Drinking water and urban waste water treatment development

1. Evaluation tasks 2013. ÖKO Zrt. Drinking water and urban waste water treatment development

2. Objectives-tasks • Performance regardingcompliancewithourderogationobligations • Directive 91/271/ECC concerningurbanwastewatertreatment • 98/83/EC on the quality of water intended for human consumption: assessment of compliancein Hungary • Wastewater management developmentdemandsexpectedto be transferredtothe 2014-2020 period. • Developmentdemandsto be financedfromthe 2014-2020 budgetthatfalloutsidethescope of derogationobligations (wastewater, drinkingwater). Time horizonforthesurvey: 2000-2013. Focuson EEOP projects.

3. Status of fulfilling wastewater derogation obligations

4. Performance: Wastewater EEOP projects.

5. Status of fulfillingwastewaterderogationobligations

6. Projects scheduled for the 2014-2020 period • According to the wastewater programme in effect, development projectsin some 154 agglomerations (with a load corresponding to 2 million PE) are expected to be postponed to the 2014-2020 period. • The survey will estimate development costs for the 2014-2020 period, from the specific costs of EEOP projects (HUF/PE, million HUF/agglomeration), for agglomeration classes and action types. • The development sources needed by the agglomerations not yet having joined the EEOP are estimated to exceed HUF 300 bn.

7. Accelerating the implementation of the wastewater programme • Wastewater collection and treatment projects have already been classified as priority investments to accelerate administrative procedures. • Connecting to the sewer network made legally compulsory. • Central intervention to boost the slow progress of projects aiming at improving water quality that are already in the implementation phase

8. Recommendations: Options to reduce estimated wastewater investment and operational costs Review of the geographical definition of agglomerations is recommended. In order to • detailed assessment of remaining tasks, • selecting efficient solutions (agglomeration borders within settlements, review of regional solutions) Spread of Individual wastewater system is recommended. In order to • Programme to promote individual solutions should be developed, • Establishment of the necessary legislative and institutional background. • Application criteria should be updated, for agglomerations above 2000 PE. • Regarding individual solutions as compulsory public service by the legislation Results: • cheaper service, lower fees, financially sustainable service. • Development demands may be reduced significantly, by as much as 20%.

9. Requirements of the drinking water Directive 3-level system of criteria: • Compliancewitheachcriterium of theDirective. • Derogationrequirements, deadlinessetinthe EU AccessionTreaty (2006 for boron, fluorine and nitrite; 2009 forarsenic). Accordingto 2010 data, thetotalnumber of impactedpopulation is 888 473 (365 settlements) • National Drinking Water Quality Improvement Programme (DWQIP). IntheProgramme, ammonium is a prioritysubstanceinadditiontothederogationparameters, withadeadline of 2009. AccordingtotheGovt. Decree, thetotalnumber of impactedpopulation is 2 251 401 (835 settlements).

10. What has been achieved? Drinking water EEOP projects.

11. What has been achieved? Drinking water EEOP projects • As a result of implemented DWQIP projects, a total number of 167 thousand people have access now to clean drinking water (mostly CF and EIOP projects). From the 167 thousand people, altogether 13 400 (8%) are impacted by EEOP projects. • According to the UMIS survey of 14 January 2013, the progress of implementing DWQIP projects has significantly improved. In the past almost 9 months, the number of projects with concluded grant contracts has increased by 32; the projects ready for implementation has grown by 29 (35%). • Each impacted settlement is included in the application system.

12. Estimating investment costs • The expected total sum of grant requests for improving the quality of drinking water in the framework of EEOPis estimated at around HUF 130 to 144 billion. • The total financial framework is HUF 131.17 bn. Some projects are expected to be postponed to the 2014-2020 period. • Bridge projects are also expected ( e.g. Békés County)

13. Accelerating the DWQIP since 2011.   • 100% financing of selfcontribution • Acceleratingadministrativeproceduresbyclassifyingdrinkingwaterqualityimprovementprojectsaspriorityinvestments. • Centralinterventiontoboosttheslowprogress of projectsaimingatimprovingwaterqualitythatarealreadyintheimplementationphase; coordinationbytheMinistryofDomesticAffairs • Decisionsshould be made within 30 days of submitting EEOP projects, • Monitoring projectsintheimplementationphasethatdonotrequireintervention, professionalaid, acceleratingadministrativeprocedures, • Temporarydrinkingwatersupplybytheportablewaterpurificationsystem (containers) of theMinistryofDefense (beforetheirdeployment: watersupplyfromtrucks) insettlementswherethe project is notexpectedto be finishedbythe end of 2013.

14. Recommendations: costs reduction opportunities • The development of large, cost-efficient waterworks and regional supply systems should be supported instead of small waterworks that require technological updating. • Results: cheaper service, lower fees, financially sustainable service. • Current situation: high fees, increasing receivables, inreasing number of customers with debt.

15. Thank you for your attention 2013. ÖKO ZRt.