Institutionalizing the Business Planning strategy in Water Utilities of the Montenegrin Coast 18 May 2017, Vienna

Water Supply and Sanitation Adriatic Coast Project GoM KfW € 127 mil. loan € 19 mil. grant

Vodacom’s role in the Project Agency for implementation of infrastructural projects in water and waste water sector on the Montenegrin Coast Coordinator for raising organizational, technical and financial efficiency of the local water utilities

V Phases of the Project Infrastructure Investments Institutional capacity development Providing proper wastewater disposal system for the purpose of long term economic development and particularly tourism development Rehabilitation of existing and construction of new water supply systems so as to raise the quality of services that local water utilities provide to citizens and businesses Approximation to EU standards in the field of environmental protection

First capacity development program in 2006 Situation analysis WUs prepare only annual plans No decision making No systematic data collection-poor quality of data No action plans Resistance of management and sector to make long term plans Lack of controlling system No monitoring system by shareholders (Municipalities) First capacity development program in 2006

Vodacom as a coordinator Big investments should be made in water sector Capacity improvements of WUs were needed Employment structure Financial analysis Tariff structure Technical improvements Management of WUs Vodacom as a coordinator

Institutional capacity development Business Planning Institutional capacity development Commercial Efficiency Leak detection/ Reduction of NRW MIS Reporting/ Benchmarking Financial Management Accounting PR/Customer Relations Campain Operation and Maintenece

What is the Purpose of a Business Plan for the WUs? Strategic document Management tool for making decisions Defining the shortcomings of performance Pursuing defined goals and acivities Possibility to identify problems at an early stage Financial plan Investments plan Tariff adjustmensts Action plans Monitoring aspect

Vodacom as a coordinator Actions Form working group in each WU Coordination of activities Tariff adjustments Investment plans Improving communication between local governments and their water utilities regarding planning and implementation of investment priorities Difficulties Animate WU to make decisions, goals BP Define mission and vision of WUs Define strategic goal Develop a detailed action plans for each sector Monitoring Make BP as annual activity

Producing 3-5 year Business Plans serving as a company management tool for Vodacom and WUs Training staff to produce Business Plans through defining measures and activities for the planned period in order to implement defined goals Monitoring carried out activities defined by the BP Regular annual update of the BP by the management of the WU in coordination with Vodacom

Results Made guide for updating of BPs Financial model for financial planning Changed management staff of WUs Changed tariffs for water and wastewater services Reduction of NRW Improved collection and billing rates Trained staff Established monitoring system Ongoing support by Vodacom to five WUs

Monitoring of Business Plan Periodic monitoring Where are we? Achieved results Deviations (deviations from planned results/defined goals) What can be done to achieve desired results?

Monitoring of Business Plan_WU Kotor

Monitoring of Business Plan_WU Kotor Konto TROŠKOVI PLAN ZA 2014 UKUPNO OSTVARENO (jan-jun) OSTVARENJE % 52 Troškovi zarada, naknada zarada i ostalih ličnih rashoda 1,149,118.29 548,801.13 48% 520 Troskovi zarada i naknada zarada 999,168.29 475,102.01 521 Troškovi poreza na zarade i naknade zarada na teret poslodavca 128,000.00 62,046.87 522 Troškovi naknada po ugovoru o djelu 1,800.00 622.60 35% ? 526 Troškovi upravnog odbora 9,600.00 4,592.16 529 Ostali lični rashodi i nadoknade 10,550.00 6,437.49 61% Konto TROŠKOVI PLAN ZA 2014 UKUPNO OSTVARENO (jan-jun) OSTVARENJE % 51 Troškovi materijala 333,865.20 115,401.21 35% ? 511 Troškovi materijala za izradu 79,865.20 39,861.33 50% 512 Trošak kancelarijskog materijala, rezervnih djelova i sitnog inventara 13,000.00 3,888.02 30% 513 Troškovi električne energije i goriva 241,000.00 71,651.86 513000 Električna energija 200,000.00 56,950.49 28% 513300 Troskovi goriva 41,000.00 14,701.37 36%

Outcomes

Thank you for your attention Thank you for your attention! “Let’s take initiative ourselves to make improvements, rather than waiting to be led by others.” Sanja Bujisa Financial Analyst, Vodacom d.o.o., Tivat sanja.bujisa@vodacom.co.me www.vodacom.me