The estimated cost for water supply (network rehabilitation, extension, etc.) ..... Policy Statement: Full service cover
Government Water Policy Paper InterMinisterial Water Council The Government of the Republic of Kosova
Table of Contents Introduction............................................................................................................................................ 3 Why a Water Policy Paper.................................................................................................................. 3 Key Principles for Action......................................................................................................................... 4 Access to water and sanitation – Inalienable human rights .............................................................. 4 Water Is a Common Good under State Sovereignty .......................................................................... 4 Water Is a Valuable Resource and Must Be Valued ........................................................................... 5 Cost of providing water must be recognized and paid ...................................................................... 5 Clear Cooperation and Vision is the Key to Progress ......................................................................... 6 The Past is Not Prologue .................................................................................................................... 6 Water governance .................................................................................................................................. 6 Institutional Framework ..................................................................................................................... 7 Financial Arrangements...................................................................................................................... 8 Technical Arrangements..................................................................................................................... 8 Data Information Sharing ................................................................................................................... 9 Coordination....................................................................................................................................... 9 Performance Monitoring and Evaluation......................................................................................... 10 Key National Water Issues.................................................................................................................... 11 1. Water Quality, Quantity and Public Safety .................................................................................. 11 2. Linkages with Other Sectors......................................................................................................... 12 3. Surface Water and Ground Water ............................................................................................... 12 Problem Statement(s) .................................................................................................................. 12 Policy Recommendation(s)........................................................................................................... 12 4. Water Regulation1 ....................................................................................................................... 14 Problem Statement(s) .................................................................................................................. 14 Policy Recommendation(s)........................................................................................................... 14 5. Water Utilities .............................................................................................................................. 15 Problem Statements..................................................................................................................... 15 Policy Recommendations ............................................................................................................. 15 6. Vital Next Steps ............................................................................................................................ 18 6.1 Climate Changes ..................................................................................................................... 18 6.2 Water Security........................................................................................................................ 19 6.3 Transboundary Cooperation .................................................................................................. 19 6.3 European Integration ............................................................................................................. 19 6.4 Human Resources Development ............................................................................................ 20 6.5 Private Sector Participation.................................................................................................... 20 List of Abbreviations............................................................................................................................. 22
Government Water Policy Paper Introduction
Why a Water Policy Paper
Water is vital to economic development, public health and national security. It’s time to look at Kosova’s water in a different light!Challenges to our ability to provide clean and safe water for future generations are plentiful, including the ability to provide water for Kosova citizens, for businesses and agriculture in a period where the threats of climate change will have serious implications in a state the size of Kosova. The segregated thinking of the past with respect to water supply, wastewater, irrigation and water resources managementissues and challenges has driven progressbut has also led to entrenching the fragmentation which has prevented a holistic approach to the management of the water resources. In order to develop the economic and public health well‐being of the citizens of Kosova, they need to have continuous access to unrestricted water supply. The public, water users and policy makers must recognize that water is a finite resource and therefore an integrated water policy – that balances our commitment to social, environmental, agricultural, and economic needs – is essential to guide the development of our Government’slegal framework and inform water‐related decision‐making. The Government of Kosova believes that the first step in achieving such a goal is to involve stakeholders from all relevant fields, to seek common ground on the various aspects of a national water policy, to assess the obstacles to achieving it, and to outline the concrete steps that can be undertaken to attain that goal. The Government proposes to implement a system that allows local and central entities, as well as key stakeholders, to work together toward an integrated water resources management, one which recognizes the demands placed on a limited resource, which acknowledges the interrelationship among various water needs and challenges, and which treats water as one resource – indeed as “One Water”. Population growth and concentrations, changing land use and weather patterns as well as climatic conditions mean that we must re‐evaluate how we use water. Climate change is making the future unpredictable and, thus, difficult to prepare for. Additional challenges are the growing demand for water used for the production of energy. The pressure on our water availability is similarly challenged by a growing demand from industry more broadly as well as potentially from the agricultural sector as Kosova population continues to expand. In general, economic development will require an increasing demand for large amounts of water, which will lead to water quality challenges and add demand on limited water resources. Availability of water doesn’t readily meet the location of population and therefore there is a need of transfer of resources to the areas that need it. Water does not follow administrative boundaries and therefore, in international circles (including the EU), the best practice is river basin management of water and in the case of Kosova this leads us to develop a national policy, which will benefit all sectors of the population.
It is clear that these issues that most affect the future of our water supplies will not be successfully addressed without considering water as the one resource it truly is. We cannot succeed without a clear national policy – and national leadership. Establishing a national water policy, one that can integrate the currently separate efforts of central and local governments, focus resources and support, and better coordinate water and other economic development issues, is critical to meeting the challenges that confront us and ensuring our future prosperity. The Government has recognized the importance of water and has responded by establishing the Water Task Force1, an initiative welcomed and supported by the water stakeholders and donor community. The Government believes that we should be rigidly demanding the end result we desire, but also be flexible about the means to achieve water sector improvement. The Water Task Force provides an umbrella of confidence under which certain activities are planned and implemented, and it offers a forum to maximize the potential solutions to water sector challenges. It acts as a coordination platform to a myriad of often disparate approaches as well as laws and regulations, many of which treat the same resource differently, and some of which are in conflict with each other. It is the duty of the Government of Kosova to formulate and implement a national water policy in order to preserve and improve the quality of life of its citizens and this duty cannot be overstated. Planning needs to address all aspects of water availability and use, and a centralized focus is necessary, whilst implementation can be more decentralized, allowing for participation of a wider range of stakeholders.
