Challenges

With the exception of new EU member states and Turkey, the reliability and quality of water supply and sanitation services in ECA have deteriorated significantly in the last decade. The main issues to be addressed in the sector include:

• The resources needed to rehabilitate existing systems and provide safe water supply and sanitation services, as well as the adequate treatment of wastewater, exceed the present financial capacity in most countries of the region.
• The networks and treatment plants are in a state of severe disrepair due to their poor planning and design, the low quality of materials used, and most importantly, the lack of maintenance. 
• Energy consumption is high due to faulty design of pumping stations, old equipment, and low levels of automation (in some cases over 60% of the water pumped is lost and adequate pressure cannot be applied due to severe corrosion and associated leakages in pipe networks).
• Consumers (households, industry and public agencies) driven by low tariffs are not accustomed to water conservation and tend to waste significant amounts of water. 
• An unprecedented financial crisis exists in the sector due to factors including low domestic tariffs, poor revenue collection, the loss of subsidies, political interference in tariff setting, and practices such as barter and offsets (large debts to suppliers, most notably electricity, have accumulated in many CIS states).
• Managers lack reliable operational and financial information, autonomy and control over crucial aspects of their business making it difficult to run operations efficiently or to plan for systems development.
• Although water utility staff are generally well educated and demonstrate great resourcefulness, most utilities are overstaffed and there is little expertise in commercial utility management, financial management, and cost-efficient planning. 
• Poor hygiene education and pollution from discharge of untreated waste from municipal and industrial sources pose serious health risks, yet costs of adequate wastewater treatment would further worsen many utilities’ financial viability.