Municipal Water & Wastewater Project

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The overall development objective of the Municipal Water and Wastewater Project for Albania is to improve water supply and sanitation services in four participating cities and achieve financial viability in their water utilities, by introducing a new incentive-based multi-city management contract approach. There are three project components. The first finances the costs related to the five-year management contract. These costs include a base fee and a performance-based fee to be paid to the Operator according to the achievement of targets defined in the contract. The Operator will be given full responsibility for managing the investment program; operating the water supply and sewerage systems; developing and implementing the demand management program, including a public awareness campaign; and implementing improved commercial (billing and collection) and financial management system. The second component, the Investment Fund, finances works, goods, and services aimed at improving the operation of the water supply and sanitation services, and achieving the performance targets in the management contract. The third component strengthens project implementation by supporting the Project Implementation Unit, including salaries, training, vehicles, and incremental operating costs; and various consulting services for supervision of the management contract and audits, studies, and field investigations related to the Project.