Waste Water Treatment Plant Subotica: Technical Layout and Financial Analysis - Serbia & Montenegro

City of Subotica – Municipal Infrastructure Project – Serbian cities MIRP – SUBOTICA WATER UTILITY

The City of Subotica has requested a loan from the European Bank for Reconstruction and Development to finance the reconstruction of Subotica Wastewater Treatment Plant.
A grant received from the government of Styria was used for the preparation of a technical concept for the reconstruction of the WWTP.

The technical concept was completed by April 30th 2003 and envisages reconstructing and expanding the existing WWTP for a total cost of € 31 milion, to be implemented in three phases over 10 to 20 years. The concept was presented to the municipality of Subotica and VODOVOD on May 16th 2003, and it has been approved in principle by both the City and the Company.

The EBRD has agreed to consider the financing of the first phase of the project subject to the outcome of a further technical, institutional and financial study which demonstrates that the proposed investments are cost effective and affordable, while achieving significant environmental benefits.

BLUEWATERS services for EBRD comprise:

  • A bankable priority investment programme proposed to be financed by the EBRD. This priority investment programme includes a detailed project description and key output data. The cost effects of the project were presented (investment as well as operational costs). Furthermore, an institutional assessment of the company was be drafted.
  • A tariff concept was developed based on gradual move towards full cost recovery, while considering the ability and willingness to pay and protection of the poor segments of the society.
  • A detailed financial analysis of the Company was presented to form baseline inputs for the EBRD’s financial due diligence.

Only sustainable financing concepts can assure the sustainable development of regions and municipalities. Therefore, we look deeply into socio-economic conditions, such as willingness and ability to pay. Variants in tariff structures and billing systems have a considerable impact on the revenues and form the baseline of the profit-loss-calculations, as well as the discounted cash-flow analyses.