MANAGEMENTUL STRATEGIC AL SERVICIILOR COMUNITARE …MANAGEMENTUL STRATEGIC AL SERVICIILOR COMUNITARE...

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STRATEGIC MANAGEMENT OF ROMANIAN PUBLIC UTILITY SERVICES. REGIONALISATION ROLE IN ITS DEVELOPMENT MANAGEMENTUL STRATEGIC AL SERVICIILOR COMUNITARE DE UTILITĂŢI PUBLUCE DIN ROMÂNIA. ROLUL REGIONALIZĂRII ÎN DEZVOLTAREA ACESTORA Oana Matilda SABIE Oana Matilda SABIE Lector univ. dr., Facultatea de Management, Academia de Studii Economice din București E-mail: [email protected] Abstract Regionalisation is a continous need to ensure that all the cities can invest in mentaining and improving the infrastructure in order to have, to get quality services at EU standards. This aspect involves approving and implementing adecvate developing strategies and policies, oriented to fulfiling the real needs of the population, takeing into consideration that all the people should afford these services. Keywords: regionalisation (regional aproach), public utility services, investments, structural funds, operational programmes. JEL CODES: L95 Rezumat Regionalizarea reprezintă o nevoie permanentă de a se asigura faptul că toate oraşele pot investi în întreţinerea şi modernizarea infrastructurii lor cu scopul de a oferi servicii bune, capabile să atingă standardele UE. Acest lucru necesită adoptarea şi implementarea unori politici de dezvoltare elaborate corespunzător, concentrate pe satisfacerea nevoilor reale ale populaţiei, în cazul în care serviciile urmează a deveni accesibile tuturor. Cuvinte cheie: regionalizare, servicii comunitare de utilităţi publice, investiţii, fonduri structurale, programe operaţionale. Proceedings of the sixth “Administration and Public Management” International Conference

Transcript of MANAGEMENTUL STRATEGIC AL SERVICIILOR COMUNITARE …MANAGEMENTUL STRATEGIC AL SERVICIILOR COMUNITARE...

Page 1: MANAGEMENTUL STRATEGIC AL SERVICIILOR COMUNITARE …MANAGEMENTUL STRATEGIC AL SERVICIILOR COMUNITARE DE UTILITĂŢI PUBLUCE DIN ROMÂNIA. ROLUL ... Directive 98/83/EC on water quality

STRATEGIC MANAGEMENT OF ROMANIAN PUBLIC UTILITY SERVICES.

REGIONALISATION ROLE IN ITS DEVELOPMENT

MANAGEMENTUL STRATEGIC AL SERVICIILOR COMUNITARE

DE UTILITĂŢI PUBLUCE DIN ROMÂNIA. ROLUL REGIONALIZĂRII ÎN DEZVOLTAREA ACESTORA

Oana Matilda SABIE

Oana Matilda SABIE Lector univ. dr., Facultatea de Management, Academia de Studii Economice din București E-mail: [email protected]

Abstract

Regionalisation is a continous need to ensure that all the cities can invest in mentaining and improving the infrastructure in order to have, to get quality services at EU standards. This aspect involves approving and implementing adecvate developing strategies and policies, oriented to fulfiling the real needs of the population, takeing into consideration that all the people should afford these services.

Keywords: regionalisation (regional aproach), public utility services, investments, structural funds, operational programmes.

JEL CODES: L95

Rezumat Regionalizarea reprezintă o nevoie permanentă de a se asigura faptul că toate oraşele pot investi în întreţinerea şi modernizarea infrastructurii lor cu scopul de a oferi servicii bune, capabile să atingă standardele UE. Acest lucru necesită adoptarea şi implementarea unori politici de dezvoltare elaborate corespunzător, concentrate pe satisfacerea nevoilor reale ale populaţiei, în cazul în care serviciile urmează a deveni accesibile tuturor.

Cuvinte cheie: regionalizare, servicii comunitare de utilităţi publice, investiţii, fonduri structurale, programe operaţionale.

