Public Utility for water supply and sewage „Naissus“ Niš City of Niš, Serbia Local governments: helping each other?

The City of Niš, local self government has made a decision on delegating exclusive right to Public Utility Company "Naissus" Niš for collection, treatment and water distribution as well as waste water disposal on the territory of the City of Niš and part of the Bela Palanka and Babušnica municipalities. PUC Naissus Niš performs water supply and collection of the waste water for around inhabitants.

CategoryWaterSewageTotal (eur/m3) Households City budget Other consumers Babusnica  connections on water supply network  connections on sewage network PUC Naissus tariff (EUR/m3)

 Relations between the Founder, local government and the Company is determined by a Company Founding Act, Statute and Internal collective contract.  The Founder is obliged, according to the Law to:  Provide material, technical and other conditions for continuous business performance of the Company;  Perform supervision and control of the utility service performance;  Take over measures for activities improvement.

 The Company is entitled to organize work performance in such a manner to provide:  constant and uninterrupted utility services supply under the conditions and in a manner defined by the Law;  defined or contracted quality and quantity of utility services that includes deadlines, consumers safety and health and hygiene correctness according to the regulations;  taking measures for maintenance, development and protection of the utility facilities, plants and equipment, that serve for utility service performance;  development and promotion of quality and type of utility services, as well as promotion of the organization and work efficiency.

 Decisions and policy of the local self government concerning the price of provided services and investments, as well as defining organizational structure of the Company are of the key importance for efficient business performance.  General manager election represents one of the key factors of the successful business performance. A general manager with a vision for solving existing problems, company development and investments strategy represents a good choice.

 Within the framework of the strategic financial planning and promotion of the water supply sector, all states, regardless the level of their development, will have to invest significant finances in order to develop, modernize, maintain and manage companies that deal with water supply and waste water.  This is especially important when taking into account adjustment of the system according to the EU regulations and standards.  The key for solving previously mentioned is sustainable financing of the water supplying sector that has to be defined both on national as well as local (municipal) level.

 Correct tariffs setting for water supply and waste water collection and treatment is the most important issue.  Significant political control of both management as well as tariffs (without stable tariffs policy), and constant increase of the social category without adequate compensation from the local self-government are challenges that need to be solved in the future.

 The fact that basic tariff does not cover even regular maintenance costs, and the system requires not only maintenance but upgrading as well represents the biggest problem.  Local government does not have finances for investments and that is why compensation for capital maintenance and construction should be determined through well defined tariff.

 Inner factors that represent driving force of the water operators are employees through their engagements and constant trainings  Top management, general manager together with associates plays important role in defining strategic policy of the business performance  On the other hand, factors acting from outside of the company include professional associations, international institutions that contribute to knowledge exchange and gained experiences, especially concerning compliance with EU regulations

 Taking into account the fact that water is strategical resource of the 21-th century, correct water sector management is one of the greatest obligations both on the national as well as on local level.  Constant promotion of the business performance, provision of high quality services, infrastructure modernization and maintenance, are obligations need to be fulfilled now in order to have future generations enjoy basic human right for sufficient quantities of safe drinking water.

THANK YOU FOR YOUR ATTENTION