Key Principles for Action
Access to water and sanitation – Inalienable human rights
The notion that access to water and sanitation are human rights has been confirmed over the past decade. This was internationally acknowledged on 28th of July 2010 through a resolution of the United Nations General Assembly, which recognized access to clean water and sanitation as human rights essential for the full enjoyment of life and all other human rights2.Governments must guarantee to their citizens the right to sufficient quantities of safe, physically accessible and affordable drinking water and sanitation. The Government of Kosova commits itself towards ensuring fair and equal access to water to all its citizens and segments of society. The Government commits to incorporating the human rights to water and sanitation in the national law.
Water Is a Common Good under State Sovereignty
Water is vital to life and doesn’t allow for alternatives, thus it is and must remain a common good, shared and beneficial for all members of a society. But water is also a limited resource with competing uses ‐ it therefore has an economic value, but must not be demoted to a bare commodity or source of profit. The state must invariably retain sovereignty over the resource water. Common goods allow for democratic and equitably power of decision of the citizens and their representatives. Public oversight and management of water must take this into account. 1
The WTF has beentransformed into an Inter‐Ministerial Water Council according to the new water. Hence, when referring to the WTF henceforth it should be understood it refers to the Inter‐Ministerial Water Council 2 http://www.un.org/News/Press/docs/2010/ga10967.doc.htm
The Government of Kosova acknowledges water as a common good and commits itself towards retaining sovereignty over this resource as indivisible national asset. It acts as the custodian of the national water resources and its powers are exercised as a public trust.
Water Is a Valuable Resource and Must Be Valued
There is a great need for a better understanding of and appreciation for the value of water. We need to appreciate the true worth of water both in terms of its cost and its fundamental worth to human survival and ecosystem health. In 2007 Kosova experienced serious water shortages, which should serve as a warning and highlight the value of this resource. Water is an absolute pre‐requirement for socio‐economic activity, be that for new settlements or energy development, or agriculture and industry. Water is contained in everything: for example, 70% of the human body is water; it takes 40liters to produce a slice of white bread or 140 liters to produce a cup of coffee (virtual water), etc. Without water or proper management of the resource the development of Kosovawill be severely restricted. The Government recognizes that protecting water as anessential resource is a priority for the immediate and future socio‐economic development of Kosovaand declares water as one of its priorities during the next decade (2013‐2023).
Cost of providing water must be recognized and paid
Valuing water is not just an issue of proper pricing and financing, it is also a finite resource on which an environmental value must be placed such that it is used more efficiently, carefully and intelligently. Treated water has a cost, piped water has a cost, and sewage collection and treatment has a cost. The initial investment costs for services and their long‐term management, operation, maintenance, replacement and extension / upgrading costs have to be paid for. If water customers are prevented from paying directly for the services there is a loss of accountability and responsibility. Direct “pay for use” charges make much more sense than indirect general taxation. Access for poor people can be assured through intelligent, targeted, non‐discriminatory and transparent subsidies, such as a social tranche free of charge or subsidized connection costs. By failing to pay for water services (water withdrawal permits, drinking water supply, irrigation, industrial, etc.), thecustomers may be compromising their own service satisfaction. There is a need for quick significant improvement in paying for water and wastewater services. Low revenue collection in this sector is genuinely risking the proper management and maintenance of water supply and wastewater collection networks. Even further, it is seriously hindering the development of wastewater services, which when left untreated threatens public health and the state of the environment. The Government recognizes that the most valuable asset in Kosova today, is water—clean, safe, fresh water. The Government also recognizes that the needs for developing water infrastructure are tremendous3, far exceeding the current budget availability of Kosova. 3
The estimated cost for water supply (network rehabilitation, extension, etc.) and wastewater collection and treatment is around 1.25 billion Euros.
Clear Cooperation and Vision is the Key to Progress There is clearly a need to bring a new degree of cooperation among all levels of government as well as on the broader aspect, amongst all water sector stakeholders due to the increasing interdependence. This is not an easy path. Indeed many of the successes of the past decade have been based on a top‐ down, enforcement‐oriented, approach. The Government’s vision is that “by the year 2025, water resources in the Republic of Kosova are to be used efficiently, allocated equitably and managed in a sustainable way”. In terms of water services the Government’s vision is that “Water in sufficient quantity and of acceptable quality is available to all stakeholders, in order to meet present and future needs, in line with European standards.”
The Past is Not Prologue
Kosovainherited a lot of challenges from pre‐1999 regimes, and went through devastation during the war. The last decade and more have been dynamic. Through the international community Kosova’s citizens benefited from a lot of investments by the donor community. The dynamism continuous and challenges evolve. As far as water planning and management is concerned, the past is no longer a guide to the future. Climate change effectively negates historical experience as an indicator of future conditions. We are confronted by change on a scale the likes of which our water infrastructure has never experienced. For example, in 2006 we had a flood management crisis, ironically only to be followed with the worst drought in our recorded history the following year. Efficiency of water use has been and remains the goal, but for the uncertain future, resilience and adaptability must play a stronger role in water planning and management. This will also have consequences for a legal and regulatory framework in which the desire for confidence and certainty will react against the reality of uncertainty and unpredictability. It will also have financial implications as a more resilient and robust system will incur costs. The Government recognizes that the use to which the water resources are put must come under increasing scrutiny and intensifying management. A modern and creative piece of water policy and strategy are needed if the aspirations for growth and development of the society are not to be constrained as a result of limited water resources.
Water governance As a basic source of life, water resources must be governed within a framework of shared responsibility, involving an obligation on the part of all people and institutions, both individually and collectively, to value and protect them.Water governance is defined by a set of systems (political, social, economic and administrative) that are in place, which control decision‐making with regard to water resource development and management and the delivery of water services. Good governance exists when interrelations and division of roles between the state, civil society and the private sector are based upon participation, transparency, non‐discrimination, and the effectiveness and reliability of public affairs. Likewise, the water sector in Kosovais a part of broader social, political and economic developments and is thus also affected by decisions outside of the water sector.