Proceedings of the sixth “Administration and

Public Management” International Conference

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SABIE Oana Matilda

STRATEGIC MANAGEMENT OF ROMANIAN PUBLIC UTILITY SERVICES. REGIONALISATION

ROLE IN ITS DEVELOPMENT

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1. INTRODUCTION

After a period of more than four decades of centralized administration, Romania decided to return to the

principle of local autonomy through decentralization, thus transferring concrete responsibilities of local

government, a principle reflected in the Constitution. One of these specific responsibilities set out in

local government law no. 215/2001, republished, government refers to the obligation to organize

effectively and appropriately to their operation of public service. Under this law, local governments have

the right to associate in order to develop effective public services of common / regional interest.

Public services can only be effective if they are supported by appropriate investment programs.

However, only 32 major municipalities (population over 100,000 inhabitants each) since 1990 have

benefited from capital investment programs for the rehabilitation of water supply and sewerage

infrastructure. Still, only a small part of the 276 cities in Romania (at the end of 2003) have benefited

from these programs. About 230 small and medium cities were not able to attract funds from

international financial institutions or from private operators.

Due to lack of funds, these cities have invested very little in the last 20 years to maintain and develop

their sewage and water infrastructure. For this reason the state of their networks it is very bad. Some of

the major problems in water services in small urban areas are:

Poor services of maintenance and operating;

High volume of water consumption due to unpaid network losses and low level for

collecting payments from consumers;

Lack of investment for the rehabilitation / extension of water and sewer infrastructure;

Lack of experienced personnel for promoting, managing and implementing large-scale

investments;

Inefficient management of operating costs, maintenance and human resources;

Ambiguity about the role and responsibilities of the institutions / authorities involved in the

management of public utilities;

Inadequate institutional framework.

In Romania, only 65% of the population is connected to both water and sewerage network, and over

71% of collected wastewater is untreated or insufficiently treated. Until recently, water and sewer

services were operated primarily by municipal utilities networks (often small) leading to inefficient

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STRATEGIC MANAGEMENT OF ROMANIAN PUBLIC UTILITY SERVICES. REGIONALISATION

ROLE IN ITS DEVELOPMENT

PROCEEDINGS O

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INTERNATIONAL C

ONFERENCE

Buc

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Jun

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NTERNATIONAL

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operations performed at sub-optimal scale, without access to financial resources and technical

competence and managerial limited in view of ongoing development of service level.

Currently, Romania as a EU member country, it must be aligned to the requirements of European

Directive 98/83/EC on water quality by 2015 and the requirements of Directive 91/271/EC on urban

wastewater by the end of 2018. For this reason, Romania intends during 2010 -2015 to make the

necessary investments to comply with European drinking water indicators such as turbidity, ammonia

content, aluminum, pesticides, nitrates, etc.. and European requirements regarding the collection,

treatment and discharge of urban wastewater. Also, by 2015, is planned to achieve wastewater

collection and treatment for a number of 263 settlements with over 10,000 population equivalent (p.e.)

and by 2018 in 2346 settlements with p.e. between 2,000 and 10,000.

With these ambitious goals, the former Ministry of Environment and Sustainable Development (MESD),

the current Ministry of Environment and Forests, has requested financial assistance from the pre-

accession programs (PHARE, ISPA) to support local authorities in creating strong regional operators

and viable in the water sector to ensure proper implementation of internationally funded projects and

efficient operation of utility networks built with European funds.

2. INSTITUTIONAL FRAMEWORK REQUIRED FOR THE REGIONALIZATION PROCESS

From an institutional perspective, regionalization is achieved by reorganizing the existing public services

owned by municipalities. This is based on three main institutional elements:

Intercommunity Development Association (IDA);

Regional Operator Company (ROC);

Management Services Agreement Delegation.

Delegation of service management is the foundation of operational and institutional organization of

water and wastewater management services and is designed for:

Provide a balanced relationship between local and regional operators.

Focus on contract preparation, financing and execution of investment plans as a basis for

improving the performance of utilities.

Administration of the key elements that lead to effective management, dynamic and sustainable in water

and sanitation sector, in particular on:

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SABIE Oana Matilda

STRATEGIC MANAGEMENT OF ROMANIAN PUBLIC UTILITY SERVICES. REGIONALISATION

ROLE IN ITS DEVELOPMENT

189

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Management for fixed assets and the financial system;

The tariff adjustment system;

Reporting and control processes.

Intercommunity Development Association (IDA)

Among the changes introduced by Law no. No 286/2006 on the law. 215/2001 on Local Public

Administration, was to define the way legal entities called Inter Development Association can cooperate

at local level.

