WATER REGULATORY AUTORITY OF ALBANIA OVERVIEW ON ALBANIAN

WATER REGULATORY AUTORITY OF ALBANIA OVERVIEW ON ALBANIAN WATER SECTOR THROUGH ANALYSE OF W. R. A ARJAN JOVANI, VICE – CHAIR OF NATIONAL COMMISSION OF W. R. A FLORENCE, 28 NOVEMBER 2013

ALBANIA IS BLESSED WITH WATER……………… q All 39 rivers in Albania discharge 1300 m 3/sec water (8700 m 3/inh. /year) in Adriatic and Jonian Sea; Only 0. 8 % of this flow, it is used for drinking water. q The annual capacity of drinking water resources (wells and springs) is 654 million m 3 per year (550 l/inh. /day); q There approx. 600 water supply systems for 65 Municipalities and 304 Communes. 44 % of them are gravity systems q 91. 7 % of population have access in water supply system 64. 3 % of population have access in waste water systems There are working 5 WWTPs with capacity 350 000 p. e (11 % of population; q q

MAIN DATA OF WATER SERVICE IN ALBANIA: q In Albania are 58 water operators. (30 of them offer waste water disposal service and 5 of them offer the treatment of waste waters) q Local Governments Units are Owners of water supply and waste water systems. Water Operator are public administrators of them, q There are 12 big water operators with more than 10 000 clients (77 %) and 46 small water operators with less than 10 000 clients. q They cover 80. 8 % of population with water supply service and 51. 0% of population with waste water service;

PERFORMANCE OF WATER SECTOR THROUGH WRA EYES WATER REGULATORY AUTHORITY HAS APPROVED 10 KEY PERFORMANCE INDICATORS FOR MONITORING OF SERVICE QUALITY IN WATER SECTOR AS: 1 - Water supply Coverage by W. O 80. 8 % 2 - Sewerage Coverage by W. O 51. 0 % 3 - Total Cost Coverage 82. 7 % 4 - O & M Cost Coverage 106. 0 % 5 - Collection Efficiency 90. 9 % 6 - Non revenue Water 67. 1 % 7 - Metering Ratio 55. 1 % 8 - Hours of Supply 10. 8 % 9 - Staff Efficiency 4/10 empl. /1000 con. 10 - Drinking Water Quality 99. 0 %

WATER SUPPLY AND SEWERAGE COVERING BY WATER OPERATORS q Water Supply Covering by Water Operators in Urban Areas 91 % q Water Supply Covering by Water Operators in Rural Areas 57 % q Sewerage Covering by Water Operators in Urban Areas q Sewerage Covering by Water Operators in Rural Area CONCLUSIONS AND OUTLOOK: • INCREASING OF SERVICE AREA THROUGH REGIONALISATION OF WATER SERVICE • INVESTMENTS IN SEWERAGE SYSTEMS AND RURAL AREAS 83 % 11 %

COST COVERING OF SERVICE and COLLECTION EFFICIENCY : q 70 % of big Water Operators cover 100 % of O & M costs q 18 % of small &medium Water Operators cover 100 % of O&M costs q Only 25 % of big operators cover 100 % of Total Costs q 50 % of big operators cover more than 80 % of Total Costs q 15 % of small & medium Operators more than 80 % of Total Costs; q 64 % of big Operators have Collection Efficiency more than 82 % q 40 % of small Operators have Collection Efficiency more than 82 % CONCLUSIONS AND OUTLOOK: • REDUCTION OF NON – EFFECTIVE COSTS • JOINT OF SMALL OPERATORS WITH BIG OPERATORS DURING REGIONALIZATION PROCESS • IMPROVEMENT OF BILLING SYSTEM THROUGH DIGITALIZATION PROCESS • MONITORING OF BUSINESS PLANS from Water Regulatory Authority during TARIFF SETTINGS PROCESS

NON REVENUE WATER & METERING RATIO: q 60 % of big Water Operators have more than 50 % of NRW q 63 % of small&medium Water Operators have more than 50% of NRW q Only 30 % of big water Operators have installed more than 85 % of water meters q Only 12 % of small & medium water Operators have installed more than 85% of water meters; CONCLUSIONS AND OUTLOOK: • IMPROVEMENT OF TECHNICAL CONDITIONS AND MANAGEMENT OF SYSTEMS • INSTALLATION OF WATER METERS (SPECIALLY FOR WATER PRODUCTION) AND REDUCTION OF ILEGAL CONNECTIONS, • MONITORING OF WATER BALANCE BY WATER REGULATORY AUTHORITY,

STAFF EFFICIENCY OF WATER OPERATORS q Big Water Operators has 6 employers / 1000 clients q Small&medium Water Operators has 10 employers/1000 clients CONCLUSIONS AND OUTLOOK: • STRENGTHENING OF BUILDING CAPACITIES OF WATER OPERATORS • INCREASING OF STAFF EFFICIENCY • TRAINING OF STAFF • IMPROVEMENT OF LOGISTIC FACILITIES (COMPUTERS, SOFTWARE, EQUIPMENTS, ETC) • REGIONALIZATION OF WATER SERVICE

CHALLENGES IN THE FUTURE OF WATER SECTOR q Regionalization of Water Sector; q Strengthening of Building Capacities by Water Operators; q Monitoring of Performance of Service Quality by Water Regulatory Authority; (specially: Bussines Plans, Water Balance, Billing System); q Metering of water productions and consumptions (specially as first phase: water meter for production); q Transparence and Customer Protection;

THANKS! FALEMINDERIT! BLUE EYE, ALBANIA