MANAGEMENT AND MANAGEMENT AND

DEVELOPMENT STRATEGY FOR DEVELOPMENT STRATEGY FOR

WATER SUPPLY AND WATER SUPPLY AND

SEWARAGE SECTOR IN THE SEWARAGE SECTOR IN THE

REPUBLIC OF BULGARIAREPUBLIC OF BULGARIA

Water resourcesWater resources

General provisionsGeneral provisionsGround water resources – 70% out of the total water Ground water resources – 70% out of the total water resourceresourceUnderground water resources – 30%Underground water resources – 30% out of the water out of the water resourceresourceQuality of the Quality of the water resources water resources Utilization of the water resources Utilization of the water resources

The annual average water consumption on the country is estimated at The annual average water consumption on the country is estimated at approximately 10-12 billion mapproximately 10-12 billion m33 per year. For the various branches of per year. For the various branches of economy it is divided as follows:economy it is divided as follows:

drinking water supply drinking water supply - 8-10 %- 8-10 % irrigationirrigation - 5-35 %- 5-35 % industrial water supplyindustrial water supply - 20-26 %- 20-26 %

hydropowerhydropower - 15-35 %- 15-35 %

For water supply of the settlements 11 dams are used:For water supply of the settlements 11 dams are used:

№ Dam Main settlement supplied with water

Total volume of resservoir /mln.m3/

1 Hristo Smirnenski

Gabrovo 18,7

2 Jovkovtsi Veliko Tarnovo 92,2 3 Borovitsa Kardjali 27,3 4 Asenovets Sliven 28,2 5 Kamchia Burgas and Varna 228,5 6 Srechenska bara Montana and Vratsa 16,5 7 Jasna poljana Southern Black Sea 34,7 8 Novo

Panicherovo Southern Black Sea 1,8

9 Studena Pernik 25,2 10 Iskar Sofia 670 11 Beli Iskar Sofia 15,3

яз. Среченска бара

яз. Бебреш

яз. Искър

яз. Бели Искър

яз. Боровица

яз. Тракиец

яз. Младеж

яз. Индже войвода

яз. Камчия

яз. Асеновец

яз. Братан

яз. Ястребино

яз. Йовковцияз. Нейковци

яз. Хр.Смирненски

яз. Бяла

яз. Луда Яна яз. Черешка

яз. Черни Осъм

яз. Тича

яз. Ново паничарево

яз. Ясна поляна

яз. Джебел

яз. Студена

яз. Раянци

яз. Кюстендиляз. Тополница

яз. Дяково

яз. Ракочевица

яз. Сатовча

яз. Пловдивцияз. Петрич

яз. Красава

Тетевен

Ловеч

Плевен

Свищов

Габрово Трявна

Сливен

КотелБратан

СтокитеТвърдица

Елена

Преслав

Камчия

ТърговищеВарна

Бургас

Несебър

Бата

Ахелой

Малко търново

Ясна поляна

Ямбол

Хасково Харманли

Димитровград

Кърджали

Шумен

Разград

Силистра

Русе

Бабово

В.Търново

Пирдоп Сопот

Ботевград

КарловоКалофер

ПанагюрищеСтрелча

Пловдив

Батак

Чирпан

Пазарджик

Велинград

СмолянГоце Делчев

Сандански

Благоевград

ДупницаКюстендил

Самоков

Перник

София

Мадан

Враца

Монтана

Dams in operationDams in the process of constructionDams under design

Dams used for water supplyDams used for water supply

Златица

Тетевен

Ловеч

Плевен

Свищов

Габрово Трявна

Сливен

КотелБратан

СтокитеТвърдица

Ш ивачево

Елена

Преслав

Камчия

ТърговищеВарна

Бургас

Несебър

Бата

Калово

Ахелой

Приморско

Малко търново

Ясна поляна

Ямбол

Хасково Харманли

Димитровград

Кърджали

Ш умен

Разград

Силистра

Русе

Бабово

В.Търново

ПирдопАнтон

Сопот

Правец

ЕтрополеБотевград

Златна Панега

КарловоКалоф ер

ПанагюрищеСтрелча

Пловдив

Храбрино

БатакПерущ ица

Куртово Конаре

Чирпан

Пазарджик

Велинград

СмолянГоце Делчев

Сандански

Петрич

Благоевград Семково

ДупницаБобов дол

Кюстендил

Бистрица

Рударци

Самоков

Радуил

Перник

Брезник

Искрец

Соф ия

Мадан

Челопеч

ВрацаМездра

Люти брод

Монтана

Зидарово

Рила

Лобош

Карта на ПСПВ в експлоатация

Drinking water

Map of the Drinking Water Purification Plants in operation

Sewerage Networks and Waste Water Treatment in the Sewerage Networks and Waste Water Treatment in the Settlements Settlements

