The Permanent Representations of Denmark, Poland and United Kingdom to the European Union Water Supply and Waste Water Management within the European Neighbourhood Partnership Instrument (ENPI) Antonino CREA, Head of sector Water and Sanitation, EuropeAid With the contribution of Anna EKDAHL, Junior Expert Hotel Bloom - Brussels 5 December 2007

Contract opportunities in countries under the European Neighbourhood and Partnership Instrument (ENPI) Part 1 – What is ENPI? Introduction to the European Neighbourhood Policy Introduction to the ENPI ENPI Financing ENPI Components Part 2 – Projects in partner countries Needs of partner countries Bilateral Programmes Regional Programmes Part 3 – Statistic Useful Links

ENP – European Neighbourhood Policy What is ENPI? ENP – European Neighbourhood Policy The Commission Strategy Paper “European Neighbourhood Policy” was adopted by European Council in 2004. The overall objective is to avoid the emergence of new dividing lines between the enlarged EU and our neighbours. The aim is to strengthen the prosperity, stability and security of all concerned. The central element of the European Neighbourhood Policy is the bilateral Action Plans. At the outset of the process, the Commission prepares Country Reports assessing the political and economic situation as well as institutional and sectoral aspects. The next stage is the development of ENP Action Plans with each country. These documents are negotiated with and tailor-made for each country, based on the country’s needs and capacities, as well as their and the EU’s interests.

What is ENPI? ENP Partners ENP South: The immediate neighbours of the enlarged EU … … but not countries with accession perspective (Turkey, Balkans) ENP South: Israel, Jordan, Morocco, Occupied Palestinian Territory, Tunisia, Lebanon, Egypt, Algeria, Libya, Syria (no Agreements in force) ENP East: Moldova, Ukraine, Armenia, Azerbaijan, Georgia Belarus, (no Agreements in force) …and not Russia, with whom EU has Strategic Partnership The European Neighbourhood Policy is about working together with those states who share a land or sea border with the EU. Russia is not covered by the European Neighbourhood Policy.

the European Neighbourhood and Partnership Instrument What is ENPI? ENPI From 1st of January 2007 onwards previous financial assistance programmes, such as the MEDA (for our southern Mediterranean neighbours) and TACIS (for our eastern neighbours and Russia) as well as thematic programmes, such as LIFE Third Countries, is replaced by a single financial instrument called: The ENPI instrument is much more than the MEDA and TACIS successor: it is the widened strategic continuation of it. The ENPI has three strategic objectives, namely: supporting democratic transition and promoting human rights; the transition towards the market economy and the promotion of sustainable development; and policies of common interests the European Neighbourhood and Partnership Instrument ENPI

What is ENPI? ENPI - Map Russia is NOT a part of the European Neighbourhood Policy. However, Russia IS covered by the European Neighbourhood Partnership Instrument.

ENPI Financial Envelope for 2007-2013 What is ENPI? ENPI Financial Envelope for 2007-2013 European Neighbourhood & Partnership Instrument (ENPI): Almost €12 bn More flexible, policy-driven instrument Supporting priorities agreed in the ENP Action Plans Simplified approach for cross-border co-operation Plus increased EIB lending mandate: €12.4 bn The instrument manages almost 12 billion Euros. The Instrument is policy-driven, which means that it is supporting the implementation of the agreed ENP. An Annual Action Plan is developed between the EC and every partner country. All programmes, projects and actions financed by the ENPI are realized within the context of the central Action Plan framework. An improved cross-border cooperation is an important aspect of the ENP, thus giving substance to the aim of avoiding new dividing lines.

Potential sources of ENPI financing What is ENPI? Potential sources of ENPI financing ENP as the overarching policy The Actions falling under the ENPI is often cofinanced by the Member States, Partner Countries as well as banks. The Bilateral programmes contain the main bulk of ENPI financing. Regional programmes are divided into the ENPI South and the ENPI East. The Interregional Programme includes several components, for example the Neighbourhood Investment Facility and the Technical Assistance and Information Exchange, which we will come back to later. The Thematic programmes can be partly financed under ENPI. ENPI South ENPI East

ENPI – Main areas of intervention What is ENPI? ENPI – Main areas of intervention A set of priorities were defined by the EU and the partner countries, covering a number of key areas for specific action: Political dialogue and reform Economic and social cooperation and development Trade related issues, market and regulatory reform Co-operation on Justice, Freedom and Security Sectors: Transport, energy, information society, environment, research and development Human dimension: People-to-people contacts, civil society, education, public health Water supply and waste water treatment falls under the environment sector. All ENP Action Plans have the same chapters but content specific to partner.

