As of November 5, 2025, the Environmental Investment Centre (EICC) has opened a call for applications to support non-construction development activities and research in the field of water service reform. The support is aimed primarily at research and strategic activities that can be used to prepare for the merger of public water supply and sewerage service areas and more efficient use of infrastructure.

The reform is motivated by the fact that in previous years the system has been largely supported by European Union funds, but these funds are about to end. The budget for applications in this round is one million euros, and one project can receive up to 400,000 euros in support together with self-financing. Recipients of support may be local government water companies, companies, non-profit organizations and foundations – private individuals are not expected to receive support.

The aim of the reform is to ensure that water companies are self-managed in the future and that water prices are reasonable for consumers. As Vahur Tarkmees, project manager for the water services reform at the Estonian Economic Commission for Europe, says: “Consumers expect that, as a customer of a water company, they will consistently receive high-quality and reasonably priced water services.” Kristjan Truu, Undersecretary for Maritime Affairs and the Water Environment, also emphasises that the success of the reform depends on the strategic decisions of local governments and water companies: “The success of the water service reform depends on how well we can involve local governments and water companies in strategic decision-making.”

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Who is this support intended for? The target groups for the support are clearly defined. Water companies that serve at least 10,000 customers or that are region-based companies, as well as municipalities, companies or non-profit organisations whose main activity is in water management, can apply in particular. The support activities must be non-construction — for example, a strategic roadmap, asset and investment needs mapping, analyses, IT developments or preparation for the takeover of service areas.

This means that the support does not cover the construction of pipelines and treatment plants directly, but the planning stages. This approach helps to create a reliable basis on which larger investments can be confirmed later.

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Why is this important? The Estonian water management is currently much more fragmented than it could be – there are nearly 130 different service providers operating in the sector, as a result of which the prices of water and sewage services can differ significantly from region to region. For example, in rural areas, where the number of customers is smaller, infrastructure investments are relatively large and the water price is therefore higher.

The strategic roadmap for the reform until 2035 highlights that the goal is to ensure high-quality water service regardless of place of residence, reasonable water prices for consumers and self-sufficient operations of water companies. This is an important step closer to ensuring that water and sanitation services do not depend solely on subsidies, but operate sustainably.

Overall, this new round of funding offers a good opportunity for local water companies and municipalities to receive planning support for their services. If you are involved in the field of water management or are interested in it, it is worth considering the opportunity - this way you can contribute to ensuring that drinking water and wastewater services in Estonia are of high quality and reliable in the future.