slowdown of the growth of Vietnam's economy in particular and the world in general As a rule, these companies have difficulties in their market expansion, and other inputs, including Ninh Binh Urenco also has strongly influenced by the poor in economic growth, the decrease in public investment; the fluctuation in price of raw materials (electricity, water, fuel), all of which has also contributed to the strong influence on the business interest of the Company On the other hand, as a public enterprise, it is not easy for the Company to change the service fee according to the market To limit and minimize these risks, the Company should continuously identify external contracts to offset a partial loss of revenue of the Company Beside the general risks and specific risks in the business activities to enterprises, the Company, like other economic units, will also be affected if appearing irresistible risks such as natural disasters, epidemic , which will cause great losses on people and property of the Company in particular and the economy in general In addition, as a public service company providing service on environmental sanitation, drainage, wastewater collection and treatment and construction of public works, it heavily depends on external factors such as the awareness of the citizens- customers and weather Risk of technique The drainage technology has been accepted and used in many parts of the world, in both developed countries and poor ones, but it is still a new technology in Vietnam Septic tanks have a big impact on the operation of the drainage system and wastewater treatment plant It is able to appear the situation of septic tanks built incorrectly, not periodically sucked sludge resulting in the dcrease in working capacity of the tank, so that sludge spills into sewers, causing the block and destruction of the system To limit this risk, management program of septic latrines needs establishing and ensures the efficient operation Other potential risk of illegal connection to the system of some households makes the management and operation of the system have difficulties because of uncontrollable inputs and causing losses to the drainage fee Although technology of biological treatment fully with activated sludge is the modern treatment technology in the world; however, if the input water quality changes with excess margin, the output water quality will be affected Besides, in the operation process, the manipulation of technical workers can also be one of the causes affecting the output water quality ANNEXES Annex 1: Functions & Tasks of specialized Department/Division/Unit No Specialized Department/Division/Unit Planning and Technical Department Functions & Tasks Advising the company's leaders in directing the departments/divisions/units and the production teams to implement the business plan activities in the plan year (month, quarter, year) No of staff 05 Advising and supporting the company’s leaders in organizing the construction, and implementation of technical management plans; Advising the company's leaders in the field of effective project management Accounting and Finance Department Advising the Chairman of the Management Board cum Director of the company in the management of financial economics management under the current regulations Management and use of company funds (fixed capital, working capital under the approved budget and other legal funding sources) Responsible before the Chairman of the Management Board and state laws on financial operations of the company Organization and administration Department Advising the Chairman of the Management Board cum Director of the company of the organizational structure of the business production and staffing in line with the company's development, labor management to carry out the political tasks of the company and perform effective business production Managing staff and employees’ profiles/records, managing correspondence, processing recruitment procedures, policies for workers, being a member of the Council of emulation and reward or discipline of the Company Preparing professional training plan for staff Advising the company's leaders in directing the implementation of rules and regulations on the operation of the company to effectively manage the assets and staff of the company Sales Department Advising and supporting company’s leaders in construction, implementation of management plan, management of employees’ task package; Advising the company’s leaders and organizing the inspection and supervision, product acceptance, collecting service charge and the environmental fees and urban landscape protection Environment Team No.1 and Clean and collect the waste on city roads; Dredging street sewers; Managing, maintening and repairing sidewalks, signage and drainage systems Park team and Nursery garden team 93 roadways, Managing and exploiting types of services in the Thuy Son park as prescribed; 22 Managing the Monument to War Heroes and Martyrs; Planting and producing trees, flowers and ornamental plants; Caring and maintaining trees in the Van River west coast park Team for planting, caring and maintaining trees system Caring and maintaining the system of trees, flowers and ornamental trees on the roads and the road separations; 56 Planting of new planting trees following planned projects Electric lighting teams and Managing the operation and repairing the entire system of lights, decorations, traffic signals, electrical panels in the city; 24 Constructing and installing works according to plan Team for Parking - Pumping stations and Cemetery management Managing the