Constructed sewerage network and external collectors Constructed sewerage network and external collectors - 9 013 кm- 9 013 кm

The share of the towns provided with the sewerage network is 70,2%, and the share of the The share of the towns provided with the sewerage network is 70,2%, and the share of the

villages - 2,1%.villages - 2,1%.

The percentage of the population provided with access to the sewerage network The percentage of the population provided with access to the sewerage network - 46%.- 46%.

53 53 Waste Water Treatment Plants have been constructed and placed in service bWaste Water Treatment Plants have been constructed and placed in service by the end of y the end of

2001. 39 of them work with biological treatment while the rest 13 only with mechanical 2001. 39 of them work with biological treatment while the rest 13 only with mechanical

treatment of the water. Those treatment of the water. Those Treatment Plants serve 63 settlements where 35,7% of the Treatment Plants serve 63 settlements where 35,7% of the

population live.population live.

INSTITUTIONAL ORGANIZATION OF THE WATER SUPPLY AND SEWERAGE SECTORINSTITUTIONAL ORGANIZATION OF THE WATER SUPPLY AND SEWERAGE SECTOR

MRDPWMRDPW

Water Supply and Sewerage IMPLEMENTING AGENCY

STATE ENTERPRICE IN CHARGE WITH THE WATER SUPPLY AND

SEWERAGE ACTIVITIES

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Regional Inspection Bodies on Environment

and Waters

State Regulatory Commission

Hygiene epidemic

Inspection body

MOEW

Basin Directorate

s

MUNICI-PALITIES

OPERATORSOPERATORS

REGULATORY REGULATORY BODIESBODIES

Institutional Organization and Existing Forms of Institutional Organization and Existing Forms of

Management in Water Supply and SewerageManagement in Water Supply and Sewerage

Shared ownership100% 51% state ownwership 100%state ownership 49% municipal municipal

11 BlagoevgardBlagoevgard VarnaVarna BatakBatak22 BurgasBurgas VratzaVratza BelovoBelovo33 VidinVidin GabrovoGabrovo BerkovitsaBerkovitsa44 DobrichDobrich DimitrovgradDimitrovgrad BotevgradBotevgrad55 PazardjikPazardjik IsperihIsperih BratsigovoBratsigovo66 PlevenPleven KardjaliKardjali BreznikBreznik77 PlovdivPlovdiv KjustendilKjustendil VelingradVelingrad88 RazgradRazgrad LovechLovech DupnitsaDupnitsa99 Smolyan Smolyan MontanaMontana KresnaKresna1010 Sofia-regionSofia-region PernikPernik KovachevtsiKovachevtsi1111 Stara ZagoraStara Zagora RusseRusse KubratKubrat1212 HaskovoHaskovo SilistraSilistra PanagyurishtePanagyurishte1313 JambolJambol SlivenSliven PetrichPetrich1414 TargovishteTargovishte PeshteraPeshtera1515 ShumenShumen RakitovoRakitovo1616 Veliko TarnovoVeliko Tarnovo SandanskiSandanski1717 SvishtovSvishtov1818 SevlievoSevlievo1919 Sofia-city - concessionSofia-city - concession2020 StrelchaStrelcha2121 TroyanTroyan

MAIN CONCLUSIONS ON THE STATUS OF THE WATER SUPPLY AND SEWERAGE

The water resources are sufficient for normal water supply of the settlements in case The water resources are sufficient for normal water supply of the settlements in case

they are properly managed and effectively utilized. they are properly managed and effectively utilized.

The water supply networks are obsolete and depreciated with high level of water loses. The water supply networks are obsolete and depreciated with high level of water loses.

