ISPA INFORMATION SHEET Measure No 2000 RO 16 P PE 004

Measure title Rehabilitation of Wastewater Treatment Technology and Sewerage Improvements for the Population of Timişoara City

Authority responsible for implementation

Name: Central Finance and Contract Unit, Ministry of Finance

Address: 35-38 Mendeleev Street, 4th Floor, Sector 1, Bucharest,

E-mail: [email protected]

Description

The measure consists in a number of investments concerning wastewater collection and treatment for the city of Timişoara, which is located in the western part of Romania, near the border with . With around 325,000 inhabitants, Timişoara is the 5th biggest city in Romania. The City is located on the Bega , which is an attributary of the River. The Tisza drains to the River and finally to the . Within the scope of the ISPA Measure, the following components are included:

A. Rehabilitation of the wastewater treatment plant:

The rehabilitation of the wastewater treatment plant will provide treatment to Community standards (tertiary treatment) for average wastewater flows up to 2,400 l/s and 440,000 population equivalent (325,000 domestic/resident population + student population + 60,000 non- domestic). This takes into account reduction in water consumption and is sufficient to meet the predicted flows and loads up to the year 2020. It will allow extensions of the existing sewerage system within Timişoara in order to cover the entire city. The rehabilitation will also include improvements to the sludge treatment and handling systems. A new laboratory will also be set in place to improve quality of water and wastewater analysis.

B. Extension and rehabilitation of the sewerage network: the existing sewerage system serves approximately 70% of the population. The measure will extend coverage to 74%. It will also rehabilitate around 2.4 km of the existing network.

C. Technical assistance and supervision during implementation: technical assistance will be required: 1) in order to assist the Project Implementation Unit within the water company in performing its tasks; 2) there is an interest of the local municipality to involve the private sector in the management of its water and wastewater services. Technical assistance is required to assist the municipality (legal, financial, technical expertise) to start and conclude the process of private sector participation in a successful way in compliance with EC and Romanian legislation in this area. International "FIDIC" supervising engineers will be in place to supervise implementation of works.

Estimated completion date of the measure: 31 December 2007

1 Objectives

The main objectives are the following:

– Provision of wastewater treatment facilities in accordance with Urban Wastewater Directive 91/271/EEC, which will reduce the pollution loads in the Bega River, and hence the Tisza and Danube and the Black Sea;

– Provision of suitable facilities for the treatment of arising sludge such that it may be disposed in accordance with EC Directives;

– Improved collection of wastewater with reduction of infiltration to and exfiltration from sewerage networks with benefits to treatment plant and groundwater.

The measure will have an important transborder impact, as the city is located close to the border with Serbia. Resolution of the city current collection and treatment problem will significantly reduce the downstream pollutant load.

Economic and social cost-benefit analysis

Besides environmental benefits such as improvement of drinking water quality and reduction of pollution of aquatic environment of the Mures River, it is difficult to quantify fully the indirect economic benefits of the project. The main benefits are the following:

– Wastewater collection: marginal revenues derived through wastewater tariff collection from additional population served;

– Energy savings: value of energy saved due to improved plant and system efficiency;

– Production costs: value of savings in consumables and staff resources.

The financial sustainability of the project will be guaranteed by tariffs, which increase above inflation to allow for cost recovery as regards operation, maintenance and a contribution to the capital cost of the measure.

Environmental Impact Analysis

The rehabilitation of the wastewater treatment plant falls under Annex II of the Environmental Impact Assessment Directive 85/337/EEC (as amended by 97/11/EC). The EIA was undertaken in May 2000 as decisions and outline design for the scheme became available. Public consultation has been undertaken in July 2001. Effluent from the Timişoara treatment plant discharges into the River Bega, which has been classified as sensitive receiving water from the competent environmental authority.

Cost and assistance (in €)

Total cost Private Non eligible Total ISPA grant Grant Rate sector expenditure eligible cost % contribution

49 580 000 0 1 500 000 48 080 000 34 136 800 71

The measure will be co-financed by the Municipality of Timişoara.

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