According to Law 215/2001, Intercommunity Development Associations are cooperative structures with

legal personality, organized under private law (created in the provision of Government Ordinance no.

26/2000 on associations and foundations) with public utility status. Also, as amendments to the law

51/2006, IDA is treated as public authorities under Article 2, paragraph 1, letter d) of the Law on

administrative disputes no. 554/2004.

An ADI is established by adiministrativ-territorial units (municipalities and counties), according to Law

215/2001, 51/2005, 241/2006 and Government Ordinance 26/2000, to meet together certain

development projects at regional and local interest area or to provide certain public services. These

administrative units are the same as those delegated management of water and sewerage services to

the ROC.

ADI is the only interlocutor for the ROC, as a body to debate and coordination, representing the

common interest of municipalities members regarding water and sanitation services, especially

regarding: general strategy, investments, tariff policy.

ADI shall, on behalf of its members Municipalities, some of the powers and prerogatives, rights and

obligations of these municipalities, based on rights that these members have granted by the status of

the ADI.

ADI status presents in detail some key aspects, such as ADI objectives relating to the development of

water and sewerage services and related infrastructure; conditions guaranteed by ADI empowerment by

municipalities States to exercise certain powers on their behalf for services and voting procedures,

conditions of membership to IDA, IDA departure restrictive conditions, by stipulating penalties, including

reimbursement of investment.

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STRATEGIC MANAGEMENT OF ROMANIAN PUBLIC UTILITY SERVICES. REGIONALISATION

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Laws 51/2006 and 241/2006 are now changed to: clarify the legal status of the ADI as an entity of

private law, of public utility, assimilated to public authorities provide clear terms and conditions of

empowerment granted by municipalities States ADI.

Regional Operator Company (ROC)

ROC is a company owned by all or part of the ADI Municipalities States, to which is delegated

management of water and sewerage services, the contract of delegation.

The process of regionalization, which provides the basis for the formation of ROC, is an essential

element for achieving the investment for the renewal, extension, operation and maintenance of fixed

assets of the national water and sanitation sector, to meet the objectives set out in this sector for 2015

and 2018 . The regionalization process initiated the development of a regional institutional and legal

framework, able to replace the current small operators and autonomous regional operator with a unique,

powerful, to be more effective operation of services and thus gain enough credibility to and financial

management so as to enable them to obtain financing from EU cohesion funds.

According to the force of Law 31/1990 regarding companies and Law No 215/2001 on local public

administrations, regional operator is established as a commercial society havings shareholders with

administrative-territorial units which are also members of ADI.

Future changes in the law 51/2006 and 241/2006 will also include a definition of regional operator.

Management Delegation Contract

Management delegation contract for water and sewerage services is a contract concluded by ROC on

the one hand (as operator) and IDA on behalf of members of municipalities (these municipalities are

representing the delegate authority). It is a single contract for the entire project area, corresponding to

area jurisdiction of all administrative units delegated management of water and sewerage services to

the ROC.

According to Law no, 241/2006 on water and sanitation services, under delegated management

services, local government authorities transferred to the regional operator tasks and responsibilities for

providing public utility services, as well as operation, management and provision of water and water

systems, under a delegation of the management contract, approved by decision of delegating authority.

According to the strategy approved Sectorial Operational Programm (SOP) on Environment, delegation

contract is awarded directly to regional operators by applying the exception from the bidding process, in

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SABIE Oana Matilda

STRATEGIC MANAGEMENT OF ROMANIAN PUBLIC UTILITY SERVICES. REGIONALISATION

ROLE IN ITS DEVELOPMENT

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compliance with Law 141/2006. Direct agreement on delegation contract is obtained according to

delegate "in-house" rules except EU and tender procedures. Future changes to laws 51 and 241 also

include provisions on the rules "in-house" contained in these laws.

ROC control is jointly exercised by several municipalities, through ADI, based on the institutional

framework established by the Constitutive Act of the ROC (in terms of institutional control over ROC)

and the delegation contract is related terms of reference and rules of service (in terms of control

performance of contractual obligations regarding the management of water and sewerage services).

3. REGIONALIZATION PROCESS

The regionalization process is an essential element to satisfy the environmental acquis in the water and

wastewater, as it is experienced water companies need to achieve investment objectives and to ensure

high performance of constructed facilities. Regionalization is based on three institutional elements

Intercommunity Development Association (IDA), the regional water company and service delegation

contract.

