The Priority Environmental Investment Programme for SEE (PEIP)

Transcription

1 The Priority Environmental Investment Programme for SEE (PEIP) Analytical Report on progress on developing and implementing environmental investment projects in the SEE. Timescale: Progress until June 2008 Introduction BACKGROUND DOCUMENT NR: 12 Country name: MONTENEGRO The purpose of the analytical report is to present major developments in the countries on creating conditions for implementation of environmental investment projects. It also attempts to track and explain progress on financing these projects. The document is constantly evolving and through it the PEIP team is trying to map drivers and barriers for environmental investments in the SEE countries. It is hoped that eventually it would help countries, IFIs, the EC and other relevant beneficiaries to understand better the underlying factors for accelerating environmental investments in the region. This document accompanies the updated list of projects (background document nr 13). This version of the report is prepared for the Regional Meeting of the PEIP on th June Progress on financing priority projects from PEIP list The PEIP priority list consist of 9 identified priority projects (2 in air, 3 in water and 4 in waste sectors). Since November 2007 there has been progress on developing and/or funding the following projects: Emergency rehabilitation of the existing Podgorica WWTP and construction of a new plant located outside the city area (including the main conveyor from the existing site to the new location) Mojkovac Mining waste disposal site Remediation Closure and remediation of the existing waste disposal site and construction of a new Podgorica landfill along with recycling centre Construction of sewage system in the town of Tivat, and expansion and reconstruction of sewage system in the town of Kotor Construction of new wastewater facility and reconstruction of the existing sewage sistem in Niksic New projects added in November 2007 New regional sanitary landfill for Niksic, Savnik and Pluzine municipalities: 1

2 Total Cost: EUR 3.23 MEUR; not secured: EUR 1.5 MEUR New regional sanitary landfill (RSLF) for Pljevlja and Zabljak municipalities: Total Cost: EUR 2 MEUR; not secured: 1MEUR New RSLF for Berane, Andrijevica, Rozaje and Plav municipalities: Total Cost: 4.84 MEUR; not secured: 4.84 MEUR Construction of waste water treatment plant in Pljevlja: Total Cost: 7.35 MEUR; not secured 7.35 MEUR Proposed new Projects for the June 2008 list update Construction of waste water treatment plant (WWTP) in Podgorica Constriction of waste water treatment plant (WWTP) in Kolasin 2. Legislative framework Since May 2006 (after renewing independence) intensive activities were carried out related to ratification of international conventions in environmental sector. Montenegro became member of large number of multilateral agreements and the process of accession to other agreements is still ongoing. The process of the harmonization of national laws in environmental sector with the relevant EU Directives has been intensified since November 2007 and a set of new laws on EIA and SEA, air quality, waste management, water management, industrial pollution control, chemicals and noise were adopted. Harmonization in these areas will continue through the adoption of secondary legislation and particular attention will be dedicated to areas where the harmonization is still at a low level. Montenegro has numerous obligations to fulfill in the environmental sector in order to achieve compliance with EU acquis. At the same time the country faces extensive institutional, human resources and financial limits on all levels (national and local authorities and municipal communal service enterprises) with regards to implementation of the legislation. Drafting of the new Law on Environment started with an understanding of these limits. The Law is expected to provide legal framework for the establishment of the Environmental Protection Agency and the Environmental Fund (Eco Revolving Fund). This Law will define the role of the Environmental Agency which will include also permit issuing activities, inspection supervision, monitoring and reporting as well. Part of the executive activities in the area of waste management currently performed by the Ministry of environment and tourism will be transferred to the Environmental Agency. With the support of USAID, activities on preparation of the Feasibility Study for the Establishment of the Eco Revolving Fund in Montenegro will be brought to end in the 1st quarter of The Eco Fund will support realization of projects in the area of the environmental protection and communal service activities. Status of Horizontal Legislation Horizontal legislation in Montenegro is covered by the Law on Environment, Law on SEA and the Law on EIA and by a set of regulations. 2

