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

BOX 24: Upgrade and extension of the wastewater treatment plant in Subotica, Serbia
of EUR 7.6 million. Three other projects advanced significantly. Technical assistance
for water sector projects in 13 FBiH municipalities and technical assistance
for water sector projects in 16 RS municipalities both secured conditional EIB
loans (i.e. for those municipalities that can secure 50 percent from own funds).
The project “Protection of the Drinking Water Reservoir for Tuzla Canton” secured
an IPA grant and an EIB loan subject to 50 percent secured from own funds.
In Croatia, total funds of EUR 164 million were secured for 12 projects, six of
which secured sufficient funds to complete detailed project designs and/or commence
with the construction phase (EUR 162.7 million). These six projects were
therefore removed from the list. Four of the projects were from the waste sector
and two from the water sector. At the same time, another six projects were removed
from the PEIP lists as they were no longer considered as high-priority projects (following
consolidation with the EPOP list discussed at the beginning of this chapter).
The project for the waste management centre for Eastern Slavonia was
dropped from the list as negotiations about forming a regional utility company
failed and the project came to a standstill. The projects secured funding from different
sources. Projects previously on the list secured the remainder of funding in
the form of grants from Phare and CARDS, as well as various national and own
funds (e.g. through Croatian Waters, the EPEEF, municipal budgets, and publicprivate
partnerships) supplemented by loans (mainly from the EBRD). Six projects
entered the IPA pipeline in the 2007–2009 period, three of which were approved
(by September 2009) for regional/county waste management centres for Zadar
county, for the Istria region, and for Sisacko-Moslovacka county.
C H A P T E R 8
P R I O R I T I S AT I O N O F I N F R A S T R U C T U R E P R O J E C T S — T H E P E I P L I S T S
The upgrading and extension of the wastewater treatment plant will have significant regional benefits. Project implementation
will significantly improve the ecological status of Lake Palic and that of Lake Ludos and the Tisa River,
which receive waters from Lake Palic. The project will contribute to the prevention of groundwater pollution and
to the improvement of cleaning technology with de-nitrification and de-phosphorisation.
Financial setup:
The total cost of the project is EUR 18.6 million. The project secured total funding through the following financial
setup:
• Own sources: EUR 3.9 million provided by the municipality of Subotica
• Grants: EUR 5,670,159 provided by the European Agency for Reconstruction and the EBRD
• Loans: EUR 9 million provided by the EBRD with subsidised interest
Success factors:
Good project documentation was provided, including financial and management plans. The PUC was managed
properly and its project preparation capability was developed. A tariff policy and plan was developed, envisaging
a gradual increase in tariffs.
S T R AT E G I C M O V E S 199