IMPROVING MANAGEMENT OF PUBLIC ENVIRONMENTAL EXPENDITURE - POLAND Global Forum of Sustainable Development OECD Paris, 18-19 December 2003.

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IMPROVING MANAGEMENT OF PUBLIC ENVIRONMENTAL EXPENDITURE - POLAND Global Forum of Sustainable Development OECD Paris, December 2003

Critical milestones of the reforms of local finance and public services 1990 – re-establishing municipalities (equipped with legal tools, sufficient financial resources and large property), having amongst other responsibilities – water supply, sewage disposal and treatment, solid waste management; 1994 – transfer of 10 % of National Environmental Fund to municipalities, 1997 – Municipal Economy Act, 1999 – transfer of 20 % of National Environmental Fund to municipalities and 10 % to counties, influence of regions on regional branches of National Environmental Fund, 2001– Act on Common Water Supply and Sewage Disposal.

Trends in local environmental investments in Poland (1) Total municipal environmental investments: 1991 – 0,6 bln zlotys 1996 – 4,0 bln zlotys 2001 – 2,2 bln zlotys

Trends in local environmental investments in Poland (2) Municipal environmental expenditures in total local investments: 1991 – 50 % 1996 – 57 % 2001 – 19 %

Trends in local environmental investments in Poland (3) Resources used by local authorities for financing investments (%): own central b eco-funds Loans

Trends in local investments Municipal local investments (bln zl): Environment 4,0 2,2 Public transport 0,2 3,7 Education 1,0 2,0 Housing 0,4 1,3 TOTAL 7,1 11,5

Internal tools supporting management of local environmental investment Land-use planning / local development strategy Environment protection programmes Solid waste management programmes Multi-annual financial plans Multi-annual investment plans Task-based budgets Consolidated financial reports

External tools supporting management of local environmental investment Brighter offer of capital market addressed to local authorities in last 5 years National Environmental Fund ( + regional branches ) Possibility of presence of municipal companies on stock exchange / alternative public capital market (used still in very limited range) Good legal framework for environmental sector EU policies and financial instruments Public – private partnership (difficult, no legal framework)

Environmental effects of local investment Area Water supply systems (km) Sewage collecting nets (km) Towns with sewage treatment plants467 / / / 884 Biological treatment plants Biologically treated sewage (%)