GOVERNMENT OF MONTENEGRO MINISTRY OF SUSTAINABLE DEVELOPMENT AND TURISM
Žabljak, March 22, 2018
Vision of the Sustainable Water Resources Management in the 21st Century FIRST DANUBE REGION BENCHMARKING WORKSHOP Tivat, March 24, 2018
PUBLICATION: VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY ŽABLJAK - TIVAT, MARCH 22-24, 2018
CONTENTS INTRODUCTION - GORAN JEVRIĆ .............................................................................................................................................................3 WATER RESOURCES - THE FUTURE OF MONTENEGRO AND THE PLANET ..................................................................................4 PHILIP WELLER: MONTENEGRIN SPRINGS HAVE A SIGNIFICANT POSITIONS IN THE REGION ...............................................................................6 PETER DANE: GOOD ORGANIZATIONAL CAPABILITY FOR SAFE, DRINKING TAP WATER ...................................................................................10 PATRICIA LOPEZ: AGGREGATION OF WATER COMPANIES IMPROVES THEIR EFFICIENCY......................................................................................14 ALEKSANDAR KRSTIĆ: SMART MANAGEMENT OF WATER RESOURCES IS OF A VITAL IMPORTANCE...........................................................................18 BENCHMARKING IS A CHANCE FOR COMPANY IMPROVEMENT ....................................................................................................20 STATEMENTS: MILO FIASCONARO...................................................................................................................................................................................22 HELMUT BLOCH ........................................................................................................................................................................................23 PHILIP WELLER ........................................................................................................................................................................................24 PETER DANE...............................................................................................................................................................................................25 SAŠA RADULOVIĆ .....................................................................................................................................................................................27 IVAN ŠPADIJER..........................................................................................................................................................................................27 IVANA VOJINOVIĆ......................................................................................................................................................................................26 MARIJANA ZENOVIĆ ................................................................................................................................................................................26 JURICA KOVAČ ...........................................................................................................................................................................................28 SANJA HORVAT..........................................................................................................................................................................................28 TÓTH GODÓ VALÉRIA ...............................................................................................................................................................................28 DARIUS BOR ...............................................................................................................................................................................................29 EMILIJAN MICEVSKI.................................................................................................................................................................................29 KATARINA PEJKOVA .................................................................................................................................................................................29 SANDA NASTIĆ ..........................................................................................................................................................................................30 ČABA ŠANTA ...............................................................................................................................................................................................30 DARKO MITRIĆ ...........................................................................................................................................................................................30 NEDELJKO ILIĆ ..........................................................................................................................................................................................31 SRĐAN KEVAC............................................................................................................................................................................................31 EVIS GJEBREA ...........................................................................................................................................................................................31 DORIAN XHELILI........................................................................................................................................................................................31 NADIRE VITIA ..............................................................................................................................................................................................31 SOKOL XHAFA ............................................................................................................................................................................................31
IMPRESSUM: PUBLISHERS: International Association of Water Supply Companies in the Danube River Catchment Area (IAWD) Regional Waterworks for the Montenegrin Coast Dnevne novine - Pobjeda PUBLICATION EDITORS: Vesna Šofranac, Editor-in-Chief Bojana Pejović and Kristina Jerkov
PROOFREADER: Aleksandra Nikitović PAGE LAYOUT DESIGN: Adi Kerović PHOTOGRAPHY: Dejan Kalezić PHOTO EDITING: Predrag Bošković/Nikola Bečanović PRINTED: Grafo Group CIRCULATION: 11.000
Goran JEVRIĆ
Director of Public Utility Regional Waterworks for the Montenegrin Coast
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY
M
ontenegro is a country with valuable water resources and manages it in a sustainable and highly precise and responsible manner. There are many events and decisions that confirm the thesis that Montenegro was acting visionary, when adopted the Declaration on the proclamation of Montenegro as the first ecological state in the world, 1991 in Žabljak. That is why we have decided, with our respected international partners, to organize in Žabljak first international conference on sustainable water resources management in the 21st century for the South East European countries, on the World Water Day, in order to confirm that Montenegro and the water sector are adopting the European system values. Water is the most valuable natural resource that we need to manage sustainably, because it is our most important “debt” to the future. We remember the times in Montenegro when the lack of drinking water on our coast was a major problem for the quality of life for local population, and we could not even think about the development of tourism. Therefore, it is important to emphasize on this occasion the vision of the Government of Montenegro to create preconditions for investing in infrastructure projects to improve the overall economic environment as a prerequisite for social development. That is precisely why our company
rightly took the epitome of the PROJECT THAT HAS CHANGED THE MONTENGRO. The regional water supply system is the largest and most important infrastructure project that was implemented in Montenegro after the restoration of independence in 2006 and in which a total of 107 million € was invested. Such an important investment that has been successfully implemented, after 2010, has contributed to improving the quality of life of citizens on the coast, but also that the inflow from tourism annually increases from 322 million € in 2007 to nearly a billion € in 2017, with foreign direct investments in just three prestigious tourist projects, such as Porto Montenegro, Luštica Bay and Portonovi being over two billion €. The question is whether in Montenegro we would have such economic progress on the Montenegrin coast if we still had a lack of drinking water? Our next commitment is to create a vision of sustainable management and further development of the water supply system, not only on the Montenegrin coast. That is why we are extremely grateful to our friends from the international organizations that have accepted us, the Regional Waterworks for the Montenegrin Coast because we cannot adopt new value standards without having the most successful and most developed for our role models. International Association of Wa-
ter supply Companies in the Danube River with its headquarters in Vienna, the World Bank, the European Bank for Reconstruction and Development and others are to thank mostly for this important gathering that held in Montenegro. Our common goal is that this conference becomes traditional and I hope that we will be good host for our dear business partners from other countries and a good example for the next thematic conferences. It is precisely the Benchmarking program that guarantees the improvement of the capacities of our companies, and in the Regional Waterworks for the Montenegrin Coast we aim to adopt the European system of values in the water sector and therefore we prefer cooperation with the most important water utilities from the EU countries. Nothing less important is our cooperation in the Western Balkans region because we are best understood and our common past should be our greatest strength to create our joint and fruitful future. It is up to the current generation of decision-makers to recognize the responsibility for a greater level of cooperation and mutual support in terms of adopting the European value system in the water sector. The Regional Waterworks for the Montenegrin Coast is sincerely committed to this goal and we are strongly developing our clearly defined vision of further development of the PROJECT THAT HAS CHANGED MONTENEGRO.
