DANUBE WATER UTILITY ASSOCIATIONS, OCTOBER 29 DANUBE WATER PROGRAM

WHERE WE ARE AND DESIGNING A

2ND PHASEDANUBE WATER UTILITY ASSOCIATIONS, OCTOBER 29

DANUBE WATER PROGRAM

DANUBE WATER PROGRAM 2ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA

STRUCTURE

DWP now Structure

Results

Activities Analytical and Advisory

Knowledge Sharing

Capacity Building

Competitive Grants

Key Questions for a Second Phase


DWP NOW


DWP NOWSTRUCTURE


THE DANUBE WATER PROGRAM

TA program financed by Austria (4.5M €) and others (2.1 M €)

Supports WSS policy and utility reforms

Implemented jointly by the World Bank and IAWD

Started 18 months ago

www.danube-water-program.org

http://www.danube-water-program.org/


CURRENT STRUCTURE

Component 1 - Provision of Policy and Regulatory Support to National Level Authorities

Bank executed

2.1 M USD

Focused on Ministries and regulatory agencies

Component 2 - Capacity Building for Water Supply and Wastewater Utilities

IAWD executed

3.9M USD

Focused on utilities and waterworks associations

In practice joint implementation team on almost everything, with the bank leading AAA , IAWD leading capacity-building and knowledge sharing done jointly


PROGRAM ACTIVITIES


A Analytical and advisory policy work

• State of the sector study

• Review of aggregation experience of water and wastewater utilities

• Access and performance of WSS sector

• Social impact analysis of tariff reform in the WSS sector

C

Capacity development

• WSS association strengthening and support

• Pillar I: Sector governance and structure

• Regional support for WSS sector policies and governance

• Regional EU accession cross-support in water sector

• Pillar II: Regulation, tariffs, and subsidies

• Regional support for WSS sector regulation

• Pillar III: Benchmarking

• Regional performance indicators system initiative (DANUBIS.org)

• Benchmarking for utility improvement (EBC/Danube)• Pillar IV: Asset

management and investment

• Regional results-based asset management program for interested utilities

• Pillar V: Service efficiency improvement

• Regional results-based energy efficiency capacity-building program

• Regional results-based commercial efficiency capacity-building program

S Knowledge-sharingplatform

• Annual Danube water conference

• Participation in key regional events

• Development of communication platform

• Outreach to strategic partners

REGIONAL ACTIVITIES


NATIONAL ACTIVITIESGeographic

focusAnalytical and advisory

activitiesBenchmarking

activitiesCompetitive grant

activities

Sub-regional activities

• Support for regional EBC/Danube hub for Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, and Serbia

• Support for regional EBC/Danube hub for Albania and Kosovo

• Support for regional EBC/Danube hub for Moldova and Romania

• Strengthening the capacity of water utilities in Bosnia and Herzegovina, Montenegro, and Serbia through benchmarking

Albania

• Support for the WSS sector • Support for benchmarking activities • Framework and business model for a Western Balkans Training Center

• Training course for business planning for water utility associations

Bosnia and Herzegovina

• Support for benchmarking activities • Editing of the technical rules and guildines of the DVGW (and translation into Bosnian language

• A geographic information system for the WSS network for efficiency improvement in East Sarajevo

Bulgaria • Utility benchmarking

Croatia • Support for Croatia’s utility aggregation process• Support for sector regulation

• Support for benchmarking activities •

Kosovo • Review of the policy framework for public-private partnerships

• Support for benchmarking activities • Development of a young professionals network

FYR Macedonia

• Coordination of benchmarking and policy support activities

• Capacity development for utilities in the areas of regulation, efficiency, and quality

• Reduction of non-revenue water in public utilities commissions

Moldova • Retraining of members of the National Association of Water Utilities on operation of WSS systems

Montenegro • Support for benchmarking activities •

Romania • • Strengthening the capacity of the Water Training Center and water utilities

Serbia

• Support for EU accession process in the WSS sector

• Support for benchmarking activities • Performance improvement of the water utilities in South Serbia

• Translation of the DVGW technical rules for training of trainers

Ukraine• Review of national water strategy’s alignment with

EU directives• Support for regulatory capacity building

• Support for a national EBC/Danube hub for Ukraine

• Improvement of the national benchmarking system in the WSS sector


DWP NOWRESULTS


RESULTS FRAMEWORK

PDO LEVEL RESULTS INDICATORSBase-line

Cumulative Target Values Projections based on

WP 201

2201

3201

4201

5

1: target countries in which regulatory and policy recommendations have been discussed by decision makers.

