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The legal and institutional frameworks are crucial for the success of urban water sector reforms in the EECCA. The EAP Task Force's work in this area focuses on:
The promotion of performance benchmarking
Access to comparative information is considered essential to utilities' development by providing utilities themselves and stakeholders (and also international donors) with the information they need to fulfil their roles. Currently, water utilities in the EECCA do not have standardised data collection systems and standard indicators, largely due to the disruption of regular reporting following the decentralisation process in the early 1990's. In the framework of the EAP Task Force programme on urban water sector reform, several programmes to promote the usage of performance indicators have been carried out, i.e. in Moldova, the Russian Federation, Ukraine, Kyrgyzstan, Kazakhstan, Georgia and more are under way.
Workshop
USEFUL LINKS:
http://www.urbaneconomics.ru/eng/index.php
The promotion of performance based contracts between utilities and municipalities
The establishment of water utilities as autonomous, commercially-run utilities is one of the key reform objectives in the Almaty Guiding Principles. Currently, a more commercially-oriented management of water utilities is frequently obstructed by the sometimes intense linkages between the utilities and the municipal leadership. The absence of a clear definition of the roles of water utilities and those of the municipality, hampers a more independent management of utilities. Also, the absence of a monitorable target level and quality of service and management does not help water utilities to maintain adequate and efficient performance. The systematic development of performance-based contracts to govern the utility - municipality relationship and to help achieve target level of service would constitute a way forward.
To support local authorities that are willing to contractualise their relationship with their water utility, the OECD EAP Task Force has developed “Guidelines for Performance-Based Contracts between Municipalities and Water Utilities”. These Guidelenes address the key elements that need to be considered in connection with the preparation, negotiation, implementation, and periodic revision of a successful performance-based contracting mechanism.
Using the good international practices identified in the Guidelines, the EAP Task Force has launched a project which aims to provide support to selected municipalities which consider or have already implemented performance-based contract. More information on this project can be found here.
The potential role of private sector participation in the EECCA water sector
There has been much debate recently about an increased use of public-private-partnerships (PPPs) to accelerate investment and reforms in the urban water sector in non-member countries. While there is sofar only one PPP in the EECCA water sector that has started operating, there is ample experience in the countries of Central and Eastern Europe. The EAP Task Force endeavours to analyse this experience and to identify the factors that lead to successful PPPs, as well as the role of IFIs, donors and non-member country governments.
Documents available:
PROCEEDINGS
REPORTS
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