site.btaParliament Adopts at First Reading Water Supply and Sewerage Bill, Establishing Unified Regulatory Framework Governing Sector Activities

The National Assembly adopted on Wednesday at first reading the water supply and sewerage bill submitted by the Council of Ministers, which establishes a unified regulatory framework governing activities in the sector. 118 MPs voted in favour, 74 against, and six abstained. The bill was supported by GERB-UDF, MRF-New Beginning, BSP-United Left, There Is Such a People, one MECh MP and one independent MP.

According to the explanatory memorandum, the draft law is based on the bill prepared in September 2022 by a working group formed by order of the Minister of Regional Development and Public Works, while retaining the objectives set out in the 2020 version of the bill, amended in accordance with the requirements of the National Recovery and Resilience Plan.

The requirements are to introduce the separation of the regulation of water and sewerage services into a separate entity; to introduce a new pricing structure for water and sewerage services based on guaranteeing minimum costs for the use of the systems and the necessary services; to regulate the role of Bulgarian Water and Sewerage Holding EAD; to clarify the roles and functions of stakeholders and to create conditions for consolidation in the management and operation of water and sewerage systems and the provision of water and sewerage services.

The bill provides for the unification of separate territories, namely, to align them with administrative regions, in order to increase the efficiency of the management of the water and sewerage sector based on the principle of "one region, one water and sewerage association, one water and sewerage operator."

The country is divided into 28 separate territories, which coincide with the administrative regions in accordance with the administrative-territorial structure of the country.

“Fifteen of the 265 municipalities have their own water and sewerage companies, two of which are in good financial condition. All the others are on the verge of collapse, some of them have applied to join the Bulgarian Water and Sewerage Holding,” Minister of Regional Development and Public Works Ivan Ivanov said. “Failure to pass this bill would mean a loss of EU funds for these regions,” Ivanov said, adding that the law provides an opportunity for good governance.

MPs extended the deadline for proposals for amendments between first and second reading to the maximum of 28 days, after which the bill will be considered at second reading.