Transcript REGIONALISATION_IN_HOUSE
Sectoral Operational Programme Environment
- SOP Environment and other programmes for UWWTD implementation -
April 21 st 2008 Florian BURNAR Ministry of Environment and Water Management, Romania Managing Authority for SOP Environment
Water sector - Key actors in Romania
•
Ministry of Environment – authority responsible for water sector policy
•
Ministry of Administration and Interior – authority responsible for public services policy
•
National Authority for Community Services Regulation
•
Local authorities
•
Operators
Transition periods for water Directives
•
Waste water (Directive 91/271/EEC) – sewage systems and waste water treatment plants
•
2013/2015 – 263 agglomerations of more than 10,000 p.e.
•
2018 – 2346 agglomerations of between 2,000 and 10,000 p.e.
•
Sensitive area – advanced wastewater treatment
•
Drinking water (Directive 98/83/EC)
•
2015 – compliance with quality parameters for drinking water
Cost assessment - environmental sectors
19 4 5 1 Water 2 0 8 6 4 14 12 10 2 0 18 16 Waste Air Other sectors € B illio n
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 approx. 4 billion Euro available within SOP framework Optimisation of investment cost at macro level – a must Regionalisation – part of the solution (economies of scale)
Constraints
•
Compliance with the commitments in the AT – sine qua-non requirement
•
Limited financial resources
high investment need;
•
Limited period of time (2007-2013) Conclusion:
•
Need for investment prioritization;
Available EU funds in Romania
EU programmes – the “cheapest” financing source for investments in environmental infrastructure PRE–ACCESSION PHARE, ISPA, SAPARD, LIFE –approx. 180 mil. Euro/ year POST–ACCESSION SCF – approx. 500 - 600 million Euro/year expected for environmental projects
ISPA programme overview
42 Financing Memoranda signed for environmental sector
, out of which: 29 projects for modernization of water/waste water infrastructure; 7 projects for solid waste management; 6 TA projects.
Total amount of approved ISPA projects – approx. Euro 1.4
billion:
1 billion Euro ISPA grant; 400 million Euro – national co-financing However,
only major municipalities (population over 100,000) – access to EU funds
2007-2013 Financial Perspective
National Development Plan
National Strategic Reference Framework
7 OPs:
Human Resources Development
Development of Administrative Capacity
Environment
Transport
Competitiveness
Regional Operational Programme
Technical Assistance
Sectoral Operational Programme Environment 2007 - 2013
Correlation between NSRF, NDP and SOP Environment NSRF NDP
Priority 2 – Development of infrastructure at European standards Priority Axis 3 – Protection and improvement of environmental quality
Global Objective –
SOP ENVIRONMENT Improvement of living standards and environment, focusing in particular on meeting the environmental acquis
LONG-TERM OBJECTIVES
Specific Objective 1
Improve the access
to water infrastructure, by providing water supply and wastewater services in most urban areas by 2015
Specific Objective 2
Improvement of soil quality, by improving waste management and reduction in the number of old ecological burdens in min. 30 counties by 2015
Specific Objective 3
Reduction of negative environmental impact
caused by old municipal thermal plants in most polluted localities by 2015
Specific Objective 4
Protection and improvement of biodiversity and natural assets
by supporting NATURA 2000 implementation
Specific Objective 5
Reduction of the incidence of natural disasters
for the population, by implementing preventive measures in most vulnerable areas by 2015
Priority Axis 1
Extension and modernization of water and waste water infrastructure
Priority Axis 2
Development of integrated waste management systems and rehabilitation of old ecological burdens
Priority Axis 3
Improvement of municipal heating systems in selected priority areas
Priority Axis 4
Development of management systems for protected areas
Priority Axis 5
Implementation of adequate infrastructure of natural risk prevention in most vulnerable areas
Distribution of total financial contribution per Priority Axes Community funding + national counterpart - (in million Euro)
458 214 329 173 1,167 3,266
Total allocation SOP ENV: Euro 5.610 million
Water/w aste w ater Urban heating Floods and coastal erosion Waste management and historically polluted sites Biodiversity Technical Assistance
SOP Environment – Strategy
• • • • •
Priority Axis 1 – Water projects
Priority Axis 2 – Waste
projects
regional W/WW
regional IWM Priority Axis 3 heating) – District heating
selected localities (highly polluted from district Priority Axis 4 - Nature protection
implementation of Natura 2000 network Priority Axis 5 - Flood prevention
selected areas – most vulnerable to floods
SOP Water Sector Strategy
• • •
Strong strategic approach to maximize cost-efficiency with the water sector acquis in the limited timeframe.
