CONFERENCE ON ACCESSION Brussels, 18 September 2001 TO THE EUROPEAN UNION -LATVIA- CONF-LV 56/01 ADD 3

Document provided by Latvia

20593/01 ADD 3 CONF-LV 56/01 ADD 3 1 EN

ANNEX9 .. DIRECTIVE SPECIFIC IMPLEMENTATION AND FINANCING PLAN (Council Directive 1999/31/EC of26 Apri/1999 on the landfill ofwaste)

Ministry ofEnvironrnental Protection and Regional Development Investment Department Republic of Latvia

16 July 2001

20593/01 ADD 3 CONF-L V 56/01 ADD 3 2 EN TABLE OF CONTENTS Page

1 INTRODUCTION 5 1.1 Requirements of Directive 6 1.1.1 Article 4, Classes of landfill 6 1.1.2 Article 5, Waste and treatment not acceptable in landfills 6 1.1.3 Article 6, Waste to be accepted in the different classes of landfill 7 1.1.4 Article 7, Application for a permit 7 1.1.5 Article 8, Conditions of the permit 7 1.1. 6 Article 9, Content of the permit 7 1.1. 7 Article 10, Cost of the landfill of waste 7 1.1.8 Article 11, Waste acceptance procedures 8 1.1.9 Article 12, Control and monitoring procedures in the operational phase8 1.1.10 Article 13, Closure and aftercare procedures 8 1.1.11 Article 14, Existing landfill sites 8 1.1.12 Annex I, General requirements for all classes of landfills 9 1.1.13 Annex II, Waste acceptance criteria and procedures 9 1.1.14 Annex III, Control and monitoring procedures in operation and after-care phases 9 1.2 Summary of transition time required 9 2 STEPS REQUIRED FOR FULL IMPLEMENTATION 10 2.1 Current status of practical compliance, legislative, institutional, gaps in implementation 10 2.1.1 Current status of practical compliance 10 2.1.2 Legislative and institutional gaps in implementation 10 2.2 To complete legislatin transposition 13 2.3 To complete institutional arrangements to comply with Directive's requirements 14 2.4 "Long list" of projects required to fully implement the Directive 14 2.4.1 Talsi, Janvari landfill 15 2.4.2 Riga, Getlini landfill 16 2.4.3 Liepaja, Grobina landfill 16 2.4.4 Ventspils, Pentuli landfill 16 2.4.5 North-Vidzeme, Daibe landfill 17 2.5 Balance between public and private investments needed 17 2.5.1 State budget, special budget and budget of municipalities 18 2.5.2 Bilateral and other donors 18 2.5.3 Loans 20

3 STRATEGY FOR IMPLEMENTATION 22 3.1 Context of the strategy: socio-economic issues and institutional factors 22 3.1.1 Socio-economic issues 22 3.1.2 Investments in environmental protection 22 3.2 Proposed scenario(s) for full implementation, and assumptions 23 3 .2.1 Legal transposition of requirements of the Directive 23 3 .2.2 Practical implementation of the directive 23 3.3 Roles ofvarious actors and responsibilities for investments 24 Landfill Directive Strategy (16-7-2001) 20593/01 ADD 3 CONF-LV 56/01 ADD 3 3 EN 3.3.1 Roles of various actors in management of municipal waste 24 3.3 .2 Responsibilities for investments 25 3.4 Institutional development plan 26 3.4.1 Preparation and start-up of data collection system 26 3.4.2 Preparation of waste management plans 27 3.4.3 Development of institutions in the scope of regional municipal waste management projects 27 3.5 Approach to project prioritisation and implementation 27

4 FINANCING COSTS OF IMPLEMENTATION 30 4.1 Estimated costs of implementation under selected scenario 30 4.2 Timetable for implementation 32 4.3 Annual costs over proposed period of implementation of investment capital, operation & maintenance costs 32 4.4 Sources of finance 32 4.5 Analysis of affordability on national, municipal and household levels 33 4.5.1 Analysis ofaffordability on national level 33 4.5.2 Analysis of affordability at household level 34

5 IMPLEMENTATION PLAN 35 5.1 Key steps and assumptions 35 5.2 Short term, medium term and long term initiatives (including a short list of priority projects) 35 5.3 Time table for full implementation (target date and milestones) 36 5.4 Measures for supervising and monitoring implementation 36 5.4 .1 Overall measures 36 5.4.2 EU Phare and ISPA related measures 38 5.4.3 Supervision and monitoring ofEU funded projects 39

6 REFERENCES 41

ANNEX I TERMS OF REFERENCE "MULTI-YEAR WASTE MANAGEMENT PLAN FOR LATVIA" 43

ANNEX II SCHEME OF PROJECT DEVELOPMENT 51

ANNEX IIIUPDATED MSW-SCENARIO 1996-2012 52

ANNEX IV TOTAL INVESTMENTS BY SOURCES 1995-2012 54

Landfill Directive Strategy (16-7-2001) 20593/01 ADD 3 CONF-LV 56/01 ADD 3 4 EN 1 INTRODUCTION In its Position Paper of 8 November 2000 with the following Amendments of 23 May 2001, Latvia states the following about its position on the Landfill Directive (99/31/EC):

Taking into account the foregoing, Latvia is changing its position and withdraws its request for transitional period on directive 99/31/EC on the landfill of waste and will achieve compliance or closure of the existing landfills until the date stipulated in Article 14 of the Directive.

70% of the population will be involved in the centralised municipal waste management system already by the year 2006, but all landfills will be in line with EU requirements till the middle of2009. Till this year aftercare and remediation activities will be finished for 50%. of the existing dumpsites and till2012 - for all existing dumpsites.

As a justification, the following has been formulated: Establishment ofmunicipal waste landfills and waste collection system requires 340 million EUR (190 million LVL, 1EUR=0,56 LVL). It is foreseen to build 10-12 new municipal waste landfills and to place them in different regions ofLatvia. The transitional period is necessary to attract the investment and to-accomplish the procedures related to the chosen locations - EIA and consultations with public, that often prolongs the project implementation.

In the Conference on Accession to the European Union- Latvia (21 February 2001), the EU reacts as follows on the Position Paper of Latvia: The EU takes furthermore note ofLatvia's request for a transitional period until 31 December 2015 under Directive 99/31 IEC on the landfill ofwaste. Since Latvia's request is not specified in its scope and not accompanied by an implementation plan the EU urges Latvia to provide information on transposition, and without prejudice to the question ofa transitional period, to reassess the scope and duration ofits request, taking into account the different deadlines set in the Directive for hazardous and non-hazardous waste and the particular importance ofappropriate management of hazardous waste. Furthermore, the EU invites Latvia to accelerate the establishment ofan implementation plan, including information on measures to ensure treating waste before landfilling, phasing out co-disposal ofhazardous waste and non-hazardous waste and controls over site­ closure and after care and to present it to the Conference, together with an implementation timetable, cost assessments and sources offinancing andfurther justification for the request. In addition, Latvia is invited to provide information on how it intends to avoid negative impact of possible future waste streams on the environment, including waste management.

The reaction of the EU resulted in the preparation of this Directive Specific Implementation and Financing Plan (DSIFP) for the 99/31/EC with exception of the management of hazardous waste. The reasons to exclude hazardous waste from this DSIFP are the following: Hazardous waste management is State responsibility, and therefore does not involve so complicated institutional and financing schemes as is the case for the management of municipal waste; It is planned to develop only one h~ardous waste landfill. This cannot be compared to 10- 12landfills and improved waste management systems planned for municipal solid waste.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 5 EN The most important institutional factor that influences the strategy for the implementation of Directive 99/31/EC is related to the municipalities as they will be ensuring the practical compliance with the requirements of the Directive. At the moment there are 561 municipalities which are responsible for the organisation of municipal waste management service in their administrative territories. Most of these municipalities have a small number of inhabitants and rather limited possibilities for the development of waste management plans. However it is planned to have an administrative territorial reform by the end of2002. This reform could certainly have a positive influence on the implementation of the Directive.

The DSIFP ofDirective 99/31/EC contains an analysis ofthe requirements ofDirective 99/31/EC and relevant waste legislation of Latvia, the existing institutional structure, a strategy for implementing the Directive in Latvia, including the development of legislation and improvement of the institutional framework.

1.1 Requirements of Directive In this section, the requirements of the Directive on the Landfill of waste are presented per relevant article.

1.1.1 Article 4, Classes of landfill Distinction between landfills for hazardous waste, non-hazardous waste and inert waste. As indicated above the focus here will be on non-hazardous waste.

1.1.2 Article 5, Waste and treatment not acceptable in landfills Setting up a national strategy for the implementation of the reduction of biodegradable waste going to landfills (before 16 July 2003). The national strategy should include the following targets: Before 16 July 2006: reduction of biodegradable municipal waste going to landfills to 75% of the total amount (by weight) ofbiodegradable municipal waste produced in 1995 or the latest year before 1995 for which standardised Eurostat data is available; _ Before 16 July 2009: reduction of biodegradable municipal waste going to landfills to 50%; Before 16 July 2016: reduction of biodegradable municipal waste going to landfills to 35%.

Latvia disposed and disposes more than 80 % of its collected municipal waste to landfills and is therefore allowed to postpone the attainment of the above-mentioned targets with maximal four years.

Taking measures to prevent that the following wastes are accepted in a landfill: Liquid waste; Waste which, in the conditions oflandfill, is explosive, corrosive, oxidising, highly flammable or flammable; Infectious hospital and other clinical wastes; Whole used tyres (from 16 July 2003), tyres used as engineering material, and shredded used tyres (from 16 July 2006).

20593/01 ADD 3 CONF-LV 56/01 ADD 3 6 EN The dilution of mixture of waste solely in order to meet the waste acceptance criteria is prohibited.

1.1.3 Article 6, Waste to be accepted in the different classes of landfill Only waste that has been subject to treatment is landfilled. Concerning the non-hazardous waste landfill such treatment can be prevention, recovery (recycling, re-use, reclamation), waste to energy (WTE).

1.1.4 Article 7, Application for a permit Taking measures in order that the application for a landfill permit must contain at least particulars of the following: Identity of the applicant and of the operator; Description of the types and total quantity of waste to be deposited; Proposed capacity of the disposal site; Description of the site, including its hydro-geological and geological characteristics; Proposed methods for pollution prevention and abatement; Proposed operation, monitoring and control plan; Proposed plan for the closure and after-care procedures; Environmental Impact Assessment when required; Financial security by the applicant.

Making available of the information to the competent national and Community statistical authorities when requested for statistical purposes.

1.1. 5 Article 8, Conditions of the permit Issuing of a landfill permit by the competent authority only in case of: Compliance with all relevant requirements; Management in the hands of technically competent natural person, and provision of professional and technical development and training of landfill operators and staff; Necessary measures are taken to prevent accidents and limit their consequences; Sufficient financial security (disposal operation, aftercare).

Inspecting the landfill site by the competent authority prior to the commencement of disposal operations.

1.1.6 Article 9, Content ofthe-permit The landfill permit shall state at least the following: Class of the landfill; List of defmed types and the total quantity of waste which are authorised to be deposited in the landfill; Requirements for the landfill preparations, landfilling operations and monitoring and control procedures (including contingency plans), provisional requirements for the closure and after­ care operations; Obligation on the applicant to report at least annually to the competent authority on the types and quantities of waste disposed of and on the results of the monitoring programme.

1.1. 7 Article 10, Cost of the landfill of waste Price to be charged by the operator for the disposal of any type of waste should cover: Costs for setting up the landfill;

20593/01 ADD 3 CONF-LV 56/01 ADD 3 7 EN Costs for operating the landfill site; Estimated costs of closure and after-care of the site for a period of at least 30 years.

Transparency in the collection and use of necessary cost information.

1.1.8 Article 11, Waste acceptance procedures Appropriate documentation with which the holder or operator of landfill can show that the waste is acceptable.

Reception procedures that have to be respected by the operator: Checking of the waste documentation; Visual inspection of the waste at the entrance and at the point of deposit; Keeping a register of the quantities and characteristics ofthe waste deposited (origin, date of delivery, identity of the producer or collector in the case of municipal waste).

Operator of the landfill shall always provide written acknowledgement of receipt of each delivery accepted on the site.

If waste is not accepted at a landfill the operator shall notify without delay the competent authority ofthe non-acceptance of the waste.

1.1.9 Article 12, Control and monitoring procedures in the operational phase Requirements to the control and monitoring procedures in the operational phase: Operator of a landfill shall carry out a control and monitoring programme; Operator shall notify the competent authority of any significant adverse environmental effects revealed by the control and monitoring procedures; Operator shall follow the decision of the competent authority on the nature and timing in case of corrective measures to be taken (and bear the expenses); Operator shall report, on the basis of aggregated data, all monitoring results to the competent authorities for the purpose of demonstrating compliance with permit conditions and increasing the knowledge on waste behaviour in the landfills; Competent laboratories carry out the quality control ofthe analytical operations of the control and monitoring procedures.

1.1.10 Article 13, Closure and aftercare procedures Definitely closed landfill: Operator shall be responsible for its maintenance, monitoring and control in the after-care phase for as long as may be required by the competent authority; Operator shall notify the competent authority of any significant adverse environmental effects revealed by the control procedures (see Article 12); Operator of the site shall be responsible for monitoring and analysing landfill gas and leachate from the site and the groundwater regime in the vicinity of the site in accordance with Annex III (of Directive 99/31/EC).

