Capacity Development of ViKs

Istovremeno sa investicionim projektom Vodacom svih ovih godina paralelno implementira Projekat razvoja kapaciteta vodovodnih preduzeća u okviru kojeg pruža podršku osoblju ViKova u izradi poslovnih planova, tarifnih studija, planova poboljšaja naplate, analizi potraživanja, analizi finansijskih izvještaja, GiSu, hidrauličkom modeliranju, detekciji tehničkih gubitaka u vodovodnom sistemu.

Ongoing Projects

Benchmarking

Since 2003, Vodacom has been systematically and continuously collecting data on the performance of local water utilities, used for establisment of a comprehensive system of business performance indicators at both monthly and annual levels.

This serves for creating a realistic and objective picture of water utilities’ performance. Benchmarking represents a systematic and continuous process of measuring and comparing business performance with other entities in the sector, with the aim of identifying opportunities to improve efficiency.

Through intensive cooperation with water utilities (ViKs) and professional services, data have been systematically collected and analyzed to calculate key performance indicators, which will serve as important guidance for business strategy planning, more efficient management, and continuous improvement of operational performance.

Since 2013, cooperation has been established with the World Bank and the International Association of Water Supply in the Danube River Basin, as well as participation in international benchmarking platforms (IBNET, EBC). This has enabled the exchange of experiences and best practices through monitoring key performance indicators in the water supply and wastewater sector with companies in the region and Europe, providing additional guidance for the development and improvement of the sector at the local level.

The European Benchmarking Initiative carries out activities within the benchmarking cycle by preparing ViKs for benchmarking activities, data collection, analysis, reporting, workshops, assessing the utility’s status, and preparing and presenting the annual report. Comparison with other participants on this platform allows ViKs to determine their position relative to others, identify critical business performance indicators, monitor indicators over a certain period, create a database,etc.

The goal of all these activities is to improve the quality and accessibility of water supply, ensure environmental protection and promote sustainable development through precise monitoring and strategic guidance of business processes.

Past projects

Capacity Development of ViKs Bar, Herceg Novi, Kotor, and Tivat

Project status: completed

Value: € 2 million

Funding sources: KfW grant

Consultant: SACHSEN WASSER, Germany

Implementation period: September 2009- July 2012

Project Description: Strengthening capacities of the water utilities in Bar, Herceg Novi, Kotor, and Tivat through the improvement of business operations, technical and financial management, as well as the quality of services for citizens and the tourism sector.

Results: Modernization of the utilities’ operations, enhanced transparency and efficiency, improved business performance, serving as a foundation for future investment projects related to water supply and wastewater management.

GIS / Hydraulic Models

Hydraulic modeling is a software-based simulation of conditions in a water supply network, which allows for an in-depth analysis of the system by monitoring simulated values of flow through pipelines, pipeline pressures, and changes in water levels in reservoirs. By comparing the simulated data with actual field measurements, a hydraulic model is created, providing a realistic view of the observed water supply system.

Analyzing simulations in the EPANET program can improve water management practices, provide recommendations for future investment measures, facilitate rehabilitation of existing facilities, support the construction of new facilities, and thereby enhance water supply in the studied region.

Hydraulic modeling is part of Vodacom’s internal measures. This activity began in November 2007 in collaboration with the consutancy MACS GmbH from Frankfurt. This type of modeling is used to create a hydraulic model used to identify problematic areas where losses in the network have been detected.

Modeling in the EPANET software:

  • Division of the water supply network into supply zones and subzones
  • Monitoring the relationship between water production and consumption
  • Assessment of the overall condition or specific parts of the water supply network
  • Identification of potential losses in the network
  • Determination of measurement points for flow and pressure monitoring

Leak Detection

The most influential component in improving the technical and commercial performance of water utilities is the more efficient use of existing resources, as well as the reduction of losses and non-revenue water(NRW). This component contributes to increased water supply efficiency, improved water management, financially sustainable operations, and greater protection of Montenegro’s natural resources.

In this context, since 2006, Vodacom has been working on developing and strengthening the capacities of the technical departments of water utilities, with the aim of achieving an acceptable level of water losses in the supply system and developing all supporting tools for effective water utility management.

Business Planning

As part of the Institutional Support Projects for Vodacom and water utilities, financed by the German Development Bank (KfW), Vodacom was trained to provide support to water utilities in developing their business plans. Today, in a market-oriented economy and under conditions where many external institutions are interested in the operational information of companies, the need for business plan development has become evident. Through planning, water utilities consciously and systematically develop their strengths and address their weaknesses, ensuring an organized path toward long-term successful operations.

A company should have their strategy and clearly defined business objectives to be able to respond to customer demands in a sustainable and socially responsible manner. The management of water supply and wastewater services differs from other sectors due to the nature of the product, which requires a distinct approach and management strategies. The business plans of water utilities provide all stakeholders with an understanding of the seriousness and responsibility of the ViK management in guiding the company’s business policy.

Tariff setting

In order for the company to be in a position to manage and maintain the water supply and sewerage system in an appropriate manner, it is necessary to establish a tariff that will cover the company’s costs. It is essential that the tariff structure be designed in such a way that not only economic but also social considerations are well balanced, and that the tariffs are affordable to customers.

Development of tariffs is a fundamental instrument for assessing the economic sustainability of the company.