RELEX / Partner country What is ENPI? Standard procedure Responsible Phase RELEX / Partner country Programming AIDCO / Delegation Identification Financial Agreement Contracts Beneficiaries Implementation

What is ENPI? Aid Modalities Community external assistance is used: To Finance Technical Assistance To Finance Direct Investments For Sectoral or General Budget Support For Interest Rate Subsidies To finance Micro Projects For Food Security measures For Dept Relief programmes To finance the costs for the effective administration and supervision of Projects and Programmes Defined in Article 15 of the REGULATION (EC) No 1638/2006 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 October 2006 laying down general provisions establishing a European Neighbourhood and Partnership Instrument …as well as for loan financing and for contribution to funds or financial intermediaries.

Components of Interregional Programme What is ENPI? Components of Interregional Programme NIF – Neighbourhood Investment Facility (50 m€ for 2007) A new instrument which combines grants and loans through reducing overall costs, subsidising interest rate and financing technical assistance. The NIF focuses on energy, environment and transport. TAIEX - Technical Assistance and Information Exchange TAIEX became operational in June 2006 for ENPI Partner Countries, though previously a successful instrument in the context of EU enlargement. It is jointly managed by EuropeAid and the European Commission’s Enlargement Directorate-General. It is a quick and flexible tool for short-term technical assistance and expertise. These are not the only components

EUWI – EU Water Initiative What is ENPI? EUWI – EU Water Initiative Launched at the 2002 World Summit for Sustainable Development (WSSD), designed to contribute to the achievement of the MDG and WSSD targets for drinking water and sanitation. EUWI is a political initiative to increase the effectiveness of the financial and technical resources available within the EU and its Member States for overseas development assistance, in order to maximize our individual and joint efforts. The ENPI partner countries are covered by two EUWI components: Eastern Europe, Caucasus and Central Asia - EECCA Mediterranean – MED EUWI

Beneficiary countries - Needs Projects in partner countries Beneficiary countries - Needs The needs and level of co-operation differs a great deal between partner countries. Due to facts like varying levels of development and level of co-operation as well as climate and political situation. It is estimated that 19-20 bn € would be needed to achieve the MDGs across the ENP region. For investments in fresh water related projects in the ENP East a first order estimate of 10-12 bn € has been made. This is a need which will contribute towards NOT achieve EU standards.

Beneficiary countries – Past Financing Projects in partner countries Beneficiary countries – Past Financing With the development of the bilateral, regional and interregional Indicative Papers, priorities and approaches have been adjusted and defined. Under TACIS 18.7 m€ were invested in water and waste water projects under bilateral programmes and 300 m€ under regional programmes. Under MEDA 468 m€ were invested in water and waste water projects under bilateral programmes and 52.4 m€ under regional programmes.

Bilateral programmes are the main bulk of ENPI Funding Projects in partner countries Bilateral Programmes Bilateral programmes are the main bulk of ENPI Funding Former MEDA partner countries have a history of more important bilateral cooperation compared to former TACIS partner countries. Below are the countries in which water is a main priority sector: ENPI South: Egypt, Jordan, Lebanon, Morocco, Tunisia, Syria ENPI East: Ukraine, Moldova, Russia

Projects in partner countries Bilateral Programmes EGYPT Egypt's water management system suffers from a fragmented and weak legal/regulatory framework, leading to very low efficiency in water use, very high leakages and poor average quality of water and of the water supply and sanitation service to consumers. The cost of environmental damage in the water sector is estimated to more than 1% of GDP. Ongoing Projects: EU Water Sector Reform Programme 80 m€ Project in Pipeline: Support for investment in the transport, energy and environment sectors Indicative budget: 58 m€ in 2007-2010 Interest-rate subsidies that could attract loans of around 250 m€ to 300 m€.

