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How Croatia Became the Most Water-Projects-Intensive Country in EU

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How Croatia Became the Most Water-Projects-Intensive Country in EU How Croatia became the most water-projects-intensive country in EU Executive overview of EU funded projects AUSTRIAN WEBINAR 14.12.2020 1 EU PROGRAM PERIOD 2014.-2020. STRUCTURAL INSTRUMENTS IN THE PROGRAM PERIOD 2014-2020 In the 2014-2014 programming period, the total financial envelope for the Republic of Croatia from the Structural Instruments is 10.676 billion euros. Of this, EUR 6.881 billion for investment in growth and development is available through OP Competitiveness and Cohesion and EUR 4.321 billion from the European Regional Development Fund and EUR 2.599 billion from the Cohesion Fund: 2014.-2020. Cohesion Fund 1.049.340.216 € Water Comunal reform European Regional Development Fund 215.000.000 € Flood protection 150.000.000 € 2 A) WATER SUPPLY AND WASTE WATER PROJECTS 3 OBLIGATIONS OF REPUBLIC OF CROATIA • Water Framework Directive 2000/60/EC • Directive 98/83/EC on the quality of water intended for human consumption achieving the prescribed water quality in terms of microbiological indicators on public water supply systems in 70 identified water supply zones by the end of 2018 • Directive 91/271/EEC concerning urban waste water treatment construction of drainage and wastewater treatment systems in 281 agglomerations with a load of more than 2,000 ES with completion of all works by the end of 2023 with transition deadlines by 2018 and 2020 depending on the size of the agglomeration and receiver sensitivity • Revised implementation plan for water utilitiy directives an integral part of the documentation of the EU accession negotiations in Chapter 27. Environment. Transitional periods have also entered into the Treaty of Accession of the Republic of Croatia to the European Union • Multi annual program of construction of municipal water facilities 4 CURRENT STATUS OF APPROVAL – OPCC 14 -20 (1) Total eligible expenditure EU GRANT Number of projects (BN HRK) (BN HRK) APPROVED PROJECTS 20,09 14,07 60 IN PRE-APPROVAL PROCEDURE 1,69 1,17 5 TOTAL 21,78 15,24 65 5 CURRENT STATUS OF APPROVAL – OPCC 14-20 (2) County Projects in implementation Projects in approval Total planned value of investment (BN HRK) (7) - Osijek, RVS Osijek, Valpovo-Belišće, Đakovo, Našice, Beli Osijek - Baranja - 1,58 Manastir, Semeljci (7) - Vrbovec, Jastrebarsko, Rugvica-Dugo Selo, Velika Gorica, Zagreb - 2,4 RVS Zagreb Istok, Zaprešić, Ivanić Grad (6) - Split-Solin, Kaštela-Trogir, Imotski, Otok-Trilj, Jelsa- Split – Dalmatia - 3,68 Vrboska, Sinj Primorje – Gorski (4) - Krk, Novi Vinodolski, Rijeka, Cres-Lošinj - 3,03 Kotar Sisak - Moslavina (3) - Petrinja, Novska, Kutina - 0,83 Varaždin (3) - Varaždin, Varaždinske Toplice, Ivanec - 0,91 Koprivnica – Križevci (3) - Koprivnica, Križevci, Đurđevac - 0,95 Virovitica – Podravina (3) - Virovitica, Pitomača, Slatina - 0,55 (3) - Pleternica, Požega, Lipik-Pakrac Požega - Slavonia - 0,46 Šibenik – Knin (3) - Vodice-Tribunj-Srima, Šibenik, Betina-Murter - 0,6 6 CURRENT STATUS OF APPROVAL – OPCC 14-20 (3) County( Projects in implementation Projects in approval Total planned value of investment (BN HRK) Vukovar – Syrmia (3) - Vukovar, Vinkovci, Županja 0,82 Istria (3) - Rovinj, Poreč, Umag (1) – Pula Sjever 1,3 Dubrovnik – Neretva (3) - Dubrovnik, Ploče, Metković 1,2 Zadar (2) – Nin-Privlaka-Vrsi, Zadar (1) – Biograd na Moru 1,32 Međimurje (2) - Donja Dubrava, Mursko Središće 0,37 Krapina - Zagorje (1) - Zabok – Zlatar 0,48 Karlovac (1) - Karlovac – Duga Resa 0,33 Bjelovar – Bilogora (1) - Bjelovar 0,2 Lika – Senj (1) - Novalja (1) - Plitvička Jezera 0,56 Brod – Posavina (1) – Nova Gradiška (1) – Slavonski Brod 0,61 TOTAL 60 PROJECTS IN IMPLEMENTATION 4 PROJECTS IN APPROVAL 21,7 7 PUBLIC PROCUREMENT PROGRESS – OPCC 14 – 20 SECONDARY CONTRACTING OPCC 2014 - 2020 22 000 000 000 200,00% 183,79% 179,52% 20 000 000 000 180,00% 18 000 000 000 160,00% 140,95% 16 000 000 000 140,00% 14 000 000 000 120,00% 12 000 000 000 93,06% 100,00% HRK 10 000 000 000 80,00% 8 000 000 000 49,82% 60,00% 6 000 000 000 40,00% 4 000 000 000 25,34% 16,16% 2 000 000 000 8,22% 20,00% 0 0 0 0,00% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Ukupni prihvatljivi trošak (HRK) Kumulativno Ugovorenost % 8 PUBLIC PROCUREMENT PROBLEMS (1) The biggest problem in the realization of EU projects is the procurement procedures. The new Law on Public Procurement tried to meet the Employers and shorten the procedure itself, but it should be noted that the implementation identified a number of problems that slow down this procedure: the preliminary consultation procedure did not produce the desired result: instead of tenderers seeking clarification of tender conditions or technical specifications for the purpose of market research