1.1.11 Article 14, Existing landfill sites Conditioning plan for the landfill site: Before 16 July 2002: preparation and presentation of conditioning plan to the competent authorities;

20593/01 ADD 3 CONF-LV 56/01 ADD 3 8 EN Definite decision by the competent authorities on whether operations may continue on the basis of the said conditioning plan and this Directive.

Before 16 July 2009, existing landfills should comply with the requirements of this Directive except for the requirements in Annex I, point 1 (location) (of Directive 99/31/EC).

1.1.12 Annex I, General requirements for all classes of landfills General requirements for all classes of landfills: Location; Water control and leachate management; Protection of soil and water; Gas control; Nuisances and hazards; Stability; Barriers.

1.1.13 Annex II, Waste acceptance criteria and procedures Waste acceptance criteria and procedures: General principles; General procedures for testing and acceptance of waste; Guidelines for preliminary waste acceptance procedures; Sampling of waste.

1.1.14 Annex III, Control and monitoring procedures in operation and after-care phases Meteorological data; Emission data: water, leachate and gas control; Protection of groundwater; Topography of the site: data on the landfill body.

1.2 Summary of transition time required Taking into account the foregoing, Latvia is changing its position and withdraws its request for transitional period on directive 99/31/EC on the landfill of waste and will achieve compliance or closure ofthe existing landfills until the date stipulated in Article 14 of the Directive. Latvia requests a transitional period of three years- until2012 for the remediation of the existing dumpsites to be closed by 2009.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 9 EN 2 STEPS REQUIRED FOR FULL IMPLEMENTATION

2.1 Current status of practical compliance, legislative, institutional, gaps in implementation 2.1.1 Current status of practical compliance In the end of 1996 the Ministry of Environmental Protection and Regional Development started the project "Municipal Waste Management Strategy for Latvia, 500-" with the goal to elaborate a national strategy for municipal solid waste management. This Strategy afterwards was adopted in Cabinet of Ministers on 30 of June 1998. The goals of the MSW management strategy were the following: To decrease the negative impact caused by illegal dumping of waste: collection of produced MSW, increase the access to waste management services, stop illegal dumping; To decrease negative environmental impacts of dumpsites: closure and remediation/recultivation of old dumpsites, construction of new landfills in accordance with the guidelines; To prevent and to reduce waste production, to increase re-use and recycling.

Up till now, July 2001, the results of the process started less than 5 years ago are the following: Basic insight in the amounts and composition ofMSW. In section 4, these insights have been used to construct a MSW-scenario for the period 2000-2012; Inventory of the dumpsites: number of dumpsites and size (hectare) of the dumpsites per district in Latvia. 77% of the dumpsites are smaller than 2 hectares and receive less than 1,000 m3 per year. 90% of all waste brought to dumpsites in Latvia is disposed of at only 48 sites; Cost estimation for Latvia to comply with Directive 99/31/EC. These cost estimations were presented in a document called LAT-108 [Soil and Water, October 1999]. The basis ofthese cost estimates have been used in section 4 to estimate the investment and operational and maintenance costs of the selected scenario; Closure and remediation of dumpsites. In 1996, 558 dumpsites were registered and till the end of2000, 55 dumpsit~ have been closed and recultivated reducing the dumpsite areas from 854 to 786 hectare (note: in the year 2000 46 out of these 55 dumpsites were closed and recultivated); In 2001, operation permission has been given to 252 dump sites. So 251 dumpsites are closed in 2001; 10 to 12 sanitary landfill sites are planned to be constructed to cover all the regions of Latvia, to establish a tariff structure and to comply with the requirements set in the Directive. More detailed information about these new landfill sites is presented in section 2.4.

2.1.2 Legislative and institutional gaps in implementation In Latvia, there are the following laws related to waste management: Waste Management Law (was adopted in Parliament on 14 December 2000 and is in force from 1 March 2001); Regulations of the Cabinet of Ministers No. 258 On Waste Classification and Characterises which makes Waste as Hazardous (19.06.2001);

20593/01 ADD 3 CONF-LV 56/01 ADD 3 10 EN Regulations of the Cabinet of Ministers No. 191 On types of waste recovery and disposal (15.05 .2001 ); Regulations of the Cabinet of Ministers No. 56 Regulations on Sitting, Management and Closure of Municipal Waste Landfills (08.02.2000); Regulations of the Cabinet of Ministers No. 230 Regulations on Kinds of Recovery and Disposal of Municipal Waste and on Order of Issuing Permits for Recovery and Disposal of Municipal Waste (29.06.1999); Regulations of the Cabinet of Ministers No. 205 Regulations on Registration ofNatural and Legal Persons Performing Collection, Storage, Treatment, Transfer and Transportation (08.06.1999); Regulations of the Cabinet of Ministers No. 353 Order on Documentation of activities with Hazardous Waste (17.09.1997); Cabinet of Ministers regulations No.316 Regulations for the use of Effluent Sludge in the Fertilisation of Soil and in Organising Territorial Public Services (approved 09.09.1997).

The main legal acts on landfilling of waste are the law On Waste Management (14.12.2000) and the Cabinet of Ministers regulation No.56 (Regulations on Sitting, Management and Closure of Municipal Waste Landfills, 08.02.2000). In accordance with the law On Waste Management, the Ministry of Environmental Protection and Regional Development (MEPRD) is responsible for the formulation of the national waste management plan, including hazardous waste, and for co­ ordination of the ig1plementation of the national waste management plan, as well for the co­ ordination of the construction of municipal waste disposal sites. In accordance with the Law on Municipalities, the municipalities are responsible for the management of waste in their administrative territories, including landfilling of waste. In accordance with the Waste Management Law, municipalities have to issue binding regulation on the management of municipal waste in their administrative territories. Municipalities have to take decisions about the location of new landfills for the municipal waste, respecting the law On Environmental Impact Assessment (14.10.1998). The permit for the disposal of waste is issued by the Regional Environmental Board (REB). The collection, accumulation, storage, disposable or treatment of waste shall be permitted only in places intended therefore. The establishment and management of municipal waste disposal sites shall be organised by local governments, in whose administrative territory shall be collected municipal waste for disposal at the relevant municipal waste disposal site, together with those local governments in whose administrative territory waste disposal sites are located, or establishment of a waste disposal site is planned. The owner or manager of a waste disposal site or dump shall prior to the commencement of operations, obtains a permit for the disposal of waste or the treatment of waste, manage the waste disposal site or dump in accordance with the requirements referred to in the permit for the disposal of waste; perform or finance the measures for the closure of the waste disposal site or dump and cover the costs associated with closure of the waste disposal site or dump. The owner or manager of the landfill or dumpsite shall also record the amount (volume), type, origin, type of disposal and once per year submit the compiled information to the MEPRD or its authorised institution, as well as to the relevant local government, and shall keep store such materials for three years. Costs for management of municipal waste, except for recovery will be regulated in accordance with the procedures prescribed in the Law on Public Services Regulators, starting from July 1, 2001.

The Cabinet of Ministers regulation No.56 provides provisions for the location of the landfill, as well as for the components of the landfill, insulation layers and technical requirements. The Regulation requires that owners of the landfill register incoming waste to be disposed at the landfill, as well outgoing waste for recovery. The Regulation also contains requirements for the closure of the landfill and for the monitoring and control procedures to be carried out at the landfill.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 11 EN In accordance with the Law On Natural Resource Tax, a tax should be paid for the disposal of waste. The amount of tax depends on the hazard of the waste, starting from 0.25 LVL/m3 and up to 50 LVL!m3 for hazardous waste. Tax is paid after the disposal of waste. Usually it is included in the cost for waste management service. There are prepared amendments to the Law on Natural Resource tax enhancing use of tons instead of cubic metres for the measuring of waste and the landfills and for taxation of waste disposal.

Saeima (Parliament) adopted Law on the Regulation of Public Services on October 19, 2000. The law has entered into force on June 1, 2001. The law envisages development of two levels of regulation, separating branches regulated by state: Energy production and supply, except heating, where in the production process there is no energy generation; Telecommunications; Post; Railway transportation (including passenger transportation); Branches set by the Cabinet of Ministers.

And branches regulated by municipalities: Management of municipal waste, except recovery; Water supply and sewerage; Heating, where in production process there is no energy generation; Branches set by municipalities.

For the regulation of public services municipalities have to establish a regulatory body. In accordance with the Cabinet of Ministers order, this regulatory body will issue licences for providing services in a certain time period in a certain area. The tariff for the public service will be calculated by the provider of the service in accordance with the tariff calculation methodology approved by the Cabinet of Ministers. Prepared tariffs and justification for their calculation shall be submitted to the regulatory body. The regulatory body shall evaluate draft projects and approve the tariff that would cover justified costs.

At the moment there has not been developed a centralised data collection and processing system on the management of municipal waste. Information on produced, collected and disposed waste amounts is gathered during the preparation of feasibility studies for the regional landfills (see section 2.4).

There are the following legislative and institutional gaps in the implementation of Directive 99/31/EC: Definitions of"underground storage", "operator", "liquid waste" mentioned in the Article 2 of the Directive have not been transposed yet into Latvian legislation; Latvian legislation does not contain a clearly defined scope of directive as described in Article 3.1 of the Directive, as well as exclusions from the scope of the Directive as described in Article 3 .2, for example, spreading of sludge on the soil, use of inert waste for 1 construction purposes in landfills , deposit of non-hazardous dredging sludge, deposit of unpolluted soil and non-hazardous waste from management of mineral resources and from the operation of quarries;

1 In line with Directive 99/31/EC special landfills for inert waste will be constructed. Part of the inert waste is allowed to be directed towards the non-hazardous landfills as long as it is usefully applied at these landfills: construction of accession roads, covering of (old) landfills 20593/01 ADD 3 CONF-LV 56/01 ADD 3 12 EN As there are no isolated settlements, nor underground storage of waste in Latvia, the requirements of the Articles 3.4 and 3.5 have not been transposed yet in Latvian legislation; Latvian legislation does not contain a division into classes of the landfills as mentioned in Article 4 of the Directive; Latvian legislation does not contain a prohibition to landfill liquid waste, hospital waste and waste that does not meet the acceptance criteria, as is mentioned in Article 5.3 of the Directive. Also the prohibition of dilution and mixture of waste (Article 5.4 of the Directive) is not part of Latvian legislation yet; None of the requirements of Article 6 of the Directive has been transposed into Latvian legislation; Article 7 of the Directive on the application of a landfill permit has been transposed into Latvian legislation, except for the requirement to include in the application information about proposed operation, monitoring and control plan and about proposed plan for closure and aftercare; - Article 8 of the Directive on issuing permits has been transposed into Latvian legislation, except for the provisions about education requirements to the management of landfill, financial security of the company managing the landfill; Article 9 of the Directive on the content of a permit for the landfilling has been almost completely transposed into Latvian legislation, except for the provision on the landfill class; Article 11 of the Directive concerning the acceptance criteria of the waste at the landfill is transposed into the Latvian legislation, except for the provision about documental proofs that waste can be accepted at the landfill; Article 12 of the Directive on the monitoring is transposed into Latvian legislation, except for the provision about the competent laboratories for the quality control of the monitoring of landfills; Article 13 of the Directive on the closure procedures of landfills has been partially transposed. Not transposed is the provision on on-site assessment of the closed landfill, notification of adverse environmental effects and clear responsibility of the operator for the aftercare phase for the landfill. The landfill closure procedure described in Latvian legislation is not in line with the described in the Directive; Article 14 on the closure of existing landfills has not been transposed into Latvian legislation; Annex II of the Directive 99/31/EC on the waste acceptance criteria has not been transposed into Latvian legislation; Annex III of the Directive 99/31/EC on the control and monitoring procedures and aftercare phases has been transposed partially. Not transposed are the provisions on the parameters for measurements in the operational phase.

2.2 To complete legislative transposition Directive 99/31/EC has been transposed by the Waste Management Law (14.12.2000) and the Cabinet of Ministers Regulations No. 56 (08.02.2000), the Law on Regulator of Public Services, Cabinet of Ministers Regulations No. 230 (29.06.1999).

Full legal transposition of the Directive will be completed by the year 2002 when two new Regulations will be adopted by the Cabinet of Ministers, namely: Regulation On Construction of Landfills, and on Management and Closure of Landfills and Dumps; Regulation On Issuing, Cancellation and Prolonging of Waste Management Permits and on the Requirements To Be Set in Waste Management Permits.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 13 EN These regulations will complete the gaps mentioned in section 2.1, except for the provisions on the financial security of the operator of the landfill, as the majority oflandfills are owned by municipalities and the operator of the landfill has to sign a contract with the municipalities.

2.3 To complete institutional arrangements to comply with Directive's requirements The most important task is to develop the centralised information collection system on the management of municipal solid waste. As is indicated in section 3.4.1, this centralised information collection system is expected to start collecting data in 2002.

The structure of the Regional Environmental Boards (REB's) is sufficiently in accordance with the Directive.

