The National Water and Wastewater Utility Manual
(approx. 10 MB, .zip file)
(approx. 10 MB, .zip file)
The FOPIP project
The Ministry of Environment and Sustainable Development engaged to support the local authorities in creating strong and economically viable regional operators, in order to ensure not only a proper implementation of the projects with EU financing, but also an efficient management of the water and wastewater service systems. This was outlined as a priority within the Sector Operational Program Environment (2007-2013). The SOP also targets the creation of an efficient institutional structure, meant to implement and manage these services.
The FOPIP project was elaborated and implemented between 2005 and 2009. Its main objectives were:
- Supporting 21 water operators in Romania in the process of becoming operational, efficient and well performing from a commercial point of view, while ensuring the correct setting for the reorganization and restructuring processes.
- The timely identification of the institutional aspects that need to be revised, with the purpose of increasing the institutional capacity of the future beneficiaries of the EU financing process.
- Providing technical assistance for the central administration in order to disseminate the results obtained following the technical assistance provided to all the operators in Romania.
The 21 water operators were divided into 2 main categories:
- AT FOPIP: a group of 12 water and wastewater regional (stronger) companies and 12 local authorities, which benefited from technical assistance within the ISPA program. For these companies the Financial and Operational Performance Improvement Program was implemented.
- At Pre-FOPIP: a group of 9 water companies, which will benefit from EU financing from the Cohesion Fund. For these companies a financial and institutional pre-evaluation was conducted, and the respective counties were supported in developing their institutional and legal required background for obtaining future assistance. The Pre-FOPIP component was concluded in July 2007.
The project’s success can be identified within the following seven key areas:
- The institutional reformation process. The project developed an institutional structure and supported the authorities in establishing the Regional Operating Companies and the Inter-communitarian Development Associations and preparing the Delegation Contracts.
- Improved operational performance. All the companies developed a Assets Management Plan and a Non-invoiced Water strategy.
- Improved financial performance. All the companies have set a cost which must cover the tariff strategy, the financial forecasts and the business plan.
- Human resources management. All the 12 water companies have approved the new organization chart and the organization procedures. Also they begun implementing different tools for improving the efficiency of the human resources management activity.
- Focusing and modernizing the customer relationship activities.
- Implementing the informatics solution Management Integrated System.
- Training for the management team and providing assistance in the strategic planning and the decision making process.
The project granted technical assistance for 12 water and wastewater companies, on five performance improvement directions, guiding at the same time the local authorities in the decision making process in view of accepting and implementing the institutional structure for the regionalization process.
The project is being completed at this time by elaborating, with each company separately, a business plan for the next 3-5 years.This plan includes the strategic agenda for the new regional operators and serves as guidance for future actions. The business plan includes many of the lessons learned during the project transposed into strategies and actions.
The FOPIP project targeted CHANGE. The change of mentality regarding supplying services, customers relationship, strategic thinking and planning, development of strategies, accepting the new methods and tools and finally reorganizing the company. These changes required numerous and various social interactions and also accepting both successes and failures. Looking at it this way an important objective of this project was achieved: a real base for exchanging experience and ideas was set by creating a professional network between the 12 companies and the consultants.
One of the important deliverables of this project is The National Water and Wastewater Utility Manual which gathered the experience and lessons learned from FOPIP. This manual was prepared by the consultant and it included a background, proven procedures and success stories regarding institutional restructuring and regionalization, technical and financial benchmarking, guideline for project preparation, strategic development, organization development and human resources management, technical and operational management, tariff setting and financial management, customer relations and public relations. In summary, this manual includes all aspects considered of major interest for utilities/authorities that are either implementing an ISPA/PHARE/CF project or in the planning phase.
The manual was issued in English and Romanian during FOPIP workshop held in Covasna in December 2008. Comments from PCU, ANRSC and RWA were taken into consideration while developing this material.