ISPA Environment Programme Implementation in

1
Ministry of Environment and Water Management

• ISPA Environment Programme Implementation in
• ROMANIA
• Bucharest, 07 October 2004

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Summary

• ISPA Environment Programme in Romania - Overview
• ISPA Environment Strategy
• ISPA Environment - Current Status and Future
  Aspects

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ISPA Environment Programme- General Information -

• Instrument for Structural Policies for
  pre-Accession,
• set up by EC Regulation no. 1267/1999 of 21st
  June 1999
• Non-reimbursable financial instrument to assist
  the candidate countries in implementation of the
  EU heavy Directives
• Sectors benefiting from ISPA funds
• Environmental protection
• Transportation
• Hybrid nature - transition from PHARE (candidate
  countries) to Cohesion Funds (member states)
• Complementary with other EU programmes

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ISPA Environment Programme- General Information -

• Beneficiary countries 10 accession candidate
  countries
• (Bulgaria, Czech Republic, Estonia, Hungary,
  Latvia, Lithuania, Poland, Romania, Slovakia,
  Slovenia)
• Duration 7 years, between 2000-2006
• ISPA Budget for Romania 208-270 MEuro annual
  (20-26 of total ISPA funding)
• Romania - second largest recipient

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Main EU Financial Instruments
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ISPA-Environment

• Copenhagen European Council Decision increase of
  financial pre-accession support
• 20 - 2004
• 30 - 2005
• 40 - 2006

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ISPA Goals

• Prepare applicant countries for accession
• Familiarize applicants with Union policies and
  procedures
• Meeting environmental acquis
• Extending and giving access to the transeuropean
  transport Network

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Funds Accession - basic conditions

• ISPA Strategy (for each sector - transportation
  and environment) elaborated and approved
• ISPA Applications (and supporting documents)
  according to EU Standards submitted to Bruxelles
• Set up adequate mechanisms for co-financing
  guarantee
• Set up and/or develop Institutional Framework for
  ISPA Programme Implementation as per Memorandum
  of Understanding Romania - EU

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ISPA Environment - Objectives

• Comply with EU principles and environmental
  policies
• Contribute to a gradual social-economical
  cohesion
• Comply with the provisions of the National Plan
  for the Adoption of the Acquis Communitaire
• Maintain, protect and improve environmental
  factors
• Protect human health
• High level of protection of sensitive
  environmental areas
• Enforce environmental pollution at source
• Apply polluter pays principle

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Environment Other Programs

• SAPARD water infrastructure in rural area
• SAMTID Water infrastructure in small and medium
  towns

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Institutions Involved in ISPA-Environment
EUROPEAN COMMISSION
MINISTRY OF EUROPEAN INTEGRATION (MEi) National
ISPA Coordinator
MINISTRY OF WATERS AND ENVIRONMENTAL PROTECTION
(MWEP) ISPA Environment Authority
MINISTRY OF PUBLIC FINANCE (MPF) National Fund
CENTRAL FINANCE AND CONTRACTING UNIT
(CFCU) Central Finance and Contracting Unit
LOCAL BENEFICIARIES
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Key Stages in ISPA Project Cycle

• Application for assistance
• Appraisal of project
• Management Committee
• Financing Memorandum
• Implementation - physical/financial
• Monitoring and control
• Ex-post evaluation

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Programming - ISPA Application
BENEFICIARY -Elaboration-
MoE -Endorsement-
FN -Endorsement-
MIE -Submitting-
CE (via DCE) -Approval-
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ISPA Environment Strategy

• Reference Documents
• Pre-accession Partenership
• National Plan for the Adoption of the Acquis
  Communitaire
• National Programs (strategies/action plans) for
  the environmental sector
• Sectoral Strategies of ISPA fields
• Elaborated in June 2000, updated in 2003

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Eligibility - General Criteria

• Significant impact on environment and peoples
  health
• Beneficiary population
• Urban public utilities sector
• Minimum value of a project 5 mil. Euro
• Availability of co-financing
• ISPA grant represents 50-75 of the eligible cost
  of the project, while difference is to be covered
  by local beneficiaries
• Project to be in one of the ISPA priority fields

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Priority fields in ISPA Environment

• Improvement of Water Infrastructure
• Water supply and sewerage networks
• Water and Wastewater treatment
• Waste management
• New controlled landfills (old, un-compliant ones
  to be gradually closed)
• Selective collection systems for domestic waste
• Waste recycling
• Air quality protection
• Reduction of pollutant emisions
• increase of energetic efficiency

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Water sector top priority

• Experience acquired in previous internationally
  financed projects
• Local, regional and river basins structures -
  well defined
• Legislation in place
• Focus on higher environmental problems instead of
  spreading away resources on small-scale projects

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Selection of Projects in Water Sector - Other
considerations -

• River basin approach according to the
  provisions of the WFD balanced investments on
  basins
• Regional development according to the National
  Plan for Development, taking into account a
  uniform distribution on regions of development

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Solid Waste Projects

• Waste Management Plan
• Regional focus
• Integrated waste management (minimization,
  recycling, disposal)
• Realistic about recycling targets
• Impact on size and design
• Composition of waste stream
• Include public awareness campaign

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Approved ISPA Measures

• 28 on-going projects in total value of 912.6
  MEuro
• (ISPA Grant 683.5 MEuro)
• 23 investment projects - different stages of
  implementation
• 19 projects in water and wastewater field
• 4 projects in waste field
• 5 projects of technical assistance
• -2 projects on TA to prepare investment projects
  in water management
• field for 6 cities
• 11 more projects submitted to Bruxelles, to be
  approved
• in total value of 483.2 MEuro (ISPA Grant
  348.2 MEuro)

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Co-financing of ISPA-Environment projects

• ISPA Grant - for approved projects - between
  68-75
• Intervention 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

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Project pipeline

• For 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 up, a number of large-scale
• projects are identified to be promoted in
  ISPA/CF

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Main EU Financial Instruments
Financing Prospects after Accession
MEURO
EU Budget for Romania
2007
2008
Structural Funds
1,399
1,972
Cohesion Funds
466
657
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ISPA Projects in Romania
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ISPA - Forthcoming Issues

• Absorption of increased funds to be allocated to
  Romania in 2004-2006 - preparation of new ISPA
  projects (300 mil. Euro)
• Further project pipeline to be prepared for CF
• Increase institutional capacity for project
  implementation
• Higher involvement of central and local
  authorities in public information and
  consultation (EIA Directive)
• Development of projects at basin level and
  regional level uniform distribution considered
• Balance projects in water waste fields
• Identify projects in air field

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Opportunities 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.

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Web 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

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• ISPA Environment in ROMANIA

Bucharest, 07 October 2004