Water management planning

Estonian experience in the water management

Antti Tooming Water Department

Head of Project bureau Ministry of the Environment of Estonia

TOPICS

•  Water management planning •  Water companies and operating (water price) •  Investments to the water sector

Introduction

•  Main water issues in Estonia: •  Improving wastewater collection and

treatment •  Quality of drinking water •  Capture of losses from agriculture •  How to decrese the nutrient loads •  Hydro energy production in small

rivers •  Past pollution sites

Estonia is located in entirely in the catchment area of the Baltic Sea. The sea is a key to all water management issues.

Water Management planning

General, detailed and spatial plans of counties and

municipalities

River basin management plans

Public water supply and sewerage plans of

municipalities

Rural development plan

National environmental strategy 2030

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Responsible institutions and their functions

Ministry of Environment Water Department

Environmental Inspection

National Environmental Board Environmental

Investment Centre

Water Companies

Local Municipality

Permissions for water usage

Environmental Pollution charges

Environmental Information Centre

Investments

Water and Wastewater analyses

Control function Information

CF and National Investments

Drinking Water Directive Urban Waste Water Directive

Water Framework Directive

EU Cohesion Fund Investments

Government Budget

Investments

Local acts

Legislation

Legislation

Information

EUROPEAN UNION

Project evaluation

PROJECT Application

Estonian legistlation

•  Water Act •  Public water supply and sewerage act •  Public Health Act •  Regulation on requirements for drinking water quality and control,

methods for analyses •  Environmental Charges Act

Main Directives in water management sector

•  Water Framework Directive (WFD) –  Goal: to achieve and keep the good condition of surface and

ground water thru integrated water mangmnt, deadline 2015. •  Urban Wastewater Directive (UWWD)

–  Goal: to protect water and environment from the harmful influence of wastewater.

•  Drinking Water Directive (DWD) –  Goal: to protect health from the drinking water

decontamination and quarantee the quality of the drinking water.

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Deadlines and targets Urban Wastewater Directive (UWWD): •  To guarantee the collecting and purifying of wastewater:

–  WWCA pollution load over 10 000 pe at the end of 2009 –  WWCA pollution load 2000 – 10 000 pe at the end of 2010

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Current situation

–  In 2011 90% of residents in wastewater collection areas (WWCA) over 2000 pe are connected with common wastewater system (average 80%).

–  The goal at the end of 2013 is to collect and purify 100% of wastewater in WWCA with pollution load over 2000 pe.

–  In 2011 70% of WWTP in WWCA over 2000 pe correspond to the legislation (average 60%).

–  The goal at the end of 2013 is that 100% of WWTP work according to legislation.

Current status of wastewater management

•  Estonia has approximately 730 wastewater treatments plants (WWTP): –  49 WWTP over 2 000 pe (70% are in compliance) –  680 WWTP under 2000 pe, (approx. 70% 200-300 pe) 50% are in

compliance; –  500 wastewater collection areas:

•  59 over 2000 pe •  441 under 2000 pe

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Deadlines and targets Drinking Water Directive (DWD) •  To guarantee the drinking water quality:

– Drinking water systems providing water over 2 000 clients at the end of 2008 – Drinking water systems providing water over 50-1999 clients at the end of 2013

Targets: –  In 2010 80% of clients are provided with drinking water which

correspond the quality standards. The goal at the end of 2013 is to quarantee drinking water quality for 100% of connected users.

–  In 2010 87% of the residents connected with central drinking water systems (the rest private wells). The goal for 2013 is to quarantee the common drinking water connection for 90% of residents.

General condition of water supply

1165 water suppliers: –  52 with more than 2000

consumers •  7 (13%) do not comply

with the requirements –  1113 with less than 2000

consumers •  364 (33%) do not

comply with the requirements

Only 2 of them use surface water for supply (Tallinn, Narva - 35,5% of users),

The others are groundwater supplies (64,5% of users)

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Drinking water

Collecting environmental charges •  Charges for rights to use natural resources and pollution

charges (abstraction of water, discharge to water (higher when non-confirmity)

•  50% to the state budget, 50% to the municipality budget •  Effective as environmental protection instrument and

environmental investments have increase because the charges are high;

Using the collected incomes •  Charges collected to the state budget go back to the

environment protection investments thru Environmental Investment Centre Environmental Program (states primary measure).