0Planned 0 8 Challenging

to achieveActual 0 0 2: Operational Performance Improvement Action Plans or equivalent drafted by participating utilities.

0Planned 0 15 Expect to

exceedActual 0 0 3: Participating countries that have implemented and are using a sector information system to track utility performance.

0Planned 0 6 Expected to

achieveActual 0 1 4: Participating utilities that have defined and undergone at least one cycle of efficiency improvements monitored in the sector information system.


achieveActual 0 0

INTERMEDIATE RESULTS

Component One: Developed regulatory and policy instruments for improved country framework conditions.

1: Sector regulation reviews conducted. 0Planned 0 11 Expected to

achieveActual 0 0 2: Sector policy reviews (including identification of opportunities for Private Sector Participation) carried out.


achieveActual 0 0

3: Energy audits conducted for participating utilities. 0Planned 0 15 Expected to

achieveActual 0 0 4: Participating utilities reporting performance data to the sector information system.


exceedActual 1 3 Component Two: Increased institutional capacity in participating utilities.1: Policy makers, higher-level technical and managerial staff that benefited from cross-country capacity building activities.

0Planned 0 45 Achieved

and exceededActual 85 150

2: Utilities that have prepared business plans. 0Planned 15 Expected to

achieveActual 0 0


ACTIVITIES


ACTIVITIESANALYTICAL AND ADVISORY ACTIVITIES


AAA – STATE OF SECTOR REVIEW

Regional Report

16 Country Notes

Context

Organization

Financing

Coverage

Performance

Challenges

References

0%

20%

40%

60%

80%

100%

Water Sewerage WW treatment

Croatia Danube Region Top 10%

Access to services, average and lowest quintile1 Zagreb Water-works18%

83 Multi-city

companies62%

54 Municipal companies

5%Self

provision15%

Financing Spending -

100

200

300

400

500

600

75% Tariffs(local)

12% Tariffs(national)

10% Taxes(national)

3% Transfers

76% O&M

24% Investment

M E

uros

(20

12)


AAA - OTHER REGIONAL ACTIVITIES

Affordability of services

And impact of tariff reforms…

Impact of regionalization

Hungary, Kosovo, Romania

Water Utility Performance Index

10 dimensions (coverage, service quality, efficiency, financials)

Aggregated index (0-100) measuring closeness to good practices


AAA - COUNTRY-LEVEL WORK

Sector Reform support (Croatia)

Cost Recovery Compliance (Serbia)

PBCs for NRW (Kosovo)

Sector Financing (Albania)

Sector Strategy (Ukraine)


ACTIVITIESKNOWLEDGE SHARING


2014 DANUBE WATER CONFERENCE

140 participants, 20 countries, three days, 20 sessions, 30 presentations

An “excellent event, well organized, with very interesting and thought-provoking presentations—one of the rare conferences where you have a chance to hear something new, from really relevant people.”


An online repository of resources for and about water and sanitation utilities in the Danube region

Based on WB’s IB-Net platform and data from national institutions in each country

Data on 250+ utilities from 14 countries over 15 years, plus recent news, events, research etc.

200 users from 50 countries in 400+ sessions


OTHER RESOURCES

Website

100+ visits a day

Information and materials from program activities

Brochure

Fresh off the press

Newsletter

Three times a year


ACTIVITIESCAPACITY BUILDING


CAPACITY BUILDING

About 70+ utilities With national partners

Training fee

8 Regulators

Policy makers

Asset Management

1 hub 18 utilities

4 countries

Mid-way

Energy Efficiency 3 hubs 21 utilities

6 countries

Mid-way

Utility benchmarking

4 hubs 27 utilities

8 countries

Launched

Commercial Practices

3-4 hubs

Pending Pending Starting


ENERGY EFFICIENCY PROGRAM

33 utilities from 6 countries participating and paying for Program

3 day Training held in Sofia, Bulgaria and Training Materials Prepared

Energy Efficiency Plans in Preparation

Funding for Actions sought


UTILITY BENCHMARKING - EBC

Support utilities in learning from each other’s best practices and international benchmarks

Program Managed by European Benchmarking Foundation on behalf of DWP (for Danube region) targeting 40 Utilities


ORGANIZATION AND METHOD

Regional benchmarking programmes with local hubs supported by EBC for:

Bosnia-Hercegovina, Croatia, Macedonia, Montenegro, Serbia

Albania, Kosovo

Bulgaria

(Ukraine)

