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Component 1. Elaboration of Bucharest's Iuds, Capital Investment

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Component 1. Elaboration of Bucharest's Iuds, Capital Investment ROMANIA Reimbursable Advisory Services Agreement on the Bucharest Urban Development Program (P169577) COMPONENT 1. ELABORATION OF BUCHAREST’S IUDS, CAPITAL INVESTMENT PLANNING AND MANAGEMENT Output 3. Urban context and identification of key local issues and needs, and visions and objectives of IUDS and Identification of a long list of projects. Chapter 5. Public utilities March 2021 DISCLAIMER This report is a product of the International Bank for Reconstruction and Development/the World Bank. The findings, interpretations and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. This report does not necessarily represent the position of the European Union or the Romanian Government. COPYRIGHT STATEMENT The material in this publication is copyrighted. Copying and/or transmitting portions of this work without permission may be a violation of applicable laws. For permission to photocopy or reprint any part of this work, please send a request with the complete information to either: (i) the Municipality of Bucharest (Bd. Regina Elisabeta 47, Bucharest, Romania); or (ii) the World Bank Group Romania (Str. Vasile Lascăr 31, et. 6, Sector 2, Bucharest, Romania). This report was delivered in March 2021 under the Reimbursable Advisory Services Agreement on the Bucharest Urban Development Program, concluded between the Municipality of Bucharest and the International Bank for Reconstruction and Development on March 4, 2019. It is part of Output 3 under the above-mentioned agreement – Urban context and identification of key local issues and needs, and visions and objectives of IUDS and Identification of a long list of projects – under Component 1, which refers to the elaboration of Bucharest’s Integrated Urban Development Strategy, Capital Investment Planning, and Management. ACKNOWLEDGEMENTS This report has been delivered under the provisions of the Reimbursable Advisory Services Agreement on the Bucharest Urban Development Program and has been prepared under the guidance and supervision of Christoph Pusch (Practice Manager, Social, Urban, Rural and Resilience for Europe and Central Asia) and Tatiana Proskuryakova (Country Manager, Romania and Hungary). The report has been prepared by a team under the coordination of Dean Cira (Lead Urban Specialist) and composed of Matei Cocheci (Senior Urban Development Expert), Otilia Nuțu (Senior Energy Expert), Ioana Ivanov (Senior Urban Development Specialist), Reinhold Stadler (Senior Urban Development Specialist), Daiana Ghintuială (Urban Development Specialist), Amelia Pîrvu (Analyst), Marius Cristea (Senior Urban Development Specialist), Sorina Racoviceanu (Lead Urban Development Specialist), Marcel Ionescu-Heroiu (Senior Urban Development Specialist), Carli Venter (Senior Urban Development Specialist), Oana Franț (Operations Specialist), Bianca Butacu (Analyst), Adina Vințan (Operations Specialist), Ioana Irimia (Communications Specialist) and George Moldoveanu (Information Assistant). The team would like to express its gratitude for the excellent cooperation, guidance, and timely feedback provided by the representatives of the Municipality of Bucharest, especially Mr. Nicușor Dan, Mr. Sorin Chiriță, Mr. Cătălin Zoican, Ms. Adriana Duțu, Ms. Luminița Glodea, and by the many other local and regional partners that have contributed to the elaboration of this report. ABREVIETIONS AND ACRONIMS AIHC Henri Coandă International Airport ALU Active Local Units ANAF National Agency for Fiscal Administration. ANRSC National Regulatory Authority for Community Services of Public Utilities AROPE A composite indicator adopted at European Union level BPO Business Processes Outsourcing CBD Central Business District CFR Romanian Railways CLLD Community-led local development CMMTB Bucharest Traffic Management Municipal Enterprise COR Romanian Classification of Occupations DGASMB Bucharest General Directorate for Social Assistance DGASPC and the Bucharest General Directorate for Social Assistance DGASPC General Directorates for Social Assistance and Child Protection EDN Electricity Distribution Network EU European Union EUROSTAT Statistical office of the European Union. FDI Foreign Direct Investment FUA Functional Urban Area GDP Gross Domestic product GVA gross value added HORECA Hotel/Restaurant/Catering ICT Information Communication and Technology INSSE/INS National Institute of Statistics IT Information Technology IT&C Information Technology and Communication IUDP Integrated Urban Development Plan IUDS Integrated Sustainable Urban Development Strategy JICA Japan International Cooperation Agency LAG Local Action Group MPWDA Ministry of Public Works, Development and Administration MRDPA Ministry of Regional Development and Public Administration NACE Nomenclature Statistique des Activités Économiques dans la Communauté Européenne NBR National Bank of Romania NGO Non-Governmental Organization NIS National Institute of Statistics NTRO National Trade Register Office NUTS The common classification of territorial units for statistics PHC Primary Health Care PMB Municipality of Bucharest PUG General Urban Plan RDI Research, Development, Innovation ROP Regional Operational Programme SCB Strategic Concept Bucharest SME small medium enterprises SUMP Sustainable Urban Mobility Plan TAU Territorial administrative unit UDP Urban Development Plan UMA Urban Marginalized Areas UN United Nations UNCTAD United Nations Conference on Trade and Development UNICEF United Nations Children’s Fund VAT Value Added Tax WWTP Wastewater Treatment Plant TABEL OF CONTENTS 1. Water supply....................................................................................................................................................... 1 1.1. Institutional issues regarding the water supply and sewage system ...................................................... 1 1.2. Water supply sources .............................................................................................................................. 2 1.3. Water supply systems ............................................................................................................................. 6 2. Sewerage networks .......................................................................................................................................... 15 2.1. Sewerage systems ................................................................................................................................. 15 2.2. Wastewater treatment ......................................................................................................................... 22 3. Electricity infrastructure ................................................................................................................................... 24 3.1. Introduction .......................................................................................................................................... 24 3.2. The energy situation in Bucharest City ................................................................................................. 24 3.3. Analysis of power supply service .......................................................................................................... 42 4. Thermal energy infrastructure.......................................................................................................................... 60 4.1. The thermal energy market in Bucharest ............................................................................................. 60 4.2. Quality of services and consumer satisfaction...................................................................................... 64 4.3. Moral and physical wear and tear of the system .................................................................................. 66 4.4. Needs and upgrade plans ..................................................................................................................... 69 4.5. Institutional roles and challenges ......................................................................................................... 75 4.6. Scenarios regarding the supply of heat and hot water in Bucharest .................................................... 78 5. Telecommunications infrastructure ................................................................................................................. 81 6. Public lighting ................................................................................................................................................... 88 6.1. Introduction .......................................................................................................................................... 88 6.2. Organization and operation of the public lighting service in Bucharest ............................................... 88 6.3. The evolution of public lighting system over the last 20 years ............................................................. 97 6.4. Solutions regarding the increase of the energy efficiency of the public system in Bucharest ........... 111 6.5. Investments for providing the public lighting service in Bucharest .................................................... 113 7. Waste Management ....................................................................................................................................... 114 7.1. Legal and normative
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