ISPA Environment Programme ISPA Environment Programme Implementation inImplementation in

ROMANIAROMANIA

Bucharest,Bucharest, 07 October 200407 October 2004

Ministry of Environment and Water Management

07.10.20042

SummarySummary

ISPA Environment Programme in Romania - OverviewISPA Environment Programme in Romania - Overview

ISPA Environment StrategyISPA Environment Strategy

ISPA Environment - Current Status and Future AspectsISPA Environment - Current Status and Future Aspects

07.10.20043

ISPA Environment ProgrammeISPA Environment Programme- General Information -- General Information -

IInstrument for nstrument for SStructural tructural PPolicies for pre-olicies for pre-AAccession, ccession,

set up by EC Regulationset up by EC Regulation no. 1267/1999 of 21 no. 1267/1999 of 21st st June 1999June 1999

Non-reimbursable financial instrument to Non-reimbursable financial instrument to assist the candidate assist the candidate countries in implementation of the EU “heavy” Directivescountries in implementation of the EU “heavy” Directives

Sectors benefiting from ISPA funds: Sectors benefiting from ISPA funds: – Environmental protectionEnvironmental protection– Transportation Transportation

Hybrid nature - transition from PHARE (candidate countries) to Hybrid nature - transition from PHARE (candidate countries) to Cohesion Funds (member states) Cohesion Funds (member states)

Complementary with other EU programmesComplementary with other EU programmes

07.10.20044

Beneficiary countries: 10 accession candidate Beneficiary countries: 10 accession candidate countries countries

(Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia)Romania, Slovakia, Slovenia)

Duration: 7 years, between 2000-2006Duration: 7 years, between 2000-2006ISPA Budget for Romania: 208-270 MEuro ISPA Budget for Romania: 208-270 MEuro

annualannual (20-26% of total ISPA funding)(20-26% of total ISPA funding)

Romania - second largest recipientRomania - second largest recipient

ISPA Environment ProgrammeISPA Environment Programme- General Information -- General Information -

07.10.20045

Main EU Financial InstrumentsMain EU Financial Instruments

10%7%

3% 4%5%

33%

24%

4%2%

8%

0%

5%

10%

15%

20%

25%

30%

35%

Bu

lgar

ia

Ceh

ia

Est

onia

Let

onia

Lit

uan

ia

Pol

onia

Rom

ânia

Slo

vaci

a

Slo

ven

ia

Un

gari

a

10%7%

3% 4%5%

33%

24%

4%2%

8%

0%

5%

10%

15%

20%

25%

30%

35%

Bu

lgar

ia

Ceh

ia

Est

onia

Let

onia

Lit

uan

ia

Pol

onia

Rom

ânia

Slo

vaci

a

Slo

ven

ia

Un

gari

a

07.10.20046

ISPA-EnvironmentISPA-Environment

Copenhagen European Council Decision: increase of

financial pre-accession support

20% - 2004

30% - 2005

40% - 2006

07.10.20047

ISPA GoalsISPA Goals

Prepare applicant countries for accessionPrepare applicant countries for accession

Familiarize applicants with Union policies and Familiarize applicants with Union policies and

procedures procedures

Meeting environmental acquisMeeting environmental acquis

Extending and giving access to the transeuropean Extending and giving access to the transeuropean

transport Networktransport Network

07.10.20048

Funds Accession - basic conditionsFunds Accession - basic conditions

ISPA Strategy (for each sector - transportation and ISPA Strategy (for each sector - transportation and

environment) elaborated and approved environment) elaborated and approved

ISPA Applications (and supporting documents) ISPA Applications (and supporting documents)

according to EU Standards according to EU Standards submitted to Bruxellessubmitted to Bruxelles

Set up adequate mechanisms for co-financing guaranteeSet up adequate mechanisms for co-financing guarantee

Set up and/or develop Institutional Framework for ISPA Set up and/or develop Institutional Framework for ISPA

Programme Implementation as per Memorandum of Programme Implementation as per Memorandum of

Understanding Romania - EUUnderstanding Romania - EU

07.10.20049

ISPA Environment - ObjectivesISPA Environment - Objectives

Comply with EU principles and environmental policiesComply with EU principles and environmental policies Contribute to a gradual social-economical cohesionContribute to a gradual social-economical cohesion Comply with the provisions of the National Plan for the Comply with the provisions of the National Plan for the

Adoption of the Acquis CommunitaireAdoption of the Acquis Communitaire Maintain, protect and improve environmental factorsMaintain, protect and improve environmental factors Protect human healthProtect human health High level of protection of sensitive environmental areasHigh level of protection of sensitive environmental areas Enforce environmental pollution at sourceEnforce environmental pollution at source Apply “polluter pays” principle Apply “polluter pays” principle

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Environment – Other ProgramsEnvironment – Other Programs