•  Charges collected to the municipalities are not earmarked for the environment

Dynamics of pollution charges

Water Companies and infrastructure maintanance

Local municipalities – management of drinking water and wastewater systems is a responsibility of the local municipalities according to the law – public water supply and sewerage plans (12 years) – development and investments planning, agglomerations.

Water Companies   direct implementation of the water management, maintenance of the infrastructure, investments to the systems.   approximately 250 water companies   Mainly municipal owned with 1 big exeption (biggest city Tallinn)   Water-company and its operation area must by approved by local municipality

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Regional water companies

Good example – 2004 - 2006 EU financial period

•  Development of regional water companies by the Ministry of the Environment to implement the EU Cohesion Fund water infrastructure projects (total amount 130 MEUR) and future sustainable management of the systems.

•  Total of 8 regional water companies with 69 municipalities

•  Local municipalities have bundled themselves as shareholders of water company, which operates in one whole region

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Regional water companies

Key points: •  All participating local municipalities became shareholders of the

company; •  The company will act as the beneficiary for the municipalities

and will commission all the works of the EU project; •  The company will acquire that all water and wastewater

infrastructures in the area will belong to the company. •  Owner and operator of the systems in the future; •  Overall decrease of operational expenses as one company has

considerably smaller overhead expenses; •  One water price for all the clients.

The price of water

•  From 1995 an Estonian Act on Water Supply and Sewage by which the price for water service must guarantee the sustainability of water infrastructure, which means it has to be cost based.

•  Polluter pays principle •  Price shouldn’t be more then 4% of the household net income per

month (currently 1,5-2%; 2-2,5 euros) •  Until now competence of local municipalities to set the price for

water. •  Thus, water price was often a political rather than sustainable

instrument and resulted in unmaintained systems.

The price of water

Controlling the water price

  In order to cover the costs through the price of water, but also make the water price transparent for water users, we have established an additional, so called state water price control mechanism from 2011.

  Before establishing a water price, providers of water service (serving more than 2000 inhabitants) need to harmonize the price with the Competition Board.

  The Competition Board monitors the right basis for water price calculation, meaning that both the cost of providing water service and environmental costs have been covered.

 These are the means for ensuring that the investments made are sustainable and the existing water companies will be able to further operate and develop already without additional support.

 No more an political instrument.

Investments

Financing –  1990-1995 almost only foreign grants –  1995-2004 - bilateral and multilateral agreements to provide

grants to certain objects, pre-accession EU funds (Phare, ISPA) –  Since 2004 - Governmental support based on the state

investment program, Environmental Investment Centre, local budgets

–  Since 2004 - EU Cohesion Fund periods 2004-2006 and 2007-2013

–  Financing needs are always higher than finances available

•  Three main directions: –  Investments in common water and wastewater infrastructure; –  Investments for achieving better condition of surface water

bodies (fish passes); –  Investments for elimination past pollution.

•  These three directions are financed by the: –  EU Cohesion Fund period 2007-2013; –  EIC National Environmental Program; –  Water companies and municipalities own finances.

Current investments in water sector:

Current investments

Cohesion Fund 2007-2013 water infrastructure projects – Total amount 511 MEUR, 72 projects financed, 3 open calls – Implementation 2009-2014 – Beneficiaries water companies (average co-finance 25%) – Financing according to the cost benefit analyses to guarantee

the sustainability of the projects and future maintenance; – Project evaluation and financial decisions by the Environmental

Investment Centre (Implementing Agency).

Problems – Problems with co-financing by the water companies and

municipalities (resolved with the state loan from European Investment Bank). – Problems with the lack of experience of the beneficiaries. – Problems with price increase of the construction sector.

Environmental Investment Center Water Program • Funds come from the environmental charges • 5 sub-programs: water and wastewater infrastructure, surface

waters, past pollution, TA program • Yearly amount of 20 MEUR, 2 open calls • Applicants are mainly local municipalities, NGO, water

companies • Focus is on smaller projects (max amount of 1 MEUR).

Water Companies and municipalities finances • Smaller scale projects and investments for improvement of the

systems • Yearly amount of 20-25 MEUR • Will increase in the future with the water price increase

Current investments

Investments for improving status of the surface water bodies (building of fish passes) and elimination of past pollution sites.

Total amount 38 MEUR; Prepared by the Ministry and

implemented by the EIC

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Thank You for attention!

Antti Tooming Water Department

Head of Project bureau Ministry of Environment Phone: +372 626 2852 antti.tooming@envir.ee