1. DANUBE WATER UTILITY ASSOCIATIONS, OCTOBER 29 DANUBE WATER PROGRAM

2. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA STRUCTURE  DWP now  Structure  Results  Activities  Analytical and Advisory  Knowledge Sharing  Capacity Building  Competitive Grants  Key Questions for a Second Phase

3. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA

4. STRUCTURE

5. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA THE DANUBE WATER PROGRAM  TA program financed by Austria (4.5M €) and others (2.1 M €)  Supports WSS policy and utility reforms  Implemented jointly by the World Bank and IAWD  Started 18 months ago www.danube-water-program.org

6. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA CURRENT STRUCTURE  Component 1 - Provision of Policy and Regulatory Support to National Level Authorities  Bank executed  2.1 M USD  Focused on Ministries and regulatory agencies  Component 2 - Capacity Building for Water Supply and Wastewater Utilities  IAWD executed  3.9M USD  Focused on utilities and waterworks associations In practice joint implementation team on almost everything, with the bank leading AAA, IAWD leading capacity-building and knowledge sharing done jointly

7. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA PROGRAM ACTIVITIES

8. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA A Analytical and advisory policy work State of the sector study Review of aggregation experience of water and wastewater utilities Access and performance of WSS sector Social impact analysis of tariff reform in the WSS sector C Capacity development WSS association strengthening and support Pillar I: Sector governance and structure Regional support for WSS sector policies and governance Regional EU accession cross-support in water sector Pillar II: Regulation, tariffs, and subsidies Regional support for WSS sector regulation Pillar III: Benchmarking Regional performance indicators system initiative (DANUBIS.org) Benchmarking for utility improvement (EBC/Danube) Pillar IV: Asset management and investment Regional results-based asset management program for interested utilities Pillar V: Service efficiency improvement Regional results-based energy efficiency capacity-building program Regional results-based commercial efficiency capacity-building program S Knowledge-sharing platform Annual Danube water conference Participation in key regional events Development of communication platform Outreach to strategic partners REGIONAL ACTIVITIES

9. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA NATIONAL ACTIVITIES Geographic focus Analytical and advisory activities Benchmarking activities Competitive grant activities Sub-regional activities Support for regional EBC/Danube hub for Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, and Serbia Support for regional EBC/Danube hub for Albania and Kosovo Support for regional EBC/Danube hub for Moldova and Romania Strengthening the capacity of water utilities in Bosnia and Herzegovina, Montenegro, and Serbia through benchmarking Albania Support for the WSS sectorSupport for benchmarking activitiesFramework and business model for a Western Balkans Training Center Training course for business planning for water utility associations Bosnia and Herzegovina Support for benchmarking activitiesEditing of the technical rules and guildines of the DVGW (and translation into Bosnian language A geographic information system for the WSS network for efficiency improvement in East Sarajevo Bulgaria Utility benchmarking Croatia Support for Croatia’s utility aggregation process Support for sector regulation Support for benchmarking activities Kosovo Review of the policy framework for public-private partnerships Support for benchmarking activitiesDevelopment of a young professionals network FYR Macedonia Coordination of benchmarking and policy support activities Capacity development for utilities in the areas of regulation, efficiency, and quality Reduction of non-revenue water in public utilities commissions Moldova Retraining of members of the National Association of Water Utilities on operation of WSS systems Montenegro Support for benchmarking activities Romania Strengthening the capacity of the Water Training Center and water utilities Serbia Support for EU accession process in the WSS sectorSupport for benchmarking activitiesPerformance improvement of the water utilities in South Serbia Translation of the DVGW technical rules for training of trainers Ukraine Review of national water strategy’s alignment with EU directives Support for regulatory capacity building Support for a national EBC/Danube hub for Ukraine Improvement of the national benchmarking system in the WSS sector

10. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA RESULTS

11. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA RESULTS FRAMEWORK PDO LEVEL RESULTS INDICATORS Base- line Cumulative Target Values Projections based on WP 2012201320142015 1: target countries in which regulatory and policy recommendations have been discussed by decision makers. 0 Planned0 8 Challenging to achieve Actual 00 2: Operational Performance Improvement Action Plans or equivalent drafted by participating utilities. 0 Planned0 15 Expect to exceed Actual 0 0 3: Participating countries that have implemented and are using a sector information system to track utility performance. 0 Planned0 6 Expected to achieve Actual 01 4: Participating utilities that have defined and undergone at least one cycle of efficiency improvements monitored in the sector information system. 0 Planned0 10 Expected to achieve Actual 0 0 INTERMEDIATE RESULTS Component One: Developed regulatory and policy instruments for improved country framework conditions. 1: Sector regulation reviews conducted.0 Planned0 11 Expected to achieve Actual 00 2: Sector policy reviews (including identification of opportunities for Private Sector Participation) carried out. 0 Planned0 11 Expected to achieve Actual 0 0 3: Energy audits conducted for participating utilities.0 Planned0 15 Expected to achieve Actual 00 4: Participating utilities reporting performance data to the sector information system. 0 Planned0 20 Expected to exceed Actual 13 Component Two: Increased institutional capacity in participating utilities. 1: Policy makers, higher-level technical and managerial staff that benefited from cross-country capacity building activities. 0 Planned0 45 Achieved and exceeded Actual 85150 2: Utilities that have prepared business plans.0 Planned 15 Expected to achieve Actual 0 0

12. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA

13. ANALYTICAL AND ADVISORY ACTIVITIES

14. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA AAA – STATE OF SECTOR REVIEW  Regional Report  16 Country Notes  Context  Organization  Financing  Coverage  Performance  Challenges  References

15. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA AAA - OTHER REGIONAL ACTIVITIES  Affordability of services  And impact of tariff reforms…  Impact of regionalization  Hungary, Kosovo, Romania  Water Utility Performance Index  10 dimensions (coverage, service quality, efficiency, financials)  Aggregated index (0-100) measuring closeness to good practices

16. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA AAA - COUNTRY-LEVEL WORK  Sector Reform support (Croatia)  Cost Recovery Compliance (Serbia)  PBCs for NRW (Kosovo)  Sector Financing (Albania)  Sector Strategy (Ukraine)

17. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA KNOWLEDGE SHARING

18. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA 2014 DANUBE WATER CONFERENCE  140 participants, 20 countries, three days, 20 sessions, 30 presentations  An “excellent event, well organized, with very interesting and thought-provoking presentations—one of the rare conferences where you have a chance to hear something new, from really relevant people.”

19. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA  An online repository of resources for and about water and sanitation utilities in the Danube region  Based on WB’s IB-Net platform and data from national institutions in each country  Data on 250+ utilities from 14 countries over 15 years, plus recent news, events, research etc.  200 users from 50 countries in 400+ sessions

20. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA OTHER RESOURCES  Website  100+ visits a day  Information and materials from program activities  Brochure  Fresh off the press  Newsletter  Three times a year

21. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA CAPACITY BUILDING

22. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA CAPACITY BUILDING  About 70+ utilities  With national partners  Training fee  8 Regulators  Policy makers Asset Management1 hub18 utilities4 countriesMid-way Energy Efficiency3 hubs21 utilities6 countriesMid-way Utility benchmarking4 hubs27 utilities8 countriesLaunched Commercial Practices3-4 hubsPending Starting

23. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA ENERGY EFFICIENCY PROGRAM  33 utilities from 6 countries participating and paying for Program  3 day Training held in Sofia, Bulgaria and Training Materials Prepared  Energy Efficiency Plans in Preparation  Funding for Actions sought

24. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA UTILITY BENCHMARKING - EBC Support utilities in learning from each other’s best practices and international benchmarks  Program Managed by European Benchmarking Foundation on behalf of DWP (for Danube region) targeting 40 Utilities

25. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA ORGANIZATION AND METHOD  Regional benchmarking programmes with local hubs supported by EBC for:  Bosnia-Hercegovina, Croatia, Macedonia, Montenegro, Serbia  Albania, Kosovo  Bulgaria  (Ukraine)  Standardised methodology & room for local customisation  Discussing draft results and understanding PI’s  Annual Meeting opportunities to exchange results / good practices between different benchmarking networks

26. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA INDIVIDUAL COMPANY REPORTS  “dashboard” presentation of results and detailed comparisons for each utility  to check data & identify performance gaps

27. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA ASSET MANAGEMENT  A Knowledge Hub (Belgrade Waterworks) to Improve Asset Management  18 Utilities in four countries in the region – Bosnia and Herzegovina, Serbia, FYR Macedonia and Montenegro  Main objectives:  Sustainability of a reliable network asset register  Provision of both operational and management reports  Output to be used in conservation and infrastructure planning (by performing network optimisation and rehabilitation planning)

28. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA COMMERCIAL EFFICIENCY  Training and Capacity Building to Support Business Planning and Commercial Efficiency of Utilities  Consultant Selected – Valu Add Consortium  Targeting 5 countries (Ukraine, Moldova, Macedonia, Kosovo and Montenegro)  Forty Utilities – Development of Business Plans – 15 utilities implementing Business Plans  Timeline October 2014 to October 2015

29. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA REGULATORY TRAINING  Theory and Practice  Partnership with recognized institutions (PURC, Universities, REKK)  Practitioners (participants and beyond)  Focussed on specific issues  Good practices in public utility regulation  Regulatory Benchmarking  Florence (Nov. 2013) / TBD (2015)

30. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA COMPETITIVE GRANTS

31. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA COMPETITIVE GRANTS  Under IAWD’s responsibility  71 application, 14 recipients  700,000 € distributed  Average size 50K €  Most activities on-going Examples:  Technical training and education for utilities staff in Moldova  Benchmarking for utilities in Bulgaria  Translation and use of DVGW good practice guidelines in Serbia and Bosnia and Herzegovina  Development of a non- revenue water management strategy for a utility in FYR Macedonia  Etc…

32. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA FULL LIST  Improvement of National Benchmarking System in Ukraine – National Commission for Public Utilities Regulation  Training of Managers, Engineers and Members of AMAC – Moldova National Association of WSS Utilities (AMAC)  Strengthening the Water Training Centre and Water Utilities to Boost Operation Practices - Water Training Centre – FCFPPDA (ARA) (Romania)  Benchmarking in the Bulgarian Water Sector – Bulgarian Water Association  Improvement of Water Management Through Business Performance and Forming Association – PUC Naissum Nis (Serbia)  UTVSI DVGW Technical Rules for Drinking Water Supply – Assoc. for Water Technology and Sanitary Engineers (Serbia)  Editing Technical Rules for Drinking Water and Wastewater in Bosnian Language – VIK Sarejevo (BiH )  Development of GIS for Water and Sewage Network of East Sarajevo – UC Waterworks East Sarejevo (BiH)  Capacity Development for Improvement of Performance of Water Utilities: Regulation, Efficiency and Quality – Macedonian Water Utility Association (ADKOM)  Reduction of NRW – PUC Vodovod – Kumanovo (FRY Macedonia)  Development of Young Professionals Network – SHUKOS (Kosovo)  Developing a Framework and Business Model for a Western Balkans Training Centre – SHUKALB (Albania – Western Balkans)  Development of a Training Course for Business Planning for Water Utility Associations – SHUKALB (Albania – DWP Region)  Strengthening the Capacity of Water Utilities in the Region with Benchmarking of Key Performance Indicators – P.E. Vodovod Bistrica Biljelo Polje (Montenegro, BiH, Serbia)

33. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA

34. LONG TERM VISION  Vision  Establish durable network of water services professionals  Consolidate and maintain knowledge on State of Sector  Develop self-financed capacity-building curriculum  Same overall structure and implementation arrangements  Stronger focus on establishing sustainable mechanisms  Limited participation from Outside Danube region  6M € incl. co-financing  Three-year extension

35. DANUBE WATER PROGRAM 2 ND PHASE | ASSOCIATIONS MEETING | 29 OCTOBER 2014 | VIENNA, AUSTRIA MAIN QUESTIONS  What is the long-term role of IAWD and Waterworks associations?  How to move from analytical work to sector reform?  What areas of focus for capacity-building?  How to formalize capacity-building curriculum?  How to achieve Sustainable Financing?

36. www.danube-water-program.org David Michaud / Philip Weller Danube Water Program Team