The number of settlements which are not supplies with water is too low. The number of settlements which are not supplies with water is too low.

Lack of enough number of regulatory annual and multi-annual equalizersLack of enough number of regulatory annual and multi-annual equalizers

67% of the towns are provided with sewerage networks. Around 20% need reconstruction 67% of the towns are provided with sewerage networks. Around 20% need reconstruction

and modernization.and modernization.

There is a need of construction of a great number of sewerage networks and waste water There is a need of construction of a great number of sewerage networks and waste water

treatment plants.treatment plants.

The Commercial Water Supply and Sewerage Companies work not having in place the The Commercial Water Supply and Sewerage Companies work not having in place the

National Strategy for the Development and Management of the Sector. National Strategy for the Development and Management of the Sector.

SWOTSWOT ANALYSIS ANALYSIS

Strong sidesStrong sides The provided services are of primary The provided services are of primary

importance to all consumersimportance to all consumers..

Activities in water supply and sewerage Activities in water supply and sewerage belong to belong to the “natural monopolies”the “natural monopolies”

there are established management there are established management structures and the related facilities. structures and the related facilities.

Over Over 98,5% of the population uses water 98,5% of the population uses water from water supply systems.from water supply systems.

The sector is considered a priority one and The sector is considered a priority one and it will receive significant funds from the EU. it will receive significant funds from the EU.

The country has available enough water The country has available enough water resources so that to meet the needs of the resources so that to meet the needs of the population for drinking water.population for drinking water.

In the sector work experienced and In the sector work experienced and competent professionals in the field of water competent professionals in the field of water supply and sewerage. supply and sewerage.

Developm

ent leveragesD

evelopment leverages

OpportunitiesOpportunities There is a potential for the absorption of a There is a potential for the absorption of a

great amount of financial resources for great amount of financial resources for infrastructure improvement.infrastructure improvement.

Financial interest is shown by international Financial interest is shown by international financial institutions.financial institutions.

Some internationally recognized operators Some internationally recognized operators have expressed interest to participate in services have expressed interest to participate in services management, and they are ready to make management, and they are ready to make significant investments for improvement of the significant investments for improvement of the quality of water supply and sewerage services vis quality of water supply and sewerage services vis concession or other forms of public-private concession or other forms of public-private

partnership.partnership.

Weak sides Weak sides depreciated water supply networksdepreciated water supply networks..

High level of water loses – over 60%.High level of water loses – over 60%.

Low level of collection of the owned Low level of collection of the owned payments.payments.

Low level of construction of the Low level of construction of the sewerage networks.sewerage networks.

Necessity of construction of a large Necessity of construction of a large number of number of Waste Water Treatment Waste Water Treatment PlantsPlants..

Necessity of significant investments.Necessity of significant investments.

Low level of income if the population. Low level of income if the population. O

bstacles to overcome

Obstacles to overcom

e

ThreatsThreatsHigh economic loses due to high level of High economic loses due to high level of

water loses.water loses.

Low potential of municipalities and the Low potential of municipalities and the state to invest in infrastructure.state to invest in infrastructure.

Legislation developing slowly and in a Legislation developing slowly and in a complex waycomplex way..

Lack of training and re-training programs Lack of training and re-training programs designed for the professionals employed in designed for the professionals employed in the sector.the sector.

Demographic problems related with the Demographic problems related with the reduction of consumption.reduction of consumption.

Restructuring of economy related with the Restructuring of economy related with the

reduction of water consumption.reduction of water consumption.

SWOTSWOT ANALYSIS ANALYSIS

ADVANTAGES AND DISADVANTAGES OF MANAGEMENT OPTIONS

OptionOption AdvantagesAdvantages DisadvantagesDisadvantages

Service contarctService contarct аа.It is applied to solve specific problems when.It is applied to solve specific problems when:: a good a good management is already achieved; decrease of loses; management is already achieved; decrease of loses; billing; management of billing; management of Waste Water Treatment Plants , Waste Water Treatment Plants , etc. etc.

