Environmental assessment

Transcription

1 European Regional Development Fund We invest in your future Project Performance of assessments related with the preparation of Operational programme for regional development The project is funded by the European Regional Development Fund and the state budget of the Republic of Bulgaria Operational programme Regional development Environmental assessment of Operational Programme Regions in Growth (Revised under Decision I-3/2013 of the Supreme Environmental Expert Council of the Ministry of Environment and Water) Non-technical summary SOFIA, DECEMBER 2013 Bulgaria, Sofia 1784, Mihail Tenev Str. 12, Business centre Evrotur floor 6, office 22, VAT number: BG , Tel: , , Fax: , admin@povvik.com,

2 growth (OPRG) Non-technical Summary CONTENTS 1 DESCRIPTION OF THE CONTENTS OF THE MAIN OBJECTIVES OF OPERATIONAL PROGRAMME REGIONS IN GROWTH AND ITS RELATEDNESS WITH OTHER CORRESPONDING PLANS AND PROGRAMMES MAIN OBJECTIVES OF OPERATIONAL PROGRAMME REGIONS IN GROWTH CONTENTS OF OPRG COMPLIANCE OF OPERATIONAL PROGRAMME REGIONS IN GROWTH WITH OTHER CORRESPONDING PLANS AND PROGRAMMES CURRENT CONDITION OF THE ENVIRONMENTAL COMPONENTS AND THEIR POSSIBLE DEVELOPMENT WITHOUT THE IMPLEMENTATION OF OPRG THE CURRENT CONDITION OF THE ENVIRONMENTAL CONDITION ENVIRONMENTAL DEVELOPMENT WITHOUT THE IMPLEMENTATION OF OPRG ENVIRONMENTAL CHARACTERISTICS IN VIEW OF THE AREAS THAT COULD BE SIGNIFICANTLY IMPACTED AREAS RELATED TO WATER PRESERVATION AREAS RELATED TO THE BIODIVERSITY PRESERVATION AREAS RELATED TO THE CULTURAL HERITAGE PRESERVATION CURRENT ENVIRONMENTAL ISSUES THAT ARE RELATED TO OPERATIONAL PROGRAMME REGIONS IN GROWTH CLIMATE AND AIR WATER Surface water Groundwater SOILS LANDSCAPE BIODIVERSITY, FLORA AND FAUNA CULTURAL HERITAGE WASTE RISKY ENERGY SOURCES TANGIBLE ASSETS POPULATION AND HUMAN HEALTH THE OBJECTIVES OF ENVIRONMENTAL PROTECTION AND NATIONAL AND INTERNATIONAL LEVEL THAT ARE RELATED TO OPRG AND THE MANNER IN WHICH THESE OBJECTIVES AND ALL ENVIRONMENTAL EQUIPMENTS WERE TAKEN INTO ACCOUNT DURING THE PROGRAMME PREPARATION OBJECTIVES OF THE ENVIRONMENTAL PROTECTION AT NATIONAL LEVEL ENVIRONMENTAL PROTECTION OBJECTIVES AT EUROPEAN LEVEL ENVIRONMENTAL PROTECTION OBJECTIVES AT INTERNATIONAL LEVEL POSSIBLE SIGNIFICANT ENVIRONMENTAL IMPACTS INCLUDING BIODIVERSITY, POPULATION, HUMAN HEALTH, FAUNA, FLORA, SOILS, WATER, AIR, CLIMATE FACTORS, TANGIBLE ASSETS, CULTURAL AND HISTORICAL HERITAGE, LANDSCAPE AND THE CONNECTIONS BETWEEN THEM ENVIRONMENTAL IMPACT OF OPRD IMPACT OF THE DRAFT OPRG AT THE PRIORITY AXES AND SUB-PRIORITIES LEVEL IMPACT OF THE DRAFT OF THE OPRG AT THE LEVEL OF ACTIVITIES THAT ARE ELIGIBLE FOR FUNDING TRANSBOUNDARY IMPACTS CONCLUSIONS ON THE IMPACT OF OPRG ON ENVIRONMENT AND HUMAN HEALTH MEASURES FOR PREVENTING, MITIGATING AND COUNTERVAILING THE UNFAVOURABLE CONSEQUENCES FROM THE OPRG IMPLEMENTATION ON ENVIRONMENT AS MUCH AS POSSIBLE Prepared by POVVIK December, 2013 ii