3 Law on Environment is the basic law that regulates environmental sector. New Law on Environment is planned for adoption in the 2nd quarter of Separate chapters on environmental damage liability and sets the ground for the adoption of secondary regulations in this area and full transposing of the relevant EU Directives are included in the draft. From January 2008 Law on SEA and the Law on EIA entered into force. Adopted secondary regulations in the reporting period provided basis for implementation of the Law on EIA and its full harmonization with EU requirements. Air Sector: Status of Legislative Framework Legislation of Montenegro related to air quality is partially harmonized with the EU Directives in this area. Legislative framework consists of Law on the Air Quality, and the Law on Environment. Law on Air Quality, by its structure, represents a framework law that regulates ambient air quality management in accordance with the EU Directive on Ambient Air Quality Assessment and Management. Secondary regulations to be adopted under this law, will also implement other Directives from this area that relate to the control of products, stationary source emissions, mobile source emissions, standards and monitoring of the ambient air quality, reporting and exchange of information. Regulations that relate to the quality of liquid fuels and control of mobile source emissions are under the competence of the Ministry for Economic Development and Ministry of Maritime Affairs, Transportation and Telecommunications. Waste Sector: Status of Legislative Framework Law on Waste Management represents the legislative framework in the waste management area. Law was adopted in 2005 and will be applied from 1 st November The Law provides for adoption of the Republic Waste Management Plan, Municipal waste management plans and waste management plans for enterprises. Republic WM Plan, adopted in February 2008, defines waste management objectives and sets conditions for the rational and sustainable waste management for the period of 5 years. Based on the Republic Waste Management Plan, local self-government units will develop local waste management plans. Law introduces innovations in the waste management practices, as the local governments are obliged to comply with the requirements for selective waste collection, waste disposal on sanitary landfills and waste treatment which is in accordance with the EU standards. Adoption of this law created legal basis for the transfer of the EU legal system in the waste management into national legislation. Montenegro has accessed Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal in 2006 (by succession). Adoption of the law followed by entering into force of Strategic Master plan for Waste management pave the way for developing investment projects related to construction of regional sanitary landfills. Water Sector: Status of Legislative Framework Current Law on Waters regulates the legal status and integrated management of waters, water and shore land and water related facilities, conditions and manner for performing water related activities and other issues important for management of waters and water resources. It has been developed based on the Water Framework Directive. Funds for financing of water management operations will be provided in accordance with the special Law on Financing of Waters which is 3

4 in the drafting phase. Montenegrin legislation will be harmonized in the area of water management with the EU legislation through the adoption of new secondary legislation. 3. Strategies and programmes With the aim to continue alignment with the acquis series of strategic documents, plans or programs have been adopted or brought to a final phase of preparation, including: National Capacity Self-assessment for the Implementation of Global Environmental Conventions (2007); National Strategy for Sustainable Development (document harmonized with UNCSD recommendations and Mediterranean Strategy for Sustainable Development) was adopted in 2007; National Program for the Elimination of Use of Ozone Layer Depleting Substances and the Plan for Phase-out of Chlorofluorocarbons (CFC) in Montenegro (2007); Preliminary steps were also made in the preparation of the National Strategy for the Harmonization of the Environmental Legislation with the EU Law. Proposal of the Law on Environment provides for development of the National Environmental Protection Program for the period of eight years, as well as development of local environmental protection plans that have to be harmonized with the Strategy for Sustainable Development. Process of preparation of local action plans for the environment has been conducted in several municipalities. Strategies in the Waste Sector The key documents that set strategic directions for activities in waste management and provide for integrated regulation are the National Waste Management Policy (adopted in 2004) and Strategic Master Plan for Waste Management on the Republic Level (adopted in 2005). Strategic Master Plan for Waste Management on the Republic Level envisages construction of 7 regional sanitary landfills in Montenegro. By the beginning of 2008 there is only one sanitary landfill functioning, where the waste collected from Podgorica and Danilovgrad is disposed. In the remaining six regional sanitary landfills will be constructed and six intermunicipal enterprises for managing these landfills will be established. Activities on the construction of regional recycling centre on the landfill in Podgorica are under way, with the capacity of 90,000 t/year of mixed municipal waste. Estimated funds for the complete implementation of the Strategic Master Plan amount to MEUR. In , as part of the Strategic Master Plan, the following activities are planned: Construction of remaining six regional landfills and final disposal of communal waste on sanitary landfills; Establishment of inter-municipal system of waste management in the area of waste disposal; Selective waste collection on the place of origin starting in all towns in Montenegro. Implementation of Strategic Master Plan will continue, in particular in the area of development and improvement of the waste management system. Strategies in Water Sector The key strategic documents that provide guidance for the development of water supply and sewage facilities and WWTPs include: 4

