Water Governance
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Unie van Waterschappen Koningskade 40 2596 AA The Hague PO Box 93218 2509 AE The Hague Telephone: +3170 351 97 51 E-mail: [email protected] www.uvw.nl Water governance Unie van Waterschappen Water governance The Dutch regional water authority model Colofon Edition © Unie van Waterschappen, 2010 PO Box 93128 2509 AE The Hague The Netherlands Internet: www.uvw.nl E-mail: [email protected] Authors Herman Havekes Martin Koster Wijnand Dekking Cathelijn Peters Rafaël Lazaroms Rob Uijterlinde Ron Walkier (NWB Bank) Printing Opmeer drukkerij bv Edition 1.000 copies ISBN 9789069041230 Water governance Water 2 Preface Society makes demands on the administrative organisation and the performance of water management services. And rightly so. Water authorities, from the municipal to the European level, are endeavouring to respond adequately. In the Netherlands the regional water authorities (waterschappen), are crucial in providing the required water management services, i.e. flood control, irrigation and drainage and municipal waste water purification. This sets requirements on the way in which these tasks are carried out. Moreover, it sets requirements on the way in which society is involved in water governance. We have produced this booklet for the interested outsider and for those who are direcly or indirectly involved in water management. It provides an understanding of what the Dutch regional water authorities do, with a focus on how they work as independent governmental institutions. Special attention is paid to organisation, management and self financing. These governance issues are frequently raised in contacts with foreign colleagues. The way we organise water management in the Netherlands has received positive attention all over the world. The regional water authority model proves to be an inspiring example for the administrative organisations of other countries whose aims are also to keep people safe from flooding and manage water resources. This is apparent from the growing desire for collaboration inside and outside Europe, from Indonesia to the United States and from France to South Africa. The booklet ‘Water Governance - the Dutch Regional Water Authority Model’ was drawn up for foreign colleagues in 2004. We are now a few years further on. The merging of regional water authorities has continued and legislation was amended. The new Water Boards Act has had far-reaching consequences for the composition and election of the regional water authority assemblies and for the financing of the tasks carried out by the regional water authorities. The recent Water Act also has a large impact on the legal instruments of regional water authorities. Both these developments, amongst others, have been incorporated in this fourth and fully-revised edition of ‘Water Governance’. I hope that you will find the booklet interesting and informative. Peter C.G. Glas M.Sc. LL.M. Chairman of the Dutch Association of Regional Water Authorities (Unie van Waterschappen) 3 Table of contents 1 Introduction 7 1.1 Decentralised water management, a global theme 8 1.2 The Dutch regional water authority model 10 2 Regional water authorities and their legal basis 13 2.1 Water governance 14 2.2 The position of the regional water authorities 16 2.3 The Water Boards Act 20 2.4 The integration of water legislation 21 2.5 The administrative organisation of water management 23 2.6 Fine-tuning and coordination 26 2.7 Participation, legal protection and supervision 27 3 Democratic legitimacy 29 3.1 The Dutch polder model 30 3.2 The composition of boards 31 3.3 Elections 35 3.4 Current developments 36 4 Financial independence as a result of their own tax system 37 4.1 Financing Dutch water management 38 4.2 Financing of regional water management by the regional water authorities 40 4.3 The water system charges 44 4.4 The water pollution and the surface water pollution levies 46 Water governance Water 4 5 A dedicated financial institution: The NWB Bank (Nederlandse Waterschapsbank N.V.) 49 5.1 Combining strengths 50 5.2 Brief history of the Dutch situation 50 5.3 The concept of a bank 51 5.4 Form 53 5.5 Key NWB Bank figures 55 5.6 Socially responsible business practices 56 6 The Dutch Association of Regional Water Authorities (Unie van Waterschappen) 57 7 Final conclusions 61 Literature 67 5 Water governance Water 6 1 Introduction 1.1 Decentralised water management, a global theme Water management is facing enormous challenges both nationally and internationally. Climate change, a rapidly increasing population and economic developments are placing a great deal of pressure on the water system. This applies in particular to the flat, low-lying areas of the world such as deltas, coastal and river plains where the population growth is concentrated. The government has a duty of care regarding the management of natural water systems and the safety of residents from flooding. These tasks, which in the Netherlands are largely allocated to waterschappen (regional water authorities), not only require adequate funds and knowledge, but also a good institutional