2.4 "Long list" of projects required to fully implement the Directive In order to implement the requirements of Directive 99/31/EC, Latvia has elaborated and launched the national investment programme Municipal Solid Waste Management Strategy in Latvia ("500- ''), which includes the construction of 10 to 12 new waste landfills and closing the existing dumpsites. In the framework of the programme "500-", the requirements of the Directive will be implemented till the year 2012. Until year 2009 new municipal waste landfills will comply with the requirements of Directive 99/31/EC. Until the year 2009 more than half of the existing dumps will be remediated while before 2012 all the existing landfills will be remediated. In order to ensure the implementation of the Directive, the municipal waste management projects will be implemented in a stage-by-stage approach: the first stage is based on affordability criteria (for households, municipalities) and after the final, second, stage full compliance with the requirements will be ensured.

Since 1996, MSW-projects have been developed in Latvia. Currently, July 2001, four project statuses can be distinguished, namely: Project completion: Talsi (town and district). The pilot project Talsi was completed in 1997. The new Coastal Region project (see below) will include the Talsi landfill as an option to become the landfill for the complete Coastal Region; Project implementation is ongoing: Riga (town and district), North-Vidzeme Region (Cesis, Limbazi, Valmiera and Valka districts), Ventspils (city and district) and Liepaja (city and district); Project preparation is ongoing: Maliena Region (Aluksne, Balvi and Gulbene districts), South-Latgale Region (Daugavpils town and Daugavpils, Kraslava and Preili districts) and East-Latgale Region (Rezekne town and Ludza and Rezekne districts); Project preparation to be started: Coastal Region (Talsi district, Tukuma district and Jurmala City), Middle-Kurzeme Region (Kuldiga, Saldus and Dobele districts), Zemgale Region (Bauska and Jelgava districts) and Middle-Daugava Region (Jekabpils, Aizkraukle, Madona districts).

20593/01 ADD 3 CONF-LV 56/01 ADD 3 14 EN In table 2.1, some characteristics of the above mentioned projects are presented.

Table 2.1 Name, (potential) number of served inhabitants, (estimated) costs and status ofthe MSW-projects in Latvia Name Served (Estimated) costs Status inhabitants (x 1000 EUR) Talsi 50,000 670 Completed in 1997 Riga 1,000,000 26,280 Construction, ongoing North-Vidzeme Region 200,000 8,773 Construction, planned for 2002 Ventspils 61,000 8,110 Construction, planned for 2002 Liepaja 150,000 14,303 Construction, planned for 2002-2004 Maliena Region 98,000 10,170 FS, EIA started in 2000 South-Latgale Region 243,000 12,180 FS, EIA started in 2000 East-Latgale Region 120,000 11,330 FS, EIA started in 2000 Coastal Region (excluding 114,000 11,000 Under preparation Talsi) Middle-Kurzeme Region 117,000 11,000 Under preparation Zemgale Region 157,000 11,000 Under preparation Middle-Daugava Region 146,000 11,000 Under preparation Total Latvia 2,456,000 135,816

The total investment costs ofthe projects presented in table 2.1 are estimated to be 136 MEUR. 2 These costs are lower than the investment costs mentioned in the introduction (340 MEUR , being the middle of the range 320-360 MEUR, the results of the approximation study LAT-1 08 [Soil and Water, October 1999]). The most important question that has to be answered by the projects mentioned in table 2.1 is whether they comply with Directive 99/31/EC. Below, attention is paid to three types of projects, namely: Completed project: Talsi: Projects in which specific anention has been paid to biodegradable waste (organic and paper and cardboard) by means of introducing the concept of Energy Cells: Riga and Liepaja; Projects where sanitary landfills are planned to be constructed on a short term: North­ Vidzeme Region and Ventspils.

2.4.1 Talsi, Janvari landfill The main components, in relation to Directive 99/31/EC, ofthe Janvari landfill are the following: Entrance with weight bridge and registration; Lined area for waste disposal; Leachate collection and treatment system; Groundwater monitoring network.

2 As will be shown in section 4.1 65 million EUR of the total 340 million EUR are private costs. These costs are not included in table 2.1. 20593/01 ADD 3 CONF-LV 56/01 ADD 3 15 EN The landfill does not include measures to reduce the amount of biodegradable waste going to the landfill3 (Article 5) and to collect and treat the amounts oflandfill gas (section 4, Annex I of Directive 99/31/EC). In case the Janvari landfill will be used for the Coastal Region MSW-project (second phase of Janvari), measures focused on the collection/flaring of generated landfill gas and, to a lesser extent, the reduction of biodegradable waste (to be landfilled) should be incorporated.

2.4.2 Riga, Getlini landfill The unlined (old) landfill of Getlini will continue to be used as final destination of MSW in Riga. However for the (near) future, the following adaptations have been planned and/or already partly carried out: Construction of energy cells next to the existing landfill. After small pre-treatment (recycling activities), the MSW, with a higher content of biodegradable waste, will be treated anaerobically. The produced landfill gas will be collected and converted into electricity while the remaining waste will be disposed of in the neighbouring landfill; Landfill gas from MSW disposed of at Getlini in previous years will be collected and directed towards the landfill gas from the energy cells; Biological treatment of leachate.

The complying part of Getlini is the collection and conversion of landfill gas and the treatment of the biodegradable fraction: Landfill gas from biodegradable waste disposed of in earlier days; Landfill gas production by anaerobic digestion of pre-concentrated biodegradable waste in the Energy Cells; Adequate treatment of biodegradable waste (by means of Energy Cells). In relation to Article 5 of the Directive 99/31/EC, this means that Getlini will comply sooner than required with the requirement described in Article 5, paragraph 2(c). Being, the MSW-treatment facility for Riga (around 40% of the total population, around 43% of the biodegradable waste (excluding the non-domestic MSW to be treated by Getlini!)), the impact is enormous. If all biodegradable waste of Riga (and surroundings, 1 million inhabitants) is converted to landfill gas, the requirements from Article 5, applied on whole Latvia, are (nearly) met.

2.4.3 Liepaja, Grobina landfill The Grobina landfill ofLiepaja (and its district) will be comparable with the Getlini landfill of Riga (in the sense of applying the concept of Energy Cells). However, unlike Getlini, the Grobina landfill, final destination of digested pre-concentrated MSW, will be new and lined in the required manner. So both the lining, adequate treatment ofbiodegradable waste and the landfill gas aspect will be covered in Liepaja.

2.4.4 Ventspils, Pentuli landfill The Pentuli landfill is similar to the Janvari landfill (first phase): compliance with the lining aspect but no collection/flaring of landfill gas and no reduction ofbiodegradable waste. Full compliance with the Directive will require additional investments, not incorporated in the investment costs mentioned in table 2.1.

3 Article 5 of Directive 99/31/EC refers to the situation at national level. As indicated in section 2.4.2, the complying impact of Getlini (and to a lesser extent Grobina) is such that other regions will not, or to a much lower extent, have to reduce the amount of biodegradable waste going to their landfills. 20593/01 ADD 3 CONF-LV 56/01 ADD 3 16 EN 2.4.5 North-Vidzeme, Daibe landfill The Daibe landfill also looks like the Janvari landfill (first phase): compliance with the lining aspect but no collection/flaring of landfill gas and no reduction of biodegradable waste.

In table 2.2, a summary of the characteristics of the above described landfill projects is presented.

Table 2.2 Summary of Lining, Landfill gas collection and Biodegradable waste reduction characteristics of the landfills Janvari, Getlini, Grobina, Pentuli and Daibe (in rea1 f Ion t 0 D.1rec f1ve 99 /31/EC reqmremen. t s ) Lining Landfill gas Reduction of Biodegradable waste to landfill Janvari + - -a Getlini (Riga) -4 + + Grobina (Liepaja) + + + Pentuli (V entspils) + - -a Daibe (N-Vidzeme) + + -a a Not necessary now and investments in the reduction of biodegradable waste going to landfills can be postponed

It is expected to reach full compliance by the end of the extension period.

2.5 Balance between public and private investments needed Solid waste management in Latvia is the full responsibility of municipalities. It is their duty to provide waste management services for inhabitants in the relevant municipality borders, including collection, transportation and disposal. After the implementation of the regional municipal solid waste management projects and the construction of the regional landfill, where all the municipalities of the region will take part in, the situation will change: there will be one municipal solid waste management company responsible for the disposal of w~te. Shares of the company will be owned by the regional municipalities in proportion to the number of inhabitants. Also private investments are expected in the municipal solid waste management sector but mostly these investments will concern collection, transportation, recycling, recovery and reuse activities. In order to create a municipal solid waste management infrastructure system with main emphasis on disposal, there are foreseen public investments from different sources. Government or local governments cover all responsibility about financing of the implementation. In general the finance scheme of projects consists ofthe following parts: grant, own resources input, credit part and subsidy from the state.

In the next subsections the different sources used by the Government to finance environmental investment programmes and projects are described. The total investments in the waste management sector divided over the years 1995-2012 and over the different financial sources are shown in ANNEX IV.

4 The old landfill site ofGetlini (where the waste after the energy cells will be disposed of) will not be lined. The lining of the Energy Cells is insufficient. In order to comply with Directive 99/31/EC either the lining of the Energy Cells should be improved or Getlini have to be closed in 2009 (after the first round of Energy Cells) and a new landfill and new Energy Cells will have to be constructed. 20593/01 ADD 3 CONF-LV 56/01 ADD 3 17 EN 2.5.1 State budget, special budget and budget of municipalities Financing of the State budget is allocated through the Public Investment Programme (PIP) and it is the main state financial source for environmental infrastructure projects. In 2000 the environmental sector received 0.8% of GDP through the Public Investment Programme and it is planned to increase this share to 1.3% in the period 2001-2006 (see section 4.5.1).

Latvian Environmental Protection Fund (LEPF). LEPF is an institution under the subordination of the Ministry of Environmental Protection and Regional Development (MEPRD) and it administrates the special state budget for environmental protection. The resources for the fund are created by the income from the Nature Resource Tax. 40% of the Nature Resource Tax income from the payments for nature resources output and utilisation in the economic cycles and from the payments for the limited pollution emissions in the environment are transferred to LEPF. But Nature Resource Tax income from import and realisation of goods and products not friendly to the environment, packaging of the imported and domestic production and goods, as well as from the above limit payments and fines is transferred for 100% to the LEPF.

These funds may be used only to finance and credit measures and projects of environmental protection, repaying amounts of taxes received for goods and products harmful to the environment to businesses utilising or recycling leftovers of these goods and products, financing programs of environmental studies and projects, training and continued education of specialists in the environmental protection area. Over the period 1995-2000, the municipal solid waste sector received from the State Budget 4.8 million EUR (prices 2000). It is expected to receive from the State Budget and the special budget in total33 million EUR (over the period 1995-2012, prices 2000) for the implementation of the municipal solid waste management strategy.

Budget of municipalities and municipal enterprises. There is a close co-operation between the Ministry of Environmental Protection and Regional Development and municipalities in the implementation of investment projects. For example, in the MSW-prograrnme "500-" projects are only started after the municipal councils make a decision to create a municipal solid waste management region, take part in the programme and consider it as a priority. An essential precondition for the municipalities is to take part in project financing with at least 10% of the total project costs.

Investments from beneficiaries in the waste sector reached 1.4 million EUR (over the period 1995- 2000, prices 2000). It is expected to receive in total28 million EUR (over the period 1995-2012, prices 2000) for the implementation of the municipal solid waste management strategy.

2.5.2 Bilateral and other donors Bilateral and other donors are mainly participating in the preparation of feasibility studies, tender documents, co-financing of investment projects and twinning component. The most important donors in the municipal waste management projects in Latvia have been DEP A (Danish Environmental Protection Agency), the Finnish Ministry of Environment and SIDA (Swedish International Development Agency).

20593/01 ADD 3 CONF-LV 56/01 ADD 3 18 EN Bilateral investments in the waste sector was 2.0 million EUR (over the period 1995-2000, prices 2000). It is expected to receive in total179 million EUR (over the period 1995-2012, prices 2000) for the implementation of the waste management strategy including EU funding ISPA. Financing from the EU ISPA (Instrument for Structural Policies for Pre-Accession) fund allows implementing EU requirements in waste sector. The EU ISPA :fund co-finances the environment and transport sectors only for the period 2000 - 2006. The allocation of funds from ISP A for environmental projects (both water and waste management) in Latvia is approximately 164 million EUR (prices 1999, assuming that Latvia will receive 4.5% of total available amount ofiSPA :funding) over 7 years (on average: 23.4 million EUR per annum).

The main focus for ISP A in the environmental sector in Latvia is: Measures which enable Latvia to comply with the requirements of Community Environmental Law and with the objectives of the Accession Partnership; Measures shalrbe of a sufficient scale to have· a significant impact in the improvement of environmental sector.

The total cost of each measure shall in principle not be less than 5 million EUR although in exceptional cases, measures with a total cost less than 5 million EUR may be considered. The rate of Community assistance granted under ISPA can go up to 75% of the total costs of expenditure by public bodies. The Commission may also consider loans by International Financing Institutions to these governmental bodies to be equivalent to national public funds. ISP A funds may not be combined with the other Pre-Accession Instruments. Preliminary studies and technical support measures (e.g. economic/financial feasibility studies, environmental impact assessment) may be financed up to 100% of the total cost. - The process of selection of the tasks for ISP A programme for the next years was based on guidelines resulting from the verification of basic assumptions of environmental policy prepared by the Government and on the formal requirements contained in the Regulation on ISP A.

Project identification and financial schemes are being developed in co-operation with the Public Investment Programme. MEPRD always requests financial participation of municipality in the _project. Municipalities are also requested to take a loan as financially affordable. Particular attention is being paid to the co-operation with International Financial Institutions.

The criteria according to the National ISPA Environmental Strategy for selecting priority areas for investment are as follows:

General criteria Projects which comply with EU environmental policy objectives (Art. 130 R of the Treaty): • Preserving, protecting and improving the quality of the environment; • Protecting human health; • Prudent and rational utilisation of natural resources;

Projects which comply with EU environmental principles (Art. 130 R of the Treaty): • Precautionary principle; • Preventive action; • Damage rectified at source; • Polluter pays;

20593/01 ADD 3 CONF-LV 56/01 ADD 3 19 EN Projects which best serve the protection of human health; Full compliance with EU directives after completion of the projects, contingent on affordability - at the latest by 2012 based on a two-stage implementation programme.

Specific criteria Projects which are a priority in the National Programme for the Adoption of the Acquis (NP AA) and will help the country to comply with the most investment-intensive Directives; Projects which fit into directive-specific implementation programmes; Projects designed to comply with EU technical specifications and quality standards and will operate within an adequate legal and administrative framework; Waste projects which fit into waste management plans according to the waste framework directive or into action plans as defined in the air framework directive; Projects which can demonstrate quantitative reductions in pollution for a maximum number of people (thus producing an effect of scale); Projects which have the potential to stimulate strong partnership between central government and regional and local authorities; Projects which have the best potential to contribute to gradual achievement of economic and social cohesion of Latvia with the EU (showing the highest net economic, environmental and social benefits); Projects which will meet the standards set for sensitive areas (even if achieved in phases); Commitment of municipalities, their financial contribution for the implementation of the project; Readiness of project documentation for the implementation ofthe project.

Priority from the beginning of the period 2000 - 2006 is given to water supply and wastewater treatment projects, solid and hazardous waste management projects. In addition to the investment projects in the water and waste sectors, after year 2002 priority will also be given to the air sector investment projects.

Allocated investments from EU ISPA fund in waste sector up today are 3 million EUR for the Ventspils Region Solid Waste Management project. For the implementation of the waste management strategy it is expected from EU ISPA to receive in total approximately 33 million EUR till year 2006. Afterwards it is belieYed that there will be other EU funding available.

2.5.3 Loans The total amount of investments for the waste sector development can be increased by loans. The Ministry of Environmental Protection and Regional Development stimulates the municipalities to increase the share of municipal co-financing by loans and considers it as the municipality's financial contribution to the project. The total share ofloans in project financing usually is about 10% of the total investments, and can be increased taking into account affordability. There is a possibility to combine the credit component from more than one source.

Local financing institutions. Local financing institutions for loans for waste management projects are the State Treasury or Commercial Banks. Positive aspects related to these institutions are the quite easy procedure for receiving a credit and the report system.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 20 EN International Financing Institutions (IFI) (Nordic Investment Bank, European Investment Bank, Nordic Environment Finance Corporation, European Bank of Reconstruction and Development, World Bank). The State guarantied credit lines have been open by the Nordic Investment Bank (NIB) and the European Investment Bank (EIB) which gives soft loans for infrastructure projects in Latvia. The Nordic Environmental Financial Corporation (NEFCO) is also providing technical assistance for institutional building and training activities.

Loans have to be taken by the beneficiary and in some cases have to be guarantied by the State. Investments as loans in the waste sector were 0.1 million EUR (over the period 1995-2000, prices 2000). It is expected to receive loans from IF!' s in the total amount of 36 million EUR (over the period 1995-2012, prices 2000) for the implementation of the municipal solid waste management strategy.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 21 EN 3 STRATEGY FOR IMPLEMENTATION 3.1 Context of the strategy: socio-economic issues and institutional factors 3 .1.1 Socio-economic issues Implementation of the EU Directives is closely linked to the social-economical situation of the country. Although the social-economical situation is on the mend, Latvia has requested a transition period until year 2012. The background of this transition period is the insufficient sources of financing for the short-time implementation of the EU Directives. Latvia's state budg~t and budgets of local communities are limited for investments in the environmental sector. The designed investments are based on the forecast of the development of the social-economical situation in Latvia. Despite a rather substantial decline of industrial outputs caused by the Russian crisis (1998), the overall economic activity in Latvia in 1999 stayed at the level of the preceding year and real Gross Domestic Product ( GDP) exceeded the level of 1998 by 1.1 %. In 2000 the growth of GDP was much faster and it exceeded the respective figure of 1999 by 6.6 %. The population of Latvia equalled, according to the provisional data of the Population Census 2000, to 2 million 375 thousand persons on March 1, 2000. With the improvement of the economic situation in Latvia also the living standards gradually go up, however still remaining at a rather low level. GDP per capita calculated in purchasing parity units in 1999 in Latvia equalled to 27 % of the average EU level. The average gross wage earned by people employed in the national economy grew on average by 5.9% in 2000 in comparison to the respective period of proceeding year and reached EUR 262. The average gross monthly wage of people employed in the public sector in the mentioned period was higher- almost EUR 295 and had increased by 7.9 %. At the same time, consumer prices rose by 2.9 %. Consequently, real wage of all people employed in national economy had in the average gone up by 2.5 % and for those working in the public sector- by 4.4 %. Since the official start of registering unemployment it had reached its highest level at the end of April1999 -10.2% (officially registered unemployed). After that the registered unemployment started to go down reaching 7.8% of total economically active workforce at the beginning of December 2000.

3 .1.2 Investments in et:Wironmental protection In table 3.1, the investments in environmental protection (predominantly in (waste)water), and in waste management for the period 1995-2000 have been compared with the development of GDP.

Table 3.1 Development ofGDP, investments in Environmental Protection and investments in the Waste sector in Latvia for the period 1995-2000 Year GDP-development a Environmental Investments a Waste Management (MEUR) (MEUR) %ofGDP investments a (MEUR) 1995 6157 12,2 0,20% 0,0 1996 6364 19,5 0,31% 0,3 1997 6912 30,3 0,44% 0,0 1998 7180 46,2 0,64% 2,6 1999 7258 50,8 0,70% 2,2 2000 7738 62,2 0,80% 3,3 a All monetary data are expressed in constant prices 2000

20593/01 ADD 3 CONF-LV 56/01 ADD 3 22 EN 3.2 Proposed scenario(s) for full implementation, and assumptions For the implementation of the Directive 99/31/EC it is necessary to take the steps described in the next two subsections.

3 .2.1 Legal transposition of requirements of the Directive In accordance with the analysis of the requirements of the Directive and Latvian legislation there have been discovered certain gaps. Transposition of the missing requirements of the Directive will be achieved by preparation and adoption of the Cabinet of Ministers regulations On Construction of Landfills, and on Management and Closure of Landfills and Dumps. In accordance with the Waste management law these regulations must be adopted in 2002.

3 .2.2 Practical implementation of the directive Practical implementation of the Directive can be achieved by a separate project approach, including also grouping of the projects with regard to their development (see section 2.4). In order to implement all the requirements of the Directive, special attention shall be paid to the location of potential landfills and to the decrease of possible environmental pollution in accordance with the requirements of the Directive, including use of artificial insulating layers and prevention of pollution of surface and groundwater. These requirements have been taken into account when the feasibility studies, EIA and designs of the most advanced regional landfill projects were prepared (see section 2.4). The same approach shall be kept in the development of other regional landfill projects. The following components have to be included in the scope of the regional waste management projects: Decreased amount of biodegradable waste disposed of at the landfill. Implementation of this component will ensure implementation of the requirements of Article 5 of the Directive. The decrease can be achieved by introducing the separation of the biodegradable waste either at the source of the production, or at the landfill. There shall be evaluated disposal methods for biodegradable waste, for example, composting, and these disposal options also shall be included in the scope of regional waste management project; Treatment of waste before landfilling. Implementation of this component will ensure the implementation of the requirements stated in Article 6 of the Directive. The most appropriate treatment method shall be evaluated already during the preparation of the feasibility study. Treatment methods could be separation and sorting of waste at the source of production or at the landfill, composting of waste, shredding, pressing. In case of the separation of waste, it is important to ensure that there will be options either for the disposal or for recovery of the separated waste; Extraction and utilisation of landfill gas. Implementation of this component will ensure implementation of the requirements stated in Annex I and Annex III of the Directive 99/31/EC. The best option for the extraction and use of the landfill gas shall be evaluated, taking into account the reduced amount of waste to be disposed of in the landfill. Extraction of the biogas shall also be considered in relation to the closure of dumps, especially the larger dumps. Use of the collected gas depends on the price of electricity or district heating. In most of the cases only flaring will be applied; Improvement of the waste collection system is a very important pre-condition for the implementation of the Directive, as this system includes decisions about separate collection of wastes. Improvement of waste transportation is essential as the number of landfills is rather small;

20593/01 ADD 3 CONF-LV 56/01 ADD 3 23 EN Closure of the existing dumps in accordance with the requirements of the Directive is a very essential component as there were until2001 more than 500 dumps of different sizes that have to be closed and/or re-cultivated.

The main assumptions are: The political situation will not change; Availability of financing; The coming administrative-territorial reform will not affect the implementation of projects; Municipalities will be willing to participate in the projects.

3.3 Roles of various actors and responsibilities for investments 3.3.1 Roles of various actors in management of municipal waste In table 3.2, the responsibilities of the actors involved in the management of municipal solid waste are presented.

Table 3.2 Responsibilities of the actors concerned with the management of municipal solid waste Actor Responsibilities Municipalities - Organisation of collection, transportation and disposal of municipal waste; - Supervision of transportation and disposal of waste; - Taking decisions about sitting of new waste recovery and disposal facilities; - Issuing of local regulations on waste management, including order of paying for waste management services; - Decisions on the co-operation with other municipalities regarding waste management; - Participation at the regional municipal waste management projects with co-financing of at least 10% of total project costs; - Perform or fmance the measures for the closure of the landfill or dump, - or the termination of the operation ofthe waste recovery facility.

MEPRD Formulate the waste management plan on national level; - Co-ordinate the implementation of the national waste management plan; - Prepare draft regulatory enactments in the field of waste management; - Compile information regarding waste management; - Co-ordinate the construction and organise financing for regional municipal waste management projects and for the construction of municipal waste disposal sites.

REB Environmental management and quality control; - Enforcement of national legislation; - Issuing permits for recovery, disposal, collection, storage, re-loading and transportation of waste; - Takes the decision whether an Environmental Impact Assessment for implementation of various investment projects in accordance with the Law on EIA is necessary.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 24 EN Actor Responsibilities Waste - Receives permit for recovery, disposal, collection, storage, re-loading of management waste; company5 - Signs contract with municipality where they are operating; - Record data about provided waste management service and provide these data to MEPRD or its authorised institution or municipalities; - Manage the landfill, dump or waste recovery facility in accordance with the requirements referred to in the permit for the disposal of waste or the treatment of waste and in regulatory enactments. - Waste - Manage waste in accordance with the requirements of local by- laws producer (binding regulations); - Cover costs for the provided waste management service by means of an adequate tariff. REB = Regional Environmental Board; MEPRD = Ministry of Environmental Protection and Regional Development

3 .3 .2 Responsibilities for investments In table 3.3, the responsibilities ofthe actors involved in the financing ofthe municipal solid waste management projects are presented.

Table 3.3 Responsibilities of the actors concerned with the financing of municipal solid waste management projects Actors Responsibilities MoF - Implementation of state policy in the field of budget, short- term and long-term finance taxes and customs; - Determination of loans and regulations within the competence of the MoF according to the requirements by European Agreement and recommendations of the White Book by the European Commission, insurance of the introduction of above mentioned requirements and recommendations; - Financial management of ISP A funds in accordance with the memorandum of understanding on use of national funds for the needs of ISPA.

State Treasury - Once every half-year submits an overview to the MoF on the division and use of foreign loans.

MoE - Preparation of the state investment policy; - Preparation of Public Investment Program.

SSACIFA - ISPA co-ordinator; - Supervision of the implementation of ISP A projects in accordance with the finance memorandum; - Ensures a link with the EU accession process; - Co-ordination ofiSPA projects with other finance instruments of the EU;

5 The Waste Management Company is in fact only involved in landfill management. The policy ofMEPRD is to create one company, supported by the municipalities of the region, to manage the landfill site of the region and to leave the collection of waste to the free market. 20593/01 ADD 3 CONF-L V 56/01 ADD 3 25 EN Actors Res_Ronsibilities - Submission of ISP A applications to the European Commission.

MEPRD - Preparation of ISP A sectoral strategies and planning of ISP A applications and submission to the European Commission; - Preparation of project proposals for the Public Investment Program; - Prepares strategies for investments in development as well as analysis of investment opportunities; - Attempts to attract funding from donor countries, international organisations and financial institutions and organises and co-ordinates projects funded by the EU pre-accession structural funds; - Elaboration of the national ISPA strategy in the sector of environmental protection; - Preparation of projects relevant to the above mentioned strategy; - Monitoring of relevant projects in Public Investment Program.