key to meet compliance
•
Main elements: Group communities in clearly defined geographical areas and develop jointly long term investment programmes for water sector development – improve infrastructure and LOS while maintaining affordable level of tariffs and ensuring sustainability of investments Building capacity programmes - provide for clear accountabilities of key stakeholders, while keeping the appropriate expertise to each level of competence (MA, IB, municipalities, operators) Ensure strong coordination of domestic funds with EU funds for water sector investments, both at strategic and operational level Deliver efficiency gains by:
–
Using economies of scale and saving resources
– –
Optimising investments and operational costs at regional level Optimising project selection by reducing costs for applicants and by reducing duplication of appraisal;
–
minimising transactions costs to ensure value for money in terms of administrative overheads
Priority Axis 1 - Extension and modernization of water and wastewater systems 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
Problems addressed by SOP Environment – Priority Axis 1
• • •
Infrastructure
Only 52% of population have access to centralized water/wastewater services Almost 80% of wastewater discharged in natural receivers untreated or insufficiently treated Most of the existing water infrastructure under-investments – in poor status due to long term
• •
Operational aspects
Excessive fragmentation of water sector systems and services Inappropriate maintenance and operating services in most small and medium agglomerations
• • •
Funding
Lack of capacity to attract substantial funding for investment needs in majority of small and medium agglomerations Private sector – not interested to invest in short term Limited capacity to implement large scale projects; only 35 large municipalities managed to attract funds to implement major investment programmes
Building Capacity Programme in the Water Sector
Romanian authorities designed programmes to support LA to:
–
Increase capacity of LA to implement internationally financed programmes
–
Promote self sustainable regional utilities by introducing principles of cost recovery and efficiency of services
–
Strengthen the capacity of LA to monitor effectively their public services Regionalisation via ROC and AoM (AoM/IDA) – key element in order to comply with the acquis and to ensure basic living standards (specific objective of prirority 1 under SOP)
•
No viable alternative identified
Pre-accession Programmes for Regionalisation 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 support for regionalisation External loan – for the rest of 6 counties
•
Project preparation in parallel with institutional support for regionalisation
•
Slightly different approach, but the same final objective
Capacity Building Programme in the Water Sector
• •
Objective - Support the LA to implement an integrated multi annual capital investment programme in order to improve the standards of municipal water and wastewater services by creating efficient, financially viable regional service providers able to plan and implement long term investments, in line with National practices.
Development Plan (NDP) and EU policies and Access to EU funds – an incentive to move from a large number of weak services providers to a limited number of big and strong operator, capable to provide services at affordable levels of tariffs, but ensure full cost recovery and loan reimbursement for local authorities
Targets of Regionalization
• • • • • • • • •
Improved operation of existing regional systems Investment planning Optimization of available resources Capability of meeting EU W & WW Directive requirements Improved management performance Improved lending capability; Access to EU investments 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 comparisons of more similar companies for benchmarking Overall target – to provide that 2600 localities of more than 2000 p.e.
meet 2018 targets
Regionalisation – Main Elements of Institutional Organisation
• • •
AoM/IDA – role to monitor and supervise the implementation of the investments, the financial and operational performance of the ROC ROC – role to implement the investment plan and to perform services in line with delegation contract and AoM/IDA’s decisions Contract of delegation of services between AoM/IDA-ROC (the core of the operational and institutional organisation of regionalised water and wastewater management)
–
AoM/IDA has decision-making and control powers (acc. to Law 241/2006 reflected in the delegation contract) on:
•
Water Sector Strategy
• • • •
Long term investment plan Public assets management ROC Utility performance Tariff policy
–
ROC has maximum of security in the performance of its contractual obligations in order to build its capacity of self-financing investments included in the long term development plan
– –
Introduces the regional mission of the operator Introduces the role of the AoM/IDA as a contracting party
Regionalization map
Project pipeline – water sector
Regional Long term investment Plans (Master Plans)
Intended to investments.