Standardised methodology & room for local customisation

Discussing draft results and understanding PI’s

Annual Meeting opportunities to exchange results / good practices between different benchmarking networks


INDIVIDUAL COMPANY REPORTS

“dashboard” presentation of results and detailed comparisons for each utility

to check data & identify performance gaps


ASSET MANAGEMENT

A Knowledge Hub (Belgrade Waterworks) to Improve Asset Management

18 Utilities in four countries in the region – Bosnia and Herzegovina, Serbia, FYR Macedonia and Montenegro

Main objectives:

Sustainability of a reliable network asset register

Provision of both operational and management reports

Output to be used in conservation and infrastructure planning (by performing network optimisation and rehabilitation planning)


COMMERCIAL EFFICIENCY

Training and Capacity Building to Support Business Planning and Commercial Efficiency of Utilities

Consultant Selected – Valu Add Consortium

Targeting 5 countries (Ukraine, Moldova, Macedonia, Kosovo and Montenegro)

Forty Utilities – Development of Business Plans – 15 utilities implementing Business Plans

Timeline October 2014 to October 2015


REGULATORY TRAINING

Theory and Practice Partnership with recognized institutions (PURC,

Universities, REKK)

Practitioners (participants and beyond)

Focussed on specific issues Good practices in public utility regulation

Regulatory Benchmarking

Florence (Nov. 2013) / TBD (2015)


ACTIVITIESCOMPETITIVE GRANTS


COMPETITIVE GRANTS

Under IAWD’s responsibility

71 application, 14 recipients

700,000 € distributed

Average size 50K €

Most activities on-going

Examples:

Technical training and education for utilities staff in Moldova

Benchmarking for utilities in Bulgaria

Translation and use of DVGW good practice guidelines in Serbia and Bosnia and Herzegovina

Development of a non-revenue water management strategy for a utility in FYR Macedonia

Etc…


FULL LIST

Improvement of National Benchmarking System in Ukraine – National Commission for Public Utilities Regulation

Training of Managers, Engineers and Members of AMAC – Moldova National Association of WSS Utilities (AMAC)

Strengthening the Water Training Centre and Water Utilities to Boost Operation Practices - Water Training Centre – FCFPPDA (ARA) (Romania)

Benchmarking in the Bulgarian Water Sector – Bulgarian Water Association

Improvement of Water Management Through Business Performance and Forming Association – PUC Naissum Nis (Serbia)

UTVSI DVGW Technical Rules for Drinking Water Supply – Assoc. for Water Technology and Sanitary Engineers (Serbia)

Editing Technical Rules for Drinking Water and Wastewater in Bosnian Language – VIK Sarejevo (BiH)

Development of GIS for Water and Sewage Network of East Sarajevo – UC Waterworks East Sarejevo (BiH)

Capacity Development for Improvement of Performance of Water Utilities: Regulation, Efficiency and Quality – Macedonian Water Utility Association (ADKOM)

Reduction of NRW – PUC Vodovod – Kumanovo (FRY Macedonia)

Development of Young Professionals Network – SHUKOS (Kosovo)

Developing a Framework and Business Model for a Western Balkans Training Centre – SHUKALB (Albania – Western Balkans)

Development of a Training Course for Business Planning for Water Utility Associations – SHUKALB (Albania – DWP Region)

Strengthening the Capacity of Water Utilities in the Region with Benchmarking of Key Performance Indicators – P.E. Vodovod Bistrica Biljelo Polje (Montenegro, BiH, Serbia)


LOOKING FORWARDWHAT ARE THE KEY QUESTIONS?


LONG TERM VISION

Vision

Establish durable network of water services professionals

Consolidate and maintain knowledge on State of Sector

Develop self-financed capacity-building curriculum

Same overall structure and implementation arrangements

Stronger focus on establishing sustainable mechanisms

Limited participation from Outside Danube region

6M € incl. co-financing

Three-year extension


MAIN QUESTIONS

What is the long-term role of IAWD and Waterworks associations?

How to move from analytical work to sector reform?

What areas of focus for capacity-building?

How to formalize capacity-building curriculum?

How to achieve Sustainable Financing?

THANK YOU

www.danube-water-program.org

David Michaud / Philip Weller

Danube Water Program Team

http://www.danube-water-program.org/

Documents

DANUBE WATER UTILITY ASSOCIATIONS, OCTOBER 29 DANUBE WATER PROGRAM