Water supply and wastewater economy: problems, investments and perspectives

Abstract

In Lithuania water supply and wastewater economy is managed by local municipalities. Recently, specialized water supply enterprises of municipalities encounter many problems. In many places water supply and sewerage networks are worn out, wastewater treatment facilities are physically and morally out of date, and there is a lack of funds for their renovation. During the period of independence the demand of water used by inhabitants and industrial enterprises decreased therefore the potential of water supply companies is employed insufficiently, and thus the cost price of water supply services increased. Water supply companies have lost a certain part of consumers, and their activity has become loss-making. The losses are to be covered from state or municipality budgets. After Lithuania has entered the European Union, the main attention in water management sector is focused on the implementation of Common Water Policy Directive, which requires rather large financial investments. After joining the European Union, it was necessary to harmonize the national requirements according to the legislation of the European Union: the core attention in water management sector was to be given to the implementation of the Directive of the Common Water Policy. The implementation of the European Union requirements in the water management sector required huge financial investments. Recently, European Union funds and international financing institutions have become the principle financing sources for the development of water supply sector. The European Union, International financing institution and national resources are the main sources for the financing the development of water sector