Swiss Support to the Macedonian Water Sector

Stanislava Dodeva Swiss Cooperation Office Macedonia, Skopje, Republic of Macedonia

[email protected]

Abstract Switzerland has supported the Macedonian water sector since 1994 throughout different projects in the field of wastewater treatment, water supply, water monitoring, river restoration and water management. In the current Cooperation Strategy Macedonia 2009-2012, one of the two main domains of intervention is Water and Environment. In the frame of this strategy, the concept of the Swiss support to the water sector started to transform from ad-hoc interventions, mainly responding to the immediate needs of the sector, to conceptualized and systematic interventions that are respecting principles and approaches of the integrated water management and are addressing all levels: national, regional/local (river basin), operational and ground level - population. The Swiss support will continue in the following 4 years, which will be confirmed in the new Cooperation Strategy 2013-2016. All the interventions in the water sector that are supported and financed by the Swiss government have one common goal: to assist Macedonia in its accession towards EU and to fulfil the requirements of the water related European Directives that are transposed in the national legislation.

Keywords : Development cooperation, Water, Environment, Macedonian accession towards EU.

Introduction

The territory of the Republic of Macedonia is classified as a semi-arid region (the area of Ovce Pole is the driest area in the central Balkan Peninsula). Therefore, the use, protection and conservation of water resources are of utmost importance. According to the hydrographical conditions of the country there are four river basin areas1 and three major natural lakes2. Most of the surface waters are domicile and formed on the territory by the precipitation. The country is not rich in surface water (about 3’000 m3/capita) and depends mainly on the appearance, duration and intensity of precipitation. In total, the annually available surface water is assessed to be in the order of 6,372 billion m3 (1). There are 22 large, mostly multipurpose, dams. They supply water to households and/or industry; for irrigation purposes and for energy production; and they serve to maintain the minimally accepted flows and are used also for erosion and flood protection of the downstream areas. In addition, the areas around the reservoirs are popular tourist and recreational locations. About 4,400 springs with a total annual yield of 992 million m3 per are registered out of which 58 springs have a capacity of over 100 l/s. In regard to groundwater yields, there is a lack of sufficient relevant data on quantities as well as on qualitative aspects due to a lack of systematic and continuous observations and examinations of ground waters, except data for the local demands for certain regions (1). The major water consumers are agriculture, industry, households and energy production. The water supply systems are operated and managed by public utilities. In the urban municipal areas, connection rates range from 82% to 100%. In total, 1,200,000 inhabitants in these urban areas are connected to a public water supply system. In rural areas, connection rates exhibit a spread between 10% and up to 100%. The available data indicate average connection rates of about 70% corresponding to an estimate of 250,000 inhabitants being connected to a public water supply system (1). At the national level, 60% of dwellings are connected to a public sewage system whereas 21% of the dwellings have septic tanks and another 12% only have a system of uncontrolled waste water discharge. There is no monitoring of the discharged municipal waste water. The management of the sewage systems is the responsibility of the public utilities. There are only 6 operational wastewater

1 river Vardar, river Crn Drim, river Strumica and river Juzna Morava 2 Ohrid Lake, Prespa Lake and Dojran Lake

BALWOIS 2012 - Ohrid, Republic of Macedonia - 28 May, 2 June 2012 1 treatment plans that provide for 13,5% of the total population wastewater treatment service. The industrial wastewater is discharged mainly without any treatment or only with mechanical treatment. In 2011, the Water Law that transposes the water related EU directives entered into force. The Law besides other provisions, introduces the integrated water resources management upon river basins, implies “user-pays” and “polluter-pays” principles, introduces water rights and defines a new institutional set up. Also, sets the new planning process through elaboration of the planning documents: National Water Strategy, National Water Master Plan and River Basin Management Plans. The efforts for implementation of the Water Law revealed many weaknesses of the water sector, which mainly raised due to limited administrative capacities at central and local level to deal with the new institutional set-up for integrated water resources management, lack of financial and technical resources to built/rehabilitate water infrastructure (especially infrastructure for disposal and treatment of the wastewater), not enough coordination between the competent authorities and a low level of public environmental awareness. Moreover, the present water monitoring system is insufficient, the water management planning is in infancy and the reluctance to pursue full cost recovery through applying the user/polluter pays principle prevents the consolidation of the water supply and sanitation services and their improvement.

