The financial model of the Water Users' Organization was discussed today during a thematic online seminar. This model was created for the purpose of preliminary calculation of the tariff for basic services of WUOs and formation of the estimate of activity of WUOs for the year with the forecast for 5 years.

The event was a part of a pilot project jointly implemented by the Ukrainian Agri Council (UAC) and the USAID Agricultural and Rural Development Program - AGRO.

"The draft bill 5202-d on Water User’s Organizations and hydrotechnical land reclamation" provides for the exclusive competence of the general meeting of the organization’s participants to approve the budget, determine the need for special and reserve funds of WUOs, decision about entrance fees, determine the method of calculating the entrance fee. In addition, the exclusive competence of the general meeting is the target contributions that can be sent for repairs and construction. And it is important that during the general meeting the tariff for the organization's services will be approved. Therefore, it is necessary to be ready for this. And during our meeting, we will work on a model for you to come to the general meeting with clear answers," said Roman Fedorchenko, a consultant for the management of the WUO’s and Energy Issues Project.

The financial model, which was developed within the project of WUO, was presented by financial analyst Mykhailo Liemieshko. You can read more about it using the link: https://cutt.ly/QTHjFnf

Regarding tariff formation for WUO’s services:

• the tariff is contractual and not regulated by the state;
• the amount is set by the general meeting, or calculated according to the approved form;
• the services’ cost will be the same for WUO and differentiated.

Volodymyr Khvostov, the UAC participant from Kherson region and co-author of the draft bill 5202-d, noted that water users had been waiting for its adoption for more than a month. There are many questions at the moment, but there are constructive answers to all of them. One of them concerned the financial model of Water Users’ Organization. During the online meeting participants could get full information on this topic.

"We need not only the desire to unite, but also to act. After all, this will allow businesses that receive water through canals to manage processes and build their own pumping stations. This will settle the issue between water users and the conditions of their activities," Volodymyr Khvostov mentioned.

It will be recalled that from August 2021, the UAC and the USAID Agricultural and Rural Development Program - AGRO are implementing a joint project, which will create at least two  Water Users’ Organizations (WUOs).

Water User Organizations are non-profit organizations, the creation of which is provided by the bill 5202-d "On Water Users’ Organizations and promotion of hydrotechnical reclamation." They should take into their balance the objects of the reclamation system of the lower level, which are in state or communal ownership or are ownerless, in particular, pumping stations. Organizations will be responsible for their maintenance and modernization. Thus, agricultural producers who use irrigation receive a legislative instrument that allows them to invest in irrigation or attract investment. Currently, the Verkhovna Rada Committee on Agrarian and Land Policy supported the bill before the second reading and recommended that the parliament to adopt the document in the second reading and as a whole.