5 Master plans for wastewaters drainage and treatment for the Southern, and for the Central and Northern region respectively (2004, 2005); Master plans for water supply (2006); Hindering factors for the implementation of these documents are the insufficient capacity of the human resources, lack of project documentation and limited financial resources. Extensive training is especially needed in relation to preparation of project documentation and after implementation, for the operation of WWTP, as currently there is only one functioning WWTP and thus there is lack of accumulated experience and knowledge. Increasing collection rate, improving metering and billing, extending water supply and sewage facilities especially in rural areas, introduction of realistic tariffs, etc. are among the measures proposed in the strategic documents. In the reporting period progress was made with the implementation of wastewater master plans especially with some of the identified infrastructure projects (e.g. Podgorica WWTP, Plevlja WWTP). 4. Institutional structures Ministry of Tourism and Environmental Protection is in charge of majority of the activities in the area of the Environment. Specific areas are covered by Ministry of Agriculture, Forestry and Water Resource Management, Ministry of Health, Labour and Social Welfare, Ministry of Transportation, Maritime Affairs and Telecommunications and the Ministry for Economic Development. Ministry of Tourism and Environmental Protection is in charge of horizontal legislation. Some responsibilities for implementation of the Law on EIA and Law on SEA have been transferred to local level. There is a need for strengthening of the capacities for the application of these laws on all levels. The key institutions responsible for the implementation of EU IPA programme in Montenegro have been established in the past period. Secretariat for EU Integration, Sector for the EU Association Process acts as National coordinator for IPA funds in Montenegro. It consists of two sectors: Department for Coordination of the Association Process which coordinates international aid to the country, mostly IPA funds; and Department for Translation and Development of the National Version of Acquis, responsible for harmonization of national legislation with acquis and national priorities for integration. Establishment of Environmental Protection Agency is envisaged in the new Law on Environment. The agency will take over executive activities related to environmental protection, including monitoring and reporting, communication, permits issuing and inspection supervision over the application of environmental regulations. The organizational model of the Agency is established within the project Support to the Ministry of Environment of Montenegro financed by the EC. and completed in April In addition, the following documents were also prepared under the project: proposal of the Charter of the Agency, overview of relevant Montenegrin and EU regulations in the area of environment, analysis of institutional capacities included in the environmental management system in Montenegro; human resources and financial requirements of the Agency for the first three years. 5

6 As continuation of these activities, the ongoing project Support to the Development of the Environmental Protection Sector in Montenegro aims at operationalization of the Environmental Protection Agency, provision of training to the staff, as well as preparation of legal and strategic documents necessary for the operation of the agency. Preparatory activities have been completed, as part of the same project, on the establishment of Project Implementation Unit in the area of communal services infrastructure. Establishment of this unit has as a goal strengthening of the institutional capacity of state bodies, units of local self-government and municipal communal service enterprises for the implementation of environmental investment projects set by strategic planning documents including in the area of communal services (water supply, wastewaters and waste) and environment as a whole. Draft Law on Environment sets as well legal framework for the establishment of the Environmental Fund which will support implementation of projects in the communal service activities and environmental protection area. Organization and activities of the Fund will be determined by a special law. Activities for the development of Feasibility Study for the establishment of the Environmental Fund in Montenegro are under way. Considering the challenge with inadequate institutional capacity for the implementation of strategic planning documents the establishment of the Project Implementation Unit (PIU) in the area of communal service activities and environmental protection was approved by the government in December Its main goal will be to provide support to local self-governments for preparation of project documentation, as well as for the possibility to use funds from international organizations and financial institutions. It can be noted that significant activities were undertaken for strengthening of the administrative capacities for the implementation of laws in the environmental sector. The majority of these activities were carried out with international support. Strengthening of capacities of the Ministry of Tourism and Environmental Protection will continue through an increase of the number of the employees and capacity building through trainings. Particular attention will be dedicated to improvement of coordination among various administration bodies considering the fact that the division of competences in the environmental sector has shown to be an obstacle for the development of the efficient management system so far. Institutional framework in the air sector Ministry of Tourism and Environmental Protection is in charge of the policy for air pollution protection. Section for Atmosphere Protection and Radioactivity was established as part of the Department for Environmental Protection. Additionally, Ministry of Health and Social Welfare, Ministry of Maritime Affairs, Transportation and Telecommunications, Ministry for Economic Development, local self-governments as well as institutions such are Hydro-meteorological Institute and Centre for Eco-toxicological Research are also dealing with activities in the air pollution protection. Environmental Protection Agency which is to be established will take over all executive functions in relation to air quality and climate changes. Institutional Framework in the waste sector Ministry of Tourism and Environmental Protection is the main institution responsible for waste management activities in Montenegro. Activities of waste management are also regulated on the local level. Local self-governments are in charge of developing and applying of waste management policy at local level. The activities of collection, transport and disposal of waste are organized within public communal services enterprises. In strengthening of the relevant section within the Ministry of Tourism and Environmental Protection will continue as well as establishment of new structures (e.g. Project 6