Institutional Framework There is need for assistance in developing a strong institutional framework which will resolve conflicts arising from the various water issues, i.e. allocation and use, tariff, and quality, and promote policies for a more equitable and efficient use of water.A clear and appropriate assignment of roles and responsibilities in the sector is vital, whilst strong and competent institutions are needed at all levels. Roles, responsibilities and institutions need to be supported through adequate resources allocation, training measures, capacity building and institutional development. Water sector is a cross‐cutting issue, involving a number of public institutions. In order to clarify the institutional responsibility in the water sector, the Government proposes institutional responsibilities for the below issues should be as follows: •
Legislation: The Assembly shall be responsible for approval of laws relevant to the water sector as well as the Water Strategy.
•
Executive Coordination: The Government shall institutionalize the Water Task Force into a permanent Inter‐Ministerial Water Council with clearly defined terms of reference, secretarial support and operational budget, retaining the objectives of the former.
•
Water Resources: The Ministry of Environment and Spatial Planning (MESP) shall be responsible for water resources management. In accordance with the EU harmonization, River Basin District Authority shall be established in 2013 under the authority of MESP, and they shall be responsible for coordinating water activities on basin level, including all water users.
•
Irrigation sector currently in the responsibility of the Ministry of Agriculture, Forestry and Rural Development (MARFD) shall be either fully regulated (including irrigation services) by this Ministry or policy‐making shall be transferred under the responsibility of MESP, in order to manage better water use.
•
Water Services: The Government shall explore the best way forward towards sustainable water services provision, assessing modalities of maintaining the concept of regional water companies, currently under the responsibility of the Ministry of Economic Development, whilst preserving the increased role of municipalities in the water sector. Regional Water Companies (RWCs) shall be further consolidated in line with the Government decision on consolidation (Annex 1), recognizing that future funding of investments will increasingly be achieved through loans not grants and International Funding Institutions prefer to focus on the bigger well‐run companies in order to achieve economies of scale
•
Regulators: Water and Wastewater Regulatory Office (WWRO) shall uphold the responsibility as the economic regulator in the provision of water and wastewater services.WWROshall remain responsible for protecting the rights of the customers, as well as of service providers, andaccountable to the Parliament. The Institute of Public Health shall continue to be responsible for the drinking water quality monitoring and regulation (health regulator).MESPshall strengthen its role as the environmental regulator – all investments affecting water resources will need to obtain a water permit and / or be harmonized with MESP and its departments.
Financial Arrangements
On the one hand, current practices in budgetary allocation indicate that funding is apportioned to various organizations for the same activity. For instance,municipalities, MESP and MED have all funded water supply projects in 2012/3! Similarly, donor assistance has often gone through municipalities or MED or directly RWCs. On the other hand, the situation regarding management of water resources is fragmented. Investments are not coordinated with MESP: fish farms are opened that threaten downriver flow and quality, restaurants change the river beds and flows, municipalities rehabilitate river beds and banks without MESP oversight, illegal activities in river mining continue, etc. There is a substantial lack of clarity in terms of institutional responsibility when it comes to finances, permits, etc. Hence, the Government confirms that for: •
Water supply and wastewater services infrastructure: RWCs are responsible for the investments in the water services infrastructure. MED, as the custodian of the assets of RWCs, on behalf of the Government, is responsible to support and coordinate investments in the water supply and sanitation projects.Financing of water services shall be secured from: (i) water tariffs, (ii) budget allocations and (iii) donations
•
Water resources infrastructure: MESP is responsible for financing or coordination of investments in the water resources sector. No investments that affect the water resource can be undertaken without notification of MESP and their approval. Water resources infrastructure on the other hand shall be financed from: (i) water permit charges and penalties, (ii) budget, and (iii) donations.
•
Irrigation infrastructure: Irrigation regional companies are responsible for the investments in the irrigation sector. Such investments will need to be harmonized with MESP in order to ensure proper allocation and use of water resources.
•
Municipalities, within their urban territory, are responsible for financing or coordination of investments including river flow regulating and flood protection works, as well as stormwater management. Municipalities shall also exercise rights given by law on the overall water sector. Where such rights include rural water and sanitation schemes, municipalities shall ensure their integration within the management of RWCs, in coordination with the respective RWC licensed for that service area. Asset ownerships of such assets shall be transferred to the respective RWC.
•
Donors and other financing organizations will be required to follow the line of responsibility mentioned above.
Technical Arrangements
The Government acknowledges the support of donor community in rehabilitation of water networks, pumping stations and treatment plants. The support has evolved from emergency phase to more development one, and there has been gradual introduction of best technologies. The Government recognizes there have been steps towards adopting environment‐friendly technology, promoting water demand management and water conservation. The Government encourages improving the design, construction, operation and maintenance of water supply facilities to improve efficiency and minimize water losses.Sustainable technologies are socially acceptable, needs based, cost‐effective, environmentally friendly, replicable and flexible for
extension and for demands for higher service levels. To achieve this, a variety of sustainable technological approaches should be established to conserve this limited resource not only for present use but for future generations as well. The Government is conscious of the fact that there are many challenges ahead. There is an only one domestic urban wastewater treatment plant, in the town of Skenderaj. However, there are donor initiatives strongly supported by the Government to undertake feasibility studies for wastewater treatment and disposal4. Further, the Government is aware thatKosova belongs to the category of water stressed countries5 and there is a need to assess the development of new water sources, to drastically improve water use efficiency by primarily reducing the amount of non‐revenue water. Technical know‐ how, investments and capacity building are needed in this area. Moreover, in line with Government policy of agriculture being one of the priorities of the economic development, there is a need of increasing irrigation efficiency (“more crop per drop”) through the application of measures, i.e. proper crop selection and techniques such as sprinkler or drip irrigation, and other options. Expanding research and development of cost‐effective, appropriate and efficient irrigation and management technology will be encouraged, as well as promoting efficient farm water usage, re‐use and the adoption of technology for water conservation and modern irrigation. Also, the Government shallpromote increasing efficiency and reliability and reducing system losses in power generation, by adopting appropriate standards and technology, and enhancing management reforms. In general, the Government shall support research on and development of applicable and appropriate technology for water conservation, sanitation and pollution control.
