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ABBREVIATIONS AND ACRONYMS CCTV CEE CIS COS DANCEE EBRD EU lcd LOS MB MC O&M UfW WTP WWTP PWiK Closed circuit television Central and Eastern Europe Commonwealth of Independent States Centralna (Wastewater Treatment Plant) Danish Cooperation for Environment in Easter Europe European Bank for Reconstruction and Development European Union litre per capita per day Lewobrzezna (Wastewater Treatment Plant) Mechanical Biological Mechanical Chemical Operations and Management Unaccounted for Water Willingness to Pay Waste Water Treatment Plant Poznanskie Wodociagi i Kanalizacja Sp. z o.o
CHAPTER 1 INTRODUCTION 1 Background Over the past thirty years major infrastructure investments have often been implemented based upon detailed and systematic engineering analyses, but without much analysis of the prospective demand for the service. Today, an investor, whether public or private, will require that detailed studies of future demand and surveys of willingness to pay will have to be undertaken before investing in major infrastructure, such as transport infrastructure. Within the water services sector, similar requirements are only now gaining ground. This may partly reflect that the nature of the revenue risk is different in water services. Cars can avoid a toll road by taking alternatives routes, but urban households cannot avoid receiving water / delivering wastewater from / to the monopoly water utility. The rationale However, water/wastewater utilities also face revenue risks, for example: • Reduction of water consumption by consumers; • Political protests impacting on the level of approved tariffs; • Poor collection rates for water bill, etc. EBRD and DANCEE have entrusted COWI to prepare a tool kit for consultants / analysts working for policy makers who want to address these, and related revenue risk issues, while designing water and wastewater service infrastructure investments. The toolkit will include practical guidelines on how to assess affordability and willingness to pay for water and wastewater services. An integrated approach The design (and cost) of a water and wastewater service infrastructure is not just a technical issue. Different designs lead to different service levels and cost structures, and each of the service levels are likely to be perceived differently by the consumer and thus to lead to different acceptability levels of the applied water prices. This should be integrated into an infrastructure design to reduce revenue risk and to make sure that a service level and an associated price level, acceptable to/optimal for the consumers, is applied. At the same time, affordability issues may set an overall limit for the possible increase in average tariffs and thus for the level of ambition with regard to future service levels if these are to be financed by the users. This implies that the analyses of the toolkit should be carried out concurrently with the technical analysis. Reduction of revenue risk requires integration of design, cost and WTP considerations. This requires a close dialogue between the technical team, the affordability and WTP analysts, and the policy makers. The research project and its case studies COWI is carrying out the project in order to design a toolkit based on literature research, extensive consultations with stakeholders and three case studies. The Poznan case study is one of three case studies being undertaken by COWI as part of the preparation of the toolkit. The other case studies are being undertaken in Brno (The Czech Republic) and Kaliningrad (Russia). The subjects of analyses, and the analytical methods used, have differed somewhat between the cities in order to provide the best basis for the preparation of the toolkit.
