Financing River Basin Management Planning in Romania

Presented at the 11th roundtable on financing water in Brussels, Belgium on 30-31 May, 2024.
Intervention by Gheorghe Constantin, Ministry of Environment, Water and Forests of Romania

1. Financing River Basin Management
Planning in Romania
Gheorghe Constantin
Romanian Ministry of Environment, Water and Forests
11
th
Roundtable on Financing Water
Brussels, 30-31 May 2024

2. Program of measures
BASIC MEASURES:
minimum set of obligatory measures
WFD Art. 11/3 and Annex VI part A
➢UWWT-Directive
➢IPPC-Directive
➢Nitrates Directive incl. Action Programme etc.
SUPPLEMENTARY MEASURES:
set of additional measures to reach the environmental objectives
WFD Art. 11/4 and Annex VI part B
➢Legislative, administrative, economic instruments,
➢hydromorphologicalconditions
➢educational projects, research etc.

3. 1-st Planning cycle 2015 15,82 billions
Euro
2-nd Planning cycle 2021 5,15 billions
Euro
3-rd Planning cycle 2027 14,683
millions Euro
Total costs 2010-2027
21 billions Euro
B.M . 97%
S.M 3%

4. Financing Program of Measures
•The costs of measures have been identified and the financing
sources are planned and detailed at sub-basin levels:
- 25.33% European funds (cohesion, POIM, ISPA, PHARE,
SAPARD, SAMTID),
-46.22% funds from the local and state budgets
-28.56% are own resources and loans of water users.
•From the total cost of PoM (€22.992 billion), for around
•29% (€6 billion) of the costs, financing sources should be identified
on a later stage.

5. Financing Plan for Drinking Water and Wastewater
2023-2030
•968 million euros – National Recovery and Resilience Plan 2021-2026. Within the PNRR, it is proposed to
build 1,600 Km of water supply networks, 2,900 Km of sewerage networks, 12,900 individual wastewater
collection and treatment systems and support 88,400 households with low incomes to connect to the
water supply and sewage systems;
•2.9 billion euros from the Sustainable Development Operational Program 2021-2027 dedicated which will
include investments for 396 UATs with a beneficiary population of 1,340,076 inhabitants;
•4.5 billion euros from the National Investment Program for the financing of water and sewage systems;
•450 million euros in funding from local public administration budgets;
•400 million euros in co-financing compliance funding from ROCs;
•250 million euros from the budget of the Environmental Fund.

7. Financing of the water management system
•State budget for the construction of the national infrastructure
•National Administration “Romanian Waters” budget for the operation,
maintenance and repairs of the water national infrastructure
•National Administration “Romanian Waters” budget for running,
maintenance and upgrading of the national water quantity and quality
monitoring system
•State budget and National Administration “Romanian Waters” budget for
implementation of the obligation deriving from bilateral and regional
agreements in the water field
•Local budget for construction and maintenance of the local infrastructure

8. 8
Per capita cumulativeadditional expenditures by 2030:
BAU + Compliance + efficiency
0 100 200 300 400 500 600 700 800 900
Greece
Lithuania
Estonia
Hungary
Finland
Latvia
Czech Republic
Slovenia
Poland
Portugal
Germany
France
Sweden
Belgium
Malta
Denmark
Austria
United Kingdom
Italy
Slovakia
Netherlands
Spain
Cyprus
Croatia
Ireland
Bulgaria
Romania
BAU
Compliance and efficiency WS
Compliance WW
EUR
Luxembourg:
EUR 2928 (BAU: 2782;
WS:146; WW: 0)
Source
: OECD analysis based on European
Commission and Eurostat data

9. 9
Total cumulativeadditional expenditures by 2030: BAU + Compliance +
efficiency
0 2,0004,0006,0008,00010,00012,00014,00016,00018,00020,000
Estonia
Malta
Lithuania
Latvia
Slovenia
Cyprus
Finland
Greece
Hungary
Czech Republic
Denmark
Luxembourg
Croatia
Slovakia
Portugal
Austria
Sweden
Ireland
Belgium
Bulgaria
Netherlands
Poland
France
Germany
United Kingdom
Romania
Spain
Italy
BAU
Compliance and efficiency WS
Compliance WW
million
EUR
Source
: OECD analysis based on European
Commission and Eurostat data

10. 10
Ways forward - Share of WSS expenditures in households’ disposable
income
2011-15
annual
average
Note: Lack of household
expenditure data for
Croatia and Sweden.
Source: OECD analysis
based on EUROSTAT
(household expenditures
and income data)

12. Targets of Regionalization
•Limitation of political involvment in the supply of water and
wastewater services
•Regional Operator as the mechanism for provision of service to
small communities
•Availability of more similar companies for benchmarking
comparisons
Overall target – to provide that 2600 localities of more than 2000
p.e. meet 2018 targets

13. Advantages of regionalization
•Improved technical capacity
•Improved financial capacity
•Improved lending capability
•Improved investment planning
•Optimization of available resources
•Capacity to operate of existing regional systems
•Capability to meet EU W & WW Directive
•Tariffs leverage around the region

15. Counties and basin areas operated by ROCs

16. Financing agricultural measures within PoM
•Total estimated costs 554.5 millions Euro
•Sources of financing will include:
-European Agricultural Fund for Rural Development (EAFRD)
-National Rural Development Program
-Local budget
-Farmers’ and/or farmers' associations own sources
- State and Commercial loans

17. Financing by the World Bank
•"Integrated Control of Nutrient Pollution" project –2000-2022
total value 120 millions Euro –Loan taken by The Romanian Government
•Continue with another project -Prevention and reduction of pollution in rural areas
RAPID -50 millions euro for 5 years
•The projects have had/will have investment, training, awareness and strengthening of
institutional capacity
Mixed actions!
•Behavior changing – information dissemination, awareness and trainings
addressed to farmers & other stakeholders
•Investments: manure storages at community level
•Use of statistical data and surveys for adapting and calibrating project
actions
•Technical improvement of the water and soil monitoring network

18. 86 done, active financing program for 100 more

19. The aim of the communal facilities (platforms and composting stations) is to temporarily store the
manure in good conditions, mixed or not with other organic residues such as household or vegetal
residues, before spreading it on the agricultural land.
Investments - Community facilities for manure storage – aerobic composting

20. 80 frontal loaders
80 vacuum tankers
172 trailers
Equipments for manure management
80 manure spreaders
86 tractors
Equipment for manure
management

21. Biogas
Community level solution for manure management

22. Investments in sewage systems and WWTP

23. October 2011
Investments in Waters’ monitoring
Laboratory and sampling equipment
Piezometers Voina International Training Center

25. Hydromorphological restoration
•Ensuring lateral and longitudinal connectivity
•Total cost not yet estimated
•Financing of the feasibility studies for small areas
•Land property issue
•Need to negotiate with other sectors (agriculture)
•Green Deal and Nature Restoration Law will require important public
financial resources
•Part of the Danube River Basin Approach

26. Lower Danube Green Corridor

27. ASPECTS IN ROMANIAN SECTOR
OF DANUBE VALLEY
Calarasi -Raul Island

30. Challenges
•Large amount of financing needed in short time
•New obligation due to new UWWTD and DWD
•Existing economic mechanism reach its limit
•Need to support the low income households
•Decentralization/consolidation
•Need for better institutional capacity
•Climate change adaptation

31. Thank you for
yourattention!