4
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY Conference and Benchmarking Workshop in Žabljak and Tivat
Water Resources - The Future of Montenegro and the Planet
M
ontenegro was a host of a great international meeting regarding the World Water Day this March. This summit gathered more than 80 representatives from of water management sector from the region and Europe, was organized by the Public Utility Regional Waterworks for the Montenegrin Coast, with the the the International Association of Water Supply Companies for Danube River Basin (IAWD) and European Benchmarking Cooperation (EBC), also with the support of the World Bank and the municipalities of Žabljak, Nikšić and Tivat Within this exceptional event, two programs were held: a conference „Vision of the Sustainable Water Resources Management in the 21st Century“, and the First Danube Region Benchmarking Workshop. For two days, on March 22 and 23 in Žabljak and Tivat, world reknown experts, representatives from of water supply compani-
es, regulators, institutions and international organizations from 12 countries from the region and EU member states, triggered discussions about very important topics not only in regional, but also at the global level. The association began on March 21 in the snowy city of Durmitor, where director of Regional Waterworks Goran Jevrić hosted a conference and workshop participants in a pleasant ambience of the Hotel “Žabljak”, with informal gathering with local specialties and music. The most significant group of experts in the field of water management of the Danube River basin, started on March 22 in Žabljak with benchmarking workshop. The participants firstly heard Aleksandar Krstić, head of Danube Hub at the IAWD and one of the key persons responsible for organizing this event. The workshop was officially opened by the General Manager of the Directorate for Waste Management and Development of the Ministry of Su-
5 JEVRIĆ AND ZENOVIĆ AWARDED
stainable Development and Tourism Dragan Asanović and IAWD leader Philip Weller. After presenting the possibility of linking water companies through the new information system and exchange of experiences, the conference was officially opened by a negotiator for Chapter 27 – Environment and Secretary in the Ministry of Sustainable Development and Tourism Saša Radulović. He pointed onto the “obligatory character of the vision of sustainable water resources management in the 21st century”. Weller considers benchmarking as extremely important, so the price efficiency of water utilities, greater participation of women and youth, and communal infrastructure in rural areas will be focus in the future. The executive director of the association of public water companies Aqua Publica Europea, Milo Fiasconaro announced that Regional Waterworks “due to its extraordinary results and importance” will become its full member. Patricia Lopez of the World Bank speaks of the importance of providing
good quality water in areas that have a growing population in a certain part of the year. Jevrić thanked international partners who decided to organize the gathering in Montenegro, and presented to the participants and guests a “project that changed Montenegro” through a short documentary about the emerging, past achievements and plans of the company. Expert for Chapter 27 Helmut Bloech said that “water legislation is crucial for the upcoming EU negotiations with Montenegro” and that “Montenegro must find a way to preserve its watercourses in the next 30 to 40 years”. Ivana Vojinović, Director-General of the Directorate-General for Environment in the Ministry of Sustainable Development and Tourism visited a meeting to hear the views of experts and the sector as an indispensable part of Chapter 27 in EU negotiations. Extremely dynamic agenda was continued with separate programs for representatives of water companies, regulatory agencies and ministries, where their knowledge and
By issuing a certificate to the benchmarking workshop and conference participants, the event was completed at the hotel “Magnolia” in Tivat. In addition, IAWD gave special acknowledgments to Jevrić “for the passion he has invested to show Montenegro and all its beaexperience were transferred by Nemanja Branisavljević from the Faculty of Civil Engineering from Belgrade, Maltae Martin from Barthauer Software, Jurica Kovač, secretary of the Loss Water Specialist Group from International Water Associations, Tomica Blažek from Koprivnica Water Supply, Anvi Dervishi from Benchmarking Platform for Kosovo and Albania, Xhelal Selmani on behalf of Kosovo regulators, Darius Bor from the Romanian Water Utility in Satu Mare and his colleague from Tirana Evis Gjebrea, as well as Sanda Nastić from Novi Sad, Petar Doroslovac from Subotica, and Valeria Godo Tot from Segedin. In the middle of the day, the participants of the workshop and the conference got out of snow-bound Žabljak to the sea, more precisely - in Tivat. Experiences and social exchanges continued on board, which led them through Verige to look at the part of the Kotor Bay, visiting the Perast Islands.
uties” and “the vision to promote dialogue and cooperation among water companies in the region and beyond”. The second prize went to Marijana Zenović, the chief engineer of the water production in Regional Waterworks for the quality coordination of the benchmarking workshop.
