Albanian Prime Minister, Mr. Edi Rama, during the presentation of the water sector reform
Speech by Prime Minister Edi Rama in the presentation of the water sector reform:Thank you very much for your presence! A presence that proves the simple truth, that in the country’s governing process, and where governing topics are topics of national public interest, there are no party differences between us. Of course, as far as we are concerned, we consider the 61 municipalities as part of the state organisation of this country and the 61 mayors as partners in trying to advance the country’s progressive agenda and to establish the rule of law in each sector.
The truth is that there is a long-standing backwardness in the water sector in Albania. From the fresh after-the-election experience, in all the tours of hearings organized by us, complaints voiced by the citizens throughout the territory on water supply services were a primary concern.
Today, we, as a country, are a living proof of the simple truth that the distinction between developing countries and non-developing countries, between the most developed countries and developing countries is not made by natural wealth, but is instead made by knowledge and the ability to turn natural wealth in an asset for developing the country, for developing the society, and for enhancing our people’s well-being.
We are the second richest country in Europe in water resources and we are the only country in Europe suffering from serious problems with drinking water supply. If we consider water as an essential criterion for our existence, then, Albanians, on the basis of this criterion, in many parts of the country just survive, but do not live a normal life. With the exception of residents of seven cities across the country, in most residential areas, even large ones, people are supplied with running water from the tap for only 4-5 hours. In villages, they do sometimes get just 1 hour of supply per day.
It is unacceptable that even in the middle of the capital we see the gruesome testimony of this long overdue backwardness but, above all, the backwardness of the state itself and of the two tiers of government. Of course, the biggest responsibility lays with the first tier of government, namely with the central government, which for 27 years has failed to find a solution to such a flagrant problem visible to the eyes of everyone. It suffices to just take a look at the terraces of Tirana, to understand the dimension of the situation.
A very detailed study has been made, starting from a database. The data are really shocking. It suffices just it to say that, according to such data, using only 1% of our water resources is enough to guarantee uninterrupted water supply, day and night, to the entire population of the country. Only 1% of the resources we have available. At a time when other countries have no underground water at all and manage to supply water to their population around o’clock, having perfect water supply systems in place.
It is almost 30 years since water has been considered as a free commodity, not as a colossal fortune that can and should be used as a drive towards development and prosperity. A commodity with no owner, because in the whole territory, the power of state on the water sector has not been present at all. We must all be ashamed that water utilities have for years now been turned into employment companies for people having no relation whatsoever to the sector and people who do not give any contribution to the companies, except that they are part of an abrasive, degrading, and destructive process for the companies themselves and for the water resources available to citizens, with all the consequences we all have in mind.
In Albania we use 10 times more electricity than in Germany to bring water into the taps of citizens. In the cost of the water we consume, 40% of it is covered by electricity used for the pumps located in almost every palace, or water supply throughout the country. 12% of the billed energy over a year’s time all over the country goes to produce drinking water, about EUR 30 million a year.
Over the last four years, a lot has been spent, nearly EUR 400 million to build a new water aqueduct, to improve the distribution system, or even for wastewater treatment plants. However, as you yourself can testify, the situation is economically unstable in every single municipality in the country. In every 4 litres of water produced by all this degraded and high cost machinery, only 1 litre is billed. This makes the state subsidize the water supply utilities one year after the other to not let them go bankrupt.
The situation cannot get worse than it is. Only a radical reform with an iron determination, similar to the reform and the determination we had all together in the electricity supply field, could give us the solution to emerge from this bankrupt and agonized system, getting endless investments and giving no significant and potential improvements in the daily lives of citizens in return.
We have passed through all the stages and have, during this time, made researches to identify on how we can best address this issue. I can share another shocking figure with you: the Albanian state, through various governments, has spent money to have in 23 years 27 National Water Strategies, which shows that some of these strategies are simply funded and one had a clue on what was being funded. Their funding was made at conditions of full absence of coordination within the governments themselves. Let alone the strategic documents accompanying the Strategies, which are also a mountain-high pile of papers, which have neither been implemented, and apparently, nor been read by anybody else, but their authors.
We have built an operational plan over all the bitter experience, above all the written strategies, over all consultations we have made and we want, together with all of you, to undertake this colossal work, day by day, to get away with this humiliating position to the country and degrading to the family customers throughout Albania. We cannot accept that the main problem of this country with such a precious wealth to be the inability and unwillingness to turn this natural wealth into tangible quality of life. We cannot accept this, at no cost.