7 Implementation Unit will be established), and the functions for permits issuing, inspection supervision, monitoring and reporting will be undertaken by the Environmental Protection Agency. Institutional Framework in the Water Sector At national level the key institution dealing with the water sector is Ministry of Agriculture, Forestry and Water Resource Management (MAFWRM), department for Water Resource Management. Water and waste utilities Under the Law on Municipal Activities municipalities are responsible for communal service provision including water supply, wastewater treatment and disposal, solid waste management. Out of 14 utilities responsible for water and wastewater services, 5 are Vodovod i Kanalizacija companies (ViKs) (Water Supply and Sewarage) which are in charge only of water distribution and wastewater management, and 9 are Communal Enterprises (CEs), which deal with additional responsibilities including maintenance and cleanliness of cities, public green areas and parks, streets, lighting, etc. Although ViKs and CEs are legally independent entities, in practice they have limited autonomy and no control over crucial aspects of their business, such as tariffs, staff hiring and firing, and investments. The ViKs and CEs are controlled by (in ranking order): 1) the Board of Directors (BoD) 2) the corresponding department of the municipality, 3) the Deputy Mayor and 4) the Tax Department of the Ministry of Finance (normal annual financial control). Even though ViKs and CEs are responsible for the implementation of investments, it should be noted that the BoD together with the Municipal Assembly plan the investment projects of the ViK/CE and the Municipality finally approves and provides to the ViK/CE the necessary funding for its investment. Only the ViK in Podgorica is well staffed and has the most technologically advanced sewerage section, including staff who operate the only WWTP currently functional in Montenegro. Low percentage of the staff in most ViKs and CEs has attended a course in the last three years. Capacity building through training financed by international sources is usually provided on a short-term basis and is with a general content. An annual vocational training plan for ViK/CE personnel does not exist. This contributes to limited capacity of ViK/CE to implement Master plan proposals. The exception is Podgorica ViK, which designs and procures sewerage projects and acts as a design center for other ViKs and CEs. Additionally, the poor financial state of the utilities hinders the implementation of investments, and there are no current construction works of considerable size, which are supervised or implemented by ViKs/CEs. There is a general lack of technical and managerial capacity for undertaking large scale projects. In particular, the procurement of WWTPs, which are complex engineering projects with an insignificant history of construction in Montenegro, could not be undertaken by any ViK/CEs without some technical and managerial experience (with the possible exception of Podgorica ViK). Usually the municipality, through its subsidies to a ViK/CE, supports (approves and finances) any infrastructure projects. The municipality deals with the tendering procedures, while ViKs/CEs can undertake some of the construction works. In general, there is no annual investment action plan. Existing infrastructure is not properly maintained which leads to further deterioration. Finally, the introduction of modern information technology (IT) equipment has been slow in nearly all the ViKs and CEs, although some positive steps were undertaken. 7

