Transcript Financing Strategy for Urban Water Supply and Sanitation Sector in Georgia Merab Kandelaki Director“GeorgiaWaterChannel” ltd. Bucharest, 14-16 may 2008

Financing Strategy for Urban Water Supply
and Sanitation Sector in Georgia
Merab Kandelaki
Director“GeorgiaWaterChannel” ltd.
Bucharest, 14-16 may 2008
Water Supply Coverage (%)
100.00%
80.00%
Average
60.00%
Tbilisi
Big cities
40.00%
Small cities
20.00%
0.00%
1998
1999
2000
2001
2002
Sanitation Service Coverage (%)
100.00%
80.00%
Average
60.00%
Tbilisi
Big cities
40.00%
Small cities
20.00%
0.00%
1998
1999
2000
2001
2002
0
Terzhola
Gurdzhani
Kaspi
Borzhomi
Senaki
Ozurgeti
Zestafoni
Chiatura
Marneuli
Tshaltubo
Khashuri
Samtredia
Kobuleti
Poti
Gori
Zugdidi
Batumi
Kutaisi
Rustavi
Tbilisi
hours per day
Water supply regularity
24
21
18
15
12
9
6
3
Terzhola
Gurdzhani
Kaspi
Borzhomi
Senaki
Ozurgeti
Zestafoni
Chiatura
Marneuli
Current specific energy consumption
Tshaltubo
Khashuri
Samtredia
Kobuleti
Poti
Gori
Zugdidi
Batumi
Kutaisi
Rustavi
Tbilisi
кВтч/м3
Specific energy consumption in WS sector
Normal specific energy consumption
5.00
4.00
3.00
2.00
1.00
-
Financing Gap under the Baseline
Scenario
100,000
80,000
60,000
thous.Lari
40,000
20,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
(20,000)
(40,000)
Baseline gap
New gap 1 (collection rate)
New gap 2 (collection rate, tariff)
New gap 3 (collection rate, tariff, budget)
Mobilizing Additional Finance
• Increase sharply collection of billed user
charges: up to 85 percent of the billing for
households and up to 100 percent for
other customers;
• Raise tariffs reasonably while reducing
considerably leaks and unit water
consumption compared to overstated
norms – by introducing metering;
• Increase funding from the state budget
and/or international loans and grants.
Scenarios for Meeting the MDG Target for
Water Supply and Sanitation
Two scenarios were considered regarding people who currently
have no sustainable access to safe drinking water:
(1)Rehabilitation and development of existing water supply systems
and ensuring intra-building tap water supply to that part of the
population
Capital investment until 2015 (excluding rural areas) will amount
to 417.5 MGEL, or USD 7 per capita per year. Funding from the
state budget and loans would exceed 4 percent of the total public
expenditure
(2)Ensure water supply to that part of the population through
apartment taps (in apartment blocks) or street standpipes (in
areas with low-rise buildings)
Capital investment will amount to approximately 171 MGEL or
USD 2 per capita per year. Funding from the state budget and
loans would amount to 2.7-3 percent of the state expenditure
budget
Инвестиционные проекты в ВКХ Грузии, финансируемые
в рамках займов МФО по состоянию 2007 года
Name of the Object
Orientate Price of the
object (million lari)
Orientate Date of the
start of project
Orientate Date of the
finish of project
Donor
1
Rehabilitation of water supply system of city
Poti
28.5
December, 2006
February, 2009
EBRD, MSG,
World Bank
2
Rehabilitation of water supply system of city
Kutaisi
30.5
September, 2007
September, 2009
EBRD, MSG
3
Rehabilitation of water supply system of city
Kobuleti
14
September, 2007
March, 2009
MSG
4
Rehabilitation of sewerage system of city
Kobuleti
34.5
I quarter, 2008
I quarter, 2010
EBRD, ORET-I,
World Bank
5
Rehabilitation of water supply system of city
Rustavi
43
II quarter, 2008
II quarter, 2010
EBRD, MSG, EU
6
Rehabilitation of water supply and
sewerage system of city Borjomi
35
II quarter, 2008
II quarter, 2010
EBRD, MSG
7
Rehabilitation of water supply and
sewerage system of city Bakuriani
9.5
II quarter, 2008
IV quarter, 2009
Kartu, MSG
8
Rehabilitation of water supply and
sewerage system of city Tskhaltubo
14
III quarter, 2008
I quarter, 2011
MSG