Establish Corporate Structure and Systems for Improved Corporate Governance. Management structure for delivering services weak; corporate governance systems absent Q4 (2008) P&DD/ TMAs NSUSC’s established under Companies Ordinance 1984; followed by subsequent USCs established prior to future financing requests Q4 (2008) TMAs Shareholders Agreement signed, including provisions for good corporate governance Q1 (2009) NSUSC/ TMAs/Sindh Service and Asset Management Agreements signed and Tripartite Financing Agreement(s) signed Q1 (2009) NSUCS/ P&DD Skills-based, independent Directors introduced to NSUSC Board Q4 (2008) - Q1 (2009) P&DD/ NSUSC Recruitment of key management from market on competitive basis, including Managing Director, Directors Operations, and Finance Q1 – Q2 (2009) NSUSC Business planning process introduced; NSUSC business plan approved by Board and initiated Q1-Q2 (2009) P&DD, LGD Ensure Taluka Municipal Officers, Taluka Officers Infrastructure, Regulation, Finance are in place, at adequate grade level, in SCIP participating TMAs Q1-Q2 (2009) P&DD, TMA Ensure TMA offices have computer and internet connectivity for communication with NSUSC and Sindh Q2-Q3 (2009) NSUSC Board Charter approved by NSUSC Board Q2-Q3 (2009) NSUSC Corporate Board, Management and Staff Code of Ethics introduced Q2 (2010) – Q1 (2011) P&DD/TMAs Confirm mid –Sindh Town Cluster for 3rd tranche financing; incorporate 2nd Urban services Corporation Strategy 2. Improve Financial Performance Concrete actions to improve financial management and performance Q1 –Q2 (2009) P&DD Establish Operational and Transition Support Funding mechanism; escrow account set up, financing agreement signed with NSUSC; funding mechanism operational Q1 –Q3 (2009) NSUSC, TMA Financial accounts separated out from TMAs Q2- Q4 (2009) NSUSC Introduce financial systems, including accounting (as per Companies Ordinance), updated customer database and improved billing and collection systems; improve and expand outsourcing of billing and collections Q2 - Q4 (2009) NSUSC, TMAs Update customer registration and regularize existing connections Q3 (2009) NSUSC Begin metering at source and of bulk supplies Q3 (2009) NSUSC Begin metering large commercial customers Q2 (2010) NSUSC Begin metering individual households; beginning with distribution network improvement zones Q1 (2010) TMAs Taluka Councils initiate first round of tariff increases, subject to service improvements
