Implementation of waste and
water infrastructure projects
financed by EU in Lithuania
Dainius Kazlauskas
ENVIRONMENTAL PROJECTS MANAGEMENT AGENCY
UNDER THE MINISTRY OF ENVIRONMENT OF THE REPUBLIC OF LITHUANIA
1 December 2011, Vilnius
ADMINISTRATION SCHEME OF EU 2007-2013 PERIOD STRUCTURAL FUNDS IN
LITHUANIA
Government of the Republic of Lithuania
Confirms legislations, composes monitoring committee
MINISTRY OF
ENVIROONMENT
Monitoring Committee for
Operational Programms
Preparation of regulations,
plans and implements
tools, charts list of
environmental projects,
financed from Cohesion
fund
Analyses progress and submits
proposals
REGIONAL
DEVELOPMENT
COUNCILS
Managing Committee for
Operational Programmes
Analyses problems of planning and
implementation
Public procurement office
European Commission
MINISTRY OF FINANCES
 Coordinating Institution (coordinate EU
support planning and usage, strategy,
implementation of management strategy)
 Managing Authority (administrates
operational program, response for it’s
implementation)
 Certifying Authority (confirms and send
expenditure report to EC)
 Paying Authority (manages finance
accounting)
BENEFICIARIES
Audit
Authority
State
Control
Implementing agency
Environmental projects management agency:
• Established in February 2002 by the Ministry of Environment of the
Republic of Lithuania;
• Staff – 82 Employees;
• Implementing environmental projects, financed by:

ISPA fund;

Single Programming Document for 2004-2006;

Cohesion fund for period 2004-2006;

Structural assistance2007-2013 period;

