EU WATER INFRASTRUCTURE PROJECTS
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1 EU WATER INFRASTRUCTURE PROJECTS Zagreb, May 22, Jelena Ambrenac, dipl.ing.građ. Sector for EU Co-financed projects HRVATSKE VODE 1
2 Summary of Characteristics Hydrographically, the territory is divided into: the Danube River basin district, and the Adriatic River basin district. Administrative structure: 21 units of regional self-government (555 units of local self-government, 126 cities and 429 municipalities), a total of 6,756 settlements with 4,284,889 inhabitants (2011 Census). Water supply connection rate: 86% (2015) Wastewater services connection rate: 50% (2015) Drinking water quality: 95% of samples meet criteria Delivered water 300 million m3 per year Average water price for households - around 15 kn/m3 (or 2 euro/m3) 2
3 Water sector responsibilities are shared among: Croatian Parliament with the National Water Council Government of Croatia - Ministry of Environment and Energy with Water Management Directorate CROATIAN PARLIAMENT NATIONAL WATER COUNCIL Hrvatske vode as the national agency for water management GOVERNMENT MINISTRIES ADMINISTRATIVE STATE ORGANIZATIONS MINISTRY OF ENVIRONMENT AND ENERGY HRVATSKE VODE NATIONAL AGENCIES (owned by the Government, public services) 3
4 HRVATSKE VODE Government agency Non profit Non - budgetary fund More than 900 employees, of whom more than 65% with college or university qualifications. Carries out more than 4/5 of its activities in cooperation with the EU on a number of projects. MISSION: manage waters in the Republic of Croatia in order to: protect human lives, health and assets from adverse effects of water, and to ensure permanent availability of water by optimizing economic and environmental benefits under the principles of sustainable development 4
5 Public water service providers Water Act defines water services as public water supply and public wastewater collection and treatment. Public water supply and wastewater collection and treatment are under the authority of local selfgovernment units (towns/municipalities). Water supply and wastewater treatment activities are performed by utility companies (a total of around 156 providers of water services). 5
6 Strategic objectives defined by Water Framework Directive (2000/60/EZ) Urban Waste Water Treatment Directive (91/271/EEZ) Drinking Water Directive (98/83/EZ) Water Management Strategy ( Treaty and negotiations between Croatia and the European Commission under Chapter 27 Environment (2010), IMPLEMENTATION PLAN FOR WATER UTILITY DIRECTIVES ( Long-term program of construction of water and wastewater infrastructure ( River Basin Management Plan ( 6
7 EU accession treaty & implementation deadlines & transitional period for WATER UTILITY DIRECTIVES In 2011 all Chapters closed (negotiation ended) 12 YEARS (7+5) Requested transitional periods limited in terms time and content 2018 & 2021(3) Croatia has requested: a transitional period until the end of 2018 for the implementation of provisions concerning microbiological parameters, and as a MS, Croatia intends to request a transitional period of additional 3 years for compliance with certain chemical parameters, in total until the year potentially 3 years Wastewater collection and treatment, treatment of wastewater according to proscribed standards and deadlines (2018, 2020 & 2023) for different scale of agglomerations and sensitivity (around 300 agglomeration above PE). Establishment/definition of sensitive areas were also part of the negotiation process. WATER SUPPLY WASTE WATER AND TREATMENT 7
8 The complexity of HRV transition PREDPRISTUPNI FONDOVI IPA CF STRUKTURNI FONDOVI CF IPA CF n CF n+3 8
