The legacy

The World Bank is working to improve water supply and sanitation in Europe and Central Asia countries. Before the transition to market economy began, water and sanitation services in many countries in the region were provided by state-owned, centrally managed public utilities. These utilities relied heavily on state subsidies and often delivered inefficient service to customers. Moreover, tariffs rarely covered the costs of operation and maintenance.

After 1991, central government subsidies to water utilities were cut sharply. With the shortfall in finances, the maintenance of existing infrastructure deteriorated drastically, albeit to varying extents in different countries.

Current state of the sector

The state of the water and sanitation sectors is now strikingly different among countries in the region. A host of factors account for these differences, including the state of the sector before the transition, the extent of reforms undertaken so far, the macroeconomic performance of each country, levels of household incomes, and the availability of external assistance. While some countries have made great progress in improving the level and quality of services, and in their institutional and financial performance, in others the sector is still in the midst of a severe crisis.

Coverage in urban and rural areas

Although official data for the region indicate relatively high coverage of services -- up to 90 percent -- the reliability and quality of service has deteriorated alarmingly in the past decade. Coverage in urban areas is generally higher than in rural areas, but intermittent service is common. Moreover, inadequate functioning of water treatment plants and badly deteriorated distribution networks have made drinking water unsafe in many urban centers, leading to a rise in water-borne diseases such as typhoid and diarrhea. Rural water supply services are largely in a state of total disrepair.

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