Iași T K M op omot out: Pr y

Iași, Str. Mihai Costăchescu nr. 6

Contact Center: 0232.969 aphics and la Gr [email protected] • al xt: ApaVit e T • es chiv al ar aphs: ApaVit ogr Phot • al S.A. t ApaVit Forest Post-consumer Stewardship recovered WATER AND SEWERAGE Council fibre Copyrigh PUBLIC SERVICES www.apavital.ro REGIONAL OPERATOR Address: Iași, RO - 700495 Str. Mihai Costăchescu nr. 6 Telephone: 0232.215.410, 0232.215.411, Water and Sewerage 0232.215.412, 0232.215.413 Public Services Fax: 0232.212.741 Regional Operator Call Center: 0232.969 Work programme: Monday, Tuesday, Wednesday, Thursday: 8.00-16.30 Friday: 8.00-14.00 Bureau for receipt and issuing of documents: Fiscal Code: Monday, Tuesday, Wednesday: RO 1959768 8.00 - 13.00 and 13.30 - 15.30 Commerce Register no: Thursday: 10.00 - 13.00 and 13.30 - 17.30 J22/1/1991 Friday: 8.00 - 11.00 and 11.30 - 13.00 CAEN code: E-mail: 3600 [email protected] Subscribed Capital: [email protected] 78,872,243 lei [email protected] Paid-up Capital: Webpages: 78,872,243 lei www.apavital.ro Facebook: hps://www.facebook.com/ApaVital/ CONTENT

Our organizaon page 2 Values we believe in page 4 Our history page 6 Organizaon page 10 Operang area page 12 Managed facilies page 13 Water sources page 14 Water and sewerage system page 15 Auxiliary services page 20 Technical and IT equipment page 25 Quality page 28 Investments - Development page 31 Economic performance page 36 Human resources page 40 Relaonship with clients page 42 Social responsability page 46 Main activity: Our abstraction, treatment and distribution (CAEN code 3600) organization Wastewater: collecting and treatment (CAEN code 3700)

ApaVital is a state-owned Water abstracon and distribuon company, subordinated to  Abstracon and pumping of water amounts needed to be treated and the Iasi County Council, supplied to customers on a 24/24 basis, at quality levels compliant to offering public water and regulaons and standards in force. sewerage services for a  Maintaining an opmal operang status of all pumping and treatment populaon of 469,000 facilies. inhabitants and 3,700  Ensuring the protecon and the integrity of severe regime sanitary businesses. The operang protecon areas to all facilies. area includes localies from two counes - Wastewater sewer conveying Iași and Neamț.  Full evacuaon of domesc wastewater, from all water consumers to public sewer networks. ApaVital is a member of  Evacuaon of industrial wastewater from commercial companies Romanian Water connected to the sewer network, which release wastewater towards Associaon (Asociația public sewerage systems. Româna a Apei), and is involved, along with other Wastewater treatment operators, in the promong  Mechanical, biological and terary treatment, that is the removal from of water resources drinking water, industrial wastewater and sewer wastewater of all sustainable management harmful compounds. in .  Mechanical and biological treatment of wastewater (domesc and industrial).

2 Other activities

Sepc tank drainage district heang networks or in buildings basements), thus Sepc tank drainage is provided against payment prevenng the occurrence of collateral material damage by Apavital. Moreover, some other acvies are provided: due to infiltraons caused by water hidden leakages. declogging of inner sewer systems, declogging of public Metrology sewer systems, and hauling of wastewater from the Performing of metrological checks, against treatment plants that are to be primed. payment, for water meters with nominal diameters DN Designing 50-150 mm. Draing of design documentaon for the GIS mapping company's own investments and for third pares in the Designing, updang and maintaining the water and field of water and sewerage networks, repair of exisng sewerage networks databases in localies within operang facilies, topographical measurements, drawings area, and connously refining the exisng informaon by mulplicaon. increasing the accuracy and complexity degree. Defectoscopy Laboratory tests Idenficaon of hidden water losses, upon  Carrying out physico-chemical and micro-biological request, when crical situaons arise during the operaon tests for drinking water. of water networks (decreased pressure or water  Carrying out physico-chemical and biological tests for infiltraon in manholes related to telephone networks, wastewater.

Mixed tari Turnover: (water/sewerage), VAT included: 7.11 lei/m3, 30 million euros in force from July 1st, 2019

Total localities that Share capital: Number of benet from ApaVital 18 million euros employees: services: 280 1,340

Shareholders: Number of shares: Iasi County Council, Territorial Administrative 788,723 Units from Iasi and Neamt counties 3 Values we believe in

Responsibility We know how important water is in maintaining and developing life. That is why we assume daily responsibilies as regards the provision of and respect drinking water to every cizen within operang area. We are focused on water quality and how water meets everyone's needs. We are constantly interested in how we abstract water from the natural circuit, how we treat it in order to make it potable, in order to be supplied to our clients, and then how this water is render back to nature.

Caring for We have learned to listen to people and ancipate their needs. We know that the need for water is permanent. That is why we strive to ensure the client that drinking water is not lacking to anyone. We are in a permanent dialogue with our clients, to whom we share our achievements.

Performance and We do our best to ensure that ApaVital connues to develop and provide useful services to its clients. Our performance is based on development organizaon, dedicaon and talent. Our commitment to development translates into beer services in the field of water and sewerage sector.

Team spirit Team spirit is fundamental for the ApaVital culture. Teamwork makes performance more visible. ApaVital employees are proud to be part of the team where honesty, talent, commitment and hard work are respected and appreciated.

4 Certication. Accreditation. Attestation.

The idea of implemenng a quality management  SA 8000: 2014 - Social Responsibility Management system emerged as a result of the establishment of the System strategic mission and objecves, in the context of the  Class 1 Operang License issued by the Naonal process of alignment with European norms, quality Regulatory Authority for Public Ulies in Romania standards and performance in the field of public services. (Autoritatea Națională de Reglementare pentru The integrated cerficaon of quality systems and Serviciile Comunitare de Ulități Publice din România, environmental management has been achieved effecvely ANRSC - www.anrsc.ro) by obtaining the cerficaons granted by the Romanian  Wastewater Laboratory, RENAR accredited in Company for Quality Cerficaon (Societatea Română de Romania (www.renar.ro) Atestare a Calității - SRAC) and confirmed by the  Drinking Water Laboratory, cerfied by the Ministry Internaonal Cerficaon Instute, IQNet. of Health of Romania (www.ms.ro), regarding the Quality assurance monitoring of drinking water quality  ISO 9001:2015 - Quality Management System  Metrology laboratory authorized by the Romanian  ISO 14001:2015 - Environmental Management System Bureau of Legal Metrology (Biroul Român de  OHSAS 18001:2007 - Occupaonal Health and Safety Metrologie Legală din România, www.brml.ro) for Management System metrological verificaon  ISO EC 27001:2013 - Informaon Security  ApaVital is cerfied for preparaon of studies and Management System documentaon in the field of water management, by  ISO EC 22000:2005 - Food Safety Management System the Ministry of Waters and Forests of Romania  ISO 17025:2005 - Test Laboratory Management (www.apepaduri.gov.ro) Systems

5 Our history Brief history

We are proud of our long The Municipal Company of Drinking Water Iasi is established history in the service of 1936 (Societatea Comunală a Apelor Potabile Iași). the local community, The „Societatea Comunală a Apelor Potabile Iași” becomes a the way we manage 1942 Commercial Public Authority („regia”). the environment, The Electricity, Tram, Water-Sewerage and Sanitaon our experience in the 1948 Enterprise is established (Întreprinderea de Electricitate, field of water and Tramvaie, Apă-Canal, Salubritate). sewerage, and the Due to insufficient flows provided by the Timișeș source, a new achievements water supply is needed, that is, the Prut River surface source. of our staff. Thus, this water supply system is designed and completed, this 1955- including the Tutora 1 river bank intake, the „Priza Prut” main 1957 water pipeline, the „Ion Creangă” re-pumping staon and the Șorogari water treatment plant. The water-sewerage acvity is taken over by the authority named „Întreprinderea Comunală Apă-Canal-Băi Iași.” (communal enterprise for water-sewerage- public baths).

The new Timișeș groundwater abstracon facility is designed and extended with 4,050 m. The works for the Iasi City 1968- Wastewater Treatment Plant are commenced (Stage I), works 1973 which will connue with stages III-V, unl 1996, when the exisng lines are upgraded. The services of the authority named „Întreprinderea Comunala Apă-Canal-Băi Iași” are shied to a new state-owned authority, named „Grupul Întreprinderilor de Gospodărie Comunală și Locavă Iași G.I.G.C.L. Iași”, a group of public services enterprises.

1991 The water-sewerage public authority named „Regia Autonomă Județeană Apă Canal Iași - RAJAC” is created.

1995 Begins the implementaon of investment programs in all acvity areas of RAJAC-Iasi water authority.

2000- Financing contracts are signed by representaves of the 2001 European Community and Romania.

The share-based company ApaVital S.A. Iasi is founded, 2008 having as shareholders the Iași County Council and communes within Iași county. 6 R.A.J.A.C./ApaVital Iași implements the ISPA program, which was aimed to bring posive effects on environment, and, as well, socio-economic and operaonal posive effects that will 2001- appear aer the compleon of the program. 2009

On July 14th, 2009, a Management Delegaon Agreement is signed with the ARSACIS Development Intercommunity Associaon (Asociația Regională a Serviciilor de Apă Canal Iași) 2009 through which APAVITAL S.A. Iasi becomes a regional operator in Iasi County.

2011- The implementaon of EU-Cohesion Funds projects is commenced. 2012

The implementaon of EU-SOP 1 and EU-SOP 2 Environment projects is commenced 2012

The EU SOP Environment project “Extension and rehabilitaon of water and wastewater infrastructure in Iasi County” is finalized (project including 16 works contracts and two services contracts). The project "Investments for the operaon and maintenance of water systems within the operang area of Regional Operator Apavital SA Iași” was finalized (a complement of the aforemenoned project). 2016 On March 7, 2016, the Technical Assistance contract is signed for the preparaon of the Financing Applicaon and Tender Documents for the Regional Project for Development of Water and Wastewater Infrastructure in Iasi County during period 2014-2020, which is set to cover the agglomeraons that comply to the following condions: a distance between localies of less than 200 meters or a populaon greater than 2000 inhabitants. Localies from the enre county are included in project's scope.

ApaVital submied to the LIOP Managing Authority the financing applicaon by which it requested the financial resources necessary to finance the Technical Assistance contract, a request approved on April 26. In May, the Financing Agreement was signed with the Ministry of 2017 Regional Development, Public Administraon and European Funds, as Managing Authority for the LIOP program.

ApaVital has submied the financing applicaon for the second stage of the technical 2018 assistance contract and in order to ensure the financing of the LIOP works contracts.

