The overall objective of the contract is to improve life standard of citizens by raising the environmental standards in Serbia to approximate EU levels. The purpose of this contract is to improve the efficiency of water services and to support the implementation of the requirements for cost recovery both at central and local level.Results to be achieved by the contractor:Result 1. Improved utility service system on local level;Result 2: Developed model for separating water services from other communal services;Result 3: Developed models for business performance improvement of Public Utility Companies;Result 4: Tariffs methodology and water services pricing system developed;Result 5: Developed model for the establishment of the Regulatory body – Regulator;Result 6: Strengthen capacities on local level regarding introduction of the Regulatory body – Regulator.