Development of Capacities for Business Planning

14 July 2017, Skopje, FYROM

On 14 July 2017, ADKOM held the final conference of the Competitive Grant Project "Development of Capacities for Business Planning", which is organised by the International Association of Water Supply Companies in the Danube Catchment Area (IAWD) with financial support from the Danube Water Program.

The main goal of the conference was to support the Public Utility Companies (PUCs) for water supply in the preparation of the business plan and tariff adjustment plan. In the past period ADKOM held six regional trainings for 33 Public Utility Companies and provided direct support for six PUC in the process of preparing the business plan and adjustment tariff plan. After the presentations dealing with the implementation of the project and the problems faced by the PUCs regarding the preparation of their business plans and adjustment tariffs plans, further discussions highlighted the following significant topics:

  • Change of the accounting system in the direction of allocation of costs in the cost center
  • Significance of the business planning process
  • Key for allocation of common expenses, revenues etc.
  • Percentage of liquidity (proposal of the company itself)
  • WACC -transfer of own funds
  • Difference in prices
  • Maximum and minimum tariffs should be set by the company
  • How to determine the tarrifs and whether to limit the tariff to certain amount
  • Accessibility of the services (the total cost for the water services should not be greater than 3,2% of the revenues)

ADKOM will continue its activities by providing funds to PUCS to support the preparation of business plans and adjustment tariff plans.