7 Dr. Eng. Ion TOMA

General Manager

I am leading a team that has enjoyed success by the end of 2018, too, and this success is primarily the result of the science of harmonizing everyone's beliefs, the ability to communicate clearly where we want to go so that everyone understands the concrete plan which helps us reach our target. I had the good fortune and the skill to accumulate a great technical experience and I relessly try to pass it on to my younger colleagues. Anyway, they have good knowledge and skills because we do not recruit people without training, that is, just because they would cost us less. In this area, in order to keep yourself up, you need to know very well what you do and what you sell. For this reason, I am very dedicated to personnel training and for me its crucial to keep employees loyal to the company. Currently we have specialized personnel with solid experience in the field. But I wanted more; I called on a specialized trainer to handle the personal development of all managers in the company and other categories of employees, who want to develop, to see things from a different perspecve. It is a way of shaping our organizaonal culture and aligning our beliefs, goals and methods of acon as a whole unl the last hierarchical levels. I firmly believe that unless someone is not trying to do something more than the things he already knows, he will never evolve. And I clearly understood that perseverance creates great achievements, not necessarily power.

8 Dr. Eng. Mihail DORUŞ

Technical Manager President of Apavital Board of Directors

We are ending another year of intense acvity and that soulful gratude for the well done work persists. I do not have an easy task, but there are many things I enjoy: from the sasfacon I have when we are valued by clients, partners, and to the freedom that I have to decide and implement an operaonal, supporve or markeng strategy. But most of all, I like to feel the way a project gets successfully implemented, when I manage to mix the leadership elements with managerial elements and we become able to constantly reach very good results. I believe that the acvity in any company is a role based system, and that the people who play these roles provide 70-75% of the role in an automacal way and that the remainder of 25-30% represents each employee's personal contribuon, factor that may improve his/her acvity or, on the contrary, may hinder his/her development, depending on each employee's adherence to the values that I communicate and the vision I have. I am focusing on increasing this adherence, because my vision is clear. As to paraphrase, I can say that me is running the same way if we talk about a 35,000 lei project or a 35,000,000 lei project. Only the number of final zeros is different.

9 Institutional structure THE GENERAL DIRECTORATE THE C Apavital's instuonal DIRECT

TE structure includes 5 OMMERCIAL directorates:

The General Directorate, ORA ORA The Economic Directorate, The Technical Directorate, The Operaonal TE

Directorate, THE TECHNICALDIRECT The Commercial Directorate. THE EC DIRECT ONOMIC TIONALTE ORA ORA TE THE DIRECTOPERA

THE GENERAL DIRECTORATE is directly subordinated to the General Manager, and includes: The Advisors Team - Parcipates in the elaboraon of the company's development programs, by means of proposals, resulng next to analyzes and observaons. The Control Department - Provides the control acvies carried out at the company level, including financial management control, internal audit and operaonal control. The Law Department - Provides the implementaon of the naonal legislaon in ApaVital, represents the company's interests in relaon to law courts and other legal instuons and ensures the legality of official documents draed by the company. The Human Resources Department - Carries out acvies related to human resources management (recruitment and selecon, personnel records, vocaonal training, performance evaluaon, etc.) and coordinates the acvity of the occupaonal health and safety department.

10 THE ECONOMIC DIRECTORATE, subordinated to the Economic in compliance with the reference standards. Also it coordinates Manager, includes: the acvity of the laboratories that test the quality of drinking The Financial Department - Provides the coordinaon and water and wastewater. control of compliance with the financial and cash-flow related THE OPERATIONAL DIRECTORATE, is subordinated to the regulaon, according to legislaon in force. Operaonal Manager, and includes: The Economic Analysis-Tariff Bureau - Elaborates the company's The Water Abstracon-Treatment Department - Provides the revenue and expense budget; defines the tariffs for water and abstracon, the treatment, the storage, the conveying and the sewerage services, and, as well, for other internal acvies. pumping of water. Plus, is in charge with repairs needed in case of The Accounng Department - Ensures that correct and mely malfuncons and leakages that occur in the water supply recording accounng records is carried out, according to network. accounng plans and regulaons in force. The Dispatching Bureau - Coordinates the dispatching acvies The Administrave Department - Provides the in-house of producon processes carried out within the company, in order cleaning, the maintenance and guarding acvity at buildings and to ensure the proper funconing of the water and sewerage facilies included in the company's patrimony; ensures the systems. preparaon of documentaon and compliance with legislaon The Wastewater Treatment Department - Ensures the adquate related to civil protecon. operaon of installaons, equipment and machinery within all The Public/Private Patrimony Department - Prepares all legal wastewater treatment plants within the company, with documents for the procurement, registraon and inventory of compliance to quality standards in force for released wastewater. assets included in the company's patrimony. The Network Analysis Bureau - Performs the detecon and The Secretariat-Protocol Department - Provides the secretarial localizaon of invisible water losses on water and sewerage and protocol acvies within the company, manages the networks. company's canteen. The Iași Metropolitan Area Water-Sewerage Department - THE TECHNICAL DIRECTORATE, subordinated to the Technical Provides the repair of water-sewerage networks within the Iași Manager, includes: metropolitan area. The Technical Department - Updates the water-sewerage The Iași County Area Water-Sewerage Department - Provides network maps, using the GIS system; issues the connecon the repair of defects and malfuncons occurring on water- permits (connecon to water and sewer networks); dras the sewerage networks within the Iași county area. planning of machinery and plant programmed repairs and THE COMMERCIAL DIRECTORATE, subordinated to the verifies its execuon; provides the metrological verificaon of Commercial Manager, includes: water meters. The Markeng & Public Relaons Department - Ensures the The Automove and Mechanical Department - Provides the organizaon of acvies regarding the company's image and operaon and repair of the company's vehicle fleet. public relaons. The Technical Works Department - Provides the execuon of The Commercial Department, Iasi Metropolitan Area - Ensures connecon works, as well as all investment works executed on the conclusion of water supply contracts, the water meter water-sewerage networks. reading and the billing of water consumpon for clients within The Electromechanical Department - Provides the execuon of the Iasi metropolitan area. the annual repair program, as well as the execuon of accidental The Commercial Department, Iasi County Area - Ensures the repairs to hydraulic, electric and automated machinery and plant, conclusion of supply contracts, the water meter reading and the within the company. billing of water consumpon for clients in Iasi county area. The Investment-Development Department - Elaborates the The Procurement Bureau - Draws up the Annual Public annual investment program and surveys its execuon, Procurement Plan and ensures the execuon of public The Design Department - Designs the technical projects for all procurement procedures, according to legislaon in force. technical works completed for the company's acvity. The Water Meter Workshop - Provides the management, the The IT&C Department - Provides the funconing of the computer replacement and the repair of water meters, according to network, and, as well, provides and installs the soware metrological specificaons. applicaons used within the company. The Contract Survey And Management Department - Provides The Analysis-Quality Department - Provides the implementaon the management and the follow-up of all contracts concluded by and maintenance of compliance to the integrated management the company, and, as well, the receipt, the storage and the system (quality-environment-occupaonal security-IT security), delivery of goods towards internal beneficiaries. 11 Managed sytems: The operational - in Iaşi County: 76 operational areas area - în Neamţ County: 4 operational areas

Operated systems

Systems currently In the works New systems to be completed via the EU-LIOP projects Main Water Pipeline TIMIŞEŞTI Main Water Pipeline PRUT

12 Operated facilities

Water plants: 1,904 l/s

Re-chlorinaon Water pipes 9 units staons length 81 units 3,809 km

Wastewater treatment Drinking water plants pumping staons 22 units units total capacity 150 425,513 m³/day

Sewer pipes length Wastewater Water tanks pumping staons 1,267 198 162 km units, unități total capacity 172,893 m³

13 Water sources Surface sources

The Moldova Timișeș river bank intake - Provides a 2,400 liters/second flow and supplies Iasi City. The Prut Țuțora river bank intake - Provides a 5,000 liters/second flow towards the Chirița Water Treatment Plant and supplies Iași City and the industry from the Industrial Zone. The Chirița Lake - Ensures a 1,150 liters/second flow towards the Chirița water plant and supplies Iași City and the Iași Metropolitan Area The Prut Caisson - Provides a flow rate of 30 liters/second and supplies the communes of Gorban, Moșna and Răducăneni. The Prut Sculeni Caisson - Provides a flow of 10 liters/second and supplies the communes of Victoria, and Golăeș. The Hălceni reservoir - Provides a flow of 30 liters/second towards Vlădeni water plant and supplies the localies of Vlădeni, Borșa, Iacobeni, Alexandru Cel Bun, Broșteni and Vâlcele. The Tansa reservoir - Provides a flow of 30 liters/second to the Belceș water plant, and supplies the communes of Belceș, , and Gropnița. The Pârcovaci reservoir - Ensures a flow of 30 liters/second towards the Hârlău water plant, supplies the town of Hârlău, and the Pârcovaci, Deleni, Scobinți, Ceplenița and communes. The Tungujei Reservoir - Provides a flow of 30 liters/second towards the Țibăneș water Scan and see plant, and supplies the communes Țibăneș, Tansa, , Dagâța and Mironeasa. „The Timișeș water source” Underground sources

The old Timișeș groundwater abstracon collector (since 1911) - Provides a flow rate of 185-300 liters / second and supplies the Iași city and localies along the main pipeline. The new Timișeș groundwater abstracon collector (1975) - Provides a flow of 450-1,200 liters / second and supplies the Iași City, and the towns of Targu Frumos and . The Zvorăneș abstracon wells field - Provides a flow rate of about 260 liters / second and suplies the Timișeș commune and Iași City. The Verșeni abstracon wells field - Provides a flow of about 130 liters / second and supplies Iași City and the town of Pașcani. The Moțca abstracon wells field - Provides a flow rate of about 180 liters / second and supplies the town of Pașcani. The Cristeș abstracon wells field - Provides a flow rate of about 10 liters / second and serves the Cristeș commune.

The Timișești source, located 103 km away from Iași City, is an abstraction system that draws water from the aquifer layer, in the lower terrace on the right bank of rivers Moldova and Ozana, upstream the Timișești village, Neamț County. Thus, via the two groundwater abstraction collecting systems (an old one and a new one), the drinking water is supplied towards Iași city, and, as well, to the Towns of Târgu Frumos and Podu Iloaiei and a number of communes: Răchiteni, Miroslovești, Ciohăreni, Mogoșești-Siret, Hălăucești, Mircești, Butea, , Bălțați, , Lețcani, Dumești and , in Iași county. 14 The water Water operations, carried out by ApaVital, and sewerage are structured on three directions: system

ABSTRACTION-TREATMENT - Includes the facilies and pipes needed to asbtract, The operaon of water transport and treat the water volumes required for domesc and industrial clients: systems includes the  two depth abstracon systems at Timișeș, together with the ancillary abstracon, the treatment transportaon pipelines, that reach a length of 297.5 km. and the distribuon of  two surface water river bank intakes on Prut River, Tutora locaon, together with 74 km main water pipelines. drinking and industrial  the Chirița water treatment plant. water to clients, at  the pumping staons: Moldova River bank, Păcurari, Aurora, Mijlocu (in the amounts and pressures Timișeș system), and Prut, Chirița, „Ion Creangă” (in the Prut system). required by them.

THE WATER DISTRIBUTION SYSTEM - Is the system of water pipes within Iași City and within towns and localies in operang area. The Water Distribuon Department operates of the pumping staons in the distribuon network and the maintenance of the storage tanks. The water system consists of 3,809 km water Scan and see: pipes, 9 water treatment plants, 150 water pumping staons, 81 rechlorinaon How a water staons and 198 storage tanks. leak is repaired Acvies carried out in the distribuon system are listed below:  permanent maintenance of required flows and pressures, and quality of water supplied to clients.  repairs of all malfuncons and failures that may occur  repairs and rehauling of fings and hydraulic devices  pipe secons washings  replacement of worn-out connecons and pipe secons  checking and detecng hidden losses in manholes, district heang staons, telephone networks.  monitoring water consumpon on micro-sectors.

THE SEWER SYSTEM - Includes the sewer network (length of 1,267 km), and features 142 wastewater pumping staons and 22 wastewater treatment plants. Among these, the largest facility is the Iasi Wastewater Treatment Plant, a mechanical-biological plant, featuring a designed capacity of 4,200 liters/second (processes the incoming wastewater and stormwater).

15 The Water Abstraction and Scan and see: Treatment Department How drinking water is made.

The Water Abstracon And Treatment Departmentdeals with the raw water abstracon, and the pumping, treatment, storage and transportaon of drinking water towards the company's limit of competence. The department is divided into two sectors:  The Timișeș Operaonal Sector  The Water Treatment Plants Operaonal Sector The Timișeș Operaonal Sector operates the following facilies:  The Timișeș groundwater abstracon system: New facility and old facility  The groundwater wells fields: Zvorăneș, Verșeni, Moțca.  The Săbăoani chlorinaon staon  The main pipeline systems: Timișeș-Iași, Moțca-Pașcani, Prut Intake-Iași-Chirița lake  The Timișeș system: drinking water abstracon and distribuon  The Cristeș system: water abstracon, distribuon and wastewater sewers  The Gherăeș system: water abstracon, distribuon and wastewater sewers. 51.2 million m³ The Water Treatment Plants Operaonal Sector operates the following facilies: of water input into the  The Prut-Țuțora River bank intake system (abstracted water) facility  The Chirița lake  The water treatment plants: Chirița, 45.3 million m³ Hârlău, Timișeș, Sculeni, Tibăneș, of distributed Synthec Gorban, Belceș, Vlădeni drinking water  The raw water pumping staons: data Sculeni, Hălceni, Gorban, Tansa, 2018 Timișeș 2 million m³  The raw water supply systems: Pârcovaci - Hârlău WTP, Hălceni - volume of supplied  Vlădeni WTP, Gorban Caisson - industrial water Gorban WTP, Tungujei - Tibăneș WTP 16 The Water Distribution-Sewerage Department Iasi Metropolitan Area

The main acvity of the Water Distribuon-Sewerage The sectors are bounded by the Bahlui River. Secon in the Iași Metropolitan Area consists in the maintenance and operaon of water and sewer networks in Each of these operaonal sectors include 4 working groups: order to provide an efficient and connuous supply of drinking  and industrial water, with compliance to parameters provided two working groups for maintenance of water by specific regulaons in force, within the Iași municipality and distribuon networks. neighboring localies that compose the Iași metropolitan area.  a working group for maintenance of sewer networks. Plus, the department provides the maintenance and operaon  a working group for operaon and maintenance of of pumping staons, booster pumps, chlorine staons and water and wastewater pumping staons and water water tanks, and, respecvely, wastewater pumping staons. storage tanks, respecvely. Within this group there is In order to properly ensure the operaon and maintenance personnel who work in shis (in the main water of the enre water and sewer networks throughout the pumping staons as CUG, Păcurari, Aurora and Chirița) metropolitan area, including Iași City, this departmens is sub- and personnel who work in the mobile day shi (provide divided into two operaonal sectors: the verificaon, the monitoring and the maintenance of  Iași-North Operaonal Sector, facilies with no operaonal personnel, on both sectors, water and sewers)  Iași-South Operaonal Sector,

56 pumping staons 49 storage tanks and and booster pumps buffer tanks

16 chlorine correcon 54 wastewater staons pumping staons

The Water Distribuon- Sewerage Department/ 1,081 km of water distribuon Iasi Metropolitan Area 680 km sewer network, is in charge with the network, out of which: operaon and out of which: maintenance of the following assets: 495 km of drinking water 505 km of sewer network distribuon network in Iași City in Iasi City

586 km of drinking water 175 km sewer of network distribuon network in the in the Iasi Metropolitan Area Iasi Metropolitan Area

17 Scanează și vezi: De ce se înfundă canalizarea?

The acvies of the The Water Distribuon-Sewerage water distribuon networks. Department/Iasi Metropolitan Area fall into two categories:  worn-out pipe and connecons replacement. Acvies specific to drinking water distribuon sector: Acvies specific to the wastewater-sewer sector:  operaon and maintenance of drinking water distribuon  operaon and maintenance of sewerage network. networks.  operaon and maintenance of wastewater pumping  operaon and maintenance of facilies for water staons and ancillary construcons, in order to convey disinfecon (chlorine correcon staons). wastewater to the wastewater treatment plant.  operaon and maintenance of pressure raising equipment  intervenon/repair and maintenance works on sewerage for liing the pressure, and automaon equipment in networks. pumping staons / boosng pumps.  worn-out pipe and connecons replacement.  intervenon/repair and maintenance works on drinking

18 The Water Distribution-Sewerage Iaşi County Area Department

The basic acvity of this department is the maintenance operang personnel (on water distribuon and and operaon of water and sewerage networks, in order to sewerage). provide an efficient and connuous supply of drinking water, according to parameters provided by the specific regulaons in The operang area of the Siret Operaonal Sector force, in Iasi County. comprises the town of Pașcani and the rural area including the In order to ensure proper networks operaon and communes of Moțca, Hărmăneș, Todireș, Stolniceni- maintenance in the enre Iasi county area of Iași, this Prăjescu, Mogoșeș-Siret, , Mirosloveș, Ciohorăni, department includes three operaonal sectors: The Siret Hălăuceș, Mirceș and Ruginoasa. Operaonal Sector, the Prut-Bârlad Operaonal Sector and the Bahlui Operaonal Sector. The operang area of the Prut-Bârlad Operaonal Sector Each of these operaonal sectors consists of four working comprises the rural area formed by the communes of Prisăcani, groups: Țuțora, Horleș, Voineș, Mogoșeș, Gorban, Răducăneni,  two working groups for maintenance of drinking water Moșna, Vlădeni, , , Andrieșeni, Fântanele, distribuon networks. Șipote, Probota, Ipatele, Mironeasa, Dagâța and Tansa.  a working group for the maintenance of sewerage networks. The operang area of the Bahlui Operaonal Sector  a working group for operaon and maintenance of comprises the towns of Tg. Frumos, Podu Iloaiei and Hârlău, water and wastewater pumping staons and drinking and, as well, the rural area formed by the communes Balș, water storage tanks, respecvely. The group includes Bălțați, Belceș, Brăeș, Butea, Ceplenița, Horns of the Goat, personnel that ensure the operaon of strategic water Cotnari, Deleni, Doljeș, Dumeș, Erbiceni, Gropnița, Ion pumping staons, and, as well, the personnel needed to Neculce, , Romanes, Scobin, Strunga, Movileni, verify, monitor and maintain the facilies with no local Costeș and Sagna.

70 pumping staons 93 storage tanks and booster pumps and buffer tanks

67 chlorine correcon staons 143 wastewater The Metropolitan pumping staons Iasi Zone 25 wastewater Water-Sewerage Department operates treatment plants and maintain the following facilies: 1,503 km of drinking 395 km of water distribuon network sewerage network

19 Connected departments The Technical-Building Works Department

The Technical-Building This department is part of the Technical Directorate and completes investments with ApaVital own funds (water pipes replacements, water-sewer extensions), and Works Department also all water-sewer connecons for third party beneficiaries (natural or legal persons). The Design The department is composed of five working groups and a Technical Bureau. The five groups are structured as follows: Department  three construcon-assembly teams, each made out of ten workers, headed by an engineer.  a team of "infrastructure reinstatement", composed of six asphalt laying The Metrology workers, headed by an engineer. Laboratory  an asphalt mixture producon team, composed of three workers, headed by an engineer. The Technical Bureau is composed of five engineers, one of them being the The Permits-GIS Quality Control Officer. The Head of the department is also in charge with the works Bureau execuon („Responsabil tehnic cu execua”, RTE). Concerning the acvity, if in 2002 some 600 water-sewer connecons were completed, in 2018 a number of over 4,500 were completed. The Auto-Mechanical Also in 2018, approximately 20,000 meters of pipes, with diameters between 63 Department mm and 355 mm, were layed, an area of over 1,500 m² was refurbished with les and over 600 tons of asphalt mixture was cast on roads. As a producon value, in 2018, this department brought to the ApaVital budget a revenue of about 5 million lei. No. of Year Connecons Number of water-sewer connecons completed (w+s) by the Technical-Building Works Department 2018 4193 4500

2017 3238 4000

2016 2594 3500

2015 2241 3000

2014 2028 2500

2013 1119 2000

2012 1320 1500

2011 912 1000

2010 1083 500

2009 1159 0 2008 1350 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20 Investment works:  Extension of water supply in the villages of the commune  Extension of water networks in commune, Iași Țibăneș. county.  Extension of water network and connecons in Cristeș  Rehabilitaon and extension of water networks in Vlădeni village, Holboca commune. commune, Iași county.  Extension of water network in Scobinți commune.  Replacement of water networks and connecons in the area  Water supply of Osoi village, commune. delimited by Cicoarei street - Arhitect Berindei street.  Replacement of water network and connecons  Replacement of water network and connecons in Plopii reinstatement, Cantemir area. fără soț street - Bucium.  Extension of sewerage network on the streets Prof. Petre  Water supply network Lunca Cetățuii-Cercu (including a Culianu, Plopilor and Aleea Zambilelor, in commune of Valea pumping staon). Lupului.  Replacement of water network and connecons in Nicoriță  Extension of water systems in Bârnova commune. street.  Replacement of water networks and repair of connecons  Replacement of the water network at Bucium pumping on streets Ceferișlor, Mihai Eminescu, Izvoarelor and staon, the „IVV” tank, Iași. Dragoș Vodă, Pașcani Town.  Extension of water network in village Iazu Nou, Sipote  Rehabilitaon of the water system in streets Cezar Petrescu, commune. Sportului, Grădiniței and Aleea Grădiștei, in Pașcani Town.

The Design Department

The Design Department dras the technical design for all projects carried out by the company and also for third pares, based on contracts concluded between them and Apavital. The Design department is subordinated to the Technical Manager, is coordinated by a department head and includes 18 employees. The mission of the Design Department Project designs achieved by the Design department in  designing technical construcon projects. 2018, as requested by the Investment Department  providing a follow-up of technical projects involving the The designed projects achieved by the Design department in company's facilies, from execuon stage up to 2018, as requested by the Investment Department, are listed commissioning stage. below:  water facility, Măcăreș village, Prisăcani commune. The design working procedure is applied to all  main water pipelines and distribuon networks in implemented projects, in the following fields: Șoseaua Bucium and Șoseaua Bârnova areas, including  Installaons (water, sewer, electrical, gas) the rehabilitaon of the 500 m³ Vișan tank.  Water supply and sewerage  rehabilitaon of water networks in the Ciric leisure area.  Automaon  draing of technical documentaon needed for a permit  Construcon from the Romanian Waters Naonal Administraon/ Siret  Roads, systemazaon Waters Directorate.  Upgrading/refurbishment  extension of sewerage network and connecons for residenal buildings located in Mocanului street, Iași City.

21 The Metrology Laboratory

The Apavital Metrology Laboratory has a 15 years carried out, the laboratory parcipates, aer each experience in the field, providing periodic metrological authorizaon, in a program of interlaboratory benchmarking, verificaon services, including post-repair verificaons, for cold set by the Romanian Laboratories Associaon (ROLAB), the and hot water water-meters, with nominal diameters between results obtained being very good. 15 and 150 mm included. Within the Metrology Laboratory are working four At this moment, the Metrology Laboratory holds authorized metrological verifiers, which operate three modern authorizaon no. 040-18, valid unl 11.07.2020, issued by the gravimetric and volumetric installaons, for metrological Romanian Bureau of Legal Metrology, according to the Govt. verificaon of water meters. The installaons are calibrated by Decision no. 20/1992, regarding the metrology acvity and the Naonal Instute of Metrology of Bucharest and/or by the standard SR EN ISO 17025: 2005 "General requirements for the Regional Laboratory within the Iasi County Metrological competence of tesng and calibraon laboratories", based on Authority. The laboratory performs metrological checks for which the quality management system of the laboratory was approximately 800 water meters/month, both for cold and hot implemented, maintained and improved. water. For internal customers, the demand for water meters for In order to ensure the quality of metrological verificaons the enre operang area is ensured.

In 2018, the Apavital Metrology Laboratory verified a number of 10,899 water meters, out of which 10,057 were declared metrologically compliant.

22 The Permits-GIS bureau

The acvity of this bureau is structured on two categories, as it follows:  Issuance of water/sewer connecon permits and issuance of site permits  Creaon and updang of databases in the GIS/NET Set computerized system.

4,147 site permits 9,314 water/sewer were issued connecon permits were issued 1,594 work 824 esmates and water-sewer quotes were connecons produced idenfied on field

34 archived bibliographic ACTIVITY materials and document DATA FOR idenficaon 2018

1,445 maps scanned, drawn and printed

128.7 km of networks introduced in the GIS system

2,278 110 responses to GIS-related water/sewer connecons requirements (processing, introduced in the GIS system access and formang)

23 The Auto-Mechanical Department

The mission of this department is to ensure and maintain the  providing an acve parcipaon in the invesgaon of company's vehicle fleet in order to provide efficient water and traffic accidents, in co-operaon with the Road Police; sewerage public services, in compliance with the key  maintaining all vehicles in a proper state of funconing; performance indicators assumed by the company and observing  carrying out the contractual relaons with external the financial plans, and the correct relaons with clients, for the partners that provide services specific to the automove internal development and processes organizaon. The tasks field. assigned to the Auto-Mechanical department play an important role in ensuring the overall funconing of the company at opmum performance parameters, that is providing a high efficiency for the intervenon teams that move to locaons Department structure, vehicles and personnel: where works on water-sewage networks are performed.  Vehicles: 262 units  Personnel: 99 employees Thus, the acvies related to the transportaon-logiscs area include a series of acons, respecvely:  ensuring the vehicles needed in order to constantly supply materials and equipment at working points, both for The distribuon of vehicles and personnel within the logiscal support of investment works carried out, and, as department is as follows:  Technical subdepartment: 4 employees; well, for damages repair acvity;   operang the company's vehicle fleet, with compliance Team 1 operaon: 115 units, 10 employees (operate the vehicles, respecvely automobiles and ulity vehicles); to all technical, economic and legal required condions;   systemac verificaon of the way how vehicles and Team 2 operaon: 47 units, 41 employees (operate the machinery are used; special ulity and special purpose vehicles: towing  ensuring the proper and efficient loading of vehicles and vehicles, truck-mounted cranes, front loaders, truck- the raonal and efficient use of labor force; mounted sewer cleaners, bulldozers, backhoe-dozers,  tracked diggers, tractors, trailers, truck-mounted welding establishing opmal transport routes for the vehicles, groups, motocompressors); with full observance of raonality criteria and minimizing  the consumpon of fuel and spare parts; Team 3 operaon: 103 units, 29 employees (operates  automobiles, special ulity vehicles, dump trucks, obtaining all documents and permits necessary for the tractors, trailers); operaon of the company's vehicle fleet;   Team 4 vehicle/machinery repair: 15 employees - ensuring a sound co-operaon with authories such as performs maintenance and repairs of the vehicle fleet, the Romanian Auto Registry, the Romanian Road and of all ancillary machinery for infrastructure Authority, the Road Police and with all other instuons reinstatement and intervenons in the water-sewerage empowered to ensure the legality of vehicle operaon ;  network (compacng machinery, asphalt and concrete idenfying the defects in the company's vehicles and cuers, pumps, generators). taking all necessary measures to efficiently remedy them; Evoluon of vehicle fleet 2017-2019 Special ulity Other special Digging machinery Automobiles vehicles vehicles Truck mounted and auxilliary N1, N2, N3 N2, N3 cranes/Towing (compactor, compressor, Tractors Trailers Total fleet M1 (mixed, pper-trucks, (truck-mounted vehicles welding grup, trucks) sewer cleaners) front loader) 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 3 3 3 25 24 24 121 127 133 66 74 76 15 15 15 (2/1) (2/1) (2/1) (18/7) (18/6) (18/6) 3 4 4 5 7 7 238 253 262

24 Technical and IT & C DEPARTMENT IT equipment

The IT&C department is a support service for all processes and acvies that IT & C DEPARTMENT take place in Apavital and its main tool is the Integrated Informaon System, an infrastructure that allows ApaVital Iași management to opmize the funconing of all organizaonal structures, at all levels, thus supporng transformaons within the The Integrated company. This modern, integrated system is capable of providing excellent support Informaon System for an efficient acvity in company ApaVital, helping the other groups in achieving the mission and objecves included in the Strategic Development Program. The IT&C service is subordinated to the Technical Directorate and controls the The GIS subsystem Hardware Infrastructure Bureau. The IT&C posions are as follows:  an IT&C department head; six IT specialists: one analyst; five programmers;  a head of the Hardware Infrastructure Bureau; a system engineer; a database The document and data administrator; two technicians specialized in data and telephone networks. flow management

The Integrated Informaon System subsystem ApaVital has implemented a very high-performance Integrated Informaon System, able of undertake, manage, process and distribute informaon of very The Informaon different nature, complexity and importance. The system is composed of the following subsystems: Security Management  the economic control and management E.R.P. integrated subsystem; System  the documents management and data flows subsystem;  the electronic banking subsystem (for online payments and cashings);  the customer relaons management subsystem. Hardware Infrastructure  a SCADA subsystem for monitoring and control of water-sewerage networks; Soware Infrastructure  the geographical informaon subsystem (G.I.S.);  specific various computer applicaons focused on: project management, generaon and management of works esmates/quota/bills of quanes, surveillance and access control, monitoring of company's vehicles acvity, reading of clients watermeters, maintaining interfaces with applicaons of public and state instuons, the www.apavital.ro external portal... etc.

All of these subsystems and applicaons are based on an Intranet infrastructure with local networks, connected by radio, opc fiber and GPRS. Applicaons are ran on 3 servers, are developed and tested on 4 servers, and the computers, the network users and all security-related applicaons are implemented and ran on 4 servers and a number of acve network components: switches, routers.

25 SCADA GIS CROS ERP

Approximately 350 users are registered in the APAVITAL domain, out of which 300 are also users of the CROS E.R.P. system.

The Document Electronic Banking Management BI

26 The GIS Subsystem Hardware Infrastructure The Geographic Informaon System integrated in the  19 local networks: head office, producon base, water Apavital informaon system allows to increase the efficiency and treatment plants, pumping staons, wastewater quality of services provided to clients, using analyzes of the treatment plants, laboratories and cashing desks. following types:  servers, workstaons, laptops, tablets, prinng devices,  idenficaon of valve/valves used to isolate faulty pipe copiers, scanners etc. secons, or those secons which are programmed for  communicaon equipment: cable, sockets, connectors, maintenance work; hubs, switches, routers, racks, non-interrupble power  determining the areas impacted by valve maneuvers and supplies, cooling and temperature maintenance automac generaon of lists with affected clients; devices... etc.  issuance of operaonal decisions/alerts based on importance degree (contractual requirements); Soware Infrastructure  analyzing the possibility of offering services at levels Computer applicaons, CAD, GIS, SCADA, ERP, specific requested by new customers, provided that supply applicaons for other acvies. parameters for the exisng customers are not affected;  simulaon of system funconing (modifying the parameters) based on WHAT IF type scenarios, which Investment effort allow the company to idenfy deficiencies in the system provided by Apavital architecture and to develop repair and replacement strategies. in the IT system

The document management and data flow 1200000 subsystem Is based on MICROSOFT SHAREPOINT ENTERPRISE 1000000 technology and allows the implementaon of various applicaons:  Sites for each hierarchical level; 800000  I.M.S. documentaon;  Archive of commercial documents; 600000  List of IT&C requests;  the legal documents library;  the APAVITAL registrar's office 400000 Informaon Security Management System 200000 The company aims to protect its own informaon and also all clients' data. To achieve this objecve, the company has implemented an Informaon Security Management System, in 0 5 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 9 9 9 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 .9 .9 .9 .9 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 accordance with the requirements of standard SR ISO / IEC 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 27001: 2013 (ISO 27001:2013).

27 The Analysis-Quality department within ApaVital belongs to Quality the Technical Directorate, and provides the following activities:

The drinking water 1. The obtaining of operang permits (public health, water and laboratory environment management); 2. The obtaining of operang license from the Naonal Regulatory Authority for Public Ulity Services (Autoritatea Națională de Reglementare The wastewater pentru Serviciile Comunitare de Ulități Publice - A.N.R.S.C.). Plus, the laboratory department dras all quality reports that are to be submied to instuons such ARSACIS, state instuons (Territorial Administrave Units), the Iași County Council), NGOs, the Environmental Authority, the Neamț County Council, the Environmental Fund Administraon, the Public Health Instute, the Naonal Stascs Office, the Public Policy Instute, etc .; 3. Implementaon of the Integrated Management System, cerficaons (ISO9001 - Quality, ISO14001-Environment, 18001-Occupaonal Health and Safety, 27001-Informaon Security, 22000-Food Security and SA 8000 Social Responsibility) issued by the S.R.A.C. (Societatea Română pentru Asigurarea Calității, Romanian Society for Quality Assurance) and 17025: 2005, for the laboratories accreditaon; 4. Performing laboratory tests ("control monitoring") for drinking water, in all operaonal areas, as legal obligaons and on clients' requests, in the Drinking Water Laboratory; 5. Performing laboratory tests for processes that take place inside the Iași wastewater treatment plant and for the monthly monitoring of wastewater plants treatment plants in all operaonal areas and on clients' requests, in the Waste Water Laboratory.

28 The Drinking Water Laboratory

Ensures the sampling and the monitoring of drinking water  updang of data on the SHAREPOINT plaorm quality, in accordance with Law 458/2002, republished in 2017, developed for this department; regarding the drinking water quality, the Decision no. 974 of 15-  issuing of test reports/bullens; 06-2004 for the approval of regulaons aimed to the supervision,  filling in the CROS applicaon with data related to sanitary inspecon and monitoring of drinking water quality and delivery bills for the monthly internal selements; the Authorizaon Procedure of drinking water producon and  filling in the forms needed for the selement of costs distribuon. related to sampling and water samples transportaon and The laboratory has implemented the quality management tesng, for external clients; system according to European standard SR EN ISO/CEI 17025:  specific acvies for the maintenance of workspaces, 2005 "General requirements for the competence of tesng and laboratory equipment, as well as the provision of all calibraon laboratories" and is registered with the Ministry of necessary resources for the good performance of the Health in the Registry of laboratories for drinking water quality laboratory's acvity; monitoring and sampling, according to Cerficate no.  preparaon of documents for the procurement of 503/30.08.2018m issued by the Ministry of Health. laboratory equipment, accessories and laboratory The implemented management system covers the acvies supplies, glassware and laboratory reagents; carried out within the laboratory, as it follows:  ensuring the use of appropriate methods and procedures  water sampling and sample tesng in order to solve for all tests and/or calibraons, including sampling, complaints received from clients, regarding handling, transport, storage and preparaon of items noncompliances of water quality; used for tesng/calibraon objects and, when necessary,  water sampling and sample tesng in order to solve validaon of analycal methods used, esmaon of noficaons/warnings received from the Public Health measurement uncertainty, as well as stascal techniques authories of Iași and Neamț Counes, regarding for analyzing test/calibraon data; noncompliances of water quality;  periodic evaluaon and analysis of tesng acvies  water sampling and sample tesng for raw through internal control (control charts, duplicate water/emissaries, given the legal requirement that quality samples) and external control (parcipaon in evaluaon control tests must be performed only by schemes of internaonal performance); accredited/cerfied laboratories;  ensuring the validity of results through control acvies,  water sampling and sample tesng, following the intermediate laboratory equipment and laboratory extension of Apavital operang area (taking over of other glassware checks, in order to calculate the measurement water systems); uncertainty;  water sampling and sample tesng for water provided by  calibraon of fixed laboratory equipment and portable Apavital own sources, in order to use them as drinking analyzers; water sources;  management and follow-up of the contracts related to  water sampling and sample tesng in order to opmize products/services, concluded for the laboratory acvity; the water treatment processes in some water treatment  developing and applicaon of the strategy of staons, that do not have their own laboratory; implementaon, cerficaon and maintenance of the  water sampling and sample tesng aer tanks and registraon of the water laboratory at the Ministry of networks cleansing and sanizing procedures Health, in accordance with standard SR EN ISO / CEI  water sampling and sample tesng when ApaVital is 17025:2018 "General requirements for the competence commissionning/taking-over new investments, facilies, of tesng and calibraon laboratories"; storage tanks, new drinking water secons;  preparing the transion of laboratory's implemented  water sampling and sample tesng for external management system from ISO 17025: 2005 to ISO customers. 17025:2018.  daily updang of the database in wrien and electronic format; 29 The Waste Water Laboratory

The acvies of the Waste Water Laboratory are related to Quality assurance and control of tesng results the tesng of wastewater, surface water, underground water quality and sludge, both for internal customers (producon units The laboratory is constantly concerned about ensuring the within ApaVital) and for external customers (natural or legal quality of the test results by: persons). The laboratory has implemented a quality  drawing up and implemenng the internal control plan management system according to the European standard SR (the use of cerfied reference materials, control charts, EN ISO 17025: 2005 "General requirements for the competence repeated analyzes) and the external control plan of tesng and calibraon laboratories" and, since 2012, it has  parcipaon in laboratory performance evaluaon been accredited by the Romanian Accreditaon Associaon - schemes (interlaboratory comparison), organized RENAR for performing specific tests. The implemented internaonally. management system covers all acvies performed in the In 2018, the Waste Water Laboratory was involved in the permanent premises of the laboratory, which is located within performance evaluaon scheme Aquacheck 527, organized by the iasi City Wastewater Treatment Plant. LGC Standards, as regards 12 indicators (CODF-Cr, TSM, The laboratory features specialized personnel and the detergents, Cr, Fe, Mn, Cu, Pb, Ni, Zn, phenol, sulphates), for adequate laboratory equipment, necessary to carry out the which all results were compliant. current tasks regarding the tesng acvity. The laboratory developed and implemented physical, chemical and biological tesng methods for a number of 60 Scan and see: parameters (concerning wastewater, surface water, underground water and WWTP sludge). Out of these 18 test ApaVital Waste methods (24 quality indicators) are covered by a RENAR Water Laboratory. accreditaon (www.apavital.ro).

30 Investment- Development

The Technical Directorate of ApaVital includes the Investment- Development Department, a hierarchical unit that includes both the Project Apavital funds Implementaon Unit (PIU) and the Site Supervisors Bureau. The Investment- In 2018, works Development Department features a number of 20 employees. amounng a total of The department's role and mission is the management of the investment 14,882,889 lei were projects listed in the ApaVital Investment Program, financed from company's complete own sources and from external sources, with all the related stages: defining the investment need and opportunity, the draing technical and economic documentaon, elaboraon of the substanaon notes and the project External funds approval decisions, ensuring the investment financing, preparing the Investments completed in tendering process, the bid evaluaon process and the contract awarding, the last 20 years: ensuring the supervision of execuon and arranging for the works/services  EU-ISPA: 46,600,000 taking-over process. euro Investments completed from Apavital funds  EVD Project (Grant from the Government of the In 2018 the completed works Netherlands): 1,500,000 reached an amount of 14,882,889 euro lei, and the next systems were Water networks completed  commissionned: within operaonal area SOP Environment 1 + Water networks - 39.9 km out SOP Environment 1- of which:  Savings: 410,000,000 lei Iași city: 9% Iași City  Metropolitan zone: 31%, 9%  LIOP: 174,000,000 euro in localies:  Iași  Holboca Neamț County Metropolitan Zone  Iași County: 11%, 49% 31% Scan and see: in localies: Extension and  Iași County Deleni rehabilitaon of  Pașcani 11%  Moțca water and wastewater  Neamț County: 49%, infrastructure in Iași County. in localies:  Timișeș  Sagna

31 Sewer networks 4,3 km out of which: Sewer networks completed  Iași Metropolitan Zone: 45% Iași within operaonal area  Iaşi County: 55% Iași County Metropolitan  Holboca 55% Zone  Aroneanu 45%  Deleni

The main works commissionned in 2018 were: Deleni commune, Iași county (1.7 km of drinking water  Replacement of water networks in Blvd. Poiers, Manta network and 2.4 km sewr network); Roșie street, Soseaua Bucium, secon Blvd. Poiers -  Water supply derived from Iași City water systems in Sagna Pumping staon (2.9 km of drinking water network); commune, Neamț County (5 km drinking water network);  Increasing the water system efficiency in Moțca commune  Extension of water network from ApaVital system and (2.3 km of drinking water network); sewers in Șorogari village, Aroneanu commune (1.6 km  Extension of water networks in Holboca commune (4.3 km water network and 0.6 km sewer network); of drinking water network);  Extension of water networks in the villages of Timișeș  Sewer network and water network, stage I, on streets commune, Neamț County (14.5 km water network). Poarta Curi, Dimitrie Cantemir, Cramei and Aleea Teilor in

Investments with external funds

SOP Environment I ISPA: and SOP Environment I Savings 46,600,000 euro 410,000,000 lei

Investments completed during the last 20 years under externally nanced programs

EVD Project (Grant provided by the Government of the Netherlands) LIOP 1,500,000 euro 174,000,000 euro

32 ISPA

Name: „Improvement of water and wastewater systems in Project scope: order to provide compliance to European standards in the field  Rehabilitaon of the Iași City wastewater treatment plant, of water quality and environmental protecon in Iași City” Line II Water and Sludge Line; Implementaon period: 2000-2010  Rehabilitaon of the Chirița water treatment staon; Project value: 46.6 million euro  Upgrading of the Păcurari, Aurora and Mijlociu pumping Funding source: staons;  33.9 million euro - European Union grant  Rehabilitaon of the Chirița pumping staon;  12.7 million euro - EBRD loan  Technical assistance provided for the ISPA project. THE EVD PROJECT

Name: „Implementaon of a monitoring system in the water chemical tests; distribuon network in Iași City”  mounng of electromagnec flowmeters in order to Implementaon period: 2007 - 2008 measure the input flow in monitored areas; Project value: 1 million euro  mounng (replacement) of isolang valves for the Funding source: monitoring and pressure zones, and, as well, in order to  1 million euro - grant from the Government of the ensure a controlled conveying of water in the monitored Netherlands, through the EVD execuve agency. system. Project scope:  mounng of probes (analyzers) in 17 monitoring areas, in Name: „Implementaon of a warning system for raw water order to provide informaon on water parameters: quality and development of a strategy for asbtracted water turbidity, residual chlorine, conducvity, ammonia, quality management, on the Prut and Moldova rivers” pressure; Implementaon period: 2011 - 2012  purchase of mobile analyzers and kits for fast physical- Project value: 500,000 euro. SOP ENVIRONMENT I

Name: „Extension and rehabilitaon of water and wastewater  Rehabilitated tanks - 1 unit infrastructure in Iași County”  New pumping staons - 5 units Implementaon period: 2007 - 2016  Water treatment plant (rehabilitaon) - 1 unit Project value: 350 million lei Project scope: Wastewater indicators Drinking water indicators  Extension of sewer networks - 130,797 meters  Rehabilitaon of abstracon systems - 2 units  Rehabilitaon of sewer networks -28,890 meters  Pipeline extension - 5,409 meters  Discharge wastewater pipes - 19,709 meters  Pipeline rehabilitaon - 6,351 meters  New wastewater pumping staons - 36 units  Extension of distribuon networks - 27,335 meters  Refurbished wastewater pumping staons - 3 units  Rehabilitaon of distribuon networks - 53,326 meters  New and refurbished wastewater treatment plants  New tanks - 2 units (934,000 PE, 31,800 PE, 19,000 PE and 17,400 PE) - 4 units

33 SOP Environment - Savings

Name: „Investments for the operaon and maintenance of  Pipelines rehabilitaon - 2,702 meters water systems in the operang area of Regional Operator  Rehabilitaon of distribuon networks - 12,819 meters APAVITAL S.A. Iași”  New tanks - 3 units Implementaon period: 2015 - 2016  Refurbished tanks - 9 units Project value: 60 million lei  New pumping staons - 3 units Project scope:  Rehabilitated pumping staons - 4 units Drinking water indicators  Water treatment plants, rehabilitaon - 2 units Wastewater indicators  Pipelines extension - 15,677 meters  Extension of sewer networks - 1,405 meters LIOP

Name: „Regional Project for the Development of Water For Iasi county, around 200 million euros were alloted, and and Wastewater Infrastructure in Iasi County between 2014 the investment costs will reach about 175 million euros. and 2020” The project has an implementaon period between 2014 Implementaon period: 2014 - 2020 and 2020 and includes 13 works contracts and two service Project value: approximately 174 million euros contracts (Technical Assistance and Audit). The project scope : The scope of works contracts refers to: Project is aimed to human agglomeraons that comply to  Abstracon works: main water pipelines (new pipelines the following condions: a distance between localies of less and rehabilitaon); than 200 meters or a populaon of more than 2,000  Water treatment plants: new chlorinaon staons and inhabitants. rehabilitaon of exisng ones; The localies of the enre county are targeted. The  Works on distribuon networks: pumping staons, investments are mainly focused on water supply for these tanks, distribuon networks (including connecons); agglomeraons, the compleon of main water pipelines, the  Works on sewer networks: sewer networks (including construcon of tanks, and new sewer networks and connecons), and wastewater pumping staons ; wastewater treatment plants.  Works in the sector of wastewater treatment plants: The regional projects that are to be funded during the new plants and rehabilitaon of exisng ones; 2014-2020 planning period will address both the needs of  Other facilies related to investments. water sector in urban agglomeraons, where the impact on The short list of investments comprises 27 agglomeraons, environment is usually greater and where beneficiary and the investments mainly include water supply to these populaon is more numerous, and, as well, those of rural areas. agglomeraons, construcon of new water pipelines, The priorizing of investments in the project area will also take construcon of tanks and, as well, sewer networks and into account the commitments assumed by Romania through wastewater treatment plants. the Accession Treaty. An essenal goal of these regional ApaVital concluded the service contract no. 9670 / projects is to promote a greater efficiency and quality in the 07.03.2016 with the consulng firm S.C. EPTISA ROMANIA process of providing local public services, through investments S.R.L., contract with a price of 19,491,800 lei, and with an and the promoon of independent, well-coordinated and implementaon period of 74 months. Under this contract, the financially sustainable operaons. Consultant is in charge with preparing the necessary

34 documents in order to obtain a co-financing from the European  elaboraon of a cost-benefit analysis, and a feasibility Union for water and wastewater infrastructure works. study; The contract is structured in two stages:  elaboraon of project designs and details of execuon,  STAGE I - Preparing the Applicaon for Financing, including the documentaon needed for the Tender Documentaon, Technical Projects, and obtainment of all permits and the documentaon Execuon Details - contract price is 9,254,170.00 lei; needed for the issuance of the construcon  STAGE II - Project management and Supervision of authorizaon; works contracts - contract price is 10,237,630 lei.  elaboraon of tender documents for each type of From the date of Commencement Order (March 28th, contract and for each works contract idenfied in the 2016), Stage I is in progress. Stage II will begin aer the procurement strategy. approval of the Financing Applicaon. In Stage I, the Consultant tasks are related to the following On March 10th, 2017, ApaVital Iași submied to the LIOP acvites: Managing Authority the financing applicaon by which the  elaboraon of topographic studies for water supply company requested the financial resources necessary to networks (length of about 292.7 km) and sewer finance the Technical Assistance contract. networks (length of about 428.1 km);  elaboraon of topographic studies for water main On April 26th, 2017, the LIOP-MA approved the funding pipelines (about 278.7 km in length) and for wastewater applicaon, and on May 26th, 2017, a Financing Agreement collectors/pipes (about 162.5 km in length); was signed with the Ministry of Regional Development, Public  elaboraon of field studies: geotechnical study, Administraon and European Funds, as Managing Authority hydrogeological study, flood study; for the LIOP program.  elaboraon of the instuonal analysis, the sludge management strategy, the study on industrial During 2018 (March and October), ApaVital submied the wastewater discharges; financing applicaon for the second stage of the technical  elaboraon of procurement strategy - in co-operaon assistance contract, and, as well, in order to ensure the with the Regional Operator, 13 works contracts have financing of the future LIOP works contracts. been idenfied, and for them Tendering Documen- taon will be prepared, under both Yellow Fidic and Red Following requests for documentaon review, nofied by Fidic contract types (some investment include both the LIOP Managing Authority, ApaVital re-submied the types of contracts); financing applicaon in June 2019.

35 Company ApaVital S.A. Iasi, having as object of activity the drinking water sector (abstraction, treatment, distribution) and the wastewater The economic sector (collecting and treatment) achieved in the last ve years performance the following indicators:

The company's 2014 2015 2016 2017 2018 turnover in 2018 was Total income 159,246,119 lei. out of which: 140,482,429 152,288.945 153,983,201 160,638,350 169,395,398 The net profit achieved Operating in 2018, that reached income (lei) 139,524,190 151,473,112 153,534,374 160,136,101 168,854,724 an amount of 11,371,204 lei, was Financial income (lei) 958,239 815,833 448,827 502,249 540,674 distributed (according Total expenditure to Ordinance no. 126,351,796 136,008,961 138,128,423 145,587,330 155,646,636 64/2001 regarding the (lei), out of which: distribuon of profit in Operational 125,219,579 134,263,135 136,369,298 142,507,620 154,550,833 naonal companies, expenditure (lei) naonal authories and Financial commercial companies expenditure (lei) 1,132,217 1,745,826 1,759,125 3,079,710 1,095,803 with integral or Profit before majority state capital, tax (lei) 14,130,633 16,279,984 15,854,778 15,051,020 13,748,762

and, as well the Corporate autonomous income tax (lei) 2,588,884 3,346,530 3,370,074 2,920,395 2,377,558

„regii”), as it follows : Net profit (lei) 11,541,749 12,933,454 12,484,704 12,130,625 11,371,204

10,624,740 lei - The company's financial statements were prepared in compliance to accounng development fund regulaons in force, to Accounng Law no. 82/1991, republished, with the subsequent amendments and compleons, considering the Order of the Ministry of Public Finance no. 1802/2014 for the approval the accounng regulaons regarding the individual annual financial statements. and the consolidated annual financial 746,464 lei - statements, as subsequently amended and supplemented, and, as well, considering legal reserve the Order of the Ministry of Public Finance no. 10/2019, regarding the main aspects related to the preparaon and submission of annual financial statements and the annual accounng reports of economic operators towards the territorial units of the Ministry of Public Finance. 36 Diagnose indicators

The company's financial posion is reflected by the main diagnose indicators that highlight the company's profitability, solvency and liquidity, as it follows:

2017 2018 Financial return indicators % % Return on capital employed Net prot/Equity 6.8 6.0

Return on assets Net prot/Total assets 3.9 3.5

Operating prot rate Operating prot/Operating revenue 11.0 8.5

Net prot rate Net prot/Operating revenue 7.6 6.7

Solvency indicators % %

Leverage ratio Total liability/Total assets 29.4 24.6

Financial leverage Total long term liability/Total capital 34.0 26.7

Interest coverage rate Prot before interests and taxes/Interest 14.6 15.4

Liquidity indicators % %

General liquidity rate Current assets/Current liability 2.3 2.5

(Current assets-Inventories)/ Fast liquidity rate Current liability 2.1 2.2

Current liquidity rate Current assets/Current liability 3.4 3.7

days days (Trade receivables/ Cashing from clients period Net turnover)*365 days 52.6 50.5 (Trade payables/Material expenditure, Suppliers payment period external expenditure and external 69.0 60.4 performances)*365 days

37 Company's nancial position

As of 31.12.2018, the company's fixed assets recorded a value higher by 9% compared to the beginning of the year. The accounng depreciaon was calculated using the linear method, according to IFRS standards. Growth INDICATORS 01.01.2018 31.12.2018 factor ASSETS

FIXED ASSETS

Tangible assets 204,066,365 215,374,192 1.06

Intangible assets 2,120,040 1,651,550 0.78

Financial assets 11,617 10,683 0.92

A. TOTAL FIXED ASSETS 206,198,022 217,036,425 1.05

CURRENT ASSETS

Inventories 6,443,742 7,640,786 1.19

Trade receivables and similar 45,358,836 45,793,969 1.01

Short term investment 26,966,615 18,089,839 0.67

Cash and bank accounts 28,453,823 35,472,218 1.25

B. TOTAL CURRENT ASSETS 107,223,016 106,996,812 0.998

C. ACCRUED CHARGES 64,225 266,319 4.15

TOTAL ASSETS 313,485,263 324,299,556 1.03

LIABILITIES

CURRENT LIABILITIES

Amounts due to credit instuons 10,345,602 10,301,930 0.99

Advances received on orders in progress 1,326,905 0

Trade payables-suppliers 11,652,234 11,005,440 0.94

Other liabilies, including fiscal liability and those related to social security 8,375,965 7,931,594 0.95

TOTAL CURRENT LIABILITIES 31,700,706 29,238,964 0.92

38 Growth INDICATORS 01.01.2018 31.12.2018 factor LONG TERM LIABILITIES

Amounts due to credit instuons 59,950,279 50,028,888 0.83

Other liabilies, including fiscal liability and those related to social security 399,650 479,668 1.20

TOTAL LONG TERM LIABILITIES 60,349,929 50,508,556 0.84

TOTAL LIABILITIES 92,050,635 79,747,520 0.87

PROVISIONS 6,176,262 6,964,757 1.13

DEFERRED REVENUE 37,771,962 48,729,672 1.29

SHARE CAPITAL AND RESERVES

Share capital 78,872,243 78,872,243 1.00

Revaluaon reserves 16,883,803 16,717,751 0.99

Legal reserves 8,929,161 9,675,625 1.08

Other reserves 61,567,527 72,919,225 1.18

Reported result -118,028 48,023 -0.41

Profit allocaon -778,927 -746,464 0.96

Current result 12,130,625 11,371,204 0.94

TOTAL EQUITY 177,486,404 188,857,607 1.06

TOTAL EQUITY AND LIABILITIES 269,537,039 268,605,127 0.99

The current assets recorded the following evoluon: follows:  inventories went up by 19% compared to 2017;  the revaluaon reserves had a decreasing value of about  the level of total receivables recorded an increasing value by 1%; 1%, the receivables recovery rate at the end of 2018 being  the legal reserves recorded an increase of approximately 8% 99.30% (in 2017 the figure was 95.26%). The average compared to 2017; duraon of receivables cashing in 2018 was 50.48 days,  the “other reserves” indicator shows an increase of while in 2017 this indicator was 52.64 days. approximately 18% compared to 2017.  the cash and cash equivalent at the end of 2018 recorded an Considering the data presented above we can say that amount of 53,562,057 lei, compared with the figure ApaVital's performance is good, and based on sound 55,420,437 lei for 2017, this meaning a decrease of 3.35%. organizaon and professional dedicaon. Our commitment to  development translates into beer services in the field of water If the share capital has not changed, the reserves were as it and sewerage public services.

39 The human resources sector is of major importance in the Human development of company APAVITAL S.A., fact illustrated Resources by the assumed strategic objectives:

Vocaonal training  correlang the movaonal system with the performance system;  implementaon of management by means of objecves and associated performance criteria;  permanent assurance of human resources strategic planning; Assessment of  ensuring the stability of work relaonships; professional  implementaon of connuous training programs;  developing an organizaonal culture conducive to performance. performance These goals are implemented by the 9 specialists that work in the Human Resources Department, serving the company's 1,300 employees (with an average age of approximately 45 years). Occupaonal safety Vocaonal training is a main tool for the development of human resources within company ApaVital, with a posive impact on the performance and the and health increasing of labor producvity. The company's employees are permanently involved in various qualificaon and professional development courses. Thus, over the last 5 years, an average of over 25 hours of training/employee were performed. ApaVital is managing, since 2008, a Vocaonal Training Center and has been accredited since 2011 as a training provider for specific professional occupaons, as water and sewerage installaons operator and pumping staon electro-mechanic (specific occupaons, which were previously listed in the Romanian Occupaons Code, based on the request and documentaon developed by company ApaVital).

The evaluaon of professional performances has already become an acvity with a solid reputaon in ApaVital, having been carried out since 2012. The process is based on a computerized evaluaon system, that includes performance indicators, professional tests and assessments of employees' socio-professional competences. The evaluaon system is improved and periodically reviewed and now is providing results used for:  ensuring the minimum mandatory requirements for reaching the opmal level of labor producvity, in condions of maximum quality, efficiency and promptness;  ensuring the basic documents needed for employees training, in the direcon of correcng any lacks that might occur in the professional training;  creang a basis for objecve criteria needed for employees promoon and rewarding;  validaon of programs used for recruitment, selecon, hiring and connuous professional training;  creaon of employee incenve mechanisms in the direcon of meeng of all assumed performance criteria.

40 The concern for ApaVital employees is highlighted by means of Occupaonal Health and Safety Bureau, whose acvity aims to eliminate the occurrence of work accidents and to provide the control of occupaonal diseases. The department includes a medical office, which provides the full range of medical controls and specific training for the company's employees. The efforts provided by our 4 occupaonal safety specialists, our occupaonal medicine physician (and her nurse) led to an absence of serious work accidents during the last 5 years, and, as well, to a thorough surveillance of employees health.

41 Relations with clients Methods of communication with ApaVital

The communicaon acvity with ApaVital clients is carried out through the Public Relaons/Markeng Department, either by telephone, through the Call Center, directly at the counter or in wring, through the classic postal services and via electronic mail.

Call Center/Contact Center www.apavital.ro Its the place where clients and general public can nofy by telephone any malfuncons that may occur in water-sewerage networks, can submit water meter readings, can request informaon on water bills and can gather informaon related to the issuance of permits and projects. All water cut-offs are noied to clients via the Call Center by means of channels such as SMSender service, the company's webpages, press releases and telephone notes. facebook/ApaVital Data for 2018 343,009 SMS sent 112,223 to clients incoming calls

151,420 112,223 contacts, out of which: In 2018, a number of 151,420 contacts telephone Scan and see: were established with external clients, out contacts How can I of which: 112,223 telephone contacts; 4,691 contact ApaVital? 34,506 at-the-counter contacts; 4,691 34,506 written/ wrien and e-mail contacts. at-the-counter e-mail contects contacts

42 The evoluon over the last 5 years on each contact channel is as follows: CATEGORY 2014 2015 2016 2017 2018 Telephone 78,155 88,703 101,763 104,144 112,223 At-the-counter 17,500 19,026 30,179 34,403 34,506 In wring 2,430 2,988 3,758 4,680 4,691

COUNTER At company ApaVital, the response deadline to peons is 15 working days from the registraon date, according to the provisions of the Management Delegaon Contract. Clients can contact the Apavital officials directly. Thus, the officials will assist them in various procedures, as forms filling, WEBPAGES submial of documentaon or will indicate to clients the simplest Clients may gather informaon about events, scheduled way to solve any other issues related to the water-sewerage sector. works, other aspects of public interest, from the company's website, www.apavital.ro. The website had 2,243,808 views in Data in 2018: 2018. 34,506 direct contacts with clients were established. Data for 2018: 1.749 water cut-offs noficaons The receiving of clients requests, at the counter, takes place in a were posted on Apavital website. high-standard environment, that provides a transparent, pleasant and useful working environment for clients and Apavital officials. The Among other things, on the ApaVital website, the clients may space for client recepon includes three offices dedicated to the find informaon related to procedures needed for the obtainment taking-over and issuing of technical documentaon and an office for of a permit or the concluding of a contract, informaon on the the calculaon of work quotaons and esmates. Each client company's cashing points work program, and the tariffs in force for interested in making a water connecon, a sewer connecon and/or water-sewerage supplied services. Moreover, via the website the in concluding a water-sewerage contract is provided with all clients may request verificaons of water quality, they can submit necessary informaon, starng with the documents that are to be their water meter readings, they can directly pay water bills, they submied, and all procedure stages, unl the conclusion of the can find informaon on Apavital investment programs, or contract. In 2018 the client recepon spaces were modernized, and company's financial data, or they can create an account from where two video screens were mounted in the hall, screens which are they can access the commercial data specific to the property. running videos showing the ApaVital acvity. AUDIENCES WITH EXECUTIVES BY MAIL The clients, in an organized and programmed system, have the Peons received from clients are carefully monitored, in order possibility to directly contact the company's execuves, as regards to prepare and submit answers within legal deadlines. Through e- complex issues, which cannot be solved by other departments. mail, customers can send water meter readings or noficaons to the addresses [email protected] and [email protected], while Data for 2018: clients requested audiences. the address [email protected] is exclusively dedicated to noficaons related to network failures/malfuncons. SOCIAL MEDIA Data for 2018: The Apavital Facebook pages rendered relevant moments from  a number of 2,196 peons were processed; the company's acvity, during or aer the compleon of works,  the average response me to complaints nofied giving the clients both their brief descripon and the operability of to ApaVital was 9.35 days; intervenons teams, the achievements and investments of the  the average response me to noficaons sent to company, the technological processes used in water-sewage ApaVital was 8.80 days; facilies, the acvies of external social responsibility, all in real me.  the average response me to requests sent to Data for 2018: Posts uploaded on the Facebook pages ApaVital was 7.70 days. had an impact of 377,600 people. 43 CONTRACTING OF SERVICES

The contracng and the billing of water-sewerage services The supply of water-sewerage services is performed only is performed through the Commercial Department, which on a contract basis. The categories of clients with which operates according to the following structure: company APAVITAL S.A. concludes contracts are:  Commercial Department - Iași Metropolitan Area -  Economic operators; Deals with the contracng and billing of water services  Public instuons; in Iași city and in the neighboring communes: Lețcani,  Domesc users: natural persons or owners/tenants Ciurea, Bârnova, Tomeș, Holboca, Aroneanu, Valea associaons. Lupului, Rediu, Miroslava and . The conclusion of a contract is made condional on the  Commercial Department - Iași County Area - Deals existence of a final water/sewer connecon permit issued to with contracng and billing of water-sewerage services the applicant by ApaVital and all the documents requested in in the remainder of localies and communes in the Iași the above-menoned forms. County operang area and localies in Neamț County.

Evoluon of contracts number Evoluon of consumpon locaons Year Number of contracts Growth Year Consumpon locaons Growth 2015 67,725 - 2015 72,437 - 2016 73,260 8.17% 2016 76,982 6.27% 2017 79,998 9.20% 2017 83,925 9.02% 2018 86,414 8.02% 2018 90,533 7.87%

Billed water producon Billed sewer water Metering rate Year Cubic meters Year Cubic meters Year Metering rate 2015 24,881,838 2015 21,956,226 2015 99.69% 2016 24,820,892 2016 23,181,532 2016 99.88% 2017 27,872,337 2017 22,654,108 2017 99.92% 2018 26,636,450 2018 23,801,765 2018 99.95%

Billed / cashed amount Year Billed amount (lei) Cashed value (lei) Percent 2015 160,189,724 161,154,222 100.60% 2016 152,221,021 152,631,789 100.27% 2017 164,837,213 157,182,795 95.36% 2018 175,426,777 174,201,407 99.30%

44 The Contract Follow-up and Septic pit drainage department Management department

ApaVital provides sepc pit drainage acvies, at the lowest The Contract Follow-up and Management department is tariffs in Iasi County. Moreover, the company provides services subordinated to the Commercial Directorate and includes two for pipe declogging, sewer washing, sewer manholes cleaning bureaus: and declogging. The services are provided on a request-basis and  The Commercial Contracts Bureau, which coordinates are supported by a contract. The costs of drainage/pipe cleansing the inflow/oulow of goods from the main warehouse, services depend on the type of service provided by ApaVital and these services are provided on an order-basis. The cost of the recepon of materials provided by suppliers and vehicles travel is to be added to the drainage operaon tariff (its the draing of documents for inventory inflow, and, based on the number of kilometers traveled by the sewer- also, the distribuon of materials/good to the cleaning truck). The tariffs for each type of service provided can producon sectors; be found on the company's website, www.apavital.ro.  The Administrave Contracts Bureau, which deals with the management and implementaon of all contracts Water meters replacement and repair for the services provision, products supply and works execuon. Moreover, the bureau manages the Annual Plan of Sectoral Procurement, regarding the direct ApaVital is running a Watermeter Workshop which procurement of products, services and works. provides the following acvies:  water meters replacement and repair;  management of water meter seals; In 2018, this department executed 364 contracts, while the  preparing of water meters for metrological verificaon total value of the goods ran via the main warehouse exceeded (i.e. cleaning, recalibraon of parts, adjustment); 26.1 million lei (figure increases by 8.3% compared to the  replacement of defecve/unusable water meters previous year). (defecve mechanism, illegible index, severe damage, etc.); Public procurement  mounting of remote reading devices;  resizing and replacement of exisng meters, in order to All purchases of products, services and works within ApaVital opmize the rao between the meters sizes and the are carried out exclusively through the Procurement Bureau, actual clients consumpon. which includes a number of 8 employees, experts in public procurement, with extensive experience in enforcement of Data for 2018: specific legislaon.  Water meters replaced within metrological verificaon The acvity of the Procurement Bureau is carried out validity period - 98%; according to the Annual Program for Sectoral Acquisions,  Recovery rate of refurbished meters - 99%; document that lists all the necessary products, services and works  Supplemenng of number of meter remote-reading needed at company level. In 2018, 2,306 direct procurement radio modules with about 10%; notes were solved, out of which 2,071 product notes, 199 services  Implementaon of a pilot project for recording and notes and 36 works notes, totaling 8,156 items purchased collecng data from 160 connecons in Iași County throughout 2018. Also, 77 tender procedures were carried out, Area with a new type of device; during which 279 bids were assessed (bids submied by  Resizing of meters suspected of erroneous measure- ment - operaon achieved at a rate of 100% compared economic enes involved in these procedures), ulmately this to the proposed planning. resulng in the conclusion of a number of 112 sectoral contracts.

