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Report on Executive summary of Haya Water Company Oman

Category: International Business Paper Type: Report Writing Reference: APA Words: 1850

The main objective of this report gives an analysis view of the financial position of the company and give a competitive view of the company according to the market situation. The report is also based on the financial information of the company during the past five years with the financial analysis and financial position of the company. There is also a discussion about

competitor’s position in the market. There is a section that describes the issues which are related to affect the company’s position in the current market. There is a portion of the study which describes the financial analysis of the company as relevant to the cost of total project in the past and current market. The study is related to the market analysis of Hayat Water Company and in the end, there is a conclusion and recommendation section about the company according to the market and competitor’s situation (S. Jaffar Abdul Khaliq, Ahmed, Al-Wardy, Al-Busaidi, & Choudri, 2017).

Introduction of Haya Water Company Oman

Haya Water is an Oman based wastewater company which was established in December 2002as a joint-stock company. The possession was wholly owned by the government of Oman. Haya water is also awarded by the government of Muscat as the best company to develop, design and implement the project of wastewater under the Royal decree to facilitate the Muscat. The basic purpose of haya water is to reuse wastewater from historical time. However, the project of reuse of the water is gaining importance before some decades who are increasing with the demand of population and daily need of the water which put a great impact on the natural water cycle of the region. There are several benefits to use these resources to save water for the next generation. The U.S. Environmental Protection Agency (EPA) refers to the term wastewater as, “using wastewater or reclaimed water from one application for another application”. In Oman, haya water is a government based company which are dealing in operating the plant which is engaging in the reusing of water (M. S. Baawain & Sana)

The basic purpose of a company is to make Oman a company with a high standard of health and cleanliness. This could be possible if there is a proper system of sewerage to overcome the disease in the country. The secondary purpose of the company is also to reduce carbon dioxide emissions in the water. Haya water seeks to get the benefits of planning about the area which executes the plan in the different areas of Muscat. The basic purpose of the Haya water is to get the goals set by the management to manage the wastewater to make Oman a healthy and green economy. The company had signed an agreement with the government for 30 years which will end in 2036. The services provided by the companies are sewage treatment plants (STP), pumping stations, bio-solid composting and yellow tanker services in Oman. The main strategy used by the company is treated effluent in past years. The research shows that there six possible options to make the effluents from wastewater through yellow tankers such as:

   Urban wastewater

   Agriculture reuse

   Groundwater resource

  Industrial reuse

  Power center

Ø  Moveable resources

There are approximately 653 employees are working in the haya water company. The company is working on different projects to get the ultimate success in the work. The company is working on the project of KPMG to project a plant as globally operated by the multinational company. The signing contract takes place at Bait Haya. The plan is estimated as the treatment of wastewater will be targeted as a yellow tanker with the initial capacity of 40,000 cubic meters per day with the estimated cost of OMR 47 million.  For this purpose, all yellow tankers are directed to use STP which will give a positive impact on the project. Besides this, there are products such as the manufacturing of Kala compost which is a natural resource to compiles international fertilizer. Other services include vacuum tanker service, sewer blockage service and central laboratory (M., Sana, & Al-Yahyai, 2012).

Key financial information of Haya Water Company Oman

The financial position of the company could be determined by checking the growth of the company as the number of properties is determined by the growth of the properties which is owned by the company for the last 5 years. The financial growth could be determined as:


The ultimate financial position shows that the company is growing at a rate that is determinable as it is growing fast. The properties which are owned by the haya water are growing at a higher rate.

 

Competitors analysis of Haya Water Company Oman

The condition of the company is based on the financial growth of current market analysis which shows the relative increase in the production and net revenue of the company. The competition was held by the haya water which was represented by the general directorate of Oman. The competition was between the different organizations which believe that this competition will be helpful for the improvement of the environmental situation of the country. As competitors view there is cost analysis of the Jordan and Tunisia which shows the compatibility in terms of tariff:

Tariff/Cost of the project

Jordan

(US$/CM)

Tunisia

(US$/CM)

TARIFF

0.0-0.09

0.014-0.08

Transfer cost, rent, and operational cost

Total cost with depreciation

0.04-0.012

0.10-0.21

o.09-0.14

.13-.25

Treatment cost

Operational cost

0.02-0.34

0.05-0.95

0.03-0.17

0.04-0.93


The operating and distribution cost of the Jordan and other competitors is stable in the market which gives competition to the haya water, but the cost is more likely to increase with the change in time and project of the new plan. Haya Water is a government based project which has a strong position in the market and has the power to compete with the competitors. The increasing cost of other companies is providing a basic competitive advantage to the haya water. The maximum internal costs contain the construction of a wastewater system as well as the operation and maintenance costs. The construction of new plans such as material and labor costs is equaled to73,300 (1 USD= 42.5 INR) and operation cost is INR 7725 per year. Internal advantages were estimated to be INR 60,000 per year due to the reduction in wastewater. The analysis shows that the advantages are exceeding the cost of the project which is a contribution in the plan of wastewater project by the government of India (A. Rivera, Al-Shaiily, Daag, & Al-Amri, 2012).