SAPARD – water infrastructure in rural area

SAMTID – Water infrastructure in small and medium

towns

07.10.200411

Institutions Involved in ISPA-EnvironmentInstitutions Involved in ISPA-Environment

LOCAL BENEFICIARIESLOCAL BENEFICIARIES

CENTRAL FINANCE AND CONTRACTING UNIT (CFCU)CENTRAL FINANCE AND CONTRACTING UNIT (CFCU)Central Finance and Contracting UnitCentral Finance and Contracting Unit

MINISTRY OF PUBLIC FINANCE (MPF)MINISTRY OF PUBLIC FINANCE (MPF)National Fund National Fund

MINISTRY OF WATERS AND ENVIRONMENTAL PROTECTION (MWEP)MINISTRY OF WATERS AND ENVIRONMENTAL PROTECTION (MWEP) ISPA Environment AuthorityISPA Environment Authority

MINISTRY OF EUROPEAN INTEGRATION (MEi)MINISTRY OF EUROPEAN INTEGRATION (MEi)National ISPA CoordinatorNational ISPA Coordinator

EUROPEANEUROPEAN COMMISSIONCOMMISSION

07.10.200412

Key Stages in ISPA Project CycleKey Stages in ISPA Project Cycle

Application for assistanceApplication for assistance

Appraisal of project Appraisal of project

Management CommitteeManagement Committee Financing MemorandumFinancing Memorandum

Implementation - physical/financialImplementation - physical/financial

Monitoring and controlMonitoring and control

Ex-post evaluationEx-post evaluation

07.10.200413

Programming - Programming - ISPA ISPA ApplicationApplication

BENEFICIARY-Elaboration-

MoE-Endorsement-

FN-Endorsement-

MIE-Submitting-

CE (via DCE)-Approval-

07.10.200414

ISPA Environment StrategyISPA Environment Strategy

Reference Documents Reference Documents – Pre-accession Partenership Pre-accession Partenership – National Plan for the Adoption of the Acquis CommunitaireNational Plan for the Adoption of the Acquis Communitaire– National Programs (strategies/action plans) for the National Programs (strategies/action plans) for the

environmental sectorenvironmental sector– Sectoral Strategies of ISPA fieldsSectoral Strategies of ISPA fields

Elaborated in June 2000, updated in 2003Elaborated in June 2000, updated in 2003

07.10.200415

Eligibility - General CriteriaEligibility - General Criteria

Significant impact on environment and people’s Significant impact on environment and people’s health health

Beneficiary population Beneficiary population Urban public utilities sectorUrban public utilities sector Minimum value of a projectMinimum value of a project – 5 mil. Euro – 5 mil. Euro Availability of co-financingAvailability of co-financing

– ISPA grant represents 50-75% of the eligible cost of the ISPA grant represents 50-75% of the eligible cost of the project, while difference is to be covered by local beneficiariesproject, while difference is to be covered by local beneficiaries

Project to be in one of the ISPA priority fieldsProject to be in one of the ISPA priority fields

07.10.200416

Priority fields in ISPA EnvironmentPriority fields in ISPA Environment

Improvement of Water InfrastructureImprovement of Water Infrastructure– Water supply and sewerage networks– Water and Wastewater treatment

Waste managementWaste management– New controlled landfills (old, un-compliant ones to be

gradually closed)– Selective collection systems for domestic waste– Waste recycling

Air quality protectionAir quality protection– Reduction of pollutant emisions– increase of energetic efficiency

07.10.200417

Water sector – top priorityWater sector – top priority

ExperienceExperience acquiredacquired in in previous internationally previous internationally

financed financed proprojjectectss

Local, regional and river basins structures - well Local, regional and river basins structures - well

defineddefined

Legislation in placeLegislation in place

Focus on higher environmental problems instead of Focus on higher environmental problems instead of

spreading away resources on small-scale projects spreading away resources on small-scale projects

07.10.200418

Selection of Projects in Water Sector Selection of Projects in Water Sector - Other considerations -- Other considerations -

River basin approach – according to the provisions of River basin approach – according to the provisions of

the WFD; balanced investments on basinsthe WFD; balanced investments on basins

Regional development according to the National Plan Regional development according to the National Plan

for Development, taking into account a uniform for Development, taking into account a uniform

distribution on regions of developmentdistribution on regions of development

07.10.200419

Solid Waste ProjectsSolid Waste Projects Waste Management PlanWaste Management Plan

Regional focusRegional focus

Integrated waste management (minimization, recycling, Integrated waste management (minimization, recycling,

disposal)disposal)

Realistic about recycling targetsRealistic about recycling targets

Impact on size and designImpact on size and design

Composition of waste streamComposition of waste stream

Include public awareness campaignInclude public awareness campaign

07.10.200420

Approved ISPA MeasuresApproved ISPA Measures28 on-going projects28 on-going projects in total value ofin total value of 912.6 MEuro912.6 MEuro

