The Priority Environmental Investment Programme for SEE (PEIP)

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1 The Priority Environmental Investment Programme for SEE (PEIP) Analytical Report on progress on developing and implementing environmental investment projects in the SEE. BACKGROUND DOCUMENT NR: 6 Country name: CROATIA Timescale: progress between November 2008 and June 2009 Aim of the document: To present major developments in the countries on creating conditions for implementation of environmental investment projects and progress on financing these projects. This document accompanies the updated list of projects (background document nr 7) and it is prepared for the final Regional Meeting of the PEIP on 18 th of June Progress on financing priority projects from PEIP list As of November 2008, there were 29 projects on the PEIP List. Until June 2008 there were no additions, while two projects are proposed to be removed from the list: HR 31 because the financial construction is closed, and HR 19 because the project is in liquidation, please see more details below about these two projects. Therefore, the list closes in June 2009 with 27 projects. Between November 2008 and June 2009, 5 projects have seen improvements, three from the waste sector and one from the water sector, while 1 project (HR 19) has to be unsuccessfully terminated. Waste Sector: HR 15 Remediation of the Asbestos Polluted Mravinacka Kava Site. Progress: Additional co-financing is foreseen from the Fund for Environemntal Protection and Energy Efficiency. The Fund secured Kn (around 257k ) for the preparation of project documentation. The consulting company for preparation of project documentation and permits is tendered out and all permits should be issued by September The Fund also became the owner of two objects on site needed for the project implementation. Project cost: MEUR. HR 19 Regional Waste Management Centre for East Slavonia. The negotiations between the MoEPPPC and 2 involved counties (Vukovar-Syrmia and Osijek-Baranja) related to adaptation of the BOT - based landfill and the concept of RWMC that should be financed according to the model suggested by the Ministry lasted for 1,5 years. The negotiations until mid 2008 assumed promises for the fast solution to further development of RWMC. Setback: based on the impossibility to adapt the previously 1

2 planned model of technology and financing to the National WMP, by the beginning of 2009 both counties decided to take their own approach to integral waste management, by establishment on their own County WMCs. The decision was accompanied by abatement of Public Institution for Eastern Slavonia. Until the resolvement of situation that also involves the dispute between the founders of ZOIS and the consortium for BOT, a temporary Director is appointed. Therefore, the project is to be removed from the PEIP List as of June HR 39 Remediation of Botovo - hazardous waste disposal site. The project is on the EPOP list, and is now in the IPA project pipeline. Estimated date of finalising IPA application with supporting documents is Progress: The project is co-financed by EPEEF (1,1 MEuro). Project for remedation of site is made. Project Cost: 8.5 MEUR. HR 40 Remediation of Kaštelanski zaljev - hazardous waste disposal site. The project is on the EPOP list, and in the IPA project pipeline. Estimated date of finalising IPA application with supporting documents is Progress: Project documentation of site remedation is completed. Project cost: 10 MEUR. Water Sector: HR 31 Upgrade of the wastewater treatment plant in the town of Garesnica. First phase of the project is finished and operationa, second phase will be finished next year. Progress: Funds are now completely secured, all documentataion exists. Project was financed 60% by Hrvatske Vode and 40% by Town of Garesnica. Therefore, the project is to be removed from the PEIP List. Project Cost: 0.82 MEUR. All funds secured HR 48 Waste Water Disposal System and Treatment Plant of town Nova Gradiska. The project is on the EPOP list and in te IPA project pipeline. Estimated date of finalising IPA application with supporting documents is IPA application and feasibility study will be developed through IPA tehnical assistance pipe-line. IPA technical assistance is still in process of assesing the project. Therefore there is no funding for the project available yet, but technical assistance from IPA is expected. Progress: The project size is expanded to cover 31,000 person equivalent (from 14,000). 2

3 2. Strategic and Planning Documents No changes since November Legislative framework Several legislative documents have been update in 2009, as follows: Croatian legislation Regulation on categories, types and classification of waste with a Waste catalogue and list of hazardous waste, OG 50/05 Regulation on supervision of transboundary movement of waste, OG 69/06 Ordinance on packaging and packaging waste, OG 97/05, 115/05 Corresponding EU legislation 91/689/EEC Regulation 1013/2006 Amended (OG) 39/09 Regulation 1013/ /07, 39/09 94/62/EC 81/08, 31/09 Ordinance on the management of waste tyres, OG 40/06-31/09 Ordinance on waste oils management, OG 124/06 75/439/EEC 121/08, 31/09 Ordinance on management of waste batteries and accumulators, OG 133/06 Ordinance on the management of end-of-life vehicles, OG 136/06 Ordinance on the management of waste electrical and electronic appliances and equipment, OG 74/ /66/EC 31/ /53/EC 31/ /96/EC 133/08, 31/09 4. Institutional structures No changes since November In the Water sector the Ministry of Regional Development, Forestry and Water Managemet (Directorate for Water Management and Directorate for Water Policy and International Projects) is still sharing water sector responsibilities with the Croatian Waters (CW) which is assisting water sector in project preparation and IPA application. The Ministry for Environmental Protection, Physical Planning and Construction (MoEPPC) is responsible for the Air and Waste sector, as well as the Environmental Protection and Energy Efficiency Fund (EPEEF) which is assisting the waste sector in project preparation and IPA application. Beteween 2007 and 2009 the key actions of the EPEEF were the following: contracts with SGU for remediation of 299 registered landfills ( works completed on 63 landfills), Total value 387 MEUR, disbursed for remediation of official landfills in years MEUR. EPEEF co-finance projects with 55%. for remediation of illegal dumpsites EPEEF allocated another 14.3 MEUR, and for remediation of hot spots 53.4 MEUR. 3

4 EPEEF will support investments for establishment and construction of RWMC with 51.5 MEUR from EPEEF co-finance project investigation works, give allocations for land purchasing, finance preparation of technical documentation in nine counties (5.5 MEUR) in EPEEF invests 8.8 MEUR in management of special waste categories 5. Status of water and waste infrastructure and public utilities No changes since November There has been no significant progress in regionalisation efforts. The intention is to reorganize municipalities and to achieve regional cooperation among municipalities. In the meantime, one new regional waste management center company has been officially established, the one in the Sisačkomoslavačka County. 6. Financing mechanisms There have been no changes in the structure of the financing mechanisms since November The Environmental Protection and Energy Efficiency Fund (EPEEF) is assisting the waste sector in project preparation and IPA application, while the Croatian Waters (CW) is assisting water sector in project preparation and IPA application. The indicative financial table for IPA is as follows: Total public Expenditure Community Contribution (IPA) National Public Contribution Priority Axis 1: Developing waste management infrastructure for establishing an integrated waste management system in Croatia Measure 1.1: Establishment of new waste management centres at county/ regional levels mil Eur mil Eur 8.78 mil Eur mil Eur mil Eur 8.72 mil Eur Measure 1.2 : Remediation of sites highly polluted by waste (hot spots) 0.24 mil Eur 0.18 mil Eur 0.06 mil Eur 7. Relevant projects/programmes RWMC Primorje Gorski Kotar (HR 10) RWMC Split-Dalmatia County (HR 24) RWMC Istria (HR 26) 4

5 8. Key challenges for the next 6 months Further approximation of Water Management legislation with the EU Acquis Implementation of projects under IPA component III b Slavonski Brod, Knin, Drniš, Sisak Preparation for Structural Funds (NSRF, OP for Environment and Energy and project preparation) Investment strategy in water management sector (PHARE 2006) Updating of OP Environment

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