Municipalities - Provides guarantees to the loan; - Provide a guaranties to the investment project implementation; - Participate in ..the implementation of the projects. .. MoF = Mimstry ofFmance; MoE= Mm1stry of Economy; SSACIFA= Secretariat for the M1mster for Special Assignment for Co-operation with International Financing Agencies; MEPRD = Ministry of Environmental Protection and Regional Development.

3.4 Institutional development plan In accordance with section 2.3, the most important tasks of the institutional development plan are described in the next two subsections.

3.4.1 Preparation and start-up of data collection system In the case ofhazardous waste management there has been established a date collection system, in which questionnaires are sent annually to the potential producers of hazardous waste. They are requested to fill in the questionnaire and send it to their responsible Regional Environmental Board, where the data are checked. Afterwards the questionnaires are sent to the Environmental State Inspectorate for additional checking. and then the questionnaires are submitted to the Latvian Environmental Agency where data are compiled and stored into a database. A similar system could also be established for municipal solid waste. It is planned that the concept of the questionnaire and the database will be prepared in the year 2001 so that the actual collection of data will start in the year 2002. Special attention shall be paid to the composition of municipal solid waste. So far, such estimations have been made in the scope of the feasibility studies for the regional MSW projects. It is planned that a study on the composition of municipal solid waste will be carried out in 2002.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 26 EN 3.4.2 Preparation of waste management plans In accordance with the Law On Waste Management, the Cabinet of Ministers shall approve a waste management plan for Latvia until the year 2002. In February 200I, a PHARE Regional Environmental Approximation Project (REAP) facility project called Multi-year Waste Management Plan for Latvia has started. The project includes aspects of all planning requirements mentioned in the EU directives. In ANNEX I, the Terms of Reference are presented. It is expected that the project will be finalised in October 200I and that the prepared plan can be submitted to the Cabinet of Ministers in the first half of2002 and approved by the end of2002. In addition, the Waste Management Law contains a provision that municipalities have to organise and to approve municipal waste management plans for their territories and that several municipalities can prepare a common municipal waste management plan. As the feasibility studies for the regional municipal waste management projects contain all information required by the Waste Management Law, it can be expected that these municipal plans, to be elaborated step-by-step and expected to be finalised by the year 2004, will result in adequate MSW management systems fully complying the Directive.

3.4.3 Development of institutions in the scope of regional municipal waste management projects In order to ensure that the regional waste management project will be implemented successfully, it is important that a inter-municipal organisation (enterprise) will be formed. This enterprise will ensure the operation of the established landfill site and the paying back of taken loans. Such an organisation is formed by the municipalities in the on-going regional municipal waste management projects. In I999, the first such organisation was founded in the North-Vidzeme project. Here a rather complicated structure was developed with more than 80 municipalities owning shares in the waste company. In case ofthe Liepaja and Ventspils regional municipal waste projects, the structure of the organisation is simpler because of the involvement of a smaller number of districts (four in North-Vidzeme versus only one in Liepaja and Ventspils). The development of such municipal organisations that will operate the landill is also planned for the other regional waste management projects during the preparation of the feasibility studies. It is planned that the last municipal organisation will be formed in 2007. Collection of the waste will be done by other companies.

3.5 Approach to project prioritisation and implementation The MSW management projects are prioritised by using the following criteria: Ability of the municipalities to propose a regional municipal waste management project which could serve at least I 00,000 inhabitants; Ability of the formed inter-municipal organisation to participate with at least I 0% in the total investments.

Project development is characterised by the scheme presented in ANNEX II. The development of a regional municipal waste management project starts with the decision of municipalities to have a joint municipal waste management system and a joint regional landfill. It is a precondition that in the joint waste management system shall participate a number of municipalities that at least covers I 00,000 inhabitants. Representatives of the municipalities address the MEPRD asking for reviewing the project proposal and possible supporting and financing of the project. In case of a positive decision by the MEPRD, the project implementation unit of the program "500-" together with the representatives of the municipalities prepare Terms of Reference for the Pre-feasibility Study. During the Pre-feasibility Study basic information is collected, and based on that information the

20593/01 ADD 3 CONF-LV 56/01 ADD 3 27 EN Terms of Reference for Feasibility Study will be prepared. The Feasibility Study contains different issues listed below: Construction of a (regional) Waste Management system that complies with the EU and Latvian laws with regard to waste management; Review of the regional situation: • Appropriateness of regional boundaries; • Area and its population; • Existing infrastructure (especially the road network); • Demographic development; • Regional socio-economic analysis;

Waste management data: • Type of waste and quantities; • Waste collection, transport and disposal, the participation of institutions and organisations; • Waste recovery and recycling; • Existing landfills and their management; • Analysis of the health impact of waste; • Analysis of industrial waste arising; • Review and analysis of the existing laws; • Evaluation of the existing tariff system;

Prognosis regarding future waste arising: • Concentration of the biggest waste production; • Prepare prediction for the waste arising over the next 25 years;

Project components: • Waste collection and transportation system; • Segregated collection/recycling system; • Waste disposal system; • Information and education of the community regarding the waste management system;

Proposals to the regional waste management organisation for the development of components that are required to be included within the organisations business plan: • Quantify major work packages to be undertaken; • The new organisations duties and responsibilities; • Co-operation with existing organisations that participate in waste collection;

Project cost: • Capital investment that is critical to project realisation; • Operational and system exploitation costs;

Project financial analysis: • Expenditure and income analysis; • Project sensitivity analysis; • Project financial effects evaluation; • Tariff assessment; • Financing scheme.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 28 EN When the Feasibility Study is finished, the proponent of the project submits the application for the Environmental Impact Assessment (EIA) programme to the State EIA Bureau. After receiving the EIA programme the preparation of the draft EIA is started in accordance with the requirements of the Law On Environmental Impact Assessment. In the meantime the potential financiers evaluate the technical and financial aspects of the project. After the finalisation of the EIA municipalities shall decide where the landfill will be located and the preparation of the Financing Plan for the project is started. After fmalisation of the Financing Plan, the preparation of the tender documents for project implementation starts.

During the preparation of the Feasibility Study, the municipalities in co-operation with the MEPRD form an undertaking, which is acting as the Project Implementation Unit (PIU). The PIU is in charge of formulating Terms of Reference, Supervision and responsible for successful implementation of the Waste Management project.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 29 EN 4 FINANCING COSTS OF IMPLEMENTATION

4.1 Estimated costs of implementation under selected scenario The selected scenario is to construct 10-12 new landfill sites complying with Directive 99/31/EC before 2010 and to complete the recultivation of old, small dumpsites before 2013. In order to estimate the implementation costs for this scenario, the following aspects are considered: Investment costs are based on the approximation study LAT-108 [Soil and Water, October 1999]; An updated MSW-scenario has been constructed. In ANNEX III, the underlying assumptions for this updated MSW-scenario are discussed in detail; The implementation period is until2012; The share of biodegradable waste, consisting of organic waste and paper and cardboard, is assumed to be constant in time.

In table 4.1, the forecasted amounts ofMSW related to the population growth and the economic growth is presented for the period 1996-2012.

Table 4.1 Updated MSW-datalforecasts for the period 1996-2012 and the share of biodegradable waste in it Year Population a Economic growth b MSW-production Biodegradable waste (million) (%) (kt/year) (kt!year) 1996 2,50 3,4% 627 364 1997 2,48 8,6% 643 374 1998 2,46 3,9% 648 377 1999 2,44 1,1% 647 376 2000 2,42 6,6% 660 384 2001 2,41 5,4% 673 391 2002 2,40 5,5% 685 398 2003 2,39 5,8% 699 406 2004 2,38 5,9% 713 414 2005 2,37 5,9% 728 423 2006 2,36 6,0% 743 432 2007 2,35 6,0% 758 440 2008 2,34 6,0% 773 449 2009 2,33 6,0% 789 458 2010 2,32 6,0% 805 468 2011 2,30 6,0% 821 477 2012 2,29 6,0% 838 487 a Source: [LUDC, 1999] b Source: [CoM, 9 May 2001]. It is assumed that the economic growth in the period 2007-2012 is like 2006

According to Article 5 of Directive 99/31/EC it is permitted to landfill in 2007 (July 2006 to be more precise) 75% of the amount ofbiodegradable waste landfilled in 1996 (1995 to be more precise). For 2010 (July 2009 to be more precise) the permitted percentage will be 50%. When these percentages are applied on the situation in Latvia, this results in the following:

20593/01 ADD 3 CONF-LV 56/01 ADD 3 30 EN Permitted in 2007: 75% of364 kt/year, the amount of biodegradable in 1996, or 273 kt/year. Regarding the forecasted amount of biodegradable waste in 2007, this results in a reduction of38%; Permitted in 2010: 50% of364 kt/year, or 182 kt/year. Regarding the forecasted amount of biodegradable waste in 2010, this results in a reduction of 61 %; In 2007 and certainly in 2010, the energy cells of the landfills of Riga and Liepaja will be working and organically recycle a considerable share of biodegradable waste produced in Latvia (around 50%) and thereby potentially decreasing the needed composting capacity (to fulfil the requirements from Directive 99/31/EC); In 2010, 286 kt (468 kt/year produced minus 182 kt/year permitted) biodegradable waste should be treated according to the Directive; Assuming a 50% reduction of biodegradable waste by use of the Energy Cells in Riga and Liepaja, a composting capacity of 140-150 kt/year will be required in 2010. This agrees relatively well With the needed composting capacity of 120-160 kt/year stated in LAT-108 [Soil and Water, October 1999].

In table 4.2, the investment costs (million EUR) for landfills, waste collection systems, closing and aftercare of the existing landfills and composting are presented.

Table 4.2 Investment costs to comply with Directive 99/31/EC according to LAT-1 08 Cost component Investments Comments _(1\IEUR) Landfills 155 380- 530 kt/year, capacity Collection system6 65 380- 530 kt/year, capacity Compostif!g 32.5 120- 160 kt/year, capacity Closure and aftercare of existing landfills 87.5 500 - 600 landfills Total 340 500-690 kt/year, capacity Source: LAT-108 [Soil and Water, October 1999}

Although there are some differences between the investment costs from LAT-108 [Soil and Water, October 1999] and the specific investment costs coming from !SPA-projects (North-Vidzeme, Liepaja and Ventspils), the investment costs from LAT-108 have been maintained. Below some arguments to stick to the same investment costs are presented: In general, the unit investment costs from specific projects, are lower than the ones that can be derived from table 4.2. However, as indicated in section 2.4, different aspects are not considered in the specific projects (e.g. landfill gas recovery, lining) which should be considered in order to comply with Directive 99/31/EC; The amount of MSW to be transported and treated properly (excluding Composting) seems to be higher than predicted in LAT-108: 380-530 kt/year in LAT-108 versus around 700 kt/year (total MSW-production reduced with the required composting capacity) according to the updated forecasts (see table 4.1); As indicated in section 2.4 (table 2.1 ), the estimated investment costs exclude the private costs (collection system).

6 As indicated in section 3.3.1 (footnote 5) it is the policy ofMEPRD to leave the collection of waste to the free market. This implies that the costs related to the Collection system should be considered as private costs. Therefore the public costs for implementing Directive 99/31/EC will be 275 million EUR. 20593/01 ADD 3 CONF-LV 56/01 ADD 3 31 EN 4.2 Timetable for implementation The regional municipal waste management projects are divided into three groups regarding their development. In section 2.4 four project statuses were mentioned because Talsi, a completed pilot project was included. Here Talsi has been excluded here because it is not a regional MSW management project. In table 4.3, the different stages of the three project groups are presented. Group 1 (on-going implementation) consists of Riga, North-Vidzeme, Ventspils and Liepaja, Group 2 (on-going project preparation) consists ofMaliena, South-Latgale and East-Latgale and Group 3 (under preparation) consists ofMiddle-Daugava, Zemgale, Middle Kurzeme and Coastal (which probably will include the infrastructure established in Talsi).

Table 4.3 The different stages of the actually 11 MSW-management projects in Latvia City/region Pro· ect stages FS finished EIA finished DD finished Construction Riga City 1997 1997 2000 Ongoing North-Vidzeme 1998 1999 2000 2002-2003 Ventspils 1999 1999 2001 2002-2003 Liepaja 2000 2000 2001 2002-2006 Maliena Ongoing Ongoing South-Latgale Ongoing Ongoing East-Latgale Ongoing Ongoing Middle Daugava Zemgale Middle Kurzeme Coastal FS = Feasibility Study; EIA = Environmental Impact Assessment; DD = Detailed Design

4.3 Annual costs over proposed period of implementation of investment capital, operation & maintenance costs As indicated in section 4.1, the investment costs presented in LAT-108 [Soil and Water, October 1999] have been maintained. To be consistent, also the operational costs, from LAT-1 08 have been maintained. In table 4.4, these annual costs are presented.