8 The revenues of ViKs and CEs mainly come from fees and government (central and local) subsidies and. However, funds from central government has been drastically reduced. If loan financing is foreseen to be secured, the municipality must provide a guarantee, as the ViK/CE cannot itself provide the necessary guarantees. Usually investments are funded from the municipal tax (2% of the revenue of each company). Finally, 3% of each bill collected by ViKs/CEs is paid to central government (which goes mainly to the Ministry of Agriculture). The accumulated funds are re-invested in small scale environmental protection projects, usually for small municipalities. There are no standard criteria for spending these funds. Another major obstacle is the huge amount of water consumption per capita, which exceeds the average in the EU. Raising public awareness for reducing the water consumption to reasonable levels is necessary. International organizations are beginning to assist in institutional development, notably USAID, KfW and EBRD. The USAID interventions concerning the Institutions of the north and central regions of Montenegro, involve mainly three projects in two areas: Support for the Municipalities, Public participation (associated with infrastructure) Another significant donor for institutional strengthening is the European Bank for Reconstruction and Development (EBRD) with its Turn-Around Management (TAM) Programme. The EBRD and the United Nations Development Programme together with the support from the EU Phare Programme and other donors, developed the TAM Programme to bring specifically selected, experienced, independent experts to act as senior industrial advisors to managing directors of enterprises in CEE. The cities in the Coastal Region of Montenegro (and Cetinje) operate a regional water authority (PEW). PEW is a public company owned by the state and controlled by the Ministry of environment and tourism. It is so far the only regional authority in Montenegro. Today, in addition to the Regional Water Supply project, PEW is also the implementing agency for the following activities and projects: The feasibility study, the tendering procedure and the supervision of construction of two landfill sites for the disposal of solid waste in the Coastal Region on behalf of the Government and the involved Municipalities (World Bank funding) To assist the ViKs in project formulation for emergency programme for water supply improvements To act as a Project Implementation Unit (PIU) for the Coastal Region for projects financed by international donors. The municipalities and ViKs/CEs in the Coastal Region (Hercog Novi, Kotor, Tivat, Kotor, Budva, Cetinje, Bar, Ulcin) and Cetinje and the government of Montenegro created joint service and coordination company VODACOM, Doo. in order to institutionalize the ongoing rehabilitation process of the municipal water supply and wastewater services. VODACOM will carry out a series of general coordination functions such as planning and optimization of the future development of the water supply and wastewater services, and the monitoring of the billing process and the debt management of the existing ViKs. In addition, 8

9 VODACOM will offer special services that, due to lack of capacity, are currently are either not performed or outsourced at high cost. 5. Financing mechanisms EU IPA Programme in Montenegro Montenegro is eligible for funding under two IPA components: Transitional assistance and Institutions building and Cross-border cooperation. IPA funds to be allocated to Montenegro in according to Multi-Annual Indicative Financial Framework in MEUR: Component Total Transition Assistance and Institution Building Regional and cross-border cooperation Total Municipal infrastructure projects are eligible for financing under IPA Regional and cross-border cooperation component. Within IPA 2008 two environmental projects will be proposed for financing with total budget of 4.5 MEUR. These are: Upgrading of Environmental Infrastructure, Montenegro Support to Environmental Management, Montenegro With regards to recently launched and EU funded Infrastructure Project Facility Montenegro has submitted following projects: Podgorica waste water project Podgorica water infrastructure project WWTP Cetinje WWTP Kolasin Environmental expenditures and domestic sources of environmental financing Domestic sources of environmental financing According to the Law on Environment, environmental protection activities shall be financed from: Government budget revenues; Eco-charges (pollution charges and an investment tax); Funds from the collection of environmental fines prescribed by the Law; Funds from particular sources prescribed by local authorities, subject to Government approval; and Funds from other sources (including foreign assistance). The eco-charges (pollution charges and the investment tax) have to be paid from 2007 into a separate Government (ecological) sub-account, which is administered by the authority responsible for environmental management, the Ministry of Tourism and Environment (MTE). The potential revenues from eco-charges have not been realized, however, because most of the legislated pollution charges have not been implemented or enforced with the exception of the ecotax on fuels and the investment tax. Also, revenues from fines for noncompliance with 9