We have built a plan which starts with the public appeal, which I invite you all to repeat for 90 consecutive days. All those who are supplied with water illegally have 90 days to fix their situation. We will not start with penalties. Water theft, just like energy theft, just like any other theft, is punishable under the Criminal Code of the Republic of Albania. But, given all this legacy, which is a mental legacy as well, we find it appropriate to give time to all water consumers to get self-regulated.
In cooperation with the municipality, with the support of the State Police and all other central structures, we will immediately begin cutting illegal connections. But, this will not be accompanied by penalties. For ninety days, whoever gets and seeks to get water afterwards from the water supply system must be self-regulated, should conclude a contract with the respective utility, so that they will not be penalized after 90 days.
Our aim is that within the first 300 days of governance, more or less up until June, we have installed meters to all those who will be self-regulated, or who will afterwards be obliged to be regulated, also applying the penalties, which shall be very severe. The Criminal Code is very clear on this matter.
Within less than a year, the struggle should be focused on the mind-set, change of mind, because, fortunately, just as with electricity, the example is very clear. Not everybody steals water. Not everyone fails to pay. There is a considerable number of regular paying citizens. That share of the population neither can afford to continue paying for those who do not pay, to keep the water utilities running, nor can they be penalized with less supply, because the rest does not pay. The fact that there are regular paying customers in every city, in every area, from the poorest to the richest parts of the country, is sufficient to tell others that you are no different from them and that you have to pay in the same manner as they do.
The national operation for clearing the network from illegal connections and from all those who are in violation of the Criminal Code of the Republic of Albania will start immediately and, on this I would kindly ask all Mayors, all Prefects, all utility directors to repeat each day, for 90 days, that the operation will be based on the necessity for people to engage with their free in fixing their condition. However, that aside, the operation shall commence immediately.
On February 1, 2018, all those household or businesses customers identified with unlawful connections will be prosecuted and, pursuant to the laws in force, they risk much heavier measures than the water bill, which, for the sake of truth, throughout the country is very low compared to the cost of water production. Also, consumers who have arrears should take measures to offset the unpaid bills before they get disconnected from the service.
As of October 21, service operators across the country have binding orders, to not sign any new contract, if the applicant does not have a water meter. Of course, in this effort, the municipal burden is considerable. It is not the same as in the case of the electricity operation, as in this case municipalities are vested with direct responsibility. On the other hand, even Government’s understanding is special, given that municipalities do not have all the necessary opportunities to operate independently from the Central Government support.
The government shall subsidize not a single penny for any utility not joining this joint effort and not doing its task in this endeavour. If utilities fail to be involved in this operation, they shall get not even a single penny in subsidies. If the utility is involved in this operation, if it does its own job, if the municipality does its job, it is certainly up to the government to support it and to ensure continuity. We can refer to the law blindly, saying this is your job, so do it, because water supply of the population is a complete, shared responsibility, but we are aware of the limited possibilities of municipalities opportunities and of the fact that, in this operation, we are partners. We are in this not to leave responsibilities to each-other, or to blame each-other.
I want to inform you that there are 270 thousand households, or commercial subjects, not currently using water meters. This can no longer be tolerated and everyone should be invited to be self-legalized now, without penalties.
Twenty-five thousand wells are recorded as being opened in the Republic of Albania, of which only 265 have permits. A barbarity on its own, but also a product of a nearly 30-year-old tradition of the state abandoning its powers vis-à-vis this vital need of citizens. By 2018, any customer who uses, or wants to use groundwater, must be licensed to use this common asset. Formalization of all wells meeting the technical conditions and the closure of all wells not meeting such conditions will be part of this operation too. The entire well system will also be controlled by meters.
There is another element for which the Mayors having rivers in their respective municipal territories are more than aware of and have raised it as a concern — namely the story of abusive exploitation and free deviation of the riverbeds. Abuse of rivers has also turned into a major cause of flooding, which, when occurring, cause tens and tens of millions of damage across the country. We want to immediately put a halt to taking inert materials from the rivers, remove the inert nodes deposited on the riverbanks and start the battle against erosion and protection of agricultural land.
Starting from 15 November, all subjects that will be identified on the beds and banks of rivers or lakes with or without water in relevant areas will be prosecuted in accordance with the applicable laws and rules, while their vehicles shall be seized, according to the applicable laws.
In parallel, the Ministry of Tourism and Environment shall launch a national operation, in cooperation with local government units, for cleaning the river beds from inert materials, waste, spills of all sorts of industrial chemicals that damage our ecosystem, affect our health and remain accumulated there for many, many years.