History of Cooperation

The development cooperation between Switzerland and the Republic of Macedonia in the field of water started in 1994 and so far, over CHF 40 million has been donated to the country throughout implementation of different projects. In the beginning, the Swiss3 support was addressing the immediate needs of the country and implemented ad hoc interventions, like improvement of the water quality of Lake Ohrid through the rehabilitation of the wastewater treatment plant in Vranista and provision of sophisticated monitoring equipment for the Hydrobiological Institute (Ohrid); improvement of the monitoring of the rivers at national level (River Monitoring System in Macedonia – RIMSYS) and enhancing the services for wastewater treatment through construction of the wastewater treatment plant (WWTP) in Kumanovo. In 2004 the activities for definition of a larger water portfolio that would be implemented in a longer period resulted in a programme that respected the integrated water resources principles with a focus in one geographical area – river basin. The further development of the ideas and interventions resulted in defining of the “water and environment” domain as one of the main domains of interventions in the Cooperation Strategy Macedonia 2009-2012. The decision to structure the cooperation around the domain of water and environment was made mainly based on the following arguments: the excellent cooperation with the central and local governments, available Swiss knowledge, technologies and expertise, the evident need for support to Macedonia in these fields and existence of a number of driving forces such as legislation, interest of the municipalities to cooperate in the field of water and environment, incentive to generate income from sustainable use of natural resources and motivated and active Civil Society Organizations. The overall goal was for Macedonia to make significant and acknowledged progress in meeting international standards and requirements concerning the sustainable use of water and other natural resources (2). During this Cooperation Strategy period, the interventions in the water sector from ad hoc interventions were transformed into systemic and tailored actions that were able to meet the needs of the country from several aspects. The projects were carefully selected, respecting principles and interactions between different areas, so that the efforts resulted in a fully-fledged programme with a concept, clear goals and methodological approach.

Concept and Principles of Interventions

The analysis of the problems in the water sector revealed that interventions are needed at all levels: central, regional/river basin, operational level and at level of population. In order to offer possible solutions for the problems to different stakeholders, the projects either include adequate component or they are developed as a concrete answer to the problems.

The concept of addressing all levels is presented in Figure 1:

3 The Swiss support is from two state institutions: State Secretariat for Economic Affairs (SECO) and Swiss Agency for Development and Cooperation (SDC)

BALWOIS 2012 - Ohrid, Republic of Macedonia - 28 May, 2 June 2012 2

Problems Swiss Support

Central level

Problems: -Slow implementation of the Water Law, -Long term advisor for the Ministry of -Not yet established institutional set-up, Environment and Physical Planning on -Not adequate financing system for institutional, legal and financial issues; covering the costs for implementation of -Policy dialogue; the Water Law; -Capacity building of the central level -Lack of resources (financial, human, administration technical)

Regional/River basin level

Problems: -Establishment and operation of the RBM -Non existence of operational bodies for River Basin Management (RBM); body; -Lack of knowledge and experience for -Elaboration of RBM Plans; the RBM; -Implementation of programme of -Lack of planning documents – RBM measures from the RBM Plans; Plans; -Construction of water infrastructure; -Lack of finances for elaboration of the -Capacity building of the municipal RBM Plans and implementation of the administration RBM

Operational level

Problems: -Lack of infrastructure, especially for -Construction of new infrastructure, wastewater treatment; mainly for wastewater treatment; -Deteriorated water infrastructure; -Institutional strengthening of the PUs -Poor governance and management of that will receive new infrastructure; the Public Utilities (PUs); -Coaching services for the PUs that have -Low level of sustainability of the been supported with infrastructure infrastructure and the PUs

Population

-Integration of the environmental education in the Macedonian educations Problems: system (at national level and at all educational levels- kindergartens, -Low level of the public awareness for the environmental issues primary and secondary schools; -Campaign for public awareness in the frame of the individual projects

Figure 1. The Swiss support to the water sector at different levels

Central level: For the problems at central level the Swiss cooperation plans to provide a long-term advisor to the Ministry of Environment and Physical Planning. Through engagement of this international independent advisor (for 5 years), the MoEPP will be advised on how to improve the institutional set-up and financial system of the water sector as well as on implementation of the Water Law.