9 Institutional Framework for Absorbing EU Funds Instrument for Pre-Accession Assistance IPA ( ) - Hrvatske vode has been accredited as an Implementing Body of Level 2 and a Contracting Authority. Structural Funds (since Croatia s accession to the EU) - Hrvatske vode is defined as an Intermediate Body level 2 (IB2) The functions of IB2 include, among other: - taking part in the selection of projects; - drafting co-financing agreements for the selected projects; - checking whether expenditure was really incurred related to the project and whether it complies with European and national rules throughout the project implementation and duration period; - checking project expenditure (on-the-spot checks); - checking potential irregularities in project implementation and reporting thereon to other responsible bodies; - monitoring of and reporting on project progress to other bodies. 9
10 Certifying body Ministry of Finance EU Managing authority Ministry of Environment and Energy Ministry of Regional Development and EU Funds Intermediate body 1 Intermediate body 2 Ministry of Environment and Energy (Water Directorate) Hrvatske vode Financing Decision Beneficiary Public water utility company/ HV /State Directorate for protection and rescue Contractor
11 Project overview for OPE
12 OP Environment results Draft FINAL Report sent to EC in March EU allocation: 199,094 mil. EUR - 104,71% of allocation (audits/corrections) 160 projects approved, 149 projects implemented: 13 infrastructure projects 4 completed 84 infrastructure projects of small interventions (small retrospective projects) 52 projects for preparation of study and technical documentation 1 non - functional infrastructure project (Knin) Indicators achieved: Water supply network Sewer network pop. Capacity WWTP pop ES
13 OPE completed projects ČAKOVEC SISAK DRNIŠ SLAVONSKI BROD
14 OPE phased projects VIROVITICA RVS OSIJEK POREČ NOVA GRADIŠKA ŽUPANJA OSIJEK VUKOVAR VODICE 8 projects 1. phase completed 2. phase on going through OP Competitiveness and Cohesion
15 Operational Programme Competitiveness and Cohesion OPKK TEMATSKI CILJ TEMATSKI CILJ PRIORITET 6ii1 PRIORITE T 6ii2 5b NATIONAL PROTECTION AND RESCUE DIRECTORATE 5b HRVATSKE VODE 15
16 Status and compliance Year Status Number of agglomerations Completed 6 On going 25 Under the preparation (different stages) Ready for CfP 3 13 total 47 Completed 6 On going 8 Under the preparation (different stages) Ready for CfP 0 12 total 26 Completed 19 On going 8 Under the preparation (different stages) Preparation not started total 208 SUBTOTAL
17 UPOV UPOV UPOV Broj Aglomeracija UPOV Planirani Rok Broj Aglomeracija stupanj Planirani Rok stupanj stupanj stupanj 1 Zagreb Zagreb Split-Solin P Split-Solin P Osijek Osijek Rijeka Rijeka P P Varaždin Varaždin Zaprešić Zaprešić Karlov Karlov ac-duga ac-duga Resa Resa Šibenik Šibenik Pula-Centar Pula-Centar P P Kaštela-Trogir Kaštela-Trogir P P Čakov Čakov ec ec Zadar Zadar Slav Slav onski onski Brod Brod Bjelov Bjelov ar ar Kopriv Kopriv nica nica Rov Rov inj inj P P Dubrov Dubrov nik nik P P Velika Velika Gorica Gorica Sisak Sisak Vinkov Vinkov ci ci Belišće Belišće Poreč-Jug P P Vukov Vukov ar ar Opatija-Lov ran ran Samobor Umag Umag P P Požega Djakov Djakov o o Poreč-Sjev er er Zabok Zabok Virov Virov itica itica Rugv Rugv ica ica Imotski Imotski Daruv Daruv ar Nov Nov a Gradiška a Gradiška Sinj Sinj P P Lanterna Lanterna Kutina Kutina Sav Sav udrija udrija P P Županja Županja Iv anić Iv anić Grad Grad Vrbov Vrbov ec ec Našice Našice Križev Križev ci ci Donja Donja Dubrav Dubrav a a Beli Beli Manastir Manastir Lipik-Pakrac Lipik-Pakrac Ukupno Ukupno 47 do do Broj Aglomeracija UPOV UPOV Planirani stupanj stupanj Rok 1 Vir Pula-Sjev er P Biograd P Nin Makarska P Malinska-Njiv ice Mali Losinj Vrsar Jelsa-Vrboska Nov igrad Istarski Petrinja Metkov ić Velešev ec Labin Slatina Bibinje-Sukošan Knin Pirov ac-tisno Jastrebarsko Iv anec Pleternica Nov ska Glav ničica Mursko Središće Krapina Vela Luka Ukupno 26 do on going completed prepared in preparation Broj Aglomeracija UPOV UPOV Planirani stupanj stupanj Rok 1 Vodice Crikv enica Medulin Nov alja Krk Rab Omiš P Malostonski zaljev Podstrana Kostrena Župa Dubrov ačka Baška P Betina-Murter Punat P Rabac Lopar P Nov i Vinodolski Baška Voda Hv ar P Pag P Selce Ogulin Mandre Primošten P Cres Orebić P Pitomača Tučepi Senj Supetar Supetarska Draga Ilok Korčula Ludbreg Zlatar Gradac Cav tat P Sv eti Iv an Zelina Gospić Brela Ploče Bedekov čina Rogoznica P Nov i Marof Banjole P Ukupno 208 do 2023.