6
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY Philip Weller, Danube Water Program Coordinator of the International Association of Water Supply Companies for Danube River Basin (IAWD)
MONTENEGRIN SPRINGS HAVE A SIGNIFICANT POSITIONS IN THE REGION
i DANUBE WATER PROGRAM IS A PART OF WORLD BANK PROJECTS
First Danube Region Benchmarking Workshop
D
uring the meeting in Montenegro, water utilities were able to exchange positive experiences about their management and to share good practices that others can emulate. The good cooperation among Danube countries on issues related to water management is a positive model for the rest of the world. ● Danube Water Program is a part of World Bank projects. What is so important in connecting water supply companies in the wider region? Weller: IAWD was formed to allow water companies in the Danube region to share experience and learn from one another. The companies of this region need to benefit from the experience of other utilities and work together on common problems to deliver water services efficiently and in the best possible manner. Meeting together as they did in Žabljak allowed this exchange on critical issues of mutual impor-
tance (non-revenue water, energy and commercial efficiency etc.) to be shared together and for the best companies to pass on their experience to others who can benefit from that experience. The Utilities meeting in Montenegro were able to exchange positive experiences about their management and to share good practices
that others can emulate. ● Danube is very special and world-famous river. Could we say that the waters from the Danube basin rivers are also special (and why)? Weller: The Danube river is the most international river basin in the world and water joins the countries of the region together. For the good quality of water in the Danube region to be maintained the countries of the region need to cooperate and work together and exchange experiences. The good cooperation among Danube countries on issues related to water management is a positive model for the rest of the world. Montenegro has an important role in the Danube region as a headwater of many rivers flowing to the Danube. The fact that Montenegro is involved in the International Commission to protect and cooperatively manage the Danube River (ICPDR) is very helpful in ensuring that the Montenegro contributes to the cooperative effort to protect Danube water but also benefits from this cooperation.
■ STRATEGIES AND PRIORITIES
■ SUSTAINABILITY OF THE SOURCES
The water of Montenegro needs to fulfil multiple purposes and for these services of water to be provided it is essential that there be clear strategies and priorities established so that one use of water does not preclude another
Multiple uses are possible for water, but it needs to be clear that the use does not damage or diminish the quality. There is the possibility for various sectors to profit from water availability, but it is necessary that the strategies for use are ensuring the sustainability of the sources
7
8
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY Montenegro also has significant Karst systems with underground water resources that need to be protected as sources for the flow of water within the region. These water resources are especially vulnerable to da-
mage if not treated well and the care of managing that has been taken in Montenegro is of importance to other countries also. ● The watercourses of northern part of Montenegro – that belongs to Danube basin -
THE WATER OF MONTENEGRO NEEDS TO FULFIL MULTIPLE PURPOSES AND FOR THESE SERVICES OF WATER TO BE PROVIDED IT IS ESSENTIAL THAT THERE BE CLEAR STRATEGIES AND PRIORITIES ESTABLISHED SO THAT ONE USE OF WATER DOES NOT PRECLUDE ANOTHE
still has exceptional quality. It is better to be used for commercial purposes, or for regular use water supply of the population? Weller: The water of Montenegro needs to fulfil multiple purposes and for these services of water to be provided it is essential that there be clear strategies and priorities established so that one use of water does not preclude another. Clean water for drinking water purposes is especially valuable and it is necessary to ensure that other uses do not damage that quality. Multiple uses are possible for water, but it needs to be clear that the use does not damage or diminish the quality. There is the possibility for various sectors to profit from water availability, but it is necessary that the strategies for use are ensuring the sustainability of the sources of water and that the quality is maintained. ● How to preserve water sources in Montenegro, regarding global nature transformations because of the climate change? Weller: There is no questi-
First Danube Region Benchmarking Workshop on that climate change is taking place at the global level and it is essential that countries such as Montenegro put in place both adaption strategies to manage water under future stresses from climate change but also actively work to minimize the human contribution to Climate change. Ensuring secure sources of good quality water for the future is needed in Montenegro as in all countries and the efforts that have been taken to secure a good quality supply of water for the country for now and in the future are positive. It is also important that other development decisions do not take away future options by damaging the quantity and quality of water at present or in the future.
Montenegro has an important role in the Danube region as a headwater of many rivers flowing to the Danube. The fact that Montenegro is involved in the International Commission to protect and cooperatively manage the Danube River (ICPDR) is very helpful in ensuring that the Montenegro contributes to the cooperative effort to protect Danube water
9
10
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY
Peter Dane, Managing Director of the European Benchmarking Co-operation
GoodOrganizational Capability for Safe, Drinking Tap Water
C
omparison with similar water companies in other countries has the advantage that one can identify obvious performance gaps, find explanations and learn from good practices and innovations from colleague utilities. Water is essential to life; this does not only concern the local population, but also the many visitors and tourists who pass by and rely on the tap water. â—? What are a critical data
for water supply systems regarding benchmarking their capacities with others? Dane: Benchmarking is a management tool to improve water services. The type of data you need for it, fully depends on what you would like to improve. Is it about costs, then cost data will be critical. And is it about water quality, then it is about water quality data – samples and compliance with stan-
First Danube Region Benchmarking Workshop
dards. But in all cases, most important is the data quality, to be sure that what you measure and compare with others, also makes sense and people can trust the results and
conclusions. ● How helpful could be collecting qualitative and quantitative data on water management in one system that is used by water supply systems?
Dane: In the case of a bulk water supplier – delivering water to municipalities who further distribute and sell the water – one can think of two approaches.