Regional/River basin level: In order to support the integrated water resources management at regional/river basin level, Switzerland is financing Bregalnica River Basin Management Project (establishment of the water body for management of the basin, drafting of a River Basin Management

BALWOIS 2012 - Ohrid, Republic of Macedonia - 28 May, 2 June 2012 3 Plan and construction of small infrastructure projects) and will support the implementation of a selected set of measures from the Watershed Management Plan of Lake Prespa. In both cases, the capacities of the local governments will be strengthen in the area of the integrated water management, so that they will effectively continue to manage the resources at river basin level after completion of the projects.

Operational level: The support at operational level (public utilities that operate the infrastructure and provide services to the citizens) is organized in two ways, depending of the status of the infrastructure projects. For the on-going infrastructure projects, the institutional strengthening and capacity building of the public utility is an obligatory component, as part of the “Corporative Development” strategy for public utilities. In that way, the public utility in Berovo was supported and the public utility in Gevgelija is currently receiving the support. The second possibility is offered to the public utilities that already implemented infrastructure projects, but they still need a support in order to have sustainable services. Through the Public Utility Coaching project, four public utilities from Kumanovo, Berovo, Ohird/Struga and Resen will be supported in order to improve the sustainability (financial and technical) and to improve the managerial capacities. Actually, the project will assist the PUs to adopt best practices in the fields of accounting, human resources, revenue collection and billing, organization and processes. The final goal is that the citizens receive good quality and cost-effective services provided by efficient and sustainable public utilities.

Population: Another big issue in the field of water and environment in general, is the low level of public awareness among the population. Switzerland has supported a local NGO active in raising the awareness of children for many years. On the basis of this successful cooperation, achieved results and willingness of the Ministry of Education and Science, in the last three years Switzerland supports an environmental education programme (2002-2015) at national level. The main objective of this programme is the integration of environmental education in the existing compulsory curricula on all three educational levels (kindergarten, primary and secondary schools). Switzerland aims to contribute to the improved awareness of Macedonian citizens about their environment, providing knowledge and promoting good practices on how to protect and preserve the environment.

Additionally, the following principles were respected when planning the individual projects:

• To fulfill the requirements of the EU water related directives: In all water projects, the requirements of the EU water related directives are respected. Mainly, the projects enable implementation of the Water Framework Directive (WFD 2000/60/EC), Directive concerning urban wastewater treatment (91/271/EC), Directive on the quality of water intended for human consumption (98/83/EC) and Directive on sewerage sludge (86/278/EEC). The directives’ requirements are transposed in the national legislation, although some of the secondary legislation is still lacking.

• To meet the national priorities: The basis for the development of the projects are the national strategic documents with the respective national priorities. • • Cooperation with the existing structures in the system: One of the main goals for overall Swiss cooperation is to strengthen the capacities of the existing institutions in the fields of interventions and to avoid the establishment of “artificial” or “parallel” structures/offices that would be resolved or would disappear once the project is completed. Therefore, the projects support local governments, public utilities, departments from the ministries, associations and other institutions that are already established. In that way, the capacities are built/strengthen and remain within the institutions after completion of the project.

• Involvement of the local staff, good and services: The intention of the Swiss cooperation is, to contribute to an enhanced knowledge at local level and also to contribute to the development of the local economy through engagement of local providers of goods and services. It is important that throughout the cooperation and collaboration of the local with the Swiss providers, the level of standards of provision of local goods and services is constantly increasing and the experience is also gradually extended.

