1. EU Funds for Water projects in the Czech Republic Ministry for Regional Development of the CR Cohesion Fund Managing Authority Department Ing. Radka Bučilová

2. European Union´s Cohesion Policy The aim of the European Union´s economic and social cohesion policy is to reduce the differences between the economic and social development of individual regions and to encourage their development and structural changes leading to economic and social transformation.

3. Czech Regional Policy  The fundamental document on the national regional policy is the Strategy for Regional Development adopted by the Czech Government in July 2000.  National Development Plan approved by the government´s resolution 1272/2002  Community Support Framework

4. Community Support Framework  The Community Support Framework for the Czech Republic 2004 – 2006 is the final result of a long period of preparations and internal negotiations within the Czech Republic between many different public and non-public, national, regional and local partners followed by an intensive period of negotiations with the European Commission.  This document constitutes the basic strategy for socio- economic development of the cohesion-regions Central Bohemia, North-West, South-West, North-West, North- East, South-East, Central Moravia and Moravia-Silesia for the period 2004 – 2006.

5. Structural Funds Strategy  The Structural Funds and the Cohesion Fund support the priorities and measures for economic and social development. In addition, part of the allocations is used for technical assistance measures to strengthen the countries´ administrative capacity for project preparation and implementation.  The global strategy of the Community Support Framework is implemented by by specific strategies described in five Operational Programmes.  Strategic plans for major projects conserning transport and Environment are implemented by the Cohesion Fund.

6. Structural Operations Community Support Framework 2004-2006 Five Objective 1 - Operational programmes  OP Industry and Enterprise (OP IE)  OP Infrastructure (OPI)  OP Rural Development and Multifunctional Agriculture (OP RDMA)  OP Human Resources Development (OP HRD) Joint Regional Operational Programme (JROP) Single Programing Documents for Objective 2 and for Objective 3 (Prague)

7. Structural Operations in the Czech Republic in 2004 – 2006 by Support Areas Support AreasAllocations of Structural Operations for CR (in mil EUR) Cohesion Fund (Average) 945,3 Structural Funds 1 584,4 Objective 1 1 454,3 Objective 2 71,3 Objective 3 58,8 Community Initiatives 100,8 INTERREG 68,7 EQUAL 32,1 Total Structural Operations 2 630,5

8. Operational Programme Infrastructure  Operational Programme Infrastructure is the document addressing the need to submit an operational programme for the period of 2004 – 2006 for the Czech Republic, covering development priorities of the transport sector and sector of the environment in the Czech Republic. These plans are co- financed from EU Structural Funds within the Objective 1.  The OP Infrastructure contributes to the development of the second priority axis- Development of Transport infrastructure – and the fourth priority axis - Protection and improvement of the Environment - of the CSF. Implementation of the OP Infrastructure will be mainly contributing to the achievement of the specific objective “improvement of the infrastructure quality” of the CSF, but also supporting the horizontal objectives of “sustainable development” and “balanced development of regions”.

9. Cohesion Fund  Established: under Council Regulation No. 1164/94 as a complementary fund (not structural) intended to improve economic and social cohesion  Intended for: countries with GNP lower than 90% of EU average to allow their participation in economic and monetary union (i.e. Greece, Ireland, Spain, Portugal) Focused on:  Large projects involving environment and transport infrastructure (total cost at least EUR 10 mil.)  Groups of projects, technically and financially independent stages of projects  Non-eligible: One project cannot be financed from both Structural Funds and Cohesion Fund

10. Cohesion Fund Allocation of assistance from the Cohesion Fund to the Czech Republic during 2004-2006:  2004: min. EUR 282.7 mil (9.76%), max. EUR 355.8 mil. (12.28%), average EUR 319.2 mil. (11.02%)  2005: min. EUR 237.2 mil., max. EUR 298.4, average EUR 267.8 mil.  2006: min. EUR 317.3 mil, max. EUR 399.2 mil., average EUR 358.3 mil. Total: min. EUR 837.2 mil., max. EUR 1,053 mil., average EUR 945.3 mil.

11. Cohesion Fund Funds paid by the Czech Republic to the Cohesion Fund during 2004-2006:  2004: min. EUR 152.2 mil., max. EUR 191.6 mil., average EUR 171.9 mil.  2005: min. EUR 127.7 mil., max. EUR 160.7 mil., average EUR 144.2 mil.  2006: min. EUR 170.9 mil., max. EUR 215 mil., average EUR 192.9 mil. Total 2004-2006: min. EUR 450.8 mil., max. EUR 567.2 mil., average EUR 509 mil.

12. Cohesion Fund  Communities assistance provided through the Cohesion Fund may not exceed 80-85% of public or equivalent expenditures, including expenditures of organizations which activities are carried out in an administrative or legal framework by virtue of which they can be deemed equal to public bodies.  The actual amount of assistance is determined according to the type of activity to be carried out. If assistance is provided for a project generating profit, the amount of expenditures is based on calculation of assistance from the Fund, taking into account the profit earned by the originators of the project.

13. Cohesion Fund  Due to the fact that during 2004-2006 the Czech Republic will have a combination of nonprofit project and projects earning profit, the average allocation of the Czech Republic is expected to total 65% of the Fund’s means.  Although the Cohesion Fund will remain an instrument for financing individual projects, it is clear that a more effective allocation of funds will require the introduction of a strategy, the definition of priorities for assistance and the identification of the recources for achieving them.

