A research project supported by the European Commission www.watertime.org A research project supported by the European Commission Contract No: EVK4-2002-0095 FP5: Energy, Environment and Sustainable Development Key Action 4: City of Tomorrow and Cultural Heritage Thematic Priority 4.1.2: Improving the quality of urban life December 2002-November 2005 The project results are the responsibility of the researchers and should not be construed as representing the views of the European Commission

National Context for Hungary Political changes Economic changes: From dominant state ownership to dominant private ownership No model Legal changes: Serving development of market economy EU harmonization Responsibility for local public utility moved to municipality

New role of municipalities Local legislator Price regulator Owner of the network Owner of the service provider company

Status of the water sector in the case study cities for households

Resources to cover costs Price increase New consumers Efficiency (reorganization, lay-offs) Public funding Loan

Watertime Final Workshop University of Greenwich 25 November 2005 Budapest

Watertime Final Workshop University of Greenwich 25 November 2005 Debrecen

Watertime Final Workshop University of Greenwich 25 November 2005 Szeged

Agreements on the service and the financing Watertime Final Workshop University of Greenwich 25 November 2005 Agreements on the service and the financing Budapest: municipality-MNC Debrecen: municipality-company company-bank with municipal approval Szeged: municipality- MNC

Price formula Operation Maintenance Profit for the owners/bank New investment

Operational costs Existing network (changing capacity utilization) Maintenance Management fee New network New treatment plant

Municipal responsibility Water service Sewerage Septic tanks Storm water/drainage

Watertime Final Workshop University of Greenwich 25 November 2005 Dynamic system