10 environmental standards are virtually non-existent. As a general rule, revenue raised in the current year is available for spending in the next year. Revenues from policy instruments that have been applied have been relatively moderate, fluctuating around 1 million between 2002 and 2005 In general, more than half of these revenues are accounted for by the investment tax. A considerable increase in these revenues by some 50 per cent to 1.5 million was projected for 2006, reflecting mainly a surge in investment tax revenues on account of the strong rise in construction activity in Montenegro s coastal region. According to the Sector for Environmental Protection within the MTE, the earmarking of these revenues for environmental financing is now well observed. Information on other environmental revenues that are earmarked for environmental spending is not collected systematically at the MTE. Fees for natural resource use amounted to some 2.5 million during the first nine months of 2006, but details are not available. It has also not been possible to compile data for previous years. There is no systematic collection of information on user charges for waste collection and disposal, and for wastewater discharges paid by households and companies at the local government level. Water supply and wastewater charges amounted to 30 million in 2005, but separate data for revenues from wastewater charges are not available. Domestically-financed environmental expenditures The Law on Environment lists a number of broad environmental activities that can be financed or at least co-financed with public revenue. Between 2002 and 2006, a large bulk of the expenditure administered at national level was in the area of solid waste management. There is no statistical information reported on aggregate annual operational and capital expenditures by public utility companies for waste and wastewater management nor is there any on the extent of financial support from the central and local government budgets. The Sector for Municipal and Housing Matters within the Ministry for Economic Development is elaborating the possibility of introducing a revolving fund for financing of environmental investment projects at the municipal level by public utilities. This would be mainly soft loans that, after repayment, would be available for financing other projects. A feasibility study is currently being carried out with the support of the United States Agency for International Development (USAID). Establishment of the Environmental Fund is expected to become operational during 2008, pending the adoption of a corresponding law by the Parliament. The Fund will be set up as an independent legal entity, but its overall human and financial resource endowments remain to be decided. The Fund s activities are expected to cover all main environmental sectors, including the promotion of environmental education and research, and the use of renewable energy sources. Financial resources will be provided by the Fund in the form of grants, subsidies and soft loans. The Fund is intended to mediate the use of resources provided by the Government, and possibly by international organizations and financial institutions. The draft Law indicates the following sources of revenue for financing the activities of the Fund: Air emission charges for main pollutants; Tax on motor fuels of fossil origin, ozone depleting substances and plastic bags; Tax on hazardous waste production and disposal; Revenues from privatization that are earmarked for environmental protection; Annual eco-tax on use of motor vehicles (which would replace the current 10 per cent surcharge on the road user fee); Domestic and foreign grants and loans; Income from financial investments made by the Fund; and Funds collected from the imposition of environmental fines. 10

11 The main motivation for the establishment of the Fund is to secure more resources for environmental protection and to avoid funds earmarked in the State budget for environmental financing being used for other purposes, as has happened frequently in the past. There are also no data reported on private sector Pollution Abatement and Control (PAC) expenditures, which appear, in any case, to be quite limited. The limited domestic funds that have been allocated so far for the financing of environmental protection measures are in sharp contrast to the considerable long-term investment requirements, which amount to more than 600 million and are detailed in a number of strategic documents: The Strategic Master Plan for Solid Waste Management: 62 million over the period 2005 to 2009; The Wastewater Feasibility Study for the Coastal Region and the Cetinje Municipality: 281million for 2004 to 2028, of which 28 million is for 2004 to 2008; The Draft Strategic Master Plan for Sewerage and Treatment of Wastewater for Central and Northern Montenegro: 279 million over the period 2005 to 2029, of which 81 million is for 2005 to 2009; In 2008, funds from the state capital budget is provided for environmental projects within the communal sector, in total 2,345 MEUR : 1,545 MEUR for the sanitary landfills 0,8 MEUR for the waste water treatment facilities Concerning the priorities of IFIs, it could be concluded, that there is no overlapping in providing financial assistance and that there is a strong cooperation of donor community in Montenegro. For projects in the sector of water supply, waste and waste water, funds are secured mostly through WB, EIB, KfW and EBRD. 6. Relevant projects The EU is financing a project carried out by the EAR, for establishing the Environmental Protection Agency (EPA) and capacity building for its staff, as well as for drafting new legislation and Strategy for approximation of EU legislation. The Montenegro Environmentally Sensitive Tourist Areas Project (total project costs of USD 9.5 million) is strongly supported by the World Bank. The project aims to establish environmentally- and economically-sustainable solid waste collection and disposal services in the coastal municipalities. The costal municipalities are implementing the project for water supply and management of waste water (KfW EUR 10 MEUR loan (water supply + 2,5MEUR grant (sewage Tivat ). Project on waste water management in Montenegro supported by the EIB in total amount of 57 MEUR (contract signed in June 2008) Project supported by Austrian Development Agency (ADA) for sewage system for Municipality of Kotor 1,5 MEUR. Project will be finalized till July 2008 Project on sanation of pumping stations in Bar, Ulcinj, Herceg Novi and Budva (supported by EAR, total amount of 1,1 MEUR) 11