Administrative-territorial units included in the program will form with an Intercommunity Development

Association, a collaborative structure that will allow local authorities to control Regional Water

Company, to monitor and supervise better the implementation of rehabilitation and modernization work.

Association allows the aggregation of local councils as a legal entity in order to determine, based on a

scale of territorial grouping, common objectives and priorities.

On the basis of negotiations and commitments assumed by Romania to the European Commission, our

country has assumed a significant role in the materialization of investments for water and wastewater

sector, during the first European budget cycle that we have access, namely the period 2007 - 2013.

Following the accession negotiations, Romania declared its entire territory as sensitive area, this

requirement assuming that all agglomerations with more than 10,000 inhabitants to be provided in terms

of wastewater treatment at an advanced level of technology and operation.

Some of the major problems of inadequate water services include maintenance and operation services,

an increased volume of unpaid water caused by leaks in the network and the low level of tax collection

from consumers, lack of investment for the rehabilitation / extension of water and wastewater

infrastructure, and inadequate management of operating costs, of maintenance and staffing costs.

To improve access to utilities and to protect and rehabilitate water sources as required by European

Directives on Drinking Water and Urban wastewater treatment, there are substantial opportunities in the

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STRATEGIC MANAGEMENT OF ROMANIAN PUBLIC UTILITY SERVICES. REGIONALISATION

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INTERNATIONAL C

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Buc

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grant programs established by the EU Cohesion Policy. Given the poor water sector development in

Romania, especially in terms of infrastructure and public services, aspect reflected in the commitment to

comply with the acquis communautaire, the relatively short transition periods is given to large

infrastructure projects covering more agglomerations at regional and county. In this context a

requirement is the association of municipalities to create regional structures able to attract funds for

their investment needs in water sector, funds that can not be drawn individually, but strictly on the

principles of partnership associations.

Providing grants for water and wastewater sector is subject to the establishment of regional water

companies (regional operators) and intercommunity development associations. Without financing in the

form of financial grants, most small operators will not be able to comply with the acquis. This is

particularly important because regional water operators will have a central function in the SOP

implementation operations.

Regionalization of water services is intended to reduce excessive fragmentation of the sector and to

achieve economies of large scale, is an ongoing national program.

Administrative-territorial units wishing to receive grants for water supply, sewerage and wastewater

treatment within the Sectoral Operational Programme Environment 2007-2013, must join to

Intercommunity Development Association (IDA) that will be created. IDA will act as a private institution

and as a public utility for associated localities.

The general objective of SOP program is to support local authorities to implement a regional multi-

annual investment program to improve standards of water and wastewater services through the creation

of integrated regional service providers, financially viable and able to plan and implement investment

policies and practices consistent with the European Community policies.

Most of the environmental infrastructure in Romania, in terms of water supply, wastewater treatment,

waste management, air quality, nature and wildlife protection, is in poor condition and well below

modern European standards. In addition, Romania faces environmental problems such as high degree

of pollution due to industrial activities in the past, and increased risk of natural disasters, especially

floods and earthquakes.

One of the priorities identified in “Strategy of Sustainable Development of public water supply and

sewerage ", financed under Phare - Economic and Social Cohesion, is to improve and develop local and

regional infrastructure. The economic potential of a region, as well as the attractiveness for investments

depend much on its infrastructure conditions.

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STRATEGIC MANAGEMENT OF ROMANIAN PUBLIC UTILITY SERVICES. REGIONALISATION

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The overall objective is to improve regional infrastructure to support economic growth by creating a

favorable environment to attract local investment and / or foreign and creating sustainable jobs.

Of variants that can be used to overcome these deficiencies, rehabilitation and modernization

infrastructure with funds only from the local budget represents a solution, but can not cover the

immediate need of rehabilitation and performance.

At present, the levels of services provided by water supply systems and sanitation in most localities in

Romania, do not meet the present requirements of Romanian regulations of the European ones. The

most common problems referes to:

inefficient water supply systems,

substantial losses,

does not cover all the residential services,

situation in the field of wastewater collection.

A general problem encountered is that of wastewater treatment. In most cases, treatment plants, where

they exist are not completed as execution. Furthermore, proposed tehnologies when tehnic projects

were designed are outdated and they are not corresponding to any debt or to wastewater loads. In

these conditions it is practically impossible to comply with the legal provisions on environmental

protection.

