2013年-世界发展银行全球_Republic_of_Belarus___Municipal_Water_Sector_Review_99页_6mb

Summary of the Municipal Water Sector Review in the Republic of Belarus

Core Content

This report provides a comprehensive review of the municipal water and wastewater sector in the Republic of Belarus, focusing on institutional, organizational, technical, and economic aspects, particularly in urban areas. It evaluates current performance, outlines challenges, and proposes policy and operational reforms to improve efficiency and sustainability.

Main Views

1. Sector Performance

• Coverage and Quality: Urban areas have nearly universal coverage and continuous water supply at acceptable potability standards. Rural areas, however, still face coverage gaps.
• Technical Performance: Infrastructure is aging and oversized, with significant maintenance and operational challenges. Non-revenue water (NRW) levels are high, averaging 20–35%.
• Commercial Performance: Tariffs are heavily influenced by social considerations, leading to reliance on recurrent budget support and large customers for revenue. Cross-subsidization is prevalent, with a small percentage of customers accounting for most of the consumption and revenue.
• Financial Performance: Cost recovery ratios are generally low, with many utilities struggling to cover operating and capital costs. Operating subsidies are frequently used to cover losses, which hinders efficiency.

2. Legal and Institutional Framework

• The framework is well-defined but lacks sufficient operational regulation.
• Sector responsibilities are clearly assigned, but performance requirements for service providers are absent.
• There is a lack of performance indicators for benchmarking and assessing utility performance.
• The Ministry of Housing and Utilities (MHU) plays a central role, but local governments and utility operators require more autonomy and responsibility.

3. Infrastructure Status and Challenges

• Infrastructure is aging and oversized, with limited maintenance over the past two decades.
• Water demand has decreased significantly since 1991, leading to overcapacity and high maintenance costs.
• There is a need for modernization and alignment with European standards, particularly in wastewater treatment.

4. Sector Financing

• The government aims to eliminate operating subsidies and cross-subsidies by 2015, which will require significant tariff increases.
• A balanced financing strategy involving taxpayers and service users is necessary.
• The role of public development grants and local capital markets needs to be re-evaluated.

Key Recommendations

1. Develop a Policy and Legal Framework

• Foster Consensus and Support: Prepare a consolidated policy statement and a national sector strategy.
• Fill Gaps in Legislation: Update relevant legislation to support sector reforms.
• Leading Agency: Ministry of Housing and Utilities (MHU)

2. Increase Operational Efficiency

• Regionalization of Services: Create regional associations of local governments to manage utilities and achieve economies of scale.
• Benchmarking and Yardstick Competition: Implement performance-based contracts and establish clear performance indicators.
• Improved Social Accountability: Enhance transparency and accountability in service delivery.
• Private Sector Involvement: Encourage public-private partnerships (PPPs) to improve efficiency and capacity.
• Improved Business Planning: Strengthen planning processes to align with sector goals.
• Financial Reporting and Auditing: Establish clear financial reporting standards and auditing mechanisms.
• Energy Audits: Conduct audits to improve energy efficiency.
• NRW Management Teams: Form dedicated teams to reduce and manage non-revenue water.
• Metering Oversight: Implement block metering and improve metering oversight.
• Staff Productivity and Capacity: Rationalize staffing, introduce competitive salaries and incentives, and diversify competencies through certification.
• Leading Agency: MHU (except for financial reporting, which is under MOF)

3. Increase Efficiency of Infrastructure Development

• Rationalize Investments: Review and revise design criteria for infrastructure projects.
• Projects Appraisal and Prioritization: Develop clear prioritization criteria for funding requests.
• Increased Responsibility of Asset Owners: Strengthen the role of local governments in infrastructure financing.
• Leading Agency: Ministry of Architecture and Construction (MAC) and MHU

4. Financing the Development of Services

• Tariff Regulation and Subsidies: Regulate tariffs to ensure cost recovery and introduce performance-based tariff structures.
• Tariff Adjustment Options: Implement gradual increases (e.g., 10% annually for five years) to achieve cost recovery and reduce subsidies.
• Financial Model Development: Prepare a detailed financial model to support tariff policy analysis and investment planning.
• Leading Agency: MHU and MOF

Key Information

• Non-revenue water (NRW): A major challenge, with high levels in most utilities.
• Staff Productivity: Only 7 staff per 1,000 customers, far below recommended levels.
• Tariff Policy: Socially driven, leading to dependency on government subsidies and a few large customers.
• Infrastructure Modernization: Urgently needed to align with European standards and reduce operating costs.
• Regionalization: A key strategy to improve efficiency, reduce costs, and promote economies of scale.
• Financial Challenges: The government plans to significantly reduce financial support, requiring new financing mechanisms and tariff reforms.

Priority and Timeline

Conclusion

The water and wastewater sector in Belarus has made significant progress in urban areas, but major challenges remain in rural coverage, infrastructure modernization, and financial sustainability. The proposed reforms aim to improve efficiency, promote private sector involvement, and align the sector with European standards. A national strategy and legal framework are essential to guide these changes, while a focus on operational efficiency and investment rationalization will be crucial for long-term sustainability.