Sustainable Water Integrated Management and Horizon 2020 Support Mechanism This Project is funded by the European Union SWIM and H2020 Support Mechanism “Water supply and distribution mapping in the South Mediterranean Region (SWIM H2020 SM project countries)” March 2019 Version Document Title Author Review and Clearance V1 Water supply and Israel: SWIM- Suzan TAHA (SWIM- distribution mapping in H2020 SM Team H2020 SM Key Water the South Mediterranean The rest of the Expert) Region project countries: Fadi DOUMANI LDK Consultants Engineers & Planners SA Page 1 Sustainable Water Integrated Management and Horizon 2020 Support Mechanism This Project is funded by the European Union THE SWIM AND H2020 SUPPORT MECHANISM PROJECT (2016-2019) The SWIM-H2020 SM is a Regional Technical Support Program that includes the following Partner Countries (PCs): Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, [Syria] and Tunisia. However, in order to ensure the coherence and effectiveness of Union financing or to foster regional co- operation, eligibility of specific actions will be extended to the Western Balkan countries (Albania, Bosnia Herzegovina and Montenegro), Turkey and Mauritania. The Program is funded by the European Neighborhood Instrument (ENI) South/Environment. It ensures the continuation of EU's regional support to ENP South countries in the fields of water management, marine pollution prevention and adds value to other important EU-funded regional programs in related fields, in particular the SWITCH-Med program, and the Clima South program, as well as to projects under the EU bilateral programming, where environment and water are identified as priority sectors for the EU co-operation. It complements and provides operational partnerships and links with the projects labelled by the Union for the Mediterranean, project preparation facilities in particular MESHIP phase II and with the next phase of the ENPI-SEIS project on environmental information systems, whereas its work plan will be coherent with, and supportive of, the Barcelona Convention and its Mediterranean Action Plan. The overall objective of the Program is to contribute to reduced marine pollution and a more sustainable use of scarce water resources. The Technical Assistance services are grouped in 6 work packages: WP1. Expert facility,WP2. Peer-to-peer experience sharing and dialogue, WP3. Training activities, WP4. Communication and visibility, WP5. Capitalizing the lessons learnt, good practices and success stories and WP6. Support activities. LDK Consultants Engineers & Planners SA Page 2 Sustainable Water Integrated Management and Horizon 2020 Support Mechanism This Project is funded by the European Union Acknowledgements: We would like to thank wholeheartedly Ms. Suzan Taha, Key Water Expert, Victoria Laina, Project Administrator and Evie Litou, Project Coordinator, for their valuable insights. We would also like to thank Dr. Michael Scoullos, Team Leader, for his help and advice during the elaboration of the report. This document is the compilation of two separate reports: the first was prepared for the following countries: Algeria, Egypt, Jordan, Lebanon, Morocco, Palestine and Tunisia by Mr Fadi Doumani, SWIM-H2020 SM Non-key Expert. The second was prepared for Israel by the SWIM-H2020 SM Team. Disclaimer: This publication was produced with the financial support of the European Union. Its contents are the sole responsibility of the SWIM-H2020 SM Project and do not necessarily reflect the views of the European Union. LDK Consultants Engineers & Planners SA Page 3 Sustainable Water Integrated Management and Horizon 2020 Support Mechanism This Project is funded by the European Union 1 CONTENTS 1 Contents 4 2 Background Information 17 Objective and Scope 17 Objective ...............................................................................................................................17 Scope ...................................................................................................................................17 3 Methodological Process 19 4 Algeria 20 Water and Waste Water Sector Utilities, PPP and Service Levels 20 Utilities’ Services ..................................................................................................................20 Public-Private Partnership ....................................................................................................21 Service Levels ......................................................................................................................22 Water and Waste Water Sector Organisation and Ownership 23 Basis for Water and Waste Water Pricing and Tariff Setting 24 Water and Waste Water Sector Utilities Remuneration Models 26 Utilities’ Status ......................................................................................................................26 Utilities’ OMEX Financing .....................................................................................................27 Utilities’ CAPEX Financing ...................................................................................................28 Future Investment Needs .....................................................................................................28 Water Distribution: How Is It Regulated? 29 5 Egypt 32 Water and Waste Water Sector Utilities, PPP and Service Levels 33 Utilities’ Services ..................................................................................................................33 Public-Private Partnership ....................................................................................................34 Service Levels ......................................................................................................................35 Water and Waste Water Sector Organisation and Ownership 36 Basis for Water and Waste Water Pricing and Tariff Setting 38 Water and Waste Water Sector Utilities Remuneration Models 40 Utilities’ Status ......................................................................................................................40 Utilities’ OMEX Financing .....................................................................................................40 Utilities’ CAPEX Financing ...................................................................................................40 Future Investment Needs .....................................................................................................41 Water Distribution: How Is It Regulated? 41 6 Israel 44 Water and Waste Water Sector Utilities, PPP and Service Levels 44 Utilities’ Services ..................................................................................................................44 Public-Private Partnership ....................................................................................................45 Service Levels ......................................................................................................................46 Water and Waste Water Sector Organisation and Ownership 46 Basis for Water and Waste Water Pricing and Tariff Setting 48 Water and Waste Water Sector Utilities Remuneration Models 50 Utilities’ Status ......................................................................................................................50 Utilities’ OMEX Financing .....................................................................................................51 Utilities’ CAPEX Financing ...................................................................................................51 Future Investment Needs .....................................................................................................52 Water Distribution: How Is It Regulated? 53 7 Jordan 55 LDK Consultants Engineers & Planners SA Page 4 Sustainable Water Integrated Management and Horizon 2020 Support Mechanism This Project is funded by the European Union Water and Waste Water Sector Utilities, PPP and Service Levels 55 Utilities’ Services ..................................................................................................................55 Public-Private Partnership ....................................................................................................56 Service Levels ......................................................................................................................57 Water and Waste Water Sector Organisation and Ownership 58 Basis for Water and Waste Water Pricing and Tariff Setting 59 Water and Waste Water Sector Utilities’ Remuneration Models 61 Utilities’ Status ......................................................................................................................61 Utilities’ OMEX Financing .....................................................................................................62 Utilities’ CAPEX Financing ...................................................................................................62 Future Investment Needs .....................................................................................................62 Water Distribution: How Is It Regulated? 63 8 Lebanon 65 Water and Waste Water Sector Utilities, PPP and Service Levels 65 Utilities’ Services ..................................................................................................................65 Public-Private Partnership ....................................................................................................67 Service Levels ......................................................................................................................68