Donor: EBRD
Budget: 206,000 €

Project Description:

The main objective of the Project is to assist the Capljina Municipality and the PUC “Komunalno” with preparation of a detailed Financial and Operational Performance Improvement Programme – FOPIP, and to prepare a Public Service Agreement between the Municipality and the PUC and assist with restructuring of the company.

The Project is aimed to achieve its objective by measures and actions to:

  • improve operational efficiency and levels of service (e.g. reducing unaccounted for water and sewage leakages, reducing number of bursts);
  • increase the revenue collection and reduce accounts receivable on the one side and actions to reduce operating costs on the other side;
  • improve the accounting and reporting standards to make it compliant with IAS and IFRS;
  • implement account separation among the three main activities (water and wastewater, solid waste, and public spaces) that should enable the Company to make and maintain each activity profitable.

The Project will cover the following activities:

  • development of automatic tariff adjustment formula and tariff policies (e.g. full cost recovery, elimination of cross-subsidies between consumer groups, etc.);
  • definition of service standards to provide residents, enterprises and organisations in the Municipality under a contractual relationship;
  • description of measurable performance indicators with clear timetable for their achievements.

Specific activities carried out by Eptisa include assessment of current situation and providing recommendations for improvement and upgrade in following areas:

  • staffing and labour productivity, revenue collection and administration;
  • cost efficiency, financial management and accountability;
  • management information and accounting systems;
  • tariff Policy and Consumer relations.

For further details related to this project please contact our office at: eptisasee@eptisa.com