European consultants have developed a 15-year development program for the Vitebsk Vodokanal

European consultants have proposed a 15-year corporate development program for Vitebskvodokanal UP, aimed at improving the enterprise's financial and operational efficiency. This was announced today to journalists by the chief technologist of the water utility, Leonid Lemesh, before the start of a meeting at the enterprise with the participation of the city executive committee leadership.

Representatives of FCG, a Finnish diversified consulting company specializing in long-term corporate development programs, presented on November 3 the developed models for overcoming the complex economic situation and forecasts for Vitebskvodokanal UP until 2030. "We have been working with this company for a long time. Their specialists conduct training for our employees in various areas, mainly related to accounting and financial reporting, using grants. The fact is that from 2016, Vitebskvodokanal is expected to begin the construction of treatment facilities and sewerage systems under the framework project 'Municipal and Environmental Infrastructure' of the European Bank for Reconstruction and Development (EBRD). We will be allocated a loan of 12.5 million euros and a non-repayable grant of 4.7 million euros. When the time comes to repay the loan, the enterprise must be on solid ground," explained Leonid Lemesh.

The chief technologist added that approximately 24-25 million euros are needed for the complete construction of the facilities. A significant amount of time has passed since the first audit of the enterprise before the design of the construction project in 2010, and the cost has increased. This is another reason why technical assistance from European partners is being offered to the recipient. As explained by Martti Lariola, the head of the 'Municipal and Environmental Infrastructure' project, the corporate development program includes the development of the company's structure, future planning, and the implementation of international accounting and reporting standards.

The main provisions of the proposed business plan are: full coverage of the enterprise's costs, refusal of cross-subsidization (unification of tariffs for different consumer groups), and a minimum net profit level for the specified period. Important components of the implementation of this plan should include tariff increases, but in such a way that they remain affordable for consumers, and a certain financial independence of the enterprise from municipal authorities. Ultimately, all this should lead to the population receiving high-quality services, stable operation of the enterprise itself, as well as an improvement in the overall environmental situation. Within the framework of the "Municipal and Environmental Infrastructure" project, the EBRD is implementing measures in the water supply and sanitation sector, among others. Specifically, the investment project "Belarus: Environmental Infrastructure Project" provides for the comprehensive reconstruction of treatment facilities and sewerage systems in several cities of the country, including Vitebsk. The facility in the regional center is scheduled for completion in December 2018. Equipment will be replaced, and modern purification technologies will be applied.

"We have already begun to implement them partially. Last year, under the PRESTO project, we received a grant and built a wastewater post-treatment station for the removal of biogenic pollutants, namely phosphorus. So this will be a continuation of modernization to achieve the ultimate goal - improving the water quality in the Western Dvina (Daugava) River, the Gulf of Riga, and the Baltic Sea," Leonid Lemesh summarized.

Ekaterina Knyazeva, BELTA.