During 2013 and 2014, in cooperation with the state, entity, cantonal and local authorities, UNDP prepared an analysis of the possibility for establishing a regulatory framework for tariff setting for water supply and sewage services. The main objective was to develop draft tariff setting methodology for water supply and sewage services in Bosnia and Herzegovina. The methodology defines such tariffs so as to enable recovery of all costs, including operating and investment maintenance costs, as well as capital investments costs, if so decided. This methodology also includes detailed guidelines for developing a business plan containing the selected key performance indicators as well as instructions for their calculating. Business plan includes detailed plans for improving financial and operating performance, while the methodology also provides guidelines for this purpose. Key performance indicators selected in one business period have to be projected for the entire planning period, as well as values achieved in the previous period compared with the earlier projected ones, and clearly justified why these values are not the same if there is a difference between them. At the same time, the proposed draft methodology does not require modifications of the respective legally regulated competencies.

Download - Tariff setting methodology for water supply and sewerage services in Bosnia and Herzegovina (PDF - 1 Mb)

In late 2013, the UNDP launched a project with the aim of establishing the regulatory framework for tariff setting for water supply and sewage in B&H. The regulatory framework includes the enactment of methodology for tariff setting for services and the establishment of the Regulatory Body which, during the process of service tariff setting approval, would give an expert opinion to local self-governance units relative to the harmonization of proposed tariffs with the methodology for tariff setting for services and with the relevant communal affairs laws provision. The document titled Regulatory Framework in the process of tariff setting of water supply and wastewater collection and treatment services was developed in early 2014. The objective of this document was to determine principles and guidelines for legislative and institutional activities relative to the establishment of regulatory framework in the process of tariff setting of water supply and sewage in Bosnia and Herzegovina. As part of this document, an analysis of the current situation was made, with a special emphasis on the existing solutions for the issues of tariff setting and approval of water supply and sewage services in Bosnia and Herzegovina (Republika Srpska, Cantons in the Federation, the Brčko District).An analysis was made of the legislative and institutional framework, as well as of the current practice in tariff setting and approval in Bosnia and Herzegovina. The document concludes with guidelines, principles and proposals for the establishment of regulatory framework including the analysis of possible options of administrative positioning of the Regulatory Body in the approval process of tariff for services.

Download - Study on the best administrative positioning of the regulatory body in the process of tariff setting of communal affairs of water supply and wastewater collection and treatment services (PDF - 938 Kb)