IN A TIME WHERE WE SPEAK ABOUT WATER SCARCITY, CLIMATE CHANGES AND NOT TO FORGET THE EFFORTS TO REDUCE THE PLASTIC SOUP IN THE SEA AND THE OCEANS, IT REQUIRES STRONG ORGANISATIONS TO PROVIDE SAFE, TASTY WATER THAT PEOPLE PREFER TO DRINK INSTEAD OF BOTTLED WATER
11
12 In the first approach, the bulk water supplier collects data about its operations and makes a comparison with other bulk water suppliers. This can be helpful to get a better insight in how you are performing, but a practical problem is that not many bulk water suppliers to compare with exists in Europe. Despite of this, EBC could assist in bringing these utilities together to learn from each other. Another approach could be to not just consider the operations of the bulk water supplier, but the whole chain – so including the municipal water distribution systems. This would be quite an extra dataand co-ordination challenge, but it would enable to compare with many other integrated systems. � Comparing data through years also lead to the better understanding of use of different water sources. Could comparison of data from different countries help managers to make their companies more efficient – in terms of financial and water management? Dane: Indeed, it is helpful to monitor your own performance over time, to be able to compare with standards, to follow trends in performance and to decide if action needs
First Danube Region Benchmarking Workshop
2
APPROACHES EXIST FOR BULK WATER SUPPLIER – DELIVERING WATER TO MUNICIPALITIES WHO FURTHER DISTRIBUTE AND SELL THE WATER
to be undertaken in a specific area. An additional comparison with similar organisations in other countries has the advantage that one can identify obvious performance gaps, find explanations and learn from good practices and innovations from colleague utilities. This cannot simply be done by sitting behind your desk or a computer screen: it requires an intense interaction with colleagues, through workshops and exchanges, to better understand each other’s operating environment and to judge if interesting solutions at other companies can be succe-
ssfully implemented in your own situation. ● What are the main comparative advantages of Regional Water-supply Montenegrin Coast? Dane: Well, I think there are many ways that lead to Rome, and many ways to organise things, but it certainly has advantages to organise the specific task of managing water resources and treating them to safe, tasty drinking water through a specialised organisation of a nottoo-small scale. Water is essential to life; this does not only concern the local population, but also the many visitors and tourists who pass by and rely on the tap water, so there is a major interest. In a time where we speak about water scarcity, climate changes and not to forget the efforts to reduce the plastic soup in the sea and the oceans, it requires strong organisations to provide safe, tasty water that people prefer to drink instead of bottled water. I think that a company like the Regional Water Supply Company for the Montenegrin Coast is better capable of managing this task than several small sized local companies could do on their own.
13
14
A
s well as ensuring that tariffs are set at cost recovery levels, the aggregation or clustering of utilities is options to explore, as a means of improving utility operational performance and efficiency and reducing costs by clustering utilities in economically viable areas, to ensure future sustainability of required investments Ninety-five percent of Montenegrin watercourses are formed within the country which minimizes cross-border impacts on Montenegrin waters, but also engenders responsibility for the quality and distribution of water, which then flows into neighbouring countries. To reach EU standards and directive requirements, Montenegro will have to invest over â‚Ź640 million in the upgrade of water and wastewater infrastructure, while the revenues generated from water tariffs on average are not sufficient to cover operation and maintenance costs (operating cost coverage of 76% on average). As a result, operating costs are largely covered by national and municipal subsidies, and investments are funded by international loans and grants, complemented by subsi-
PATRICIA LOPEZ, World Bank Danube Water Program Leader
AGGREGATION OF WATER COMPANIES IMPROVES THEIR EFFICIENCY
First Danube Region Benchmarking Workshop
95
PERCENT OF MONTENEGRIN WATERCOURSES ARE FORMED WITHIN THE COUNTRY
dies from both national and local budgets. But the performance and efficiency of public utilities performance is also below desired level. As an example, the average collection rate at only 72% (State of the Sector Report 2015, World Bank), indicates that utilities have significant difficulty recovering bills, and non-revenue water at 59% which is higher than the regional average. ● What are the main recommendations from World Bank regarding sustainable water supply systems, especially in Montenegro? Lopez: A financially sustainable service provider is one whose revenues and other reliable resources cover full cost of service, including the future cost of replacing the existing infrastructure. Financial performance and operational efficiency are linked and stepping up in the ladder to financial sustainability creates a “virtuous cycle of performance” for service providers, by which ope-
640
rating, and maintenance costs start to be covered, and hence the provider can invest in operational improvements, as well as in expansion of the system and better services, and increasing revenues as a result. From a situation of low tariffs and low collections, to upgrade and expand water and waste water infrastructure in the coming period, Montenegro will need to: (i) secure additional financial sources to invest in upgrading the water and wastewater sector infrastructure; (ii) improve the efficiency and cost-effectiveness of water utilities (addressing issues such as high non-revenue water levels and collection efficiency); and (iii) implement sound cost recovery principles, as currently water utilities do not generate sufficient revenues to ensure proper maintenance and sustainability of even existing infrastructure. ● What are options to improve water supply in regions that have low possibility of finan-
MILLION EUROS IS GOING TO BE INVESTED IN THE UPGRADE OF WATER AND WASTEWATER INFRASTRUCTURE
cing the infrastructure given low revenues? Lopez: Whilst a part of the financing required for new investments could come from national budget and donor grants, service providers will need to secure the financing of operation and maintenance.
