Progress on financing priority environmental infrastructure projects in the Republic of Serbia

1. Progress on financing priority environmental infrastructure projects in the Republic of Serbia Aleksandar Vesić Bsc Assistant Minister Sector for managing and planning

2. Governmental Instrument • Ministry of Environment Protection • Ministry of Transport and Communication • Ministry of Agriculture, Forestry and Water Economy • Ministry of Local Self Government • Ministry of Economy • Ministry of Finance Ministry of Environmental Protection of Republic of Serbia

3. Institutions and Domestic Financing Mechanisms Ministries: • Environmental Protection (MoEP) • Planning and Management Directorate • Project Management Department • Waste Management Department • EU Integration & Intnl. Cooperation Dept. • Agriculture, Forestry and Water management (MoAFWM) • Serbian Water Directorate • National Water Agency • National Investment Program (MoNIP) • Finance (MoF) • Development Assistance Coordination Unit (DACU) Ministry of Environmental Protection of Republic of Serbia

4. National Managing Institutions and Financing Mechanisms Other Bodies: • National IPA Coordinator (NIPAC) (DACU serves as secretariat of NIPAC) • Municipal Infrastructure Coordination Group (chaired by MoEP) • Environmental Protection Fund (linked to the MoEP) • Water Management Institute “Jaroslav Cerni” • Office for European Integrations plus: • Recycling Agency • National Guarantee fund • Republic Development Bureau • Standing Conference of Towns and Municipalities (SCTM) Ministry of Environmental Protection of Republic of Serbia

5. Fund for Environmental Protection (FEP) • In 2007, the Serbian FEP signed a total of 2 EUR million (165 RSD million), entirely for the waste sector. • From that sum, 200,000 EUR forconstruction of the 1st phase of the Regional Waste Landfill in Prokuplje, • And 10,000 EUR for project documentation For the same landfill. • The remaining 1.79 EUR million was allocated for remediation of seven municipal landfills. • For 2008, the Serbian FEP assigned 17.4 EUR million in total. Out of that sum, 9.4 EUR million (54%) is dedicated for the waste sector. • If we include contaminated soil remediation as part of the WASTE sector, the total sum for this sector reaches 14.1 EUR million (81%). • For the AIR protection sector, a total of 0.77 EUR million (13.5%) is assigned. Ministry of Environmental Protection of Republic of Serbia

6. Ministry of National Investment Plan (NIP) 2008 • NIP plans to disburse 600 MEUR • 70% (420 MEUR)for infrastructure projects. • 15 projecrs • In the first three months of 2008 • approved 4.2 EUR million water infrastructure, • disbursed around 1.1 EUR million, • in 11 Serbian municipalities Ministry of Environmental Protection of Republic of Serbia

7. 1. Progress on financing priority projects from PEIP list • Currently30 projects on the list, • 18 in the Water sector, • 10 in the Waste Sector, • 2 in the Air Sector. Ministry of Environmental Protection of Republic of Serbia

8. New projects proposed by the Water Directorate in May 2008Proposed by the Serbian Water Directorate (WD) Feasibility Studies for collection transport and treatment of waste waters on Municipal level. • 1. Municipality of Arilje (SR- 25). 160,000 EUR • 2. Municipality of Cuprija (SR- 26). 165,000 EUR • 3. Municipality of Ivanjica (SR- 27). 78,000 EUR • 4. Municipality of Koceljeva (SR- 28). 42,000 EUR • 5. Municipality of Krusevac (SR- 29). 180,000 EUR • 6. Municipality of Kursumlija (SR- 30). 92,000 EUR • 7. Municipality of Loznica (SR- 31). 162,000 EUR • 8. Municipality of Nova Varos (SR- 32). 64,000 EUR • 9. Municipality of Prijepolje (SR- 33). 155,000 EUR • 10. Municipality of Sjenica (SR- 34). 85,000 EUR • 11. Municipality of Svilajnac (SR- 35). 105,000 EUR • Total: 1.21 EUR million. Ministry of Environmental Protection of Republic of Serbia

