SECTORAL OPERATIONAL PROGRAMME ENVIRONMENT 2007-2013

in ROMANIAWater & Waste Water Sector

MA SOP Environment

Florian BurnarProgramming Director

Dutch delegation –22.10.2012

GENERAL OBJECTIVE

General Objective – protection and improvement of living standards of the

population and of environmental standards aiming, first of all, the compliance with

the environmental community acquis.

General Strategy - to answer to the following 3 main strategic directions:

• Improving access to public utilities in Romania and supporting the economic

development conditions in regions

• Improving environmental protection as a mandatory condition for sustainable

development

• Strengthening institutional and governmental capacity as a key-priority,

aiming the development of an efficient management structure for environmental

services

General Objective of SOP ENV– improvement of living standards of the population and of environmental standards, aiming, mainly,

the compliance with the environmental communaitaire aquis

Specific Objective 1Improvement of quality

and access

to the water/wastewater infrastructure

Specific Objective 2Development of

sustainable waste management

systems

Specific Objective 3Reduction of the

negative environmentalimpact caused by

urban heating

plants

Specific Objective 4Protection and improvement

of biodiversity and natural heritage

Specific Objective 5Reduction of the incidence

of natural disasters affecting the population

Priority Axis 2Development of Integrated waste

management systemsand rehabilitation of

historically contaminated sites

Priority Axis 3Rehabilitation ofmunicipal district heating systems

Priority Axis 4Implementation of

adequate managementsystems for

nature protection

Priority Axis 5Development of

adequate infrastructurefor natural risks

prevention

0,38 billion Euro 0,19 billion Euro 0,31 billion Euro

Priority Axis 6Technical Assistance

0,14 billion Euro

Priority Axis 1Extension and modernizationof water andwastewater

infrastructure

3,14 Billion Euro 1,11 Billion Euro

SOP ENVIRONMENT- PRIORITY AXES

3,14

1,11

0,38

0,190,31

0,14

Breakdown of total financial contribution by priority axis (EUR billion)

SOP - key aspects

SOP Financial Allocation:

TOTAL: 5,3 billion Euro

- EU Contribution (CF): 4,5 billion Euro

- National Contribution: 0,8 billion Euro

Decentralized management: MA/ IBs/ Beneficiaries

Major Beneficiaries: regional operators / local authorities / intercommunity

development associations (IDAs)

Funding strategy: regional projects

Principles: solidarity, polluter pays, affordability

Contribution to meeting the commitments of the Accession Treaty

SOP ACHIEVEMENTS TO DATE – relevant

figures

� 352 projects approved, in total value of 7.262.024.530 Euro,

out of which 5.453.508.027 Euro eligible value

� Commitment rate of SOP funds – 102,73%

� Total payments made up to date: 816.760.802 Euro, out of

which:

� Pre-financing – 390.499.767 Euro

� Reimbursements – 426.261.036 Euro

� Payments made by the EC: 277.047.163 Euro

� Rate of absorbtion: 6,14%

Priority Axis 1 – Water & wastewater sector

ACHIEVEMENTS TO DATE – relevant figures

� 41 projects approved, in total value of 5.422.077.255 Euro, out

of which 4.033.706.913 Euro eligible value

� Commitment rate of SOP funds – 128,08%

� Total payments made up to date: 558.547.576 Euro, out of

which:

� Pre-financing – 279.609.287 Euro

� Reimbursements – 278.938.289 Euro

� Rate of absorbtion: 18,38%

Project Status - Axis SOP 1 - Water sector

ARAD

BIHOR

SATUMARE

SĂLAJ

MARAMUREŞ

CLUJ

BISTRIŢANĂSĂUD

SUCEAVA

BOTOŞANI

TIMIŞHUNEDOARA

CARAŞSEVERIN

ALBA

SIBIU

GORJ

MEHEDINŢI

DOLJ

VÂLCEA

ARGEŞ

BRAŞOV

OLT

TELEORMAN

GIURGIU

ILFOV

CĂLĂRAŞI

IALOMIŢĂ

DÂMBOVIŢA

PRAHOVA

BUZĂU

BRĂILATULCEA

CONSTANŢA

GALAŢIVRANCEA

COVASNA

MUREŞHARGHITA BACĂU

VASLUI

NEAMŢ

IAŞI

- 41 Approved Projects (1 non-major project)

