Regulatory Framework for Tariff Setting in Water Supply and Sewerage Services in Bosnia and Herzegovina
the key long-term challenge in Bosnia and Herzegovina’s water sector is the lack of financial sustainability of water utilities. Capacities to appropriately manage financial planning and management are limited while the accounting practices neither comply with national legislation requirements nor international professional standards. Without management system, water utilities are incapable of investing in their equipment, maintenance of infrastructure, development, or charging the actual price for their services. If these institutional weaknesses are not addressed, the current problems with water delivery and quality control will persist.
Project will contribute to sustainable development of utility companies that are providing high quality water supply, wastewater collection and sanitation services to citizens while preserving a healthy environment and strengthening the social protection and inclusion system.

What we do?
The Project produced two documents, “Study on the best ways of administrative positioning of the regulatory body in the process of tariff setting of communal affairs of water supply and wastewater collection and treatment services” and “Tariff setting methodology for water supply and sewerage services in Bosnia and Herzegovina”. Currently, the methodology is being tested through the pilot projects in two local communities and their utility companies.
Project Activities
- Test the Methodology in water utilities of the cities/municipalities of Ljubuški, Tešanj, Teslić and Trebinje in order to improve financial and operational efficiency of the utility companies
- Raise awareness and strengthen capacities of key actors for adoption and implementation of the Methodology
- Raise awareness on the importance of incorporating the draft tariff setting methodology and regulatory body(ies) in the structure of BiH legislation governing the provision of utility services, with the aim of establishing a regulatory body at the appropriate administrative level, in order to implement the tariff methodology that will enable sustainable operating performance of the utilities on the long-term.
- The Project produced two documents, “Study on the best ways of administrative positioning of the regulatory body in the process of tariff setting of communal affairs of water supply and wastewater collection and treatment services” and “Tariff setting methodology for water supply and sewerage services in Bosnia and Herzegovina”.
Let's use #water rationally
What have we accomplished so far?
- Methodology presented to mayors and municipal councilors within the General Assembly’s of the Association of Cities and Municipalities of Federation of BiH and the Association of Cities and Municipalities of Republika Srpska
- Thematic workshops organized for 50 representatives of civil society organizations in Banja Luka, Sarajevo and Tuzla
- Over 200 pupils and teachers visited water utility companies in Banja Luka, Bosanski Petrovac, Istočnu Ilidžu and Neum
- Consultative meeting with the members of the Project Board and government institutions regarding “Tariff setting methodology for water supply and sewerage services in Bosnia and Herzegovina” was held.
- Project activities presented at the RENEXPO BiH conference
- World Environment Day and World Water Day marked
- Educational materials developed for: municipal councilors „Guidelines for councilors: When considering request for changes in tariff of water supply, sewerage and wastewater treatment“, citizens „ How does water get to your faucet?“, pupils „Advices how to reduce water usage”
- The Methodology is integrated in the Draft law on modifications and amendments of the Law on Water of Federation of BiH from 2017. For the adoption and application of the Methodology it is necessary that the Federal Ministry of Agriculture, Water-Management and Forestry and Federal Ministry of Environment and Tourism adopt a Decree on methodology for defining lowest tariffs for water services.
Every drop of water is precious
For every drop to find its way to consumers
Status:
Ongoing
Start date:
2013
Estimated end date:
2019
Focus Area:
Energy and Environment
Donor:
Stockholm International Water Institute - SIWI
The Water Governance Facility (WGF)
Partners:
Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina, Entity level Ministries of Water Management, Agriculture and Forestry Associations of Municipalities and Cities of the Federation BiH and Republika Srpska Association of the Employers of Utility Companies in FBiH, Association “Water Utilities of RS”
For more info check www.goalwaters.ba

Download the Report
Status:
Completed
Project start date:
September 2008
Estimated end date:
December 2019
Focus area:
Project office:
UNDP in Bosnia and Herzegovina
Implementing partner:
United Nations Development Programme
Funding Support by
Donor name
Amount contributed
$1,918,303
Delivery in previous fiscal year
2019 $11,600
2018 $34,060
2017 $81,517
2016 $37,035
2015 $51,736
2014 $114,318
2013 $323,672
2012 $926,816