By end of 2018, measures shall be taken to improve this situation in general, by strictly stopping the urban and solid waste streams and preventing untreated industrial waters from reaching the rivers.
In this battle, we consider ourselves together and without any distinction with all of you. Of course, the experience, the daily necessity of the work of mayors, makes you not only partners in the implementation of this massive operation, but you are also welcome to provide any suggestions and concrete ideas in improving the work.
The newly appointed prefects will also be part of this operation, closely coordinating the work between the Government and the mayors, being close to the local government units and ensuring synchronization of our efforts at any moment in addressing any concerns or any situation that requires an ad-hoc intervention.
In this operation, we have also considered the necessity to design a solidarity package for the people in need, just as we did with electricity. But, unlike electricity, it is widely known that water is a commodity that can be much more easily spared by the consumers, because it is not the same as the need for switching on the lights when the night falls.
If, in the most developed countries, in the countries with the highest per capita incomes, in the countries with the highest welfare there is no consumer leaving without making sure that the tap is closed, I do not think we can tolerate drinking water to be used for washing the streets, as happens randomly, in front of commercial units of all cities, starting from Tirana, let alone irrigation of gardens with drinking water and so on.
This is a difficult challenge, but very possible, as we are not in the conditions when we should start charging for a commodity where nobody pays, but we are in the conditions when an important part of the population pays regularly, despite having high income, or lower income. Even in the villages with the lowest supply, not everyone fails to pay; there are plenty who pay for the service. There are many examples, thanks also to the work done by some water supply companies, by some water supply managers, where even the most remote village pays regularly for the water they use. Which means that this is a matter of legality, matter of compliance of each customer’s behaviour with the law and in relation to the obligations to the community.
The Government will fully support every municipality and every water supply utility that will do its job in this operation, but will not subsidize even a single penny for those who will continue with the old deed. Here, I am mainly referring to the water utilities, to the water utility managers who come up with all sorts of reasons and put forward all sorts of justifications to the Mayors, putting them in the position of either to believe their excuses made on no grounds, afterwards trying to find justifications for their own selves, or give up. There is no reason either to believe in endless words, or to give up.
Water managers are not social workers, they have no obligation to generate social policy and they can no longer hide theft and abuse after the word “social”, because the same happens with this sector as with the electricity sector, where, continuously, even as we talk today, we see that there is an internal war within the system for those who abuse with bills, or with their quality as employees of the company. Not to say that it is true that water utility workers often get money in return to illegal connections, because illegal connections can only be linked in the grid by technicians. It is the water utility technicians, the ones who have to take care of the state work, exactly the ones who take bribes in exchange of illegal connections. This is an old story. I have encountered it myself as Mayor of Tirana for a long time, when we were dealing with this issue. My experience as Mayor has also proved me that in this battle, the Municipality and the Mayor never win if they have no support by the Government, police, state structures and other relevant actors that should be involved in this operation.
In this respect, we know our task very well. We will be by the side of every local government unit. On the other hand, the only thing we ask from every local government unit is the outcome in this direction. The more results we get in this endeavour, the more financial support we shall provide, within the capabilities of the state budget, for utility restructuring. It is up to you, Mayors, along with the Municipal Councils, to clear these utilities from the parasites, from the predators, from the people who are there just to receive a salary. Utilities are not employment enterprises and cannot do their job unless they act as a company on the market, if they do not require for the goods they sell the price they have. This is the way to start improving the utility budgets, local government budgets, and getting more budget on investments even from Central Government for this vital sector.
Once again, thank you for the presence!
Question: Have the government though of revising the price of electricity, not as a business price, but another price for the water supply?
Is it possible to reimburse the VAT and electricity debts from former communes? Is there any possibility for the former water utilities to be reimbursed, or do something with the obligations of the former communes?
Prime Minister Rama: When the energy sector reform began, the general trend was, and I am not only talking about the opposition, but also about the ruling majority, and also about internal people working for the reform, was to pardon the unpaid bill. The reason I was against this approach was that forgiveness leads to continuity and asks for other similar acts, while time showed we were right. We, in the process, step by step built a whole set of mitigating mechanisms for those who entered into a full legal framework and showed willingness not to continue the same old story. Relief packages were introduced step by step, which guaranteed facilitation of the burden of the past, but also the continuity of the new line.