((ISPA Grant – 683.5 MEuroISPA Grant – 683.5 MEuro) ) 23 investment projects23 investment projects - different stages of implementation - different stages of implementation

19 projects in water and wastewater field19 projects in water and wastewater field

4 projects in waste field4 projects in waste field

5 projects of technical assistance 5 projects of technical assistance

-2 projects on TA to prepare investment projects in water management-2 projects on TA to prepare investment projects in water management

field for 6 citiesfield for 6 cities

11 more projects submitted to Bruxelles, to be approved:11 more projects submitted to Bruxelles, to be approved:

in total value ofin total value of 483.2 MEuro483.2 MEuro ((ISPA Grant – 348.2 MEuroISPA Grant – 348.2 MEuro))

07.10.200421

Co-financing of ISPA-Environment projectsCo-financing of ISPA-Environment projects

ISPA Grant - for approved projects - between 68-75%– Intervention rate determined on the basis of the financial analysisIntervention rate determined on the basis of the financial analysis

Co-financing is ensured by final (local) beneficiaries through:– loan from IFI (EIB or EBRD) for most of the projects

– local budget

– state budget

– donors

Co-financing is required (how and who) before submission of ISPA Application

07.10.200422

Project pipelineProject pipeline

For 2004-2006,2004-2006, 15 ISPA Applications to be prepared

in the framework of TA (78% ISPA Grant + 22% MoE)– 10 projects in water/wastewater sector– 5 projects in solid waste management

8 projects under preparation from other sources

For 2007 and up2007 and up, a number of large-scale

projects are identified to be promoted in ISPA/CF

07.10.200423

Main EU Financial InstrumentsMain EU Financial Instruments

Financing Prospects after AccessionFinancing Prospects after Accession

EU Budget for

Romania

Structural

Funds Cohesion

Funds

2007 2008

1,399 1,972

466 657

MEUROMEURO

ISPA Projects in RomaniaISPA Projects in Romania

ON GOING PROJECTS PROJECTS SUBMITTED (TO BE APPROVED) Water Water

Waste Waste

ConstantaConstanta

TulceaTulceaBrãilaBrãila

Galati GalatiFocsaniFocsani

BrasovBrasov

BotosaniBotosani

IasiIasi

PascaniPascaniBaiaBaia Mare Mare *

ClujCluj NapocaNapoca

OradeaOradea

AradArad

Tim isoaraTim isoara

DevaDeva*

ValeaValea Jiului-Jiului-DãnutoniDãnutoni

BucurestiBucuresti

Tg.MuresTg.Mures

SatuSatu Mare Mare

RR ââ m nicum nicuValceaValcea TargovisteTargoviste

DrobetaDrobeta Tr. Tr.

SeverinSeverin

TeleormanTeleorman

CraiovaCraiova

SibiuSibiu

BuBuzãuzãu

P.Neam tP.Neam t

BacãuBacãu

Pite sti

Bistrita

Plo ie sti

07.10.200425

ISPA - Forthcoming Issues ISPA - Forthcoming Issues Absorption of increased funds to be allocated to Romania in Absorption of increased funds to be allocated to Romania in

2004-2006 - preparation of new ISPA projects (300 mil. Euro)2004-2006 - preparation of new ISPA projects (300 mil. Euro)

Further project pipeline to be prepared for CFFurther project pipeline to be prepared for CF

Increase institutional capacity for project implementationIncrease institutional capacity for project implementation

Higher involvement of central and local authorities in public Higher involvement of central and local authorities in public

information and consultation (EIA Directive) information and consultation (EIA Directive)

Development of projects at basin level and regional level; Development of projects at basin level and regional level;

uniform distribution considereduniform distribution considered

Balance projects in water – waste fieldsBalance projects in water – waste fields

Identify projects in air fieldIdentify projects in air field

07.10.200426

Opportunities of cooperation within ISPA ProgrammeOpportunities of cooperation within ISPA Programme

Participation at international tenders for services and works

under ISPA

Set up common programmes for:

financial assistance for ISPA Applications

technical assistance for institutions involved in ISPA/CF

programme.

07.10.200427

Web sitesWeb sites www.europa.eu.int

ISPA Application Form ISPA Regulation ISPA Manual Practical Guide for PHARE, ISPA and SAPARD Information regarding the approved projects and tenders

www.infoeuropa.ro Information regarding EU Financial Instruments in Romania

www.mie.ro Accession Partenership National Plan for the Adoption of the Acquis Communitaire

www.mappm.ro National Strategy for Environmental Protection National Action Plan for Environmental Protection ISPA Strategy

ISPA Environment in ROMANIAISPA Environment in ROMANIA

Bucharest,Bucharest, 07 October 200407 October 2004