3 growth (OPRG) Non-technical Summary 7.1 MEASURES FOR PREVENTING, MITIGATING AND COUNTERVAILING THE UNFAVOURABLE CONSEQUENCES AS MUCH AS POSSIBLE THAT SHOULD BE REFLECTED IN THE FINAL VERSION OF THE OPRG MEASURES FOR PREVENTING, MITIGATING AND COUNTERVAILING THE UNFAVOURABLE CONSEQUENCES OF THE OPRG IMPLEMENTATION AS MUCH AS POSSIBLE DESCRIPTION OF THE MOTIVES FOR SELECTING THE REVIEWED ALTERNATIVES AND THE METHODS FOR THE ENVIRONMENTAL ASSESSMENT PERFORMANCE, INCLUDING THE DIFFICULTIES THAT WERE ENCOUNTERED DURING THE COLLECTION OF THE NECESSARY INFORMATION, SUCH AS TECHNICAL FAULTS AND NO KNOW-HOW MOTIVES FOR THE SELECTION OF THE REVIEWED ALTERNATIVES METHODS FOR PERFORMANCE OF ENVIRONMENTAL ASSESSMENT DIFFICULTIES THAT WERE ENCOUNTERED DURING THE COLLECTION OF THE NECESSARY INFORMATION DESCRIPTION OF THE NECESSARY MEASURES IN RELATION WITH THE MONITORING DURING THE IMPLEMENTATION OF OPRG CONCLUSION APPENDICES TO THE NON-TECHNICAL SUMMARY OF THE ENVIRONMENTAL ASSESSMENT APPENDIX 1 MAP OF THE CITIES TO BE SUPPORTED THAT ARE INCLUDED IN OPRG APPENDIX 2 LIST OF THE CITIES THAT ARE DIRECT BENEFICIARIES UPON PRIORITY AXIS 1 SUSTAINABLE AND INTEGRATED URBAN DEVELOPMENT OF OPERATIONAL PROGRAMME REGIONS IN GROWTH FOR THE PERIOD Prepared by POVVIK December, 2013 iii

4 List of the used abbreviations UDIRPD Updated document for the implementation of the Regional plan for the development AMS Automated measuring station BAS Bulgarian Academy of Sciences GDP Gross Domestic Product BD DR Basin Directorate Danubian region BD WAR Basin Directorate Western Aegean region BD EAR Basin Directorate Eastern Aegean region BD BSR Basin Directorate Black sea region BOD 5 Biochemical oxygen demand RES Renewable energy sources WPP Water power plant RS Renewable sources WSS Water-supply and sewage EAR Environmental assessment report MCH Movable cultural heritage MCV Movable cultural value DNCS Directorate for national construction supervision DAOS systems Differential Optical Automated Atom-Absorption Spectrophotometry for air quality control EC European Commission EA Environmental assessment EU European Union EFF European Fisheries Fund ERDF European Regional Development Fund PS Protected site ENPA Environmental Noise Protection Act CHA Cultural heritage act EPA Environmental Protection Act PA Protected area TAA Territorial arrangement act EEA Executive Environment Agency ED Executive department Prepared by POVVIK December, 2013 iv

5 UAA ICOMOS IPURD AQ CHH CH CRW FMP STTR MAC MH MAF MC MEW MRD CM NDA NRECP NIICH R&D ICH Utilized agricultural area International Council on Monuments and Sites Integrated Plans for Urban Regeneration and Development Air quality Cultural historical heritage Cultural heritage Conservation and restoration works Ferrous metals plant Short-term target rate Maximum admissible concentration Ministry of health Ministry of agriculture and food Ministry of culture Ministry of environment and water Ministry of regional development Council of Ministers National documentary archive of cultural heritage National report on the environmental condition and protection National institute of immovable cultural heritage R&D activity Immovable cultural heritage NSDC National Spatial Development Concept for the period ICV NP NAPERS NAPEH NPRRBRB Immovable cultural value National park National action plan for energy of renewable energy sources National action programme for environment and health National programme for the renewal of residential buildings in the Republic of Bulgaria NPD BG National programme for development: Bulgaria 2020 NDP NRP NPWAM NSI NSEM National development plan National reform programme National programme for waste activities management National statistical institute National system for environment monitoring Prepared by POVVIK December, 2013 v

6 NPPS National Plant Protection Service NSRD National strategy for regional development NSWSMD National strategy for water sector management and development NSTSD National strategy for tourism sustainable development OIP Ornithologically important place EIA Environmental impact assessment OP Operational programme OPE Operational programme Environment OPRG Operational programme Regions in growth GAP General arrangement plan LZP Lead and zinc plant PAH Polycyclic aromatic hydrocarbons PAFR Preliminary assessments of the flood risk UNEP UN Environment Programme NP Natural park MR Maintained reserve RDP Regional development plan TV Threshold value DWTP Drinking water treatment plant TV for AHC Threshold value for admissible average 24-hour concentration EMEPA Enterprise for managing the environmental protection activities DAP Detailed arrangement plan RBMP River basin management plan PMFR Plan for management of flood risks RDNCC Regional directorate for national construction control RHI Regional health inspectorate RHM Regional historical museum RIEW Regional inspectorates of environment and water DCM Decision of the Council of Ministers RAQAM Regions for air quality assessment and management RDP Regional development plan AAR Average annual rate ADR Average daily rate NWR North-Western Region Prepared by POVVIK December, 2013 vi

7 NER North-Eastern Region SPA Sanitary-protected area CSGC Community strategic guidelines for cohesion SRN Specific rules and norms MWWTP Municipal wastewater treatment plants RDC Regional development council SF Structural funds AHR Average hourly rate NCR North Central Region SNM Strategic noise maps TIC Tourist information centre MA Managing authority PM Particulate matter COD Chemical oxygen demand RBB Red book of Bulgaria SWR South-Western Region SER South-Eastern Region SCR South Central Region NUTS Nomenclature of territorial units for statistics TEN-T network Trans-European transport network Prepared by POVVIK December, 2013 vii