Data Information Sharing
It is of concern that the true level of water availability andutilization is not known because the available data are fragmented, not openly shared, incomplete and contradictory.In order to amend this, it is recommended to: • Develop a reliable database on water that will be accessible to all stakeholders. This should be done through the Water Information System in the MESP. All water users shall contribute to this database. • Rationalize and institutionalize the data collection system for an efficient and effective flow of information, planning and decision‐making. • Improve data and information, including a review and rehabilitation of the data collection network for surface water, groundwater and water quality. • Enhance transfer of knowledge and information based on global experiences and best practices on all aspects of IWRM ‐ policy, law, management procedures, etc. • Develop an extensive information and education campaign that will make the public realize that water is a limited resource, and that it is a commodity which comes at a price.
Coordination
4
Next contractedplant to be built isinPrizren. Also, there are concrete plans to undertake the same for Gjakova, followed up byPeja. Whilst, the feasibility study for Prishtina, Gjilan have been completed, and ones for Ferizaj and Mitrovica are anticipated by end of 2013. 5 According to the Falkenmark Water Stress Indicator, a country is said to experience "water stress", i.e. periodic or limited water 3 shortages can be expected, when annual water supplies drop below 1700 m /cap/year. According to MESP, Kosovais estimated to have 1600 3 m /cap/year.
Coordination is essential to addressing complex and inter‐linked water problems as well as provide well‐coordinated constituency to push for water supply and sanitation issues on the country’s development agenda.It also provides a unique forum for the exchange of ideas aimed at harmonizing principles and a better understanding of the level of resources flowing to other sectors and how to attract more funding to the water sector. The Government aims to: • promote interaction among sector stakeholders in order to reduce duplication and ensure effective and profitable investment in the sector; • promote monitoring of application of the policies to activities of the various organizations; • promote appropriate financial flow channel for effective investment; • promote harmonization of project implementation approaches; • help build the Government’s capacity to manage and monitor the provision of sustainable water and sanitation services; • streamline a coordination mechanism which optimizes the utilization of resources and ensure the coherence of approaches for the benefit of the un‐served populations; and • facilitate communication and exchange of information among all parties concerned with the water sector. The coordination meetings shall be open to new members, even on a temporary basis to contribute to cross‐fertilization between local and national level and between sector groups The Government encourages the coordination mechanisms in place continue, are strengthened and take account of the above principles. These mechanisms include: • MEI and MESP coordination of water sector institutions and organizations as well as donor community, in accordance with the Regulation nr. 04/2011 on donor coordination. • Inter‐donor water sector coordination led by the lead donor (currently Swiss Cooperation Office). • Coordination meeting of water sector donor project implementers, currently chaired by the WTF Secretariat. This will be taken up by the Inter‐Minister Water Council secretariat.
Performance Monitoring and Evaluation
Effective performance monitoring and evaluation is essential if water sector and institutions are to know whether they are on track to achieve their objectives, and are to provide information that can be acted upon to maximize performance levels. Monitoring and evaluation helps in improving performance and achieving results. In order to measure and assess performance towards attaining the water goals, systematic and sustained tracking and review of progress are important. The Government will do this through the Water Task Force for general water policies, WWRO for performance of regional water companies and Policy and Monitoring Unit of Publicly Owned Enterprises (MED) for performance of Board of Directors (BoDs). • •
• •
Through developing monitoring and evaluation mechanisms, the Government will: identify good and poor performance and their causes; hold stakeholders (departments, service providers, etc.) accountable for their performance in a transparent manner and where the performance of the Board members is defective or subject to a conflict of interest, to replace the Board members promptly and without compensation; focus institutional roles for assessing and acting on sector performance and a framework against which capacity building strategies and targets can be developed; achieve integrated performance data;
• • •
integrate performance measurement tools, e.g. operational monitoring, financial tracking, evaluation, etc.; improve information for assessing the effectiveness of policy and for enabling better policy making; develop a credible system for arguing for more resources for the water and sanitation sector and for allocating those resources.
Key National Water Issues 1. Water Quality, Quantity and Public Safety One of the toughest issues to deal with is coordinating water quality availability with water quantity demands. Many users have some common requirements for certain variables, such as energy, but each user will have its own demands and influences on water quality and quantity. Water quality and quantity demands of different users will not always be compatible. The activities of one user may restrict the activities of another. One user may demanddifferent water quality than the other one, or may lower the quality during its water use. Efforts to improve or maintain a certain water quality often compromise between the quality and quantity demands of different users. Bridging the entrenched interests will require considerable discussion and negotiation among all those with a stake in the outcome.This is largely true when it comes to water rights, where central and local level may have noticeably different approaches and interests. The Government is attentive to the fact that Kosova needs to ensure the continuing safety of the current 5 large water impounding dams, explore future water resources development as well as decrease the non‐revenue water in order to amend the water quantity demands. Also, the Government is aware that lack of wastewater treatment negatively affects water quality in Kosova and may impact water quality of neighboring countries. The relentless river mining also seriously endangers water quality. The Government considers that the following projects, as indicated by MESP, are within the top priorities of the sector: ‐
Dam safety assessment, monitoring and rehabilitation
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Assessing the need and development of water resource infrastructure
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Protecting surface and underground water from pollution
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Rehabilitating and expanding the public water supply network
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Wastewater treatment and disposal
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Prohibition of river mining
The completed list of priority investments for a 20 year period shall be part of the Water Strategy, which will be completed within 2014. Also, the Government encouragesMESP, as custodian of water resources, to compilea comprehensive water census/inventory before meaningful progress can be made in integrating water quality/quantity planning. Since water supplies are regional in nature, such discussions and planning must occur regionally. River Basins District Authority and Regional Water Companies are instrumental in supporting this.
