Economics of pure water production and marketing Alexandria Drinking Water Company | ||
| Alexandria Science Exchange Journal | ||
| Article 12, Volume 44, Issue 1, March 2023, Pages 45-57 PDF (316.98 K) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/asejaiqjsae.2023.284649 | ||
| Authors | ||
| Elsayed Mahmoud Elsharkawy* ; Abd Elnaby Basiony Abid* ; Yasmin Salah Abd Elrazek* ; Islam B.B. Elmadany* | ||
| Department of Agricultural Economics - Faculty of Agriculture - Alexandria University | ||
| Abstract | ||
| The Alexandria Drinking Water Company is the company responsible for providing the necessary quantities for all purposes in Alexandria Governorate. It has become necessary to increase the produced amount of pure water on the one hand, and to increase the financial and economic efficiency of the company. Since 2015/2016, consumers have felt an increase in the monthly water bill at all economic and social levels. This phenomenon is considered an economic and social problem at the same time and at the national level. Therefore, it is a phenomenon that deserves study to identify its causes and propose broad lines for a production policy that achieves increased production and improves both financial and economic efficiency. And to reach research results based on implementable recommendations that must be adopted by the company's management in order to increase the rate of its water production to a large extent. The study resulted in a number of results and recommendations that the management of the company should reconcile in order to implement them practically and realistically, namely: 1- The need to increase the value of the capital assets of the company, to increase its ability to expand and develop, which helps it to increase production and profits. 2- The policy of hiring new workers every year is not consistent with the company's production policy, as there is a clear imbalance in the structure of employment and wages, and that these new workers are just disguised unemployment. 3- The company's ability to increase the quantity of production must be increased because its rate of increase does not exceed 0.6% annually, as it is a low rate and does not agree with the increasing annual consumption needs. 4- The increase in net profit value at a relatively large rate of about (22.8%). It is due to the company's tendency to invest in other activities other than its main activity, which is the production of pure water. Therefore, the company resorted to establishing sewing workshops, carpentry workshops, and managing the purification of tanks, in order to compensate for the shortfall in operating profits resulting from the sale of water, and also due to the limited quantity produced, high production costs, and increased waste. in the produced water And the relative stagnation in the price per unit of water sold. And since pure water is part of the subsidy system, the price per unit of water cannot be increased, and therefore the company resorts to increasing the price indirectly by preparing consideration of the value of the consumption segment so that the new segment, i.e. the modified one, becomes narrow and with the same previous value. 5- That there is an imbalance in the value of the wage that the worker receives in relation to his productivity in the company. This case confirms that this continuous increase in both employment and wages, which is economically unjustified, will harm the economics of the company's production of pure water, unless there is a rational policy for appointment and wages in light of the actual production capacity of the company, through which employment and wages can be restructured. To correct the apparent imbalance in the installation of this uneconomical operating structure 6- The company under study is in dire need, or even inevitable, to strive seriously and make the officials aware of it towards increasing the capacity of the purification plants, improving production technology, and gradually changing the pure water distribution network, which the company produces to meet the consumers’ needs for this type of water, which is constantly increasing due to the population increase. and urban expansion. 7- Carrying out serious economic feasibility studies on seawater and well water desalination projects to increase the produced amount of pure water to reduce the burden of increasing the production of pure water in water purification companies in all governorates of Egypt. | ||
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