LIFE +.
Responsibilities
•
•
•
•
•
•
•
Organization of invitation to submit applications for EU finansation;
Evaluation of applications;
Signature of administrational and finansation agreement;
Preservation of public procurement procedures;
Physical and financial administration of project implementation;
Un-spot checks;
Audit after project implementation.
Support from EU in Environment sector
• Instrument for Structural Policies for Pre-Accession (ISPA) (now part
of IPA)/Cohesion fund;
Lithuania implements / implemented 11 projects in waste and 16 in water
sectors financed by the Cohesion Fund and ISPA.
• EU 2007-2013 Cohesion Promotion Operational Program;
Lithuania implements 29 projects in waste and 143 in water sectors (including
sludge management projects) financed by EU 2007-2013 Cohesion fund.
EU 2007-2013 cohesion promotion operational program.
Environment and sustainable development
I. Renovation and development of water supply and waste water treatment
Modernization and development of water supply and waste water treatment
infrastructure according to EU environmental requirements. Development of
sludge treatment infrastructure.
II. Establishment and development of waste treatment system
• No land filling will take place in non-complying landfills after 16 July 2009;
• Landfill Directive (1999/31/EC) (for Lithuania) requires phased reduction in
the total quantity of biodegradable municipal waste sent to landfills (a
reduction to 75% of 2000 levels by 2010, to 50% by 2013, and to 35% by
2020).
Wastewater treatment changes in 2000-2009 period,
mln of m3 (discharge to surface waters)
160
140
120
100
80
60
40
20
0
2000
2001
2002
in complience with standarts
2003
2004
2005
2006
2007
Treated but not in complience with standarts
2008
2009
Not treated
7
Water sector investments, mln. EU
2000-2006:
-planed financing sources:
Cohesion fund - 85 %; LT budget-15
%, beneficiary-0 %;
-real financing sources:
Cohesion fund-64,9 %; LT budget30,1 %, beneficiary-5 %;
2007-2013:
-planning financing sources:
Cohesion fund-85 %; LT budget-10
%, beneficiary-5 % (plus net
income).
800
700
600
500
400
300
200
100
0
EU funds
LT budget
Beneficiary
Total
2000-2006 2007-2013
8
Drinking water supply and waste-water treatment
strategy on 2008-2015
Criterion of strategic objective in
2015:
• Availability to get public drinking
water and discharge waste water to
collecting systems 95 % in 2015.
2015
2007
0
20
40
60
80
100
Waste-water discharge to collecting systems availability
Public supplied drinking water availability
9
Financing directions, mln. EU
600
500
400
300
2000-2006
2007-2013
200
100
0
W&WW
networks
WWT plants WT plants
SST plants
Total
10
What we have done or will do?
Period
WW networks, km
WS networks, km
new
Ren./rec.
new
Ren./rec.
UWWTP
Ren./rec.
units
WTP
(Ren./rec.
units
SST plants
2000-2006
795
89
601
140
47
17
0
2007-2013
871
23
595
25
37
6
23
Total
1666
112
1196
165
84
23
23
11
Waste sector investments
• Total investment 2000-2006 financing period – 190 mln EUR;
• Total investment 2007-2013 financing period – 257 mln EUR;
37 mln EUR
9 mln EUR
211 mln EUR
EU funds
LTU Budget
Beneficiary
Waste management till 2004
• 790 dumpsites;
• 60 municipal
landfills;
Waste management 2011
•
•
•
•
11 landfills;
69 bulky waste sites;
13 composting sites;
11 MBT plants.
Lithuanian perspective 2013
900
2001
2009
2013
850
800
700
600
500
384
400
300
200
69
49
40
100
11
0
0
13
0
0
11
0
Landfills
Bulky waste sites
Green Composting
sites
MBT/Incenertaion
Regional waste management system
• Geographically waste management systems
covers county area;
• In the year 2002-2004 10 regional waste
management centers (RWMC) were
established;
• RWMC acts on status of JSC or Public
organization;
• The percent of finances part in RWMC is
proportional to municipalities size;
• RWMC is managed by managing board, that consist of representatives
from municipalities (1 member from 1 municipality).
2000-2006
2007-2013
Centralized (Agency)
Decentralized (Beneficiaries or
municipalities staff, but under
control of Agency)
Financing
agreement
signed
European commissionAgencyBeneficiaries
Agency-Beneficiary
Number of
projects
27
172
Projects
grouping
Procurements
2000-2004 Project’s timetable
Submission
of
application
to EC
Signature of
financing
agreement
2001
2002
Design
phase
Execution of
works
Procurement
phase
2004
2005
Finalization
2008
Total – 7 years
Main challenges in EU 2000-2006 financing period
Design stage:
•In the very beginning of a project no concrete places for project component
was foreseen, long territorial planning, future environmental damage
prevention procedures;
•Local designers had no experience in landfill and WWP design procedures,
international designers – no experience and understanding in local low and
rules;
•Confrontation from local inhabitants;
•Long procurement procedures regarding PRAG requirements;
•Lac of experience in all levels (municipal staff, beneficiaries).
Due to all these reasons design face took more the 3 years, and it was high
risk do not fulfill N+2 rule.
Main challenges in EU 2000-2006 financing period
Construction stage:
•Long procurement procedures regarding National procurement low
requirements;
•Lak of money due to the high construction work costs (period 2006-2007);
•Construction contracts were based on FIDIC rules, that was new for all
Contract sides;
•Contracts were sign from 3 sides (Final Beneficieries, Contractor and
Contracting Authority). It programmed some disagreements in contract
management;
•Lac of experience in technical supervisor and Final Beneficieries staff;
•Mistakes in design project that caused a lot off changes during execution of
construction works.
Main challenges in EU 2000-2006 financing period
Finalization stage:
• Bad quality of feasibility studies, applications;
• Too detail specification of physical indicators;
• Implementation of projects indicators (connection rates, increase waste
collection level and etc.);
• Mistakes in technical projects;
• Suggested Financial corrections from state control:
 EU visibility requirements;
 Variation orders;
 Public procurement procedures.
• Different interpretation of the same situation, changes of human resources
in all levels;
• Preparation and approval of final report.
Main challenges in EU 2007-2013 financing period
Project preparation stage:
• Late approval of legal acts regarding EU 2007-2013 funds management;
• Low quality of applications;
• Low quality of technical projects;
• In the very beginning of a project implementation, no concrete places for
project component was foreseen, long territorial planning, future
environmental damage prevention procedures;
• Confrontation from local inhabitants;
• Procurement procedures were not provided till submission of application.
Main challenges in EU 2007-2013 financing period
Project implementation stage:
• Low quality of tender documentation:
 Agency had prepared the typical tender documentation for works,
supplies and services procedures;
 Recommendations for preparation of tender documentation for MBT
facilities;
 Involvement of international experts;
• Long procurement procedures:
 Agency is using selection methodology for procurement procedures
control;
 The methodology of adopting financial corrections was approved by
Ministry of Environment;
Main challenges in EU 2007-2013 financing period
Project implementation stage:
• To high or to low construction costs:
 The methodology of additional financing scemes was approved by the
Ministry of Environment;
• Court cases regarding public procurement procedures.
• Complicated and slow implementation of projects:
 Agency is using selection methodology for payment application control;
 The methodology of adopting financial corrections was approved by the
order of the Ministry of Environment;
 Usage of IT systems for submitting and confirmation of payments
applications.
Lessons learned
2004-2006 period planning weakness:
 Long time to make decisions in any changes of project;
 Lack of responsibility of beneficiary and local authority;
 Large-scale project cause high qualification requirements (less
suppliers);
 Lack of urban planning documents and property deeds;
 Overloaded design companies;
 Lack of money to finish projects due to increased mconstruction works
cost.
Lessons learned
2007-2013 period planning :






Projects managing become more flexible;
Shorten project implementation;
Direct responsibility for beneficiaries;
Grow up the number of qualified suppliers;
Unfortunately, grow up litigation on procurement stage;
But, the cost of construction works stabilized.
Thank You for attention!
E-mail: dainius.kazlauskas@apva.lt