18 Projects in preparation FINAL STAGE OF PREPARATION Ime EU Projekta Ukupna vrijednost projekta (s PDV-om) HRK Ukupno prihvatljivi troškovi HRK Ukupno EU HRK 1 Karlovac-Duga Resa , , ,00 2 Zaprešić , , ,00 3 Sinj , , ,00 4 Trilj-Otok-Dicmo , , ,00 5 Kutina , , ,00 6 Ivanec , UKUPNO , , ,00
19 Present status and results Allocation : ,00 EUR for component 6 NUMBER OF PROJECTS Total eligible costs (kn) CF (kn) % of allocation CALL FOR PROPOSALS , ,21 101,59 PROJECTS APPROVED , ,53 65,47 TOTAL APPROVED (ESTIMATE) , ,21 101,59 READY FOR CfP , ,00 13,99 SUBTOTAL APPROVED TILL THE END OF 2018 (ESTIMATE) , ,21 115,58 19
20 Problems in preparation Long term preparation of projects (8-10 years) Environmental issues zero tolerance (resolving the sensitive issue of sludge disposal, implementation of methodology of combined approach (for discharge when basic measures fail to achieve water protection objectives), assessment of impact on water bodies and Natura 2000 sites, through proper implementation of requirements related to environmental protection measures..) Permits - repeated issuance Harmonization of project application and tender documentation in line with guidelines, national and EU legislation, by-laws... Financial sustanibility (final beneficiary and others) Quality of prepared project (indicators, environmental docs, project elements, gantogram etc.) Legal property issues
21 Problems in the procurement procedure "Legal uncertainty" (Final beneficiaries hesitate to initiate public procurement procedures) Fear of the financial corrections in the face of disregarding the rules of EU funds Complexity of the tender docs Competence of the Evaluation commetee for the procurement procedure Numerous appeals on each mistake (even language..) It requires constant and systematic education and learning about the experiences of others
22 Problems in implementation Delays of public-law bodies in the procedures of issuing special conditions and permits No proper record of existing installations (cadaster lines) Poor quality of project documentation (the projects do not correspond to the real situation on the ground, it happens that the waterway/sewage route goes through the center of the building). Incompatibility of project documentation with bidding documents Poor quality of bidding documentation (billboards VS technical specifications) Contractor's failure to commence work at an appropriate intensity on time. Lack of qualified labor force on the labor market (outflow of labor on the EU market underpaying workers, salary delays...) Frequent blockade/insolvency of Contractors occurred (slowed down and jeopardized the implementation of the projects)
23 Conclusion We are behind in the implementation Possible penalization of the RH (depends of different factors: reporting period, undertaken activities, % of non compliance, GDP, communication with EC etc.) The obligation to implement Directives remains How to ensure national funds for development of water infrastructure projects Solutions: Start a dialogue with EC Possible financing after the transition period ends Speeding up the implementation of the projects (tender docs,procurement procedures,...) Large number of procurement procedures are expected Constant education and improvement of knowledge Awareness and work together
24 Thank you 24
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