1. Formation of tariff policy of household waste management Workshop on Solid Waste Management, ETT 53729 Ukraine, Kiev25. 11. 2013 Jaromír MANHART

2. 2 Population 45 547 800 (I/2013) Area 603 628 km 2 Regions 24 oblasts, 1 autonomous republic 2 "cities with special status” Kyiv 2 847 200 inhab. http://en.wikipedia.org/wiki/Administrative_divisions_of_Ukraine UKRAINE Population 10 513 209 (IX/2012) Area 78 866 km 2 Regions 13 regions capitol of Prague Prague 1 262 106 inhab. CZECH

3. 3 WASTE MANAGEMENT CZECH AUTHORITIES Ministry of the Environment Czech Environmental Inspectorates Regional Offices + Municipalities State Environmental Fund (Act 388/1991 Coll., on the State ENV Fund) Ministry of Health & Agriculture & Finance National Hygiene Offices Czech Trade Inspection Police

4. 4 CZECH WASTE LEGISLATION ACT No. 185/2001 Coll., on waste Act No. 477/2001 Coll., on packaging Government Regulation No. 197/2003 Coll., on the Waste Management Plan of the CZ Act No. 565/1990 Coll., o local payments

5. 5 FEES FOR LANDFILLING 2013 Increasing trend of fees (EUR/tonne/year) 05 - 0607 - 0809 - 1314 and further Hazardous4526161 70 Household and other115 30 Additional risk (hazardous) component Hazardous 91121165173 19 PROPOSALPROPOSAL

6. 6 BASIC AND ADDITIONAL PAYMENTS FOR LANDFILLING 1) basic payment for waste landfilling 2) additional risk payment for hazardous waste landfilling Ad1) BASIC - income for the municipality or more municipalities Ad2) RISK - income for the State ENV Fund !! Asbestos waste is hazardous waste but „political“ exemption – only BASIC FEE PAID

7. 7 FEES FOR WASTE LANDFILLING – WHO PAYS? AMOUNT set by Ministry of Finance and Ministry of Environment FEE IS PAID by:  waste producer  landfill operator FEE IS NOT PAID:  for depositing waste as technological materials (max. 25 %)  for technical securing of the landfill construction M ust be in accordance with the approved project and rules of operation of the landfill

8. 8 PAYMENT OF THE PUBLIC FOR WASTE MANAGEMENT SERVICES 3 legal types of payment of the fee: a) Act on the local payments (80% municipalities) b) Act on waste (17% municipalities) c) contractual payment (3% municipalities) MAIN DISADVANTAGES: Ad a) max. cost 1 000 CZK (38.5 EUR) / person Ad b) uncertainty of measurement (estimated cost, with regard to sorting, individual produce waste) Ad c) all agree

9. 9 HOW MUCH I DO PAY FOR WASTE? Small / big town / village Citizens pay to the municipality for WM Municipality: - is waste producer – responsibility principle - has to take care of my waste - provides collection system – bins, yards MY FAMILY $$ 1 person 24 EUR / year Family 2+2 = 4 x 24 EUR yearly 1x week collection of mixed household (120 l)

10. 10 ECONOMIC WASTE MANAGEMENT TOOLS  Disposal Fee (landfilling fee)  Compensation fee for landfilling of waste (for municipalities with landfill) Charging users of the community for household waste - residents, traders Investment and public support

11. 11 STRATEGIC FINANCING State Environmental Policy Waste Management Plan CZ Mo-ENV Budget + Ministries Operational Programme ENV Waste Management 520.258 Contaminated Sites 256.247 2007-2013 mil. EUR

12. 12 OWNERSHIP OF WASTE FACILITIES - LANDFILLS 100 % privatized facilities in CZ Private companies ownership - Czech origin - DE/AT/FR shareholders/stakeholders State ownership of landfills - 62 from 205 landfills in CZ - town(s) / municipalities Old dump or illegal landfills - most cases is state responsibility

13. 13 LANDFILLING CAPACITY 2012 205 landfills operated total capacity 100 mil. m 3 26 for hazardous waste capacity for HW ~ 10 mil. m 3 31 for inert waste 148 for non-haz/household waste

14. 14 INCINERATION AND CO-INCINERATION CAPACITIES 2012 INCINERATION Municipal Waste3 Hazardous Waste28 Co-Incineration Cement Kilns5

15. 15 PRICE COMPARISON FOR WASTES DISPOSAL Incineration X Landfilling PRICE MINIMUM / BASIC : EUR /t Hazardous Wastes 350 230 Non- Hazardous Wastes 54 32 No transport, no profit, no operational cost included

16. SELECTED MANAGEMENT COST OF TOWNS (2002-2010) IN CZK/PER./Y. 1 EUR=25.8 CZK YEAR / CZ crowns MIXEDBULKYSEPARATE COLLECT. YARDS BLACK DUMPING OTHERSTOTAL COST 2002298,538,246,051,29,586,1480,2 2003371,837,164,546,89,349,4652,4 2004415,841,975,452,011,852,5687,0 2005429,442,279,954,111,642,4702,1 2006463,245,398,456,211,823,0747,0 2007494,856,9116,465,08,723,4813,0 2008511,149,3121,688,012,520,5865,2 2009521,052,6132,386,211,046,2871,5 2010522,050,1136,289,411,159,4881,9 Total cost of municipal increased in 2002 – 2010 by about 84 %