T abl e 44 0 perat10na costs fior Imp.. 1 ementatwn o fD.1rect1ve 99/31/EC accord. mg to LAT- 108 Cost component Operational costs (MEUR/year) Landfills 3 Collection system a 4.5 Compostin~ 0.5 Closure and aftercare of existing landfills 0 Total 8 a The operational costs of the Collection system are considered to be private costs Source: LAT-108 [Soil and Water, October 1999]

4.4 Sources of finance In table 4.5 the sources of finance for the total public investments of275 million EUR (prices 2000) are presented.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 32 EN Table 4.5 Planned sources of finances to implement the public part ofDirective 99/31/EC in Latvia Sources of Finances - Investments (o/o) State budget 12% Loans 13% Grants (e.g. ISP A) 65% Own resources 10% Total 100%

4.5 Analysis of affordability on national, municipal and household levels 4.5 .1 Analysis of affordability on national level The target of the MEPRD is to invest 1.3% of the GDP in the environmental sector. As can be seen in table 3.1, the investment level in 2000 is 0.8%. In table 4.6, the development of GDP and the expected share of GDP to be invested in the environmental sector is presented for the period 2000- 2012.

Table 4.6 Development of GDP and development of investments directed towards the environmental sector GDP-growth a GDPa Investment in environmental sector a (%) (MEUR) (%) (MEUR) 2000 6,6% 7738 0,8% 62 2001 5,4% 8159 0,8% 65 2002 5,5% 8607 0,9% 77 2003 5,8% 9106 1,0% 91 2004 5,9% 9641 1,1% 96 2005 5,9% 10214 1,2% 102 2006 6,0% 10827 1,3% 108 2007 6,0% 11476 1,3% 115 2008 6,0% 12165 1,3% 122 2009 6,0% 12894 1,3% 129 2010 6,0% 13668 1,3% 137 2011 6,0% 14488 1,3% 145 2012 6,0% 15357 1,3% 154 a All monetary data are expressed in constant prices 2000

Based on table 4.6 can be stated that if the developments are as expected ti112010 around 910 million EUR (constant prices 2000) can be invested in the environmental sector and even 1,340 million EUR (constant prices 2000) ti112012. It should be noted however that these potentially high environmental investments comprise all financing resources (own resources, loans, grants, private costs) and not only the State Budget (for division of funding, see previous section)!

Besides in waste management, investments will take place in water supply and wastewater treatment projects. As indicated in section 4.1 340 million EUR (public and private costs) are estimated to be invested in waste management in order to comply with Directive 99/31/EC while around 1120 million EUR are required in the water sector (to comply with both the Drinking Water and Urban Wastewater Treatment Directive) for the coming 10-15 years [MEPRD, July 2001].

20593/01 ADD 3 CONF-L V 56/01 ADD 3 33 EN 4.5.2 Analysis of affordability at household level In 2000, the average household income per month was around 124 BUR/household member. Over Latvia, it varied from 93 BUR/household member/month in rural areas to 157 BUR/household member/month in Riga. Assuming a growth of3.4% per year for the period 2001-2005 and 3.5% per year after 2005, the average household income per household member will be 185.8 EUR/month in 2012. According to the World Bank, the maximal percentage of the household income to spend on waste management services is 1%. If all inhabitants pay (waste management services cover 100%), there could be available an amount of "tariff' money of 560 MBUR (prices 2000) over the period 2000-2012, or around 43 million BUR per year. In reality, the following "disturbing" factors appear, resulting in much lower available ''tariff' money: Coverage of 100% will hardly be reached; Increase of coverage happens gradually over the period 2000-2012: project after project; 1% is the maximum. The ISPA projects for Ventspils, Liepaja and North-Vidzeme reach affordability percentages of 0.5-0.6%.

The amount of money coming from the households should however at least be sufficient to cover the operational and maintenance costs (see section 4.3), part of the future investments in the waste management sector and the repayments of taken loans.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 34 EN 5 IMPLEMENTATION PLAN

5.1 Key steps and assumptions The key steps of the implementation plan are the following: Legal transposition of Directive 99/31/EC; Development of the missing elements of the institutional set-up for implementation of Directive 99/31/EC; Implementation of Directive 99/31/EC concerning the management of municipal waste.

The main assumptions are the ones mentioned in section 3.2.2.

5.2 Short term, medium term and long term initiatives (including a short list of priority projects) The short-term initiatives (until2005) are the following: Transposition of the requirements of Directive 99/31/EC; Preparation of the Cabinet of Ministers regulations On Sitting of Landfills, and on Management and Closure of Landfills and Dumps. This will be finalised by the year 2002; Preparation and start-up of data collection system on management of municipal waste. The system will be implemented in year 2002 (see section 3.4.1); Preparation of the waste management plan will be finalised by the end of year 2001. It has to be approved by Cabinet of Ministers by the end of2002 (see section 3.4.2); Start. of the construction of landfills in the scope of the North-Vidzeme, Ventspils and Liepaja Regional Municipal Solid Waste Management Projects; Finalisation ofthe construction of landfills in the scope ofthe North-Vidzeme and Ventspils Regional Municipal Solid Waste Management Projects (planned for 2004); Closure and partly remediation/recultivation of dumps in the North-Vidzeme, Ventspils and Liepaja Regional Municipal Solid Waste Management Project areas; Finalisation of the Feasibility Studies for the South-Latgale, East-Latgale and Maliena Regional Municipal Solid Waste Management Projects; Finalisation of the Environmental Impact Assessment for the South-Latgale, East-Latgale and Maliena Regional Municipal Solid Waste Management Projects.

The medium-term initiatives (2005-2009) are the following: Completion of the construction of the Riga City landfill; Finalisation of the construction of the Liepaja landfill; Finalisation of the construction of the landfill planned in the South-Latgale, East-Latgale and Maliena Regional Municipal Solid Waste Management Projects; Preparation of Feasibility Studies for the waste management projects in Middle-Kurzeme, Zemgale, Middle-Daugava and Coastal Area; Finalisation of the construction of the landfill planned in the South-Latgale and East-Latgale Regional Municipal Solid Waste Management Project; Closure and partly remediation/recultivation of dumps in the Riga City, North-Vidzeme, Liepaja, Maliena, South-Latgale, East-Latgale and Maliena Regional Municipal Solid Waste Management Project areas; Elaboration of Environmental Impact Assessment studies for the waste management projects in Middle-Kurzeme, Zemgale, Middle-Daugava and Coastal Area; Finalisation of the construction of the landfills in the Middle-Kurzeme, Middle-Daugava, Zemgale and Coastal Area Regional Municipal Solid Waste Management Projects;

20593/01 ADD 3 CONF-LV 56/01 ADD 3 35 EN Strengthening and development of waste management organisations in the new regional municipal solid waste management projects (Middle-Kurzeme, Zemgale, Middle-Daugava and Coastal Area).

The long-term initiatives (2010-2012) are the following: Remediation/recultivation of the remaining dumps in all the regional municipal solid waste management regions.

5.3 Time table for full implementation (target date and milestones) The timetable for full implementation can be found in Annex II. It is expected to complete a first group of projects (North-Vidzeme, Liepaja, Riga, Ventspils) at the year 2004-2005. The next group of projects that are in the planning phase now (Maliena, South-Latgale, East-Latgale) is planned to complete at the end of year 2006. Implementation ofthe third and last group of projects is expected till the end of 2009.

The timetable shows also a time period needed for the transposition of the requirements of Directive 99/31/EC in legislation, preparation of the data collection system and preparation of the waste management plan (2001-2002). -

Closure and remediation are non-stop processes till the end of transitional period (2012) because of the large number of dumpsites and take place parallel to the construction of sanitary landfills.

5.4 Measures for supervising and monitoring implementation 5 A .1 Overall measures The Ministry of Economy monitors the implementation of the Public Investment Programme twice a year. Fulfilment ofthe Implementation and financing plan for implementation of the Landfill Directive will be monit()red by the Ministry of Environmental Protection and Regional Development (MEPRD) through the annual investment reports, where the results of ongoing projects will be reported. The annual investment reports will include financial, technical and administrative information as well as information concerning achieved results and reached -compliance status.

The MEPRD will update the Directive Specific Implementation and Financing Plans every year in relation to the preparation of the Public Investment Programme in order to select projects for further financing to ensure implementation of targets and time schedules set in these plans. Financing for the preparation of new projects will be allocated based on the current document

There are various institutions responsible for the investment project technical, financial and administrative management, supervision and monitoring. The main role players are the MEPRD, either as investment monitoring institution or as Employer, the Implementing Agency (for EU co­ financed projects- as part ofMEPRD), municipalities (as the Employer or Beneficiary), international financiers (EC, International Financing Institutions, Bilateral Donors), the Project Implementation Units and the Employers Representative or Engineer (responsible for the supervision of the works). All the parties are interrelated with each other and, depending on funding requirements, some tasks may interchange between the MEPRD, the municipality and the PIU. A strict division of responsibilities is set for EU funded projects on the case by case basis.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 36 EN Below the main responsibilities of the institutions involved in the implementation supervision and monitoring of the projects are described:

The Ministry's (apart form Employer's role) responsibilities: To secure the annual state budget funding for project implementation; To ensure that the funds are spent according to the programme submitted for the Public Investment Programme; To carry out Public Investment Programme monitoring and ensure submission of the monitoring forms to the Ministry of Economics twice a year; To participate in the Steering Group meetings and Monthly Co-ordination me&ings; To ensure the fmancial, technical and administrative management ofEU funded projects.

Employer's responsibilities: To undertake general project and contract management, administration, supervision and monitoring; To undertake financial administration of the Contracts; To ensure that the project implementation complies with the requirements of financiers; To secure local co-funding; To ensure sufficient cash flow for Contracts; To approve Consultants and Contractors invoices and payments; To set Employer's requirements for Tender Documents and Designs; To agree the technical solutions proposed within project; To assist Consultants and Contractors in obtaining various agreements with the local authorities approvals and building permits; To ensure proper engineering supervision of the works contracts.

In case, if the Ministry is the Employer, it may delegate responsibility of the technical and administrative management of the project to the Beneficiary and/or the Project Implementation Unit (apart from Contract financial administration).

Project Implementation Unit's responsibilities: To assist the Employer and Beneficiary in all the project implementation phases (tasks may vary depending on resources ofthe Employer and Beneficiary, most of them are set above); To liaison with the parties involved in the project implementation including, Contract parties, financiers, environmental authorities; To approve invoices (in case of multi-beneficiary Contracts); To prepare project implementation progress reports; After completion of the whole investment programme, the PIU submits the final report stating the overall achievements and evaluating the investment efficiency; The PIU is also involved during tender document preparation and procurement procedures.

The Financier's responsibilities: To approve any changes in the implementation plan; To participate in the project Steering Group and Monthly Co-ordination meetings and review the progress reports; To perform payments after the Engineer and the Employer have approved invoices.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 37 EN The responsibility of the Employers representative/Engineer works contracts in accordance with the FIDIC types of contracts: Engineer /Employer's Representative who is responsible towards adequate implementation of the works in accordance with the settled project aims and compliance with the FIDIC contract conditions and financiers requirements; During work contracts the Supervising Engineer calls for the monthly meetings to resolve all contractual issues and to monitor the progress as well as carries on the financial management of the project. There are also weekly meetings between the Site Supervisor and the Contractor to agree on-job issues.

Project Steering Group The Steering Group meetings are held about twice a year to report on project progress and agree any substantial changes in the project implementation plan (rearrangement of components, lack of funding, etc.). The Group is also informed and, if necessary, approves the procurement result and contract award.

5.4.2 EU Phare and ISPA related measures Implementation of the EU funded projects is carried out according to EU requirements and corresponding with Latvian regulations regarding preparation, approval, implementation and supervision ofEU funded projects set out in the Regulation of the Cabinet of Ministers of Latvia No 1 of January 2001, and No.135, of April 1999 as well as the Memorandum ofUnderstanding on the Establishment of the National Fund, the Memorandum of Understanding on the utilisation of the National Fund for ISPA, the corresponding Financing Memorandum, the ISP A Manual and the Practical Guide to ISP A, Phare and SAP ARD Contract Procedures.

According to the regulations mentioned above the responsibilities regarding EU funded project implementation are divided as follows: The overall responsibility for the supervision of administrative, technical and financial management ofEU funds in Latvia is the responsibility of the National Authorising Officer (NAO). He/she shall ensure that the EU procurement rules, regulations and procedures pertaining to procurement. reporting and financial management are respected, and that a proper reporting is carried out: The National Fund is an entity in the Central Treasury under the responsibility of National Authorising Officer (NAO) in the Ministry of Finance and acts as a paying agent for a projects; Implementation of the EU funded projects is carried out by the Implementing Agency. The Implementing Agency is responsible for the administrative, technical and financial management of the projects under the supervision ofthe Program Authorizing Officer (PAO) for Phare funded projects and Sectoral Authorizing Officer (SAO) for ISPA. The implementing agency in the Ministry of Environmental Protection and Regional Development was established in January 2000 in line with the regulation of the Cabinet of Ministers in Latvia No 135.

In order to meet the requirement of the Memorandum ofUnderstanding of December 1998 on establishment ofNational Fund and Memorandum ofUnderstanding of December 2000 on utilisation of National Fund for ISPA, the Agreements on the implementation ofEU funded projects by MEPRD and the Agreement on the implementation of ISP A funded projects by MEPRD were signed. Both agreements mentioned above clarify the roles and define specific tasks of the NAO, PAO and SAO respectively with regard to the implementation ofEU funded and ISPA funded projects.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 38 EN 5.4.3 Supervision and monitoring ofEU funded projects EUPhare The Joint Monitoring Committee (JMC) is the institution having overall responsibility for the supervision ofEU Phare funded programmes implementation. The rules for operations of JMC are defined by regulations approved by National Aid Co-ordinator. JMC consists of the National Aid Co-ordinator, the NAO, and the representatives of the European Commission. The JMC meets at least once a year and reviews implementation of all Phare funded programmes.

