Infrastructure Regulation and Tariff Policy Development and Implementation for Water Pilot Project

Assignment location

Central Asia, Kazakhstan


European Bank for Reconstruction and Development

The objective of the assignment was to support the Government of Kazakhstan in implementing a modernized legal, institutional and methodological framework for economic regulation of the country’s infrastructure. HYDROPHIL, therefore, helped the Kazakh authorities in reforming the existing system of tariff regulation for natural monopolies and dominants in the infrastructure sectors, adopting a modern and transparent framework for regulation, as well as strengthening the institutional powers and means to implement and administer such framework. HYDROPHIL provided the following services:

  • Build, elaborate, document and implement a concrete, practical and detailed incentive-based tariff and tariff-related methodologies and procedures for the water sector;
  • Agree on methodologies and procedures with the stakeholders and apply methods to a water pilot company;
  • Calculate the level of the justified tariffs of the pilot companies
  • Assist the Regulator in documenting tariff methodologies
  • Develop the Tariff Reform Implementation Plan for both the Pilot Company and Regulator
  • Develop Key performance indicators (KPIs)
  • Monitor operational and financial performance
  • Assess the overall implementation of new tariff methodologies
  • Assist the Regulator in improving its overall institutional capacity;

Picture source: bogdanserban