Equilibrium Europe. drs. J.H.J. Lutgens RA, WRO

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1 Equilibrium Europe

2 The Netherlands

3 THE NORTH SEA FLOOD March

4 Romanian projectpartners 1. Ministry of environment and sustainable development 2. National Administration 'Apele Romane' 3. Somes-Tisa Waters Division 4. Crisuri Water Division 5. Banat Water Division 6. Arges - Vedea Water Division 7. Siret Water Division

5 Dutch projectpartners Waterschap Roer en Overmaas Dutch Association of waterboards

6 University partners Romania: Babes Bolyai University Netherlands: University of Maastricht (UM)

7 Budget and spendings Total budget 2008 : ,- Total budget 2009 : , Total budget 2010 : ,- Total budget : ,- Spent untill 2009 : ,- Financed by WRO, Unie: ,- Financed by NWB. : ,-

8 Problem statement Because of deficits Water authorities in Romania suffer from severe difficulties to accomplish primary tasks. How to solve this problem?

9 Problem solution Design and introduce a tax-contribution system providing sufficient funding to finance all activities related to : ensure raw water and flood protection.

10

11 Internationally accepted tax principles Evaluation grid tax systems (1) Viewpoints 1. The benefit Principle 2. The polluter pays principle 3. The cost recovery principle 4. The solidarity principle 5. The legality principle 6. The social principle 7. The stability principle 8. Others 1. Complexity 2. Democratic 3. Transparancy 4. Robust 5. Costs

12 The Dutch Model Local water authorities (Waterschappen) Stakeholder involvement Local financing by local taxes

13 LUTGENS POLICY HYPOTHESIS Ministry of Environment Level of performance Ministry of Satisfactory Ministry Basic needs Water management Social security Economy Other policy domains Water management 18 March

14 USAID SEPIC support to Enhance Privatization, Investment, and Competitiveness in the water sector of the Romanian Economy

15 Project characteristics Duration: 3 years

16 Project characteristics Duration: 3 years Step by step approach project plan

17 Project characteristics Duration: 3 years Step by step approach project plan No regret approach

18 Project characteristics Duration: 3 years Step by step approach project plan No regret approach Frequent communication of interim results to ARNA and Ministry

19 Project characteristics Duration: 3 years Step by step approach project plan No regret approach Frequent communication of interim results to ARNA and Ministry Use of sophisticated methods of communication

20 Activities in 2008 Activity 1 WRO and the Dutch Association of Water boards, will give lectures and workshop(-training) on describing: relevant activities, processes and products.

21 Improving insight

22 Activities in 2008 Activity 2 STWD will produce a complete description of all relevant activities, processes an products

23 Activity 3 Equilibrium Europe Activities in 2008/2009 WRO and the Dutch Association of Water boards will give lectures and training on: the Dutch way of cost calculation, cost registration (cost accounting), cost allocation and pricing system.

24 Activities in 2009 Activity 4 STWD will finish a complete description of costs and revenues related to the described activities.

25 Activities in 2009/2010 Activity 5 STWD and WRO will organize an (inter)national conference in April/May 2010 in Cluj Napoca about: 1.presentation of cost allotment to activities and processes in Romania; 2.decision making by ARNA about the scenario that will be implemented in 2010.

26 Discussing taxes

27 Activities in 2008 Activity 6 Implementation of the approved Scenario by STWD and ARNA.

28 Funny guys these Dutchmen!

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