Last year, over three and a half million cubic meters of water were pumped into Budva’s water supply network but did not reach users, reflecting a staggering loss of 55 percent in the city’s water supply system.

This information is revealed in the annual work program and financial plan for 2025, which “Vijesti” was able to review.

The document received initial approval from the Board of Directors of the city’s primary municipal company, and subsequently from the local parliament, with votes from the coalition group “Budva our city,” the European Union, and the Civic Movement URA, supported by the Democratic Party of Socialists.

The document notes, “Throughout 2024 and in prior years, efforts have been made to reconstruct and build sections of the pipeline, identify faults within the primary, secondary, and tertiary networks, and locate illegal consumers. However, we conclude that the network losses have slightly increased compared to 2023, currently standing at 55.6 percent.”

For context, network losses were recorded at 63.66 percent in 2020, 58.6 percent in 2021, and the lowest at 51.82 percent in 2023.

“By the end of September 2024, 7,449,590 cubic meters were pumped into the water supply system, which is a 10 percent increase from 2023 and a 16 percent increase from 2022. The amount taken from the Regional Water Supply Company saw a slight decline of about one percent from 2023, yet was approximately three percent higher than in 2022. Notably, the year yielded a bountiful supply with a relatively successful tourist season, leading to an increase of around 17 percent in water drawn from our own sources compared to 2023, and about 24 percent compared to 2022.”

Although the company has consistently managed obligations to employees, the Revenue and Customs Administration, and suppliers, it continues to face numerous operational challenges.

“The primary issues include the deterioration of the water supply and sewage networks, persistent high percentages of losses despite efforts to mitigate them, difficulties in distinguishing technical from economic (commercial) losses, challenges in efficiently collecting receivables from government and municipal authorities, an incomplete consumer database, and issues surrounding the legalization of connections and uncollectibility of receivables. Additionally, the draft Law on Water Services, which will significantly impact operations post-adoption, the General Collective Agreement, and the Sectoral Collective Agreement add to these challenges.”

The document highlights that Vodovod is currently dealing with numerous lawsuits filed by employees against the municipal company, seeking payments for labor rights, unpaid vacation pay, application of coefficients, among other claims.

To address these problems and enhance the collection of receivables from municipal authorities and budget users, a commission was established in September 2021 to ascertain mutual receivables between the company and the Municipality.

“In parallel, the Municipality has formed its own commission to identify mutual claims between itself and the Water Company. As of September 30, 2024, the water company’s debt to the Municipality stands at 1,557,660 euros. Conversely, the Water Company has claims amounting to 2,056,998 euros from the Municipality and other municipal budget users, with the Municipality’s debt at 1,027,378 euros and municipal budget users’ debt at 1,029,620 euros. Additionally, the Municipality has assumed the payment of water consumption for the “Palestina” settlement in Grbalj, amounting to 455,953 euros, along with debts for its owned apartments totaling 6,252 euros,” the report elaborates.

Among the municipal budget beneficiaries, the most significant debtor is the Protection and Rescue Service, with a debt of 552,281 euros as of September 30, 2024.

Other notable debts include the Football Club ‘Petrovac’ at 273,784 euros and FC ‘Budva’ at 74,748 euros. Additionally, there are debts assigned to the public bailiff that remain unsettled, including those from the Reževići Memorial House and Budva Holding, as indicated in last year’s work report.

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