During 2013 and 2014, in cooperation with the state, entity, cantonal and local authorities, UNDP in Bosnia and Herzegovina prepared an analysis of the possibility for establishing a regulatory framework for tariff setting for water supply and sewage services. After several meetings and intensive exchange of views, the document has been developed with the recommendations for subsequent steps.

Based on these recommendations, UNDP in Bosnia and Herzegovina has launched further technical assistance in order to improve the overall situation in the water supply and sewerage sector and strengthen the required capacities.

The main objective of the study “Tariff Setting Methodology for Water Supply and Sewerage Services in Bosnia and Herzegovina” was to develop draft methodology for tariff setting for water supply and sewage services in Bosnia and Herzegovina. The methodology defines tariffs that will enable recovery of all costs, including operating and investment maintenance costs, as well as capital investments costs, if so decided.

The UNDP GoAL-WaterS (Governance, Accountability and Learning for Water Sustainability) programme supports equitable, efficient and environmentally sustainable use and protection of freshwater and marine resources. It helps identifying priorities and opportunities and addressing gaps and constraints in water and ocean governance by developing policy reform plans and action at national and local levels.

GoAL-WaterS provides flexible support to national and local authorities and partners, supporting the 2030 Agenda with an emphasis on Sustainable Development Goals 6 to “Ensure availability and sustainable management of water and sanitation for all” and 14 to “Conserve and sustainably use the oceans, seas and marine resources for sustainable development.” GoAL-WaterS builds on UNDP’s close working relationships with country governments and partners.  The support is delivered through UNDP Country Offices and partners, with strategic management and technical support provided through the UNDP-SIWI Water Governance Facility (WGF) and UNDP’s Water and Ocean advisors.

During the period 2016 to 2019 the ”Tariff Setting Methodology for Water Supply and Sewerage Services in Bosnia and Herzegovina” was tested in 4 pilot Water Utility Companies and additional 16 Water Utility Companies (but 2 overlapping) reviewed its principals and possible application within project of the Government of Switzerland MEG – Municipal Economic  and Environmental Governance. Out of 18 Water Utility Companies participating in MEG project 16 of them adopted the Tariff Setting Methodology as part of the achieved Public Service Agreements signed by both the respective local governments and the Water Utility Companies, and 10 of them already aligned the tariffs to the methodology or have met all preconditions and prepared all needed calculations and documents for the tariff change to be proposed to the municipal/city assemblies before mid-2020.

This website / infographic serves as illustration of the “Tariff Setting Methodology for Water Supply and Sewerage Services in Bosnia and Herzegovina”.