8 1 Description of the contents of the main objectives of Operational Programme Regions in growth and its relatedness with other corresponding plans and programmes 1.1 Main objectives of Operational Programme Regions in Growth Pursuant to Article 2 b) of Council of Ministers Decision (CMD) 328 of 25/04/2012 on approving a list of thematic objectives to be included in the Partnership Agreement of the Republic of Bulgaria for the programming period, a list of programmes and the leading authority in the development of each programme, the Ministry of Regional Development (MRD) was nominated as the leading institution concerning the preparation of the regional development operational programme for the period , whose appellation is Operational Programme Regions in Growth (OPRG). The directorate in charge in the framework of the MRD concerning the preparation of OPRG is Directorate General Programming of regional development according to article 30, paragraph 1, point 2 of the Rules of Organization of the MRD. For the preparation of the operational programme we relied on the experience accumulated by the Directorate in the fields of programming, managing and implementing Operational Programme Regional Development in its capacity of Managing Authority. In its role of integrated regional development programme, OPRG will assist in achieving the following thematic objectives via the implementation of the particular investment priorities, according to article 5 of the European Regional Development Fund as follows: Thematic objective 4. Supporting the shift to a low-carbon economy in all sectors with the following investment priorities: c) Supporting the energy efficiency, smart energy management and renewable energy use in the public infrastructure, including in public buildings and in the housing sector; e) Promoting low carbon strategies for all types of territories and in particular for urban areas, including the promotion of sustainable multi-modal urban mobility and mitigation-relevant adaptation measures. Thematic objective 5: Promoting climate change adaptation, risk prevention and management, with the following investment priority: b) promoting investment to address specific risks, ensuring disaster resilience and developing disaster management systems; Thematic objective 6. Preserving and protecting the environment and promoting resource efficiency, with the following investment priorities: c) conserving, protecting, promoting and developing natural and cultural heritage; e) taking action to improve the urban environment, to revitalise cities, regenerate and decontaminate brownfield sites (including conversion areas), reduce air pollution and promote noise-reduction measures; Thematic objective 7. Promoting sustainable transport and removing bottlenecks in key network infrastructures, with the following investment priorities: b) enhancing regional mobility by connecting secondary and tertiary nodes to TEN-T infrastructure, including multimodal nodes; Prepared by POVVIK December,

9 Thematic objective 9. Promoting social inclusion, combating poverty and any discrimination, with the following investment priorities: a) investing in health and social infrastructure which contributes to national, regional and local development, reducing inequalities in terms of health status, promoting social inclusion through improved access to social, cultural and recreational services and the transition from institutional to community-based services;; Thematic objective 10. Investing in education, skills and lifelong learning with the development of educational infrastructure and training infrastructure with the following investment priorities: Investing in education, training and vocational training for skills and lifelong learning by developming of educational infrastructure and training infrastructure. In order to coordinate with the other operational programmes and the rural development programme in 2012, according to the requirements of the Regional Development Act, a National Spatial Development Concept for the period (NSDC) was developed. The National Concept provides the foundation for the territorial differentiation and coordination of the various operational programmes and it was verified on by the Council of Ministers of the Republic of Bulgaria. The OPRG is intended to include one main priority that will address the integrated urban development that corresponds to thematic objective 6 Preserving and protecting the environment and promoting resource efficiency, which is the focus of the greatest funding share. Projects under OPRG will be approved for grants only after positive decision/opinion on the held procedures according to the sixth chapter of the Environmental Protection Act and the Biodiversity Act. 1.2 Contents of OPRG The previous versions of OPRG included: Version includes 5 priority axes, as Priority axis 1 included 8 sub-priorities; First version from with 7 priority axes, as Priority axis 1 included 8 subpriorities in relation to this version a report was drawn concerning the environmental assessment in March 2013; Second version from with 7 priority axes, as Priority axis 1 included 6 sub-priorities; The last, third version from with 8 priority axes, as Priority axis 1 contained 5 Investment priorities, Priority axes from 2 to 7 contained 1 Investment priority each, and Priority axis 8 is Technical assistance. In view of the investment priorities examples of eligible activities were identified. The framework of the environmental assessment procedure, including in the EIA report, contains the three alternatives: one of the alternatives is the initial version of OPRG with 5 axes, the other is the second version from December, 2012 with 7 priority axes, the third alternative is the last version of the OPRG with 8 priority axes from September, As a fourth alternative, upon Contracting Authority s request, we reviewed for the possibility to continue the implementation of the current OPRG during the period Prepared by POVVIK December,