Projection of wastewater from the year 2101 to 2025 (m3 /day):

Years

2010

2015

2020

2025

Quantity of wastewater produced

64,920

152,298

226,334

257,344

 

The effluent is being generated by 11 different STPs located in al Ansab, Darsait, Shati Al Qurm, Al Mabellah, Al should, Al Amerat, Bawshar, Al Manuma, Quriyat, Madinat Al Sultan Qaboos and Jibaro. The wastewater of domestic and industrial is generated in Muscat is directly disposed into the sewage networks or gathered in individual tanks which are later discharged in the sewage network.

As concerned with the PESTEL analysis of the haya and other competitors are relates to the performance of the water industry. The PESTEL analysis is described as follows:

Political analysis: the political condition of any country affects the business condition of this country which is collected with the situation. Where the political condition is stable the business is most likely to groom and vice versa.

Environmental analysis: the environmental analysis relates to the business environment which occurs in the business market with the market forces.

Social analysis: the business should be engaged in the social responsibilities which are working for the welfare of society.

Technological analysis: business should use new and advance method of technology to overcome the cost and human effort which increase the efficiency of the business.

Environment analysis: the surrounding of the company and any business affects the performance of the company. The bottling companies are needed to take a review of the production of the company in an accumulated way.

Legal analysis: legal formalities are used to the welfare of the business and to fulfill the legal requirement of the business (S. Zekri, Al Harthi, Kotagama, & Bose, 2016).

Key issues faced by the company of Haya Water Company Oman

The CEO of the Haya water discussed the issues which are related to managing the wastewater in the recent addressed in the Wilayat of Masirah and explains the development of the project plan in Oman and Muscat. He explained the issue that wastewater is this project plays an important role in the infrastructure of the country but it requires a lot of finance to deal with that project which is totally based on welfare work and work as a non-profit making organization. The condition of the company is based on the financial growth of current market analysis which shows the relative increase in the production and net revenue of the company.

Another challenge is that the haya water is dealing with the projects which were governed by the ministry of municipal authority which was covered by the haya water and now focusing on the repair of the damaged sewage system. It is also an important issue to deal with the alternative goals which are protecting the groundwater and overcoming the use of high-cost water desalinated water which reduces the margin of the company. The issues faced by the haya water are mostly capital nature type which is not resolved in the short term, therefore, its projects are being in process for the long term.

One of the other challenges faced by the haya water is the technology used in the process to produce high quality of output especially in the Viable Helminth Ova parameter which is difficult to measure. As there are limited resources to use the technology in the reuse of water. Another issue is that advanced technology is high cost-oriented which is a big challenge to solve. There is also difficulty in finding the customers to utilize the water in new high quality which is required to maintain the compatible advantage of wastewater.

References of Haya Water Company Oman

A. Rivera, Al-Shaiily, M., Daag, A., & Al-Amri, M. (2012). DIVERSITY AND DIMENSIONS OF NEMATODE OVA: A TOOL IN WASTEWATER MANAGEMENT. Journal of Applied Sciences in Environmental Sanitation,, 7(1).

M. B., Sana, A., & Al-Yahyai, R. (2012). Sustainable and Beneficial Options for Reusing of “Haya Water” Treated Wastewater: Phase 1–Exploratory Study.

M. S. Baawain, & Sana, A. (n.d.). Feasibility of treated wastewater application for aquifer recharge to defy saline water intrusion.

S. Jaffar Abdul Khaliq, Ahmed, M., Al-Wardy, M., Al-Busaidi, A., & Choudri, B. S. (2017). Wastewater and sludge management and research in Oman: an overview. Journal of the Air & Waste Management Association, 67(3), 267-278.

S. Zekri, Al Harthi, S., Kotagama, H., & Bose, S. (2016). An estimate of the willingness to pay for treated wastewater for irrigation in Oman. Journal of Agricultural and Marine Sciences [JAMS],, 21, 57-64.

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