Republic of Armenia : Water Sector Note / World Bank. Washington D.C. : The World Bank, 2011 ; Halle (Saale) : Universitäts- und Landesbibliothek Sachsen-Anhalt, 2011
Inhalt
CURRENCY EQUIVALENTS
WEIGHTS AND MEASURES
ABBREVIATIONS AND ACRONYMS
REPUBLIC OF ARMENIA
EXECUTIVE SUMMARY
18 The use of PPP in the water and wastewater sector in Armenia has been an example of good progressive sector development. Private sector participation is increasingly seen by the Armenian government as a key component of sector reform strategies. Th...
20 The Note recommends AWSC migrates from the current management contract to an enhanced management contract (2011-2013) leading to a lease contract afterwards. The current AWSC MC will be extended for another two years until end 2013. The 3 Regional...
23 In order to achieve all actions suggested under the four building blocks of sector reforms, the Note recommends the following as the next steps to be observed by the GOA with support of partner donors:
1 INTRODUCTION
Achievements
Challenges
Table 1-1: Key Issues
2 STATE OF THE WATER SECTOR
Integrated Water Resource Management
Legal Reforms
Current Reforms and IWRM Strengthening
Water Resources for Water and Wastewater Services
Table 2-2: Performance Measures – AWSC Management Contract
Table 2-3: Performance Measures – 3 Regional Utilities Management Contract
Villages
Levels of Service
Wastewater
Non Revenue Water (NRW)
Table 2-4: Estimates of Potential Areas of Losses
Metering
Staffing Productivity
Financial Performance and Cost Recovery
Institutional Structure/Framework
3 KEY CHALLENGES AFFECTING DEVELOPMENT OF THE SECTOR
Water Resources
Expansion of Services
Levels of Service
Wastewater
Non Revenue Water (NRW)
Metering
Asset Management
Figure 3-1: Asset Management
Figure 3-2: Some Key Issues Related to Financial Sustainability
Figure 3-4: Financial Sustainability - Balancing Tariffs, Subsidies and Costs
“To be sustainable: Tariffs+ Subsidies = Total Cost of Service”
Figure 3-5: Armenia Tariffs Currently Lower than Others in the Region
Revenue Collection
Fiscal Constraint
Sector Investment Needs
Figure 3-6: Financial Needs & Maintenance Categories
Figure 3-7: Potential Future Investment Needs
Legal Issues
111 Additionally, there should be an investigation of the potential use of abstraction charges for water utility development e.g. linkage to the Law on Fundamental Principles of National Water Policy (2005).
Institutional Issues
Regulatory Issues
114 The use of PPP in the water and wastewater sector in Armenia has been an example of good progressive sector development. The development of Yerevan city water utility was first established as a Management Contract. That was used to do some initial...
Key Elements of PPP Contract Types
Figure 3-8: Key Elements of PPP Contract Types
Table 3-4: Lease Contracts – Key Elements
Successful Development of the Lease Structure
Tariff
Investment Plan
Operating Capital
Service Area
Meters
Accounting
4 POLICY OPTIONS & RECOMMENDATIONS
Levels of Service
Investment
IFI Coordination
Overview
/Figure 4-1: Tariff Sustainability
Modeling of Tariff and Investment Scenarios
Figure 4-2: Base Case (Reference) Scenario
Figure 4-3: Positive Free Cash Flow Scenario
Figure 4-4: Cumulative Free Cash Flow for Scenario 2
Figure 4-5: Base Case Scenario in Case of Later Transition from MC to Lease Agreement
Is a lease contract the most appropriate PPP model?
153 The development of Yerevan city water utility was first established as a Management Contract. The arrangement was chosen to do some initial investment (funded by GoA) and to develop enough detailed information on the existing utility’s parameters ...
154 The experience with Yerevan shows that the Lease structure provides a proven and effective step from the Management Contract, and the use of a Lease would be the logical next stage of development of both AWSC and the 3 Regional Utilities (Nor Akun...
155 The opportunity should be taken to consider strengthening the pre-qualification and bidding process with some strengthening of contractual and accounting issues building on lessons learnt. Building on past experience there needs to be clarity of t...
Should we have a single PPP Operator for the whole country?
Fiscal Considerations
Asset Management Considerations
Timing for Introduction of New AWSC Lease Contract
159 The current AWSC MC has been extended for a further year until end 2011. The 3 Regional Utilities (Nor Akunq, Lori, and Shirak) MC contract ends shortly after this (in 2012).The intention, taking the example of the Yerevan PPP development is to tr...
Figure 4-6: Timeline for PPP Arrangements in Armenia Water Sector
Immediate Actions
Particular Immediate Actions
Approach to Establishing the Lease Contract for AWSC
165 In summary, a comprehensive and focused approach to development of the Lease contract for AWSC is proposed, which it is recommended should include the following key issues, at minimum:
166 The issue of water supplies to the 560 independent villages is not the main subject of this paper. However, with a total population of around 1.1 million in small communities throughout Armenia being served by widely varied quality and types of in...
167 Specific data are scarce in spite of a number of studies that have been carried out and some pilot projects being executed. A brief summary of the existing situation in 560 villages and the needs are provided by the SCWS in Annex 8.
168 To establish the basis for effective development of this part of the sector, a full review of current situation and needs would be required, coordinating existing work and studies and supplementing with field surveys to obtain a full picture of th...
169 In the short term the five existing water utilities should be encouraged to expand the current ad-hoc improvement of village water supplies in their area. This is currently carried out on a case by case basis through negotiated provision of servic...
5 CONCLUSION
170 Effective asset management is the key to achieving overall effectiveness of the sector. Continuing deterioration of assets will increase future costs of providing services unless the focus of approach on asset management is used to drive long term...
Sustainability
Figure A - 1
Figure A-2
Figure A-3: Delayed single tariff increase with Investment to match Service Quality
Constant Increase from AMD 180 with Investment
Figure A-4: Avoiding Tariff Shocks
UAssumptions
Efficiency Gains:
Water Losses/Unaccounted for Water:
Billing and Collection Efficiency:
UAnalysis
Figure B-1: Base Case (Reference) Scenario
Figure B-2: Positive Free Cash Flow Scenario
Figure B-3: Cumulative Free Cash Flow for Scenario 2
What is NRW?
Benchmarking the NRW Challenge in Armenia
Why Reduce NRW?
The NRW Management Challenge
Outsourcing - Performance Based Contracting for NRW/Leakage Reduction
Options for Armenia
Analysis of Pilot Project Implemented in Charentsavan Town (August 2008)
CONCLUSION
Commercial Director
V. Manandyan
Table E-1: Yerevan Djur Performance Indicators: As of June 1, 2011
Table E-2: AWSC Performance Indicators: January-March 2011
Current Situation
Legal and Institutional Framework
Key Issues Requiring Attention
General Background
Motivation for Private Sector Participation
Contracting Procedures
Evaluation of the Performance of the Private Management Operator
Lessons Learnt
1. Gdansk
2. Gdansk
3. Gdansk
4. Gdansk
5. Gdansk
6. Gdansk
7. Gdansk
8. Gdansk