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 municipalities of Tešanj and Teslić, 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.

Every drop of water is precious

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.

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”.

For every drop to find its way to consumers

Sustainable Development Goals targeted by GoAL WaSH Project

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”

Status:

Completed

Project start date:

September 2008

Estimated end date:

December 2019

Focus area:

  • eradicate poverty in all its forms and dimensions
  • inclusive growth
  • Project office:

    UNDP in Bosnia and Herzegovina

    Implementing partner:

    United Nations Development Programme

    Full project information  

    Funding Support by

    Donor name

  • United Nations Development Pro
  • Government Of Bosnia And Herzegovina
  • Swedish International Development Cooperation (sida)
  • Undp As Administrative Agent For A Joint Programme Pass Through Arrangement
  • Coca Cola Company
  • 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

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