Water Prices in CEE and CIS Countries. Volume II: Case Studies

Chapter 1.
Introduction

This paper constitutes the desk study on small towns, where Borovichi, Russia, and Ukmerge, Lithuania, have been chosen as cases. The paper is a part of the toolkit project on acceptability of water prices in CEE and CIS countries.

The desk study for Ukmerge is based on a study made by Mileu, AAPC and SIC. The latter study has been made without the toolkit, but the analysis proposed in the toolkit regarding customers perception and affordability can be carried out in the basis of the material.

However, a lack of history on revenues due to decreasing water consumption as a result of increasing prices per m3, stresses the importance of demand analysis as proposed in the toolkit.

The case study for Borovichi is based on work by Carl Bro Management and The Kaliningrad Centre for Social Surveys. The desk study was conducted as a test of an early version of the Small Towns Toolkit, but with quite limited resource input. This is also reflected in the findings which are more limited than those which would result from using the Small Town Toolkit. However, the study makes it possible to get a grasp of the situation in Borovichi.

None of the studies include an analysis of the political acceptability of an increase in water tariff in the towns, and hence a test of the Toolkit regarding these issues is not a part of this working paper. The statements and recommendations are those of the consultant and do not represent the views or policies of DEPA, EBRD or the municipal authorities.