Supporting Data for a KfW Financed Investment Project on the Montenegrin Coast

18 May 2017, Wien

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VODACOM

Vodacom is a joint service and coordination company for water and wastewater services for the

Montenegrin Coast

• Government of Montenegro

• Municipality Tivat

• Municipality Kotor

• Municipality Bar

• Municipality Herceg Novi

• Municipality Ulcinj

Established on 29 March 2005

Vodacom’s role

Agency for implementation of infrastructural projects in water and waste water sector on the

Montenegrin Coast

Coordinator for raising

organizational, technical and financial efficiency of the local

water utilities

Approximation to EU standards in the field of environmental protection

5 Municipalities

Ph

ase

I

200

4 –

20

05

Phase II

2006 – 2009

Ph

ase IV

20

10 –

to d

ate

Water Supply and Sanitation Adriatic Coast

Phase III

2009 – to date

Phase V

2015 – 2017

Phase V-2

2016 – 2020

What are the benefits that Montenegro will gain from implementation of this Project?

Reduction of losses in the water supply network

Raising collection efficiency for the services performed

Ensuring a year-round water supply

Modernization and

optimization of the performance of local water utilities

Balancing the quality of water supply and wastewater disposal services in the coastal region

Reaching EU standards in the field of environmental protection

Ensuring proper wastewater

disposal aimed at long term economic development with a special focus on tourism development

Rehabilitation of the existing and

construction of the new water supply system

Higher quality of bathing water, reduction of pollution in marinas and environmental protection in the coastal region

The Project is a is a marketing tool

and a precondition for greenfield investment and a positive international image of the tourism industry

How we started?

Training of Vodacom’s staff within a capacity development project financed by KfW, 2005;

The First Regional Benchmarking Workshop in Montenegro regarding

the water and wastewater sector organized by Vodacom, 2006; Collection, analysis and processing benchmarking data, and reporting on

monthly, semi-annual, and annual basis;

Systematic and permanent improvement of benchmarking database from 2002;

Gradual increase of the number and quality of data and performance indicators;

Organization of regular annual benchmarking workshops from 2006.

Data Collection (ViK)

Data verification and comparison

(ViK-Vodacom)

Production of benchmarking reports (monthly,semi-annual, annual)

(Vodacom)

Different stages in the work on benchmarking

Setting and defining goals (ViK)

Monitoring (ViK-Municipality)

Calculation of performance indicators of the ViKs

(Vodacom)

Analysis and Data Processing (Vodacom)

Benchmarking as a VIK’s management tool

Informing management on performance results;

Preparation of plans, reports;

Decision-making;

Facilitated operations with stakeholders (Municipalities, Ministries, KfW, Vodacom, beneficiaries, etc.).

Operational and strategic planning ;

Easier setting and monitoring of the goals and tasks;

Identification of strengths and weaknesses of the internal business policy;

Detecting opportunities and threats of external factors;

Continuous comparison of performance results;

Improvement of business processes.

Benchmarking instrument of cooperation within the sector

contributes to the exchange of information - data, experiences and dissemination of good practices;

contributes to improving WUs performance efficiency in the with the aim of both improving their own performance and also providing modern public services;

Stimulates a climate of positive competition among the WUs;

develops openness and spirit of cooperation between the WUs;

contributes to the creation of a platform for full sector transparency.

Reliability of data – a current step in improvement

Application of Benhmarking in the WUs improves:

Annual work programs of the ViKs;

Business plans (3-5 years) and monitoring of fulfillment of goals defined by the Business Plans;

Promoting commercialization with gradual tariff reform so as to achieve full cost coverage (Tariff Studies);

Analysis of Financial, Technical and Commercial Indicators of the WUs;

Monitoring the performance of investment projects;

Strategic and investment plans, feasibility studies, master plans, terms of reference, statistical analyses, etc.;

Monitoring by a regulatory agency.

Investments Project outcomes

Permanent Institutional (capacity development program) support to WUs

Improved communication between local governments and their water utilities (WUs) in planning and implementation of investment priorities;

Raised level of assessment of justification of investment activities from the standpoint of technical needs, and also their impact on the service prices – tariffing;

Achieved a strong synergy effect with all participants in the project; A positive impact on the planned development of networks in the municipalities;

Improved quality of design documentation, works, equipment, construction procedure and exploitation of facilities through implementation of FIDIC procedures;

Initiated procedure of standardization of equipment and materials;

Reached progress in defining regional interest in the Water Supply and Sanitation Sector;

Provided assistance and support to water utilities for implementation of international tender procedure.

vodacom@t-com.me

www.vodacom.co.me

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waiting to be led by others.”