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Reform Support
Analyses and action plan towards sustainable water services in Estonia banner

Supporting reforms to transition to a green economy and fight climate change

Funding Programme
Structural Reform Support Programme (SRSP)
Year
2020

Analyses and action plan towards sustainable water services in Estonia

The European Commission supports the preparation of a roadmap for the consolidation of the water utility sector in Estonia, a requisite for a sustainable and socially acceptable financing strategy.

Context 

Water supply and sanitation services have remarkably improved in Estonia over the last 20 years but they remain dependent of significant financial support from the European Commission. These services are now facing new challenges: additional investments are required to keep up with social expectations and environmental and health regulations; additional funding is needed to operate, maintain and potentially renew assets financed through EU grants. These needs must be met at a time when downward demographic trends will affect revenues from utilities. In addition to that, EU funding for water supply and sanitation services will be gradually be phased out.

Estonia lacks thus a sustainable funding strategy for long-term operation and maintenance of drinking water and waste water treatment services. Indeed the fragmentation of the sector and the limited size of multiple service providers, hinder the industry’s financial capacity to operate, maintain and renew existing assets.

Support delivered 

The European Commission and the OECD are partnering with the Estonian authorities to enhance the sustainability of water supply and sanitation services in Estonia. The OECD will support the preparation of a roadmap for the consolidation of the water utility sector, a requisite for a sustainable and socially acceptable financing strategy. This will include an analysis of series of issues, in particular in relation to tariff setting, economic regulation of the sector, and legal provisions but also possible solutions, a timetable and a communication plan.

Results achieved 

Estonia will develop a sustainable funding strategy for long-term operation and maintenance of drinking water and waste water treatment services.

More about the project 

You can read the full report: