This document discusses inter-municipal cooperation for water services in Finland. It notes that Finland has 309 municipalities responsible for water services provision, with varying sizes and populations served. There are a few forms of inter-municipal organizations that currently exist, but they remain limited. The document identifies some barriers to greater cooperation, including fears around costs, control, and administrative issues. It recommends increasing contact between municipalities to build understanding and trust, carefully evaluating the sustainability of individual utilities, and focusing on customer needs to overcome fears and facilitate more cooperation.

1. Inter-municipal cooperation in
Finland: finding synergies and
addressing challenges
International Workshop: “Enhancing Sustainability and
Efficiency of WSS Provision”, EU DG Reform and OECD,
15-16 June 2021
Paavo Taipale, Head of Municipal Infrastructure

2. “How to build up
confidence and common
will between owners of
WSS utilities?”

3. Major legislation related to water
services in Finland
3
Water Services
Act
Health
Protection Act
Land Use
and Building Act
Environment
Protection Act
Rescue Act
Emergency
Powers Act
Act on Water
Resources
Management
Water services
provision
Water services
development
Fire fighting
water
Drinking water
quality and risk
management
Preparedness for
emergency
situations
Land use planning
Construction
Storm water
management
Pollution prevention
Environmental
permits
Water Act
Water supply
Wastewater
disposal
Silfverberg, 2017

4. Operational environment of Finnish WSS
• Large self-administration of 309 municipalities with very varying size and number
of inhabitants.
• Municipality is responsible for overall development of WSS on its administrative
area.
• The members of the administrative boards of WSS utilities are usually elected
members or deputy members of the municipal council.
• The (competitive) level of water tariffs has sometimes understood as a tool to
increase the attractivity of the municipality among people.
• Some utilities make some profit to its owner municipality, which is seen useful as
municipal tax revenues and state budgetary support tend to be limited compared
to the needs of municipal services and investments.
4

5. Intermunicipal WSS organisations in Finland
5
”water only, bulk supply”
~ 25 organisations
”wastewater only, bulk operators”
~ 10 organisations
”full service, ww-utilities”
3 organisations

6. Alternative options and support of inter-
municipal co-operation
• Contracting operational services (assessment of the need of public procurement?)
• Leasing wss networks (and/or treatment plants) to another capable utility
• Operational service provision by larger utility
• Creating ”expert pools” among small WSS utilities (public procurement, network
maintenance, preparedness improvement etc.)
• Active networking of private small cooperatives, requires initiative by the
municipalities
• State financial support to focused operational improvements (eg. digitalisation)
could be useful incentive after consolidation decision has been made by the small
utility
• Proposed by Association of Finnish to the Ministry of Agriculture and Forestry within
the preparation workshops of the National WSS reform
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7. Why so small amount of inter-municipal
WSS organisations?
• Lack of understanding of the status of assets of own utility
• Thinking ”we have had good water services of our own, why not in the future”
• Too little contacts between decision makers of neighbour municipalities
• Fear of loosing profitable own water utility
• Fear of rising water and wastewater tariffs
• Fear of adminisrative friction between intermunicipal WWS utility and
municipality’s spatial planning procedures and investments on networks
• Fear of all new…
• Fear of…
• It is a world of FEARS – are they real?
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8. How to get rid of fears?
• Increase regular intemunicipal sessions of decision makers with water on agenda
• Get to know each others’ WWS organisations
• Look closely at your utility’s economy, technical status of utility’s assets, human
resources and their skill level against requirements of the legislation,
preparedness level – does it look satisfactory?
• Ask your customers about inter-municipal cooperation
• Think realistically the sustainability of your utility
• Build up confidence!
8

9. “Find an discuss with your neighbours,
recognise realities, remember your
customers.”