10 The last version of OPRG was prepared in September 2013 in conformity with the draft-template and guidelines on the contents of the operational programme and includes the following sections: 1. Preparation of OP and partners participation; 2. Programme strategy with contribution for the EU Strategy of smart, sustainable and inclusive growth and the achievement of economic, social and territorial cohesion; 3.А. Description of the priority axes that differ from the technical assistance; З.В Description of the priority axes for technical assistance; 4. Financial plan of OPRG ; 5. Integrated approach for territorial development; 6. The specific needs of the geographic regions that are worst hit by the poverty of the target groups or of the target groups at the highest risk of discrimination or social exclusion, with special focus on the marginalized communities as well as the disabled people; 7. The specific needs of the geographic regions that suffer from significant and permanent unfavourable natural or demographic conditions; 8. Authorities and bodies that are responsible for the management, control and audit and role of the particular partners; 9. Coordination between the funds, European Agricultural Fund for Rural Development, European Maritime and Fisheries Fund, of other national instruments for funding and instruments of the EU, as well as with the European Investment Bank; 10. Preliminary terms and conditions; The allocation of funds under OP Regions in Growth is determined mainly by the identified national needs that can be addressed with funds from ERDF. The strategy of the Operational Programme focuses on raising living standards with a view to overcoming the negative demographic trends and using the potential of towns and cities for a balanced development of the entire territory of the country. Almost 1/3 of all resources under the Operational Programme are channelled into Thematic Objective 4, with 20% of the funds being earmarked for implementing energy efficiency measures in administrative and residential buildings, whereas 9% of the funds will be invested in the development of integrated urban transport under Priority Axis 1. Such allocation is based, on the one hand, on the requirements for thematic concentration at national level: on account of the fact that the specificity of the Operational Programme does not involve any interventions within the framework of thematic objectives 1, 2 and 3, OPRG should contribute mostly to thematic objective 4. On the other hand, such allocation is the result of the main problems identified in urban areas, namely poor condition and low energy efficiency of the buildings against a backdrop of an ongoing process of urbanisation, which is expected to bring about a substantial increase in urban transportation and mostly the growing use of personal motor vehicles at the expense of public urban transport. With a view to the ambitious goal which Bulgaria has set itself, namely to increase energy efficiency by 25% by 2020 (as against 20% under Europe 2020), OPRG is expected to contribute substantially to the attainment of this goal through the implementation of measures for energy efficiency in Prepared by POVVIK December,

11 administrative and residential buildings. One should also note the effect investments within this priority axis will have on carbon emissions, and the attainment of the Europe 2020 goal of reducing them by 20%. The main source of greenhouse gas emissions in Bulgaria are road transport and housing heating. This not only seriously increases energy consumption but also widely uses coal and firewood, thus having a negative impact on the environment while raising carbon dioxide levels in the atmosphere. The energy efficiency measure also addresses the implementation of Country-specific Recommendation 7 of the Council on increasing energy efficiency. A substantial share of the resources - 26%, is allocated to Thematic Objective 6, the investment priorities of which most fully correspond to a large part of the identified needs. A large percentage of investments within the framework of this thematic objective will be channelled into improving the urban environment (Priority Axis 1) and developing the tourist potential of the regions (Priority Axis 5). Thus channelled, such assistance will not only make a substantial contribution to protecting the environment and encouraging the efficient use of resources (in this case, the natural and cultural heritage); it will also contribute to the attainment of the Europe 2020 goal, respectively Bulgaria s national target, of 76% employment of the population aged by Improving the urban environment is a growth factor, a factor for demographic development, investments and, respectively, job creation. It should be noted that a great deal of the activities within the scope of investment priorities under this thematic objective will be carried out using financial engineering instruments; the plans are that this will raise a substantial amount of private capital. The same applies also to investments in tourist infrastructure (natural and cultural heritage sites), which will additionally provide incentives for the development of the local economies in the regions and will result in creation of new forms of employment. Next in priority in terms of funds allocation is Thematic Objective 9, which receives 18.28% of the available financial resources. Thematic Objective 9 will support investments in social and health infrastructure with a view to attaining the national goal of reducing the number of people living in poverty. Bulgaria is the country with the poorest population in Europe; in this context, the support under OPRG within the framework of this thematic objective will address the vulnerable groups of the population that are at highest risk of poverty: the Roma minority, people with disabilities, children at risk and the elderly. The support for the development of social and health infrastructure also addresses the countryspecific recommendations of the Council: Strengthen efforts to enhance the quality of public spending, particularly in the health sector and To alleviate poverty, improve the effectiveness of social transfers and the access to quality social services for children and the elderly and implement the National Roma Integration Strategy. Social inclusion will also be supported through investments in cultural and sports infrastructure. Thematic Objective 7 amounts of 12.24% of the resources provided under OPRG, allocated to the development of regional road infrastructure. The reason for this allocation is the national needs and priorities: the national transport network consists mostly of low-class roads, which are in very poor condition. The need for investments exceeds by far the resources made available under the programme. A large portion of the national road network, especially the 2 nd and 3 rd class roads, are designed to carry loads of up to 10 tonnes per axle and thus do not satisfy the European requirements. This in turn places a greater load on higher-class roads. That is why OPRG will focus the support the 1 st, 2 nd and 3 rd class roads providing access to areas with potential for tourism development or serving as intra-regional connections between towns and cities, thus enabling the development of their specific Prepared by POVVIK December,

