AWARD CEREMONY FOR WATER AND WASTE PUBLIC COMPANIES’ PERFORMANCE

“In order to promote the highest values and standards of performance as well to increase efficiency of activities of water and waste public companies which purpose is quality service enhancement provided to Kosovo population by water and waste public companies,

Water and Waste Regulatory Office (WWRO) as an independent regulatory authority of public companies providing water and waste services in Kosovo, this year, for the first time, also in cooperation with other relevant institutions (MESP, NIHP, donators) distributes awards for the best performance demonstrated by water and waste public companies in Kosovo during 2007”, said WWRO Director, Afrim Lajçi, in the occasion of award ceremony.

Based on performance indicators monitored and assessed according to its mandate regarding performance 2007, WWRO has given following awards:

• In water and wastewater sector:

o Award for the best overall performance in 2007:
Regional Water Company – HIDROSISTEMI RADONIQI JSC, Gjakovë
o Award for best achieved progress during the period 2006-:
Regional Water Company – HIDROREGJIONI JUGOR JSC, Prizren
o Award for a company which demonstrated the highest responsibility in cooperation with institutions and stakeholders: Regional Water Company – PRISHTINA JSC Prishtinë.

• In waste sector:

o Award for the best overall performance in 2007:
Regional Waste Company– UNITETI JSC, Mitrovicë
o Award for best achieved progress during the period 2006-2007:
Regional Waste Company – UNITETI JSC Mitrovicë
o Award for a company which demonstrated the highest responsibility in cooperation with institutions and stakeholders: Regional Waste Company – HIGJIENA JSC Gjilan.

This year, for the second time, WWRO has published annual report on performance of 16 licensed companies which is a WWRO objective. This report gives an overall overview on financial, operating, and customer services performance by regional water and waste companies in 2007. In addition, this report compares performance of each company as well as company performance to date. This is the process called “benchmarking” or competition through comparison and through this way it is aimed to stimulate performance improvement of the companies in terms of services of monopolistic character such as water service (and waste services).

Publication of this report means that customers can be informed with how well or bad has performed their supplier during the year and how their service provider is compared with other companies in Kosovo. In future, they will be informed whether their supplier has improved or not.

“In Annual Performance Report for 2007 published by WWRO in July of this year, we have concluded that overall water and waste sector have shown progress compared with 2006. This progress can be seen almost in all parameters or key performance indicators by which WWRO measures and appraises work of licensed companies. However, it will take time and coordinated engagement of all relevant stakeholders to create stable water and waste sector”, said WWRO Director, Afrim Lajçi.

“Two main areas that remain very problematic are: very low rate of debt collection (61% in water companies and 71% in waste companies) and very high rate of water losses in water companies (58%). Without substantial improvement in these two areas, there is no chance for water and waste public companies to achieve real progress.”

”Poor performance of the companies in debt collection and reduction of water losses have an impact in their financial viability and consequently in capability to provide customers with high quality of services. Unless companies address these two issues as main priority, they will not be able to undertake capital investments necessary for water sector.

“It is also of essential significance institutional support especially in a rule of law (illegal connections, non-payment of bills, disconnection for non-payment, etc.) and in areas such as provision of subventions for that customer group who are not able to pay their invoices (social cases, handicapped and families etc.) the same as with energy bills.

“Currently, WWRO is in the process of service tariff determination for next period, and according to preliminary estimations, it is understandable that tariff should be increase in order companies to achieve operational cost recovery and to enable capital investments necessary for maintenance and improvement of service levels. During the last three years there has not been increase in water and waste tariffs even though in the meantime energy, fuel and other costs have increased which have direct impact in costs of water and waste companies. Therefore, regarding service quality improvement, companies should generate revenues sufficient for investment necessary for water system and other mechanisms. And this can be achieved with appropriate tariffs and if customers pay their bills.

Some information about WWRO:

1. WWRO is an independent economic regulator responsible to monitor activities of public companies providing water and waste services. It is established in November 2004 under UNMIK Regulation No. 2004/49 amended with Law No. 03/L-086 and approved by Kosovo Assembly in 13 June 2008. Its primary goal is to protect customer interests and ensure that service providers do not misuse their monopolistic position and provide affordable standard of service with lower cost.

2. Main WWRO responsibilities are:

• Issuance of service licences to water and waste service providers.
• Determination of tariffs for water and waste services in a level which enable companies to finance their activities and improve their service in order to efficient operation. These tariffs should be fair and take into account customers’ affordability to pay.
• Monitoring and reporting of service providers’ performance
• Establishment and supporting regional Customer Consultative Committees.
• Ensuring that services are in compliance with acceptable standards.


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