15
16
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY
As well as ensuring that tariffs are set at cost recovery levels, the aggregation or clustering of utilities is options to explore, as a means of improving utility operational performance and efficiency and reducing costs by clustering utilities in economically viable areas, to ensure future sustainability of required investments. A recent global study by the (World Bank Joining Forces for Better Services? World Bank) on utility aggregation processes at the global level, found that countries with smaller utilities on average (measured by population per utility) pursue aggregation processes (and frequently on a voluntary basis), to maintain or attain sustainability of service provision through improved economic efficiency. The study also found that most aggre-
gation processes with a policy framework (“mandated” from policy making institutions) have happened in countries where coverage is already high with the purpose of lowering the costs for services and aiming to achieve an improvement of operational performance (in which case they aggregation process was typically financially supported). Another finding of the study is that aggregation of utilities is also more predominant in countries where local governments are responsible for water supply system service delivery. ● We are aware that there is less water on the planet every day. How can we assure drinkable water for future generations – especially in Montenegro? Lopez: At the global level, groundwater is being depleted at a rate faster than it is being replenished. By 2025, about 1.8 billion people will be living in regions or countries with absolute water scarcity. A World Bank report (High and Dry: Climate Change, Water, and the Economy, World Bank) published in May 2016 suggests that water scarcity, exacerbated by climate change, could cost some regions up to 6% of their GDP, spur migration, and spark conflict. Montenegro has sufficient water resources, but they are unevenly distributed across the country. Ninety-five percent
of Montenegrin watercourses are formed within the country which minimizes cross-border impacts on Montenegrin waters, but also engenders responsibility for the quality and distribution of water, which then flows into neighbouring countries. The enforcement of integrated water resources management is essential to: (i) ensure the well-being of the Montenegrin population and improve further living standards, (ii) protect the strong natural heritage that is the foundation for environmental sustainability and tourism growth while taking advantage of its rela-
First Danube Region Benchmarking Workshop
ted economic development and managing risk of flooding and extreme weather events; (iii) help Montenegro achieve the EU acquis on environment and climate change and move toward EU accession. Montenegro has made positive strides in improving water resource management, notably in improving the environmental legal framework and in starting investments in sanitary waste disposal. But further improvements and enforcements are required, in relation to the management of water quality, wastewater and protection of water bodies that can
i MONTENEGRO WILL NEED TO SECURE ADDITIONAL FINANCIAL SOURCES TO INVEST IN UPGRADING THE WATER AND WASTEWATER SECTOR INFRASTRUCTURE, IMPROVE THE EFFICIENCY AND COST-EFFECTIVENESS OF WATER UTILITIES AND IMPLEMENT SOUND COST RECOVERY PRINCIPLES
positively impact public health, living standards and tourism potential. Better water quality and waste and wastewater management will require sustained investment in new and modern infrastructure. â—? Having water is a basic right. Why is it so important for water supply systems to invest all their profit back in own business? Lopez: Despite access to water being considered a basic human right, over 663 million people in the world still lack access to improved drinking water sources. In addition, increasing just access is not enough. The Sustainable Development Goals (SDGs) on Water and Sanitation proposes a broader agenda and higher standards that by 2030, by which access will be equitable, safe and affordable, with attention to women and vulnerable groups. Additional targets that go beyond access are also being considered, such as improving water quality by reducing pollution, and substantially increasing water-use efficiency. Reaching these standards will require financing of significant investments, and sustainable service providers. Water is at the centre of economic and social development; it is vital for human health, produce food, sustain the environment, and create jobs.
17
18
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY
Aleksandar Krstić, Danube HUB Coordinator
Smart Management of Water Resources is of a Vital Importance U nder the direction of the Ministry of Sustainable Development and Tourism, the Regional Waterworks for the Montenegrin Coast already achieves impressive results - despite the system is still being under construction. It is important that such successful companies take on a leading role, both in the promotion of the profession, and in the promotion of cooperation for improving the sector and the whole society.
Montenegro could be hosting soon a gathering of the most successful water and sewage companies from all over the Europe.
● How important is the connection of the countries within the Danube region through the cooperation of public water utilities? Krstić: Since we are witnessing strong economic, social, and even natural changes, when it is difficult to predict new challenges from any of these three areas of sustainable development, smart management of water resources is of a vital importance. The knowledge, skills and the experience needed to respond to all these challenges in a right time are beyond the boundaries of the states. These are particularly the case for relatively small countries, where the number of domestic organizations sharing their knowledge is limited, so international connections are the only
possible way of continuous modernization of companies in these countries. ● What are the main advantages of the Danube Learning Partnership (D-LeaP) educational platform? Krstić: Within the Danube Water Program, it has been noted that water companies and their national associations within the region are trying to solve the same problems by developing their own training systems. Inadequate coordination has led to substantial expenditure of national resources, mostly without achieving the desired results. D-LeaP has transferred the training process to an international level, in a way that training coordinates future deve-
First Danube Region Benchmarking Workshop
Under the direction of the Ministry of Sustainable Development and Tourism, the Regional Waterworks for the Montenegrin Coast already achieves impressive results despite the system is still being under construction. It is important that such successful companies take on a leading role
lopment within the national associations and even individual companies. Training and examples of best practices once developed are transmitted to the entire region, which speeds up the learning process. ● What are the main messages of the workshops for water supply companies and conference on Water Day, held in Žabljak and Tivat? Krstić: Under the direction of the Ministry of Sustainable Development and Tourism, the Regional Waterworks for the Montenegrin Coast already achieves impressive
results - despite the system is still being under construction. It is important that such successful companies take on a leading role, both in the promotion of the profession, and in the promotion of cooperation for improving the sector and the whole society. It can be said that the main message of the conference is that the future of our children depends on the way we use water today. The main message of the workshop is to invite leading companies to join us at the front of future protection.