а.It can not solve the problems of the non-а.It can not solve the problems of the non-effective managementeffective managementb.It can not improve the bad repayment of b.It can not improve the bad repayment of expendituresexpendituresc.It is concluded for a short termc.It is concluded for a short term

Management contractManagement contract а.They can quickly improve the technical capacity and а.They can quickly improve the technical capacity and financial indicators financial indicators

b.A good effectiveness is achieved for specific tasksb.A good effectiveness is achieved for specific tasks

c.The responsibility for operation and maintenance is c.The responsibility for operation and maintenance is transferred to the operatortransferred to the operator

а.Short term of effect а.Short term of effect

b.It does not ensure capital investmentsb.It does not ensure capital investments

LeaseLease а.Via it a good profit is achieved if the management is а.Via it a good profit is achieved if the management is improvedimproved

b.b.The operator is responsible for the effectiveness of The operator is responsible for the effectiveness of operationoperation

c.c.Longer operational periodLonger operational period

а. It does not ensure investmentsа. It does not ensure investments

b. For planning of capital costs b. For planning of capital costs responsible remains the ownerresponsible remains the owner

Concession and Concession and ВОТ*ВОТ*

а. а. The whole activity is transferred to the operatorThe whole activity is transferred to the operator

b.Improved is the effectiveness of the managementb.Improved is the effectiveness of the management

c.Improved are the qualities of servicesc.Improved are the qualities of services

d.Long-run contracts - over 25 years d.Long-run contracts - over 25 years

e.It Ensures investments for long-run developmente.It Ensures investments for long-run development

f.The new facilities under construction and the f.The new facilities under construction and the improved existing facilities remain for the owner of the improved existing facilities remain for the owner of the infrastructureinfrastructure

а. а. IIf the management during the contract f the management during the contract period if not good, then the risk is higher.period if not good, then the risk is higher.

ADVANTAGES AND DISADVANTAGES OF THE MANAGEMENT OPTIONS

OptionOption AdvantagesAdvantages Disadvantages Disadvantages

Joint companiesJoint companies а. Private sector participation is а. Private sector participation is restricted to the extent as identified in the restricted to the extent as identified in the contractcontract . .

b. If there is a good public-private b. If there is a good public-private partnership, an increase of the partnership, an increase of the effectiveness and improvement of the effectiveness and improvement of the management could be achieved.management could be achieved.

c. They are of long standing naturec. They are of long standing nature

d. Capital investments are ensured for d. Capital investments are ensured for the development of infrastructurethe development of infrastructure

а. а. A part of the responsibilities and risks A part of the responsibilities and risks are retained by the ownerare retained by the owner

b. In some cases the owner and the b. In some cases the owner and the regulatory body are the same state body regulatory body are the same state body which make the management more which make the management more complicatedcomplicated

PrivatizationPrivatization а. All responsibilities are transferred to а. All responsibilities are transferred to the operatorthe operator

b. b. Effectiveness and management are Effectiveness and management are improvedimproved

а. The sell of assets is carried out.а. The sell of assets is carried out.

b. A very high extent of regulation is b. A very high extent of regulation is requiredrequired

c. Risk for the protection of public c. Risk for the protection of public interestsinterests

PROPOSAL FOR MANAGEMENT MODELS OF THE WATER SUPPLY AND SEWERAGE WITH PRIVATE SECTOR PARTICPATION

Service contracts

Management contracts

Concession contracts and ВОТ

Establishment of joint management companies while applying the said models

SOCIAL POLICYSOCIAL POLICY

Characteristics of the employment in water sector

Over 16 000 people are employed in the sector

Stability of labour agreements

Low level of outstanding payments to the employees

Transparency of public finances and insurance system

SOCIAL POLICYSOCIAL POLICY

Social factors that shall be taken into account during the process of restructuring

specific features of the regional labour market and the needs of the specific features of the regional labour market and the needs of the related operators of the water supply and sewerage systems;related operators of the water supply and sewerage systems;

the unemployment levels and defined by the related operator short-the unemployment levels and defined by the related operator short-term development perspectives;term development perspectives;

the possibilities of the related operators to implement adequate the possibilities of the related operators to implement adequate programs for qualification and re-training of the available labour programs for qualification and re-training of the available labour force;force;

the possibilities of the national employment programs and the possibilities of the national employment programs and matching the interests of the employed staff and of the investors in matching the interests of the employed staff and of the investors in water supply systems with the interests of their owners;water supply systems with the interests of their owners;

