Feasibilty study for water&waste water in Brcko District

The European Bank for Reconstruction and Development (EBRD) acts as implementing partner holding the full responsibility for the project implementation. The consultants hired by EBRD prepared the priority investment programme for Bank financing, based on which the feasibility study was successfully completed. In addition to consultants, the EBRD experts were involved during the preparation of the study, whilst the prepared Final Report documents were duly reviewed and approved by EBRD experts. During the project implementation the Consultant maintained a continuous dialogue with the EBRD, the Company, the Brcko District and other stakeholders. As the exchange of information and aligning the interests of concerned stakeholder took longer than expected, the assignment was completed with four months delay. Instead of completing it by 30 June 2017, the final draft document has been presented at the Brcko District Assembly on 27 September 2017.The key findings of the Feasibility Study are presented below:Priority Investment Programme (PIP)Water supply projects:1. Main Transmission Pipeline (GTC)2. Branch for water supply of Brod settlement3. Branch 1 for water supply of east side of BD4. Branch 2 for water supply of east side of BD5. Branch for water supply of west side of BD6. Reconstruction of existing water supply network7. Purchase of metering equipment and vehiclesWastewater projects: 1. Reconstruction of concrete sewage system2. Construction of new main sewage collectors 3. Construction of WWTP for urban area Financial Analysis The financial analysis of the Project included the following: • affordability analysis for W&WW tariffs• analysis of the historical financials of the Company and specifically WSS; • financial projections for the WSS for the period from 2017 to 2036; • analysis of the financial information of the BD and its capacity to repay new loans;• incremental revenues and expenses resulting from the Project, along with financial internal rate of return (“IRR”) and the economic rate of return on the investment (“EIRR”). Environmental and Social AnalysisThe Project will have a significant positive impact, including:• Stabilization of water supply through pressure regulation of the system. • Construction and operation of the WWTP will significantly reduce wastewater discharges, greatly improving the ecosystem of the recipient rivers and improve the quality of aquatic environment. In addition, public health risks associated with discharges of untreated wastewater will be minimised.• Improved living conditions and hygienic conditions.• Employment opportunities, and thereby increased incomes, and human resource development in a form of staff training by suppliers of equipment.

Specific objective of intervention is to confirm the need for investment in water&waste water in Brcko, but also to assess technical and financial feasibility of the proposed investments as well as to define priority investment programme and its implementation strategy.The intervention is instrumental to effectively identify and assess possibilities for financing in water&waste water sector in Brcko district. Objectives of intervention are well-defined and possible to monitor. The intervention logic is clear and realistic. The result matrix is assessed clear and logical, containing the baseline values and measurable indicators against. Critical assumptions for the achievement of the objectives are also assessed and presented.