- 3 Proiects Approval in 2012

Institutional requirements – water sector

3 pillars at the basis of the regionalization process…

� Intercommunity Development Association in each county (IDA) – joining together the administrative territorial units in specific area

� Regional Operating Company – running the water & wastewater infrastructure

� Service Delegation Contract – between IDA and the ROC

Regionalization process has been successfully implemented.

Ex: Constanta, Cluj regional operators expanded their area of service across more counties;

Perspectives for further mergers between regional operators.

Water & Wastewater projects – sludge strategy

�National strategy for sludge management has identified

regional options for sludge management, including potential uses and

costs. Sustainable sludge-disposal strategy is a priority!

�All the identified options are accepted practice in the EU (Agricultural Reuse; Forestry; Co-incineration/ Incineration; Land filling)

�Where feasible - use of treated sludge on agricultural land is the

least cost option and brings economic and environmental benefits

�Where agricultural use is not feasible – energy from waste options (mono- or co-incineration, cement kilns) can provide an alternative

�Key considerations in implementation will be cost and

affordability (operators and customers), timescale and ability to develop effective sludge use or disposal outlets

Sludge StrategyConclusions upon disposal alternatives

�Most regions, but not all counties, have sufficient agricultural land potentially suitable for sustainable use of sludge.

�Forestry and land reclamation could provide periodic opportunities to use large quantities of sludge.

�Cement factories are potentially significant outlets for combustion of sludge, but viability depends on transport distance, sludge moisture content and gate fee.

�Landfill disposal (provided that the solid sludge to be at least 35% and not more than 10% of the landfill storage capacity) will be required in the short-term to provide transition to sludge use options but will become increasing costly.

�Sludge incinerators may be necessary where use on land and in cement factories does not provide sufficient capacity.

Perspectives for 2012 and onwards...

� Approval of the projects remained in the portfolio (3 projects)

� Speeding up the spending of money allocated to the approved water projects

� Launching the preparation of the project pipeline for 2014-2020 in the water & waste water sector

� Starting the preparatory activities to elaborate the strategic documents for the 2014-2020 programming period (water & wastewater a major priority for Romania).

Project pipeline for 2014-2020

water & waste water sector

� Using the same approach

Beneficiaries-> Regional Operators

Regional Projects

Financing priority investments needed to comply with obligations under the Treaty of Accession

� New approach

Increased ownership of the project – beneficiaries “hire” the consultants to prepare the projects

Estimated investment: 80 mil. Euro / project

MoEF - coordinating role: design guides, approve the lists of priority investment, approval of funding applications etc.

Investments which promote and contribute to climate change mitigation and adaptation measures, and components for efficient water and sewerage systems

Considerations for 2014-2020 period

water & waste water sector

� Continue & consolidate the regionalization process

� Tariff adjustment: sine qua non for ensuring sustainability of investments

� Awareness IDA role in the design of regional projects and in monitoring delegation contracts

� Public awareness: connecting to services - at the time of investment

� Strengthening of institutional capacity

Conclusions

� SOP Environment is an operational program with experienced beneficiaries which implemented successfully similar projects in the past: MUDP, SAMTID, ISPA, PHARE;

� The last 2 years experienced a major increase in terms of commitment of funds in the water sector.

� Year 2013 is decisive for contracting all components included in projects funded by SOP Environment. Market response is essential!

� Efforts to achieve full compliance with the European Directives should continue in the programming period 2014 –2020!

MINISTRY OF ENVIRONMENT AND FORESTS

MANAGING AUTHORITY FOR SOP ENVIRONMENT 2007 - 2013

30-32 Calea Serban Voda, sector 4, Bucharest, Romania

Tel: +4021/335 35 65; Fax: +4021/316 07 78

www.posmediu.ro

www.mmediu.ro