Strategic Moves - Regional Environmental Center for Central and ...

Strategic Moves - Regional Environmental Center for Central and ... Strategic Moves - Regional Environmental Center for Central and ...

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TABLE 19: EC projects (allocations in million EUR) according to sector and country (2007–2009) preparation and implementation of infrastructure investments in the social sector, as well as in the fields of transport and environment. Investments are intended to help municipalities and public and private companies running utilities to identify and prepare priority infrastructure projects for financing through IFI loans, EC grants, and/or the government budget, and to provide financial support to the upgrading of infrastructure by providing grant co-financing using loans extended by IFIs (IPA 2008d). A total of EUR 3.393 million will be spent on the establishment of the Facility for Project Preparation and Reinforcement of Administrative Capacity in Croatia. It will provide flexible technical support (twinning, twinning light and technical assistance) to Croatian authorities; address specific needs identified for the country; and help to prepare a pipeline of projects for further funding with a view to reinforcing the institutional and administrative capacity for the management of IPA funds (IPA 2007a). Lessons learned after the first phase of IPA implementation A key challenge for the countries in relation to the implementation of the IPA is their capacity to absorb funds. This is dependent on national capacities to set up the necessary institutions; to prepare the required project documentation, including feasibility studies; and to provide co-financing. IPA funds for investment in environmental infrastructure require substantial co-financing of approximately 30 percent of total project costs. To address the co-financing requirements, countries C H A P T E R 7 F I N A N C I N G E N V I R O N M E N TA L I N F R A S T R U C T U R E I N V E S T M E N T S ENERGY TRANSPORT WATER AND MUNICIPAL SOCIAL ALL ENVIRONMENT INFRA- STRUCTURE SECTORS SECTORS Albania 0 (0) 4 (15) 3 (27) 0 (0) 3 (23) 10 (64) Bosnia and Herzegovina 2 (4) 2 (2) 3 (7) 1 (1) 4 (8) 12 (21) Croatia 2 (2) 7 (206) 28 (48) 0 (0) 0 (0) 37 (257) Kosovo (as defined under UNSCR 1244) 2 (13) 2 (9) 1 (18) 1 (14) 4 (43) 10 (96) FYR Macedonia 1 (2) 3 (30) 4 (17) 1 (7) 6 (9) 15 (65) Montenegro 1 (2) 1 (6) 2 (5) 0 (0) 2 (3) 6 (15) Serbia 1 (6) 7 (27) 7 (33) 2 (67) 12 (76) 29 (209) Western Balkans 9 (28) 26 (295) 48 (154) 5 (89) 31 (160) 119 (726) Source: WCIBP database S T R AT E G I C M O V E S 161

162 C H A P T E R 7 F I N A N C I N G E N V I R O N M E N TA L I N F R A S T R U C T U R E I N V E S T M E N T S BOX 19: Example from Croatia — IPA EPOP 2007–2009 as a tool to streamline IPA III regional development funds In Croatia, IPA funds are implemented through three multi-annual operational programmes (OPs). In the environmental sector, the Environmental Protection Operational Programme (EPOP 2007–2009) was devised in order to define priorities and implementation means and mechanisms. The expected impacts of the EPOP are the achievement of compliance with the EU acquis and improved institutional capacity in the management of future structural funds (IPA EPOP Croatia 2007). One of the specific objectives of the EPOP was to support investment in the environmental infrastructure sector. The current EPOP under IPA 2007–2009 relates to the waste management and water quality protection sectors. The EPOP defines three priority axes and two lists of priority projects for the water and waste sectors. The priority axes are: 1) the development of waste management infrastructure for establishing an integrated waste management system in Croatia (EC contribution: EUR 26.3 million); 2) the protection of Croatia’s water resources through improved water supply and wastewater integrated management systems (EC contribution: EUR 26.5 million); and 3) technical assistance (EC contribution: EUR 699,750). The 14 water sector projects on the EPOP list are related to water supply and/or water treatment facilities (including sewerage networks where relevant). Of the 12 waste sector projects, 11 are related to the construction of regional waste management centres, and one to the remediation and closure of an abandoned hazardous waste landfill. During consultations between the REC and the Croatian Ministry of Environmental Protection, Physical Planning and Construction it was decided to harmonise the PEIP lists with the EPOP list. As a result, the PEIP lists contain all the projects in the EPOP list, plus an additional three projects related to the remediation of hazardous waste sites. The project applications approved for IPA funding in the current programming period are the water supply, sewerage and wastewater treatment plant in Slavonski Brod; the regional waste management centre for Zadar county; the Kastijun county waste management centre for Istria; and the Mariscina regional waste management centre. S T R AT E G I C M O V E S need to allocate funds from the national budget and/or loans, private sector participation or other financial mechanisms such as carbon financing. The IPA can be seen as a learning exercise that will prepare future member states for the challenges and opportunities of the EU Structural and Cohesion Funds. As the first result of IPA operation, a set of national and regional programmes, as well as horizontal (multi-beneficiary) programmes, covering the environmental sector were elaborated under IPA Component I. Projects receiving support from IPA 2007 and 2008 are approved and under implementation, and approval of the next set of IPA projects is currently taking place. However, due to the financial crisis, IPA funds for 2009 are slightly smaller (Presentation: Fiedler, 2008a). Current funding continuously helps countries to strengthen national capacities for environmental management; and to upgrade municipal environmental infrastructure, including the establishment of integrated waste management systems and the modernisation of water supply and wastewater treatment facilities. Several regional programmes for environment were established under IPA 2007, 2008 and 2009 to improve integrated water management in the region, to facilitate approximation to the EU acquis in the field of water, and to create a sustainable pipeline of projects dealing with water protection. Current practice shows that the majority of countries were able to prepare lists of environmental investment projects eligible for financing. However, many of the

