GoAL WaSH Project presented results of implemented activities to its partners

Sep 19, 2017

Today UNDP’s GoAL WaSH "Regulatory Framework for Tariff Setting in Water Supply and Sewage Services in Bosnia and Herzegovina“ Project, funded by the Government of Sweden, presented the activities implemented so far as well as the Institutional Review of Water Supply  Sector in BiH prepared by the World Bank. The meeting was attended by the Project partners - representatives of relevant state and entity institutions, agencies, institutes, non-governmental sector, MEG Project and the World Bank.

In January 2017, the Project initiated testing of "Tariff setting methodology for water supply and sewerage services in BiH“ in partner municipalities Teslić and Tešanj along with the implementation of promotional activities aimed at building capacity and raising awareness of and knowledge about the Methodology. The campaign focused on municipal councilors and employees, water utilities' representatives, pupils in primary schools, and non-governmental organizations.  The Project also closely cooperates with the MEG Project, which provides support to 18 local self government units to enhance their performance in a number of areas, including water supply, sewerage and wastewater treatment services.

During the meeting, the Institutional Review of Water Supply Sector in BiH, prepared by the World Bank, was presented. In addition, several recommendations for improvements and modalities for regulatory framework on water supply services were presented.

Boško Kenjić, Head of Department of Water Resources at the Ministry of Foreign Trade and Economic Relations of BiH thanked the UNDP and the World Bank representatives for their engagement in obtaining relevant information, and providing arguments and modalities for improving water utility sector regulations in BiH. Mr. Kenjić pointed out, "Stronger efforts are necessary in the coming period to include all relevant institutions in order to find an optimal solution and to work on capacity building of local self government units to make them ready to implement water supply, sewerage and wastewater treatment improvement plans.“

In the discussion following the presentations, participants highlighted some of the challenges that this sector faces, such as the need to better regulate and improve the legislative framework, ensure water quality and regular supply of consumers, capacity building of public administration and understanding costs of water utilities by their management and local authorities. At the same time, several suggestions for future activities were made such as testing of methodology in other municipalities through pilot projects, the need to involve decision-makers at all government levels, organizing thematic sessions with decision-makers to improve this area and provide better quality of water supply services for consumers.

Alisa Grabus, Project Manager of the UNDP project "Regulatory Framework for Tariff Setting in Water Supply and Sewage Services in Bosnia and Herzegovina" thanked the participants for the constructive discussion and stated that “We now have a better understanding of the challenges the users are facing, as well as practical experiences in the application of the methodology in two municipalities that indicate, if the prices of services are properly defined, there is no need to increase costs for end users. UNDP will continue to provide support, in cooperation with its partners, to ensure quality services to citizens”.

During 2015, UNDP prepared an analysis of the possibility of setting up a regulatory framework for water supply and sewerage tariff structures. The Methodology defines the tariff calculation method that will allow recovery of all costs, including operating and investment maintenance costs, as well as capital investment costs, if so decided in the local self government unit.

The Project "Regulatory framework for tariff setting in water supply and sewage services in Bosnia and Herzegovina" will contribute to sustainable development of utility companies providing quality services of water supply, sewerage and wastewater treatment, by securing healthy living environment to the population, in parallel with enhancement of the social protection and inclusion system. Partners in implementation of the activities are the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina, the entity level Ministries of Water Management, Agriculture and Forestry, Associations of Municipalities and Cities of the Federation of BiH and Republika Srpska, Association of the Employers of Utility Companies in FBiH and Association "Water Utilities of RS".

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