Lastly, MESP should re‐evaluate water permits, withdrawal, and abstraction charges, guaranteeing that truer water pricing will have a beneficial effect on conservation. However, such an evaluation must take into account all intended and any unintended consequences from such a measure.
2. Linkages with Other Sectors “The human right to water is indispensable for leading a life in human dignity. It is a prerequisite for the realization of other human rights”,United Nation’s Committee on Economic, Social and Cultural Rights. The above statement seems very obvious. Water has a profound impact on the development of energy, agriculture, manufacturing, mining,urbanization, tourism, as well as general well‐being of the population.None of these holds any meaning if the water resources are depleted or polluted. Water is the key ingredient to the general socio‐economic development of the country. The growing demand for water use and the increasing need to improve water quality has led the Government to recognize the importance of water sector.The inter‐dependence of economic development on multiple sectors, e.g. energy, water, agriculture, manufacturing, etc. is clear and the Government will encourage greater cooperation and coordination between the relevant Ministries and sectors. A reliable, affordable, and sustainable water supply will be critical to attract and maintain socio‐ economic developments, and ensure continued economic viability and job growth in various sectors.
3. Surface Water and Ground Water
Problem Statement(s)
Surface waters of Kosova are threatened from overuse, lack of management, river mining and pollution from domestic and industrial wastewater discharge. Upstream use and pollution is affecting the quantity and quality of the downstream flow. The monitoring network for surface waters is incomplete and unreliable to generate sufficient, quality data. Similarly, we are not aware of the impact from the uncontrolled withdrawal from groundwater aquifers in recent years, i.e. the decline of groundwater levels. The indiscriminate use of groundwater wells for residential or industrial use has been due to the failure of water utility providers to improve and expand their service areas. Aside from the excessive abstraction of groundwater, there is no national groundwater data network to speak of, in the sense that we do not know how much groundwater is available and of what quality it is. River mining has bloomed beyond control in the past decade, mainly due to economic reasons and due to lack of considering alternative source of aggregate supply. There is no a standardized systematic procedure for calculating a volume of material that may be extracted from a river and that can be replenished naturally (replacement volume).
Policy Recommendation(s)
Policy Statement: Water resources monitoring network ‐
MESPshall expand and improvethe monitoring network of surface waters and to develop groundwater monitoring network and management, in order to establish a coherent and
comprehensive overview of water status within each River Basin, as required by Law. These will need to be operational by 2015. Policy Statement: Water resources evaluation and planning ‐
MESPshall the free‐issued Water Evaluation and Planning (WEAP) model, when issuing water permits, and assessing and planning water resources.
Policy Statement: Water resources abstraction ‐
The Government aims at a better protection of water resources from over abstraction and from pollution threats. MESPshall introduce a more robust system of licensing for water abstraction (for both ground and surface waters) specifying abstraction limits and quality control requirements. In addition we shall propose greater powers of environmental regulation to ensure that such license conditions are being adhered to and to grant appropriate enforcement powers. We shall complete the legal framework accordingly.
Policy statement: Water resources protection from pollution ‐
The Government aims at ensuring that all the country’s water resources are protected from pollution threats. We shall request the MESP to investigate the introduction of a more robust system of environmental protection and compliance with international agreements specifying standards of wastewater discharge quality and granting greater powers of enforcement, including fines and, in extreme cases, criminal prosecution. We shall amend the existing legislation other legal instruments accordingly.
Policy statement: Polluter pays concept ‐
The Government supports the polluter pays concept. We shall request the MESP to investigate how this concept can be best applied in Kosova through a mix of statutory and price mechanisms.
Policy Statement: Wastewater treatment facilities ‐
The Government will co‐finance wastewater treatment projects in sites approved byMESP. MED, through RWCs, will be responsible for the construction, operation and management of these facilities. The Government will ask from MESP and MTI to ensure that all existing industries install mandatory industrial wastewater treatment plants in their facilities by 2020, whereas all new industries are obliged to have mandatory wastewater treatment facilities.
Policy Statement: Dam safety ‐
The Government shall immediately assess the current situation of the 5 large dams in Kosova, rehabilitate and install instrumentation where appropriate; undertake carrying a detailed assessment of their spillway capacities to pass extreme floods safely, assess seismic risk and stability and introduce formal procedures through new legislation to ensure routine safety monitoring and reporting is undertaken in the future by suitably trained local experts for all the large dams.
Policy Statement: Water resources development and protection ‐
The Government will support MESP, directly or through donor input, to assess the need for developing new water resources, and will nominate such areas of ‘national interest’. The Government asks MESP to immediately allocate also the current 5 dams (Batllava, Badovc, Ujman, Radoniqi and Përlepnica) as areas of ‘national interest’, foremost the Ujman (Gazivoda) dam.
Policy Statements: Accession with Water Framework Directive (WFD) ‐
The Government supports the management of water resources based on river basin principle, and calls for MESP to characterize surface‐ and ground‐waters within each river basin in accordance with the procedure set out in the WFD by 2015.