Because of this situation it is required, in most cases, implementation of major investment volume for

the rehabilitation, acquisition of equipment, materials, etc..

Joining a single operator, already established and operating, is a further step in the cooperation of local

authorities that have joined forces to run the program SAMTID, marking their ability to involve in large

long term projects for the rehabilitation of local infrastructure.

Such projects can be a model of good practice at regional level, having a social impact and causing a

stimulation of economic environment by rehabilitating basic infrastructure.

The general objectives and purpose of joining a regional operator:

rehabilitation of water supply and sewage systems, works expansion and modernization;

increase the efficiency of water supply and sanitation systems;

improve the quality of water supply and sanitation services;

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STRATEGIC MANAGEMENT OF ROMANIAN PUBLIC UTILITY SERVICES. REGIONALISATION

ROLE IN ITS DEVELOPMENT

PROCEEDINGS O

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“ADM

INISTRATION A

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INTERNATIONAL C

ONFERENCE

Buc

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Jun

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3-24, 2010

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ANAGEM

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PUBLIC I

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CITY T

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MPL

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reducing the negative impact on the environment and eliminating the risk of disease for

population;

improve drinking water quality and compliance with the standards of the Water Framework

Directive 98/63/EEC with a view to a better integrating in EU, whose objectives are based on

regional cooperation;

achieveing progress in autosustaining these services, by maximizing the cost-quality ratio;

establishment by local authorities of the Association of Municipalities, to common

representation of their interests as holders of assets of water services and the legal entity

responsible for carrying out the forecasts for these services;

replace existing small operators with a single regional operator, to allow ralisation for

economies of scale;

restructuring operation and management of water services and fostering cooperation between

local authorities in addressing priority needs in the public service;

identify measures to improve the solvency of utilities, creating the possibility of access to

credit schemes,

development of institutional and organizational point of view to implement the European Water

Framework Directive on integrated water management in river basins;

developing a thriving business environment.

In conclusion the process of regionalization is to focus the operation of services provided to a group of

municipalities in a geographic area in relation to a river basin and / or administrative boundaries

(municipalities, counties). Regionalization Services aims to reach to 2,600 villages with more than 2,000

inhabitants by 2018 to meet the performance objectives set by the PSO, by focusing management of

water services and sewerage operators around 50 strong operators, established and developed by

merging existing local utility companies in the Regional Operator company (COR).

Regionalization of water services, seeks to address excessive fragmentation of the sector and to

achieve economies of scale. The process is supported by the pre-accession (ISPA, PHARE) and the

state budget, and include all 42 counties in Romania.

Institutional capacity building scheme is intended to provide investment relations programs that support

the rehabilitation, modernization and improvement of local infrastructure for water and sewer. To this

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STRATEGIC MANAGEMENT OF ROMANIAN PUBLIC UTILITY SERVICES. REGIONALISATION

ROLE IN ITS DEVELOPMENT

195

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end, investments are identified and ranked by priority to include components that reduce costs, improve

efficiency of basic services. New programs to install meters, flow monitoring and water pressure, to

reduce unmetered water consumption, reducing infiltration of sewerage networks, etc.., are components

of each investment project as part of demand management programs.

Capacity building programs include local administration preparation for the purposes of using loans (co-

funding) as a financial source for their investments and improve their ability to plan their investments in

municipal infrastructure in a sustainable manner by introducing operational and financial discipline.

In summary, for the process of regionalization of services in water, initiated by the Romanian authorities

and strongly supported by pre-accession programs (PHARE, ISPA) is to assist local authorities in

creating public service operators in water and sanitation sector and to strengthen local capacity to

effectively control the activities of regional operator through Intercommunity Development Association

(IDA).

4. PRESENT STAGE FOR PUBLIC UTILITIES SERVICES

Water infrastructure

Drinking water supply. Only 65% of the population is connected to the drinking water - 98% of urban

population and only 33% of rural population (3.4 million). Romania is in an unfavorable position

compared to Europe, where 96-100% of the population is connected to the distribution of drinking water

- 100% in urban areas and 87% in rural areas. 86% of the resident population of 256 urban localities

(about 11,551,096 inhabitants) have running water through public networks. Figures show that in 55

urban areas (21.5%), the population is connected up to 100% to the public drinking water supply

network.