12 economic potential while at the same time providing links with, and access to, the TEN-T network. Investments in road infrastructure provide connectivity of the regions and access to the Single European Market; in this sense, they are a crucial engine of growth. The planned interventions under OPRG will have a positive impact on the mobility of people and businesses, will contribute to the integration of remote and less developed areas and will encourage the development of local economic potential, thus contributing to the attainment of the national and European goal of increasing employment. The investments in educational infrastructure (Thematic Objective 10), representing 9.24% of the allocated funds, are focused on the achievement of the national target of reducing the drop-out rate in the education system and increasing the share of university graduates among the population. The main causes of early school leaving are the negative attitude on the part of pupils to the tuition process, the poor grades and the lack of motivation. OPRG will address these issues by providing an option for full-time organisation of the teaching process, ensuring conditions for extracurricular activities and overall improvement of the school environment. Investments in educational infrastructure address the country-specific recommendations of the Council with respect to enhancing the quality of public spending in the education sectors and ensuring genuine access to education for disadvantaged groups. Motivating pupils and creating a positive attitude to the education system will, in the long run, contribute to increasing the share of university graduates among the population. Investments in schools of higher learning will likewise contribute to the attainment of this target. The allocation of financial resources under the Operational Programme is determined by its specificity. This is a territorial operational programme which contributes to a large number of thematic objectives, concentrated and coordinated at territorial level. Nevertheless, the principle of thematic concentration is also followed, with a definite preponderance of Thematic Objective 6 and Thematic Objective 4. The least resources are allocated to Thematic Objective 5, in view of the low potential for ensuring growth and employment. The priority axes and the resulting activities are the ones that define the framework for the future development of the investment proposals upon Appendices 1 and 2 of the Environmental Protection Act thus they are reviewed in detail in this section. Investment priorities were identified to each Priority axis and in addition to each priority the corresponding specific objectives are defined. Priority axis 1: Sustainable and integrated urban development Historically speaking, cities and towns have always been the engines of culture and social progress. They are the hubs of business and commerce, the centres of science and education. It is an indisputable fact that Europe is one of the most urbanised continents. Sixtyeight percent of EU citizens live in cities and towns; the indicators for Bulgaria are similar. Issues of urban development also become increasingly prominent in the EU cohesion policy. The EU Member States emphasised the territorial significance of the Union s policy on cities by the adoption of the EU Territorial Agenda and the Leipzig Charter on Sustainable European Cities at the informal ministerial meeting held in Leipzig in The Ministry of Regional Development has been involved in, and contributing to, this process since its inception. The EU Territorial Agenda 2020 (revised 12/05/2011, in Hungary) sets out as urban development priorities support for a polycentric and balanced territorial development and Prepared by POVVIK December,

13 promotion of the integrated development of cities. The key theoretical approach underlying these documents is as follows: If until recently states planned their development in accordance with the following logic: based on the assumption that strategic investments create jobs which attract people and thus generate development, now the logic is beginning to turn around: the creation of an urban environment of a high quality, providing diverse opportunities for education, entertainment, sports, work and recreation keeps in place and attracts highly educated and properly qualified young people, which in turn attract strategic investors. The significance of cities and the need for targeted measures for sustainable and integrated urban development are duly reflected in the National Reform Programme , the National Development Programme Bulgaria 2020 and in the National Regional Development Strategy That is why the Operational Programme for Regional Development places the highest priority on sustainable and integrated urban development by designating it Priority 1. The priority covers a wide range of eligible investments. Concentration is achieved by focusing the relevant Integrated Plans for Urban Regeneration and Development into the eligible towns and cities, specifically in their intervention zones. Caps will be defined for each level of urban area (1 through 4) to prevent towns and cities from competing among themselves and enable them to plan their projects and resources. For cities of level 1 to 3 projects may be funded by groups of activities: areas with potential for economic development, social infrastructure, as well as municipal educational infrastructure outside the intervention zones of IPURD within the municipal territory. Activities funded under this exception clause cannot exceed 20% of the pre-set cap for the relevant city or town under Priority Axis 1. The main purpose of this priority is to support integrated investments within the framework of IPURDs, in keeping with the principles of thematic concentration, while also ensuring territorial concentration in the territories of the relevant cities and even within the intervention zones of level 1, 2 and 3 cities and towns. Thus IPURDs aim to achieve a synergy effect as a result of the coordinated implementation of diverse local sectoral policies and investments at territorial level, so that the comprehensive solution would exceed the added value as would result if such policies and investments were to be implemented separately. Therefore the Priority Axis addresses several thematic objectives at the same time, so as to enable the implementation of the IPURDs while achieving maximum integration of interventions in the territories of the relevant cities and towns. This Priority Axis comprises several investment priorities. Investments in municipal educational and social infrastructure, energy efficiency and public urban transport, as well as in cultural and sports infrastructure will be combined. Where appropriate, interventions will be carried out in accordance with the priorities of individual sectoral strategic documents, in order to achieve a coordinated and integrated approach. Based upon the experience of the current programming period, financial engineering will be used, wholly or in part, to fund investments in sports infrastructure, energy efficiency in residential buildings, cultural infrastructure, as well as in areas with potential for economic development, urban environment and integrated urban public transport. Prepared by POVVIK December,

