Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

Preparation and implementation of wastewater infrastructure projectsAIDA MORANJKIĆ, Una Consulting

Day 2, Session 1. Introductory Inpust for Field Visits

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

Content:

• Introduction

• Project Cycle Management

• Traditional approach vs approach based on the requirements of IFIs in the implementation of infrastructure projects

• Key aspects

• Conclusions and recommendations

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

Introduction

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

IntroductionBASIC INFORMATION

Project components:

Component 1 – Collectors

Component 2 – WWTP

Partners: KfW bank, EU, Sava River Basin Agency, Government of the F BiH and ministries,

Environmental Protection Fund of the F BiH, City of Bihac

Total value of the investment: 25,5 mil. €

Length of new collectors: 52,8 Km

WWTP capacity: 55.000 PE

Number of new users of the sewage: 1.800

Total population: 56.000

Total population covered by the service: 39.000 or 70 %

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

Introduction

PROJECT IMPLEMENTATION

PHASES

Phase 1 (preparation): 2006 – 2009

Phase 2 (tendering and desing): 2010 – 2013

Phase 3 (construction): 2013 - 2017

Phase 4 (defect notification period): 2018 –

2019

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

Strategy development

Feasibility studyBank rating Master plan

Situation analysisProject ideas Formulation of the proposal / project fishe – PIP Design,

Tendering and contraxcting Construction

Operation and maintenance / including reporting

Project Cycle Management

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

Traditional approach vs approach based on the requirements of IFIs

• First, all the necessary design documentation is developed after which come the construction works.

• As a rule, construction works are offered and contracted based on the tender which contains detailed BoQ.

• In most of the cases the Preliminary Design is not being developed.

• Not enough attention is being given to the Terms or Reference

• This approach is partially embedded in the current legislation.

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

2. TRADICIONALNI vs PRISTUP BAZIRAN NA ZAHTJEVIMA MFI

Project implementation starts only at the 4th step of the cycle

CHARACHTERISTIC PROJECT PROCESS

NON-PROJECTPROCESS

Organisational structure

Dynamic Relativly static

Duration Temporary Permanent

Information flow Variable Constant

Decisions Non-repetitive Repetitive

Construction of the wastewater collection and

treatment system

Administrative procedure

Traditional approach vs approach based on the requirements of IFIs

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

2. TRADICIONALNI vs PRISTUP BAZIRAN NA ZAHTJEVIA MFI

Traditional approach vs approach based on the requirements of IFIs Projects financed by IFIs

Key document for making the decision – FEASIBILITY STUDY.

• Importance of the roles of LGU and PUC – input data for proper sizing, exiting installations etc.)

• Conduction of additional surveys and re-evaluation of priorities (optional)

• Development of design and tender documentation

• Tender documentation in line with the contract models (FIDIC) and International procurement models (PRAG) or national models

• Engagement of the implementation consultant

• Tendering and selection of the contractor

• Tender procedure in line with national laws and rules of IFIS

• Tendering not being performed by the Public Procurement Law*

• Scope of services of the „Engineer” during the construction phase

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

2. TRADICIONALNI vs PRISTUP BAZIRAN NA ZAHTJEVIMA MFI

Traditional approach vs approach based on the requirements of IFIs

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

Key aspects:

• Development of study – design documentation, reassessment of parameters if necessary, sizing

• Timely (before signing construction contracts) issuing of permits • Project implementation unit (PIU) or Project implementation team

(PIT)• FIDIC contract models and role of PIT (making decisions) • Construction works• Sustainability of the project – tariffs • Public relations (PR) during and after project implementation

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

Key aspects:

PROJECT IMPLEMENTATION UNIT: • New participant in the PCM (request from IFIs),• Complex and demanding role,• Requires parallel and „multidimensional“ coordinated

implementation of activities along with the multidisciplinary approach,

• Link between technics and technology, law, politics and finances.• Requires support, flexibility and understanding of all participants

of the project• Understanding of roles of each and every participant of the

project• Desirable structure of the team (engineers, economists, lawyers

and interpreters)• English language• All members – full time

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

PROJECT IMPLEMENTATION UNIT:

Key aspects:

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

MODEL – CONDITIONS OF CONTRACT:

Standard FIDIC conditions of contract

• Conditions of contract for construction (Red book)

• Conditions of contract for Plant and Design – Build (Yellow book)

• Conditions of contract for Turnkey Projects (Silver book)

• Short form of contract (Green book)

• Client / Consultant model services agreement (White book)

Key aspects:

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

Key aspects:

PUBLIC RELATIONS

• Public involvement from DAY 1,• Raising awareness campaigns,• Continuous education (before, during and after the

implementation of the project).

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

1. Start the preparation and implementation of projects for which the financing has been confirmed and secured from all the planned sources of financing,

2. Require continuous allocation of funds for the needs of co-financing the water utility infrastructure on all levels of government, budgets,

3. Provide support in strengthening the political will and own capacities for the absorption of EU funds and other funds which are available in BiH,

4. Ensure the good preparation of the project including project – technical documentation, development of studies, timely obtaining of necessary permits and other obligations in line with regulations and requirements (domestic and IFIs),

5. Strengthen professional capacities on local and upper levels, establish professional and trained teams in the processes of planning, development and managing of the projects on all levels.

Conclusions and recommendations:

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

Conclusions and recommendations:

6. Establish direct and continuous cooperation and coordination of all participants in co-financing of the project (strategic level) and participants in the project implementation (operational level) and public!

7. During the project preparation to develop the plan for long-term sustainability and functional operation of structures and system including operational funds, funds for maintenance and depreciations – communicate the plan publicly, obtain the approval from all stakeholders,

8. To develop the plan for estimating the funds necessary for the sludge management – to lobby for the development and adoption of the strategies of the entities and BiH

9. To foresee additional funds during planning (not included in the estimation of IFIs) – expropriation, obtaining of permits, replacement of other installations, asphalting…

10. Provide support (municipality and PUC) in the process of education the staff in order to obtain practical knowledge and challenges in the profession.

Regional Water Team Days of the Sub-RésEAU Eastern Europe and Central Asia I 11 – 13 June 2019, Bihać, Bosnia and Herzegovina

Q & A

THANK YOU FOR YOUR ATTENTION!