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WATER UTILITY REFORM PLAN

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

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WATER UTILITY REFORM PLAN

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  1. WATER UTILITY REFORM PLAN

  2. 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

  3. 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) ELEMENTS OF THE REFORM

  4. THE LAW ON WATER SUPPLY AND WASTE WATER TREATMENT

  5. Quality Quantity Continuity Sustainability and environmental protection Corporative independence and commercial behavior Transparency Protection of the public interest PRINCIPLES

  6. UTILITY FOR ONE MUNICIPALITY –LIMITED LIABILITY COMPANY UTILITY FOR TWO OR MORE MUNICIPALITIES- LIMITED LIABILITY COMPANY/SHARE HOLDERS’ COMPANY FOUNDER- MUNICIPALITY(IES) UTILITY-ESTABLISHING

  7. UTILITY IS THE OWENRSHIP OF MUNICIPALITY(IES) ASSETS ARE THE OWNERSHIP OF THE UTILITY UTILITY CANNOT TRANSFER THE ASSETS WITHOUT APPROVAL OF THE MUNICIPALITY UTILITY– OWNERSHIP

  8. 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) UTILITY– FUNCTIONS

  9. BOARD OF DIRECTORS DIRECTOR STAFF UTILITY– STRUCTURE

  10. 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

  11. CONTRACTS CONTRACT 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

  12. NATIONAL REGULATOR TO DEAL WITH NATURAL MONOPOLY CHARACTERISTIC FOR THIS SECTOR TO PROTECT PUBLIC INTEREST THE JURISDICTION MAY BE EXTENDED TO OTHER COMMUNAL SERVICES

  13. COMMERCIAL BEHAVIOR AND FINANCIAL SUSTAINABILITY FULL COST RECOVERY FINANCING THROUGH GRANTS AND LOANS FINANCING THROUGH REVOLVING FUND FINANCING TO BE FACILITATED BY THE GOVERNMENT FINANCING-FULL COST RECOVERY

  14. REVOLVING FUND SUSTAINABLE AND STRONG FINANCIAL MECHANISM INCREASING THE POSSIBILITIES TO ACCESS TO FUNDS

  15. REVOLVING FUND-ESTABLISHING REVOLVING FUND FOR ENVIRONEMENTAL PROTECTION WATER SUPPLY AND WASTE WATER TREATMENT SERVICES INCLUDED TO BE ESTABLISHED BY THE LAW

  16. REVOLVING FUND-REVENUES GOVERNMENTAL SUBVENTIONS FROM INTERNATIONAL ORGANIZATIONS THROUGH ACTIVITIES OF THE FUND

  17. THANKS

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