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For Implementation

Indicate how the financial resources shall be obtained to implement Master Plan.

For O&M

Determine yearwise O & M cost and revenue and decide how to meet the gap if any

Assessment of the Financial Performance of the Utility-

It is important to assess the financial status of the Utility and present an accurate picture of the Utility's revenues, liabilities, costs and financial efficiency. This assessment should highlight any areas of concern in the Utility's financial standing and management, in particular related to:-

  • the levels of costs,
  • the levels of revenues from tariffs (and from government transfers or subsidies if applicable),-
  • the level of collections, and-
  • the level of indebtedness.-

Where a Utility is financially or institutionally dependent upon its local or regional government, the financial standing of the local or regional government should also be assessed. The focus of the financial assessment is to accurately portray a Utility's current financial position and identify areas for improvement that when implemented will generate cash internally, improve the financial position and subsequently attract external finance. An accurate financial model should be constructed to show that the Utility could afford both to finance its operations and maintenance costs, and the short-term investment program. It is important to identify all possible sources of investment financing during the project preparation stage and to reflect this in the financial model.

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