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

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

07.12.2012 Views

tion to the donor community on environmental and institutional needs and priorities and on the status of environmental investment planning in the region. During the 2007–2009 period, the PEIP has maintained lists of priority projects; organised nine national workshops and four regional meetings; and drafted manuals on water reform and waste sector investments. Managing a pipeline of projects was part of continuing efforts to make available the most up-to-date information on projects selected as priorities by the governments. The regional meetings were intended to provide an overview of progress in the different countries in terms of environmental investments, but also to attract donors and IFIs and to draw their attention to the issue. The national workshops were an opportunity to have in-depth discussions on a selected topic (water or waste), to attract a wide range of stakeholders, and to initiate a productive debate and exchange of experience. The manuals are targeted at all water and waste utilities in the region but are also of interest to policy makers. They are intended to serve as a source of reference beyond the duration of the project. At the start of the PEIP in 2001, the SEE countries lacked experience in strategic planning and the prioritisation of environmental investments projects, as well as knowledge of available sources of funding. Through the activities outlined above, and by serving as an information exchange platform, the PEIP has contributed to filling this gap and to raising awareness. While significant progress has been achieved in priority project identification and project preparation, there is still a need for improvement. These issues will continue to be addressed under the Regional Environmental Network for Accession (RENA). Status of environmental infrastructure in SEE The condition of the physical environmental infrastructure varies among SEE countries, Croatia being ahead of the other countries in the region especially in relation to wastewater treatment infrastructure. However, there is a big margin for improvement in all countries and significant financial resources will be required for many years to come. Water supply infrastructure in SEE is relatively developed in urban areas, while sewerage, wastewater treatment and waste management infrastructure are far less developed and in a poorer physical condition. The situation is worst in rural areas and efforts should be made to integrate the whole territory of each country in water supply systems. Proper waste management is a health and environment issue that should be tackled as a priority. Wastewater treatment is a huge challenge that needs to be addressed with careful planning and prioritisation. Common problems facing the water sector in SEE countries include the relatively low level of drinking water supply in rural areas; big water losses due to ageing infrastructure; and significant unaccounted-for water (Uf W). These problems need to be addressed as part of holistic national water reforms, including the reform of the water utilities comprising regionalisation, corporatisation and other suitable measures that will lead to them operating according to more market-based princi- E X E C U T I V E S U M M A R Y S T R AT E G I C M O V E S 21

22 E X E C U T I V E S U M M A R Y S T R AT E G I C M O V E S ples. Creating conditions for private sector participation is one of the ways to increase access to capital and to introduce much-needed know-how. Waste management infrastructure in SEE is inadequate and there are only a few landfills in the region that comply with EU regulations. There are also a huge number of illegal dumpsites or landfills with low standards. Urban areas in the SEE region are relatively well covered by waste collection and transportation services, unlike rural areas. At the same time, there is and will be pressure to change the situation fundamentally as a number of EU directives stipulate the establishment of integrated waste management systems, including separate collection, recycling, sanitary landfills etc. All the SEE countries are on the right track in this respect as they have all adopted the more economically justifiable regional approach. However, the big challenge will be to implement it in practice in the coming years. Bosnia and Herzegovina, Croatia and Serbia have made the biggest progress in project preparation for regional sanitary landfills, while Croatia and Kosovo (as defined under UNSCR 1244) have been successful in closing and remediating the biggest number of non-sanitary landfills. Closing and remediating old illegal dumpsites is a precondition for establishing new waste management centres. Challenges to environmental financing in SEE on the national level Financing environmental infrastructure projects in compliance with the EU environmental acquis requires the establishment of a clear legal and strategic framework and the reform of institutional and financial systems. The process necessitates strong and persistent political will. At the same time, it is of the utmost importance for governments to realise the political and financial opportunities presented to the countries during the pre-accession period and to capitalise on them. Political will for accession is currently relatively strong and many financial opportunities are available. The global economic recession has led to further constraints on the financial situation in the SEE region and has affected investments in environmental infrastructure, with some infrastructure projects having to be suspended. However, the crisis is also an opportunity to carry out reforms that are less resource consuming. In relation to affordability, in many cases large-scale infrastructure investments are not attractive due to the long payback periods and other constraints. It is therefore very important to make intelligent use of the resources available from the EC and other bilateral donors in order to address the affordability issue. The full transposition of the investment-heavy directives is an important driver for environmental infrastructure projects as it will place a legal burden on national and local governments to create the necessary conditions for investments to take place. The lack of key sectoral and environmental investment strategies delays environmental investments, since strategies set the framework and direction for follow-up laws and regulations. This is also valid for local management plans. One of the benefits of drafting strategies and plans through wide stakeholder dialogue is