In Romania there are 1398 treatment plants for drinking water. For settlements with a population

between 50 and 5,000 inhabitants, 25% of the public systems supplying drinking water does not comply

with accepted values of chemical parameters, whereas in settlements with a population exceeding

5,000 inhabitants, 10% of public drinking water supply systems does not meet the maximum standard

for chemical parameters.

Population at risk due to water distribution networks age, water quality and chemical parameters, for

which no concrete data is approximately 9.8 million inhabitants in urban areas.

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Sewerage network. 675 villages were provided with sewerage networks at the end of 2004. Population

receiving sewerage services are approximately 11.5 million inhabitants, of whom 10.3 million in urban

areas (representing 90% of urban population) and 1.15 million in rural areas (10% of rural population).

Correlating the two types of endowments - drinking water supply and sewerage systems - rural

population can be grouped into two categories:

Population benefiting of both services - 65%;

Population benefiting of running water but no sewer system - 16%;

Population benefiting neither running water nor sewerage system - 32%.

Wastewater. In 2004, from the total volume of wastewater requiring treatment, 29% was enough clean,

about 29% represent the volume of untreated sewage and 42% water volume insufficient filtred. Thus,

almost 71% of the total wastewater was untreated or insufficiently treated. 49% of wastewater was

produced by heat and power plants and 39% was derived from public utilities.

Of the 1359 water treatment plants (both municipal and industrial) investigated in 2004, 555,

representing almost 41% of total were functioning properly, the remaining 59% is characterized by a

malfunction. Of the 2609 agglomerations with a population greater than 2000 p.e., there were identified

340 such settlements benefiting from wastewater treatment plants.

Waste management

The total amount of waste generated in Romania in 2004 was approximately 36.7 million tons (8.19

municipal waste and 28.51 industrial waste, except mining waste). The ratio between the two categories

vary from one year to another, averaging 29% municipal waste and 71% industrial waste.

Municipal waste in urban areas are managed by specialized companies or municipal waste services.

Share of urban population covered by sanitation services increased from 73% in 1998 to 90% in 2002.

However, in rural areas there is no organized waste management services.

Transport waste to landfills is usually done individually by each generator of such waste. Only a limited

number of rural areas, especially near the towns have organized waste collection services.

This is a burden on the environment and also leads to the impossibility of complying with EU standards.

In 2003, only 5% of rural population benefit from waste services, while in 2004 the percentage had

increased to about 6.5%.

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Domestic and assimilated waste represent around 60% of municipal waste, the rest being waste

resulting from the provision of municipal services, construction and demolition works and uncollected

waste. About 40% of municipal waste components are recycled materials, of which 20% are potentially

recoverable. As a result of selective collection (pilot projects), only 2% of all recyclable materials

generated are actually recovered. The rest end up being stored.

Landfill is the most used for municipal waste disposal. In 2003 there were 267 such deposits in

Romania. Of these, in 2004 only 15 units were operating in accordance with EU legislation. Also

recorded were 236 warehouses that do not meet the standards. In 2005, began to operate three

municipal landfills for normal standards, and four other units were closed. In rural areas are 2686

deposits (with area of 1 ha or more). Closing and cleaning of these areas was supposed to be realised

until July 16, 2008, while expanding collection services in rural areas.

According to the National Waste Management Plan, has established a need for 49 hazardous waste

landfills was established with capacities ranging from 50,000 to 100,000 tonnes per year.

Waste production. Waste production are represented by industrial and agricultural waste, including

those resulting from energy production. Among special categories of waste are included mining waste,

hazardous waste and nuclear waste.

As a general rule the responsibility for industrial waste management is let to the one generating the

waste, which is required to contract services for waste management. Currently there are only a few

companies dealing with industrial waste management and the services they provide are limited in terms

of types of waste and processing capacity.

In 2004, the total quantity of industrial waste was 355 million tons, of which 326 million tons are

represented by mining waste. This type of waste is managed according to specific national regulations.

Mining waste is not just an environmental issue but also an economic and social development issue.

Therefore, the Government has developed strategies and specific programs for this area, having regard

to mine closure, environmental rehabilitation and reduce social problems in mining areas.

