Title:Infrastructure Regulation and Tariff Policy Development - Stage 2 - Implementation for Water Pilot Project
Budget:500,000 EUR
Dates: September, 2016 - March, 2018
Partner: Hydrophil GmbH (Austria); Sachsen Wasser GmbH (Germany); Water Resources Marketing LLP (Kazakhstan)

The Government of Kazakhstan has requested EBRD to provide technical assistance on reforming the tariff policy and regulatory framework for natural monopolies and dominants in infrastructure sector. The Bank approved Infrastructure regulation and tariff policy development project in 2013 with the objectives to provide assistance to the authorities of Kazakhstan in reforming the existing system of tariff regulation for natural monopolies and dominants in 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. As of October 2015, the Bank has completed Phase 1 of Tariff TC by providing the Government with recommendations on improving the tariff policy and regulatory framework. The Government has agreed with these recommendations and requested actual implementation of these recommendations on the basis of pilot projects, which will constitute Phase 2 of the project. Below is the Terms of Reference for Phase 2 of the project.
The expected outputs of the project are described below:

1.Prepare detailed incentive based tariff regulation methodology and document tariff calculation process for the water sector;
2.Assist pilot company in implementation of proposed tariff methodologies;
3.Assist Regulator in implementation of proposed methodologies and reviewing of investment program of pilot company and tariff approval;
4.Assist the Regulator and Legal Consultant in drafting relevant amendments to laws and secondary legislation based on prepared methodologies and recommendations.