162<br />

C H A P T E R 7<br />

F I N A N C I N G E N V I R O N M E N TA L I N F R A S T R U C T U R E I N V E S T M E N T S<br />

BOX 19: Example from Croatia — IPA EPOP 2007–2009 as a tool to streamline IPA III regional development funds<br />

In Croatia, IPA funds are implemented through three multi-annual operational programmes (OPs). In the environmental<br />

sector, the <strong>Environmental</strong> Protection Operational Programme (EPOP 2007–2009) was devised in<br />

order to define priorities <strong>and</strong> implementation means <strong>and</strong> mechanisms. The expected impacts of the EPOP are<br />

the achievement of compliance with the EU acquis <strong>and</strong> improved institutional capacity in the management of<br />

future structural funds (IPA EPOP Croatia 2007).<br />

One of the specific objectives of the EPOP was to support investment in the environmental infrastructure sector.<br />

The current EPOP under IPA 2007–2009 relates to the waste management <strong>and</strong> water quality protection sectors. The<br />

EPOP defines three priority axes <strong>and</strong> two lists of priority projects <strong>for</strong> the water <strong>and</strong> waste sectors.<br />

The priority axes are: 1) the development of waste management infrastructure <strong>for</strong> establishing an integrated waste management<br />

system in Croatia (EC contribution: EUR 26.3 million); 2) the protection of Croatia’s water resources through<br />

improved water supply <strong>and</strong> wastewater integrated management systems (EC contribution: EUR 26.5 million); <strong>and</strong> 3)<br />

technical assistance (EC contribution: EUR 699,750).<br />

The 14 water sector projects on the EPOP list are related to water supply <strong>and</strong>/or water treatment facilities (including<br />

sewerage networks where relevant). Of the 12 waste sector projects, 11 are related to the construction of regional<br />

waste management centres, <strong>and</strong> one to the remediation <strong>and</strong> closure of an ab<strong>and</strong>oned hazardous waste l<strong>and</strong>fill.<br />

During consultations between the REC <strong>and</strong> the Croatian Ministry of <strong>Environmental</strong> Protection, Physical Planning <strong>and</strong><br />

Construction it was decided to harmonise the PEIP lists with the EPOP list. As a result, the PEIP lists contain all the projects<br />

in the EPOP list, plus an additional three projects related to the remediation of hazardous waste sites.<br />

The project applications approved <strong>for</strong> IPA funding in the current programming period are the water supply, sewerage<br />

<strong>and</strong> wastewater treatment plant in Slavonski Brod; the regional waste management centre <strong>for</strong> Zadar county; the<br />

Kastijun county waste management centre <strong>for</strong> Istria; <strong>and</strong> the Mariscina regional waste management centre.<br />

S T R AT E G I C M O V E S<br />

need to allocate funds from the national budget <strong>and</strong>/or loans, private sector participation<br />

or other financial mechanisms such as carbon financing. The IPA can<br />

be seen as a learning exercise that will prepare future member states <strong>for</strong> the challenges<br />

<strong>and</strong> opportunities of the EU Structural <strong>and</strong> Cohesion Funds.<br />

As the first result of IPA operation, a set of national <strong>and</strong> regional programmes, as<br />

well as horizontal (multi-beneficiary) programmes, covering the environmental sector<br />

were elaborated under IPA Component I. Projects receiving support from IPA 2007<br />

<strong>and</strong> 2008 are approved <strong>and</strong> under implementation, <strong>and</strong> approval of the next set of IPA<br />

projects is currently taking place. However, due to the financial crisis, IPA funds <strong>for</strong><br />

2009 are slightly smaller (Presentation: Fiedler, 2008a). Current funding continuously<br />

helps countries to strengthen national capacities <strong>for</strong> environmental management; <strong>and</strong><br />

to upgrade municipal environmental infrastructure, including the establishment of integrated<br />

waste management systems <strong>and</strong> the modernisation of water supply <strong>and</strong> wastewater<br />

treatment facilities. Several regional programmes <strong>for</strong> environment were<br />

established under IPA 2007, 2008 <strong>and</strong> 2009 to improve integrated water management<br />

in the region, to facilitate approximation to the EU acquis in the field of water, <strong>and</strong> to<br />

create a sustainable pipeline of projects dealing with water protection.<br />

Current practice shows that the majority of countries were able to prepare lists<br />

of environmental investment projects eligible <strong>for</strong> financing. However, many of the

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