INTEGRATED SYSTEM FOR THE REHABILITATION OF WATER SUPPLY AND SEWAGE SYSTEMS, OF DRINKING WATER TREATMENT PLANTS AND WASTEWATER TREATMENT PLANTS IN TOWNS WITH A POPULATION UP TO 50,000 INHABITANTS

PHASE I

Legislative framework:

• Framework Loan Agreement no. F/P 1568/2006 between Romania and the Council of Europe Development Bank;
• Law no. 224/2007, with subsequent amendments and completions, on the ratification of the Framework Loan Agreement between Romania and the Council of Europe Development Bank;
• Subsidiary loan agreement no.339/2007;
• Addendum no. 1 of 02.04.2010 to the Subsidiary loan agreement no.339/2007;
• Government Decision no. 493/25.05.2011 approving the amendment, agreed through the exchange of letters signed in Bucharest on 3 March 2011 and in Paris on 5 April 2011 between the Government of Romania and the Council of Europe Development Bank, to the Framework Loan Agreement between Romania and the Council of Europe Development Bank, destined to finance the project Integrated system for the rehabilitation of water supply and sewage systems, of drinking water treatment plants and wastewater treatment plants in towns with a population up to 50,000 inhabitants.

Implementation mode:

• Ministry of Regional Development and Tourism - MRDT through:
• Project Coordination Unit (PCU);
• Implementing Agency C.N.I. - S.A., through the Project Management Unit (PMU).

Project presentation:
The project proposes a zonal approach, taking into consideration localities with a population up to 50,000 people in 16 counties of the country, accompanied by small neighbouring localities of the respective agglomeration.

Project aim:

• comply with the requirements of Directive 98/83/EC on the quality of water intended for human consumption and Directive 91/271/EEC concerning urban waste water treatment, as amended by Directive 98/15/CEE;
• combat cross-border pollution, by developing environmental infrastructure (wastewater treatment plants and sewage systems) in the hydrographic basins of the: Cris rivers, Somes - Tisza, Mures, Olt, Prut, Siret, Jiu, Arges - Vedea, Buzau – Ialomita, starting from with their upstream area, and the Dobrudja – Seaside Hydrographic Basin of the Black Sea;
• improve the quality of drinking water supplied to the population, including in localities where it presents major nonconformities;
• ensure continuous supply of quality drinking water to the localities included in the project;
• mitigate network losses, reduce consumption of energy and chemical reagents used in water treatment, which will result in lower costs of the drinking water supplied and billed to consumers;
• reduce soil and groundwater pollution, reduce receptor surface water pollution.

To achieve these changes, in about 66 localities included in the first phase of the project, partial financing of the following activities will be provided:

• Rehabilitation, expansion or creation of new drinking water distribution networks;
• Rehabilitation of water treatment plants or of drinking water sources;
• Rehabilitation, expansion or creation of new sewage networks;
• Rehabilitation of wastewater treatment plants.

The main selection criteria used in the first stage of the Project, approved by the CEB and the Ministry of Environment and Forests were:

• observe the obligations undertaken in the accession process (compliance years);
• combat cross-border pollution;
• improve drinking water quality in localities where water presents major nonconformities;
• the locations proposed for investment in wastewater collection and treatment to be situated starting from upstream;
• the proposed investments shall not be included in other financing schemes;
• improve drinking water supply in terms of continuity;
• improve drinking water supply in terms of quality;
• reduce water losses in the network;
• reduce wastewater losses through exfiltrations from the sewage network;
• reduce the impact of wastewater losses on the soil around sewage networks and on the groundwater currently affected by these wastewater exfiltrations;
• reduce maintenance costs for water and wastewater treatment plants, water and sewage networks;
• development possibilities of the tourist areas;
• reduce operating costs needed to treat water for drinking, by reducing reagent costs and reducing maintenance costs for machinery and equipment;
• possibility to co-finance investments from the budget of territorial administrative authorities;
• possibility to provide drinking water, from the same treatment plant, to belonging and neighboring localities;
• possibility to collect wastewater from belonging and neighboring localities and treat them in the same plant;
• possibility to transfer the right to provide operating services to licensed operators, at the end of the investment.