help in prioritization of CF prepared at the level of each county of Romania; represents a tool for identification investment needs in the long run (30 years); of Provides for a clear picture of agglomerations acc. to UWWTD;
Specific information and plans summary milestones
Drinking Water connection Current situation Gaps or problems identified Plans and investment needed Stage 1 (interim) by 2015* (Cohesion Fund) Stage 2 (by 2018) Other stages
Brief description, quantification of major elements (aggregated data – no of systems, coverage per urban, rural, etc.) Brief description
Water treatment Swage Collecting system Treatment level Treatment performance Receiving areas Sewage sludge management
25
Definition of agglomerations in Master Plan
• •
Identification
of all agglomerations at county level (maps and data base)
“Clustering”
of Agglomerations based on techno-economic assessment
•
Options Analysis
(central/de-central) • Discussion with
stakeholders
• Preparation of Long-term investment plan
26
Feasibility study level
• Detailed
option analysis
• Preparation of
final/detailed maps
and data base on
selected
agglomerations
27
Scenarios “Definitions of UWWTD”
28
“Clustering” of Agglomeration
WWTP Agglomeration Border Line Cluster Line Interconnection 29
Example for Agglomerations – Detailed Definition of Boundaries Example Roman
page 30
Boundary of Agglomeration
31
Compliance Dates – RO Accession Treaty
• • • •
Water Supply above 10.000 inhabit. => 31.12.
2015 Wastewater collection above 10.000 P.E. => 2013 Wastewater treatment above 10.000 P.E. => 2015 Below 10.000 P.E. Intermediate targets => (% on national level).
• • •
Latest compliance dates: for Water Supply : 2015! for Wastewater : 2018!
32
Proposed CF investments
• Balanced proposal between
water – wastewater
(slightly more for wastewater) focused on Accession Treaty (AT) obligations: – significant contribution to AT obligations – beneficiary population (major agglomerations) • Balanced proposal between
rehabilitation and extension
networks for water and sewerage networks
Priority for CF investments
• –
Investments in order of priority: WWTPs
in major agglomerations (sludge treatment facilities included) –
Wastewater network
(extensions first, rehabilitation where critically important) in major agglomerations –
DWTPs
(new or rehabilitation) where justified by insufficient quality and/or quantity) –
Distribution networks
(extensions and/or rehabilitation where critically important) –
Stormwater
appropriate management facilities, where
Selection of priority investments
Two step approach:
Step 1
: Mandatory criteria – Compliance date – Association agreement
Step 2
: Ranking – Size of agglomeration (highest weight) – Health improvement – Environmental improvement – Efficiency improvement 35
Priority Investment Measures
Phasing
of Investment measures
Approval
of LA of MPs and investment list is mandatory!!
Maps
of agglomerations should be included in the
Urbanism Plan
(by LA)
36
Types and Purpose of Indicators
Type of Indicator Purpose
Project Performance indicators Programming indicators Evaluation of Projects and investment components
Compare
situation
before and after
project implementation => Impact
Benchmarking
compare indicators of different agglomerations compare with international standards values
Check technical plausibility
and feasibility of proposed measures Compare
unit costs
Monitor
achievement of (SOP) targets
Aggregation
of project
results and costs
at county and national level 37
Programming Indicators (PRI)
• – Selected indicators can be used for
comparison with SOP targets
for programming purposes at national level (MESD)
How much
did we already (or will we)
achieve
on county and national level at a (after implementation of projects)?
– What are the costs (estimated and real costs) to reach interim targets (i.e. Until 2015) – – How
far are we away
How much will it
cost
from defined final targets?
to reach final targets?
38
Plausibility Check
• • •
Check plausibility of data using indicators Compare indicators of each agglomeration and benchmark selected ones (i.e. Unit cost indicators) If major deviation, more detailed evaluation is necessary (explain reasons for difference)
• •
Compare data before / after project There has to be a significant impact (change)
i.e. If substantial part of the sewer network is rehabilitated (high investment costs) =>reduction of infiltration water should also be significant 39
Additional investments to the SOP in the water sector
• • •
National Rural Development Programme
co-financed by the EU in the period 2007 –2013 and co-ordinated by the Ministry of Agriculture and Rural Development (MARD), will include investments in the water infrastructure in rural areas
Protocol signed between MESD and MARD for ensuring complementarity of investments I n the MP framework and avoiding double financing!
Governmental Programmes for development water and environmental infrastructure Foreign loans
or
various forms of PPP
are also solutions considered in some of the urban agglomerations.
SOP Planning 2008 - 2010
• • • •
Mid 2008
– finalizing the process of submission of the first 10 projects to the EC for approval; 4 projects already approved!
2008
: another 30 applications for major projects under preparation: part of them to be submitted to the EC in 2008, part of them in 2009;
2009
: all major projects submitted to the EC;
2010
: starting of preparation of project pipeline for next programming period.
SOP expected results - 2013
Population benefiting of new/improved water/wastewater services: approx 10 million p.e.; Total compliance with the water and wastewater directives in localities more than 10.000 inhabitants but also part of the biggest rural localities.
Thank you for attention!
www.mmediu.ro