1. „Extension and modernization of water and wastewater infrastructure in Arad County”

2. SOP Environment – General Objective SOP Environment is currently developing the Third Priority of the 2007-2013 National Development Plan, «Environmental Protection and Improvement». The Global Objective of SOP Environment consists in the improvement of the population living standards and of the environmental standards, mainly pointing at the observance of the environmental acquis communautaire. SOP Environment aims at the reduction of the existing gap between the European Union and Romania, regarding the environmental standards, taking into account two long term objectives: To provide access to the basic public utilities. To improve the environmental quality.

3. SOP Environment – Specific Objectives SOP Environment specific objectives are :  To improve access to the water infrastructure, by providing water and wastewater services in most of the urban areas by 2015;  To enhance soil quality by improving waste management and reducing the number of the historically polluted areas in at least 30 counties by 2015;  To reduce the negative impact caused by the old municipal heating power plants, in the most polluted localities by 2015;  To protect and improve the biodiversity and and the natural patrimony by supporting the implementation of Nature 2000 Network ;  To reduce the natural disasters risk by implementing the preventive measures in most vulnerable areas by 2015.

4. SOP Environment – Priority Axes Priority Axis 1 – Extension and modernization of the water and wastewater infrastructure Priority Axis 2 – Development of the integrated waste management systems and the rehabilitation of the contaminated sites Priority Axis 3 – Reduction of pollution and mitigation of climate change by restructuring and renovating urban heating systems towards energy efficiency targets in the identified local environmental hotspots Priority Axis 4 -Implementation of Adequate Management Systems for Nature Protection Priority Axis 5 – Implementation of adequate infrastructure of natural risk prevention in most vulnerable areas Priority Axis 6 – Technical Assistance

5. SOP Environment – Financial Plan The SOP Environment total budget for the programming period 2007-2013 is of approximately 5,6 Billion Euro. The 4.5 Billion Euro Community funding is ensured from the Cohesion Fund (3,275 Billion Euro) and the European Regional Development Fund (1,236 Billion Euro). A national contribution of 1,098 Billion Euro is added to these. The EU Contribution to SOP Environment represents about 23,5% of the structural funds total assigned to Romania within the “Convergence” Objective and the Cohesion Fund for 2007-2013.

6. Priority Axis 1 – Extension and modernization of water and wastewater infrastructure Priority Axis 1 – funded from the Cohesion Fund Objectives:  Provision of water and sewerage services at affordable tariffs ;  Ensurance of proper drinking water quality in all human agglomerations;  Improvement of water bodies quality ;  Improving the management degree of the sludge coming from wastewaters treatment plants.

7. Priority Axis 1 – Extension and modernization of the water and wastewater infrastructure Priority Axis 1 – funded from the Cohesion Fund The maximum cofunding rate of the EU Funds: 85% EU contribution: 2,776 Billion Euro National contribution: 489,976 Million Euro Priority Axis 1 total: 3,266 Billion Euro

8. Directive 91/271/EEC regarding wastewaters – sewerage systems and wastewater treatment plants 2015 – 263 agglomerations with more that 10,000 p.e. 2018 – 2346 agglomerations between 2,000 and 10,000 p.e. Directive 98/83/EC regarding drinking water 2015 – conformity of the drinking water quality parameters Commitments taken through Chapter 22 of the Accession Treaty – water and wastewater sector

9. The financing contract signed between Compania de Apă Arad SA and the Ministry of Environment and Forests in May 2010; The main objective of the Financing Contract is to fund through SOP Environment Priority Axis 1, the Project “Extension and modernization of the water and wastewater infrastructure in Arad Conty ” The project includes priority investments in the water/wastewater sector from Arad County so that conformity with the commitments taken through the Accession Treaty is ensured. Project funded through SOP Environment in Arad County

10. The Project's Main Objective is to contribute to the fulfillment of the objectives set in the Priority Axis 1 within SOP Environment (2007- 2013) by developing specific investments in the water and wastewater field in Arad County. The Project's total value (VAT excluded): 577.492.535 Lei, out of which:  519.627.782 Lei, the eligible value according to SOP Environment (441.683.615 Lei from the Cohesion Fund, 67.551.613 Euro from the State Budget and 10.392.554 Euro - Local Budgets);  57.864.753 Lei, a different value than the eligible one according to SOP Environment. Extension and modernization of the water and wastewater infrastructure in Arad County

