TABLE OF CONTENT 1.FITA 2.FRAMEWORK TRADE MISSION 3.SECTORIAL ISSUES 3.1 Waste management 3.2 Water management 3.3 Renewables 3.4 Inland navigation 3.5 Infrastructure 3.6 Logistics BRIEFING SEMINAR SECTORIAL TRADE MISSION CROATIA Brussels, 25th November 2011

1. FITA FITA vzw stands for FLANDERS INTERNATIONAL TECHNICAL AGENCY Founded 1991 Integrated within the Flemish Ministry for Public Works

1.1 The main aims of FITA are Making Flanders’ achievements known abroad, in various areas connected with infrastructure and equipment, traffic and environmental problems, town planning and country planning and housing ; Fita also deals with the promotion of the participation of the Flemish business world (engineering companies, consultants, building contractors, producers and suppliers) in investments abroad by offering technical assistance and logistic and administrative support e.g. by putting governmental experts available to fulfil international assignments ; FITA organises tailor-made visits and trainings in Flanders ; FITA organises tailor-made trade missions abroad with added value (b2b)

1.2 Principal FITA achievements Inland waterway transport on Magdalena River and dredging works in the ports of Baranquila and Buenaventura ( Columbia) Mekong Navigation Master Plan Cambodia Technical Assistance to the Hungarian Ministry of Environment in the field of waste management planning and waste information management. Powering Harbour Development in S.E. Asia using renewable energy. Panama Canal

1.2 Principal FITA achievements =) CONCEPTUAL DESIGN OF ROLLING GATES FOR NEW POST-PANAMAX 3rd LOCKS ON THE PANAMA CANAL Concept / engineering design Review of contractor designs + technical supervision during execution Advise / expertise / technical specifications Material approval + welding, painting control Inspection (maintenance, repair)

Panama Canal Lock site (3rd lane - Pacific end) Existing Miraflores (Lock site (3rd lane - Pacific end) 2 step) locks

Panama Canal

Concept design Length : m Width : 55 m (61 m) Min. depth sill : 16.8 m (18.3 m) Post-Panamax Locks  geometry

2.1 BRIEFING SEMINAR OBJECTIVES BRIEFING SEMINAR FRAMEWORK TRADE MISSION -) Seminars – b2b – networking - sitevisit DESTINATION: Zagreb – Rijeka DATA TRADE MISSION: spring ) except IFEST (W7/2012) -) BATIBOUW&MIPIM ( W9/2012 ) CHAIRMANSHIP: ? PARTNERS:

3.WASTE MANAGEMENT 3.1 Current situation Waste management priority Transposition of EU legislation completed Municipal waste: 403 kg/capita ( 2008 ) Growing awareness of the need to avoid and reduce waste streams Organised municipal waste collection increased from 86% ( 2004 ) to 93% ( 2008) Landfill tradition

MUNICIPAL WASTE

WASTE MANAGEMENT 3. 2 INSTITUTIONAL FRAMEWORK The Ministry of Environmental Protection, Physical Planning and Construction (MEPPPC) is responsible for administrative and other tasks related to general environmental protection policy and achieving the conditions for sustainable development. The Croatian environment agency (CEA) has the obligation to analyse and interpret the collected environmental data and provide, to the state administration, the Government and the Parliament, the information necessary for efficient implementation of the environmental policy. The Environmental protection and energy efficiency Fund (EPEEF), from its founding in 2003, performs financing, preparation, implementation and development of programs, projects and related activities in the field of conservation, sustainable use, protection and improvement of environment and in the field of energy efficiency and renewable energy use. The Fund is financed by funds raised through different taxes imposed on the environmental polluters.

3.3 MAIN CHALLENGES 3.3.1Locating landfills and public opposition to siting new facilities, especially incinerators Public awareness and communication Example: Zagreb W2E plant - construction planned for T municipal waste & sludge - EIA -

3.3 MAIN CHALLENGES 3.3.2Other Regional Waste Management Centres Bikarac ( Sibenik – Knin county)8.9 mil € Kastijun ( Istria county) 39.3 mil € Mariscina ( Primorje – Gorski Kotar county)49.3 mil € -) Construction new municipal landfill & MBT - plant -) Closing&remediation existing ones, transfer stations =) Croatia is very ambitious in waste management and thus more heavy investment projects to come =) Max. 21 WMC ( MBT + 1 W2E plant) =) Financing: 80% ( EU) + 20 % ( local/regional level ) =) Overall investment needs to establish regional waste management centers in Croatia are estimated at 400 mil.€ including landfill sites, mechanic-biological treatment plants, transfer stations, and other supporting infrastructure.

