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Chisinau 2004 Contents EXECUTIVE BOARD ANALYSIS of operational and financial performance indicators of water and sewerage utilities in the Republic of Moldova for 2002 Chisinau, 2004 CHISINAU 2004 CONTENTS Introduction ............................................................................................................................................................................. 3 Analysis methodology............................................................................................................................................................. 4 Indicators of water and sewerage sector operational performance .......................................................................................... 5 А. Coverage......................................................................................................................................................................... 5 Water coverage (Indicator 1.1)............................................................................................................................................ 5 Sewerage coverage (Indicator 2.1) ...................................................................................................................................... 6 В. Water production and consumption ................................................................................................................................ 7 Water production (Indicators 3.1-3.3) ................................................................................................................................. 7 Water consumption (Indicators 4.1-4.3).............................................................................................................................. 7 Metered water consumption (Indicators 5.1-5.3)................................................................................................................. 9 С. Unaccounted-for water.................................................................................................................................................... 9 Unaccounted-for water (Indicators 6.1-6.3) ........................................................................................................................ 9 D. Metering practices ........................................................................................................................................................ 13 Proportion of metered connections (Indicator 7.1)............................................................................................................ 13 Proportion of water billed per meter readings (Indicator 8.1) ........................................................................................... 13 E. Network performance.................................................................................................................................................... 14 Pipe breaks (Indicators 9.1-9.2)......................................................................................................................................... 14 Sewerage blockages (Indicators 10.1-10.2)....................................................................................................................... 16 G. Quality of service.......................................................................................................................................................... 17 Continuity of service (Indicators 15.1).............................................................................................................................. 17 Number of water and sewerage service complaints (Indicators 16.1) ............................................................................... 17 Wastewater treatment (Indicator 17.1) .............................................................................................................................. 19 Quality of wastewater treatment (Indicators 31.01-31.04) ................................................................................................ 19 Energy costs (Indicators 30.01-30.04)............................................................................................................................... 22 Water and sewerage utilities' financial performance indicators......................................................................................... 25 F. Costs and staffing.......................................................................................................................................................... 25 Unit operational cost (Indicators 11.1-11.2)...................................................................................................................... 25 Staffing (Indicators 12.1, 12.2, 12.3, 12.4)........................................................................................................................ 28 Labor costs as a proportion of operational costs (Indicator 13.1)...................................................................................... 31 Proportion of contracted-out services (Indicator 14.1)...................................................................................................... 31 Н. Billings and collections................................................................................................................................................. 32 Average tariff (Indicators 18.1-18.3)................................................................................................................................. 32 Water charges as a proportion of per capita income (Indicator 19.1)................................................................................ 35 Fixed monthly charge (Indicators 20.1-20.2) .................................................................................................................... 36 Connection charge (Indicators 22.1-22.4) ......................................................................................................................... 36 Ratio of industrial to residential charges, % (Indicator 21.1) ............................................................................................ 36 Collection (Indicator 23.1) ................................................................................................................................................ 37 I. Financial performance indicators ................................................................................................................................... 38 Working ratio (Indicator 24.1)........................................................................................................................................... 38 Debt service ratio (Indicator 25.1)..................................................................................................................................... 40 J. Capital investment ......................................................................................................................................................... 41 Investments (Indicators 26.1- 26.2)................................................................................................................................... 41 Fixed assets per capita (Indicator 27.1) ............................................................................................................................. 42 Conclusions ........................................................................................................................................................................... 44 Appendices ............................................................................................................................................................................ 46 Operational and financial performance indicators - Definition of terms ........................................................................... 46 List of utilities covered by the indicative survey, grouped by service area population ..................................................... 53 Introduction The centralized water and sewerage systems in the Republic of Moldova, which to a great extent shape the social landscape in urban communities and the environmental situation in the country, are in critical condition. In addition to the long-standing issue of relatively scarce water resources and their uneven distribution across the country, the crisis has been conditioned by unresolved financial/economic, technical and institutional problems that have built up over time and ultimately led to a critical situation in a number of communities. This became especially evident after the liquidation of the centralized administration and funding system and the handover of water and sewerage utilities to local authorities. The decentralization of the water and sewerage network has brought about a major reduction in the scope of reporting to central authorities, making utility operations more isolated and disjointed and thus complicating the preparation of comparative data on key utility performance indicators and the analysis of the national water and sewerage sector development as a whole. The condition of the water and sewerage networks in the Republic of Moldova is monitored by the Association of Water and Sewerage Utilities (Moldova Apă-Canal) based on the set of standard indicators developed and commonly used by the World Bank. Moldova's total population (excluding the left-bank Dniester areas) is 3,617,500, of which 1,499,100 persons live in towns and 2,118,400 in rural communities.
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