In addition there are EU Phare JMC Sub-Committees nominated by the JMC to monitor the programmes. JMC Sub-Committees consist of the National Aid Co-ordinator, the NAO, the Programme Authorising officer of each Implementing Agency and the representative of the European Commission. Sub-Committees review in detail the progress of each programme and its components and contracts in accordance with the EU requirements, looking i.e. at the relevance and design, efficiency, effectiveness and likely impact on the basis of reports produced for the P AO and the Commission and any other relevant evaluations. The Sub-Committees review i.e. the actual output as compared to the planned output, the rate of implementation and contracting, the financial flow and the management structures of the programmes. The Sub-Committees report to the JMC and prior to its annual meeting submits an overall detailed report on all programmes.

ISPA General monitoring and evaluation ofthe implementation ofiSPA funded projects in conformity with the Financing Memorandum is made by the ISPA Monitoring Committee (ISP A MC). However, regular control of project implementation, progress and use of finances are made by NAO andNIC.

The Rules of Procedure for the Monitoring Committee have been elaborated by the National ISPA Co-ordinator. These rules have been prepared on the basis of: Annex IV ofthe ISPA Regulation (Council Regulation No. 1267/1999); Section IX of Annex 111.1 to the Financing Memorandum; ISPA Manual (Section III.B); Working Paper detailing rules of procedure concerning the ISPA Monitoring Committees.

The Latvian ISPA Monitoring Committee has set up and will meet at least twice a year and provides the opportunity for a detailed and comprehensive discussion of the projects under implementation.

The ISPA Monitoring Committee is responsible for monitoring and supervising the progress of all projects located in the country funded under ISP A towards their objectives according to Financing Memoranda signed between the European Commission and the Government of the Republic of Latvia.

ISPA MC consists of a National ISPA Co-ordinator, NAO, SAO, applicants of the project, representatives of the EC and representatives of International Financing Institutions co-financing projects. If required the representatives of the institutions involved in the project implementation may be invited as well.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 39 EN Decisions of the Monitoring Committee are taken by consensus among all its members. In the absence of consensus within the Monitoring Committee, a formal proposal for adjustments must be made in writing by the beneficiary country to the Commission.

Based on the results of financial and physical monitoring, the Monitoring Committee may produce recommendations to the Commission. Any decision to adjust the amount of the ISPA grant, the conditions under which aid is granted or the financing plan of the project is taken by the Commission.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 40 EN 6 REFERENCES [Carl Bro, Apri11997] National Municipal Solid Waste Management Strategy for Latvia, Report on current MSW Management System, Carl Bro International, 14 April 1997

[Carl Bro, September 1997] Proposal for a National Municipal Solid Waste Management Strategy for Latvia, 1998-2010, Carl Bro International, 22 September 1997

[Carl Bro, September 1998] Feasibility study into the implementation of the national municipal solid waste management strategy in a pilot area in Latvia, Carl Bro International, September 1998

[CoM, 9 May 2001] For the economic development and fiscal political scenarios for the year 2002 (2205-k, in Latvian), Cabinet of Ministers (CoM), Riga 9 May 2001

[CSB, 2000] Population data, Central Statistical Bureau (CSB) Latvia

[Geo Consultants, April 1999] Feasibility study on sustainable waste management in Ventspils Region, Geo Constants, April 1999

[ISP A Liepaj a, March 2001] Liepaja Region Solid Waste Management Project, Application for Assistance under the ISP A Financial instrument, March 2001

[ISP A North-Vidzeme, May 200 I] North Vidzeme Region Solid Waste Management Project, Application for Assistance under the ISP A Financial instrument, 18 May 2001

[ISPA Ventspils, January 2001] Ventspils Region Solid Waste Management Project, Application for Assistance under the ISPA Financial instrument, January 2001

[LUDC, 1999] Latvian demographic development forecasts for the period 1998-2025, Latvian University Demographic Centre (LUDC), Riga 1999

[MEPRD, May 1998] State of Art of the Solid Household Waste Management in Latvia (Review), Investment Department, Ministry of Environmental Protection and Regional Development (MEPRD), May 1998

[MEPRD, 1998] Strategy for the Management ofMunicipal Waste, 1998-2010, Investment Department, Ministry of Environmental Protection and Regional Development (MEPRD), 1998

[MEPRD, 1999] Report on Environmental Investments 1992-1998 (in Latvian), Ministry of Environmental Protection and Regional Development (MEPRD), 1999

20593/01 ADD 3 CONF-LV 56/01 ADD 3 41 EN [MEPRD, 2000] Report on Environmental Investments 1999, Ministry of Environmental Protection and Regional Development (MEPRD), 2000

[MEPRD, 2001] Report on Environmental Investments 2000, Ministry of Environmental Protection and Regional Development (MEPRD), 2001 (to be published)

[MEPRD, July 2001] Directive Specific Implementation and Financing Plan for the EC-Directive 91/271/EEC and 98/83/EC, prepared by the Ministry of Environmental Protection and Regional Development (MEPRD), July 2001

[MoE, December 2000] Economic development of Latvia, Ministry ofEconomy (MoE), December 2000

[Soil and Water, October 1999] LAT-108, Soil and Water, October 1999

[SWECO, December 1999] Feasibility study, Preliminary design and Environmental Assessment of sustainable Solid Waste Management for Liepaja City and Liepaja Region, SWECO International in association with Geo Consultants, December 1999

20593/01 ADD 3 CONF-LV 56/01 ADD 3 42 EN ANNEX I TERMS OF REFERENCE "MULTI-YEAR WASTE MANAGEMENT PLAN FOR LATVIA"

1. Background 1.1 General The approximation of laws is one of the obligations for membership to the European Union, meaning that countries aspiring to join the EU must align their national laws, rules and procedures to the entire body ofEC laws or acquis communautaire. During the pre-accession ph~se, accession countries should not only endeavor to achieve merely a correct transposition of EC environmental legislation ("formal compliance"), but should also concentrate on the practical implementation of this legislation. This implies establishing the essential administrative structures, and ensuring that sufficient financial and human resources are put in place to operate them, so that the objectives of the Directives are met and the obligations provided are fulfilled. For this reason it is essential to prepare managerial plans, and to check or update existing plans for compliance with EU directives.

1.2 Status of Latvian waste management legislation Latvian legislation in the area of waste management is already in good compliance with EU requirements.

Laws On Hazardous Waste and On Municipal Waste as well as Regulations subordinated to them provide partial transposition ofEU directives 75/442/EEC on waste; 911689/EEC on hazardous waste, directive 1999/31/EC on the landfill ofwaste as well as European Commission's decisions on waste classification.

Latvia has adopted the new framework Law On Waste Management in 2000 and in the period up to 1 January 2003 fully harmonise its legislation with EU requirements in the waste management area. Based on the new law several Cabinet ofMinisters Regulations will be adopted by the end of2002, including Regulations on hazardous waste incineration (or general regulations on waste incineration, if the new EU directive will be adopted), on the disposal of waste oils (according to the directive 75/439/EEC), on th.e disposal of polychlorinated biphenyls and polychlorinated terphenyls (according to the directive 96/59/EEC), on batteries and accumulators, as well as on the asbestos waste.

Latvia has ratified the Basel Convention on the control oftransboundary movements of hazardous waste and its disposal. Latvia will be prepared to ensure the implementation of Regulations 259/93 on the control of shipments of waste upon accession.

In order to implement the directive 94/62/EC on packaging and packaging waste, evaluation on the implementation of the directive's requirements in Latvia was carried out in 1999. Based on the results of the evaluation, the draft Law on Packaging has been prepared and will be adopted in 2001. Latvian legislation will be fully in compliance with the packaging directive's requirements by June 2002. Article 6 of the directive 94/62/EC on packaging and packaging waste requires that at least 50% of packaging waste should be recovered; at least 25% of the total packaging quantity and at least 15% from every type of packaging should be recycled. It is assessed that approximately 18% from all packaging waste are recovered in Latvia now. Recovery indicators for different packaging types vary from 2% (plastic) till 0.4% for metal.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 43 EN Latvia will harmonise its legislation with EU directive 2000/53/EC on end-of life vehicles by the end of2002.

1.3 Status of Latvian administrative structure in waste management Latvia already has established an institutional system to implement the EU requirements in the area of waste management. The Ministry of Environmental Protection and Regional Development is responsible for the state policy in the waste management sector, for preparation of waste management plans at the state level and for organisation of investment projects in the hazardous waste management sector and co-ordination of these in the municipal waste management sector. The state is responsible for hazardous waste management, but the municipalities - for municipal waste management. Regional Environmental Boards and municipalities as well (according to the new draft law- only Regional Environmental Boards, informing involved municipalities) issue permits for operations concerning waste. Regional Environmental Boards and the State Environment Inspectorate are responsible for control measures. The Latvian Environment Agency is responsible for monitoring, data collection and processing.

The State Owned Company "Vides Projekti" (Environmental Projects) Hazardous Waste Management Project Implementation Unit is responsible for strategic and investment plans for hazardous waste management.

For the implementation of the National municipal waste management strategy in Latvia (elaborated in 1997 and adopted by the Cabinet of Ministers in 1998) a special program called "500-" -the National Strategy for Management of Municipal Solid Waste in Latvia is started. A special implementation unit is formed for the implementation of this program at the State Enterprise project agency "Vides Projekti". This unit is dealing with co-ordination and supervision of regional municipal solid waste management in several regional projects. At project level, in each of the regions a special local PIU is established for co-ordination of projects regarding municipal waste management.

All responsible people involved in the municipal waste management project have to follow training on a regular basis.

The waste statistics should be improved. The data collection system has already been established to control the use of packaging in the country, which enables to prepare reports corresponding to the requirements ofthe directive 94/62/EC. The registration of the recycled packaging materials has been started as well.

1.4 EU and other technical assistance Latvian - Danish Twinning project "Institutional strengthening ofLatvian environmental administration for implementation and enforcement ofEU environmental legislation Component 3 Assistance for the development ofsystems for dealing with hazardous waste".

Results of the project are as follows: Hazardous Waste Infrastructure Analysis; Hazardous Waste Management Plan; Revised Transposition Plan; Assistance in drafting of the Latvian Legislation; Revised Institutional Plan;

20593/01 ADD 3 CONF-L V 56/01 ADD 3 44 EN Revised Sectoral Implementation Programme; Training programmes for Latvian institutions.

A national strategy for Municipal Solid waste management was adopted in 1998 and identifies the following main tasks: To close the existing dumpsites that do not comply with environmental requirements and reduce adverse environmental impacts of waste; To construct 12-15 municipal solid waste landfills, that meet up-to-date sanitary requirements; To improve solid waste management systems so that all inhabitants and waste producers of the region are provided with waste management services and in such a way eliminate illegal dumping of waste into environment.

Investments required for implementation of the programme are assessed to be 190 million L VL.

A hazardous waste management plan has been prepared. Investments required for the implementation of this strategy are assessed to be 19 million L VL.

In order to implement the requirements of the directive 75/442/EEC on waste and those of the directive 1999/31/EC on landfills of waste, Latvia has elaborated and launched a specific investment programme. This National Programme "500-" Implementation ofthe Solid Waste Management System in Latvia includes building of 12 to 15 new waste landfills in Latvia and closing of the existing dump sites. Directive 1999/31/EC requires to reduce the quantity of organic waste disposed in the landfills (in order to prevent the release of methane) - in 2007 till 3 5% of the organic waste quantity stored in 1995. In order to achieve these goals, it is important to implement the investment programme "500-" to its full extent, thus ensuring the implementation of directive requirements by the end of2015.

Another investment programme - Implementation of hazardous waste management system is presently also being carried out in Latvia. This programme includes purchase and installation of equipment for the incineration of hazardous waste, construction of a hazardous waste landfill as well as establishment of hazardous waste management system by the end of2004, to ensure full implementation of the EU directive 91/689/EEC on hazardous waste as well as the EU directives on waste oils, PCB/PCT, asbestos, batteries and accumulators). Although there is no titanium dioxide waste in Latvia, transposition of the relevant EU directives will be ensured by the end of 2002.

2. Objectives The new law On Waste Management" and relevant EU directives require adoption of waste management plans. Short-term objective of this project is to prepare a waste management plan for Latvia for the years 2003-2015. Long term objective is to ensure compliance with all EU requirements in the waste management sector.

2.1 Target groups and beneficiaries The target groups for this assignment are the institutions responsible for waste management. These include the Latvian Ministry of Environmental Protection and Regional Development and local authorities and other institutions involved in waste management in Latvia.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 45 EN 2.2 Expected results A Waste Management Plan is to be developed that include existing strategies for management of municipal and hazardous waste and a development strategy and plan for management of: PCB/PCT waste; Batteries and accumulators containing certain hazardous substances; Packaging and packaging waste.

Expected result is a waste management plan with chapters on municipal wastes, hazardous waste and other types of waste mentioned above. The Waste management plan shall contain the following information: Existing situation on waste management, amount of produced waste collected (sorted and unsorted) waste, types, amounts, and source of recovered and disposed waste; Priorities in management of waste, indicating priority order and amounts and types of waste managed in certain way; Planned activities (construction of landfills, improvement of waste collecting, etc); Infrastructure objects (existing, new, reconstructed) for implementation of planned activities; Responsible institutions for implementation of planned activities; Calculated costs and sources of finance for planned activities; Possibilities for improvements in waste management.

