1. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Urban Wastewater Treatment Directive MOLDOVA – EU Convergence Implementation Plan Presented by Claire Dupont, Key Legal Expert 24 September 2008

2. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. EU Convergence Convergence: –Legal Harmonisation –Analysis of existing situation Assess current compliance Institutional needs –Implementation Planning Identify measures to achieve compliance Investment requirements Institutional strengthening –Practical Implementation

3. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Urban Wastewater Treatment Directive 91/271/EEC Applicable to: –“agglomerations” > 2,000 p.e. –Industrial wastewater > 4,000 p.e. Main requirements: –Prior Regulation of discharges –Wastewater collection systems –Wastewater treatment systems All subject to secondary treatment Additional treatment for specific cases: –Nutrient sensitive areas – Nitrogen + Phosphorous Removal –Meeting the objectives set under other Directives “Investment Heavy” Directive Still being implemented in new Member States

4. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Legal Harmonisation Focus on the main elements and key standards –Control system for discharge into the environment and into waste water collection system –Setting of wastewater discharge standards –Setting of envrionmental surface water quality standards –Application of a ‘combined approach’ in the permitting system Provision for gradual implementation: need to prioritise (e.g. permitting system reform would take more time) and take measures for gradual tightening of standards Other related legal provisions: control of use of sewage sludge and legislation to control other adverse effects Legislation to address issues arising from the water sector in general

5. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Analysis of Existing Situation

6. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Situation - wastewater Discharge untreated wastewater Deterioration in 1990s No significant improvement 2000 - 2008 What are the causes of the problem? –Poor condition of infrastructure –Insufficient maintenance of infrastructure –Water service companies Low management and implementation capacity Insufficient financial resources and support

7. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Situation - regulation  Legislation –Updated regulations required  Permitting –Operational, but would benefit from streamlining and modernisation  Inspection –Improvements in resources and capacity needed  Monitoring –Improvements in equipment and coordination

8. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Priority Actions Water company efficiency –Merger to form publicly owned regional companies –Improved capacity (maintenance, design …) Financial flows –Tariff reform Move towards full cost recovery (art. 9 WFD) Must remain affordable especially for low income households –Increased Government Budget Support –Increased donor support Institutional Strengthening

9. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Regional Water Companies

10. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Investment needs – water sector 2005 Programme: 350 million Euros 2007 Strategy: 2,250 million Euros Other estimates: 1 – 2 billion Euros Total Government Budget: –2007: Approximately 1.25 million Euros Long Term Programme required: –Up to 25 years in duration –River Basin Management Planning basis –Priority packages (6 year) based on RBMPs

11. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Illustration – Increasing finance

12. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Investment Programmes 2009 -2015 –Initial “transitional period” – existing data –Minimum: 70 million Euro –OECD Financing Strategy – priority packages River Basin Management Planning –1 st RBMP: 01/2016 – 12/2021 –Every six years … until … 12/2033 (3) –Priorities selected on agreed health and environmental criteria –Wastewater discharge permits to include “improvement conditions” –Water company investment programme in line with permit requirements Alternative: review of priority packages under earlier RBMP

13. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Legal Framework Sector Reform –Regional Water Companies –Independent Economic Regulator – Tariff setting Regulatory Controls –Priority Wastewater discharge regulation Environmental quality standards regulation –Future Wastewater sludge disposal Sensitive areas Permitting framework (integrated permitting)

14. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Permitting - Standards –Basic EU emission standards –Stricter standards applied where necessary to protect health and environment –Permit review (6 year) - no deterioration in current performance –Permits include time limited “improvement conditions” in accordance with RBMP priorities –Permit is the legal “driving force” for improvement –Increased compliance monitoring of discharges Regional water companies – regular monitoring Regulatory authorities – audit monitoring

15. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Institutional Roles #1 Ministry of Ecology and Natural Resources –In cooperation with the Ministry of Health –Legislation –Policy –Monitoring implementation of policy (inc. RBMPs) State Environmental Inspectorate  Permitting, Inspection, Enforcement Apele Moldovei –River Basin Management Planning –Policy –Support to water companies until full reorganisation Monitoring of the Environment –State Hydro-meteorological Service

16. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Institutional Roles #2 Water Companies –Large, independent, efficient –Local authority board of directors –Separated from the regulators Economic Regulator –Forces increased efficiency and value for money –Objective (not political) Tariff Setting Ministry of Health –Water Supply Services Inspectorate (Centre for Preventive Medicine) –Cooperation in legislation, policy and strategy development –Consultation and joint approval of priority investment programmes in the water sector Environment Fund/Apele Moldovei? –manages state and donor contributions

17. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Key Institutional Strengthening Ministry of Ecology and Natural Resources –Water Management Unit (4 persons) State Environmental Inspectorate –Permitting Unit –Inspection and discharge monitoring Apele Moldovei –River Basin Management Planning Units –Information management State Hydro-meteorological Service –Laboratory equipment

18. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Initial estimates of additional institutional costs Personnel costs – 3 year: Additional personnel including facility costs (MENR, SEI, ER, EF) (Not inc. AM or SHS) Equipment Costs – 3 year annualised Total budget burden –95,000 Euros per annum in 2011 –< 0.0075% of Government Budget in 2011 –< 1.5% of Government spending on water sector in 2011 Annual200920102011 Staff Costs € 19,416 € 50,496 € 66,600 Equipment € 13,393 € 26,786 Total € 32,809 € 77,282 € 93,386

19. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. Next Steps Detailed Implementation Plan Proposal Consultation, Discussion, Comments Revision of Proposal Final Agreement Practical Implementation –Legislative process –Budget allocations –Action!

20. This project is funded by the European Union ENVIRONMENTAL COLLABORATION FOR THE BLACK SEA GEORGIA, MOLDOVA, RUSSIA and UKRAINE Euroconsult This project is implemented by Consortium of Euroconsult MottMacDonald and Milieu Ltd. For more information: www.ecbsea.org