• Sustainability (technical, economical, financial, social): Special attention is put on sustainability of the project’s results and achievements from all aspects. This principle is one of the most important

BALWOIS 2012 - Ohrid, Republic of Macedonia - 28 May, 2 June 2012 4 because it ensures continuation of the operation of the equipment and functioning of the institutions, once the interventions are completed. However, this is one of the biggest challenges that Macedonia is facing today and will in the future.

• High ratio of cost/effectiveness: During the planning of interventions in the water sector, the ratio of cost/effectiveness is analyzed and there is always an intention to strive to as much as possible to a higher ratio.

• Affordability: This principle is important especially when a new public service is introduced and for its sustainability, a new tariff or increase of the existing tariff has to be established. The analysis of affordability of the local population and early involvement of all stakeholders is a standard practice during the development and implementation of the infrastructure projects. One of the main risks regarding the future sustainability of the donated infrastructure is related to the tariff increase of the water services. The experience so far confirms that the process is very much politically driven and depends on the political will of the authorities.

• Cooperation and harmonization with other donors: Switzerland was and remains the main donor and supporter of Macedonia in the water sector, particularly in the waste water management and water resources management. Whenever is possible, a cooperation and harmonization with other donors active in this sector is planned and implemented, as is the case of the WWTP in Gevgelija project that is financed by donations from Switzerland and Greece and Macedonian contribution. For the same project, the cooperation is planned with a KfW financed intervention in strengthening of the capacities of the public utility in Gevgelija. A similar cooperation is planned with the EU financed project on River Vardar Management project and the Bregalnica River Management project.

• Focus in one area with natural boundaries (river basin) Respecting the principle of integrated management of all natural resources within an area with natural boundaries, such as a river basin, Switzerland developed a comprehensive set of interventions for the Bregalnica River Basin. This river basin covers an area of 4,300 km2 and represents the main left tributary to River Vardar. The activities started in 2006 with the Berovo Urban Water Supply and Sanitation Project which is already completed and operational. The interventions will continue in the second half of 2012 through the implementation of the following projects/programmes:

9 Bregalnica River Basin Management – establishment and a support to river basin management body, elaboration of a river Basin Management Plan, construction of small water infrastructure projects; 9 Nature Conservation – programme for conserving biodiversity and natural values through application of principles of sustainable natural resources management; 9 Environmental Education – integrates the environmental education in the existing curricula in schools; the activities in the schools in the Bregalnica region will be enhanced and enriched with components focused on nature values of the region; 9 Public Utility Coaching – support the public utilities to increase the managerial capacities and to sustainability of the provided public services; the public utility from Berovo will be a project partner.

Additionally, a new infrastructure for wastewater treatment of the city of Kocani ( 58,000 e.p.) is considered for construction, if the preparation process is successfully completed.

This focused approach opens the possibilities for synergies between these projects and higher implementation efficiency. Also it enables to apply an integrated approach and assures complementarities with other environment media, such as nature, land, soil, forests etc. The Bregalnica basin is perceived as a “show case” where a number of efforts to achieve interlinked and complementary goals are focused in one region. It is expected that creating a ‘big picture” from different elements that fit well all together, can result in an improved status of the environment, increased knowledge and capacities of the authorities and better living conditions of the population. Depending of the success of the approach, the replication in other river basins is also considered.

BALWOIS 2012 - Ohrid, Republic of Macedonia - 28 May, 2 June 2012 5

Results

Applying these principles in the creation of the Swiss portfolio for the support to the Macedonian water sector, a comprehensive and holistic programme has been defined. Results of the so far implemented interventions during the period between 2009 and 2012 are mainly related to the reduced pollution level discharged into the Rivers Kumanovska, Crn Drim and Bregalnica due to the proper operation of the WWTPs and improved quality of the delivered public services in the areas of water supply, sewerage and treatment of wastewater thanks to provided equipment to the public utilities.

In order to present the achieved results, information on selected projects is given:

Completed Projects

Waste Water Treatment Plant Kumanovo In order to improve the water quality of the River Kumanovska and to improve conditions for aquatic life in the river, a waste water treatment plant and a main sewage collector for waste water of the city of Kumanovo were constructed and put into operation. This project was implemented as a component of the Municipal Environmental Action Plan project. Targeted group is the population of the municipality of Kumanovo.