WATER SUPPLY AND SEWERAGE REGULATION

Economic regulationEconomic regulation Commission on regulation of water services Commission on regulation of water services

• levels and standards of the serviceslevels and standards of the services

Quality of drinking waterQuality of drinking water Chemical-epidemic inspections within Ministry of HealthChemical-epidemic inspections within Ministry of Health

Quality of ground and underground water Quality of ground and underground water Regional inspections for protection of environment and watersRegional inspections for protection of environment and waters

INVESTMENT POLICY, PROGRAMMES AND PROJECTS

Necessity of establishment of investment fund or state company for infrastructure Necessity of establishment of investment fund or state company for infrastructure projects in water supply and sewerageprojects in water supply and sewerage Provision of capital investments via charges included in the price of the services and Provision of capital investments via charges included in the price of the services and

dedicated to rehabilitation and completion of construction of the water supply and dedicated to rehabilitation and completion of construction of the water supply and sewerage networkssewerage networks

Co-financing of international projectsCo-financing of international projects

Investment programsInvestment programs

National program for construction of drinking water purification plants and water supply National program for construction of drinking water purification plants and water supply projectsprojects

Program for measures required in cases when a trend towards a dry season is observed Program for measures required in cases when a trend towards a dry season is observed - prepared and adopted in 2001 - prepared and adopted in 2001

National program for priority construction of urban waste water treatment plants in National program for priority construction of urban waste water treatment plants in settlements with over 10.000 inhabitantssettlements with over 10.000 inhabitants

National program for priority construction of urban waste water treatment plants in National program for priority construction of urban waste water treatment plants in settlements with over 2.000 inhabitantssettlements with over 2.000 inhabitants

INVESTMENT POLICY, PROGRAMMES AND PROJECTS

National program for construction of sewerage systems in settlements with National program for construction of sewerage systems in settlements with

over 10.000 inhabitantsover 10.000 inhabitants

National program for construction of sewerage systems in settlements with National program for construction of sewerage systems in settlements with

over 2.000 inhabitantsover 2.000 inhabitants

Programs for management of water loses in water supply networks Programs for management of water loses in water supply networks Projects for active control over the water loses Projects for active control over the water loses Improvement of the operation and management of water supply and sewerage Improvement of the operation and management of water supply and sewerage

networksnetworks Completion of water metering activities Completion of water metering activities Reconstruction of water supply networksReconstruction of water supply networks

№ Purpose of Investments

Investments needed

Responsible

institutions

Implementation terms

Possible investment

sources

/ million evro./ Rehabilitatio

n of water supply networks and decrease of water loses

3 376

MRDPW and

municipalities

2002-2015 Concessions, accession funds (ISPA), National

budget

Construction of new and completion of already started facilities

1 676 MRDPW and

municipalities

2002-2015 ВОТ, concessions, National Budget

Construction of sewerage networks

1 100

MOEW, MRDPW

and municipaliti

es

In compliance with the National

Programme on sewerage networks

ISPA, National Budget

Construction of Waste Water Treatment Plans – I phase

636 MOEW and municipaliti

es

In compliance with the National

Programme on Waste Water

Treatment Plants

ISPA, National Budget

INVESTMENTS NEEDED

INDICATORS FOR MONITORING AND EVALUATION OF THE ACTION PLANINDICATORS FOR MONITORING AND EVALUATION OF THE ACTION PLANDevelopment objective Indicators for monitoring Measurement

unit Year of 2003

Year of 2015

Water loses million m3

Water and Sewerage Companies with water loses >30%

number

Personnel in Water and Sewerage Companies servicing 1000 consumers

number

1. Provision of conditions for effective management of the sector

Decrease of water loses million m3

Water and Sewerage Companies with private sector participation

number 2. Provision of conditions for private sector participation taking into account public interests Volume of investments

thousand leva

3. Application of a structural approach of management, taking into account regional planning and ensuring economies of scale

Water and Sewerage Companies

number

Population with central water supply

%

Population subjected to the regime of water supply comparing the total number of population

%

Population using drinking water that does not meet the requirements

%

Population with access to sewerage networks

%

4. Achievement of quality of water and sewerage services that meets the requirements of the legislation

Population with access to Urban Waste Water Treatments Plants

%