Government policies and strategies for the rehabilitation of mining areas are financially supported by

World Bank loans ($ 120 million). Thus the "mine closure and social mitigation" started in 2000

continued through the "mine closure, environmental remediation and regeneration of socio - economic"

(2005-2010), coordinated by the National Agency for the Development of Mining Areas.

An important part of generated waste (excepting waste from extractive industries) is the energy industry

waste, around 16 million tons in 2004.

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There are 20 electro-thermal plants inconsistent, which burn solid fuels and use hydro-generated waste

slag and ash dumps. These units need to change waste disposal equipment to comply with

environmental standards. Following negotiations with the EU were granted transition periods between 2

and 7 years for compliance with the law on waste disposal.

The largest quantities of hazardous waste results from chemical, petrochemical, metallurgy, mechanical

engineering and transport industry.

Currently around 335,000 tonnes of hazardous waste are stored in 51 warehouses for hazardous waste,

including those to be removed.

Since 2007, more than half the amount of hazardous waste will be disposed of by other methods

(physico-chemical treatment for recovery, co-incineration and incineration).

The total quantity of waste production, excluding mining waste, 30% were recovered, the rest being

disposed of in landfills or incineration. In 2003 approx. 2 million tons of waste were removed by

incineration / co-incineration plants, leading to energy recovery.

In early 2004 were operateing 169 industrial waste deposits (with an area of approximately 3,000

hectares). They are classified as follows: 15 hazardous waste landfill, hazardous waste and 2 116 for

inactive waste. 15 of the 169 stores EU compliant and will continue to operate until full use of their

capacity. The remaining 154 stores will be closed gradually, according to the commitments undertaken

by Romania's EU Accession Treaty.

There are seven incinerators for hazardous waste held by four private operators, which incinerate

hazardous waste generated by its own activities and 7 cement kilns approved for co-incineration of

waste in mining, in 2006 there were 75 mining ponds and dumps 557 sterile (of which 100 active and

457 inactive).

Of the 75 mining ponds, 15 ponds are in operation, 27 under lock and green and 23 are in storage of

nuclear waste and radioactive waste is another category with a significant impact on the environment

and human health. It was developed a National Strategy for radioactive waste management and specific

authority has been established - the National Radioactive Waste (ANDRAD), which operates under the

Ministry of Economy and Trade.

Radioactive waste are the result of activity of the Cernavoda nuclear reactors, the use of isotopes in

industry, research, medicine, mining activities (uranium mining).

Evidence about the amounts of radioactive and nuclear waste are not available.

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5. OPPORTUNITY OF INVESTING IN INFRASTRUCTURE OF PUBLIC SERVICES

UTILITIES DEVELOPMENT

According to SOP priority axes, the opportunity of investments in infrastructure development of

these services is summarized below.1

Placement of sewage problems and water in first position is justified by the fact that only 65% of the

population has access to public water and sewer. In some areas of Romania water does not meet the

quality parameters for drinking and sanitation and wastewater treatment do not exist.

The estimated costs to comply with European standards in the water sector are estimated to 19 billion

by 2018, of which 9 billion just for the period 2007-2013.

For this reason this priority axis will benefit most from the European SOP (60%). Investments look for

the expansion and modernization of water and sanitation, construction and upgrading of treatment

plants and water efficient public services and sanitation.

These investments will result in regional projects that will focus, initially, the water needs of urban areas

where environmental impact is increased and the population is large.

Following these investments, public access to these utilities will increase respectively from 65% today to

70% (target set in SOP).

In this context, the process of regionalization is essential for compliance with the acquis communautaire

in the water / waste water because water companies are required to achieve the investment experience

and guarantee operations.

The purpose of the regionalization of water services, a process initiated by the Romanian authorities

and funded from pre-accession programs (PHARE and ISPA) is to support beneficiaries (associations of

municipalities and corporations) in building water and wastewater service operators and local authority

capacity building for effective monitoring of their activities.

Without funding, most small operators will not be able to comply with the acquis communautaire.

Consequently, there is an incentive for different operators to ensure the creation of regional operators

and to counteract any political and administrative difficulties.

1 Sursa: Ministerul Mediului şi Dezvoltării Durabile - POS Mediu

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Municipal waste management has proved to be another major problem. Most of the municipalities have

practically waste landfill. Currently, municipal waste are stored in bulk, in deposits which do not comply

with EU environmental rules.

