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Water Company Agrees to Operations Improvement Plan

In January 2008, the Municipal Development Institute, a Ukrainian NGO and USAID implementing partner, signed an agreement with the Alchevsk City Council, the Alchevsk City Development Fund, and the Alchevsk Water Company to jointly develop and implement operations improvement plan for the Alchevsk Water Company.

MDI specialists, together with Alchevsk Water Company representatives, perform instrumental measurements in the water mains.
MDI specialists, together with Alchevsk Water Company representatives, perform instrumental measurements in the water mains.
Photo Credit: MDI

For four months, MDI specialists thoroughly studied the Alchevsk water system, the financial status of the water company, billing and payment collections systems, and made recommendations on how to reduce commercial losses. By measuring pressures and flows in the system, MDI specialists identified sections in the water supply network where significant volumes of water flow were unaccounted for.

Based on MDI findings, the operation improvements plan was developed and presented at the May 6, 2008 meeting of Project coordination board before the mayor and city council. The plan includes a plan for water losses reduction, and priority and mid-term investment plan, which, when implemented, will allow the company to improve its technical infrastructure and financial viability.

MDI specialists identified technical and organizational measures to be implemented in 2008 with financing from the Industrial Union of Donbas through the Alchevsk City Development Fund and projects to be implemented over a five-year period. These measures included establishing pressure zones in the system, network replacement and installation of water meters. It is expected that these measures would reduce commercial water losses by at least 30 percent. The next phase of the project will include implementation of these measures by the city, which MDI will monitor to establish their efficiency, including a cost-benefit analysis.

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