A vision for the Bulgarian waste sector

National Waste Work ShopPlovdiv, 24 November 2008

Carsten RasmussenDeputy Head of Unit European Commission DG Regional PolicyCarsten.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

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

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)

BulgariaTechniquesConsidering:

costslimited fundingrelatively 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)