Page 1 and 2: Ministry of the Environment This re
Page 3 and 4: Water Prices in CEE and CIS Countri
Page 5 and 6: TABLE OF APPENDICES APPENDIX 1: APP
Page 7 and 8: Water Prices in CEE and CIS Countri
Page 9: CONTENTS & TABLE OF APPENDICES CONT
Page 13 and 14: CHAPTER 2 EXECUTIVE SUMMARY 3 3 The
Page 15 and 16: CHAPTER 3 TECHNICAL PROFILE 5 5 The
Page 17 and 18: 7 3.6 Staffing and Staff Efficiency
Page 19 and 20: CHAPTER 4 INSTITUTIONAL FRAMEWORK A
Page 21 and 22: 11 4.3.2 The Political Parties Ther
Page 23 and 24: 1 4 See e.g. 1998 PWiK annual repor
Page 25 and 26: CHAPTER 5 WILLINGNESS TO PAY 15 5.1
Page 27 and 28: 17 The willingness to pay is examin
Page 29 and 30: 19 Respondents were selected by ran
Page 31 and 32: 21 Figure 5.1: Age distribution of
Page 33 and 34: 23 Figure 5.3: Household income dis
Page 35 and 36: 25 Figure 5.5: Household payments f
Page 37 and 38: 27 Figure 5.7: Rating of services i
Page 39 and 40: 29 Figure 5.9: Drink tap water stra
Page 41 and 42: 31 Figure 5.11: Satisfaction with i
Page 43 and 44: 33 Colour and smell are included in
Page 45 and 46: 35 Figure 5.15: Average willingness
Page 47 and 48: 5 The willingness to pay for a less
Page 49 and 50: 39 The results from the Ankieter re
Page 51 and 52: CHAPTER 6 DEMAND FOR WATER AND AFFO
Page 53 and 54: 43 Statistical data are usually ava
Page 55 and 56: Appendix 13.1: SP Questionnaire 45
Page 58 and 59: 48 APPENDIX 13.1: QUESTIONNAIRE
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50 APPENDIX 13.1: QUESTIONNAIRE
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Appendix 13.2: Statistical Tables 5
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Appendix 13.4: List of Persons Met
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This case study, prepared by COWI,
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ABBREVIATIONS AND ACRONYMS BVK CCTV
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2 CHAPTER 1 INTRODUCTION The Brno c
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4 CHAPTER 2 WILLINGNESS TO PAY 2.2.
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6 CHAPTER 2 WILLINGNESS TO PAY Thre
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8 CHAPTER 2 WILLINGNESS TO PAY Most
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10 CHAPTER 2 WILLINGNESS TO PAY Thr
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12 CHAPTER 2 WILLINGNESS TO PAY Fig
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16 CHAPTER 2 WILLINGNESS TO PAY Tab
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20 CHAPTER 2 WILLINGNESS TO PAY In
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24 CHAPTER 2 WILLINGNESS TO PAY The
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26 CHAPTER 2 WILLINGNESS TO PAY The
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28 CHAPTER 2 WILLINGNESS TO PAY It
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CHAPTER 3 TECHNICAL PROFILE 31 The
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33 These indicators are comparable
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36 CHAPTER 4 INSTITUTIONAL FRAMEWOR
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1 The actual results are provided i
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42 There is a marked difference bet
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Water Prices in CEE and CIS Countri
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CONTENTS & TABLE OF APPENDICES CONT
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CHAPTER 1 INTRODUCTION 1 Project ob
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3 Structure of this working paper T
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CHAPTER 3 TECHNICAL PROFILE 7 The o
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9 All figures concerning water prod
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11 Furthermore, the report from Kr
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2 It is not clear from the text whe
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22 CHAPTER 5 WILLINGNESS TO PAY •
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24 CHAPTER 5 WILLINGNESS TO PAY Res
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26 CHAPTER 5 WILLINGNESS TO PAY Fiv
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36 CHAPTER 5 WILLINGNESS TO PAY the
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38 CHAPTER 5 WILLINGNESS TO PAY Two
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40 CHAPTER 5 WILLINGNESS TO PAY Con
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42 CHAPTER 5 WILLINGNESS TO PAY For
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CHAPTER 6 ABILITY TO PAY ISSUES 45
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47 which is less than half the aver
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49 Almost 10% of the households hav
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CHAPTER 7 CONSEQUENCES FOR METHODOL
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Appendix 15.2: List of Privileged G
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56 APPENDIX 15.3: SP QUESTIONNAIRE
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Water Prices in CEE and CIS Countri
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CHAPTER 1 INTRODUCTION 1 This paper
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4 CHAPTER 2 UKMERGE, LITHUANIA 2.2
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6 CHAPTER 2 UKMERGE, LITHUANIA 2.3
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CHAPTER 3 BOROVICHI, RUSSIA 9 Borov
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11 The average level of income is l
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Appendix 16.1: Literature Used 13 C
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