About the Client:
The EBRD had established a framework of up to 20 million to co-finance, with international donors, priority water and wastewater reconstruction projects across the Kyrgyz Republic. The Executive Body of State Authority of Kara-Balta City of Mayor’s office of Kara-Balta had signed a loan agreement with the bank to obtain funding for investment into water and wastewater infrastructure in the City. The beneficiary of the programme was local water utility company Kara-Balta Vodokanal (Kara-Balta Water Utility Company).
Narrative description of the supervised Project and/or Context of the Project:
The City of Kara-Balta had initially approached the Bank with request to finance priority investments in water supply and selected wastewater improvements. The water supply and wastewater systems of the City are deteriorated and despite some investments taken by the City, the renewal of the critical infrastructure required large investment. The investment cost for the Project was estimated at EUR 5 million. The overall project objectives were: (i) improvement in supply and treatment facilities; (ii) rehabilitation of the network to reduce losses; (iii) institutional support; (iv) improvement of billing and collections efficiency; and (v) improvement of financial and operational management.
Following the contract signed between the City and the Bank, Aspiro a.s. was selected and then appointed to start providing services for the Corporate Development and Stakeholder Participation Programme which was part of the overall Project. In the end, the investment component of the project was not implemented, only Aspiro’s assignment ended up being fully implemented.
Description of actual services provided by the staff within the assignment:
The following scope under the Corporate Development Programme was delivered at the project by Aspiro team and their partners:
- Expert assistance in the merger of the two water utility companies into one operating company with focus on providing detailed and thorough guidance to minimize time and costs, and retain key employees – the merger of the companies was completed, the governance model was set up and the Public Service Agreement was signed between the City and the Company;
- The team had also developed and implemented the Stakeholder Participation Programme, aimed at enhancing public ownership by encouraging water conservation, increasing public participation in the provision of water services, and raising public awareness on issues related to the project implementation and water use. As the investment component itself was not implemented parts of ESAP and SEP related to construction works were not implemented.
- Implementation of the Corporate Development Programme in the Company. The following activities and deliverables were completed:
- Implementing the IFRS practice, executed financial audits and provided financial advisory (several financial policies were developed);
- Provided expert assistance with the tariff model and tariff methodology, several presentations were conducted at the municipality
- Developed various methodologies and implemented various operational improvements (for the asset management area, Human Resources practice, implemented new financial, accounting and reporting system, improved revenue collection process, developed customer centre, implemented new company website and provided new IT equipment);
- While developing several company processes and practices, the team had also prepared and provided the long-term development plan and navigation to the company representatives.
“Thanks to Aspiro team strong dedication, focus and commitment, the Corporate Development Programme was successfully completed and the assignment objectives were fulfilled despite the fact that the investment component had not been implemented. The team delivered good value at the project.”