180 likes | 275 Views
A vision for the Bulgarian waste sector. National Waste Work Shop Plovdiv, 24 November 2008 Carsten Rasmussen Deputy Head of Unit European Commission DG Regional Policy Carsten.Rasmussen@ec.europa.eu. Content. Requirements to a functional waste sector Caracteristics of EU waste systems
E N D
A vision for the Bulgarian waste sector National Waste Work Shop Plovdiv, 24 November 2008 Carsten Rasmussen Deputy Head of Unit European Commission DG Regional Policy Carsten.Rasmussen@ec.europa.eu
Content Requirements to a functional waste sector Caracteristics of EU waste systems Waste techniques • Incineration • Mechanical Biological Treatment • Refuse Derived Fuel • Landfilling State of play of the Bulgarian waste sector • Techniques • Waste organisation • Financing Conclusions and recommendations
Waste Techniques Choice of technique depends on financing and availability of potential land fill site Cost trend: Incineration Most costly • Costs
Caracteristics of EU Waste Systems • Waste reduction needed, preferably upstream • Variety of techniques available for waste treatment • Incineration • Mechanical Biological Treatment • Refuse Direved Fuel • Land filling • Systems partly revenue generating • Tariff financed (in Bulgaria: tax like)
Techniques:Incineration • Incineration most expensive, but attractive in densely populated areas • Energy recovery, yes, but high costs for environmental compatibility • Negative incentives to waste reduction
Techniques:Mechanical Biological Treatment • Attractive, as it allows to increase recycling and reduce land filling • But attention to workers’ health • Expensive, but modulable: Does everybody need a Rolls Royce?
Techniques:Refuse Derived Fuel • Attractive to avoid land filling • Linked to MBT • But expensive and dependant on incineration capacity (cement factories etc)
Waste techniquesLandfilling • Least expensive • Limited investments up front • Should be combined with some form of MBT
Bulgaria: State of Play • Conformity required as from accession • Waste regions • 7 conform • 7 en route • 7 to be prepared • Beyond Sofia, large part of the country de facto facing infringement procedure • Financing available: 363 million €, plus national co-financing
Bulgaria:Waste Organisation • Waste is municipal competence • Economies of scale available, hence trend towards multi-municipal co-operation • Need to avoid the Hungarian Cheese
Bulgaria: Waste Organisation (continued) • Based on our experience, we recommend a minimum of top down incentives: • Legal obligation to co-operate • Or, financial incentive, e.g. financing exclusively available to regional projects • For regional systems, need for sound cooperation organisation • E.g. holding company, owning assets • Need to protect co-operation structure from break up • financial commitment from municipalities to common organisation • Need to careful organisation of operations – private operators, public operating company • Great potential (and some risks) linked to Public Private Partnership models
Bulgaria:Financing • Need for sustainable system • Hence tariff setting must include operation and replacement • The EU financing is only available once • Don’t come back with new requests in 7 years! • Please note: No EU co-financing ever made in this sector in Slovakia • EU plus state financing not sufficient in this period • Scope for municipal co-financing • EIB and/or EBRD loans could be available
Bulgaria:Financing (continued) • Need to consider total financing needs up front • Recommend budgetary allocation to each waste region, depending on needs • 7 ,7,7 • Need for fair and transparent model • Note: Article 55 of the regulation cannot serve as a method to establish a fair and transparent national grant system
Bulgaria:Financing (continued) • Recommend model with some local financing • Co-financing could be modulated according to: • Density (natural economy of scale) and GDP (affordability)
BulgariaTechniques Considering: costs limited funding relatively low density of population Landfills with limited, but upgradable MBT seem the obvious choice
Conclusions and recommendations to Bulgaria • Projects elaborated based on regional budget allocations • Financing only available for regional projects • Land fill with source separation, limited but upgradable MBT realistic • EU, State, Municipal (EIB-EBRD loan financed) • Tariffs including operations, replacement (amortisation)