Reform of Water Supply and Wastewater Treatment in Lithuania

Practical Options to Foster Consolidation of Utilities

Since 2006 Lithuania has taken steps to ensure higher operational efficiency and to reduce the disparity in prices for water supply and sanitation services. However, progress has been slow. Concerns have emerged regarding representation of small municipalities in consolidated utilities and increased costs for some consumers. Reform of Water Supply and Wastewater Treatment in Lithuania presents practical options to implement the national strategy towards the consolidation of water supply and sanitation services in Lithuania as a tool to foster operational efficiency and financial sustainability of the sector. Analyses and recommendations benefitted from discussions in two pilot regions in Lithuania, to test the practicality of consolidation scenarios and accompanying measures. Particular attention is paid to tariff setting and different modes of benchmarking – including development plans benchmarking - as tools to incentivise performance. The report provides insights for countries facing similar challenges or seeking to improve the efficiency of water service provision. The project was undertaken in collaboration with – and with the financial support of – the Directorate-General for Structural Reform Support of the European Commission.

Available from September 22, 2022

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Executive summary
Report with a robust analysis of the state of play
Summary of the kick-off meeting
Issues paper
Report with recommendations on financial and governance incentives
Comments on the draft Law on Drinking Water Supply and Wastewater Water Management
An Action Plan for the consolidation of water utilities in the pilot regions
Report with proposals for water pricing
Report with recommendations on benchmarking the performance of water utilities
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