I know it for a fact and I find it very clear that if we said the debts are yours and you have to pay them, each mayor would stand up and say, we have no chance of doing anything, because we cannot pay for these debts. That is not what we are saying. What we are saying is a different story altogether. Debts are part of a story that in the first place needs to change our mentality. They are there, no one asks you to pay them today. But, the evaluation on the debt will take place starting from today and onwards.
If, later on, no new debts were accumulated, it would be much easier to study the way ahead together, that is on how we would be released from the old debts, which will not be a burden on your shoulders. However, that said, debts are there, and on your shoulders for as long as you show that you have departed from the past, or show that you continue in the same old experience of the old days. If it continues the same way as in the past, of course it will not be possible. Which means that both in the law, and in the reform plan, we have not provided same foreseen futures for all the utilities. In this process there will be utilities marking success and those not marking any success. Those utilities will not longer be left under local administration. We will take them. For example, tomorrow, Shkodra’s utility can succeed and may seek to take Lezha’s utility under its administration as well. In other words, they are companies and they should start developing as companies. Water companies in many countries, say, the water company of Barcelona provides services around the world, in Africa, in Latin America, buys water utilities there and manages they accordingly.
Starting to work as a company, will bring, in a not too distant future, a situation when a healthy company that has been relieved of the burden of the past and has renewed the wounds of the past can well take another utility under its administration. For example, the utility in Malësia e Madhe, can take under administration the utility of Shkodra, or vice-versa, or both of them can merge into a new company, which takes another utility under administration. Tomorrow, Tirana’s water utility may run the water utility of Saranda. This is the logic.
The matter is that we have treated these utilities as if they belong to no one. They are funded by the state, and are self funded, for as much as they are funded. What did we do to the water works? Employed people. I know that, if Mayors were to talk what they really think, they would say that even the director is appointed by the party, as the party has told them to appoint a certain person as the Director of the utility as he/she is the one to collect more votes. Each of you, as a local government leader, has an obligation, namely to establish a new relationship with the utilities and to ask relevant utility to behave as a company, by asking from each director, in the first place, to act as the director of the utility, not as the party director, or house manager.
In the process, all these will be difficult topics, but the journey itself will tell us who will do what, depending on how much they will collect. The most crucial element is to stop the haemorrhage. Because all utilities have a severe haemorrhage caused from stealing of this commodity. This is the starting point. Once we take care of this element, we stop the haemorrhage, and then we will see the potentials of each body to stand, walk, run, dance, depending on how strong it is. There will certainly be a tendency by certain utilities to continue to get subsidies, as they will not manage to cover their costs, for objective reasons, because of their small size, the relatively large electricity costs and so on, but, they should do so once they have proven that their duty is over with, namely not to have even a single pipeline giving water for free.
Regarding electricity bills, if the utility were healthy, you could negotiate your contract with private suppliers, as is the case with many businesses. You can have a look at the market. There are many businesses buying energy at a much cheaper price, because they make deals with private suppliers. In the context you are in, you are not able to do so, because for the private supplier this would mean becoming bankrupt, thus joining the water utilities. Because they may say we are ready to sign the contract with you and then, at the end, you would tell them to go and talk to Central Government, as you have no money.
Debt of the past is there. We offset no debts, but different approaches will be taken depending on the financial behaviour of each utility. A successful utility may have special access to its debt, because it shows that debt is not a result of its irresponsibility, but is instead a burden inherited from the state’s irresponsibility, both at the central and local government level. What is sure is that if the utility starts to yield results and does not accumulate new debt, the Government behaviour vis-à-vis the debt of the utility would be totally different, as compared to the behaviour vis-à-vis the utility that may continue to think that the party is going to treat it differently. There will be zero tolerance to different treatment! We cannot continue to treat water utilities as party organizations. Water is a commodity all citizens need, regardless of what their political affiliation is and it is our duty to guarantee proper water supply services to them.
Note: the above article has been translated by SHUKALB from the Albanian version of the article published on the prime minister website on 06 November 2017
On 25 - 26 May 2017, SHUKALB conducted the first training course in Prishtina, Kosovo under the Agreement that SHUKALB signed with SHUKOS during the Balkans Annual Joint Conference in November 2016. The course “Introduction to Water Treatment” was delivered by trainers from the Prishtina Regional Water Supply and Sewerage Company. The training course was attended by participants from Water Regional Companies of Kosovo, such as Prishtina, Hidrodrini, Radoniqi, Bifurkacioni, and Hidromorava, as well as from Municipality of Shijak in Albania.
.JPG)
