As part of a widespread effort to upgrade water supply and wastewater disposal across Serbia attention is being focused on second-tier medium-sized cities and towns. This process is being assisted with finance and support from IFIs and the WBIF. The support is helping the second stage of an existing programme: water supply and sewage disposal in medium-sized Serbian towns.
The programme's selected cities, towns and municipalities, through their respective water utilities, act as project implementation units (PIU). These PIUs are responsible for the planning and implementation of the investments. They are supported by an implementation consultant who helps with planning, tendering and construction supervision. They are also supported by a consultant for technical assistance to strengthen their internal administration and commercial performance. Both consultants assist the utilities in installing management information systems (MIS), updating tariff adjustment plans, developing human resources training needs analysis in billing and collection as well as leak detection, improving public relations with customers, detecting leaks through training leakage teams and following up leak detection surveys as well as developing preventive operation and maintenance plans.
The project objective aims at improving the living standards and hygienic conditions of the population by improving the water and wastewater networks of the towns.
The EU grant co-financing of EUR 3 million (including management fees) contributed to the realization of investment measures as well as consultancy services in six out of seven medium-sized municipalities which qualified due to the fulfilment of performance criteria for the investment phase of the water programme (Kraljevo, Losnica, Pancevo, Sabac, Smederevo, Sombor).
While all investment measures with a contribution of IPF funds have been finalized, the overall programme is still ongoing. The construction measures are completed in 3 of 7 cities (Kraljevo, Sabac, and Sombor).
The WBIF funds were used to co-finance the ongoing investments in Kraljevo, Loznica, Pančevo, Sabac, Smederevo and Sombor. The use of WBIF funds freed the German Government grant funds to set up a performance incentive scheme. The scheme provides investment grants of up to EUR 120.000 for additional investment measures in each of those water utilities and/or municipalities that achieved agreed-upon performance criteria. These criteria are essential because they target the commercial and technical performance to operate the systems in the long- term. Furthermore, the investment grants enhance the competition between municipalities getting additional funds for investments thereby inciting the improvement of their commercial performance further. Five cities qualified for the investment grants: Kraljevo, Loznica, Sabac, Sombor and Vrsac.