3.3 MAIN CHALLENGES 3.3.3Island waste collection Logistically difficult to implement Waste strategy envisions ferries to the mainland

2.2 MAIN CHALLENGES 3.3.4Weak capacity to develop &manage projects among municipal waste management co’s Need for a strong project pipeline for absorbing available funding Many projects small in size 3.3.5Inadequate waste flow and composition data deters private sector operators. Guarantees signed agreements by private sector Higher level of environmental protection landfills 3.3.6Households – level of affordability

3.3 MAIN CHALLENGES 3.3.7Landfills – remediation in progress 299 “ official “ landfills to be remediated Municipal Waste Landfills Remediation Cost ( 387 mil €) financing by EPEEF ( 55 %) and regional governmental units municipal landfills remediated uncontrolled dumping sites Transitional period requested for: - remediation of landfills for gradual reduction of biodegrable waste to 35 % by 2020

3.3 MAIN CHALLENGES 3.3.8Packaging Waste Return and/or collection of used disposable PET packaging is organised through points of sale against the payment of refund to consumers pursuant to the Ordinance on Packaging and Packaging Waste. The quantities collected are steadily increasing in line with the trend of growing quantities of packaging on the market. Type of packaging Amounts collected in 2006 (t) Amounts collected in 2007 (t) Amounts collected in 2008 (t) PET AND OTHER POLYMERS 19,03425,39525,096 GLASS CONTAINERS59,35463,42959,116 Al/Fe1,1641,7571,189 CARDBOARD AND COMPOSITE PACKAGING 118,642155,742181,189 WOOD311,8211,353 TOTAL:198,225248,144267,943

3.3 MAIN CHALLENGES 3.3.9Conclusions Key issues are: -increase in solid waste -very limited recycling rates -unreliable data concerning waste flows and quantities -lack of organized disposal sites.

3.2 WATER MANAGMENT Institutional framework Water management in Croatia is under the responsibility of the Ministry of Regional Development, Forestry and Water Management and the implementing public institution – Croatian Waters (Hrvatske vode). Current situation Supply of drinking water ( 80 % ) Main challenge for wastewater sector - Rather low connection rate public sewerage: 40 % - Sewerage infrastructure outdated ( leakages, deformations, …) - EBRD is providing most of the loans for public WWTP and sewerage projects. EIB is providing loans for smaller priority &investment projects - 5 bil € needed (estimated )

3.2 WATER MANAGMENT Projects Ongoing projects - Slavonski Brod ( 30 mil € ) - Knin ( mil 15,5 € ) -Drnis ( mil 6,5 € ) Future projects - Sisak ( 30 mil € ) - Kastela Bay ( 117 mil € ) - Karlovac ( 36 mil ) - Nova Gradiska ( 13 mil €) - Dakovo ( 25 mil. € ) - Vrbovec ( 17 mil €) - Porec ( ? mil €)

3.3 RENEWABLES Current situation Sun & Wind primary renewable sources =) Solar energy being underutilised despite extensive potential =) Low share of renewable energy sources in primary energy production: 1 % ( 2004 ) upto 6 % ( 2010 ) excluding large hydro-electricity plants. =) An outdated energy infrastructure and a sluggish bureaucracy are some of the obstacles to developing RES in Croatia =) 20 – 20

3.4 INLAND NAVIGATION Danube – Sava Chanel ( 61 km.) Inland Port Development Improvement / upgrading navigability inland rivers

3.5 INFRASTRUCTURE The Ministry of Sea, Transport and Infrastructure is competent for: - Measures for the protection of the Adriatic sea, islands and coastal regions and their sustainable development; -Control over business concessions for domestic and international marine, boating, road, rail, air, postal and telecommunications and river transport; -Strategy for development of all forms of transport ( incl Seaports and inland waterways) -Inland freight-transportation centers; -Airports & Telecommunications; -The organization of strategic infrastructure projects and investment programs of special importance for the Republic of Croatia; -Organization of major infrastructure investment projects in building construction and equipment of water management of transport infrastructure. =) Croatia will modernise 200 km of railway lines, amounting 0.5 bil € ( project to be launched by 2013)

3.5 INFRASTRUCTURE RIJEKA GATEWAY Rijeka Gateway Project or Rijeka Traffic Route Redevelopment Project is a complex development program aiming to redevelop port/city interface and to improve the port traffic connection with the international road and railway corridors.

3.6 LOGISTICS In the field of logistics, Croatia has no experience - new business area! Educational framework is not defined and there is no education in this field. Multimodality almost unknown in Croatia except for the ports of Rijeka and Ploče Those 2 projects might give a boost in logistic activities for Croatia.

CONCLUSIONS Croatia has: High ( technical )quality education standards A comparatively developed infrastructure Several bureaucratic hurdles Croatia is a pioneer in the acceptance of new technologies, especially in data transfer technologies

MARKET INFO Market Reports: 1.Waste and wastewater treatment in Croatia ( May 2010, Trade Office for Brussels and Flanders Regions ) 2.Renewable Energy in Croatia ( March 2011, Trade Office for Brussels and Flanders Regions ) 3.Sector Analysis Energy and Environment ( November 2010, Trade Council, Embassy of Denmark) 4.Transport and Logistics in Croatia ( 2010, Trade Office for Brussels and Flanders Regions ) 5.Rijeka Gateway illustrated ( 2010, Worldbank ) =) Send your request to