Closing Seminar on Elaboration of a New Assets Valuation Methodology

On December 11, 2017 a closing event under the project “Improvement of the Asset Management in Sofiyska Voda JSC through Elaboration of a New Assets Valuation Methodology“ has been concluded financed by the Danube Water Programme. Official partner of the seminar was Bulgarian Water Association. During the forum the main activities have been presented according the Programme listed below.

Description of the activity

The objective of this competitive grant project is to improve the Sofiyska Voda JSC’s Asset Evaluation Methodology and optimize the Company’s asset register. Sofiyska Voda JSC uses methodology for assets valuation which was created years ago and recommendations were made many times from the Municipality of Sofia to develop a new methodology to assess in a greater detail and in a more objective manner the condition of assets under management. Furthermore, the evaluation methodology and the outputs should be closely related to the planning of the Company’s annual investment repair and rehabilitation programs.

Implementation of the activity

The new Assets Valuation Methodology of Sofiyska Voda JSC is targeting to improve the assessment pf the physical condition of assets under operation and respectively to facilitate the decision-making process regarding which assets should be renovated first. In addition, the Methodology will have a direct impact on the Bulgarian water sector. Currently, performance based contracts for management of public water infrastructure are signed between the water operators and the regional water associations, which are in charge of the municipal / state infrastructure.

Development of the new Methodology will be based on theoretical and practical approach for the evaluation of both surface and underground facilities based on site visits, pipe sample analysis and CCTD survey of the pipes.

Expected results

The outputs of the project will be disseminated among the rest water operators and can be a basis for the development of their own methodologies for evaluation of the condition of assets managed by them (currently a requirement in their performance based contracts). In this way, the project will significantly contribute to the implementation of the water reform in the country, which successful completion is one of the EU’s preconditions for allocation of funds in the Environment sector.

You can download the accent materials from the links below: