MRDPW receives approximately BGN 60 mln. to support the regional investment planning of the water supply and sewеrage sector

An agreement for grant financing of project "Support for the regional investment planning of the water supply and sewerage sector" was signed today by the Minister of Regional Development and Public Works, Mrs. Lilyana Pavlova, and the Minister of environment and water, Mrs. Ivelina Vassileva, in the presence of the Deputy Prime Minister of European funds and economic policy, Mr. Tomislav Donchev. 
The implementation of the first project, financed by the Operational Programme "Environment" 2014-2020, aims at turning the sector into sustainable and efficient one, corresponding to the European environmental standards, as well as making it financially viable. Its budget is nearly BGN 60 mln. with 46 month-deadline for the completion of the planned activities. During that time it has to build on the achieved results through the project "Support for the water supply and sewerage sector reform", implemented under the Operational Programme "Environment" 2007-2013. Projects on the preparation of regional feasibility studies /RFS/ for 14 separate areas, served by Consolidated water supply and sewerage operators will be implemented  
within the project, explained Minister Pavlova at the ceremony. This project will as well include services to secure the technical quality of the RFS, additional measures for the agglomerations in the separate territory of Smolyan, an assessment of public assets and other accompanying activities.

Minister Pavlova reminded that the public procurement procedure for selecting contractors to work out 14 RFS was launched at the end of September, 2015. She noted that it happened due to the signed on 3 June, 2015 preliminary agreement between MRDPW and MEW. The procedure is completed, there is a decision for the selection of contractors and signing of contracts with the contractors is forthcoming, said Pavlova. RFS should be ready at the end of 2017. After conducting relevant procedures for selection of contractors the building works could start in 2018, informed the Minister.
The water supply and sewerage sector needs a lot of investments. To be efficient and expedient they need good infrastructure management which to guarantee the citizens to receive quality service–which is the project’s main priority, said she. 
Minister Pavlova stressed the water reform includes 3 main pillars - consolidation of water infrastructure in all 28 districts of the country, turning it into public ownership and its management by one water operator in each area based on a general master plan.
The three requirements have been met. In addition, as a Strategy for the sector development has been accepted. Agreements for asset management and general plans have been prepared as well. However, all water supply and sewerage associations in the 28 districts of the country need to start operating in order to fully implement the water reform.
There are consolidated organizations and a selected operator, with forthcoming signing of contracts in 16 districts so far. The contracts in 4 districts have already been signed. In 8 regional centers, out of the other 12 ones, there is a stated willingness for consolidation and respectively contracting an agreement.
According to Minister Pavlova in 242 municipalities from 24 districts, the consolidation process and the reform haven been completed, and they meet the requirements. After preparing a regional feasibility study for each of these districts, financed under the project, application forms will be prepared and the operators could apply with projects on water supply improvement.

Minister Pavlova stressed that the consolidation process in 4 districts, those of Blagoevgrad, Lovech, Pazardjik and Kyustendil, has not been completed yet. These are the only districts with no consolidation of all municipalities, and respectively they will not be able to submit applications for European funding under Operational Programme "Environment" 2014-2020, until they walk the path of consolidation to a joint operator.  Those, which are not part of the water reform, will not receive funds for making water infrastructure investments," added Minister Pavlova. She gave an example with Pazardjik district, where there are 9 operating municipal water supply and sewerage operators, which would like to continue working independently thus refusing to consolidate. This is not efficient, due to both loss of European funding opportunities and national budget support, noted the Minister. In her words, the consolidation is a requirement, determined by EU and the government. We continue the negotiations and the efforts to reach an agreement in these municipalities, she assured.

The new thing in the current programming period is that the municipalities will no longer be beneficiaries under the Programme "Environment", but the operators who will be responsible for the projects’ implementation, clarified Minister Pavlova. She added that a significant success will be the completion of the reform and the projects in 2018.

Under evaluation is the second project proposal "Promoting the efficiency, management and institutional capacity in the water supply and sewerage sector" of the Ministry of Regional Development and Public Works under Operational Programme "Environment" 2014-2020, which will support activities for achieving sustainability of the reform in the sector, concluded Lilyana Pavlova.