1. Environmental Investments in Latvia and Best Practices 08 December 2015 Zanda Krūkle Senior expert of the Programme management division

2. Funding for Environmental Investments (I)  As a member state of the European Union (EU), Latvia has access to funds for developing & upgrading of environmental infrastructure in line with EU environmental quality standards  EU funds – primarily oriented towards the implementation of EU environmental acquis (requirements of EU Directives etc.)  Since 1990ies environmental investment projects have been implemented in Latvia in several sectors: Water services – 1.177 billion EUR Waste sector – 170,3 million EUR Nature protection – 16.6 million EUR Rehabilitation of polluted sites – 41 million EUR Flood prevention – 15 million EUR Environmental monitoring – 10 million EUR

3. Funding for Environmental Investments (II)  Latvia has successfully used several sources of funding for implementing environmental investment projects: European Union (EU) Structural Funds and Cohesion Fund - pre- acession funds (until 2004), programming periods 2004-2006, 2007-2013, 2014-2020; EEA & Norway Grants 2004 – 2009 and 2009 – 2014 – environmental protection, sustainable development, capacity building & cooperation, policy development. Latvian – Swiss Cooperation Programme – rehabilitation of historically polluted territory in Sarkandaugava area of Riga

4. Funding for Environmental Investments (III) (continued from the previous slide) European Territorial Cooperation Programmes – bilateral, trilateral and regional cooperation programmes addressing common regional issues such as sustainable development, marine protection, territorial/spatial planning etc. Climate Change Financing Instrument – national revenue from the international GHG emissions’ trade (Kyoto Protocol) for improving energy efficiency of buildings in public & business sectors, promoting technologies using renewable energy etc. LIFE+ programme – small-scale nature protection activities

5. EU Structural funds & Cohesion Fund (I)  Pre-accession funds (PHARE/Transition Facility, ISPA): since late 1990ies until 2004 for specific environmental issues, capacity- building, supplies, information activities  Programming period 2004 – 2006: 1 st phase of major rehabilitation & construction works of environmental infrastructure development works across Latvia - mainly water & waste infrastructure in the biggest residential areas  Programming period 2007 – 2013: Largest investment portfolio – 766 million EUR for the environment (additional funds for regional development & ICT); Water sector - rehabilitation & extension of WS & WW networks, water treatment plants (iron removal plants) & WW treatment plants Waste – new landfills, recultivation of illegal dumpsites, waste sorting Nature protection, flood protection, environmental monitoring etc. EU co-financed activities to be completed by 31 December 2015

6. Programming period 2007 – 2013  Activities: 13 activities  Projects: 681 projects signed  Total contracted amount: EUR 726 million  Untapped funding: EUR 43 million  Technical progress: 611 projects are finished  Financial progress in environmental sector: EUR 678 million;  EUR 43 million still be to paid until 31.03.2016. 6 EU Structural funds & Cohesion Fund (II)

7. 2014-2020 Financial allocation by priority axis EU Structural funds & Cohesion Fund (III)

8. Programming period 2014 – 2020  2014-2020 EU funds for environment : 234 million EUR Main environmental issues to be addressed in 2014-2020:  Wastewater network coverage – service accessibility  Low intensity of waste recycling, regeneration  Large proportion of biodegradable waste going to landfills  Climate change – floods & coastal erosion prevention  Environmental monitoring & control  Biodiversity –eco-friendly tourism infrastructure, restoration of habitats EU Structural funds & Cohesion Fund (IV)

9. EU funds 2014-2020: Environment, Regional Development, ICT 9 Specific objective EU co- financing, EUR Aid intensity Project call Main activities 5.1.1. Flood risks28 937 80585%Restricted Reconstruction, construction of hydro technical structures to prevent flood risks and erosion 5.2.1. Waste41 342 25235%Open Development of sorted waste collection, waste preparation for reuse, waste recycling and regeneration 5.3.1. Wastewater & Water 126 574 18685% maxRestricted Waste water systems and elements, WWTP (tertiary treatment) 5.4.1. Biodiversity16 284 60785% Open / Restricted Infrastructure in Natura 2000 sites 5.4.2. Environmental monitoring 20 937 35385%Restricted Monitoring and control tools, society information campaigns, info centrs 256 M of 689 M

