Urban Water Management Case Study I: Berlin

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Urban Water Management Case Study I: Berlin Nadine Herbke, Britta Pielen, Jessica Ward & R. Andreas Kraemer Ecologic - Institute for International and European Environmental Policy Berlin - Brussels

Content Background: Water in Germany History of the Berlin water supply & sanitation (WSS) services State of the Art Economic aspects Impacts of the WFD Future needs Main constraints

Background I - Water in Germany Competence distributed between federal level and States (Länder) Municipalities have the right to manage the provision of public WSS services 5.4 billion m³ per year used by public water supply (3 % of available resources) Low per-capita consumption with resulting high costs linked to infrastructure maintenance Yearly per-capita costs for drinking water: 82 Euro

Background II - Waste Water in Germany 95% of the population connected to an urban waste water collection system (2001) Tertiary treatment applied to waste water of 88% of the population Waste water disposal dominated by public undertakings, private sector involved in sub-tasks Yearly per-capita costs for waste water: 124 Euro For both drinking water and wastewater collection, the principle of cost-recovery is applied, and prices have remained stable for the last 10 years

The Elbe River Basin (German Part) Source: www.fgg-elbe.de

History of the Berlin WSS Before 1920: Old Berlin surrounded by eight cities and 80 municipalities 1920-1945: Water provision ensured in Greater Berlin by two separate entities, public & private 1949-1990: Separate water provision, sewerage system remained connected 1992: Merging of west and east providers of water and sanitation services 1999: Partial privatisation of Berliner Wasserbetriebe

State of the Art I - Sewage Collection Large proportion of the population connected to the sewerage system: 99% in the west, 95% in the east Six wastewater works, only one located within Berlin Treatment plants include tertiary treatment Compliance with Urban Wastewater Treat. Directive Two sewerage systems Separate rain water collection and untreated rain water discharge (75% of the area) Mixed system with rain water and sewer collection (mainly in the centre) Long-term plans for the renewal and restoration of the Berlin sewerage system

State of the Art II - Water Quality Large proportion of Heavily Modified Water Bodies and artificial water bodies 75% of surface water bodies (WB) will most probably not reach WFD objectives All groundwater bodies achieve quantity objectives but almost all at risk of not reaching good chemical status Main pressures Wastewater, especially overflow of mixed systems Untreated rain water drained on paved surfaces Pollution from outside Berlin (sulphate from coal mining) Landfills, sites storing construction debris

Economic Aspects I - Part Privatisation 1999: Part-Privatisation Berliner Wasserbetriebe (BWB) Public-private partnership between RWE, Vivendi (now Veolia), (and Allianz - until 2002) BWB: integrated in Berlinwasser Holding plc, legally keeping status of public-law company Original contract: guaranteed consortium minimum rates of return for 28 years, plus 2% profit margin on original investment capital Judged unconstitutional ( 99), law amended ( 03) Non-public consortium agreement: aimed to ensure influence of Land Berlin; tariffs, employment, investments

Economic Aspects II - Management Organisational Structure: Berliner Wasserbetriebe Employee Committee Appoints 8 members Executive Board of Directors (Vorstand) Appoints, advises & controls Audit Committee Auditor Ensures independence Appoints Supervisory Board (SB) (Aufsichtsrat) Appoints & dismisses Assembly of Guarantors (Gewährträgerversammlung) Chairs Proposes 7 members for SB Appoints Berlin Senate

Economic Aspects III - Charging System Charging system No two-tired tariffication system: only variable charge 80% fixed costs can only be covered through consumption-based charges High water saving incentives for customers Uncertainties for BWB as service provider Connection fee, sewerage charge, rainwater charge (effluent charge) Strategies Change in tariffication system: still rejected by Berlin Senate Regional expansion of wastewater collection and treatment activities

Impacts of the WFD I Institutional framework for WFD implementation Havel co-ordination area River Basin Community Elbe (FGG-Elbe) International Commission on the Protection of the Elbe River Basin (ICPE) Close co-operation with Land Brandenburg Achievement of Good Status by 2015? Not quantity, but quality problems Berlin WFD characterisation report: 84% of surface water bodies artificial or heavily modified (Spree) Biggest challenge: hydromorphology

Impacts of the WFD II Economic challenges Improved reporting on cost recovery Accounting for subsidies Apportionment of costs of measures yet unknown WFD may speed up change of pricing system

Further Needs Further activities are required in the following areas: Adjustments in rainwater management Improvements in hydromorphology Management of groundwater Reduction in sulphate loads Minimisation of nutrient pollution Adaptation of monitoring programme [ ]

Main Constraints Institutional and political constraints Administrative vs. implementation scale Nutrient reduction Technical constraints, e.g. Hydromorphology Sulphate load reduction Modification of rainwater collection system Economic constraints Budget insufficient for establishing good status area-wide Prioritisation needed (Criteria for priorisation? Affordability (Art. 4)?)

Urban Water Management Case Study I: Berlin Nadine Herbke, Britta Pielen, Jessica Ward & R. Andreas Kraemer Ecologic - Institute for International and European Environmental Policy Berlin - Brussels

Economic Aspects Annex I Investments in the sewerage sector: BWB 2000-2004 2004 2003 2002 2001 2000 105,00 94,00 98,60 83,90 73,10 56,90 59,70 142,60 181,00 180,90 0 20 40 60 80 100 120 140 160 180 200 Renewal (Mio ) Extension (Mio ) Source: BWB 2004

Economic Aspects Annex II Evolution of sewerage and rainwater charges in Berlin 3 2,5 2,329 2,452 2,465 Euro 2 1,5 1 1,974 1,959 1,237 1,292 1,407 1,479 1,533 Sewerage Charge (per m³) Rainwater Charge (per m²/year) 0,5 0 2002 2003 2004 2005 2006 Source: BWB 2006