Parties

The Community, the Water User Association (UAE) 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) and to the satisfaction of the users. 

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 to the satisfaction of the users. (article 5)

Service levels specified

Articles 5 and 9 (in particular, service of [  ] hours per day, 7 days a week)

Performance targets

None

New connections

Article 10.  The user is to pay the cost of the connection but the cost of the meter is to be covered by the provider.  Approval for a new connection must be given by the AUE and the provider.

Bonus/penalty system

In case of interruption of water supply without justification from the superior service 24 hours in advance, the community and AUE 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 (in the case of the community, at the request of the AUE). The amount by which the license fee can also be revised annually must in agreement with the Technical Service of the community to take into account renewals etc. The AUE fee is also able to be revised.  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 in the joint names of the community and the AUE + the AUE fee (which is to cover the AUE's costs and expenses) to the AUE (this fee is fixed in the contract).  There is also a payment to be made to cover the annual budget.  (article 13)

Payment - does provider keep revenues/get paid fee

The operator keeps revenues (other than those paid to community under the licence fee and to the AUE under the AUE fee). (article 13)  The water user association is to ensure that the users respect the rules, in particular payment of the water tariff. 

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 and to the water users association.

Proposals for capital expenditure and renewal

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

Asset ownership

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

Regulator/monitoring body

The water user association plays the role of monitor and supervisor of performance of the provider (article 6 and 15).  The commune can also oversee the technical and financial performance.

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.