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Financing water management projects analysis, Czech Republic

Mott MacDonald has conducted a questionnaire poll and evaluation of the selected characteristics of operating infrastructure water management assets in towns and municipalities of the Czech Republic, focusing on the operating contract and its duration.

As part of negotiating the conditions of assistance, the Ministry for Regional development developed an analysis of the possibilities of funding water management projects out of the European funds with respect to the relation between the owner-operator.

The analysis mapped the operation of water management infrastructure focusing on the duration of the operating contracts and related data. Based on the list of agglomerations requiring investments, the relevant operators and owners of the infrastructure and wastewater treatment plants were approached with a request for filling in the electronic questionnaire.

Based on data collected, the following manners of operation were identified:

  • The municipality operates it itself (the responsibility for the operation and collection of water and wastewater charges is with the relevant town)
  • Ownership (the infrastructure is operated on the basis of the an agreement by an organisation established and 100% controlled by a single owner)
  • Mixed (owner and operator of water management assets is a single legal entity)
  • Separate (with an ownership interests of other entities other than the owner of the infrastructure)
  • Combined method (a typical operating contract between the mixed company and its shareholder that is at the same time the owner)

Regarding agglomerating with a separate type of operation, we also analysed the duration and time limits of the operating contracts, or as the case may be, the financial investments of the operator in the property of the owner beyond standard repairs and maintenance plus other parametres. By analysing the data it was possible to identify a characteristics group of operating contracts, their duration and expected course of their termination.

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