Reform of Water Supply and Wastewater Treatment in Lithuania : Practical Options to Foster Consolidation of Utilities

Since 2006 Lithuania has taken steps to ensure higher operational efficiency and to reduce the disparity in prices for water supply and sanitation services. However, progress has been slow. Concerns have emerged regarding representation of small municipalities in consolidated utilities and increased costs for some consumers. Reform of Water Supply and Wastewater Treatment in Lithuania presents practical options to implement the national strategy towards the consolidation of water supply and sanitation services in Lithuania as a tool to foster operational efficiency and financial sustainability of the sector. Analyses and recommendations benefitted from discussions in two pilot regions in Lithuania, to test the practicality of consolidation scenarios and accompanying measures. Particular attention is paid to tariff setting and different modes of benchmarking – including development plans benchmarking - as tools to incentivise performance. The report provides insights for countries facing similar challenges or seeking to improve the efficiency of water service provision. The project was undertaken in collaboration with – and with the financial support of – the Directorate-General for Structural Reform Support of the European Commission.