11. Expected results:  Conformity with the requirements of Directive 98/83/EC concerning water intended for human consumption for the localities included in the Phase 1 of investments in Arad County;  Rehabilitation of Ineu Water Treatment Plant in order to provide the consumers in the drinking water zonal system with water compliant with the provisions of the current national Laws;  The accomplishment of the investments necessary to the collection and the treatment of the wastewaters in order to comply with the provisions of Articles 4 and 5 from Directive 91/271/EC for all agglomerations with population larger than 5,000 p.e and for a certain number of smaller agglomerations ; Extension and modernization of the water and wastewater infrastructure in Arad County

12.  The implementation of a strategy at the level of the area served by the Contracting Authority and at the level of the entire county regarding sludge management in order to comply with Directive 86/278/EEC concerning safe disposal of the sludge resulted both from drinking water and wastewater treatment;  Reduction of the health risk associated to the lack of drinking water for the inhabitants in the localities identified as being primary and that do not benefit from other financing sources;  Improvement of the institutional aspects and of the County and Contracting Authority development capacity, as well as the latter's ability to prepare and implement an investment programme within Phase 2 of Investments (2014 – 2018), which will ensure compliance with the requirements provided by the Accession Treaty; Extension and modernization of the water and wastewater infrastructure in Arad County

13.  Ensure that the industrial pollution and its effect on the environment are kept under control according to current proposed plans;  Improvement of the local institutional capacity to implement projects at the level of Contracting Authority and IDA, by creating a functional management and operating system in the field of water and wastewater. Extension and modernization of the water and wastewater infrastructure in Arad County

14. Project period: May 2010 - November 2013. Project indicators:  154 km of extended/rehabilitated water provision networks  6,3 km of rehabilitated adduction pipes  2 rehabilitated catchment areas  7 extended/rehabilitated pumping stations  1 rehabilitated treatment plant  4 rehabilitated reservoirs  348 km of new sewerage networks  31 km of rehabilitated sewerage networks  28 km of sewerage collectors  36 new wastewater pumping stations  7 new/extended WWTPs Extension and modernization of the water and wastewater infrastructure in Arad County

15. Contracts within the Project: 2 Service Contracts:  SC1: Technical Assistance for the Project Management  SC2: Technical Assistance for the Construction Works Supervision 14 Works Contracts  WC1: Rehabilitation of Arad water provision networks and Fântânele water adduction  WC2: Arad and Fântânele sewerage network extension  WC3: Rehabilitation of sewerage network in Arad City and of the Lime Treatment Facility within Arad WWTP  WC4: Extension of Curtici water networks and rehabilitation and extension of the sewerage networks in the localities of Curtici, Macea and Sântana Extension and modernization of the water and wastewater infrastructure in Arad County

16. Contracts within the project:  WC5: New WWTPs for Curtici and Sântana and corresponding collector  WC6: Water catchment, Water Treatment Plant and water reservoires rehabilitation in Ineu  WC7: Rehabilitation and extension of water networks and sewerage in Ineu, Şiria and Pâncota  WC8: New WWTPs in Pâncota and Păuliş  WC9: Rehabilitation and extension of water and sewerage networks in Ghioroc, Cuvin, Miniş, Păuliş and Lipova  WC10: Extension of water and sewerage networks in Nadlac  WC11: New WWTP in Nadlac  WC12: Extension of water and sewerage networks in Pecica  WC13: WWTP in Pecica  WC14: WWTP in Şiria Extension and modernization of the water and wastewater infrastructure in Arad County

17. Current state:  The two Service Contracts (SC1 and SC2) are signed and under implementation ;  4 Works Contracts are signed: WC2, WC3, WC11 and WC14. Contracts No. 3, 11 and 14 are Yellow FIDIC type contracts and currently, the entrepreneur is drawing up the technical projects and the execution details for the WWTPs in Nădlac, Şiria and Arad and for the sewerage networks in Arad.  3 Works contracts are under evaluation and award procedure: 1, 4 and 5;  7 Works Contracts are in the designs completion phase: 6, 7, 8, 9, 10, 12 and 13. It is envisaged that the signature of these contracts should take place during the first semester of the year 2012. Extension and modernization of the water and wastewater infrastructure in Arad County