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Priority Public Investments for Wastewater Treatment and Landfill of Waste

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Priority Public Investments for Wastewater Treatment and Landfill of Waste Environmentally and Socially Sustainable Develonment Europe and Central Asia Region 32051 BULGARIA Public Disclosure Authorized ENVIRONMENTAL SEQUENCING STRATEGIES FOR EU ACCESSION PriorityPublic Investments for Wastewater Treatment and Landfill of Waste *t~~~~~~~~~~~~~~~~~~~~~~~ Public Disclosure Authorized IC- - ; s - o Fk - L - -. Public Disclosure Authorized The World Bank Public Disclosure Authorized May 2004 - "Wo BULGARIA ENVIRONMENTAL SEQUENCING STRATEGIES FOR EU ACCESSION Priority Public Investments for Wastewater Treatment and Landfill of Waste May 2004 Environmentally and Socially Sustainable Development Europe and Central Asia Region Report No. 27770 - BUL Thefindings, interpretationsand conclusions expressed here are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. Coverphoto is kindly provided by the external communication office of the World Bank County Office in Bulgaria. The report is printed on 30% post consumer recycledpaper. TABLE OF CONTENTS Acknowledgements ..................................................................... i Abbreviations and Acronyms ..................................................................... ii Summary ..................................................................... iiM Introduction.iii Wastewater.iv InstitutionalIssues .xvi Recommendations........... xvii Introduction ...................................................................... 1 Part I: The Strategic Settings for Compliance ..................................................................... 3 Part II. Implementation of Council Directive 1991/271/ EEC on Urban Waste Water......... 12 Requirements of the Directive.12 Implementing the Directive in Bulgaria.14 Investment Forecasts Full Cost Implementation.19 Financing.22 FinancingGap Full Cost Implementation Schedule.28 Investment Forecasts Least Cost Implementation.28 FinancingGap Least Costs Implementation Schedule .30 Conclusions and CriticalActions .31 Part m. Implementation of Council Directive 1999/31/EC on Landfill of Waste .................. 33 Summary Requirements of the Directive.33 Present Waste Quantities, Composition and Facilitiesand Present Waste Management Systems, Plans and Legislative Framework .34 Strategyfor Implementation of the Directive.41 Implementation Plan.59 Investment ForecastImplementation Planper Component .61 Total Investment Requirementsfor Fulfilling the Landfill Waste Directive.67 Financing.71 Conclusions and CriticalActions .76 Annexes .................................................................... 78 References.125 LIST OF TABLES Table 1: Summary of Estimated Investment Costs for WWTP and Sewerage Systems .......... .................. v Table 2: Total Compliance Cost for Directive 1999/31/EC..................................................................... xiii Table 3: Growth in real GDP (% of GDP).............................................................................. 5 Table 4: Commitment Funding - ISPA and Cohesion Funds (projectionC million).............................. 11 Table 5: Summary of EU Funds Received /Receivable and National Co-Financing(projection C million).............................................................................. 11 Table 6: Implementation Schedule .............................................................................. 18 Table 7: 1999-2001 Expenditure on Wastewater Treatment (MEUR) .................................................... 19 Table 8: Summary of Compliance Total Costs for WWTP and Sewerage Systems ................................ 21 Table 9. Affordability Projectionsfor Future Wastewater/Sewerage Tariffs.......................................... 27 Table 10: Settlements Discharge into Sensitive Zones ............................................................................. 29 Table 11: Summary of Compliance Least Costs Implementationfor WWTP and Sewerage Systems... 30 Table 12: Waste Accumulation in Bulgaria ('000 tons)........................................................................... 34 Table 13: Quantities of MunicipalSolid Waste .............................................................................. 35 Table 14: Municipal Waste A risingsfrom 1997- 2001 ............................................................................ 35 Table 15: Composition of Municipal Waste 1995-2001 ........................................................................... 36 Table 16: Generated and Landfilled Hazardous Waste ( '000 tons)........................................................ 