1. Leaders in the design, implementation and operation of markets for electricity, gas and water. Introduction to the IPA WWRO Support Project By Graham Cleverly: Team Leader/ Water Regulatory Specialist 18 th January 2006

2. 1.1 Presentation overview Purpose of Presentation: Objectives of the “WWRO Institutional Support Project”-especially those concerned with the waste sector Project Staffing details Project Expected Outputs Other related activities-waste sector review Summary

3. 1.2 Presentation overview (cont) Overview of WWRO Institutional support project: Funded by EAR Complementary to current EPTISA Consultancy project 20 months Contract Period −Started mid-September 2006 −Ends May 2008 Awarded to IPA Energy +Water Consultants (UK) in Consortium with: −MVV Energie (Mannheim, Germany) −Edinburgh Economics (UK)

4. 2.1Project objectives Project Objectives: 1.Strengthen and Implement WWRO organisational/ institutional issues including tariff setting and licensing Workshop here yesterday with water companies on tariff review 2.Strengthen technical knowledge of WWRO Including several waste workshops in July/September 2007 Waste collection/disposal companies are invited 3.Strengthen dissemination and Implementation process between WWRO, utilities and other stakeholders Eg this consultation process

5. 2.2 Project objectives (cont) Specific activities: Management issues and Technical/Financial Issues… A. Management support −Organisational support Introduce Management Board (as other Kosovo utility regulators) Review Organisational structure Support development of WWRO Budgets/ Business Plans etc −Twinning support/study tour Probably with the Portuguese water and waste regulator

6. 2.3 Project objectives (specific) Specific Activities (continued): B. Technical/Financial Support Solid waste handling (mainly workshops) Tariffs −Currently helping annual WWRO review of water tariffs, followed by waste collection and disposal tariffs −Current landfill benchmarking study Licensing issues Review of water and waste regulatory legislation −Regulation 2004/49 and Waste law/UNMIK Routine Reporting of Company performance Review of performance indicators and targets

7. 3 Project Staffing Team leader/ water regulatory specialist Graham Cleverly Long term staff Waste specialist Ben Purcell Long term staff Tariff/Financial specialist Bernd Pessel Short term staff Martin Steiner (waste) Keith Burwell (financial) Owen McIntyre (legal) Anthony Robson (QA) Vera Muhaxiri (financial/ performance monitoring) Nesim Osmani (admin)

8. 4 Project outputs (waste sector) Workshops −Topics under discussion, will include collection service contracts Study tour Tariff support −Includes benchmarking study of landfill unit costs (ongoing) Legislation −Review of Regulation 2004/49 and waste law and PSP options Reporting performance −Introduction/development of performance reporting regime (OFCR) −Review of KPIs and targets-based on OFCR data −Annual WWRO performance report on utilities- based on OFCR data

9. 5.1 Other current related activities (waste sector) Development of Terms of Reference (TOR) for a Consultant to undertake a fundamental review of the waste sector Funded by EAR Objective is to develop TOR for undertaking a basic review of the sector and make recommendations to ensure sector is viable All relevant issues to be considered TOR is a Joint activity between IPA and EPTISA Consultants Currently being developed −Workshop with stakeholders including waste collection utilities in Spring 2007

10. 5.2 Other current related activities (waste sector) continued TOR will cover: A fundamental review of waste collection and disposal issues with respect to good European practice including: −consolidation, incorporation, KLMC structure, Municipality role, affordability/social cases, billing/collection issues etc Recommendations for addressing problems including revised legal provisions TOR for possible TA support, programme, and costs

11. 6. Summary 1.WWRO Institutional support project Now underway; 20 month project (EAR) Includes water and waste activities Waste Focus is on tariffs, workshops, revisions to legislation and performance reporting issues Collaboration with all stakeholders including waste utilities, KTA and EPTISA 2.Waste Sector Review TOR Joint activity with EPTISA Will look at basic issues in waste sector Workshop with stakeholders planned in Spring 2007