1. Ministry of Regional Development and Public Works
ensuring inclusive services Prospects of implementing social tariff in Bulgaria
3 May 2018

2. Ministry of Regional Development and Public Works
What does the WSS sector provide?
Basic human right
Economic growth
Safe environment
Work places
Education and innovation

3. Ministry of Regional Development and Public Works
Limitations to universally inclusive services:
Significant investments
No investments – no universal access to safe water and sanitation services
Inefficiency of some technical solutions – need to balance of social and economic considerations
Tariffs – capped by social affordability issues
Taxes – unpredictable and scarce
Transfers – limited and conditioned on to many requirements
Highly qualified and experienced staff
In company: Capacity building, attractive remuneration, motivation and professional growth;
Across companies: standardization, guidance, cooperation;
Consumer orientation
Water as obligation, as well as right;
Participation;

4. Ministry of Regional Development and Public Works
The solution proposed with the new WSS Act:
Ensure sustainable and predictable funding – implementing the Sector financing strategy;
Promote investment efficiency – individual solutions, better planning, integrated approaches;
Support to vulnerable groups to “free” cap on tariffs and improve the financing mix;
Regulation – consultative approach;
Creating mechanisms to ensure the development of human resources in the WSS sector;
Capacity building, including international cooperation and exchange of experience;
Consumer oriented, participatory approach to service provision.

5. Ministry of Regional Development and Public Works
Tariff affordability for WSS services:

6. Ministry of Regional Development and Public Works
Water Supply and Sanitation Sector Financing Strategy:
Increase the cash-flow of the WSS utilities by improving their operational efficiency;
Maximizing revenues from tariffs while ensuring affordability for the vulnerable consumers;
Minimum water consumption guaranteed;
Support for installation and maintenance of metering devices;
Optimizing the capex cost through optimizing the compliance cost and prioritizing (postpone) investments and PPPs;

7. Министерство на регионалното развитие и благоустройството
Inclusive approach to financing the sector:
Tariffs
Taxes
Transfers
Investment needs
Full cost recovery, incl. depreciation and adequate renewal;
Predictable financial flows (fixed component); increased ability to draw on commercial capital.
Redistribution of revenue – “solidarity fee” accumulating a fund on national level;
synergies;
integrated planning;
Motivate specific changes in the sector – innovation, efficiency;
Social needs
Protection of vulnerable groups;
Flexibility – efficiency without sacrificing access: individual solutions, price discounts, etc.
The “solidarity fee” (+ other sources) accumulate predictable financial flow, mobilizing additional concessional or private funding to support struggling utilities
Financing of the funding gap, to avoid unaffordability of compliance;
mobilization of private capital

8. Ministry of Regional Development and Public Works
Consumer oriented service provision:
Information
– empowers and increases
Participation
– informs, improves and legitimizes policy and investment decisions
Responsible citizenship
– leads to continuous improvement
Monitoring and Control
– improves data, enforces rules

9. Ministry of Regional Development and Public Works
Thank you for your attention!
Malina Kroumova
Deputy Minister of Regional Policy and Public Works