operation of motor vehicles; Transporting waste, conducting transport services; Managing the operation of the pumping stations (Con Muoi, Ninh Tien and South City) Managing cemeteries (Nui Lo, Dong Nen) 10 Construction engineering team Processing and manufacturing engineering products; Installing and using engineering products; Constructing and repairing public utilities 11 Domestic garbage collection unit Collecting garbage in residential areas in the city Annex 2: The expected growth of urban scale in the 2015-2050 phase Time Urban population scale (people) Scale of urban construction land (ha) Rate of urbanization (%) 2015 299,500 5,092 64,2 2020 320,000 5,440 69,0 2030 580,000 9,280 84,0 2050 800,000 12,000 90,0 Source: in accordance with Decision No 796 / QD – PPC approving the Master Plan of urban system development of Ninh Binh province in 2030 with a vision to 2050 Annex 3: Detailed financial plan (attached excel file) [...]... urban services for household customers reaches around 5 billion by 2020 - Number of new customers - Revenue from public services from outside the city of Ninh Binh; - Revenue from new customers outside the city of Ninh Binh new customers outside Ninh Binh City reaches 10 billion in 2020; - Revenue from urban services for administrative units and businesses reaches 05 billion by 2020 - Revenue from urban... from the industry 1 Customer - The People Committee of Ninh Binh City - The big customers are – is the only customer using 5/9 services high in loyalty but low in of the Company The “order” method is actually the public service contracts negotiation advantage - The small customers are signed with the People Committee of quite difficult to exploit Ninh Binh City revenue is recognized based on the amount... People Committee of Ninh Binh City although there is some negotiation between 2 parties on the basis of provincial and city budget balance and the benefit of the company - The remaining 04 service groups have the potential to expand and develop according to market rules: o Administrative units (schools, hospitals, provincial office, ) and Business units (The board of managers in markets, restaurants... should focus on three strategic objectives as follows: - Increase the quality of service to ensure the maintenance and development of other customer segments in current market (Ninh Binh City); - Develop business and expand the market into nearby districts, towns and cities; - Receive the management and operation of new projects on waste water treatment and drainage in the city and neighboring areas... company's vision towards 2030 is to maintain its position as the main provider of environmental services in Ninh Binh province, and strive to become a standardized company (in terms of product package, finance, human resources, technology, marketing), robust enough to compete in the national market 3.2 5-year objectives from 2016 to 2020 and the basic targets With such a strategic vision, the objectives... areas: North West, the Red Ninh Binh River Delta and the North Central This province building and operating the water drainage system province is lying among three economic regions: Hanoi, the northern coast and central coast Terrain: flat terrain and flat slope from the Northern to the Southern region The terrain of the city has been constructed relatively flat River: Ninh Binh city is formed at the... 949 997 1,046 1,099 1,154 Number of offices, restaurants… units, 3.3.3 Technology and maintenance plan Direction: • Rainwater drainage: Ninh Binh city is divided into 6 drainage basins outlined in the drainage situation The feasibility project of the drainage in Ninh Binh city has been combined with irrigation to calculate the capacity of the pump stations Capacity of pumping stations of Bach Cu, Phuc... the households will also be important with an increase in demand 2 Competitors At present, Ninh Binh Environment and Urban The Services Joint Stock Company is the largest significant to challenge the company providing services and products company since there is a clear about environment in the province, some market division among the competitors to mention are: (i) Tam Diep organizations supplying public... environmental protection fees for the suppliers should take time The need to provide services relating environment and urban • services is still not much The competitiveness with other companies, both inside and outside the company PART 3 BUSINESS PLAN DURING 2016-2020 AND VISION TOWARDS 2030 3.1 Development Vision towards 2030 Through the above analysis, Ninh Binh environment and urban service joint stock... to the contract of public utilities and urban services providing which the company had signed with the Ninh Binh PPC previously With the current accounting system, the Cost of Goods Sold (COGS) of the company includes depreciation of fixed assets, cost of raw materials and direct labor costs for workers (staffs) It can be seen that, during the period 2013 – 2015, along with the average growth of 17% ... company as Ninh Binh Town Environment and Urban Services Company” (now it is Ninh Binh city) On 20/5/2010, Ninh Binh PPC issued Decision 486/QD-UB to rename the company as Ninh Binh City Environment... Ninh Binh Province On 14/5/1997, Ninh Binh PPC issued Decision 575/QD-UB to recognze Ninh Binh Town Urban Construction Services Company as a public utility enterprise In April 1999, Ninh Binh. .. by Ninh Binh Town People’s Committee On 22/8/1996, it was renamed as Ninh Binh Town Construction Company assigned by Ninh Binh Town People’s Committee according to Decision 1250/QD – UBND of Ninh