Ebrd Contract Award Notice

1. Contract Details


Contract Title: Consultancy Contract - Sarajevo Water Financial and Operational Performance Improvement Programme (FOPIP)

Contract Description: Financial and Operational Performance Improvement Programme (“FOPIP”) - in order to promote improvements in the service quality alongside technical cooperation to support financial and operational management at ViK Sarajevo.

The FOPIP will aim to:

• improve the Company’s operational efficiency and financial management,
• strengthen the capacity to implement the Project,
• service the debt while providing high quality water and sewerage services
• recommend financial, technical and restructuring covenants, which would serve as conditions for the commitment of the two uncommitted tranches
The overall objectives of the assignment are to:

(a) Achieve short term operating and financial improvements through a specific Financial and Operational Performance Improvement Programme (“FOPIP”).

The FOPIP would include (i) measures and actions to improve operational efficiency and levels of service (e.g. development of a comprehensive non-revenue water (“NRW”) strategy) ; (ii) measures and actions to increase the revenue collection and reduce accounts receivable; (iii) measures and actions to reduce operating costs and (iv) assistance to the Company to make on-going long-term (5-year) corporate development programmes, including capital budgets and tariff projections.

(b) Support the preparation of a Business Plan.

The Consultant shall assist ViK Sarajevo to improve its commercial standing, service quality and environmental performance. It will do this by preparing a Business Plan to identify and implement the corporate, financial and operational improvements to improve its performance and, in particular, to meet the covenants in EBRD financing documents. The Business Plan will be a typical comprehensive strategic business document governing the provision of water and wastewater services in the Canton Sarajevo over the long term by ViK Sarajevo in its current form. The Business Plan will be a typical business planning exercise taking a long term, comprehensive review of the existing and future financial, technical, institutional, staffing, legal, environmental, and public-private partnership aspects of ViK Sarajevo operations and the development of strategic, annually updatable plan for ViK Sarajevo’ s future operations over a 10 year time frame.

(c) Highlight specific Corporate Development measures to strengthen ViK Sarajevo’s longer term corporate planning capacity operating on an autonomous and commercial basis.
(d) Prepare a Public Service Agreement between the Canton and the Company that would specify the rights and responsibilities of its parties. It would include but not be limited to:

(i) measurable performance indicators with clear timetable for their achievements evidencing improvements of the Company’s operational efficiency and levels of services rendered to its consumers;
(ii) automatic tariff adjustment formula and tariff policies (e.g. full cost recovery, elimination of cross-subsidies between consumer groups; not exceed the affordability thresholds etc.)



Contract Scheduled Completion Date: 12 months

Date of Contract Signature: 19/02/2021

2. Contracting Party

KPMG Tax&Advisory B-H d.o.o.
Zmaja od Bosne 7-7a
Sarajevo
71000
Bosnia And Herzegovina

Proposal Price (in evaluation currency): EUR 329,713.00
Proposal Price (Euro Equivalent): € 329,713.00

JVCA? No

3. Other Information
No Other Information Provided

4. Client Address
Mrs. Aida Pendek
The Sarajevo Canton and KJKP Vodovod i kanalizacije d.o.o Sarajevo
KJKP Vodovod i kanalizacije d.o.o Sarajevo
Ul J. Cernija br. 8
Sarajevo
71000
Bosnia And Herzegovina
Tel. +387 33 447-741