water management structure, that is, good water governance. The 26 regional water authorities form the fourth government institution in the Netherlands, along with the central government, provinces and municipalities. The regional water authorities, are the least known governmental bodies in our urbanised country. The average citizen knows little of the work carried out for him or her by the regional water authorities. He or she does, however, notice the regional water authority’s tax assessment. While, in fact, the regional water authority model is much admired in the international circuit as a system that is well tailored to suit its duties, is financially self-supporting and also, given its history, can be deemed sustainable (regional water authorities have been in existence for about 800 years). The Dutch regional water authorities are not unique, and there are similar organisations in and outside Europe. The organisation and financing of decentralised water management are, however, recurrent themes in international contacts. The sophisticated regional water authority system commands particular respect as regards these aspects. More than fifty percent of the Netherlands would be under water if the water management was not up to standard, so clean water and dry feet are great achievements in this country. And, indeed, if the regional water authorities failed to do their work for even a single day, the lower-lying areas of the Netherlands would immediately be in trouble. At international meetings, such as the World Water Forum, the Netherlands actively contributes its experiences with the management of its regional water system, not as blueprint, but as food for thought. It may be possible to use some of the ingredients in other situations. And every little helps in the painstaking management of the global water system. After all, the second UN World Water Development Report (2006) describes the world water crisis in this century primarily as a water management crisis. Water governance Water 8 Things are not standing still in the Netherlands, Dutch efforts being focused on anticipating climate change and the correct implementation of European policy, such as the Water Framework Directive and Directive 2007/60/EC on the assessment and management of flood risks. Regional water authorities have a crucial role in this, along with their duties in the fields of safety from flooding, the management of water quantity and quality, and the treatment of urban wastewater. In 2008 the requisite changes were made as a result of the introduction of the new Water Boards Act. These changes include a different composition and method of electing the governing bodies of regional water authorities. Furthermore, the Water Act, which went into force on 22 December 2009, has also had consequences for the set of legal instruments at the disposal of the regional water authorities in the performance of their duties. This booklet tells the reader all about the Dutch regional water authority system. It gives insight into the organisation, management and funding of the regional water authorities. The English version (Water Governance – the Dutch Regional Water Authority Model) makes this information available to target groups abroad. After a concise outline of the decentralised water management in the Netherlands in section 1.2, the legal basis of the regional water authority is discussed in detail in Chapter 2. Chapter 3 is devoted to their democratic legitimacy: the relationship with sections of society, such as the residents and interest groups, which deviates from general democracy. ‘Interest-pay-say’ continues to be the creed of the regional water authority governing bodies. Chapter 4 explains the financing system, which involves an exceptional phenomenon: the NWB Bank (Nederlandse Waterschapsbank N.V.), a bank established by regional water authorities that provides access (though it is not the only possibility) to the capital market. The NWB Bank is described in Chapter 5. Chapter 6 throws light on the Dutch Association of Regional Water Authorities (Unie van Waterschappen), as national and international representative of Dutch regional water authorities. Lastly, Chapter 7 contains some final conclusions. 9 1.2 The Dutch regional water authority model A large part of our country is kept dry (or wet) by artificial means. In the past areas that were originally peat and marsh were brought under cultivation. The land was adapted to suit habitation, agriculture, industry and recreation. This was accompanied by an extensive infrastructure that included not only roads and railways, but primarily investments in water management. The Dutch seem to take for granted the efforts required to keep the land dry, to produce water of a high quality and to harmonise water management with social functions in our densely-populated country. The Dutch feel safe, protected as they are by dikes, dunes and dams. However, without the continuous operation and maintenance of the many dikes, locks, pumping stations, flood barriers, canals and ditches, the safety of more than nine million Dutch would be jeopardised.