Transcript Project Overview

Financing opportunities in water
sector
within the Sectoral Operational
Programme
for Environment
SOP ENVIRONMENT – PRIORITY AXES
NSRF - Priority 1 – Development of Infrastructure ti European standards
NDP - Priority Axis 3 – Protection and improvement of the environment
Global objective of SOP ENV– împrovement of living and environmental standards,
focusing, mainly, on compliance with environmental acquis communautaire
Specific objective 1
Specific objective 2
Improvement of quality
Development of
and access
sustainable
to water and wastewater waste management system
infrastructure
Specific objective 3
Reduction of negative
environmental impact
caused by
urban heating plants
Specific objective 4
Protection
and improvement of
biodiversity
and natural heritages
Specific objective 5
Reduction of the incidence
of natural disasters
affecting the population
Priority Axis 5
Priority Axis 2
Priority Axis 4
Priority Axis 1
Development
Implementation Implementation
Extension and
Priority Axis 3
of adequate
of integrated waste
of adequate
modernization
Reduction
infrastructure
management systems
management
of water and
of pollution
for natural risk
and rehabilitation
systems
wastewater
from urban
prevention
of historically
systems
heating systems for nature protection
contaminated sites
Approx. euro 2,776 million
(CF)
Approx. Euro 883 million
(ERDF)
Approx. Euro 229 million
(CF)
Approx. Euro 172 million Approx. Euro 270 million
(ERDF)
(CF)
Priority Axis 6
Technical Assistance
Approx. Euro 182 million (ERDF)
Water Sector
Specific objectives
• Provide adequate water and sewerage services, at accessible
tariffs;
• Provide adequate drinking water quality in all urban
agglomerations;
• Improvement in purity of watercourses;
• Improvement of the level of WWTP sludge management.
Indicative operations
• Construction/modernization of water sources intended for
the drinking water abstraction;
• Construction/rehabilitation of water treatment plants;
• Extension/rehabilitation of water and sewerage networks;
• Construction/upgrading of wastewater treatment plants;
• Construction/rehabilitation of sludge treatment facilities;
• Metering, laboratory equipment, leakage detection
equipment, etc.
3
Water sector – top priority
The most demanding environmental sector

19 bil. Euro – total estimated investment costs for
compliance with EU Directives

Approx. 8.6 Bil. euro needed by 2013, only 4 bil. available
within SOP framework

Optimisation of investment cost at macro level – a must

Regionalisation – part of the solution (economies of scale)
4
Water sector – strategic approach
Global objective
 Improved access to water services of good quality, at accessible
tariffs in all urban agglomerations by 2015.
Circumstances
 Need to comply with EU acquis within negotiated transition
periods;
 High level investment needs, but available EU funds – limited;
 Reliable water companies only in some large municipalities; not
the case in small and medium agglomerations;
 Water sector – generally not attractive for private business yet.
Strategy
 Development of regional projects - grouping of more
agglomerations in the same geographical area – aiming to optimize
the investment and operational costs
◦ IDA, ROC – pre-requisite for EU financing
 Building on previous experience (MUDP, ISPA, SAMTID) to
develop strong operational utilities
◦ Reliable ROC – key
5
Why regionalisation?
Reasons
 By 2004:
◦ Urban area - about 230 small and medium towns (of 276) had not
managed to attract financing from either EC, IFI or private sector;
◦ Rural area – limited investments for DW infrastructure, but most of the
villages lack centralised water systems.
 Major problems linked to water services in smaller agglomerations:
◦ Inappropriate maintenance and operating services;
◦ High UfW, mainly caused by leakages in the networks and deficient
payments collection;
◦ Lack of investments for rehab./extension of water infrastructure;
◦ Lack of experienced staff for promoting, management and
implementation of large scale investments;
◦ Inefficient management of the operating, maintenance and personell
costs;
◦ Unclear roles and responsibilities of institutions/authorities invloved in
management of public utilities;
◦ Inappropriate institutional framework.
6
Regionalization - objectives
◦ Access international financing in small and medium
agglomerations for rehabilitation/modernisation
of water infrastructure
◦ Promote self sustainable regional utilities by
introducing principles of cost recovery and
efficiency of public services
7
Regionalisation – actions
Regionalisation of water services - mainly
supported by pre-accession programmes,
including so far 36 of 42 counties:
◦ 1 Phare TA project - SAMTID for 11 counties
 Limited investments in DW infrastructure and reorganisation
of local water services
◦ 2 ISPA TA projects – FOPIP for other 25 counties
 Project preparation in parallel with institutional building
support for water companies (regionalisation)

Slightly different approach, but the same final
objective
8
Regionalisation – key elements

Municipalities included in the programme – IDA – a
collaborative structure; their role to monitor and
supervise:
◦ the implementation of the investments
◦ the financial and operational performance of the ROC (via
delegated service contract)

ROC – role to implement the investment measures
◦ A PIU set up in each ROC – main local counterpart in the
implementation of SOP measures

Delegation contract between IDA and ROC
9
Targets of Regionalization
•
•
•
•
•
•
•
•
•
•
•
•
Improved operation of existing regional systems
Improved lending capability
Investment planning
Optimization of available resources
Capability of meeting EU W & WW Directive
Improved management performance
Access to EU investments
Improved water quality
Improved water supply
Limitation of political involvement in the supply of water and
wastewater services
Regional Operator as the mechanism for provision of service to small
communities
Availability of more similar companies for benchmarking comparisons
10
Project pipeline in water sector

9 financing applications for major projects were submitted
to the European Commission, out of which 8 have been
already approved:
◦ Total amount of investment– approx. 1 billion Euro:









Cluj-Salaj – 197 millions Euro
Giurgiu – 72 millions Euro
Calarasi – 100 millions Euro
Turda – Campia Turzii – 80 million Euro
Tulcea – 100 million Euro
Sibiu –90 million Euro
Gorj –90 million Euro
Teleorman – cca 122 millions Euro
Olt –73 million Euro
Other applications (Brasov) – estimated to be submitted by the
end of 2008;
 Other 25 financing applications – to be finalized in 2009 – in
different stages of preparation

Project pipeline – water/waste water
sector
Business Opportunities

Participation at public tenders for
services and works

Bilateral agreements

PPP (in medium term, more business)

Co-financing
13
Thank you for your kind attention!
14