14 2025 Cities identified for support by the National Spatial Development Concept 2013 The National Spatial Development Concept is one of the strategic planning documents for spatial development, adopted pursuant to Article 7a (2) of the Regional Development Act (RD Act). The Concept was developed on the authority of Article 2 (1) of said Act, which provides that the government policy for spatial development is to be implemented in accordance with the spatial development strategies at national, regional, district and municipal level, as determined by force of the concepts and schemes for the relevant territorial level. Pursuant to Article 2a (1) of RD Act, the spatial development concepts and schemes define the goals of the government policy for spatial development over a predefined period of time for the relevant territorial unit. The National Spatial Development Concept for the period is a strategic document which ensures coordination of the planning of the regional development and the spatial planning of a territory while providing for proper coordination and methodological uniformity in the preparation of the documents for management of EU funds for the next multiannual programming period The scope and content of the National Spatial Development Concept are in line with the requirements of Article 7b (4) of the Regional Development Act. Guiding principles in the selection of cities for support under OPRG: o Support for all cities of level 1, 2 and 3, 2020 time horizon in accordance with the Moderate Polycentrism model of NSDC (39 in all see Appendix 2). Their selection has been carried out in consideration also of European classifications, notably those of ESPON o Support for selected level-4 towns which, because of their large number (90) have been assessed in accordance with several additional criteria: 1. Whether located along a primary or a secondary development axis; 2. Whether located in a peripheral territory (in a border area or inland) in order to enable connections with neighbouring territories, including outside of Bulgaria; 3. Whether it functions as a service centre for more than one municipality; 4. Where possible, in every district there should be at least one more supported city or town in addition to the district centre; Level 4 towns are selected for support also by taking into account national classifications, notably the categorisation of administrative-territorial and territorial units (category 2 and 3 cities and towns) and the classification by level of the NSDC in its part containing forecasts for future periods, namely; 5. Whether a city or town is included in such forecasts with a tendency to moving to a higher level; 6. Category 2 or 3 under the Unified Categorisation of Administrative-territorial and Territorial Units; Achieving growth and ensuring employment the approach adopted to providing support under OPRG for the period, in terms of ensuring growth and creating new jobs, is based upon the best practices of the current programming period and builds upon them while trying to avoid the mistakes of the past. The support measures Prepared by POVVIK December,

15 envisaged in the respective sectors at regional level will directly or indirectly support, on the one hand, the reduction of unemployment and the increase in employment and, on the other, the achievement of economic growth in accordance with the goals of the Europe 2020 Strategy. Also factored in were the findings of the medium-term evaluation under OPRD , according to which the results of the implementation of the programme have a positive impact on the processes of regional development in Bulgaria, supporting the efforts to mitigate the impact of the global financial crisis primarily in 3 aspects: first of all, on the quality of life and on reducing internal migration; second, as a source of investment funds for the municipalities, and third, by creating a market for the local construction industry, which is among the worst hit by the crisis. Although indirectly, this also has a positive impact on the tourism and energy sectors. The key financial resource under OPRG (over 60%) is focused on supporting the development of the 67 cities selected as direct beneficiaries under Priority Axis 1 Sustainable and Integrated Urban Development of the Programme. The analyses of the Ministry of Regional Development, as the competent authority with respect to regional policy, show that this policy should be directed to support the development of urban centres as the engines of growth, with the purpose of improving the quality of life, increasing competitiveness and, as the ultimate result, achieving the levels of development of the average European country. Cities and towns can contribute to inclusive growth and, more specifically, to the fight against social polarisation and poverty, to addressing the problems arising from the ageing of the population; they can become attractive places to live in, providing alternative employment and new jobs; they can help minimise or eliminate negative demographic trends by reducing migration to the big cities, creating evenly distributed support centres throughout the territory of the country. Appendix 1 shows a Map of the cities to be supported upon OPRG (67 in total), and Appendix 2 contains a List of the cities that are Direct beneficiaries of priority axis 1 Sustainable and integrated urban development of Operational Programme Regions in Growth for the period These 67 cities are described below at their hierarchical levels: First hierarchical level - Sofia; Second hierarchical level Plovdiv, Varna, Burgas, Ruse, Stara Zagora, Pleven, Veliko Tarnovo, Blagoevgrad, Vidin (9 in total); Third hierarchical level Montana, Vratsa, Lovech, Gabrovo, Targovishte, Razgrad, Shumen, Silistra, Dobrich, Sliven, Yambol, Haskovo, Kardzhali, Smolyan, Pazardzhik, Pernik, Kyustendil, Svishtov, Gorna Oryahovitsa, Kazanlak, Dimitrovgrad, Asenovgrad, Karlovo, Dupnitsa, Petrich, Lom, Velingrad, Panagyurishte and Gotse Delchev (29 in total); Fourth hierarchical level Troyan, Sevlievo, Popovo, Karnobat, Malko Tarnovo, Nova Zagora, Svilengrad, Ivaylovgrad, Krumovgrad, Devin,,, Samokov,, Sandanski, Botevgrad, Peshtera, Pomorie, Razlog, Novi Pazar, Provadiya, Cherven bryag, Kozloduy, Berkovitsa, Tutrakan, Elhovo, Belogradchik, Zlatograd, Nikopol, General Toshevo, Mezdra (28 in total). The 67 selected cities are distributed in the 6 regions of level NUTS 2, as follows: North-Western Region (NWR): Pleven, Vidin, Montana, Vratsa, Lovech, Lom, Kozloduy, Nikopol, Belogradchik, Berkovitsa, Mezdra, Cherven Bryag, Troyan 13 cities; Prepared by POVVIK December,