Capacity: 100’000 e.p. Year of completion: 2011 Swiss commitment: CHF 16’300’000

Figure 2. Wastewater Treatment Plant in Kumanovo

BALWOIS 2012 - Ohrid, Republic of Macedonia - 28 May, 2 June 2012 6 For more information: http://www.swiss- cooperation.admin.ch/macedonia/en/Home/Water_and_Environment/Water_and_Wastewater_Manag ement/Waste_Water_Treatment_Plant_Kumanovo

Berovo Urban Water Supply and Sanitation Improvement of the water supply and sanitation in Berovo through: a) reconstruction of the water supply network and treatment plant, b) construction of a main collector and a wastewater treatment plant and c) institutional strengthening of the Public Utility (PU) "Usluga" from Berovo. After completion of the project in September 2010, the Consultant follows up the performance of the PU regarding water tariff increase, operation and maintenance of the WWTP. Targeted group are the population of the municipality of Berovo and the PU "Usluga", Berovo.

Capacity: 14’000 e.p. Year of completion: 2010 Swiss commitment: CHF 10’100’000

Figure 3. Wastewater Treatment Plant in Berovo

For more information: http://www.swiss- cooperation.admin.ch/macedonia/en/Home/Water_and_Wastewater_Management/Berovo_Urban_Wa ter_Supply_and_Sanitation

Rehabilitation of Pumping Stations Ohrid East Six pumping stations on the main collector for waste water in area of Ohrid East were rehabilitated, a sludge dewatering press and remote control devices of the pumps were installed and laboratory equipment for the WWTP Vranista was purchased. In that way, the long-term operation of the system for protection of Ohrid Lake was ensured. Targeted group are the population of Struga and Ohrid, tourists and touristic business.

Year of completion: in autumn 2012 Swiss Commitment: CHF 966’230

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Figure 4: Rehabilitated pumping station Figure 5: Dewatering sludge press in WWTP Vranista

For more information: http://www.swiss- cooperation.admin.ch/macedonia/en/Home/Water_and_Wastewater_Management/Rehabilitation_of_ Pumping_Stations_Ohrid_East

Restoration of Golema River The main results of implementation of this project are: a) establishment of a sustainable system for integrated river basin management operated and maintained by the municipality, b) clean Golema river and transformation of the river banks in the city of Resen into a pleasant and favorite place for relaxation of the citizens, c) the aquatic life is back into the river, and d) Lake Prespa will receives clean and safe water from the river. Additionally, the door of possibilities for more tourists and faster local economic development will be opened. The project was complementary to the UNDP – GEF full size Prespa Park project.

Figure 6: Restoration of Golema River, before and after

Year of completion: 2010 Swiss Commitment: CHF 2’250’000

BALWOIS 2012 - Ohrid, Republic of Macedonia - 28 May, 2 June 2012 8 For more information: http://www.swiss- cooperation.admin.ch/macedonia/en/Home/Water_and_Wastewater_Management/Restoration_of_Go lema_River

River Monitoring System in Macedonia (RIMSYS) The project provided sound basis for water protection and water resources management in Macedonia, through a rehabilitation of 18 river monitoring stations of national importance and training of the personnel of the Administration for Hydrometeorological Works.

Figure 7: Installed river monitoring stations

Year of completion: 2010 Swiss Commitment: CHF 1’750’000

For more information: http://www.swiss- cooperation.admin.ch/macedonia/en/Home/Water_and_Wastewater_Management/River_Monitoring_ System

On-going Projects

Waste water Treatment Plant Gevgelija Trilateral project (Switzerland, Greece and Macedonia) for construction of a Wastewater Treatment Plant and a main collector for municipal wastewater of Gevgelija. The project aims at providing a reliable and sustainable system for treatment of the wastewater which shall be operated by an efficient and modern public utility. Targeted group are the population of the municipality of Gevgelija and the Public Utility in Gevgelija.

Capacity: 32’000 e.p. Duration: 2010 – 2014 Swiss Commitment: Euro 6’800’000

For more information; http://www.swiss- cooperation.admin.ch/macedonia/en/Home/Water_and_Environment/Water_and_Wastewater_Manag ement/Waste_Water_Treatment_Plant_Gevgelija

Bregalnica River Basin Management Project The project will support establishment and functioning of the river basin management body, preparation of a River Basin Management Plan and will provide a fund for individual water infrastructure projects in the river basin of Bregalnica. The main target groups are the Ministries in charge of water management, population, municipalities and public utilities in the Bregalnica river basin.

BALWOIS 2012 - Ohrid, Republic of Macedonia - 28 May, 2 June 2012 9 Duration: 2011 – 2015 Swiss Commitment: CHF 4’360’000

Public Utilities Coaching Project The project aims to strengthen the management capacities of Public Utilities (Kumanovo, Berovo, Ohrid/Struga, Resen) through demand based management coaching by local experts. There will be two components: training and coaching element, carried out by the local coaches and a peer learning and exchange programme among the Public utilities, supported by ADKOM. Targeted groups are the population and the municipalities in project areas.

Duration: 2012 – 2014 Swiss Commitment CHF 512’000

Biodegradable Waste Management in the Prespa Region Development of a pilot project for management of the biodegradable waste through construction of a central composting plant near Resen, training of the staff of the public utility and raising of the public awareness. This project is one of the measures defined in the Watershed Management Plan for Lake Prespa. Targeted group are local farmers, population and municipality of Resen.

Duration: 2010-2012 Swiss Commitment CHF 806’000

For more information: http://www.swiss- cooperation.admin.ch/macedonia/en/Home/Water_and_Environment/Protection_of_Biodiversity/Biowa ste_Management

Planned Projects

Restoration of Lake Prespa Ecosystem (Implementation of the Watershed Management Plan) The project will contribute to the improvement of Prespa Lake's ecological state and its resilience through implementation of a part of the foreseen measures in the Watershed Management Plan. Also, the Municipality of Resen and the central level authorities will be supported in order to strengthen their capacities for sustainable management of the water resources. Targeted group are population in Prespa region, Municipality of Resen and the national authorities in charge of water management.

Duration; 2012 – 2018 Swiss Commitment CHF 5’350’000

Improvement of the Gostivar Water Supply System The project contributes to the sustainable development of the Gostivar region, through improvement of the living conditions for the population and protection of the natural resources. The project will introduce technical measures for improvement of the water supply system, and will support elaboration of the Water Supply Master Plan for Gostivar region. Targeted group is the population in the Gostivar region.

Duration 2012 – 2014 Swiss Commitment CHF 2’300’000

Wastewater Treatment Plant in Kocani Through construction of a WWTP and a main collector for wastewater, the project will contribute to the sustainable development of the Kocani region and protection of the natural resources. The project will also strengthen the capacities of the Public Utility through application of the SECOs' Policy Paper on Corporate Development of Public Utilities. Targeted group are Population in Kocani region and the Public Utility from Kocani

Duration: 2012 – 2015 Swiss Commitment CHF 20’000’000

BALWOIS 2012 - Ohrid, Republic of Macedonia - 28 May, 2 June 2012 10 Future Challenges

Switzerland will continue to support the Macedonian water sector and hopefully, with this support the country will progress towards meeting the international water standards and requirements. It is also expected that with this support the water management will become more efficient and that the urban water infrastructure will expand. The developed comprehensive programme that is addressing not only water but also the field of nature conservation and management shall assist Macedonia to benefit from sustainable use of water and nature resources and to progress in their development and protection. For the country itself, the sustainability of all the interventions and maintenance of the accomplished results, remains the primary and “the” challenge in future.

References

(1) National Environmental Action Plan 2, Ministry of Environment and Physical Planning (2006) (2) Cooperation Strategy Macedonia 2009 - 2012

BALWOIS 2012 - Ohrid, Republic of Macedonia - 28 May, 2 June 2012 11