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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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?

13. Monitoring of Business Plan_WU Kotor

14. 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%

15. Outcomes

16. 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