Parties

The Community and the Service Provider 

Date

N/A 

Duration

3/4/5 years, renewable for a similar period (article 3.2)

Service being provided

Operation, management and maintenance of the Village Water Supply (AEV) (article 1) in accordance with technical norms (article 5). 

Investment obligations

There are minimal investment obligations regarding operations and maintenance of the facilities.  The facilities are existing and there is no major renewal or extension unless agreed and funded from the renewal fund.  The provider is responsible for replacement and repair of damaged parts (article 5) 

Funding source

Revenue from tariffs (complete cost recovery) (article 13) 

Maintenance and rehabilitation requirements

The provider is to maintain the works and equipment in good working condition (article 5)

Service levels specified

Articles 5 and 8 (in particular, service of [  ] hours per day, 7 days a week)

Performance targets

None

New connections

Article 9 and article 11.  The user is to pay the cost of the connection but the cost of the meter is to be covered by the provider   

Bonus/penalty system

In case of interruption of water supply without justification from the superior service 24 hours in advance, the community has the right to penalize the provider of an amount up to 50% of the estimated revenue of water services for the period of interruption (article 18) 

Tariff setting - who performs

The tariffs are specified in the contract (article 11) as well as the charge for a new connection.  Tariffs can be reviewed annually.  The provider or the community may also request an increase or decrease respectively. The amount by which the license fee can also be revised annually in agreement with the Technical Service of the community to take into account renewals etc. The change of tariff should be approved by a decision of the Community Council (article 12) 

Tariff collection - service provider on own or on authority behalf?

The provider collects the revenue and then transfers each month the license fee (which is fixed in the contract) for rehabilitation, extension and auditing costs, as well as fee for community budget, to the designated bank account of the community (article 13)

Payment - does provider keep revenues/get paid fee

The operator keeps revenues (other than licence fee) (article 13) 

Is any sum put aside for rehabilitation?

Yes, a license fee for the rehabilitation, extension and auditing is established and is paid by the provider every month. (article 13)

Accounts and reporting

The provider is to have accounts drawn up by accountants approved by the community.(article 5).  It is to make monthly reports and annual accounts to the community

Proposals for capital expenditure and renewal

The provider is to propose to the community a program of investments each year, to be financed from the rehabilitation fund (article 5)

The assets and any new assets are held by the community (article 7)

Regulator/monitoring body

The community plays the role of monitor and supervisor

Right to cut off supply

Provider has a right to suspend the service for non-payment (article 9)

Dispute resolution

Reconciliation; litigation (article 23)

Customer complaints mechanism

There is no provision specified - but the agreement is with the community and so it is likely that complaints would be addressed to the community