9. Progress on financing priority projects from PEIP list SR-10 Equipment supply for re-cultivation and preservation of ash and slag depot at Kolubara TPP “Nikola Tesla” Equipment costs: 0.025 EUR million Now secured, from own funds Therefore, the project can be removed from the PEIP list. SR-1 Upgrade and extension of the “Kolubara-Prerada” WWTP Progress: Conceptual Design and the PFS for Phase 1 completed Cost of Phase 1: 1.8 EUR million • Self-Financing: 0.18 EUR million • Grants and/or Loans: Not yet secured • Funds not Secured: 1.62 EUR million • Population benefiting: 90,000 SR-18 Plant for briquette production in “Kolubara-Prerada” Progress: 0.3 MEUR from own financing sources. Tender documentation design process started. • Population benefiting: 100,000 Ministry of Environmental Protection of Republic of Serbia

10. Progress on financing priority projects from PEIP list SR- 11 Construction of sewage system in the town of Vladicin Han Progress: - Detailed Engineering Designs Completed - Submission for NIP funds • Project Costs: 5.5 EUR million • Self-financing: 0.5 EUR million • Not secured: 5 EUR million • Population served: 11,000 (up to 90,000 in regional projet) NB: SR-11 is part and precondition of a Regional Project worth 14.7 MEUR Ministry of Environmental Protection of Republic of Serbia

11. Progress on financing priority projects from PEIP list SR-15 (Population served: 80,000) Sustainable integrated municipal solid waste management system in Krusevac Progress: • Conceptual Design and PFS completed • New tariff plan (5 times 10% yearly increase) • Project Cost: 5.3 MEUR • Own Funds: 1.7 MEUR • Serbian Government Grant: 0.05 MEUR • Unsecured funds: 3.55 MEUR SR- 16 remediation of existing trash dump in Nis (Population served: 390,000) Progress: • Became part of Regional Project (Nis RLF) • New tariff plan (3 times 30% increase per year) • New funds (0.2 MEUR form City of Nis Budget) • Total cost: 6 MEUR • Self- financing: 0.2 MEUR • Not secured: 5.8 MEUR Ministry of Environmental Protection of Republic of Serbia

12. Progress on financing priority projects from PEIP list SR-17 Re-cultivation and upgrading of the existing landfill ”Badra“ in Svilajnac. (Population served: 38,000) Progress: new grants grant from the - Municipal Construction Fund (MCF) Svilajnac, - GTZ, - Fund For Environmental Protection (FEP). SR- 19Regional landfill – Valjevo (Population served: 380,000) Progress: EIA completed. Feasibility study completed. SR- 20Regional landfill – Zajecar (Population served: ) Progress: EIA completed. 610,000 EUR secured form the NIP Ministry of Environmental Protection of Republic of Serbia

13. Water Strategies and Laws • Old Water Management Strategy 1996 (Not EU compl.) • New Water Management Stretegy - is being drafted Will be submitted for adoption procedure in September • New Act on Waters (submitted for adoption) Adoption envisaged by the end of 2008 Ministry of Environmental Protection of Republic of Serbia

14. Status of Water infrastructure • Currently, only a few percent of the water is treated properly • Annual commitment required: • 850 million EUR • Existing sources of financing: • 260 million EUR(Source: WD) • Main reasons for inadequate investments: • low water tariffs(supplied water price should rise to 1EUR/m3) • Little communication with IFIs Ministry of Environmental Protection of Republic of Serbia

15. Waste Strategies and Laws • National Waste Management Strategy 2003 (EU compl.) Defines the: • Waste management hierarchy • Possible locations for regional waste management centers. • New Waste Management Act • Act on packaging and packaging waste • Are being drafted • Will be submitted for adoption procedure in September Ministry of Environmental Protection of Republic of Serbia

16. Status of Waste infrastructure • Currently, only one Sanitary Landfill in the country. • According to the 2003 WM Strategy, the infrastructure needs in Serbia are the following: • 29 regional sanitary landfills • 44 transfer stations • 17 recycling centres • 7 composting facilities • 4 incinerators • These numbers are only guiding, and they may be subject to change with WMS updates Ministry of Environmental Protection of Republic of Serbia

17. Thank you! Tanja Petrovic tanja.petrovic@ekoserb.sr.gov.yu Ministry of Environmental Protection of Republic of Serbia