16 Northern Central Region (NCR): Ruse, Veliko Tarnovo, Gabrovo, Razgrad, Silistra, Svishtov, Gorna Oryahovitsa, Sevlievo, Tutrakan 9 cities; North-Eastern Region (NER): Varna, Shumen, Dobrich and Targovishte, Popovo, Novi Pazar, Provadiya, General Toshevo 8 cities; South-Western Region (SWR): Sofia, Blagoevgrad, Kyustendil, Pernik, Dupnitsa, Petrich, Gotse Delchev, Botevgrad, Samokov, Razlog, Sandanski 11 cities; Southern Central Region (SCR): Plovdiv, Haskovo, Kardzhali, Smolyan, Pazardzhik, Karlovo, Velingrad, Panagyurishte, Peshtera, Devin, Zlatograd, Dimitrovgrad, Krumovgrad, Ivaylovgrad, Svilengrad, Zlatograd 16 cities; South-Eastern Region (SER): Burgas, Stara Zagora, Sliven, Yambol, Kazanlak, Nova Zagora, Karnobat, Pomorie, Elhovo, Malko Tarnovo 10 cities. Analyses show that the economic crisis is placing enormous pressure on public budgets, whereas declining levels of lending limit private investments, including those channelled into improving the urban environment and creating adequate living conditions in the cities. The absence of loan resources for acquisition of tangible fixed assets is among the main factors for the decline in private investment and, hence, growth and employment. JESSICA-type facilities stimulate both public-private partnerships and credit institutions for participation in public policies for regional and urban development. Such financial instruments encourage the entrepreneurial spirit, enabling all economic entities to participate in urban development and receive support with funds from the European Union, thus helping achieve a steady economic growth by implementing financially sustainable and feasible projects and investments. In this context, under OPRG there will be a significant increase in the funds to be allocated for repayable investments as a result of the application of financial instruments, in comparison with the current programming period, for the purpose of attaining additional growth and ensuring employment. There will be a significant increase in the funds to be allocated for repayable investments as a result of the application of financial instruments, in comparison with the current programming period. About 18% of the budget of OPRG is earmarked for implementation of projects through financial instruments. Priority axis 1: Sustainable and integrated urban development The framework of this priority axis includes: Investment priority 1 of Priority axis 1: Supporting the energy efficiency, smart energy management and renewable energy use in the public infrastructure, including in public buildings and in the housing sector SPECIFIC OBJECTIVE 1: Raising energy efficiency in public buildings and the housing sector Bulgaria has set itself an ambitious national target with respect to the parameters of energy efficiency it seeks to achieve, namely 25% higher energy efficiency by This is due to the extremely low current level of energy efficiency, especially in households and administrative buildings, and the big social and economic potential of investments in energy efficiency Prepared by POVVIK December,

17 The social and economic analysis performed in the preparation of OPRG shows that the key problem in public infrastructure is related to energy efficiency. This is also a problem for a great portion of the residential buildings falling within the scope of the intervention zones. The National Housing Strategy of the Republic of Bulgaria considers the needs of the housing sector in the country. Among the most pressing needs appears to be its low energy efficiency. According to data presented in the Strategy, the external enclosing elements of buildings have actual coefficients of thermal conductivity that are 3 5 times higher than the current norms for new construction, introduced in In 80 percent of the existing buildings the basements and roof slabs have no thermal insulation whatsoever. The poor thermal insulation of external enclosures is the cause for increased heat losses. Heat losses from glazed surfaces (windows, all-glass balcony doors) sometimes account for 50% of the total heat loss. The biggest problems have been identified in apartment buildings constructed from large pre-fabricated slabs; there are 18,900 such building in Bulgaria, grouped in 120 housing projects. These building comprise a total of 707,441 housing units, occupied by over 1.77 million people. Eighty-three percent of pre-fabricated apartment blocks are located in the district centres; in some larger cities they constitute about 50% of all housing; in other words, almost 100% of all problem buildings are located in the 67 cities selected for support under Priority Axis 1 of OPRG A number of expert evaluations and analyses show that about 10% of all pre-fabricated apartment blocks are in urgent need of repair of the internal installations and the hydro insulation on their roofs. Many of those buildings are also in need of structural reinforcement, which is a sine qua non of the measures applied to achieve sustainable energy efficiency. As a result of all of the above, the housing sector is the chief culprit for the high energy consumption in Bulgaria. The Action Plan for improving energy efficiency in Bulgaria states that the housing sector accounts for 23% of the total energy consumption in the country. The need for energy-efficient renovation of buildings is part of the larger and urgent necessity to revitalise the urban areas with a view to halting the process of urban decline and decay, emigration and ghetoisation of large areas, even entire housing projects. The bulk of housing units 96.5% are owned by private individuals. Three percent are state or municipal property, and the remaining 0.5% are owned by businesses, public or cooperative organisations, or were vacant at the time of the survey. This makes it necessary to use a combination of grants and financial facilities to provide the appropriate financial products for addressing the needs in the housing sector. The energy performance of administrative buildings used by the government and local administrations are extremely poor; this, among other things, has as a consequence the inefficient spending of public resources. Indicative eligible activities: Renovation of the common parts of multifamily residential buildings, such as: repairs of the following key structural elements of the building: roof, façade, external joinery, stairwells, external and internal hallways, entrance doors and landings, lifts); and vertical technical installations (water supply and sewage, electrical, heating, telecommunications, fire hydrants) of the building; Renovation of administrative buildings of the government and municipal administration, such as: repairs of the following key structural elements of the building: roof, façade, Prepared by POVVIK December,

