AS Tallinna Vesi and the City of Tallinn are working out a solution to complete the construction of water supply and sewerage system by 31 March 2011 At today's meeting Tallinn City Government reviewed a draft agreement to amend the Services Agreement, which would significantly accelerate the construction of water supply and sewerage system and would ensure the construction of sewerage system for areas established earlier, i.e. for buildings constructed on the basis of a construction permit issued before 16 June 1995, by the end of March 2011. Based on the amendments to the agreement the liability for the construction of water supply and sewerage system in areas established earlier would be transferred to the water company. At the same time it is planned to extend the Services Agreement up to year 2020. The company would still have the liability to comply with the 97 Levels of Service regarding quality of products and services. Pursuant to the Public Water Supply and Sewerage Act the costs for the construction of sewerage system in areas established earlier should be covered from the revenue earned through the tariffs. When up to now while compensating the City has treated each of the connections to the public water supply and sewerage system separately, according to the draft amendment a development component would be added to the water invoices of AS Tallinna Vesi domestic customers starting from March 2008 until December of 2017, however, as this would fully be compensated by the City of Tallinn, then it would not bring about an increase in tariffs for customers and end users. Pursuant to the draft amendment the City of Tallinn and the water company would agree that the k factor would be fixed at 0% from 2011 until 2020. Thus there would be no real tariff increase during the abovementioned years, as the water price would be adjusted only by consumer price index. More information: Eteri Harring +372 6262 225 eteri.harring@tvesi.ee