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The Government requests that MESP maintains control of all pollutant emissions and discharges into surface waters, based not only on the overall quantity of a given pollutant, but also on its concentration in the receiving aquatic environment (this to be secured by 2015).
Policy Statement: River mining prohibition ‐
The Government prohibits river mining for an indefinite period. Current mineral licenses holders that operate in river mining shall, in cooperation with MESP, identify and execute mitigation measures which favor processes of natural regeneration or recovery, diminishing negative impact on the environment. In order to meet market demands for such aggregates, in particular sand, the Government encourages alternatives sources, such as quarry operators.
Policy Statement: Ecological acceptable flow ‐
The Government supports the ecological acceptable flow concept: minimum river flow is essential and has to be maintained for sustaining ecosystems and human activities downstream.
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The Government promotes water saving and conservation in order to preserve the functionality and the regeneration capacity of ecosystems upstream and downstream. Enough freshwater has to be preserved for ecosystems to maintain their biodiversity. Overexploitation of ground‐ and surface water resources must be avoided.
Policy Statement: Registration of groundwater wells ‐
All publicly owned and privately owned groundwater wells (or boreholes) should be registered with the new MESP to monitor withdrawals, abstractions, and consumptive uses; and collect withdrawal and abstraction water permit fees
4. Water Regulation1
Problem Statement(s)
Kosova aspires to join the European Union and recognizes the need to harmonize its legislation with the acquiscommunautaire. The Government recognizes that a proper legislative water framework is a defining element of good water governance, and appreciates that the quality of legislation influences socio‐economic development, as well as the easement for EU accession. The current legislative framework calls for clearer specification of institutional responsibility in the water sector, thus avoiding cross‐legislation inconsistencies. The Ministries have primarily dealt with drafting and amending legislations. The latter has often been done without any prior assessment of the weaknesses of existing laws and has also delayed the completion of secondary legislation. Implementation and enforcement continue to pose a challenge. This is partly due to lack of awareness as well as resources but also incentive mechanisms, whether at the inspector level or in the courts.
Policy Recommendation(s)
Policy Statement: Database of water related legislation ‐
The Government assigns the Kosova Environmental Protection Agency (KEPA) to create a public web‐based database for water legislation (including secondary legislation) and keep it up to date.
Policy Statement: Enforcement and implementation ‐
The Government encourages all water related stakeholders to strengthen Inter‐institutional cooperation, in order to achieve better enforcement and implementation of legislation.
Policy Statement: Secondary legislation ‐
The Government requests that all Ministries sponsoring water related legislation shall complete relevant secondary legislation no later than two years after the related law is promulgated.
Policy Statement: Preparedness for EC water acquis ‐
The Government requests from the Ministry of European Integration (MEI) in cooperation with relevant institutions to complete legal, administrative and institutional assessment and identify regulatory actions for further approximation to the EU water acquis, prepare a draft Strategy and Action Plan for the approximation of Kosova water legislation with EU water acquis.
5. Water Utilities
Problem Statements6
Consolidation of water utilities has been based on river basin management principle and their incorporation has been based on corporate governance principles. The Government established Board of Directors for each of the utilities, and the performance of this first batch of Board of Directors indicates there is clearly a need for improvement. One indicative problem is lack of involvement in the utility operations, a challenge that has been recently tackled by the Government by allowing for equal municipal representation in the Board of Directors for RWCs. The revenue collection is still quite low and the non‐revenue water is still high. These directly affect the quality and quantity of water supply provision to customers. Low revenue collection impedes the future work on improving the network as well as the investments on wastewater treatment. Non‐ revenue water and water losses directly impact on the quantity of water used and water saving, particularly during drought period. All this contributes to the financial sustainability of the regional water companies, which given the overall investment needs for improving the water and wastewater sector amount to an estimated value of 1.25‐1.5 Billion Euros, poses a real challenge to achieving satisfactory performance for the customers.
Policy Recommendations
Policy Statement: Support to consolidation and incorporation of RWCs
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The Government shall continue to support the incorporation of the existing seven regional water utilities, and with consider the possibility of further consolidation in the future depending on the market demand, lending agency expectations regarding economies of scale and the principle of water resource management according to the river basin district concept.
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See also 6.5
Policy Statement: Autonomy of regional water companies The Government shall aim to consider the regional water companies as autonomous business entities, neither centrally‐ nor municipally‐managed, and will support them to become financially sustainable, customer and market oriented businesses. The Boards of Directors shall be independent, free of Government interference and act solely in the interests of the company and its customers. Where conflicts of interest exists or arises, the Board members shall be replaced. Policy Statement: Infrastructure development charge
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The Government calls for municipalities, in cooperation with WWRO and RWCs, to consider the application and collection of a water infrastructure development charge in addition to the municipal infrastructure development charge (for roads, drainage, street‐lighting etc.). The water infrastructure development charge would need to be a regulated fee subject to the approval of WWRO.
Policy Statement: Water supply has priority over wastewater service development
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The Government places an equal priority on water supply and wastewater services development, but recognizes that the level of wastewater services, however, is currently so low that it is unrealistic to expect compliance with any specified standards for many years. Consequently we shall adapt wastewater discharge quality legislation to temporarily exempt wastewater service providers from environmental liabilities until such time that the necessary infrastructure for wastewater treatment is installed. Priority investments shall be made in water supply services sector. Eventually, priority investments shall be made in wastewater treatments that are necessary for compliance with international environmental obligations.