36 Table 1 7: Generatedand Landfilled Non-IndustrialHazardous Waste (not including mining waste) - ('000 tons).............................................................................. 36 Table 18: GeneratedHospital/Healthcare Waste .............................................................................. 37 Table 19: Percentageof Waste GeneratedGoing to Landfills in 2001.................................................... 37 Table 20: Landfills Serving PopulationsGreater than 20,000 Inhabitants............................................ 38 Table 21: Review of Technological Conditions of Landflls .................................................................... 38 ProposedRegions and Populations............................................................................... 43 Table 22: Collection and Set out Rate.............................................................................. 45 Table 23: Breakdown and Targets of MunicipalBiodegradable Waste by Region based on 1995 Figures............................................................................... 48 Table 24: Strategy Implementation Plan.............................................................................. 59 Table 24: Strategy Implementation Plan (Continued) ............................................................................. 60 Table 25: Actual Expenditure 1999-2001 .............................................................................. 61 Table 26: Administrative Costs (EUR).............................................................................. 62 Table 27: Cost of Thermal Treatment Facility.............................................................................. 62 Table 28: Cost of Central CompostingFacility ............................................................... ............... 63 Table 29: Cost of Windrow Composting............................................................................... 64 Table 30: Landfill Costs ......................................................... 65 Table 31: Total Cost Estimates........................................................ 67 Table 32: Breakdown of Costsfor Implementation of the Strategy (EUR) ............................... .............. 69 Bulgaria:Environmental Sequencing Strategiesfor EUAccession Acknowledgements This report was prepared by a joint team of the World Bank and officials from the Bulgarian Ministry of Environment and Water. It is largely based on the review of background materials provided by the Department for European Integration of the Ministry of Environment and Water, and discussions with individuals and experts from the Ministries of Environment and Waters and Finance, and participants in the EU Accession Working group on Environment All assistance and support received from the Bulgarian counterparts is gratefully acknowledged. The following ECSSD staff worked on the report: Adriana Damianova, Team Leader, Anil Markandya, Lead Economist and Kateljin van den Berg, Young Professional, Environmental Economist. The team benefited from the guidance of Jane Holt, Sector Manager Environment and Marjory Anne Bromhead, Sector Manager Natural Resources. Pat Malony led a team of experts from ESB International and POVVIK Consult, Bulgaria, who collected the baseline information and carried out background analysis for the report. Anand Seth, Oscar de Bruyn Kops, Andrew Vorkink, Franz Kaps provided invaluable comments. Kirk Hamilton and Julia Bucknall were the peer reviewers. The report also benefited from the inputs and comments of Rosalina Quantanilla, and Anna Georgieva, Stella Illieva and Konstantin Pashev from the Sofia Country Office, and Sunanda Kishore, Consultant. Useful comments were received from Paul Dax, Environmental Finance Specialist and external reviewer advising the team on EU environmental accession requirements and financial plans. The authors gratefully acknowledge the assistance provided by Irene Bomani for the preparation of the report. The team is also grateful to all institutions that provided immense assistance in data collection. Without their assistance it would have been impossible to complete the study. The team would like to thank Ms. Dolores Arsenova, Minister of Environment and Water, and Deputy Minister Fatme lliaz, and the Ministry team including Nona Karadjova, Slavitza Dobreva, Rositza Petrova and Vladimir Donchev. i Bulgaria:Environmental Sequencing Strategiesfor EUAccession Abbreviations and Acronyms CEE Central and Eastern Europe CM Cabinet of Ministers BOD Biological Oxygen Demand COD Chemical Oxygen Demand EEA Envirommental Executive Agency EC European Commission EIA Environmental Impact Assessment EIB European Investment Bank EPA Environmental Protection Act EU European Union EU Phare EU Financing Programme for Associated Countries GDP Gross Domestic Product FIDIC Federation Internationale des Ingenieurs-Conseils IF' s International
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