Visoko Water System Supply Project

The aim of the overall project was to expand the water supply system and repair the existing network in the city of Visoko. The expected outcome was to provide environmental and health benefits compared to the existing situation by improving the quality, reliability of drinking water supply and reducing water losses. The overall project included the reconstruction of the existing facilities and expansion of the water supply system to connect additional 3,000 households with total population estimated at 11.000.

The overall objectives of the assignment were to:

• Provide assistance to the Water Utility Company in developing an efficient and focused Financial and Operational Performance Improvement Programme (FOPIP) that cover technical operation of assets, monitoring of the quality of service and implementation of the Environmental and Social Action Plan (“ESAP”). Special focus was dedicated to the development of labour restructuring including preparation of detailed action plan towards full legal separation of water and wastewater operations from other activities and increasing labour productivity;
• Provide assistance to the Water Utility Company in developing and concluding a focused Public Service Contract (“PSC”) with the Municipality that includes clear technical and financial performance requirements for the Company and obligations on the Municipality in support of achieving such requirements including development of formulae for calculation of tariffs based on full cost recovery.

Type of Services provided:

• Assisted the Water Utility Company in developing procedures that are needed to achieve compliance with EBRD’s Performance Requirements (“PRs”)
• Developed a Climate Change Adaptation Plan in order to improve the resilience of the company to the ongoing climate changes
• Prepared an Action Plan with recommendations summarised in an action plan table with clear deadline for each action and where appropriate, provided an indication of related costs of implementation
• Established the standards for quality of services provided to residents, enterprises and commercial businesses and public institutions in the Municipality under a contractual relationship
• Defined obligations to manage and operate the water supply and wastewater collection system in an efficient manner
• Co-ordinated with environmental authorities with the aim of preventing drinking water pollution and monitoring pollution in recipient rivers where the untreated water is discharged into
• Identified the roles and responsibilities of the Municipality and Company in implementation of the strategy for target indicators set forth in the FOPIP
• Advised the Company on the most appropriate organisation structure, taking into account the required legal separation of the water and wastewater operation from other activities, based on best international experience for companies of this size and type
• Assisting the team of Water Utility Company experts in the development of appropriate accounting system that satisfied requirements for accounting in conformity with International Financial Reporting Standards ("IFRS")
• Developing a plan for improving all aspects of revenue administration including billing system, collection, administration of arrears, lowering the cost of revenue collection and administration

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