and simpler implementation of the procurement procedure and obtaining better offers, professional complainants on behalf of potential tenderers seek only certain parts of the documentation to which they will file appeals; Frequent filing of appeals about documentation (outside the deadline for appeals) of the procurement, which prolongs the bidding time. In some procurement procedures, new appeals to the tender dossier (TD) occur even after the State Commision (SC) Decision has been adopted and the amendments to the TD have been partially amended and the new deadline for submission of the bid has been determined, which further extends the bidding time. the TD appeal fee is 700 EUR regardless of the value of the procurement Frequent extension of the deadline for submission of the offer by the Employer - NEW TREND frequent filing of appeals against the award decision which prolongs the duration of the procurement process; An appeal can be made by an economic entity, regardless of whether it has a legal interest (eg TD complaint - Appellant is a company registered for: preparing meals, drinks and beverages for consumption elsewhere with or without service production of perfumes and toiletries etc.) Public Procurement duration (from publication to execution of the award Decision): The average duration of the public procurement procedure for works is 9-10 months The average duration of the procurement process for services is 6-7 months 9 PUBLIC PROCUREMENT PROBLEMS (2) LAW PROVIDED PERIOD FROM PUBLICATION TO OPENING OF BID IS 35 DAYS (MINIMUM) FOR OPEN PROCEDURE WITH LARGE VALUE Project Donja Dubrava – TD appeal (sewage) • Estimated tender value: 15.923.815,79 EUR • 8.6.2018. – Initial tender notice released • 10 TD APPEALS– 9 dismissed as unfounded / untimely • 16.4.2019. – Tender opening • Conclusion: From Tender Notice till Tender opening 10,5 months passed Project Mursko Središće – TD appeal (sewage) • Estimated tender value: 15.001.434,21 EUR • 12.11.2018. - Initial tender notice released • 6 TD APPEALS – ALL dismissed as unfounded / untimely • 16.4.2019. - Tender opening • Conclusion: From Tender Notice till Tender opening 5 months passed Project Rijeka – TD appeal (sewage) • Estimated tender value : 106.952.368,42 HRK • 3.12.2018. - Initial tender notice released • 3 TD APPEALS – ALL dismissed as unfounded / untimely • Predicted date of tender opening - unknown • Conclusion: From Tender Notice till (potential) Tender opening 9 months passed 9 mjeseci (and still counting) 10 PUBLIC PROCUREMENT PROBLEMS (3) LAW PROVIDED PERIOD OF IMPLEMENTATION FROM PUBLICATION TO EXECUTION OF AWARD DECISION IS 80 DAYS (MINIMUM) FOR OPEN PROCEDURE WITH LARGE VALUE Project Jastrebarsko – duration of procurement (WWTP) • Estimated tender value : 4.124.373,03 EUR • 20.4.2018 - Initial tender notice released • TD APPEAL – Adopted (33 days for SC Decision) • 9.8.2018. – Tender opening • 30.10.2018. – 1st Award decision • APPEAL ON 1st AWARD DECISION – Adopted (73 days for SC Decision) • 12.4.2019. – 2nd Award decision • APPEAL ON 2nd AWARD DECISION– dismissed on 18.6.2019. (67 days for SC Decision) • Conclusion : 14 months duration of procurement Projekct Varaždin – duration of procurement (WWTP) • Estimated tender value : 162.448.000 HRK • 28.5.2018 - Initial tender notice released • 24.8.2018. – Tender opening • 21.12.2018. – 1st Award decision • APPEAL ON 1st AWARD DECISION – Adopted (56 days for SC Decision) • 10.4.2019. – 2nd Award decision • APPEAL ON 2nd AWARD DECISION– Adopted (65 days for SC Decision) • 16.7.2019. – 3rd Award decision • Conclusion : 14 months duration of procurement 11 INCREASING OF PROJECT COSTS MOST RECENT PROBLEM: SIGNIFICANT INCREASE OF PROJECTS COSTS (application costs ≠ tender costs) Current statistics: 1. Sewage system – 28,5% above the estimated tender budget 2. Sewage system Dunav River Basin – 21% above the estimated tender budget 3. Sewage system Adriatic River Basin – 46% above the estimated tender budget 4. WWTP – within the estimated tender budget 12 PROBLEMS IN CONTRACTING AND IMPLEMENTATION Problems: Delayed award decision making due to increased bids Delaying award decision making because of fear of financial corrections Slow dynamics of work execution than planned (all projects) Bankruptcy of contractors (Vukovar and Osijek projects), Financial corrections as a result of ex-post control of the procurement process. Measures: HV and MZOE employers in the beneficiaries evaluation commitee Ammendment of Grant Contracts, in justified cases Transfer of knowledge in order to avoid possible financial corrections Daily meetings 13 PLANNED CONTRACTING IN FOLLOWING PERIOD SECONDARY CONTRACTING – TOTAL ELIGIBLE COST PERIOD: 2021 - 2023 25 000 000 000 120,00% 20 454 742 863 20 944 850 524 100,00% 20 000 000 000 16 037 150 587 80,00% 15 000 000 000 60,00% HRK 10 557 663 302 10 000 000 000
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