EU PPF trainings – Financial and institutional arrangements for infrastructure projects

Zlatibor, June 28th, 2019

On June 21st and 27th 2019, EU PPF8 team hosted two training modules on Financial and institutional arrangements for infrastructure projects for wastewater projects in Zlatibor.

First of the two trainings elaborated the Financial and Operational Performance Improvement Plan (FOPIP) in detail, its purpose, methodology and benefits of FOPIP use and implementation. FOPIP is systematic approach to the company work and its effective management, with the aim of helping PUCs improve their quality of services and ensure better functioning in the future. This approach is often required by international financial institutions, with the aim of guiding the utility company to improve its performance and ensure more stable operations, before deciding on the eligibility of financing from international sources of funding. It contributes to a better understanding of the accountability system and it is an additional instrument for better long-term planning. FOPIP indicators are implemented through a strategy to reduce the amount of the non-revenue water; strategic and business planning; development and management of human resources, work procedures and systematisation of jobs; strengthening of the institutional and legal framework; financial management and development of tariff model, etc.

In addition to FOPIP, the second training addressed the Public-private partnership (PPP), as a form of cooperation between public institutions and the private sector, aimed to successfully realize investments in infrastructure projects or other types of operations, providing public services through risk sharing and pooling public sector expertise or additional sources of capital. The presentations encompassed the Basics of financial and institutional framework, as well as the Methodology for preparation of the Financial Model in accordance with the EU Guidelines, including Basic concepts and project performance indicators (FNPV, FRR, ENPV, ERR, Financial analysis, assessment of investment projects, funding gap calculation. Blending mechanism of combining EU Structural Investment Funds and PPP project procurement was elaborated both in theory and practice.

The participants from PUC “Vodovod” Užice, PUC “Naš dom” Požega and PUC “Ivanjica”, found these comprehensive trainings very useful and successfully completed them. The training also addressed claims and dispute resolution, as well as SWOT with practical examples.

For more detailed information and training material, please visit this page.