1. Phare 2003 Sector: Economic and Social Cohesion Title: Water Supply and sewerage in tourism and resort settlements

2. Background and Justification:  Problematic economic development in Municipalities without adequate water supply and waste water treatment   NO MONEY for investments in water supply and sewage infrastructure in smaller municipalities   Water quality does not meet the standards, and this strongly affected the number of tourists   The NEDP has defined tourism as very important priority sector for the national economy and job generating activity

3. WE WANT YO ACHIEVE: Overall objective: Reduce regional disparities through enhancing the potential of the tourism sector, and provide business opportunities and higher incomes to the local population Project purpose: The project aims to improve water supply and sewage networks in areas with existing and potential tourism development and concentrations of SMEs

4. Results: Phase 1:  A set of documents needed for the effective launch and implementation of the water supply investment scheme is prepared;  Extensive consultation process involving all interested parties, both at central and regional level is conducted;  Actors on national and regional level gained understanding and capacity for preparing and using water supply investment schemes according to Phare rules and procedures.

5. Results: Phase 2:  The successful implementation of some 25+ grants within the project scheme that address the water supply and sewage treatment needs of tourism sites by providing  Modern water supply systems at sites of tourist interest or concentrations of SMEs from other sectors  Improved sewage drainage network

6. Activities: Technical Assistance module - undertaking of technical feasibility studies, environmental impact assessments, detailed technical designs and procurement documentation for some 25+ specific water supply projects. Investment scheme  Rehabilitation of existing water supply and sewage networks;  Reconstruction of water supply and sewage networks;  New construction of additional water sources.

7. Institutional framework At national level – MRDPW, Ministry of Environment and Waters, Ministry of Agriculture and Forestry and Ministry of Economy, national presented NGOs in the field of tourism and SME development; At the regional and the municipal level are the District Governors, the Local Government Administrations, Regional/ Local Associations and various regional and local cultural and ecological organisations, as well as the social partners at central and local level.

8. Objectively verifiable indicators :  Yearly regional GDP rates;  Number of tourists per month;  Municipal incomes;  Provision of reliable water supply, which should meet the national standard per person per day;  Eliminated water losses in project areas;  Quantity of water supply (I)  Quantity of new or renewed water pipes laid and associated equipment installed (I)  Quantity of new sewage pipes laid (I)  Regional Statistics indexes improved (income, employment, etc.)  Works contract;  Supervision contract;

9. Money and Time Total Phare (=I+IB) - 13.350 M€ National Co-financing - 4.450 M€ TOTAL Budget - 17.800 M€ Start of Tendering/Call for Proposals: January - June 2007 Start of Project Activity: September 2007 Project Completion: September 2009