12 New Project on waste water management in Montenegro is in preparation. Contract signed November 2007 for 32 MEUR, for the next 5 years. First phase started in March 2008 (duration 7 months). 7. Key challenges for the next 6 months Further harmonization of the national legislation with the EU environmental acquis will continue in the next reporting period. Detailed list of laws and regulations that are to be adopted is presented in Annex 1. Draft National Programme for Integration of Montenegro into EU for is under public hearing procedure and pending adoption. It includes chapter on environment (covering issues like horizontal legislation, air quality and climate change, waste management, water management, etc.) Short-term priorities in the air quality area primarily relate to the creation of conditions for the implementation of the Law on Air Quality i.e. to the adoption of secondary regulations as well as on the realization of activities connected with the adoption of strategic documents and implementation of ratified international conventions connected with this area. Annexes: Annex 1: Harmonization of the legislative framework in Montenegro with EU environmental acquis 12

13 Annex 1: Harmonization of the legislative framework in Montenegro with EU environmental acquis Horizontal legislation; Pending adoption of laws till end 2008: Law on the Ratification of the Espoo Convention on EIA in a Transboundary Context (3 rd quarter); Law on Environment (2 nd quarter); Law on the Ratification of the Protocol on Strategic Environmental Impact Assessment (4 th quarter); Law on the Ratification of the Aarhus Convention on Access to Environmental Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters (4 th quarter); Law on Establishment of the Environmental Fund (4 th quarter); National Environmental Protection Policies (4 th quarter). Pending adoption of regulations in 2009: National strategies for the harmonization of regulations in the environmental protection area with the EU Law, including implementation plans for Directives which demand more financial resources (3rd quarter of 2009); National Ecologic Action Plan (4th quarter of 2009); National strategies for the implementation of the Aarhus Convention (4th quarter of 2009); National lists of indicators for the environment (4th quarter of 2009); Secondary regulations related to the liability for the environmental damage with the objective to be harmonized with the Directive 2004/35/EC (4th quarter of 2009); Decree on the establishment of the State network for the monitoring of the state of the environment (4th quarter 2009); Decree on the establishment of the Environmental Protection Information System (4th quarter 2009). Air Sector: planned development and adoption of regulations in 2008 Changes and additions to the Law on Air Quality in accordance with the requirements of the new EU Directive on Ambient Air Quality and Cleaner Air for Europe, (3rd quarter); National Plan for the Stockholm Convention Implementation, (2nd quarter); Decree on Determining Sites for the State Network Measurement Locations for permanent monitoring of the air quality that will be harmonized with the requirements of the Directive 31996L0062, (3rd quarter); Decree on the Establishment of the Types of Pollutants and Air Quality Ceilings for every type of Pollutant, in accordance with the requirements of the respective EU Directives (2nd quarter); Air Quality Measurement Program in the State network for the permanent monitoring of the air quality, 4th quarter; Decree on Ozone Layer Depleting Substances in accordance with the Montreal Protocol, 3 rd quarter; Decree on the Ozone in the Air, 2nd quarter; 13

