Extended institutional support to Apa Canal Nisporeni JSC in the water sector



Contract partner: MACS Energy & Water GmbH (ehemals: MACS Management und Consulting Services GmbH) Country: Moldau Funding amount: € 118.952,40 Project start: 15.10.2016 End: 14.02.2018

Short Description:

Overall goal


The objective is to ensure the 24-hour supply with potable water according to World Health Organization (WHO) and local standards for the population of Nisporeni, Vărzăreşti and Grozeşti under efficient and sustainable operation of the water utility Apa Canal Nisporeni JSC.


Expected results


The following are the expected results from the project activities:

* Apa Canal Nisporeni JSC staff is well trained and confident in operating and maintaining the new infrastructure. New staff is selected transparently.

* The non-revenue water (NRW) of the entire system is well under control; NRW and physical losses are reduced to a feasible minimum, also in the apartment blocks.

* Billing and revenue collection works well and a high collection efficiency is constantly achieved.

* Apa Canal Nisporeni JSC has determined true costs and obtained the endorsement of a cost covering new tariff approved by the respective municipal and town councils and ANRE (Regulatory Authority for Energy).

* The performance of the Apa Canal Nisporeni JSC is gradually improving:

a. Apa Canal is able to cover current expenses and drafts a repayment schedule for the working capital recently provided by an increase in share capital.

b. International accounting standards are being applied.

c. Apa Canal is performing all maintenance works on a regular basis according to a detailed Operation and Maintenance plans.

d. An Asset Management plan has been set up and respective provisions are made in the JSC budget.

e. Socially and environmentally sustainable and gender sensitive operation procedures.


Target group / Beneficiaries


The Technical Assistance (TA) directly benefits the staff (currently 43 persons) of the newly founded public Joint Stock Company "Apa Canal Nisporeni". The operator currently provides water 24/7 to approx. 15,700 persons in the Municipalities of Nisporeni, Vărzăreşti and Grozeşti out of a total current population of approx. 20,800. Indirectly, the TA also benefits other water operators in Moldova as well as the Ministry of Environment and of Regional Development by developing relevant competences. This regionally acting company is the first of its kind under the new water law 303 in Moldova, therefore its functioning has a role model character for the whole country.


Activities


The consultant will get familiar with the results of the previous project “Rehabilitation of the Water Supply System in the Rayon Nisporeni” during the first mission. This includes familiarization with the operating system, the newly founded JSC and the old Apa Canals, as well as the municipalities and consumers. After the following implementation phase, the Apa Canal Nisporeni JSC shall be ever more in a position to operate financially, economically and environmentally sustainable.


Context


The Municipalities of Nisporeni, Vărzăreşti and Grozeşti received support from ADA, SDC, the European Union, the Government of Moldova and the Rayon Nisporeni for the realization of the project "Rehabilitation of the Water Supply System in the Rayon Nisporeni: Municipalities of Nisporeni, Vărzăreşti and Grozeşti, Republic of Moldova" which was implemented in the period 2012 to 2016. In the framework of this project, a new regionally operating company, Apa Canal Nisporeni JSC, was established. While considerable capacity building and training support has already been provided in the project mentioned above, the newly created assets represent huge investments and the entire system is new to the JSC staff and all stakeholders. Also, a new and higher water tariff has to be approved in order to have a long-term sustainable re-financing of the operator. The JSC hence requires institutional and technical assistance to ensure technical and financial sustainability of the investments and the utility operation as such.

project number 8199-00/2016
source of funding OEZA
sector Wasserversorgung und sanitäre Einrichtungen
tied 0
modality Other technical assistance
marker
  • Policy marker: are used to identify, assess and facilitate the monitoring of activities in support of policy objectives concerning gender equality, aid to environment, participatory development/good governance, trade development and reproductive, maternal, newborn and child health. Activities targeting the objectives of the Rio Conventions include the identification of biodiversity, climate change mitigation, climate change adaptation, and desertification.
    • 1= policy is a significant objective of the activity
    • 2= policy is the principal objective of the activity
  • Donor/ source of funding: The ADA is not only implementing projects and programmes of the Austrian Development Cooperation , but also projects funded from other sources and donors such as
    • AKF - Foreign Disaster Fund of the Austrian federal government
    • BMLFUW - Federal Ministry for Agriculture, Forestry, Environment and Water
    • EU - Funds of the European Commission
    • Others - various other donors are listed in ADA’s annual business report.
  • Type of Aid – Aid modalities: classifies transfers from the donor to the first recipient of funds such as budget support, core contributions and pooled programmes and funds to CSOs and multilateral organisations, project-type interventions, experts and other technical assistance, scholarships and student costs in donor countries, debt relief, administrative costs and other in-donor expenditures.
  • Purpose/ sector code: classifies the specific area of the recipient’s economic or social structure, funded by a bilateral contribution.
  • Tied/Untied: Untied aid is defined as loans and grants whose proceeds are fully and freely available to finance procurement from all OECD countries and substantially all developing countries. Transactions are considered tied unless the donor has, at the time of the aid offer, clearly specified a range of countries eligible for procurement which meets the tests for “untied” aid.