10. Wastewater 2014-2020 Investment priority No. 1: Extension & Rehabilitation of WW networks – PE>2000 Other investment needs (depending on availability of funding): 1.Tertiary WW treatment – PE>2 000 2.Household connections to WW networks - PE>2 000 (socially vulnerable groups); good intention/ practically hard implementation 3.WWTPs near water bodies at risk (if the “risk” status is due to WW discharges) 4.Drinking water system - only in agglomerations with inferior water quality (Directive 98/83/EC; minor investments). Results to be achieved: 97% WW network coverage in each group of agglomerations (average ratio) 92% actual WW network connections

11. Waste 2014-2020 1.Preparation of waste for reuse, recycling or recovery (mainly household & municipal waste) 2.Increasing waste recycling or recovery capacity (mainly through development of waste recycling or recovery infrastructure) (primar focus on biodegradable waste) Results to be achieved: Houshold waste going to recycling & recovery in 2022 – 59% (basline 2010 – 24%) Additional waste recycling capacity (in 2023) – 172 000 t/annually

12. Other environmental priorities 2014-2020 (II)  Environmental monitoring & control systems + habitat mapping (22.2 MEUR)  Biodiversity – development of eco-friendly tourism infrastructure (watchtowers, footpathes etc.), restoration of habitats (15 MEUR)

13. Other environmental priorities 2014-2020 (I)  Climate change – floods & coastal erosion prevention measures in densly populatedd areas  EU funding - 28.94 MEUR  Example – coastal erosion near Liepāja WWTP + Flood risk management under MoA NEW!

14. Where we are now with 2014-2020? Steps to be taken before projects can be approved:  Ex ante criteria – national policy documents  Initial evaluations for each Specific Objective  Project selection criteria & methodology  Cabinet Regulations on the implementation of each Specific Objective  Project selection (open/restricted (short-list)) As a result, for most Specific Objectives 2014-2020 project implementation will begin in 2016.

15. Where we are now with 2014-2020? (II) Steps to be taken before projects can be approved:  Ex ante criteria – national policy documents  Initial evaluations for each Specific Objective  Project selection criteria & methodology  Cabinet Regulations on the implementation of each Specific Objective  Project selection (open/restricted (short-list)) As a result, for most Specific Objectives 2014-2020 project implementation will begin in 2016.

16. Factors impacting effective implementation process 16 Strengthened involvement of social partners Reduction of amount of planning and legislative documents One OP Sistemic – step by step approach to investments Centralized process – one agency, unified principles OP Assessement + investment mapping Project evaluation criterions Legislation 1 2 3 4

17. Institutional framework of the EU funds management in Latvia 2007-2013

18. Planned institutional framework of the EU funds management in Latvia 2014-2020

19. Factors impacting effective implementation process New e-system – project proposal applications + project data Supplements to OP – only informative OP amendments– only in 2018 Less HP – less reports Investment mapping Repayable assistance mechanisms Guidelines & seminars Funding + indicators  Decree of the Cabinet of ministers or separate documentation

20. Horizontal Principles 1.Sustainable development* 2.Equality and non-discrimination 3.Equality between men and women 1.Sustainable development* 2.Territory balanced development* 3.Competitiveness of Riga city* 4.Equal opportunities 5.Macroeconomic stability 2014-20202007-2013 * Responsibility of the Ministry of Environmental Protection and Regional Development

21. Factors impacting effective implementation process New e-system – project proposal applications + project data Supplements to OP – only informative OP changes – only in 2018 Less HP – less reports Investment mapping Repayable assistance mechanisms Guidelines & seminars & Info sheets Funding + indicators  Decree of the Cabinet of ministers or separate documentation Project evaluation criterions: impact on indicators; EU funding not more than calculated for one unit

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24. Factors impacting effective implementation process Green procurement (HP) Involvement of the responsible authority (ministry) in the on-the-site checks and project proposal amendments New methodology in water sector Pre - evaluation criterions

25. Reduction of administrative burden?

26. Administrative burden and extended time frame due to implementation model Combining and merging - “reduction of administrative burden” Social partners:  inconsequence,  lack of understanding of nature values and “sustainability concept”,  lack of understanding of “new concepts” due to reduced total funding;  rejecting agreements as a tool to have one’s will, Weak overall process management, incl., prevalence of social partner’s views EU presidency – insufficient human recourses 26 Factors impacting effective implementation process – lessons learnt

27. Thank you! www.varam.gov.lv esfondi@varam.gov.lv