1. Progress with Priority Environmental Infrastructure Investment Projects in Croatia PEIP Regional Meeting - 26 th November 2007 Brussels MINISTRY OF ENVIRONMENTAL PROTECTION, PHYSICAL PLANNING AND CONSTRUCTION

2. 2 ISPA 2005-2006 The National ISPA Strategy for Environment (2005)  the basis for Croatia’s investment planning for the use of 30M€ under ISPA program  identifies two priority subsectors: waste management water management ISPA projects: 1.Karlovac Water and Waste Water Programme 1.Karlovac Water and Waste Water Programme (total value is 36.0 M€: 22.5 M€ (66%) ISPA funding and 13.5 M€ (34%) national sources 2.Bikarac Regional Waste Management Centre, Stage I 2.Bikarac Regional Waste Management Centre, Stage I (total value 8.8 M€: 6 M€ (68%) ISPA funding and 2.8 M€ (32%) national sources) 3.IPA Project Pipeline Preparation (Environment)

3. 3 Relevant strategies since 2006 The Strategic Development Framework 2006 – 2013 (Adopted by the Government of the Republic of Croatia in August 2006)  provides an integral vision and an overview of priorities for the economic development of the Republic of Croatia  the preservation of the environment and balanced regional development are considered to be key elements of sustainable economic growth The Strategic Coherence Framework 2007 – 2013 (approved by the European Commission in July 2007)  forms the basis for the programming of IPA components III and IV

4. 4 Environmental Operational Programme (EPOP) 2007-2009  Under IPA Component III Regional Development  adopted by the Croatian Government in September, submitted to the EC  indicative list of 26 projects in the National ISPA Strategy has been up-dated  priority investments for the water and waste management sectors, which will contribute to meeting the obligations of the heavy-investment directives within the EU environmental acquis

5. 5 IPA 2007-2009 (EPOP) New Organizational Structure Titles of the bodies within the Operating Structure Specific bodies within the Operating Structure Body Responsible for EPOP MEPPPC Body Responsible for Priority /Measure Priority Axis 1 MEPPPC Priority Axis 2 MAFWM Priority Axis 3 MEPPPC Implementing Body EPEEF CW CFCA The position and level of responsibility within the Operating Structure :

6. 6 EPOP Objectives and priorities National SCF environmental objective EPOP Objective Priority Axis Meeting priorities/axes through investments to: Protect and improve natural and living environment and environmental potential as a key element for future development Improve access to, and the efficient delivery of, environmental services and facilities in the waste and water sub- sectors Developing waste management infrastructure for establishing an integrated waste management system in Croatia Establishment of new waste management centres at county/ regional levels Remediation of sites highly polluted by waste (hot spots) Protecting Croatia’s water resources through improved water supplies & integrated wastewater management systems Establishment modern water supply systems and networks Construction of wastewater treatment plants for domestic and industrial wastewaters and upgrading of the sewerage network

7. 7 EPOP priority axes Financial allocation and co-financing rate 53,499,750 €- total allocation for the EPOP: 53,499,750 € - total allocation for the EPOP:  16,999,500 € in 2007  18,000,000 € in 2008  18,500,250 € in 2009 IPA co-financing rate is 75% for all three priority axes! PRIORITY AXIS 1 - PRIORITY AXIS 1 - Developing waste management infrastructure for establishing an integrated waste management system in Croatia total 26,349,750 €  8,349,750 € in 2007, 8,874,750 € in 2008 and 9,125,250 € in 2009 (total 26,349,750 €).

8. 8 EPOP priority axes Financial allocation and co-financing rate PRIORITY AXIS 2 – PRIORITY AXIS 2 – Protecting Croatia’s water resources through improved water supply and integrated waste water management systems total 26,450,250 €  8,400,000 € in 2007, 8,900,250 € in 2008 and 9,150,000 € in 2009 (total 26,450,250 €)  national sources of financing are State Budget, Municipality Budget, County Budget, Croatian Waters and IFI (EIB has expressed its interest take part in financing of projects in Town Osijek and Slavonski Brod) PRIORITY AXIS 3 - PRIORITY AXIS 3 - Technical assistance (management and capacity building)  total 699.750 €

9. 9 NATIONAL WASTE MANAGEMENT PLAN 2007 - 2015  EUR 350 to 400 million  EUR 350 to 400 million are estimated investments, necessary for the construction of WMC (21 or less) and the establishment of waste management systems  Public costs (Landfills, infrastructure and TS) will be financed up to 80% from EU funds and EPEEF, and 20% by local authorities  The costs of MBT plants will be financed by the private sector, within PPP

10. 10 ISPA and IPA projects (next 6 months) ISPA:  procurement procedure: RWMC Bikarac (5 of 6 contracts), ISPA TA Environment (waste sector)IPA:  Awarding IPA Accreditation by June 2008 Waste: three projects for IPA cofinancing: 1.IPA Application for RWMC MARIŠĆINA sent to the EC on 17 th October 2007 2.IPA Application for RWMC Kaštijun - sending to the EC in November 2007 3.IPA Application for RWMC Split-Dalmatia County is in preparation Water: two projects for IPA cofinancing

11. Thank you for your attention! Vedrana Hasanbašić Head of Section Directorate for Strategic and Integration Processes in Environmetal Protection MEPPPC vedrana.hasanbasic@mzopu.hr