● What are the next steps in co-operation with the Regional Waterworks for the Montenegrin Coast? Krstić: In 2016, the IAWD with Regional Waterworks for the Montenegrin Coast organized in Budva a benchmarking workshop for companies from the countries of former Yugoslavia. This year we have been organizing workshops for companies from all over the Danube Basin in Žabljak and Tivat. During both events, an exceptionally high level of quality has been achieved both in a professional and in an organizational sense. Thus, brought Montenegro together with hosts of similar meetings organized for the companies from Western Europe. Everything suggests that Montenegro could be hosting soon a gathering of the most successful water and sewage companies from all over the Europe.
19
20
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY
Aleksandar Krstić, Danube HUB Coordinator
Benchmarking is a Chance for Company Improvement
I
would shortly point out the difference between the benchmarking initiatives in the water and sewer sector that are being launched by different organizations.
In countries where the profession and work of the professionals are highly valued, it is often the case that the profession itself initiates benchmarking activities voluntarily, or that the companies themselves support and conduct benchmar-
king activities, most often with the support of their associations. This is benchmarking in the narrow sense, or “voluntary benchmarking”, which can span on several companies or almost all businesses if it has also the national character. Voluntary
First Danube Region Benchmarking Workshop
benchmarking aims to raise the level of performance of the involved enterprises. The second type of benchmarking is the one launched by the state institutions, especially those states that, having to fulfil the targeted standards, must quickly and organically improve the operation in the sector, especially the operation of those companies having the worst impact. This can be called “regional benchmarking”, and its goal is, first, to speed up the performance of companies that show the worst performance, without affecting the citizens. Consequently, in the process of European Union accession, almost all countries in the region, including Montenegro, have already established regulatory bodies that carry out economic and other types of supervision over companies. Finally, when the leading companies in one country are interested in reaching the highest international standards for the sector, such companies and their associations organize the so-called “international benchmarking”. The Danube benchmarking platform launched by the IAWD is exactly such an initiative, and the platform itself aims to bring together leading companies from 17 countries in the Danube Basin. I would especially like to mention that, thanks to the cooperation with the European benchmarking cooperation (EBC) which brings to-
gether the leading water and sewage companies from Western Europe, through the Danube platform companies could have the opportunity to compare their performance with the effect of companies from West European countries. This possibility is also somewhat available through national platforms, such as the platform for Bulgaria and the platform for Ukraine, but also through sub-regional platforms such as the platform for Albania & Kosovo and the platform for the countries of the former Yugoslavia. The advantage of national and sub-regional platforms is that companies can participate in benchmarking exercises in their mother tongue, or local language. The advantage of the Danube platform is that it enables the direct exchange of knowledge with companies from West European countries, such as Austria and Germany, as well as from other EU countries affected by the Danube basin, but also wider than that. In short, joining the Danube
Platform for International Benchmarking of Water Supply and Sewerage Systems, launched by the IAWD within the Danube Water Program, in cooperation with the European Benchmarking Cooperation (EBC), gives to the participants access to a network of leading water and sewage companies in the Danube Region, which helps further and faster improving the performance of the involved enterprises, especially through mutual learning and support. Furthermore, all companies from the region interested in demonstrating, discussing, exchanging and promoting good and best practices are welcome to join us and, in their own voice - coming from the sector itself, to contribute to the identification and development of strong, reliable and sustainable water utility companies within and outside the Danube basin. Anyone who is interested can search for all information about the platform and about the terms of connection to the platform via email: thedanubehub@d-leap.org, and information is also available on the Danube Learning Partnership website: www.d-leap.org Finally, I would like to point out that the leading companies are defined by the motivation to constantly improve their own services, as well as to support other related companies through the exchange of knowledge.
21
22
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY MILO FIASCONARO Executive Director of the Aqua Publica Europea In addition to the warm welcome I’ve received - and I’m grateful to the friends of the Regional Waterworks for their extraordinary hospitality my stay in Žabljak was a great opportunity to learn more about water management in Montenegro and, more generally, in the Danube area. I had the chance to learn about some of the challenges that you will have to tackle in water resources management in the coming years. I’m persuaded that Montenegro will have no problem in addressing them, because I met so many people from Regional Waterworks for the Montenegrin Coast, with a strong passion about their job, but also a clear vision on the future about the things to be done and a commitment to realise them. And I think this is true for many other utilities I met in Žabljak. The high participation of utilities from the Danube area – despite unfriendly weather condition – in conference on results of a transnational benchmarking exercise demonstrates the willingness of these utilities to constantly improve their performance – by comparing and learning from their peers – to offer the best service to the most affordable price to citizens. This is also the commitment of all members of Aqua Publica and I look forward to our future collaboration with other public utilities from all over Europe.
First Danube Region Benchmarking Workshop
HELMUT BLOCH Consultant for Chapter 27 and Expert in the Field of Water Management and Protection I believe that the organizers of conferences and workshops wanted neighbours to get closer to each other - Montenegro with Croatia, Bosnia and Herzegovina, Serbia, Kosovo, as well as with representatives of companies from countries such as Hungary and Romania. The whole event was successful. Presentations that could be seen at the workshop were of high quality - including the one from Montenegro - and the enthusiasm of all the participants was impressive. Most importantly, people felt as if they were at home, appreciated their arrival, but also what they wanted to publicly make their views and learn from each other. I am closely cooperating with the Regional Waterworks for the Montenegrin Coast and the Ministry of Sustainable Development and Tourism, so there will be another chance for me to return to Montenegro this year. Just before the end of June is expected to open Chapter 27 in negotiations with the European Union, which is an extremely important event for Montenegro.