17. WASTE MANAGEMENT ECONOMICS IN CZ-TOWNS 2010 - CZK / PERSON 1 EUR=25.8 CZK The difference of costs and revenues is about 261.5 CZK, i.e. 30% of the total cost (in 2007 - 30%, year 2008 - 34%, year 2009 - 30%). This difference is paid by the municipality. Citizens TOWN INCOMEfrom TOTAL cost Average town have to PAY citizens tradersraw materials cotta- gers reward EkoKom reward collecti- ve schem total < 500 391,637,938,061,499,414,4642,7887,528% 501-1000 410,638,631,545,393,011,1630,0837,525% 1001-4000 412,447,721,236,495,110,7623,4842,626% 4001-10000 424,552,99,813,9100,811,6613,5910,033% 10001-20000 436,271,229,88,099,24,1648,3976,534% 20001-50000 439,063,135,33,588,23,3632,3874,428% 50001-100000 413,22,019,64,574,52,0515,8872,541% 100 001 -1 mil. 454,65,169,61,3530,7777,632% > 1 mil. 565,81,38,8129,2705,0958,726% TOTAL 446,729,616,626,695,05,9620,4881,930%

18. 18 TREATMENT OF MIXED MUNICIPAL WASTE I Production of mixed municipal waste year / kg / inhabitant The cost of collection and disposal of mixed municipal waste 2010 449 – 645 CZK / inhabitants/year 1 EUR=25.8 CZK 2007216,8 2008199,3-13% 2009220,211% 2010223,3 1,4 %

19. 19 Municipality expenses for landfilling (incl. Fee and tax) – CZK/tonn Municipality expenses for incineration 2007106615% 200811134% 200912109% 201012251% 2007148616% 20081418-5% 200914482% 20101125-22% TREATMENT OF MIXED MUNICIPAL WASTE II 1 EUR=25.8 CZK

20. THE COSTS OF SEPARATE COLLECTION (WITHOUT METALS) 2010 1 EUR=25.8 CZK MunicipalityExpenses CZK/inhab./year Expenses kg/inhab./year < 500 153,131,1 501 - 1000 129,229,0 1001 - 4000 131,030,6 4001 - 10000 116,433,1 10001 - 20000 113,334,0 20001 - 50000 112,932,4 50001 - 100000 110,228,8 100001-1 mil. 86,635,2 > 1 mil. 244,142,6 TOTAL 136,232,0

21. TAKE-BACK NETWORK COVERS ALL TOWNS WITH > 5000 INHABITANTS

22. 22 SURCHARGE WHEN BUYING EEE I Surcharge / EUR HOME ELECTRIC APPLIANCES 8Cooling machines (coolers, fridge) 2.8 Big home appliances (washing machines, dryer, dishwasher, electric stoves and ovens, cookers) 0.5 Medium home appliances (vacuum cleaner, carpet cleaner), hotplate, microwave oven, hood 0.3Tools (drill, saw, grinder, mower) 0.25 Small home appliances (iron, mangle, toaster, deep fryer, mill, coffee machine and opener, electric knife, hair dryer, electric tooth-brash, electric shaving kit, clock, alarm-clock, scale, ventilator)

23. 23 Surcharge / EUR CONSUMER ELECTRONIC Max. 3TV more than 21" (>55 cm) Max. 2.5 Home Cinema (DVD, tuner in „one package“ + set of amplifiers, without TV set) 2 TV up to 21" (<55 cm), DVD, video player and recorders, micro/mini/midi hi-fi components (amplifier, receiver, tuner), SAT and DVBT receiver, data-projectors, electric and electronic musical instruments Max. 1 Camcorder, navigation systems, GPS, portable radiomagnetophone 0.3 Discman, walkman, MP3 players, digital camera, radio- alarm-clock, baby sitter, car loudspeaker 0.1 Analogue camera, headphones, earphones, remote control, microphones, security systems (detector, centrals) SURCHARGE WHEN BUYING EEE II

24. 24 Surcharge / EUR IT AND TELECOMUNICATION Max. 2.5 Monitors > 21“, printers or copy machines or scanners or multi-operating machine > 50 kg, servers or mainframes or other PC > 50 kg Max. 2 Printers or copy machines or scanners or multi-operating machine from 20 to 50 kg 2 Monitors < 21“, notebooks, laptops, printers or copy machines or scanners or multi-operating machine < 20 kg, electric typewriter, phones Max. 1PC (incl. barebones), fax, telefax 0.3Keyboard, notebook, diary, answering machine 0.1 Mobil phones, incl. accessory, telephones, walkie-talkie, calculator, mouse, PC components (hard disc, optic mechanics, disc unit, main board, graphic card, processor, memory, modem, faxmodem, control unit) SURCHARGE WHEN BUYING EEE III

25. 25 CZECH ENVIRONMENTAL INSPECTORATE Established by the Act No. 282/1991 1 headquarters and 10 regional inspectorates 551 employee out of 80 % are inspectors 80 employee are WASTE inspectors www.cizp.cz

26. 26 PENALTY - NON-COMPLIANCE WITH WASTE MEASURES Czech Environmental Inspectorates POWER sets by the most environmental Acts (Waste, Water, EIA, IPPC, Air) Act on Waste Highest penalty up to 50 million CZK ~1 786 000 EUR

27. 27 INSPECTIONS AND LEGALLY APPROVED PENALTIES IN THE PERIOD 1999 – 2008 TOTAL CZK INSPECTIONS NUMBER OF INSPECTIONS TOTAL PENALTIES in MIL. CZK YEAR

28. 28 SGS Czech Republic, s.r.o. K Hájům 1233/2, 155 00 Praha 5, Tel: +420 234 708 111, Fax: +420 234 708 100 www.cz.sgs.com Mr. Jaromír MANHART +420 725 786 420 jaromir.manhart@sgs.com THANK YOU FOR YOUR ATTENTION