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

BOX 7: Financing regional waste management centres in Croatia
The costs incurred in establishing new facilities are dependent on the standards
that have to be adopted and the number, type and size of the facilities required for
complying with these new standards. The current levels of treatment available for
wastewater, drinking water, industrial discharges and agricultural practices are decisive
in terms of final costs. Such a wide variety of changes are needed that it is impossible
to give a precise figure of the costs of implementing water legislation.
Although the majority of SEE countries have institutions devoted to the prevention
of water pollution and to the permitting of installations, there is a need to upgrade them
in order to implement the entire body of legislation, in particular the new framework
directive. New working methods should be introduced in line with the new standards
applied, such as emission limits, quality objectives, best available techniques and the
C H A P T E R 4
E C O N O M I C D E V E L O P M E N T A N D T H E E U A C C E S S I O N P R O C E S S
The total investment needed in the waste sector in Croatia is estimated at EUR 3.25 billion. Depending on the
final number of regional waste management centres (RWMCs), the assessed investments will range from EUR 350
to 400 million in order to bring the landfills to operational level. The financing of RWMC construction is envisaged
through public sources (state budget, budgets of local and regional self-government units, EU funds, the Environmental
Protection and Energy Efficiency Fund [EPEEF], bank loans) as well as private sources (private
investments in WMCs, public-private partnerships [PPP], concessions, the primary separation and collection of
waste, recycling and collecting plants/facilities). In phase one of the RWMC financing structure, public costs
(landfill site, infrastructure and transfer station) will be financed up to 80 percent from EU funds and the EPEEF;
and 20 percent by local authorities. Bank loans will be used for the establishment of a collection system and for
the construction of the municipal waste disposal system at the level of the local (regional) self-government. In
phase two, the costs of mechanical biological treatment (MBT) plants will be financed by the private sector (PPP)
and, if possible, the public sector. Investments are required for MBT facilities, landfills and infrastructure, the construction
of transfer stations along with system set-up costs.
Source: REC, 2009b
BOX 8: Challenges to financing waste management in Kosovo (as defined under UNSCR 1244)
Based on the medium-term expenditure budget for the years 2010 to 2012, foreseen expenditure in the field of
environment for capital investments is EUR 14.8 million. For approved projects (2008 to 2012) the total is EUR
3.425 million, and for new projects EUR 9.8 million.
The main challenges identified in financing waste management projects in Kosovo (as defined under UNSCR
1244) are, to a large extent, representative of the situation in several SEE countries. They include defining clear
responsibilities at central and local level; settling ownership issues in relation to landfills and wastewater treatment
plants; increasing the limited budget for environmental management; establishing eco-funds; providing
mechanisms for obtaining international funds and loans; strengthening the existing financing system; and improving
payment and fee collections.
Source: REC survey, 2009; and REC, 2009b
S T R AT E G I C M O V E S 93