3. Planned activities ofthe project 3.1 Description of tasks The project will consist of 3 tasks. The first task covers a review of the existing situation in Waste management in Latvia. In Task 2 waste management strategies for PCB/PCT waste, batteries and accumulators containing certain hazardous substances and packaging waste will be prepared. For these wastes the strategy will be based on the EU directives. In Task 3 a Waste Management plan for the period 2003 - 2015 will be prepared.

The consultant will undertake missions to Latvia to assess the existing system and practices and future plans in waste management. The information will be provided by the Latvian Ministry of Environmental Protection and Regional Development. This Ministry will arrange meetings and discussions with regulatory, permitting, monitoring, municipal, and private bodies active in the field of waste management. The Ministry ofEnvironmental protection and Regional Development will provide all available data necessary for preparation of the Waste Management plan.

TASKl ANALYSIS OF EXISTING LATVIAN STRATEGIES AND PROGRAMS IN THE WASTE MANAGEMENT SECTOR This task will also include analysis and review of political, legal, social and economic context in which the waste management authorities and institutions operate.

The review also needs to determine whether the relevant authorities and institutions have adequate resources: financial resources, facilities and equipment's, personnel with the skills and expertise for enforcement duties.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 46 EN TASK2 NEW STRATEGIES In this task a strategy will be prepared for elements which have not yet been covered. These are related to: Waste framework directive; Management of waste batteries and accumulators, containing certain dangerous substances; Management of waste containing PCB/PCT; Management of packaging and packaging waste.

The consultant will analyse relevant EU Directives and the related Latvian legal system. In close co-operation with the Ministry of Environmental protection and Regional Development the consultant will prepare a proposal for a Strategy to implement these directives in Latvia.

TASK3 PREPARATION OF THE WASTE MANAGEMENT PLAN In this task the consultant will prepare a new waste management plan for Latvia for the years 2003- 2015. The plan should be in line with EU directives. This task will be prepared in close co­ operation with the Latvian Ministry of Environmental protection and Regional development. A list of other institutions which should participate on the preparation of the new waste management plan including a detailed working plan for their activities based on their competencies will be prepared. The Ministry of Environmental Protection and Regional Development will secure their active participation in the preparation of the new waste management plan.

The Waste Management plan will provide: A description of the actual situation in waste management, amount of produced and collected (sorted and unsorted) waste, types, amounts, and sources of recovered and disposed waste; Assessment of actual legislation and institutional structure; Assessment of existing infrastructure and facilities; Assessment of actual costs and capability of sectors to finance waste management costs; Proposals and plans for changes in legislation and infrastructure; Set up of priorities in waste management; Forecast amounts of waste according to their type, proposals for methods of disposal different types of waste; Demand for infrastructure and facilities (existing, new, reconstructed) for management of Calculated investment's costs and methods for financing; Institutions responsible for implementation of planned activities.

4. Output The following concrete outputs are expected from the project:

1 Analysis of existing waste management strategy 2 Latvian waste management strategy in English and Latvian for : waste batteries and accumulators, containing certain dangerous substances; management of waste containing PCB/PCT; management ofl'_ackaging and packaging waste.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 47 EN 3 Draft Waste Management Plan for Latvia for the period 2003-2015 4. A seminar for MEPRD, other institutions involved and NGOs on waste management plan. 7

5. Submission of reports All reports shall be as concise as possible and will be written in the English language. The final report should also be translated into Latvian. All reports will be submitted to the PCMT in Bratislava as a computer file for quality assurance and in 15 copies in REAP format. The information should be provided in clear graphs and tables wherever possible. The essential information goes in the main text while background information is annexed. The consultant should submit an inception report three weeks after the start of the project describing the program and the identified contacts and experts to be involved. Consultant will prepare very concise monthly progress reports. The consultant will prepare a draft report and a final report and will submit a copy of the presentation held at the meetings.

6. Inputs In the project the following experts are required: Lawyer - expert on legal analysis; Technical engineer - expert on waste management; Economist - expert on economical aspects of waste management. c ons1"d enng. the expenence o f e~e rts the fjo 11 owmg cat egones app y: Category of experts Minimal period of working ex_perience in relevant field A (waste management) 15 years B (waste legislation) 10 years C (economist) 5 years Local experts 5 years

The envisaged input of experts per task (in man-days) is as follows: Tasks Catego_!Y A B c Local Inception 3 5 5 Task 1 4 5 7 15 Task2 4 5 7 15 Task3 12 20 15 15

6.1 Profile of the project manager For the assignment an experienced project manager is required for the duration of the project. The envisaged Project Manager needs the following skills: Minimally 15 years of experience in environmental management. Particular in EU environmental legislation and accession process and preparation of waste management policy and plans. Experience in this field in Central and Eastern European countries; Experienced in communication and assistance with governmental bodies, local authorities and also private companies.

7 MEPRD will provide office space. Project costs will include participation of foreign experts, translation and consumption's. 20593/01 ADD 3 CONF-LV 56/01 ADD 3 48 EN 6.2 Other financial preconditions Direct costs are limited at a maximum of 10,000 EUR. The total maximum budget available for this contract amounts to 125,601 EUR.

6.3 Overall Timing The project is expected to start in February 2001 and will have a duration of 6 months.

7. Quality Control All reports will be submitted for QA to the REAP Project Co-ordination team in Bratislava before submission for final approval by the EU.

8. Contact details The Contacts for-the Commission are:

Anna Bramwell Directorate - General Environment, Nuclear Safety and Civil Protection 200 Rue de la Loi (TRMF 05/54) 1049 Brussels Belgium Tel.:+ 32 2 296 9517 Fax:+ 32 2 299 4123 E-mail: [email protected]

Hendrik Van Maele Task Manager DG Enlargement Unit: Implementation and Contracts Tel.:+ 32 2 29.99.071 Fax:+ 32 2 29.68.040 E-mail [email protected]

The contact at PMCT REAP project: Iksan van der Putte Project Manager Regus Centre Namestie 1. Maja 11 811 06 Bratislava Slovak Republic Tel.:+ 421 7 59 39 61 41 Fax:+ 421 7 59 39 63 16 E-mail: reap~regus.sk

20593/01 ADD 3 CONF-LV 56/01 ADD 3 49 EN The contacts for Latvia: IlzeDo~a Senior Official The Ministry of Environmental Protection and Regional Development Environmental Protection Department Tel.: +371 7026515 Fax:+3717820442

Signe Zakka, Ilgonis Strauss Senior Officials The Ministry of Environmental Protection and Regional Development Investment Department Tel.:+ 371 7026407, +371 7026405 Fax:+ 3717820442

Anita Drondina Senior Official The Ministry of Environmental Protection and Regional Development European Integration Unit 25, Peldu str. 1494 RIGA Latvia

20593/01 ADD 3 CONF-LV 56/01 ADD 3 50 EN ANNEX II SCHEME OF PROJECT DEVELOPMENT

[No 1 provided by Latvia}

20593/01 ADD 3 CONF-LV 56/01 ADD 3 51 EN ANNEX III UPDATED MSW-SCENARIO 1996-2012 The updated scenario for Municipal Solid Waste (MSW) arising in Latvia has been constructed in the following way:

Distinction between domestic (household) and non-domestic (shops, schools, government offices, hospitals and green) waste. Industrial, agricultural and demolition waste has been excluded (does not belong to MSW although in most of the times it ends up in the landfill);

Distinction between different residential sizes. Between brackets, the annual amount (kg) of waste per capita is given [MEPRD, May 1998]: • Riga (240); • Cities, > 10,000 inhabitants (216); • Towns, 5,000 - 10,000 inhabitants (200); • Small towns, 2,000- 5,000 inhabitants (180); • Large settlements, 1,000- 2,000 inhabitants (160); • Mediwn settlements, 100- 1,000 inhabitants (120); • Small settlements, <1 00 inhabitants (40).

The amount of produced domestic waste in 1996 is 464 kt [MEPRD, May 1998];

The amount of non-domestic waste in 1996 is 35% of the amount of domestic waste (163 kt) according to [Carl Bro, September 1997];

Composition data (for domestic waste) are available for Riga, Liepaja, Valmiera, Pavilosta, Aizpute and Durbe [Carl Bro, April1997]. It has been assumed that cities, towns have the same composition of domestic waste as the average ofValmiera and Liepaja while the rest has the same composition data as the average of Pavilosta, Aizpute and Durbe;

The distribution of non-domestic waste over the sources shops, schools, government offices, hospitals and green waste according to waste situation in Jelgava, Bauska and Dobele [Carl Bro, April1997];

Composition of waste from shops: more packaging material, more paper and cardboard [Carl Bro, April1997]. It is assumed that only 10% organic waste compared to the average national situation, 75% of "organic waste" will be Paper and cardboard, the other 25% will be Plastic;

Composition ofwaste from schools, government offices: larger amount of paper [Carl Bro, April1997]. It is assumed that only 25% organic waste compared to the average national situation, 100% of the "organic waste" will be Paper and cardboard;

Composition of hospital waste: 15% is infectious [Carl Bro, Aprill997]. It is assumed that infectious waste is hazardous waste, the rest of the hospital waste has the same composition as the average national composition;

20593/01 ADD 3 CONF-LV 56/01 ADD 3 52 EN Population data. In [LUDC, 1999] a population forecast is presented for the period 1998- 2025;

Economic growth. In [Carl Bro, September 1997] a forecast for economic growth is presented for the period 1993-2015. This complete forecast has been replaced by the most recent one, presented in [CoM, 9 May 2001];

Growth ofMSW per capita (domestic and non-domestic!). In [Carl Bro, September 1997] a logarithmical relation between waste arising per capita and economic growth has been proposed. This means that if the economic growth is for example 5%, the amount of waste per capita will grow with 2.1 %. This growth path has been maintained.

Description of the results of this MSW-scenario: • In 1996 the amount of domestic waste is 464 kt and the amount of non-domestic waste is 162 kt. The total amount ofMSW is 627 kt of which 35% is Organic and 23% is Paper and cardboard;

• The total amount ofbiodegradable waste, both Organic and Paper and cardboard, in 1996 is 364 kt. It is this amount that should be referred to concerning article 5, paragraph 2 of Directive 99/31/EC;

• In the year 2006, a total amount of 432 kt biodegradable waste will be produced (according to this updated scenario) while an amount of 273 kt is permitted to be landfilled according to article 5, paragraph 2 (a). Therefore a reduction of37% should take place in Latvia (by means of composting of the organic fraction, recycling of the paper fraction and/or biogas production like is the case in both the Riga and Liepaja project!);

• In the year 2009, the production will be 458 kt while only 182 kt is permitted (article 5, paragraph 2 (b)), resulting in a required reduction of biodegradable waste to landfills of 60%.

This resulted in adapted MSW-scenarios presented in table 4.1 ofthe main text.

20593/01 ADD 3 CONF-LV 56/01 ADD 3 53 EN ANNEX IV TOTAL INVESTMENTS BY SOURCES 1995-2012

20593/01 ADD 3 CONF-LV 56/01 ADD 3 54 EN Table IV.l I t (prices 2000, million EUR) in the solid b.. --- ~ ffi--· ----· -- forth . d 1995-2012 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TOTAL State budget 0,0 0,3 0,0 1,4 1,2 2,0 0,0 2,0 2,4 1,9 0,8 4,4 . 4,4 4,4 4,4 1,2 1,2 1,2 33 Own resources 0,0 0,0 0,0 0,7 0,4 0,3 6,7 2,6 2,0 3,0 0,0 2,2 2,2 2,2 2,2 1,0 1,0 1,0 28 Grants 0,0 0,0 0,0 0,5 0,7 0,8 6,0 8,4 6,1 6,3 7,8 30,8 30,8 30,8 30,8 6,3 6,3 6,3 179 Loans 0,0 0,0 0,0 0,0 0,0 0,1 4,7 8,1 4,8 3,6 7,1 0,9 0,9 0,9 0,9 1,3 1,3 1,3 36 . Total public 0,0 0,3 0,0 2,6 2,2 3,3 17,3 21,1 15,3 14,7 15,6 38,4 38,4 38,4 38,4 9,7 9,7 9,7 275 Private costs 0,0 0,1 0,0. 0,6 0,5 0,8 4,1 5,0 3,6 3,5 3,7 9,1 9,1 9,1 9,1 2,3 2,3 2,3 65 I

TOTAL 0,0 0,6 0,0 5,8 4,9 7,3 38,8 47,2 34,2 32,9 35,0 85,8 85,8 85,8 85,8 21,7 21,7 _21,7_ L_ _14f!_____j Sources: 1995-1998: Report on environmental investments [MEPRD, 1999} 1999: Report on environmental investments [MEPRD, 2000] 2000: Report on environmental investments [MEPRD, 2001] 2001-2004: Planned Public Investment Program [MEPRD, 200?] 2005-2012: LAT-108 [Soil and Water, October 1999]

It has been assumed that the private costs show the same investment tendency as the total public investments.

Landfill Directive Strategy (16-7-2001)

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