Projects in partner countries Bilateral Programmes MOROCCO 35% of the population in Morocco have access to less than the "absolute shortage" of 500 m3/p/year. The effect of the scarcity of resources is made worse by the water pollution. Only 5% of the urban effluents is treated. The cost of the deterioration of the water resources in Morocco is estimated to 1 bn €/year i.e. an equivalent of more than 3% of the GDP. Ongoing Projects: Water & Sanitation in rural parts – PAGER 40.5 m€ Sanitation in Moroccan villages 30.4 m€ Structural adjustment of the water sector 120 m€ Sanitation and Institutional Support 30 m € Project in Pipeline: Support to FODEP Industrial Depollution Funds Indicative Budget: 15 m€ in 2008 Assainissement des eaux Indicative Budget: 35 m€ in 2009

Projects in partner countries Bilateral Programmes JORDAN Jordan is one of the most water-stressed poor countries in the world, which makes availability and management of water resources a major challenge for the country. It is a socio-economic and environmental issue. Water quality is affected by untreated municipal wastewater discharge, industrial effluents, solid waste disposal and agricultural run-off. Ongoing Projects: The Programme Management Unit of the Greater Amman Water Sector Improvement Programme 7 m€ Al Meyah - Supporting Management of water resources in Jordan 5 m€ Project in Pipeline: Water management programme Indicative Budget: 10 m€ in 2010

Projects in partner countries Bilateral Programmes LEBANON Lebanon is rich in groundwater aquifers. Important pressure in terms of quantity and quality stem from agriculture, domestic sewage, agro -chemicals and industrial effluents. Since 1992 a total amount of 723 m€ in EIB loans has been signed for Lebanon. Priority sectors are infrastructure, private sector and environment (water and waste water). Ongoing Projects: Set up of Water Technical Management Tools 5 m€ Project in Pipeline: Support for social and economic reform Indicative Budget: 86 m€ 2007 - 2010

Projects in partner countries Bilateral Programmes SYRIA In Syria, economic expansion, urbanisation, the high rate of population growth and changing consumption patterns have led to more industrial activity, higher energy demand and more waste. This in turn has led to overuse and pollution of the scarce natural resources, especially water. Ongoing Projects: Water Supply and Sanitation in Support of two Palestinian Refugee Camps 8 m€ Water Supply and Sanitation in the South-West of Damascus 5 m€ Project in Pipeline: Water supply project in Aleppo Indicative Budget: 5 m€ in 2007

Projects in partner countries Bilateral Programmes TUNISIA Water is a major priority given the limited resources of Tunisia. The recent development of industry, tourism and motor traffic as well as the rapid urban population growth exerts high pressure on the hydrological resources of the country and contributes to increasing pollution in coastal areas and waste production. Ongoing Projects: Conservation of Waters and Soils (CES II) 19.3 m€ Sanitation ONAS III 9 m€ ONAS IV - Assainissement liquide 10 m€ Project in Pipeline: Environment - Energy Indicative Budget: 43 m€ 2007

Projects in partner countries Bilateral Programmes RUSSIA Ongoing Projects: Municipal Services 9.2 m€ Kaliningrad Waste Water in Small Towns 9.5 m€ Project in Pipeline: Kaliningrad Oblast Indicative Budget: 12-24 m€ 2007-2010 MOLDOVA Project in Pipeline: Support for Poverty Reduction and Economic Growth Indicative Budget: 83.9-125.8 m€ 2007-2010 UKRAINE Project in Pipeline: Support for Infrastructure Development Indicative Budget: 197.6 m€ 2007-2010

Projects in partner countries Regional Programmes ENPI South (Environmental Programme 33 m€ 2007-2010) Regional cooperation focuses on issues that have a trans-national dimension and where regional approaches offer an added-value compared to purely national approaches. Quality and quantity of water. This is one of the most serious environmental problems currently facing all the countries in the ENPI South region. Water scarcity is set to worsen with the projected increase of the population. Poor water quality or water pollution tends to result from high salinity due to over-abstraction, poor irrigation techniques, pollution from agricultural run-off and uncontrolled discharges of wastewater.

Projects in partner countries Regional Programmes ENPI-Mediterranean Environment Programme (7 m€) The EC environment cooperation under this programme will focus, in particular, on: Implementation of Horizon 2020 Initiative (for the depollution of the Mediterranean Sea) Supporting Partner Countries' participation in activities of the European Environment Agency Other priorities such as support to the EUWI-Mediterranean component and strengthening of capacities of NGOs, will be covered by other actions/programmes.

Projects in partner countries Regional Programmes ENPI East (Environmental Programme 56-78 m€ 2007-2010) Regional cooperation is particularly important for the environmental sector since these problems do not respect borders, and a regional response is frequently required. Support for regional cooperation in the ENPI East region will focus on key processes in the forest and water sectors, on regional cooperation in addressing industrial pollution and climate change, and on information and civil society cooperation in the environment field.

Statistics

Website for EC funding opportunities

Web site for tender opportunities http://ec.europa.eu/europeaid/cgi/frame12.pl Other useful links http://www.euwi.net/ http://ec.europa.eu/comm/world/enp