Drinking water and urban waste water treatment

development

2013. ÖKO Zrt.2013. ÖKO Zrt.

Evaluation tasks

Objectives-tasks

• Performance regarding compliance with our derogation obligations– Directive 91/271/ECC concerning urban wastewater

treatment – 98/83/EC on the quality of water intended for

human consumption: assessment of compliance in Hungary

• Wastewater management development demands expected to be transferred to the 2014-2020 period.

• Development demands to be financed from the 2014-2020 budget that fall outside the scope of derogation obligations (wastewater, drinking water).

Time horizon for the survey: 2000-2013. Focus on EEOP projects.

Status of fulfilling wastewater derogation obligations

Performance: Wastewater EEOP projects.

StatusNo. of

projects

Net cost of projects,

million HUF

Support, million

HUF

Avg.rate of support

Finished 4 2 319 1 747 75,3%

Support awarded for implementation 201 459 275 381 320 83,0%

Submitted for implementation, in the evaluation phase 24 73 186 61 413 83,9%

Total 229 534 781 444 481 83,1%

Source: EEOP, Unifified Monitoring Information System (UMIS) 14 January 2013

Status of fulfilling wastewater derogation obligations

Projects scheduled for the 2014-2020 period

• According to the wastewater programme in effect, development projects in 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.

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

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%.

Requirements of the drinking water Directive

3-level system of criteria:

• Compliance with each criterium of the Directive.

• Derogation requirements, deadlines set in the EU Accession Treaty (2006 for boron, fluorine and nitrite; 2009 for arsenic). According to 2010 data, the total number of impacted population is 888 473 (365 settlements)

• National Drinking Water Quality Improvement Programme (DWQIP). In the Programme, ammonium is a priority substance in addition to the derogation parameters, with a deadline of 2009. According to the Govt. Decree, the total number of impacted population is 2 251 401 (835 settlements).

What has been achieved? Drinking water EEOP projects.

Status No. of

projects

Net cost of

projects, million

HUF

Support, million

HUF

Avg. rate of

support, %

Finished 6 1 007 891 88.5%

Support awarded for implementation

76 88 557 73 744 83.3%

Submitted for implementation, in the evaluation phase

30 35

464,7 30

224,8 85.2%

Total 112 125 028 104 860 83.9%

Source: EEOP, Unified Monitoring Information System (EMIR), 14 J anuary 2013

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.

Estimating investment costs

• The expected total sum of grant requests for improving the quality of drinking water in the framework of EEOP is 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)

Accelerating the DWQIP since 2011.  

• 100% financing of self contribution• Accelerating administrative procedures by classifying drinking

water quality improvement projects as priority investments.

• Central intervention to boost the slow progress of projects aiming at improving water quality that are already in the implementation phase; coordination by the Ministry of Domestic Affairs

• Decisions should be made within 30 days of submitting EEOP projects,

• Monitoring projects in the implementation phase that do not require intervention, professional aid, accelerating administrative procedures,

• Temporary drinking water supply by the portable water purification system (containers) of the Ministry of Defense (before their deployment: water supply from trucks) in settlements where the project is not expected to be finished by the end of 2013.

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.

Thank you for your attentionThank you for your attention

2013. ÖKO ZRt.2013. ÖKO ZRt.