Policy Statement: Protection of water supply and wastewater infrastructure assets and services
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The Government intends to grant powers to the service providers to be able to instruct the cessation of any activity that adversely affects the quality of water supply services detrimental to health. These powers shall extend to any activity that may damage or impair the assets of the service providers. We shall amend legislation accordingly including effective appeals mechanisms
Policy Statement: Maintaining drinking water quality
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One of the priority investment areas shall be the development of improved water treatment facilities where water quality is currently very poor. In addition service providers shall be required to develop suitably equipped and staffed water quality testing facilities and undertake regular tests in accordance with internationally accepted best practice. Government supports the introduction of new drinking water quality legislation shortly based on the current EC Drinking Water Directive, but recognized the implications on water companies and customers regarding the funding of capital investments required to upgrade water treatment plants and replace and extend underground infrastructure and therefore intends to introduce the new standards over a reasonable timescale (3‐5 years) to allow time for the investments to be made.
Policy Statement: Full service coverage with a wholesome and reliable water supply
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The Government’s intention is to ensure that all residents in all urban and also in rural areas whenever technically and economically feasible, are provided with a wholesome water supply, 24 hours per day and at reasonable pressure by 2020. It is not cost effective to supply all rural
areas and some remote rural areas will need to rely on individual (private) supplies for the foreseeable future. Policy Statement: Integration of rural water systems into RWCs ‐
In order to ensure adequate management and to enable compliance with applicable water quality and service quality standards all existing individual water supply and wastewater systems in rural areas shall be integrated into the designated Service Area of the respective RWC. The time schedule for integration of rural systems shall be planned and implemented by RWCs taking into account the costs involved for as‐needed upgrade and operation of each individual system, with the ultimate goal of having all existing systems integrated by 2018. At the same time, all new rural systems within the RWCs` service areas shall be planned and developed by respective RWC responsible for the area where the systems shall be developed.
Policy Statement: Efficiency and tariff expectations ‐
The Government expects the service providers to improve their operational efficiency. To this end we expect the regulatory framework to be based upon continual efficiency improvement expectations but matched by reasonable tariff increases to ensure the companies can shoulder an increasing amount of the investment needs from their own resources rather than rely on donations and earn a reasonable return on capital. We require WWRO to introduce within their pricing systems mechanisms that reward improvements in efficiency.
Policy Statements: VAT tax ‐
The Government aims to exempt Value‐Added Tax on capital equipment used for water and wastewater infrastructure in order to promote and encourage the protection of the country’s water resources as well as investments in improving water and wastewater services to its population.
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The Government shall similarly exempt VAT on the supply of water services by a public authority. [Alternatively, the RWCs shall pay VAT on revenues collected and not on the billed invoices].
Policy Statements: Involvement of the Private Sector ‐
The Government is committed to ensuring the water utilities operate efficiently including supporting a possible future significant role for the private sector if this can help to achieve this objective. However, any measures for introducing Private Sector Participation (PSP) must be appropriate to Kosova and the current state of the water sector but could cover simple outsourcing of activities (e.g. leakage control or revenue collection) as well as higher risk arrangements including long term concessions, etc.7
Policy Statements: Performance of Regional Water Companies
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The Government is interested in efficient and customer focused performance of the water and wastewater services sector and so decides to introduce performance based permanent contracts for executive management of RWCs, as well as performance agreements between
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Outright divesting of assets (“privatisation”) is not considered an option for Kosova. It must be recognised than higher risk PSP options bring their own challenges and risks and PSP is not a panacea for solving all the entrenched problems and inefficiencies currently affecting the water utilities. To be attractive to private investment the sector will probably need to be further consolidated into at most 3 or 4 RWCs and continue to be regulated independently. The appropriate PSP solution adopted only after detailed investigations of all the advantages and disadvantages including the implications for tariffs and levels of service and the right choice of PSP will require considerable effort if it is to be successful and sustainable from the operators’ and the customers’ perspective
MED and the Board of Directors to ensure equal performance by the directors of the boards. The performance criteria will be based on the independent performance indicators and actual measured performance developed by WWRO through their Annual Performance Reporting activities.
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The Government recognizes the importance of involving municipalities in the water services sector and calls for further strengthening this cooperation. However the role of WWRO in setting tariffs and representing customers will need to be maintained and strengthened (e.g. wastewater tariff setting, regulatory accounting, strengthening RWC absorption capacities, etc.) in accordance with existing legislation.
Policy Statement: Revenue collection
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The Government commits to support mechanism that will improve revenue collection and invites the municipalities to support the water companies.
Policy Statements: Social cases The Government recognizes the obligation to attend to social case and therefore decides the following solution: ‐ Every registered social case shall formally register too as a customer of RWC operating in their area, i.e. install a water meter, receive regular bill, and other duties assigned to such customers. ‐ Social category customers need to furnish evidence on their status review every 6 months. ‐ Customers with social case status shall be allocated an average consumption of households in Kosova, i.e. 18 m3/month, free of charge. ‐ Every m3 spent over this amount shall be paid at regular price [or} If the social case customer spends more than this amount, he is automatically removed from the scheme. ‐ The financial losses of regional water companies through this scheme shall be offset when calculating and paying for the income tax. Policy Statements: Illegal water service connections and unregistered abstractions of water ‐
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The Government recognizes that there are excessive amounts of unregistered public and private groundwater wells (boreholes) and illegal drinking water service connections throughout Kosova. The Government will make these violations criminal offences and grant enforcement powers to the new MESP inspectors for the groundwater and surface water abstractions, and to theRWCs for the illegal water service connections, and to the Kosova Police for both. We will adapt the legal framework accordingly.
6. Vital Next Steps
6.1 Climate Changes
Climate change is causing increased weather instability, leading to more frequent, deeper and persistent droughts as well as more intense rainfall and flooding resulting in greater property damage and greater infrastructure maintenance. The Government will: ‐ assess the country’s vulnerability and adaptation capability to climatic change ‐ formulate contingency plans for the management of responses to natural disasters, extreme climatic events (e.g. prolonged droughts) and other emergencies
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encourage rainwater harvesting and impounding and prioritize the development of surface water resources to relieve stress and pressure on groundwater.
