The project aimed to prepare a long term cost recovery plan that demonstrates to MCC that GoTL has a sustainable financial plan to recover the cost of service and renewal and replacement (R&R) of the assets provided by the WSD project. The CRP was aligned with the long-term development plan of GoTL and the long-term business plan of BTL (the national water company).
This assignment had the following specific objectives:
- Update the preliminary financial and cost recovery model developed by MCC;
- Ensure that BTL staff receive sufficient training for them to understand the model and use it;
- Evaluate the ongoing water supply financial cost recovery initiatives;
- Evaluate the various customer types that will use the wastewater system and the policies and tariff structures;
- Evaluate the newly installed system funded by others and recommend modifications to the billing module;
- Develop a combined water and wastewater tariff structure that will likely necessitate substantial GoTL subsidies in the initial years and a financial plan to fully recover (through tariffs) the costs of operation, service, and R&R costs by 2040, assuming all the assets would come online by 2029;
- Conduct an affordability study to inform the Cost Recovery Plan.
CLIENT: Government of Timor Leste and MCA-Timor Leste
LOCATION: Timor Leste
DATE: 2024