Tariff in Water and Sanitation Services in Bosnia and Herzegovina

Jan 29, 2014

There is a consensus in BiH that existing regulatory framework for water supply and wastewater services does not provide sufficient self-sustainability of these services. The majority of water utility companies claim that the approved price of these services does not ensure recovery of all corresponding costs; it also results in a deterioration of the network condition and a reduction of the service quality.  

It has been known that the EU water policy in this sector is such that it is necessary to establish actual water service prices providing full cost recovery. In addition, there is a common consensus within the EU that the EU water policy will produce efficient and effective use of water resources for all member states due to the introduction of economical water prices.

The UNDP project “GoAL WaSH Regulatory Water Framework” has an objective to prepare a scenario that will enable establishment of regulatory framework for water and sanitation tariff structures. During 2013 number of meetings were organised with most important institutions and individuals in order to asses and analyze current situation, and based on findings to propose different scenarios.

Second consultative stakeholders meeting was held on 29th January 2014 in UN Building in Sarajevo. Aim of this meeting was to discuss possible scenarios and solutions to create regulatory framework. UNDP consultants have prepared and presented analyses of current status in the sector and presented scenarios for regulatory framework. Discussions that followed were very open and useful and it was agreed that prepared material is extremely useful and that UNDP should continue to work on this issues. Also it is agreed to prepare methodology for setting water and sanitation tariffs as well to prepare in detail analyses of two scenarios for regulatory framework.