6.2 Water Security
The western valley of the country is rich in ground water. Central and Eastern Kosova is relatively short of water. The central plateau has the largest concentration of population and industry, andoffers the best prospects for industrial development. The Ujman (Gazivoda) reservoir in the north is the most important reservoir, bringing water to the central plateau through the Gazivoda/ Ibër canal. With economic development now under way, the government has attached priority to water management, as lack of water security is often proving a hurdle for investments. Water (in)security will create incentives and disincentives for specific economic activities in particular geographic areas, which will influence both the structure of the economy, and hence have an impact on overall growth. Therefore, the Government ‐ aims to attain water security in order to achieve sustainable development, growth and poverty reduction, and commits itself to the development of appropriate water institutions and properinfrastructure management that will support growth. ‐ pledges that every effort will be made to ensure that the costly mistakes of the past are avoided in the future. ‐ shall learn from the good practice guidelines from countries with water security that need to be applied in a pragmatic way to ensure Kosova attains water security
6.3 Transboundary Cooperation
All rivers and streams in Kosova lead to international waters. Looking into it from the topographic aspect, the whole territory of Kosova is divided in four river basins which have dictated the flow of waters in the direction of the three seas: Adriatic Sea (Drini i Bardhë basin), Black Sea (Ibër and Morava e Binçës basins) and Aegean Sea (Lepenc basin). The most part of rivers belong to the basin of Black Sea (50.7%), and remaining to Adriatic Sea (43.5 %) and Aegean Sea (5.8 %). The transparency and exchange of information are key issues in achieving integrated water resource management, particularly when dealing with transboundary waters. The Government requests from MESP and MFA to undertake the preparatory work for ratification of transboundary treaties/ conventions, namely:
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International Commission for Protection of Danube River (ICPDR),
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Convention on the Protection and Use of Transboundary Watercourses and International Lakes (UNECE/Helsinki Convention),
6.3 European Integration
The Government is aware that the environmental chapter is the largest and most demanding in the negotiation process towards EU accession, and enormous investment, particularly in the water and wastewater sectors, is required to bring standards in Kosovaup to those in the European Union, particularly the Western part. The estimated sum is massive and very large compared with investment efforts over the last ten years, Adopting an EU Commission assumption that every €1 of donor funding is matched by €6 of investment by national governments or private companies, total investment in the water sector over the
last ten years was significantly lower than the future requirement to bring water and wastewater up to scratch8. The Government is also conscious that water is not the only area where major investment is needed, and has to compete with several other sectors for donor funds. Therefore, the Government is committed to show progress not only in political and economic integration but also by creating a suitable market framework, in order to facilitate investments in the water and wastewater sectors. Also, the Government shall continue and consolidate reforms in the water sector, specifically in tariffs, commercialization andliberalization (i.e. to introduce competitive pressure, without necessarily involving privatization), in order to attract foreign investments.
6.4 Human Resources Development
Kosovalacks sufficient expertise in various water sector profiles, e.g. groundwater management, water resources development, dam management and safety, erosion and flood control, wastewater design and management. Donor technical assistance on institutional support and trainings have not compensated for these deficiencies. There is a need to prepare new generations of experts that will be ready to take and meet the challenges in the EU accession path. The Government recognizes the need for capacity building support to put the policies described herein into practice.The Government will task MEST, in cooperation with other relevant institutions, to develop a water sector capacity development strategy, that will identify existing potential of experts and define the shortcoming and urgency of new expertise. The Government should develop and implement a process of continuous professional development for managers and technical staff of the RWCs and government institutions by introducing water resources and water supply management into the curriculums in the Engineering Faculties at several universities. However, where the skill requirements are very specialized e.g. dam safety, appropriate overseas training courses should be used.
6.5 Private Sector Participation
The 2012 water companies’ performance report of WWRO indicates an overall yearly improvement of the water companies, but also establishes that there remain a lot of challenges ahead, for the performance to be up to standard. There has been noticeable improvement in water supply service coverage (78%), but without parallel investment in water production this is resulting in greater suppressed demand effects of water rationing and supply disruptions. The water losses (non‐revenue water) are at around 80 million m3 per year (58% of overall water production), unacceptable when supply to customers is less than continuous (i.e. 24 hour supply). Overall collection efficiency has also improved, but is still at 70%. The RWCs need to improve this, in order to meet their level of service and investment obligations, as well as to pose as serious partner to private investor. At the current rate of progress near full service coverage for water supply could be achieved in less than ten years. Wastewater coverage rates(only recorded in detail since 2009), comprising only collection services, are at around 56%.There is an overwhelming need to expand the wastewater networks and develop modern well‐functioning wastewater treatment and disposal facilities. There is only one wastewater 8
A separate study has been conducted to establish exact amount of investments, and historical investment trends in the water sector over the period 1999‐2012.
treatment plant in Kosova, in Skenderaj. Kosova needs substantial external capital investment in the sector with the support of the development agency community and private sector participation. Hence, the Government is open to private sector participation in a clearly defined regulatory framework, and shall strive for successful combination of private and EU funding in reaching the national and EU development, cohesion and environmental goals.
Listof Abbreviations BoDs EC EU MED MEI MESP MEST MLGA MFA RWC VAT WFD WTF WWRO
Board of Directors European Commission European Union Ministry of Economic Development Ministry of European Integration Ministry of Environment and Spatial Planning Ministry of Education, Science and Technology Ministry of Local Governance Administration Ministry of Foreign Affairs Regional Water Companies Value Added Tax Water Framework Directive Water Task Force Water and Wastewater Regulatory Office