Equally, low access to waste services and reduced opportunities for recycling / recovery of waste is

more reason to encourage substantial investments in this sector.

The purpose of these investments is the grow of investors and visitors attractiveness for different areas

and also to reduce the harmful effects of contaminated areas to ensure adequate living conditions for

local communities.

These investments aim is to create integrated systems of waste management at regional level

(purchase of containers for selective collection, garbage, sorting facilities, composting and recycling,

landfill construction at European standards, closure of old, non-compliant).

Thus, these investments help protect the environment by reducing the negative impact on human

health.

Emissions of pollutants related to central heating systems is one of the main sources of air pollution in

many cities.

As a result, investments are needed in this sector to reduce negative impacts on the environment and

human health. It will pay particular attention to activities in order to modernize power plants and to

reduce emissions of pollutants into the atmosphere.

This priority contributes to the fulfillment by Romania of the obligations assumed in the air quality sector

and industrial pollution control, especially in terms of commitments to reduce emissions into the

atmosphere.

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6. CONCLUZIONS

Finally we can say that there is a constant need to ensure that all cities can invest in maintenance and

upgrading their infrastructure in order to provide good service, able to reach EU standards.

This requires the adoption and implementation of development strategies and policies designed

properly, focused on real needs of the population, where services will become accessible to all.

ACKNOWLEDGMENT

This work was based on research of the project PNII - IDEAS 1780/2008, financed by NURC-

UEFISCSU.

REFERENCES

Cadrul Strategic `Naţional de Referinţă 2007-2013, Proiect. (2006, octombrie). Retrieved from http://www.minind.ro/fonduri_structurale/CNSR.pdf

Ghid privind regionalizarea operatorilor serviciilor de apă şi apă uzată. (2008, iunie 17). Versiunea 4. Retrieved from http://www.mdrl.ro/_documente/scheme_grant/doc_referinta/Ghid_Regionalizare. pdf

Hotărârea nr. 246 din 16/02/2006, Publicată in Monitorul Oficial, Partea I nr. 295 din 03/04/2006, pentru aprobarea Strategiei naţionale privind accelerarea dezvoltării serviciilor comunitare de utilităţi publice. Retrieved May 12, 2010, from http://www.ara.ro/documentare/legislatie/Apa-Canal/2.%20 Hotarari/08.%20Hotarare%20nr.%20246-2006%20-%20Strategia%20nat.%20-accelerare%20 dezv.%20ser.pdf

Legea nr. 215/2001 privind administraţiile publice locale, republicată după modificarea adusă prin Legea nr. 286/2006. Retrieved June 16, 2010, from http://www.pmb.ro/servicii/alte_informatii/l286_2006/ docs/L286_2006.pdf

Legea serviciilor comunitare de utilitati publice nr. 51/2006, publicata in Monitorul Oficial al Romaniei, Partea I, nr. 254/2006. Retrieved May 10, 2010, from http://www.dreptonline.ro/legislatie/legea_ servicii_comunitare_utilitate.php

Legea serviciilor comunitare de utilitati publice nr. 51/2006, actualizată la data de 12 noiembrie 2009, Retreived May 12, 2010, from http://www.anrsc.ro/documents/serviciul_juridic_si_metodologie/ legislatie/LEGE%20nr.51.pdf

Legea nr. 213/1998 privind proprietatea publică şi regimul juridic al acesteia, Retrieved May 10, 2010, from http://www.cdep.ro/pls/legis/legis_pck.htp_act?ida=18830

Legea serviciului de alimentare cu apa si canalizare nr. 241/2006, publicata in Monitorul Oficial al Romaniei, Partea I, nr. 563 din 29 iunie 2006, Retrieved May 12, 2010, from http://www.psp.ro/legislatie/legislatie_primara_si_secundara/

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OUG 13/2008 care cuprinde modificările la Legile 51/2006 şi 241/2006 conţine şi o definiţie a operatorului regional, Retrieved May 12, 2010, from http://www.vitalmm.ro/index.php?option=com_ content&view=article&id=122&Itemid=110

Programul Operaţional Mediu, Axa Prioritară nr. 1 “Extinderea şi modernizarea sistemelor de apă şi de canalizare”, Retrieved May 10, 2010, from http://www.fonduri-structurale.ro/Detaliu.aspx?t=mediu