Competitive Grant 8:

Capacity development for business planning

FYR Macedonia - Association of Public Communal Service Providers in the Republic of Macedonia (ADKOM)

 

Description of the activity

The Government of the Republic of Macedonia proposed a new “Law on the setting of prices for water services”, which has been adopted by the Macedonian Parliament in January 2016. The new Law requires, inter alia, that Public Communal Enterprises (PCEs) prepare Business Plans on a multi-annual basis and that these plans form the basis of a tariff adjustment system overseen by an independent regulator, who will be integrated into the current Energy Regulatory Commission. AS this law sets the preparation of Business plans as a top priority for the PCEs providers of water services in the country, this competitive grant project will deal with the Capacity Building in regards to Business Planning.

Implementation of the activity

Taking into consideration that different approaches for developing Business Plan exist, ADKOM will coordinate application of the same approach in each PCEs, based on templates and approach as approved by the Regulator. ADKOM will organize several technical capacity building workshops on business planning (with an emphasis on requirements of the “Law on the Setting Prices for Water Services”). Those workshops will be organized on country regional level based on agreed approach and templates as approved by the Regulator. It is expected that this activity will involve approximately 30 Utilities ADKOM will support six selected Utilities (from participating utilities in the capacity building workshops) in preparing draft business plans. Selection of those utilities will be by ADKOM selection committee (which will be established for the needs of the project), based on previously established selection criteria.

Results

ADKOM held six regional trainings for 33 Public Utility Companies (PUCs) and provided direct support for six PUCs in the process of preparing the business plan and adjustment tariff plan. Finally, ADKOM organized a final conference for presentation of the project results and an overview of the developed utility’s Business plans at country level.