By allowing privatisation of public utilities, Serbia hopes to improve its water and sanitation infrastructure, reports Ost-West Contact [1]. While 80 per cent of the inhabitants have a house connection, less than half get drinking water that complies with water quality standards. In addition, less than 10 per cent of wastewater is treated. The poor quality of public utilities is attributed to bureaucracy, a non-transparent market and an outmoded tariff structure.

Public-private partnerships with municipalities will be open to both Serbian and foreign companies. Belgrade for example, is preparing a EUR 2.6 million project to improve its water and sewerage systems.

[1] Bauer, O. (2006). Serbien und Montenegro : in den Startlöchern - Wasserwirtschaft: Möglichkeiten für PPP-Projekte. Ost-West Contact, no. 11 (November) (in German, subscription based).

Source: EVD (in Dutch), 1 Dec 2006

Tags: financing