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WATER UTILITY REFORM PLAN. Utility company owns the assets Municipality owns the utility company Water supply and waste water treatment services-commercial activity Full cost recovery based on the tariff structure Regulatory framework related to natural monopoly - PowerPoint PPT Presentation
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Ministarstvo turizma i zaštite životne sredine Crne Gore
WATER UTILITY REFORM PLAN
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Ministarstvo turizma i zaštite životne sredine Crne Gore
Utility company owns the assets Municipality owns the utility company Water supply and waste water treatment services-
commercial activity Full cost recovery based on the tariff structure Regulatory framework related to natural monopoly Government of Montenegro to facilitate capital investments Government of Montenegro to promote the regionalization
of services
PRINCIPLES OF THE SECTOR POLICIES
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Ministarstvo turizma i zaštite životne sredine Crne Gore
ELEMENTS OF THE REFORM Decentralization and voluntary regionalization
Corporative management (independent Board, independent audit)
Commercialization (utilities-legal entities, commercial behavior)
Regulation of natural monopoly (establishing of the regulator) Capital financing (Government to facilitate the access to capital; local governance and
utilities to increase ability for taking and returning the loans)
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Ministarstvo turizma i zaštite životne sredine Crne Gore
THE LAW ON WATER SUPPLY AND THE LAW ON WATER SUPPLY AND WASTE WATER TREATMENT WASTE WATER TREATMENT
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Ministarstvo turizma i zaštite životne sredine Crne Gore
PRINCIPLES
• Quality• Quantity• Continuity• Sustainability and environmental protection • Corporative independence and commercial behavior• Transparency• Protection of the public interest
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Ministarstvo turizma i zaštite životne sredine Crne Gore
UTILITY-ESTABLISHING
UTILITY FOR ONE MUNICIPALITY –LIMITED LIABILITY COMPANY
UTILITY FOR TWO OR MORE MUNICIPALITIES- LIMITED LIABILITY COMPANY/SHARE HOLDERS’ COMPANY
FOUNDER- MUNICIPALITY(IES)
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Ministarstvo turizma i zaštite životne sredine Crne Gore
UTILITY– OWNERSHIP
• UTILITY IS THE OWENRSHIP OF MUNICIPALITY(IES) • ASSETS ARE THE OWNERSHIP OF THE UTILITY• UTILITY CANNOT TRANSFER THE ASSETS WITHOUT
APPROVAL OF THE MUNICIPALITY
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Ministarstvo turizma i zaštite životne sredine Crne Gore
UTILITY– FUNCTIONS
• PROVIDING OF THE SERVICES (DIRECTLY OR INDIRECTLY)• ESTABLISHING THE PROCEDURES RELATED TO SERVICE
DELIVERY• MAINTENANCE OF THE SYSTEM • ALWAYS RESPONSIBLE TO MUNICIPALITY AND TO CITIZENS
(PROTECTING OF THE PUBLIC INTEREST)
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Ministarstvo turizma i zaštite životne sredine Crne Gore
UTILITY– STRUCTURE
BOARD OF DIRECTORS
DIRECTOR
STAFF
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Ministarstvo turizma i zaštite životne sredine Crne Gore
UTILITY-BOARD
NOMINATION-THE COUNCIL FOR THE PROTECTION AND DEVELOPMENT OF THE LOCAL GOVERNANCE
APPOINTING- MUNICIPAL ASSEMBLY
KEY TASKS:
- DEFINES THE POLICIES OF THE COMPANY- APPOINT THE DIRECTOR- DEFINES THE NUMBER OF THE STAFF- DECIDES ON ENGAGING THE OTHER COMPANY TO PROVIDE SERVICES
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Ministarstvo turizma i zaštite životne sredine Crne Gore
CONTRACTSCONTRACT ON WATER SUPPLY (MUNICIPALITY-UTILITY)
CONTRACT ON SERVICE DELIVERY (UTILITY-CUSTOMERS)
CONTRACT ON PROVIDING THE SERVICES (UTILITY-OTHER COMPANY)
CONTRACT WITH DIRECTOR (UTILITY-DIRECTOR)
CONTRACT ON ESTABLISHING THE UTILITY BY TWO OR MORE MUNICIPALITIES
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Ministarstvo turizma i zaštite životne sredine Crne Gore
NATIONAL REGULATOR
TO DEAL WITH NATURAL MONOPOLY CHARACTERISTIC FOR THIS SECTOR
TO PROTECT PUBLIC INTEREST
THE JURISDICTION MAY BE EXTENDED TO OTHER COMMUNAL SERVICES
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Ministarstvo turizma i zaštite životne sredine Crne Gore
FINANCING-FULL COST RECOVERY
• COMMERCIAL BEHAVIOR AND FINANCIAL SUSTAINABILITY • FULL COST RECOVERY• FINANCING THROUGH GRANTS AND LOANS • FINANCING THROUGH REVOLVING FUND• FINANCING TO BE FACILITATED BY THE GOVERNMENT
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Ministarstvo turizma i zaštite životne sredine Crne Gore
REVOLVING FUND
SUSTAINABLE AND STRONG FINANCIAL MECHANISM
INCREASING THE POSSIBILITIES TO ACCESS TO FUNDS
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Ministarstvo turizma i zaštite životne sredine Crne Gore
REVOLVING FUND-ESTABLISHING
REVOLVING FUND FOR ENVIRONEMENTAL PROTECTION
WATER SUPPLY AND WASTE WATER TREATMENT SERVICES INCLUDED
TO BE ESTABLISHED BY THE LAW
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Ministarstvo turizma i zaštite životne sredine Crne Gore
REVOLVING FUND-REVENUES
GOVERNMENTAL SUBVENTIONS
FROM INTERNATIONAL ORGANIZATIONS
THROUGH ACTIVITIES OF THE FUND
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Ministarstvo turizma i zaštite životne sredine Crne Gore
THANKS