EU Financing in Environmental Sector during April 2008

SOP Environment Evolution Elaboration of SOP – started in 2005; Partnership at national, regional and local level – during the whole process of SOP elaboration; Approval of SOP Environment – beginning of July 2007; First reunion of the Monitoring Committee – ; Approval of categories of eligible expenditures for all Priority Axes – Common Order of the MESD and MEF; Common Order Approval of Framework Document for Implementation - Common Order of the MESD and MEF; Elaboration of Guidelines for Applicants – Priority Axes 1 (water), 2 (waste) and 4 (Nature protection); Launching of the first call for proposals within Priority Axis 4 (protectia naturii) – October 2007; Launching of the pre-selection process for Priority Axis 3 (district heating) – November 2007

SOP Environment – Institutional framework Managing Authority – Ministry of Environment and Sustainable Development 8 Intermediate Bodies – at regional level, subordinated to the MESD Beneficiaries – main role in the management and implementation of projects approved within SOP ENvironment Other authorities – ACIS, AA, MC, etc Allocated amount: bill. Euro, out of which bill. Euro –Community contribution and bill. Euro – national contribution

SOP ENVIRONMENT – PRIORITY AXES Global objective of SOP ENV– împrovement of living and environmental standards, focusing, mainly, on compliance with environmental acquis communautaire Specific objective 1 Improvement of quality and access to water and wastewater infrastructure Specific objective 2 Development of sustainable waste management system Specific objective 3 Reduction of negative environmental impact caused by urban heating plants Priority Axis 1 Extension and modernization of water and wastewater systems Priority Axis 2 Development of integrated waste management systems and rehabilitation of historically contaminated sites Priority Axis 4 Implementation of adequate management systems for nature protection Priority Axis 5 Implementation of adequate infrastructure for natural risk prevention Specific objective 4 Protection and improvement of biodiversity and natural heritages Specific objective 5 Reduction of the incidence of natural disasters affecting the population Priority Axis 3 Reduction of pollution from urban heating systems Approx. Euro 2,776 million (CF) Approx. Euro 883 million (ERDF) Approx. Euro 229 million (CF) Approx. Euro 172 million (ERDF) Approx. Euro 270 million (CF) Priority Axis 6 Technical Assistance Approx. Euro 182 million (ERDF)

Distribution of total financial contribution per Priority Axes (million Euro)

Water/waste water (Priority Axis I) Indicative activities  Construction/modernization of water sources intended for drinking water abstraction ;  Construction/rehabilitation of water treatment plants ;  Extension/rehabilitation of water and sewerage networks ;  Construction/upgrading of wastewater treatment plants ;  Construction/rehabilitation of sludge treatment facilities ;  Metering, laboratory equipment, leakage detection equipment, etc;  Technical assistance for project preparation, management and publicity, etc. Beneficiaries – water companies – Regional operators

Water sector – top priority The most demanding environmental sector 19 bil. Euro – total estimated investment costs for compliance with EU Directives App. 8.6 Bil. euro needed by 2013, only 4 bil. Available within SOP framework Optimisation of investment cost at macro level – a must Regionalisation – part of the solution (economies of scale)

Water sector – strategic approach Global objective Improved access to water services of good quality, at accessible tariffs in all urban agglomerations by 2015 Circumstances Need to Comply with EU acquis within negotiated transition periods High level investment needs, but available EU funds – limited Reliable water companies only in some large municipalities; not the case in small and medium agglomerations Water sector – not attractive for private business yet Strategy Development of regional projects - grouping of more agglomerations in the same geographical area – aiming to optimize the investment and operational costs AoM, ROC – pre-requisite for EU financing Building on previous experience (MUDP, ISPA, SAMTID) Reliable ROC – key

Regionalisation - actions Regionalisation of water services - mainly driven by pre-accession programmes 1 Phare TA project - SAMTID for 11 counties 2 ISPA TA projects – FOPIP for other 25 counties Project preparation in parallel with institutional building support for water companies (regionalisation) Slightly different approach, but the same final objective

Waste management (Priority Axis II) Indicative activities  Acquisition and installation of selective collection systems ;  Construction of sorting, recycling and composting facilities ;  Acquisition of waste transport vehicles ;  Construction of municipal waste disposal facilities;  Recovery of gas from landfills ;  Construction of adequate facilities for municipal hazardous waste ;  Closure of non-compliant landfills ;  Land restoration and cleaning  Technical assistance for project preparation, management and publicity, etc. Beneficiaries - municipalities, County Councils and associations of municipalities

Urban heating plants (Priority Axis III) Indicative activities  Rehabilitation of boilers and turbines ;  Introduction of BATs for SO 2, NO x and dust reduction ;  Introduction of improved metering ;  Rehabilitation of non-compliant slag and ash landfills ;  Rehabilitation of heat distribution networks ;  Technical assistance for project preparation, management and publicity, etc. Beneficiaries - local public authorities in selected municipalities

Nature protection (Priority Axis IV) Indicative activities  Assistance in the preparation of management plans ;  Institutional capacity building within protected areas ;  Construction and improvement of infrastructure of protected areas;  Monitoring systems for the Natura 2000 sites and protected areas ;  Preparation of information and publicity and awareness raising materials ;  Acquisition of high biodiversity value land. Beneficiaries - administrators of protected areas, National Agency for Protected Areas and Biodiversity Conservation, EPAs

Floods and coastal erosion (Priority Axis V) Indicative activities  Infrastructure for flood prevention and reduction of the destructive consequences of floods ;  Development of hazard and flood risk prevention maps ;  Rehabilitation of Black Sea shore affected by erosion ;  Technical assistance for project preparation, management and publicity, etc Beneficiary - National Administration “Romanian Waters”

15 applications for major projects in water and waste management sectors (ISPA Measure no. 2003/RO/P/PA 013; 25 applications for major projects in water and waste management sectors (ISPA Measure no. 2005/RO/P/PA 001) – to be prepared in 2008; 10 applications in water sector (BIRD loan) – to be prepared during : Project Pipeline

6 applications for major projects in water/waste water sector – already submitted to the EC for approval Total amount of investment: Cluj-Salaj – 197 M Euro Giurgiu – 72 M Euro Calarasi – 100 M Euro Turda – Campia Turzii – 80 M Euro Tulcea – approx. 100 M Euro Sibiu – approx. 90 M Euro Finalization of the investment – estimated for 2013 Other projects (Olt, Gorj, Teleorman ) – estimated to be submitted in April-May Project pipeline (2)

13 applications for waste management, district heating and nature protection (PHARE CES 2005 project) – to be prepared in 2008; Waste management sector – beneficiaries: Arad, Dolj, Mures, Neamt, Sibiu; District heating sector – beneficiaries: Timisoara, Iasi, Bacau Preparation of other projects in the following sectors: contaminated sites, district heating, nature protection and coastal erosion (PHARE CES 2006 project) – in 2009 Project pipeline (3)

Project pipeline – water/waste water sector

Project pipeline – waste management sector

Support for the beneficiaries Elaboration of Applicant Guidelines for Project Evaluation and Selection for Priority Axis 1 (water), 2 (waste management) and 4 (nature protection) ; Technical Assistance for preparation of approx. 60 major projects in water and waste management sectors, whose total amount of investment is of about 3.5 bill. Euro:

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