22<br />

E X E C U T I V E S U M M A R Y<br />

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

ples. Creating conditions <strong>for</strong> private sector participation is one of the ways to increase<br />

access to capital <strong>and</strong> to introduce much-needed know-how.<br />

Waste management infrastructure in SEE is inadequate <strong>and</strong> there are only a few<br />

l<strong>and</strong>fills in the region that comply with EU regulations. There are also a huge number<br />

of illegal dumpsites or l<strong>and</strong>fills with low st<strong>and</strong>ards. Urban areas in the SEE region<br />

are relatively well covered by waste collection <strong>and</strong> transportation services,<br />

unlike rural areas. At the same time, there is <strong>and</strong> will be pressure to change the situation<br />

fundamentally as a number of EU directives stipulate the establishment of<br />

integrated waste management systems, including separate collection, recycling, sanitary<br />

l<strong>and</strong>fills etc. All the SEE countries are on the right track in this respect as they<br />

have all adopted the more economically justifiable regional approach. However,<br />

the big challenge will be to implement it in practice in the coming years.<br />

Bosnia <strong>and</strong> Herzegovina, Croatia <strong>and</strong> Serbia have made the biggest progress in<br />

project preparation <strong>for</strong> regional sanitary l<strong>and</strong>fills, while Croatia <strong>and</strong> Kosovo (as<br />

defined under UNSCR 1244) have been successful in closing <strong>and</strong> remediating the<br />

biggest number of non-sanitary l<strong>and</strong>fills. Closing <strong>and</strong> remediating old illegal dumpsites<br />

is a precondition <strong>for</strong> establishing new waste management centres.<br />

Challenges to environmental financing<br />

in SEE on the national level<br />

Financing environmental infrastructure projects in compliance with the EU<br />

environmental acquis requires the establishment of a clear legal <strong>and</strong> strategic framework<br />

<strong>and</strong> the re<strong>for</strong>m of institutional <strong>and</strong> financial systems. The process necessitates<br />

strong <strong>and</strong> persistent political will. At the same time, it is of the utmost<br />

importance <strong>for</strong> governments to realise the political <strong>and</strong> financial opportunities presented<br />

to the countries during the pre-accession period <strong>and</strong> to capitalise on them.<br />

Political will <strong>for</strong> accession is currently relatively strong <strong>and</strong> many financial opportunities<br />

are available.<br />

The global economic recession has led to further constraints on the financial situation<br />

in the SEE region <strong>and</strong> has affected investments in environmental infrastructure,<br />

with some infrastructure projects having to be suspended. However, the<br />

crisis is also an opportunity to carry out re<strong>for</strong>ms that are less resource consuming.<br />

In relation to af<strong>for</strong>dability, in many cases large-scale infrastructure investments<br />

are not attractive due to the long payback periods <strong>and</strong> other constraints. It is there<strong>for</strong>e<br />

very important to make intelligent use of the resources available from the EC<br />

<strong>and</strong> other bilateral donors in order to address the af<strong>for</strong>dability issue.<br />

The full transposition of the investment-heavy directives is an important driver<br />

<strong>for</strong> environmental infrastructure projects as it will place a legal burden on national<br />

<strong>and</strong> local governments to create the necessary conditions <strong>for</strong> investments to take<br />

place. The lack of key sectoral <strong>and</strong> environmental investment strategies delays environmental<br />

investments, since strategies set the framework <strong>and</strong> direction <strong>for</strong> follow-up<br />

laws <strong>and</strong> regulations. This is also valid <strong>for</strong> local management plans. One of<br />

the benefits of drafting strategies <strong>and</strong> plans through wide stakeholder dialogue is

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