Modernization of local public services in the Republic of Moldova - Intervention area 2: Regional planning and programming - Regional Sector Programme on Water Supply and Sanitation: Development Region South Final version September 2014 Published by: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered offices: Bonn and Eschborn, Germany Friedrich-Ebert-Allee 40 53113 Bonn, Germany T +49 228 44 60-0 F +49 228 44 60-17 66 Dag-Hammarskjöld-Weg 1-5 65760 Eschborn, Germany T +49 61 96 79-0 F +49 61 96 79-11 15 E [email protected] I www.giz.de Author(s): Adriana Pienaru, Mihail Cojocaru, Leonid Meleca, Anatol Burciu, Cristian Murariu, Jene Jalalite, Andreas de Jong Elaborated by: Consortium GOPA - Gesellschaft für Organisation, Planung und Ausbildung mbH – Eptisa Servicios de Ingeniera S.L. - Integration Environment & Energy GmbH – Kommunalkredit Public Consulting GmbH – Oxford Policy Management Ltd. Prepared for: Project “Modernization of local public services in the Republic of Moldova”, implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of Federal Ministry for Economic Cooperation and Development (BMZ) and with support of Romanian Government, Swedish International Development Cooperation Agency (Sida) and the European Union. Project partners: Ministry of Regional Development and Construction of the Republic of Moldova North, Center and South Regional Development Agencies The expressed opinions belong to the author(s) and do not necessary reflect the views of the implementing agency, project’s funders and partners. Chisinau, September 2014 Modernization of local public services, intervention area 2 Content 1 Introduction ................................................................................................... 1 1.1 The purpose of development the Regional Sector Programme ....................... 1 1.2 Problem identification ...................................................................................... 1 1.3 Methodology ................................................................................................... 2 2 Current status analysis ................................................................................. 4 2.1 Current legal and policy framework ................................................................. 4 2.1.1 National policy framework ............................................................................... 4 2.1.2 Legal framework.............................................................................................. 6 2.1.3 Design and construction standards ................................................................. 7 2.2 Institutional WSS Sector Arrangements .......................................................... 9 2.2.1 Current national-level arrangement ................................................................. 9 2.2.2 Local level ..................................................................................................... 10 2.2.3 Institutional shortcomings and potentials ....................................................... 10 2.3 Geographic conditions of the DRS ................................................................ 11 2.3.1 Territorial organization and population .......................................................... 11 2.3.2 Climate and geography ................................................................................. 12 2.3.3 Availability of water resources ....................................................................... 12 2.3.3.1 Surface water ............................................................................................................... 13 2.3.3.2 Groundwater ................................................................................................................ 13 2.3.3.3 Groundwater quality ..................................................................................................... 14 2.4 WSS infrastructure performance ................................................................... 15 2.4.1 Service coverage .......................................................................................... 16 2.4.2 Water balance ............................................................................................... 17 2.4.3 Quality of service ........................................................................................... 19 2.4.4 Status of infrastructure .................................................................................. 19 2.4.5 Operational efficiency .................................................................................... 20 2.5 Gender and social issues .............................................................................. 21 2.5.1.1 Gender issues .............................................................................................................. 21 2.5.1.2 Social issues ................................................................................................................ 24 2.6 Levels of WSS Sector Financing ................................................................... 24 2.6.1 Country level ................................................................................................. 24 2.6.2 Regional level – South Region ...................................................................... 26 2.7 Lessons learned in the WSS sector in Moldova and other countries ............. 27 2.7.1 Water source and water quality ..................................................................... 27 2.7.2 Water distribution .......................................................................................... 28 2.7.3 Wastewater collection and treatment ............................................................. 30 2.7.3.1 New wastewater treatment technologies ..................................................................... 30 2.7.4 Regionalization of WSS services ................................................................... 31 2.7.4.1 Regional operators ....................................................................................................... 31 2.7.4.2 Tariffs ........................................................................................................................... 31 Regional Sector Programme on Water Supply and Sanitation: Development Region South i Modernization of local public services, intervention area 2 2.7.4.3 Inter-municipal cooperation .......................................................................................... 31 2.8 Key issues and risks in WSS sector development ......................................... 32 3 Desired level of sector development and service by 2020 ....................... 35 3.1 Future policy directions ................................................................................. 35 3.2 Population and water demand forecast ......................................................... 36 3.3 Objectives and targets................................................................................... 37 3.3.1 International commitments and country goals ............................................... 37 3.3.2 Targets for sector development ..................................................................... 38 3.4 Objectives and vision of DRS ........................................................................ 41 4 WSS sector development directions in DRS ............................................. 42 4.1 Future levels of WSS Sector financing .......................................................... 42 4.2 Main directions towards achievement of the sector development targets ...... 44 4.2.1 Water supply ................................................................................................. 44 4.2.1.1 Approach to water supply service improvement .......................................................... 45 4.2.1.2 Water abstraction ......................................................................................................... 46 4.2.1.3 Treatment facilities and water main pipelines .............................................................. 47 4.2.1.4 Distribution networks .................................................................................................... 48 4.2.2 Wastewater ................................................................................................... 48 4.2.2.1 Wastewater service development ................................................................................ 49 4.2.2.2 Wastewater treatment .................................................................................................. 50 4.2.3 Institutional considerations and operational efficiency ................................... 51 4.2.4 Financial considerations ................................................................................ 52 4.3 Assessment of water utility aggregation ........................................................ 53 4.3.1.1 Quality of management ................................................................................................ 56 4.3.1.2 Capacity to attract external financing ........................................................................... 57 4.3.1.3 Economies of scale ...................................................................................................... 57 4.3.1.4 Regional solutions ........................................................................................................ 57 4.3.1.5 Compliance .................................................................................................................