14. Cohesion Fund Priority projects for the Cohesion Fund – environment  Securing adequate quantity and quality of water (drinking water and wastewater)  Waste management  Air quality  Elimination of environmental pollution from the past

15. Cohesion Fund Priority projects for the Cohesion Fund – transport  Investment along the 10 Pan – European Transport Corridors  Promoting rail and combined transport  Developing multi-modal platforms  Improving traffic management systems

16. Project: Reconstruction of Water Treatment Plant and Waste Water Treatment Plant, Reconstruction and Completion of Sewerage System within the Lužická Nisa River Basin

17.  The date of signature of Commission Decision of project Lužická Nisa 23. 12. 2004  Expected completion date in initial Commission Decision: 31. 12. 2010  Tender 15. 4. 2006  Start of work 15. 10. 2006  Expected completion date: 31. 12. 2009

18. Project: Reconstruction of Water Treatment Plant and Waste Water Treatment Plant, Reconstruction and Completion of Sewerage System within the Lužická Nisa River Basin  Total elegible cost: 28 797 000 EUR  The rate of Community assistance granted to the measure is fixed at 72 % of total public or equivalent expenditure  The maximum amount of assistance from the Instrument for Structural Policies is fixed at 20 733 840 EUR

19. Project: Reconstruction of Water Treatment Plant and Waste Water Treatment Plant, Reconstruction and Completion of Sewerage System within the Lužická Nisa River Basin Objectives:  To improve quality and efficiency of the water treatment process in Drinking Water Treatment Plant Souš in order to comply with the requirements of Directive 98/83/EC concerning the quality of water intended for human consumption  To expand and complete the Waste Water Collecting System within the Liberec-Jablonec agglomeration and thus contribute towards compliance with the objectives of Council Directive 91/271/EEC concerning urban wastewater treatment 

20. Project: Reconstruction of Water Treatment Plant and Waste Water Treatment Plant, Reconstruction and Completion of Sewerage System within the Lužická Nisa River Basin  To improve efficiency of wastewater treatment process in the Waste Water Treatment Plant Liberec namely in the field of nitrogen removal in order to comply with the requirements of Council Directive 91/271/ECC concerning urban wastewater treatment.  To expand the waste water collecting system in the Liberec-Jablonec agglomeration, to improve its efficiency and reliability and thus promote further urban and territorial development in this agglomeration and regional conurbation.

21. Cohesion Fund Accepted priority projects for the ISPA/Cohesion Fund (2000-04) – Environment  Extension of Sewerage System in the City Ostrava  Sewer System of the City of Brno  Monitoring and Assessment of Hydrosphere in Compliance with EC Environmental Directives in the Czech Republic  Reconstruction of drinking water supISPAply system, construction of sewerage system, reconstruction of water treatment and waste water treatment in the region of Podkrušnohoří (North Bohemia)  Jihlava WWTP and Sewer System Upgrading

22. Cohesion Fund  Olomouc Sewer System Upgrading  Water Protection of Dyje River Basin project  Waste Water Disposal Management and Drinking Water Supply for Jeseník  Clean River Bečva  Providing Standards of European Union for the Water Supply System of South Bohemia  Žďár n. Sázavou Sewer System Reconstruction  Waste Management Brno  Znojmo Sewer System Reconstruction

23. Cohesion Fund  Karviná: Sewerage extension  Příbram: WWTP upgrading  Pilsen: Expansion sewer infrastructure  Lužická Nisa River: WWTP and sew.  Karlovy Vary: Waste Sater Management  Klatovy – Clean Town  Beroun: Sewerage system extension  Šumperk, Sewers +WWTP  Sewerager +WWTP Radbuza  Břeclav, Sewer, WWTP, water distribution 10 CF Commission Decision from 2005

24. Cohesion Fund Priority projects for the ISPA/Cohesion Fund (2000- 04) – Transport Railways:  Optimisation of the Ústí nad Orlicí – Česká Třebová Railway Section  Modernisation of Záboří – Přelouč Railway  Optimisation of Zábřeh na Moravě – Krasíkov Railway Section  European Trail Control System (ETCS)/ERMTS) Pilot project Poříčany – Kolín  Červenka – Zábřeh na Moravě, Stage I + II  1 project with Commission Decision from 2005

25. Cohesion Fund Priority projects for the ISPA/Cohesion Fund (2000- 04) – Transport Roads:  Expressway R48 – Bělotín by-pass  Section of R48 Expressway Frýdek-Místek – Dobrá  D8 Motorway: Prague – Ústí n. Labem – Czech/Germanborder, Section 0807 Trmice – border  Expressway R48 Dobrá – Tošanovice – Žukov, Stage 1 Dobrá – Tošanovice  R48 Dobrá – Tošanovice – Žukov, Stage 2 Tošanovice – Žukov  Motorway D1, Kroměříš West – East  Prague Ring Road, Section 514

26. Cohesion Fund  Priority projects for the ISPA/Cohesion Fund (2000-05) – Environment, Railways, Roads : ISPA/CF Cofinancing: 1 049 261 209 EUR

27. Ministry for Regional Development  Thank you for your attention. Contact: bucrad@mmr.cz Tel.: +420 224 861 671