18 external joinery, stairwells, external and internal hallways, entrance doors and landings, lifts); and vertical technical installations (water supply and sewage, electrical, heating, telecommunications, fire hydrants) of the buildings; repair and reconstruction of the interior of the buildings, including restrooms; Structural reinforcement of multifamily residential buildings and administrative buildings of the government and municipal administration; Measures for improving the energy efficiency of housing and administrative buildings of the government and municipal administration, including, e.g., thermal insulation, replacement of external joinery, local installations and/or connections to the district heating, gas supply, etc. systems; Commissioning of installations for production of energy from renewable sources for the buildings listed above for meeting their own energy use, where this is technically possible and economically feasible; Provision of loans and/or repayable investment guarantees for energy efficiency and renewable-source energy usage in multifamily residential buildings; Energy efficiency audit and constructional inspections of the existing buildings; Improving access for people with disabilities to the buildings mentioned above. Direct beneficiaries: The Housing Policy Directorate, MoRD / Housing Renovation Fund; 67 municipalities, as per Appendix 2; Financial instruments; Main target groups: Households in the affected multi-family residential buildings concerned; Government institutions, in the case of buildings within the framework of IPURDs, respectively within the framework of the intervention zones for Level 1, 2 and 3 cities and the entire territory of Level 4 towns. The Programme envisages that the government institutions whose property the administrative buildings concerned are will participate in partnership with the municipalities designated as direct beneficiaries. Members of vulnerable social groups improved access to the buildings will contribute to the social inclusion of people in a disadvantaged position. Specific target territories: Energy efficiency in housing will be funded for the entire territory for the 67 cities and towns, without any territorial restrictions within the intervention zones for Level 1, 2 and 3 cities and towns. Energy efficiency of administrative buildings of the government and municipal administration will be funded within the framework of IPURDs, respectively within the public function zones of high social significance for Level 1, 2 and 3 cities and towns; buildings in Level 4 towns will be funded within the boundaries of their built-up areas, without prejudice to any specific zones. Prepared by POVVIK December,

19 Justification: The activities envisioned hereinabove will have as their direct result the improvement of energy efficiency of administrative and residential buildings in the target territories, which will contribute directly to lowering the end energy consumption of households, and indirectly, to reducing greenhouse emissions. The performance of those activities will increase the energy efficiency of public and residential buildings. To ensure sustainability of investments, the Programme envisages measures for complete renovation of those buildings, which will substantially improve the urban environment. Such activities will help ensure adequate living conditions while improving living standards as a whole, in line with present-day standards. The Programme also envisages improving the accessibility of the urban environment for people with disabilities, which will contribute towards improving mobility as a way of providing a more humane environment while increasing the opportunities for social inclusion of people in a disadvantaged position. Growth and employment significant beneficial side effects are expected for all sectors of the economy and mostly in support of small and medium-sized businesses engaged in the implementation of energy efficiency measures, increasing economic competitiveness and achieving a sustainable and balanced economic growth. Measures related to energy efficiency occupy a prominent place in the fight to curb climate change. They have a positive impact on the environment by contributing to its protection and conservation. Their practical implementation will involve the application of environmentally sound solutions for addressing the effects of urbanisation, aimed towards greater competitiveness and better quality of life. The broader use of financial engineering will stimulate the creating of new banking products and increased lending to energy efficiency measures, which in turn will have a positive impact on economic growth. Investment priority 2 of Priority axis 1: Actions to improve the urban environment, revitalisation of cities, regeneration and decontamination of brownfield sites (including conversion areas), reduction of air pollution and promotion of noisereduction measures. Investment priority 2 of Priority axis 1 contains 2 specific objectives: SPECIFIC OBJECTIVE 1: Raising the quality of life, social inclusion and amelioration of the natural environment through rehabilitation of the physical environment in the cities and towns.. This objective directly aims at rehabilitating the urban physical environment, which will entail environmental as well as economic and social benefits for the population. SPECIFIC OBJECTIVE 2: Improving economic activity in the cities by regenerating areas with potential for economic development.; Economic development is the growth engine of cities and towns. In a large part of the urban centres in Bulgaria the infrastructure in the business areas is in poor condition. In this context, a zone of impact is included in the IPURDs, designated as areas with potential for economic development. These are zones predominantly designated for manufacturing and other business operations with functional and environmental characteristics and state of the infrastructure that do not satisfy investor demand for Prepared by POVVIK December,