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The government will grant a concession for the supply of drinking water

2023-11-09 07:54:08Biznes SHKRUAR NGA REDAKSIA VOX

The government will grant a concession for the supply of drinking water

The government plans to implement a new approach to the organization and operation of the water and sewerage sector, which for decades has been suffering from financial problems and the unsatisfactory quality of services provided to consumers.

The Ministry of Infrastructure and Energy has presented to the public consultations the draft law "On the sector of drinking water supply, removal, collection and treatment of urban waste water", where one of the alternatives is the provision of service with a concession.

The new draft includes general regulation and cooperation through the central and local governments through 3 forms for providing the service for water supply, removal and treatment of polluted water for 1 area or several areas together in case the operators licensed for this service do not manage to perform.

The forms of cooperation for providing the service are foreseen to be through concession agreements, performance contracts, as well as the operator of the last alternative.

For the implementation of concession agreements and public private partnership in the services of drinking water supply, removal, collection and treatment of polluted water, article 25 of the draft law provides that it will be done in accordance with the law on concessions and public private partnership and by-laws, which determine the relevant requirements and procedures.

"The relevant feasibility study carried out by the relevant local self-government unit for concession awarding, or through a public-private partnership agreement, is approved in principle by the ministry responsible for Infrastructure and ERRU, within 3 months of its submission.
Only after receiving the approval, according to point 2 of this article, the local self-government unit continues with the procedures provided for in the law on concessions and public private partnership", it is defined in the draft law.

The other form of cooperation between the two powers for the supply of drinking water when the water and sewage companies fail will be through performance contracts.

"Performance contracts are concluded between the local self-government units and the central government authorities, which define the indicators that will be achieved on an annual basis by the operators. Performance contracts are signed by the national agency for drinking water supply, removal, collection and treatment of urban wastewater and the relevant local self-government unit. In the cases of SKPs created with the participation of the ministry responsible for the infrastructure, the performance contract is signed between the general assembly of the operator and its administrator", it is quoted in article 24 of the draft.

The operator of the last alternative is another form of cooperation that is defined in the bill. It will be the operator, who has the public service obligation, to undertake the services of drinking water supply and removal, collection and treatment of urban wastewater for one or more service areas, in case of non-performance by the operator licensed.

The operator of the last alternative can be with state or private capital and in any case is subject to licensing by ERRU to exercise the activity in accordance with the duration defined in the license issued by him.

The draft law does not provide for the creation of any new public institutions at the central or local level that develop their activities in the water supply sector and the collection, removal and treatment of urban wastewater.

Most of the water utilities in the country have a negative financial performance. They result in losses, as they have high obligations to other institutions, mainly for energy bills. As a result, the government decided to reorganize them./Monitor


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