About

GWP’s VISION is a water secure world. Our MISSION is to advance governance and management of water resources for sustainable and equitable development.

OUR UNIQUE VALUE: GWP mobilises action on the global water crisis through a unique combination of social capital, shared values, credibility within the global water community, bottom-up orientation, and expertise. A network of networks, we ensure the ‘voices of water’ can inﬂuence local, national, regional, and global development priorities. We are committed to our role as a neutral convener and respected for our focus on inclusiveness and sustainability.

Learn

GWP creates and communicates information about integrated water resources management which contributes to improved water governance and, ultimately, water security.

Together with our Partners, we provide knowledge resources and capacity building activities for solving water problems.

Partner

Institutional Partners are the basis of GWP's multi-stakeholder partnership. A strong, diverse partnership can bring about the changes needed to achieve a water secure world. In this section, learn about the benefits of being a Partner and meet a few who already are. We invite like-minded organisations to join us!

GWP Regions

This is where you can find links to the websites of our Regional Water Partnerships (RWPs). RWPs are closest to the countries where we work. They share knowledge and learning across national boundaries and are expected to have an open, inclusive, and gender-sensitive policies for bringing together as wide a group of stakeholders as possible to solve water problems.

Slovakia: Development of accounts simulation for tariffs and effluent charges model in water and wastewater services (#243)

Following a decision to decentralise water and wastewater services, many questions regarding the sustainable financing of water and waste services was raised. Recognising that economic and financial conditions are critical to the effectiveness of various tariff and effluent charge reforms, a financial model (ASTEC) was devised. This case demonstrates the value of using economic instruments to support the implementation of IWRM management objectives.

Description

The management of water resources in Slovakia did not undertake any economic restructuring after political changes in 1989. The Government has had the responsibility to regulate, develop, and provide water services to all users, such as population, industry and agriculture. With respect to infrastructure development, the water and wastewater (W&WW) services were funded directly by the Government.

In 2003, the Slovak Government decided on the decentralization of state owned W&WW services and a transfer of assets to the municipal level. Decentralization threw up many questions regarding the sustainable financing of water and waste services. This situation became more acute with the adoption of EU legislation in 2004 which tightened rules and regulations regarding permissible levels of pollution and treatment.

Action taken

Recognizing that economic and financial conditions are critical to the effectiveness of various tariff and effluent charge reforms, a financial model (ASTEC) was devised. The ASTEC model simulates municipal W&WW accounts. This simulation includes separate accounts for drinking water and wastewater services and both financial and physical accounting for those services.

In ASTEC model, water customers can be divided into up to nine groups and distinguished by any dimension considered important by the model user. The ASTEC model helps give decision makers an overview of the financial health of the service, can help explain the reason for the financial situation, and can be used to develop alternative scenarios.

Lessons learned

Many water operators do not have transparent systems of bookkeeping and accounting practices.
These systems and practices are essential for developing cost-of-service pricing.
Municipal board representatives are unable to meet their responsibilities, unless they have access to information that clearly shows the financial condition of the operation in enough detail to explain why it is in that condition.
The board has a responsibility to ensure that the municipal water company does not abuse its position as a public monopoly.

Importance of the case for IWRM

Use of economic instruments supports to achieving the IWRM management objectives. Firm and clear regulation of tariffs set by water operators is one of the most important preconditions for the successful cost recovery policy.

In many cases, both regulators and water providers are not fully familiar with economic implications of changes, such as new investments planned to up-grade the technical performance of water utility, proposed increase in pollution charges, and changes in social and economic development of area provided by water. Application of models to simulate different scenarios might help to better decision on future development.

Page last edited: 7/31/2013