The localities included in the Preoject were analysed, in order to avoid double financing, together with the Ministry of Environment and Forests, the county councils and the local councils involved. These localities can be identified on the maps below:

Bihor (AleÅŸd, Marghita, Salonta, Åžtei)	Bistrita Nãsãud (Beclean, CoÅŸbuc, Ilva Micã, Livezile, Lunca Ilvei, Nãsãud, RebriÅŸoara, Salva, Sîngeorz Bãi)	BraÅŸov (Predeal)
Cãlãrasi (CãlãraÅŸi, Lehliu Garã ÅŸi OlteniÅ£a)	ConstanÅ£a (Basarabi, Cernavodã, Eforie, HârÅŸova, Medgidia, Nãvodari, Negru Vodã, Techirghiol)	Covasna (Covasna)
DâmboviÅ£a (Fieni, GãeÅŸti, Moreni, Pucioasa, Titu)	Gorj (BumbeÅŸti-Jiu, Motru, Novaci, Rovinari, Târgu CãrbuneÅŸti, Turceni)	Harghita (Bãile TuÅŸnad, Borsec, Cristuru Secuiesc, Gheorghieni, Miercurea Ciuc, Odorheiul Secuiesc, TopliÅ£a)
IalomiÅ£a (Amara)	Ilfov (Snagov)	MureÅŸ (Corunca, Ernei, Fântânele, Miercurea Nirajului, Reghin, SãrmaÅŸu, SighiÅŸoara, Sâncraiu de MureÅŸ, Sângeorgiu de MureÅŸ, Sovata)
Prahova (Azuga, BuÅŸteni)	Suceava (Câmpulung Moldovenesc)	Tulcea (Babadag, Isaccea, Mãcin, Sulina)
	Vaslui (HuÅŸi, Murgeni, NegreÅŸti)

The first stage of the Project is implemented during the period 2007 - 2014 and financing is made under the Framework Loan Agreement between Romania and the Council of Europe Development Bank, and provides a total value of 208.1 million euros.

Total Value: 208.1 million euros, of which:

• CEB - 160.1 million euros
• State Budget - 8.0 million euros
• Local Authorities - 40.0 million euros

The total value of the first phase of the project, mentioned above, increases with the value of the fees and taxes relating to it, due and payable on the territory of Romania.

PHASE II

For the second phase of the Project, at the Government meeting of 15 July 2009, a Memorandum was approved on the theme Approval to initiate the negotiation of the Framework Loan Agreement to be concluded between Romania and the Council of Europe Development Bank, worth 179.9 million euros, to fund phase II of the project ”Integrated system for the rehabilitation of water supply and sewage systems, of drinking water treatment plants and wastewater treatment plants in towns with a population up to 50,000 inhabitants.

The subprojects that will benefit from partial financing in stage II of the Project will include water supply and sewage systems and drinking water and wastewater treatment plants.

The selection and prioritisation of the subprojects of phase II of the Project will take into account the regional Master Plans relating to the drinking water / wastewater infrastructure and will be correlated with them using the selection criteria of the first phase of the project. An analysis will also be conducted with the territorial administrative units and the Ministry of Environment and Forest, to avoid double financing.

The preparation, the negotiation with the Council of Europe Development Bank and the implementation of Phase II will be made in accordance with the financing limits of the annual budgets.

Total Value: 232.9 million euros, of which:

• CEB - 179.9 million euros
• State budget - 8.0 million euros
• Local Authorities - 45.0 million euros.

The total value of the second phase of the Project shall be increased by the amount of the fees and taxes relating to it, due and payable on the territory of Romania.

Contact person:
Name: Constanta PANA, Director, U.C.P.
Phone: 0372 144 071
E-mail: constanta.pana@mdrt.ro