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2016 DW CONFERENCE: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION ”

2016 DW CONFERENCE: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION ”. BH/ F B & H EXPERIENCE IN SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF PREPARATION FOR THE EU MEMBERSHIP Vienna: May 12 and 13, 2016

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2016 DW CONFERENCE: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION ”

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  1. 2016 DW CONFERENCE: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION” BH/FB&H EXPERIENCE IN SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF PREPARATION FOR THE EU MEMBERSHIP Vienna: May 12 and 13, 2016 Hazima Hadžović, Assistant to Minister in the Water Sector, Federal Ministry of Agriculture, Water Management and Forestry

  2. 2016 DWC : “SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION” Vienna, May 12 and 13, 2016 Contents: • Current status of Waste Water Collection and Treatment Sector in Federation B&H • Status and activities inWater Supply and Sanitation Sector related to EU accession • EU Funds Assistance (IPA) - existing and planned • Plans for sector development(organisation, regulation,strengthening and building infrastructure) • Affordabilityof servicesat current tariffs • Expected sustainability challengesin managing new waste water systems

  3. 2016 DWC : “SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 CURRENT STATUS OF THE SANITATION SECTOR – ORGANISATION AND REGULATIONS • Sanitation Sector (SS) as part of the Water Services Sector(WSS) – responsibility of 10 cantons 79 municipalities; • WSS is regulatedby 10 cantonal laws on communal activities; • The law on communal activities at the FB&H level has not been enacted; • Line institutions are 10 Cantonal Ministries for Environement and PhysicalPlanningin hierarchy with Federal Ministries ofET and PPand on B&H level with MoFTERB&H • Organisational scheme on next slide

  4. 2016 DWC : “SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016CURRENT STATUS OF THE SANITATION SECTOR – ORGANISATIONAL SCHEME

  5. 2016 DWC: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 CURRENT STATUS OF THE SANITATION SECTOR – REGULATIONSAND PLANNINGDOCUMENTS • SS and urban waste wateridentifiedas a significant pressure on the water >>>goals and measures have been set out to reduce the pressures; • The measuresimply fromthe Law on Environment Protection, the Law on Water and Government Regulation on conditions for discharging wastewater and other regulations; • Next slides show some indicators of curent status which imply the measures in the WSS:

  6. 2016 DWC: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 CURRENT STATUS OF THE SANITATION SECTOR – OBLIGATIONS FROM PLANNINGDOCUMENTS Number of settlements with over 2,000 people in BiH

  7. 2016 DWC: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 CURRENT STATUS IN THE SECTOR OF WATER SERVICES – EXISTING INFRASTRUCTURE • Existing infrastructure of SS is not at the satisfactory level, indicators of status:

  8. 2016 DWC: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 CURRENT STATUS IN THE SECTOR OF WATER SERVICES - TARIFFS • The existing tariff is onaverage Euro 0,61/m3 and hardly covers or can’t cover operational costs of the system; • The decision on tariffs is the role of Municipal Councils; • No regulatory body for water services tariffs, regulations which determine the lowest water services price, no adopted methodology; • Insufficientcost recoveryinwater services – additional significant issue in RBM plans for Sava river; • In summary, the key water and sanitation sector challenges in B&H are: • Establishing tariffs based on costrecovery principle, • Increasingwastewater treatment coverage, • Improving effectiveness and operational efficiency of utilities, • Improving water quality and treatment of drinking water in rural areas;

  9. 2016 DWC: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 STATUS AND ACTIVITIES RELATED TO EU ACCESSION • B&H obligated to harmonize its legislation with the EU Acquis and toimplement EU integration requests; the environment sector and WSS have one of the bigest tasks; • The requirements and principles of EU water directives into national legislation on water were transposed in the following % : • 91% - Water Framework Directive, 2000/60/ EC; • 71% - Urban Waste Water Directive, 91/271/ EEC; • 30%- Drinking Water Directive, 98/83/EC; • 30% - GroundwaterProtection Directive2006/118/EC; • 70% - Flood Risks |Directive 2007/60/EC; • 30% - Nitrates Directive 91/676/EEC. • Assessment of transposition and harmonization is in process forother EU Directives: Monitoring of Waters Status;Environmental Quality Standards;Discharge of Dangerous Substances;Bathing Water Directive;Freshwater Fish Water Directive; •  The transposing percentages are increasing, however, effective application and implementation of the new legislation is not secured, which is still a major challenge;

  10. 2016 DWC : ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 STATUS AND ACTIVITIES RELATED TO EU ACCESSION • Prepared documents for Sava Watershed in B&H : • SavaRBM planin FB&H; • Sava RBM plan in RS; • SavaRBM plan in BD B&H, and • Roof Report and program of measures for RBM plans for Sava Watershed in B&H; • Prepared documents for Adriatic Sea Watershed: • Neretva with Trebišnjica RBM plan inFB&H; • Trebišnjica RBM plan in RS; • RoofReportwith program of measures for the RBM plans forAdriatic Sea Watershed in B&H; • Cetina and KrkaRBM plan in FB&H; • These RBM Plans and PoMsare related to the planning cycle 2015-2021, adoption expected in 2016, but their implementation is a challenge for SS for the following reasons:

  11. 2016 DWC: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 STATUS AND ACTIVITIES RELATED TO EU ACCESSION DETERMINED STATUS OF WBAS REQUESTED BY THE EU Table: 1 Total status assessment of surface water bodies based on monitoring findings Table: 2 Candidates for HMWBs and AWBs

  12. 2016 DW CONFERENCE: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 STATUS AND ACTIVITIES RELATED TO EU ACCESSION- STATUS OF WBAS REQUESTED BY THE EU Table: 3 Status of WB as requested by EU

  13. 2016 DWC : ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 STATUS AND ACTIVITIES RELATED TO EU ACCESSION- STATUS OF WBAS REQUESTED BY THE EU Determineted Status of water bodies

  14. 2016 DWC : ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 ASSISTANCE FROM EU FUNDS (IPA) –precondition for IPA funds and existing support • A precondition to use IPA II funds for all sectors including Environment is adoption of sector strategy at the B&H level; • B&H Environment Strategy and other documents for EU integration are prepared in draft version in 2014, but still awaiting adoption; • Due to the non-fulfillment of the above precondition, since 2013 B&H environment sector has a limit for application and use of IPA II funds for co-financing projects; • Other EU funds such as the WBIF, and bilateral donors as SIDA, also sets the same requirement to support SSprojects; SIDA already canceled its funding for UWWT within the WATSAN FBiH and RS;

  15. 2016 DWC: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 ASSISTANCE FROM EU FUNDS (IPA) - PLANNED? • The Planof the FB&H WM Strategy, predicted that 40% of the EU funding andotherIFIswillbefor projects related to improvementof water services by 2022 (approximately EUR 450 million) • Recent estimate is EUR 2.800 million ( 2.100 million for WW, and 700 million for DW) by 2035; • To use this source of funding, it is necessary that: • 1.Establishment of the DIS, decentralized management of EU Funds (basis for multi-annual programming) of IPA funds for projects in B&H; • 2. Adoption of Environment Strategyat the B&H level and other accompanying documents; • Planning for use of IPA funds for SS without these two conditions is not possible.What are the alternatives? • FB&H Government is trying to find short-term solutions with the new loan to help municipalities with implementation of ongoing projects.

  16. 2016 DWC: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 PLANS FOR SECTOR DEVELOPEMET - ORGANISATION, REGULATION AND STRENGHTENING • Improving the SS in the current circumstances should focus on strengthening the capacity of staff and operational efficiency of PUCs (benchmarking, asset management, reducingnon-revenuewater, training and licensing of staff, including management and municipal decision-makers), using positive examples of successful PUCs; • Inclusion of B&H PUCsin the project activities of DWP-IWAD-WB and ORF/GIZ with funding from Austria, Germany and Swiss Gvts as way to improve water services; • Indicative is greater interest for these activites of PUCs from B&H/FB&H than others SEE countries; • Including municipalities with curent investment projects is a priority;

  17. 2016 DWC: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 PLANNES FOR SECTOR DEVELOPMENT - BUILDING OF INFRASTRUCTURE -SS infrastructure in FB&H is needed for 175settlementswith more then 2,000 people in the following order: a) Settlements over 10,000 ES (tertiary treatment) sensitive areas, b) Settlements over 15,000 ES (secondary treatment) c) Settlements w/ 10,000-15,000 ES (secondary treatment) d) Settlements w/ 2,000-10,000 ES, -Increasing share of public water supply in rural areas is urgent,in order to eliminate issues of water quality in the local PUCs and protect peoples health; -Part of these measures is being implemented through the ongoing projects(EIB WATSAN FB&H and RS, Project sewerage and WWTP in Bihac, WWTP Sarajevo, Mostar ...;)

  18. 2016 DWC: ”SUSTAINABLE WASTE WATER MANAGEMENT IN THE CONTEXT OF THE EU ACCESSION”Vienna, May 12 and 13, 2016 EXPECTED CHALLANGES – NEW TARIFFS NECESSARY SERVICE SUSTAINABILITY • The need for building infrastructure is unquestionable, as is the need for the solution of two biggest challenges, as a precondition for service sustainability: - Tariffs increase for water services to households and • - Harmonization of tariffs for households and industry! • The possible solutions to the above challenges are the adoption by the FB&H Parliament: • The Law on communal activities at the FB&H level, which is a big challenge, as itrequiresagreement of all 10 cantons and/or • Amendment to the Law on Water prescribing the obligation of the FB&H Government or FMAWMF for the adoption of regulations on the lowest base price forWS, which is also a major challenge, because itrequires positive opinion of all 10 cantons;

  19. Thank you for your attention! Hazima Hadzovic, Assistant to Minister, FMoAWMF, FB&H Sarajevo, Bosnia and Herzegovina Phone: +387 33 72 66 51 E-mail: hazima.hadzovic@fmpvs.gov.ba www.fmpvs.gov.ba

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