14 Rulebook on the Air Quality Monitoring, 3rd quarter; Planned activities: Waste sector: pending adoption of secondary legislation in 2008 and 2009: Implementation of the Plan for Phase-out of Chlorofluorocarbons (CFC) in Montenegro in the period ; Realization of the Program of Institutional Strengthening for the Implementation of the Montreal Protocol in the period Rulebook on Landfills (specifying characteristics of location, construction requirements, sanitary and technical requirements, operation and closure of landfills for nonhazardous and inert waste (2 nd quarter of 2008); Rulebook on Types and Waste Test Methods (containing catalogue of waste) (2nd quarter of 2008); Rulebook on Requirements regarding Equipment and Personnel for Performance of Business Activity of Waste Processing or Disposal (4th quarter of 2008); Rulebook on Mandatory Requirements for Assets and Equipment Used for Collection or Transport of Hazardous Waste (4th quarter of 2008); Rulebook on List of Waste that could be Ceded to Physical and Legal Persons for Reuse and Recycling (4th quarter of 2008); Rulebook on Content of Labels for Products Containing Hazardous Substances (4th quarter of 2008); Rulebook on Content, Form and Manner of Filling-up Waste Records (4th quarter of 2008); Rulebook on Content and Manner of Keeping Registry of Data on Waste Management, Issued Permits and Form of the Aggregate Report (4th quarter of 2008); Rulebook on Types of Waste and Requirements of Accepting Waste on the Landfill (4th quarter of 2008); Rulebook on Classification of Waste and Content of Documentation Being Submitted with the Request for Issuing Permit for Import, Export and Transit of Waste (4th quarter of 2008); Rulebook on Content, Form and Manner of Keeping Registry of Issued Permits for Transboundary Movements of Waste (4th quarter 2008); Decree on Amounts of Fees and Payment for Waste Management (4th quarter of 2008). The following Directives will be transposed into the legislative system of Montenegro for the area of waste management by the adoption of these rulebooks: Directive 32006L0012 on Waste, replacing Directive 31975L0442 and its amendments; Directive 31991L0689 on Hazardous Waste amended by the Directive 31994L0031; Directive 31999L0031 on the Landfill of Waste; Council Regulation (EEC) 259/93 on the Supervision and Control of Shipment of Waste within, into and out of the 14

15 Water sector: pending adoption of legislation European Community; Regulation (EC) 1013/2006 of the European Parliament and of the Council on Shipments of Waste; Decision 32000D0532 replacing Decision 31994D0003 establishing a List of Wastes pursuant to Article 1(a) of Council Directive 31975L0442 on Waste and Council Decision 31994D0904 establishing a List of Hazardous Waste pursuant to Article 1(4) of the Council Directive 31991L0689 on Hazardous Waste. Adoption of the Law on Financing of Waters is planned for the 2nd quarter of Secondary regulations arising from the Law on Waters, which need to be adopted in the coming period, are the following: Rulebook on Structure and Content of the Waters Infrastructure (2009, 2nd quarter); Rulebook on Certification of Water Facilities (2009, 2nd quarter); Rulebook on Manner and Proceedings in Measuring Water Quantities in the Water Capture (2009, 2nd quarter); Rulebook on Manner of Determining Guaranteed Minimum (2009, 2nd quarter); Rulebook on Manner of Determining and Maintaining of Sanitary Protective Zones and Belts of Water Sources and Restrictions in those Zones (2009, 2nd quarter); Rulebook on Mandatory Requirements for Exploitation of Alluviums for the Business Organization (2009, 2nd quarter); Rulebook on Quality and Sanitary and Technical Requirements for Discharge of Wastewaters in Recipients and Public Sewage (2009, 2nd quarter); Rulebook on Requirements to be met by a Business Organization or Public Enterprise engaged in Management of Facilities for Protection of Water against Pollution (2009, 2nd quarter); Rulebook on Manner and Procedure of Testing Wastewaters Quality (2009, 2nd quarter); Rulebook on Manner and Conditions for Measuring Quality of Wastewaters Discharged in Recipient (2009, 2nd quarter); Strategies to be adopted Water Resource Base (2011, 2nd quarter); Water Management Plans in the River Drainage Basin Water Area or on its Part (2012, 4 th quarter); Program for every Water Area (2012, 4th quarter); Program of Water Pollution Prevention (2012, 4th quarter); General Protection Plan against Harmful Water Effect for Waters of Significance for Montenegro (2012, 4th quarter); Operational Plan of Water Protection from the Average Water Pollution for Waters of Significance for Montenegro (2010, 2nd quarter). 15