Competitive Grant 9:

Preparatory activities for the implementation of reforms in the area of utility services in Montenegro

Montenegro - Ministry of Sustainable Development and Tourism

 

Description of the activity

In 2013, the Government of Montenegro adopted a document entitled “Priorities in Utility Services – Reform Agenda”. The main objective of the reform of utility services is to establish a system of organizing activities in this area in such a way as to ensure effective, sustainable and quality utility services, since the current system has shown a lot of shortcomings, and because most local governments cannot adequately respond to all challenges in this area.

Measures proposed in the Action Plan are largely based on the solutions that must be defined by the new Law on Utility Services and by-laws, the drafting of which is planned in the second half of 2016 and in 2017. The by-laws that should be prepared need to create a legal basis for implementation of the reform around utility services. Therefore, the Ministry of Sustainable Development and Tourism, which is responsible for the area of utility services, requires assistance and transfer of the experience of other countries in the Danube region, particularly regarding the establishment of a regulatory body, establishment of benchmarking and a pricing (tariff) methodology at the national level.

Implementation of the activity

To draft the by-laws in the area related to the establishment of the regulation of water supply and sewerage services in Montenegro, the Ministry will establish a working group, which will be supported by the external experts. To draft the by-laws on establishing the national benchmarking, the Ministry will also establish a working group, which will work under the guidance of the external expert to ensure transfer of the experience of the other countries in the region. To draft the by-laws related to the establishment of a tariff policy and methodology, the Ministry will establish working groups to be supported by the external experts who will ensure transfer of the experience of the other countries of the Danube region.

Expected Results

The poject resulst inlcude workshops to present the experience of the Regulators from the several countries of the Danube region, guidelines for application of the national benchmarking as well as a tariff policy and methodology per the Law on Utility Services.