23
24
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY PHILIP WELLER Danube Water Program Coordinator of the IAWD Montenegro is truly a wonderful country when it comes to its natural landscapes. During our stay at the workshop and at the conference, we witnessed some of its extremes. Since childhood I do not remember seeing this snow, as was the case with Žabljak. This has given rise to some problems but, on the other hand, most of us who have not been in this area were wonderful to have this winter landscape. As far as the workshop is concerned, I am very pleased with the conclusions we have brought from it. For me it is most important that people from the water supply companies of the Danube river basin are constantly in contact. This was a good opportunity for everyone to gather and share experiences. Water supply companies could, through presentations, see what their colleagues are doing and find out how some things can work better. I am also delighted that the state secretary of the Ministry of Sustainable Development and Tourism, Saša Radulović, then the President of Žabljak Municipality Veselin Vukićević and other representatives of the regulatory agencies and ministries participated in the conference. All of them are very important when talking about water supply and should be in constant contact. To sum up, there was a lot work to be completed, and there was little time. I bear great impression on the workshop and conference in Montenegro.
First Danube Region Benchmarking Workshop
PETER DANE Managing Director of the European Benchmarking Cooperation (EBC)
When it comes to the content itself, the workshop was extremely interesting. A few years ago, during the first such events in Priština and Belgrade, I was able to see how people started with benchmarking. Now I notice that people have progressed, in just a few years. In the presentations of their work, they are truly dedicated to improving the quality of services, which is very important. Changing the water supply system’s services is very difficult and even years are needed, so planning activities can not only be for a short period of time. People are very motivated to improve the system and at the workshop I’ve seen it harder to achieve that goal. Also, this was an exciting way for me. I missed a flight to Montenegro, and after that I arrived in the beautiful, inaccessible mountain ranges under the snow. On the other hand, the day later we were in the Boka Kotorska Bay, in Tivat, which says that this little country is full of great contradictions. That’s unbelievable!
25
26
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY MARIJANA ZENOVIĆ Leading Engineer for Water Production of the Public Utility Regional Waterworks for the Montenegrin Coast Public Utility Regional Waterworks for the Montenegrin Coast have been a participant of the Danube Water Program from IAWD since 2014, through the Benchmarking Project, which collects measurable data on the results of all activities in the organization. They are then compared with the data of other companies, which gives us the possibility of knowing where we are in relation to others. In the past four years, we have been trying to answer all the requirements set out by the project. That
IVANA VOJINOVIĆ Director-General of the Directorate-General for Environment in the Ministry of Sustainable Development and Tourism It was obvious in the moment of the decision to construct the regional water supply system was made - and especially today - that this project is an investment of a crucial importance for Montenegro. The construction of a 100
km long water supply network gave particular impetus for development of tourism in the Montenegrin Coastal Region, securing the stable water supply and influencing the overall economic development of our country.
is why we are very much able to continue our participation through the more demanding advanced level of the project. Apart from participating in the Danube Benchmarking Platform, where representatives of water utilities from South East Europe, Regional Waterworks for the Montenegrin Coast will probably also be included in the West European platform. This will also give the opportunity to compare their results and work with companies from that part of Europe.
First Danube Region Benchmarking Workshop
IVAN Ĺ PADIJER Technical Director of Public Utility Regional Waterworks for the Montenegrin Coast Apart from the theme of the benchmarking, which has become unavoidable in recent years in consultations on modern and sustainable management of water companies, the conference has been significant both in terms of exchanging experience and knowledge among conference participants. The presentations that tackled the requirements for service regulation, experiences on water sector reforms with the special attention paid to the agglomeration process, inclu-
SAŠA RADULOVIĆ State Secretary at the Ministry of Sustainable Development and Tourism
For me, the regional water supply system means reviving a sustainable idea, which results in creation of exceptional opportunities for development on the Montenegrin coast, apart from securing the essential prerequisite for life water. Regional Waterworks for the Montenegrin Coast in our country is a very good example that substantiates the theory of rarity, that is the
high quality of the management in the state-owned company. The Regional Waterworks is a vivid proof that the state may manage the resources that are assigned to it in a very responsible, professional way, that is in a good host manner. Additionally, the Regional Waterworks for the Montenegrin Coast represents an exceptional example of a socially responsible enterprise.
ding to the asset management, were organized as well. With respect to impressions of the participants, the conference exceeded expectations, given the fact that 80 participants from many countries and diverse companies - water companies and regulators - took the opportunity to actively exchange experiences and to establish contacts for future cooperation, both in terms of benchmarking and other matters that are of common interest.
27
28
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY JURICA KOVAČ Secretary of the Water Loss Specialist Group of International Water Association (IWA) Continuous multi-year implementation of benchmarking programs is an excellent example of how progress can be made in improving water supply companies in developing countries, as well as elsewhere where we have a po-
or water management quality management system. The workshop in Montenegro was one of the many well-organized meetings of people from the region and represents an important step in the efforts to improve the operations of our utilities.
SANJA HORVAT Manager of Wastewater Treatment Plant in KcVode Koprivnica, Croatia For us, the experiences of countries that are not in the European Union are very useful, because it shows us how neighbours are doing and what the problem which they are dealing with. We are in some way in favour of the fact that we have already passed the process of accession to the European Uni-
TÓTH GODÓ VALÉRIA Project Manager of the Water Supply Program of Segedin, Hungary We carry a good experience of such workshops and meetings with representatives of other waterworks. Also, we are extremely pleased with the benchmarking program, especially because we participated in this kind of
work for the very first time. Our company can now take advantage of all the quality data that colleagues have provided, as well as the knowledge of the lectures. We return home with very good experiences.
on, meeting certain standards. This also means that we have completed what is now present in Montenegro - opening a chapter on water resource related topics. On the other hand, the operational issues of water utilities are essentially the same and therefore it is useful to exchange experiences in this way.
