1. Supporting Data for a KfW Financed Investment Project on the Montenegrin Coast 18 May 2017, Wien●

2. VODACOM
Vodacom is a joint service and coordination company for water and wastewater services for the Montenegrin Coast
Government of Montenegro
Municipality Tivat
Municipality Kotor
Municipality Bar
Municipality Herceg Novi
Municipality Ulcinj
Established on 29 March 2005

3. Approximation to EU standards in the field of environmental protection
Vodacom’s role
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
Approximation to EU standards in the field of environmental protection

4. Water Supply and Sanitation Adriatic Coast
Phase II
2006 – 2009
Phase III
2009 – to date
2004 – 2005
Phase I
2010 – to date
Phase IV
5 Municipalities
Phase V
2015 – 2017
Phase V-2
2016 – 2020
Water Supply and Sanitation Adriatic Coast

5. What are the benefits that Montenegro will gain from implementation of this Project?
Reaching EU standards in the field of environmental protection
Ensuring proper wastewater disposal aimed at long term economic development with a special focus on tourism development
Rehabilitation of the existing and construction of the new water supply system
Higher quality of bathing water, reduction of pollution in marinas and environmental protection in the coastal region
The Project is a is a marketing tool and a precondition for greenfield investment and a positive international image of the tourism industry
Reduction of losses in the water supply network
Raising collection efficiency for the services performed
Ensuring a year-round water supply
Modernization and optimization of the performance of local water utilities
Balancing the quality of water supply and wastewater disposal services in the coastal region

6. How we started?
Training of Vodacom’s staff within a capacity development project financed by KfW, 2005;
The First Regional Benchmarking Workshop in Montenegro regarding the water and wastewater sector organized by Vodacom, 2006;
Collection, analysis and processing benchmarking data, and reporting on monthly, semi-annual, and annual basis;
Systematic and permanent improvement of benchmarking database from 2002;
Gradual increase of the number and quality of data and performance indicators;
Organization of regular annual benchmarking workshops from 2006.

8. Different stages in the work on benchmarking
Production of benchmarking reports
(monthly,semi-annual, annual)
(Vodacom)
Monitoring
(ViK-Municipality)
Data verification and comparison
(ViK-Vodacom)
Setting and defining goals
(ViK)
Data Collection
(ViK)
Calculation of performance indicators of the ViKs
(Vodacom)
Analysis and Data Processing (Vodacom)

9. Benchmarking as a VIK’s management tool
Informing management on performance results;
Preparation of plans, reports;
Decision-making;
Facilitated operations with stakeholders (Municipalities, Ministries, KfW, Vodacom, beneficiaries, etc.).
Operational and strategic planning ;
Easier setting and monitoring of the goals and tasks;
Identification of strengths and weaknesses of the internal business policy;
Detecting opportunities and threats of external factors;
Continuous comparison of performance results;
Improvement of business processes.

10. Benchmarking instrument of cooperation within the sector
contributes to the exchange of information - data, experiences and dissemination of good practices;
contributes to improving WUs performance efficiency in the with the aim of both improving their own performance and also providing modern public services;
Stimulates a climate of positive competition among the WUs;
develops openness and spirit of cooperation between the WUs;
contributes to the creation of a platform for full sector transparency.

11. Reliability of data – a current step in improvement

13. Application of Benhmarking in the WUs improves:
Annual work programs of the ViKs;
Business plans (3-5 years) and monitoring of fulfillment of goals defined by the Business Plans;
Promoting commercialization with gradual tariff reform so as to achieve full cost coverage (Tariff Studies);
Analysis of Financial, Technical and Commercial Indicators of the WUs;
Monitoring the performance of investment projects;
Strategic and investment plans, feasibility studies, master plans, terms of reference, statistical analyses, etc.;
Monitoring by a regulatory agency.

14. Investments Project outcomes
Permanent Institutional (capacity development program) support to WUs
Improved communication between local governments and their water utilities (WUs) in planning and implementation of investment priorities;
Raised level of assessment of justification of investment activities from the standpoint of technical needs, and also their impact on the service prices – tariffing;
Achieved a strong synergy effect with all participants in the project;
A positive impact on the planned development of networks in the municipalities;
Improved quality of design documentation, works, equipment, construction procedure and exploitation of facilities through implementation of FIDIC procedures;
Initiated procedure of standardization of equipment and materials;
Reached progress in defining regional interest in the Water Supply and Sanitation Sector;
Provided assistance and support to water utilities for implementation of international tender procedure.

15. “Let’s take initiative ourselves to make improvements, rather than waiting to be led by others.”