45 Social Responsability Events. Activities. Actions. Campaigns.

World Water Day - March 22nd

54 Organized acvies: acons,  The Naonal Project "The Gis of the Earth out of which: - the Water and the Forest", the 6th edion, in partnership with the Iasi Children's Palace, event aended by 223 school students from 15 counes; 44  Street informaon campaign carried out in external collaboraon with the Children's Palace on the route ApaVital - Piata Unirii, when events balloons and flyers on water theme were distributed;  Study visit to the "Chirița" water treatment 10 staon with school students from the Children's Palace, Țibăneș secon - 70 internal school students; events  Contest: „Water in nature - the Danube”, organized in partnership with the „Gheorghe Asachi” County Library in Iași, aended by 50 school students, teams from 1,216 16 high schools in Iași City and Pașcani Town. persons The semi-marathon of Iaşi that visited ApaVital ApaVital aended the 4th edion of the facilies Iași Semi-Marathon, both as a partner, offering tap drinking water to athletes, and as a parcipant (10 runners from the company compeng in the 10 km cross-country race). We have thus contributed to the support of children who want to go to school, the beneficiaries of the project being „Căsuța cu Cireșe” of the „Save the Children” Organizaon and the Pro Ruralis Foundaon

46 External communication activities

ApaVital, 10 years in your life!

On April 24, 2018, ApaVital celebrated ten years of acvity under this name. A decade ago, the Trade Register Office was issuing the registraon cerficate under the name S.C. ApaVital S.A., thus registering the transformaon into a joint-stock company of the former Autonomous Water- Sewerage „regia” (R.A.J.A.C.) Iași. Aer 10 years, the figures bear witness to the evoluon and performance achieved by ApaVital: the operang area has increased and our clients have become more numerous.

The „Expo Apa 2018” event

On May 14-16, 2018, ApaVital aended with an anniversary stand the anniversary edion of the Regional Danube Water Forum for Eastern Europe („Expo Apa”), which was held at the Parliament Palace in Bucharest. The specialized exhibion "Expo Apa" has reached its 20th edion, while in their presentaon stand ApaVital highlighted the 10 years of existence and the achievements of the company under this tle. The Regional Water Forum represents the most important annual event in the water sector, the exhibion including stands of specialized suppliers, designers and consultants in the field of water, where equipment and technologies were exposed, and, as well, stands of the ARA Territorial Commiees (ARA, Asociaa Romana a Apei, the Romanian Water Associaon)

„I know and I apply”

During May 18-20, 2018, ApaVital parcipated as a partner in the Naonal Compeon „I know and I apply,” the 6th edion of Iași, organized by the "Gh. Asachi” Technical College "Gh. Asachi“, the Iasi Labor Inspecon Inspectorate and the Iași Territorial Labor Inspectorate. The compeon was held on 5 secons, involving 250 school students and over 50 teachers. The aim of the compeon was to develop the skills and competences of today's school students, future workers in the field of occupaonal safety and health, with the aim of reducing the number of work accidents.

47 External communication activities

Children's Cross Country contest

ApaVital parcipated as a partner in the Children's Cross Country contest, organized on the „Emil Alexandrescu” stadium in Iași on June 1st, 2018. About 1000 children aended the event, accompanied by parents or supporters, and ApaVital provided the water needed for the hydraon of the lile athletes. The event aimed to encourage the pracce of sports among children by organizing this sports compeon, which was in its first edion. The acon was organized by the „Save the Children” Iași Associaon, the Iași County School Inspectorate, the Iași Children's Palace, the Iași Municipality, the Iași Sports High School, the Iași County Gendarmes Inspectorate, and the Police Internaonal Associaon (Romanian Department, Region 3, Iași). World Environment Day - water tasting competition

ApaVital and the “Gh. Asachi” Library Iași celebrated on June 5th, 2018, for the fih consecuve year, the World Environment Day, by organizing a water tasng compeon. The acvity took place at ApaVital headquarters. This me the "sommeliers" were the high-school students of the 10th grade, from the department "Natural resources and environmental protecon", from the "Vasile Adamachi" Agricultural and Food Industry College of Iași. The students watched documentary films regarding the Chirița treatment plant and the Dancu wastewater treatment plant, an opportunity for future specialists to obtain informaon on the funconing of a drinking water supply system and on the process of water treatment from the main pipelines to public consumpon. Exchange of know-how

This event was about an inter-instuonal collaboraon in projects - exchange of good pracces, acon in which ApaVital was involved on June 6th, 2018, together with the school students from the department "Natural resources and environmental protecon" from the "Petru Poni" High School of Technology of Iași. The exchange of good pracces and experiences, as well as the processes of transformaon of society registered in the last years, the transion to a society based on knowledge and the change of industrializaon systems, represent new challenges for the educaon and training system. By ensuring access to informaon, a high level of knowledge and qualificaon is acquired. The acon was part of the project "Library of the trees", iniated by the County Library "Gheorghe Asachi" Iași and achieved in partnership with ApaVital, the Faculty of Horculture within the "Ion Ionescu de la Brad" University of Agricultural Sciences and Veterinary Medicine of Iași, the Iasi Agency for Environmental Protecon and the "Petru Poni" Technological High School of Iași. 48 External communication activities

The Researchers night

The ApaVital stand was again full of children at the 2018 edion of the Researchers' Night, organized by the "Alexandru Ioan Cuza" University of Iași on the Palas Mall esplanade. ApaVital parcipated in this event with a stand in which several educaonal acvies took place. The company's mobile CCTV laboratory aended the event (a vehicle equipped with video equipment for inspecon of sewer network). Researchers Night is an event that takes place annually in over 300 cies in Europe, with the support of the European Commission, bringing science to the public. According to the esmates made by the organizers, around 5000 parcipants aended this event.

Training of specialists from the Republic of Moldova

In 2018, ApaVital hosted a program of training and exchanges of know-how for specialists from water-sewerage companies members of the Associaon "Moldova Apa Canal".

Christmas gifts

ApaVital distributed 150 packages with sweets during the winter holidays, beneficiaries being children from Iasi City and the localies Victoria, Hermeziu, Zaboloteni, Probota, Belceș, Sodomeni, Moțca, Cristeș, Herees, Ciohorăni, Ruginoasa, Ion Neculce, Bals, Lungani and Tg.Frumos.

49 Campaigns

Water for villages

Well water can be very dangerous for young children. The reason stays in nitrites and nitrates, which are found in water in concentraons that exceed the legal limits allowed. The potability of water provided by ApaVital is confirmed by laboratory tests performed by the company's laboratories, but also by the tests carried out within the monitoring programs for the audit of drinking water quality, performed by the Iași Public Health Authority, in order to ensure the compliance of drinking water quality to legal regulaons in force. The ApaVital "Water to villages" campaign was carried out on the company's Facebook page, by the posng of semiannual messages. Flyers were also distributed to target groups.

Mandatory connection to public sewer systems

The amendments made to Law no. 241/2006, related to water and sewerage services, introduced the obligaon to achieve connecons to exisng or newly established public sewer systems, this being in force for all users (natural and legal persons), including those who operate their own water supply systems. Under these circumstances, ApaVital appealed to clients, by posng messages on the company's Facebook pages, and through press releases, demanding the people not connected to sewer networks to iniate the procedures for the execuon of inner installaons, in order to get connected to public sewer systems, in the areas where such networks exist.

People must drink tap water

Romania is among the countries with the lowest tap water consumpon. According to the European Commission, access to beer quality water could reduce boled water consumpon by 17%. Less boled water would help people save money and also bring a posive impact on the environment by reducing CO₂ emissions and plasc waste. According to the Commission's data, an European cizen uses on average 106 liters of boled water per year, so reducing the consumpon of boled water could reduce household spending in Europe by 600 million euros a year. According to EU data, a Romanian consumes an average of 74 liters of tap water per day.

50 Internal communication activities

Sports competitions

 ApaVital Chess Cup  The Water Crosss country contest - running compeon  ApaVital Cup in field tennis  The Water Road - bicycle compeon  ApaVital Cup for table tennis  Bowling contest

The ApaVital 1st of March trinket

There were distributed 800 personalized 1st of March trinkets with ApaVital logos, for both ApaVital employees and clients, at ApaVital cashing desks in Iași, Pașcani, Tg. Frumos, Hârlău and Podu Iloaiei.

ApaVital Day

About 200 people - ApaVital employees and their children – aended on Friday, July 20th, 2018, the day of the Worker from Public Water-Sewerage Services, organized at the Apavital headquarters in Copou.

Retirees' day

In November, for the sixth consecuve year, ApaVital organized a celebraon in which the company showed their gratude to rered employees and thanked them for the effort made in the service of water-sewerage sector. The event involved 37 employees who went into rerement in 2018.

51 The ACVO Association - steps towards the future

Keep on flowing!

Responsibility, involvement, dedicaon. Three words that define the first half of the school year, and the kindergarten children, for the ACVO, the associaon through which ApaVital aims to change the first me, entered a class full of toys, donated by the ApaVital team. world in which we live, to bring smiles, joy, help, progress and a beer With the thought of how a unique experience can bring joy in the lives life in the communies where it operates. Established in early 2018, of children without material possibilies, the ACVO team organized a ACVO is an associaon dedicated to projects, people and ideas that trip for 40 school students, all from village of Șcheia. generate progress and sustainable growth, contribung to a beer In October, the children visited the chrysanthemum exhibion at future. the Botanical Garden of Iasi, had lunch at the company's headquarters As stated by the President of the ACVO Associaon, Dr. Eng. in Copou and saw a 3D movie for the first me. Santa Claus too Mihail Doruș, “The ACVO Associaon is the ambassador of the world thought about them, when he came to school and kindergarten with and the people of ApaVital, having the mission to carry forward their sweet gis for 329 school children and preschoolers, and also for message of responsibility and involvement in the city's life. I believe another 30 children with disabilies from the "Stejarul" special care that the real strength of a person or organizaon depends not only on center. Specialists from several areas of interest for teenagers were what it can do for itself, but also on what it understands to do for with ACVO in carrying out the project "ACVO Conferences", a series others. As an organizaon, we are concerned about the quality of of free interacve, free access meengs, aimed at high school environment and quality of life in general, the state of the educaon students in order to provide guidance and answers to their concerns. system and the future of the young generaon, and the development The ACVO Associaon has been involved in the implementaon and of the cies in which we live. Therefore we want to get involved in all of development of the project named "Strengthening the instuonal these, parcipang through projects and concrete acons able to framework in the water-sewerage sector of the Republic of Moldova", ensure the evoluon we want to have. Our goal is for ACVO and through which 200 water operators from the Republic of Moldova ApaVital to become two presgious signatures, put on high quality aended a training and experience exchange program during period and useful iniaves for the communies in which we operate. ” September-December 2018. The first steps were taken: starng with July 2018, the ACVO All the projects were received with interest by Apavital's media team implemented social projects as well as professional and personal partners, which covered the events with dozens of wrien, audio or development. The project “The school starts with ACVO” facilitated video press materials in newspapers (Ziarul de Iași, Evenimentul, the learning acvity for 235 school students from the village of Șcheia. TopIași, Opinia Studenteasca), or broadcasted by radio staons (Radio The children received backpacks filled with all necessary supplies for Iasi, Viva FM) and TV staons (TVR Iasi, IasiTVLife, TELE M, BIT TV). 52

Iași T K M op omot out: Pr y

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