First Danube Region Benchmarking Workshop
DARIUS BOR Financial Director of Apaserv of Satu Mare, Romania The key principle of benchmarking is to find the right approach, and to better understand the results that companies present, it is best to compare them in as many ways as possible. To have the opportunity
to do it with the results emerged through benchmarking companies from Western Europe, is an additional advantage that water supply companies should take. Benchmarking in which several companies are involved is good, but if a lot of them are involved it is excellent. The national level of comparison is also good, but regional or European is - extraordinary. So, “accept the benchmarking and you will be rewarded�.
EMILIJAN MICEVSKI Engineer in the Loss Detection Department of the Bitola Water Plant, Macedonia This workshop has helped our company to see how others are doing their business. I notice that it is like us, but the conference indi-
the items of water losses, the geoinformation system - GIS, as well as the management of the water systems we have heard about the experiences of our, Head of the Director General regional and other foreign systems, Cabinet of Water Supply and as well as international experts. Also, Sewerage in Skopje, Macedonia we have been connecting with new water utilities, such as the Regional Waterworks for the Montenegrin The experience of my colleagues Coast and the Water Supply System and mine is great, because this was a from Novi Sad. We already plan some workshop that was of great importan- common activities related to the topics ce to our company. I want to highlight we discussed during the workshop.
KATARINA PEJKOVA
cated that we will continue to make a special calculation of water resource losses in our system in the future. At the same time, we have introduced SCADA and GIS monitoring and control systems, and through them we can also register certain quantities of water losses. Anyway, this was a special event, and all that we learned at the workshop can be applied to our company.
29
30
VISION OF THE SUSTAINABLE WATER RESOURCES MANAGEMENT IN THE 21ST CENTURY from the region of the Danube Basin. For me, this is the tenth participation in such regional event, which is divided into workshops for regulators and those for water company representatives. I have presented how we can increase the efficiency of our company, so that they are in accordance with European benchmarking indicators. As for the whole event in Montenegro, this was certainly the best organization of the workshop so far.
SANDA NASTIĆ Head of Business and International Cooperation in Water and Wastewater of Novi Sad, Serbia I have participated in benchmarking workshops since the very beginning, since they are organized for members from countries of former Yugoslavia and
ČABA ŠANTA Deputy Director of Water Supply and Sewerage in Subotica, Serbia The benchmarking database that has been developed so far contains data that is comparable, and we can use everything that appears in them. You should carefully
DARKO MITRIĆ Executive Director in Bijeljina Water Supply and Sewerage, BiH The workshop is organized at an extremely high level. I am glad to have gathered so many people from our industry so that we could exchange our attitudes. For the Bijeljina water supply company, this
means a lot, because we recently got a water treatment plant. The benefits of such events are to gather information from other companies, to compare business with larger and smaller enterprises, and to develop new processes within our company. This means that what we have heard at workshops will be soon applied in our company. From good and bad practices, we will opt the best for us that lead towards improving our business operation.
follow these data and analyse them - not just look at the numbers but to know what’s behind them. Employees who are working on entering this data have at the workshops an opportunity to share experiences of their coverage. Our example is that we had investments of only 0.2 percent for reconstruction and this is a bad position compared to mandatory 1 or 2 percent, as we have heard from colleagues.
First Danube Region Benchmarking Workshop
NEDELJKO ILIĆ
EVIS GJEBREA
NADIRE VITIA
Benchmarking Coordinator of Water Supply and Sewerage Tuzla, BiH
Deputy Director of Water Supply and Sewerage Tirana, Albania
Coordinator for Albania and Kosovo benchmarking HUB
Representatives of Albania in Montenegro for the first time participated in workshops. We just became members of the Danube Water Program. This is just the beginning of cooperation and I am happy that many projects we are going to work together are ahead of us. Of course, we also expect future cooperation between our two countries Montenegro and Albania. The Regional Waterworks for the Montenegrin Coast has an advanced system compared to those in our country.
Comparison between utilities from two countries enables continuous improvement of services. Participation of leading utilities from Albania and Kosovo in the Danube HUB for benchmarking provides a new and useful perspective on the performance of our utilities and expands the knowledge base from which we can consider and plan further improvements.
I’m happy with the whole workshop and I’d like to thank its organizers. We have been participating in benchmarking workshops since 2016 and I hope that we will remain in it. Everything was great, and we carry the positive experiences that we will convey to our colleagues from our company.
SRĐAN KEVAC Main Controller of the Water Supply and Sewerage System of Banja Luka, BiH We are at this annual closing workshop for benchmarking for the fourth time. We are happy to take part in this project because it shows our year-round work and we get results here. This year we must commend an exceptional organization with a variety of programs, many good presentations and exposures. From colleagues we have managed to gather different experiences and good practices we hope that we will be able to implement in our companies and at the same time continue to expand our cooperation.
DORIAN XHELILI Water and Wastewater Administrator of Vlora, Albania I learned more about the benchmarking of water supply systems and companies on the workshops. I’m glad I had the opportunity to participate in this event. The knowledge I have acquired will share with my colleagues in the company, but also with those in the water supply companies of other cities in Albania, specifically Fire and Saranda.
SOKOL XHAFA Technical Director of the Pristina Water District, Kosovo The presentation of the Regional Waterworks for the Montenegrin Coast was excellent they presented everything they have done so far, the way of doing business, investments and how to solve the problems of water supply in the country. I can say that this is one of the most significant projects we have been listening to lately. In addition, Montenegro is a beautiful tourist country and we have seen many wonderful sceneries at Žabljak and Tivat.
31