Gospodarski susret Tehnologija zaštite okoliša graditeljstvo infrastruktura. Croatian water sector and project pipeline for the comming years
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1 Gospodarski susret Tehnologija zaštite okoliša graditeljstvo infrastruktura Croatian water sector and project pipeline for the comming years Zagreb 03 March 2017 Robert Kartelo Head of EU Sector Hrvatske vode
2 OBLIGATIONS OF THE REPUBLIC OF CROATIA Treaty concerning the Accession of the Republic of Croatia to the European Union Directive on the quality of water intended for human consumption (EUR 1.1 billion) Directive concerning urban waste water treatment construction of public waste water collection and treatment system in 281 agglomerations with more than 2,000 PE (EUR 2.6 billion) Implementation Plan for Water Utility Directives
3 Public water supply connection rate 86% (2015), 4% connected to local water supply systems Investments relate to: Improvement of water quality in accordance with regulations concerning sanitary quality of water intended for human consumption: Upgrade of public water supply system up to the affordability threshold
4 Wastewater collection and treatment Potential load - No. of agglomerations more than PE PE PE PE PE 190 Total 281 Target year No. of agglomerations Investments HRK 11,257, HRK 2,572, HRK 8,062, Total 281 HRK 21,892, Connection rate to public wastewater systems (2015) about 50%
5 Managing off EU Funds Water Sector Certification body Ministry of Finance EU Managing authoritiy Ministry of Regional development Intermediate body 1 Intermediate body 2 Ministy of Environment Hrvatske vode Beneficiary Utility company Employer Contractor
6 Overview of projects in water sector In total 158 PROJECTS
7 Overview of technical indicators PROJECT WASTEWATER WATER WWTP (PE) pipeline (km) pipeline (km) SLAVONSKI BROD DRNIŠ KNIN SISAK OSIJEK POREČ VUKOVAR ČAKOVEC ŽUPANJA NOVA GRADIŠKA VIROVITICA RVS OSIJEK VODICE SMALL INTERVENTIONS TOTAL:
8 Example project city of Osijek Total investment: 72,508, Implementation period: Project activities Construction/reconstruction of 3 main water supply pipelines 16 km long Construction/reconstruction of sewer system (62.1 km) with 15 pumping stations Construction of 4.4 km and reconstruction of 0.17 km of sewers Construction of a WWTP, capacity 170,000 PE, tertiary treatment Extension of a drinking water treatment plant to remove arsenic Supply of system maintenance and inspection equipment Status: Approved as a Major Project; in implementation
9 EU Financial perspective EUR 559,821,788 Approved projects EUR 501,259,477 Contracted activities 100% Allocation in the amount of EUR 199,094,853
10 Financing model Sustainable finacial moded establised Based on development index of local self-government unit. EU / State budget / Hrvatske vode / local Average project finance structure: EU finance 68%, National (State budget + HV) 24% local 8% Index Local State budget Hrvatske vode < 50% 6,67% 46,67% 46,67% 50-75% 13,33% 43,33% 43,33% % 20,00% 40,00% 40,00% % 26,67% 36,67% 36,67% >125% 33,33% 33,33% 33,33%
11 Projects preparation HRVATSKE VODE started with project preparation back in 2010 Pipeline 1 + list 39 (4 years) Pipeline 2 (2 years) EUR 34,6 million EUR 45,0 million 2300 km of detailed designs for water supply and wastewater networks 3500 km of detailed designs for water supply and wastewater networks 20 preliminary designs for WWTPs 57 preliminary designs for WWTPs Estimated value of construction: EUR 746 million Estimated value of construction: EUR million
12 Target year Current state Projects pipeline - status Start of implementation Number of agglomerations Potential load (PE) 2018 Implementation Preparation Total Implementation Preparation Not started Total Implementation Preparation Not started Total Grand Total
13 APPROVED PROJECTS Grant Agreements for the following projects: Petrinja Project approved on 7 July 2016 Total value: EUR 56,730, incl. VAT Eligible costs: EUR 45,384, EU: EUR 32,223,000.51; National: EUR 13,161, Rovinj Project approved on 9 December 2016: Total value: EUR 36,819, incl. VAT Eligible costs: EUR 29,455, EU: EUR 21,129,672.72; National: EUR 8,325, Approval procedure ongoing: Krk Total value: EUR 84,031,786 incl. VAT
14 Average duration of contracts Network: 23,7 months WWTP: 32,7 months
15 Average lenght by project 38,90 km Sewage network 15,50 km water supply network
16 Types of contracts Contract by type 15 1% 4% 17 45% 50% MREŽA (FIDIC RED BOOK) OPREMA UPOV (FIDIC YELLOW BOOK) NADZOR
17 Preparation of offers Criteria Category % of Offers No of activities in Schedule Relationship between activities Scheduling tool Resource attached to schedule Critical path defined % > 50 30% NE 71% DA 29% MS Excel 47% MS Project 53% NE 71% DA 29% NE 71% DA 29%
18 % OF WORKS 20% Average works schedule Planned vs Implemented Planned / implemented 20,6% 15% 13,9% 10% 8,9% 11,8% 9,3% 5% 4,7% 6,3% 0% 1,5% 3,2% 0,3% 1,5% 0,5% MONTH
19 PUBLIC PROCUREMENT WWTPs cont TENDERING STAGE Complex tender documentations Quality of received offer Evaluation criteria MEAT Capex + Opex (electricity) Capex varies amost ± 25% from mean Opex varies almost ± 50% from mean (unrealistic) Complaints on allmost any mistake (even language) Complaints process blocked investment IMPLEMENTATION STAGE Project design phase underestimated by almost all Contractors Contractor try to impose so called improved to basic solution from his offer - not in line with the Procurement Act
20 PUBLIC PROCUREMENT proposed mesures Development of new standardized tender dossiers in water sector Use of the European Single Procurement Document (ESPD) Introducing the MEAT in all tendering process Simplifying the key requirements for selection of offers Open technology approach up to Tenderer proposal (WWTP) Simplifying the Employers requirements more freedom for Tenderer to propose his technical solution (WWTP)
21 THANK YOU FOR YOUR ATTENTION!
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