EQUILIBRIUM – EUROPE

RESTORE THE BALANCE BETWEEN EXPENSES AND INCOME

General Manager of the Project:drs. Hans Lutgens - concerncontrollerWater Board Roer and OvermaasSittard, The Netherlands

Project Manager:ec. Aurel Filip – financial directorSomes – Tisa Waters DivisionCluj-Napoca, Romania

Presentations of the Project at International and Nationale Meetings

Zaragosa (Spain)- Final FLAPP Conference- June 2007- presented by drs. Hans Lutgens, concerncontroller WRO – The Netherlands

Cluj-Napoca (Romania) - Equilibrium Final Conference- September 2007- presented by the teams form Water Board Roer and Overmaas,

Somes-Tisa Waters Division, Trans-Tisza Directorate for Water and Environment and “Babes-Bolyai” University – Cluj-Napoca

Istanbul (Turkey) – The Fifth World Water Forum- March 2009- Session no. 1.1.4: Sources and Mechanisms for Financing « Financing the

Adaptation to Climate Change : The Romanian – Dutch Bridge in developing a Tax System»- The Union of the Dutch Water Boards, Water Board Roer and Overmaas, the

National Administration « Apele Romane », Somes-Tisa Waters Division;

Bucharest (Romania) – the 13th EU Water Initiative- Eastern Europe, Caucasus and Central Asia Working Group; Seminar on water and climate change; Seminar on integrated nitrate pollution control

- November 2009- presented by the team of the Somes-Tisa Waters Division, Cluj-Napoca

The Project’s Objective

The Structuring and Defining of a Contribution (Tax) System:

- Provision of a rational financial support, in order to maintain and develop in a continuous manner the qualitative and quantitative management of the waters

- Ensuring a financial equilibrium at the level of the hydrographical areas

- Restoring the balance between the expenses and income

Stage I 2006 - 2007

PARTICIPANTS:

- Water Board Roer and Overmaas – Sittard, The Netherlands

- Somes – Tisa Waters Division – Cluj-Napoca, Romania

- Trans – Tisza Regional Directorate for Water and Environment –Debrecen, Hungary

- “Babes-Bolyai” University – Cluj - Napoca – Romania

FINANCING:

- The Program for Social Transformations for Central and East Europe of the Dutch Ministry of Foreign Affairs (MATRA)

- VNGi – The Agency for International Cooperation of the Dutch Municipalities; LOGO – EAST – The Program for International Cooperation of VNGi

Stage II 2008 - 2010

PARTICIPANTS:

- The The Union of the Dutch Water Boards- The Water Board Roer and Overmaas – Sittard, The Netherlands

- The Ministry of Environment of Romania- The National Administration “Apele Romane” - The Somes – Tisa Waters Division - Cluj-Napoca, Romania

- The “Babes-Bolyai” University - Cluj-Napoca, Romania

FINANCING:

- The Dutch Bank of the Water Boards – The Hague, The Netherlands- The Water Board Roer and Overmaas – Sittard, The Netherlands

Stages / Results :Stage I 2006 – 2007

- Exploring and evaluation of the Dutch tax system

- Exploring and evaluation of the Hungarian tax system

- Comparative evaluation of the Dutch and Hungarian water tax systems

Stages / Results :Stages I - 2006 – 2007

Evaluation grid tax systems (1)Viewpoints

1. The benefit Principle

2. The polluter pays principle

3. The cost recovery principle

4. The solidarity principle

5. The legality principle

6. The social principle

7. The stability principle

8. Others

1. Complexity

2. Democratic

3. Transparancy

4. Robust

5. Costs

Taxation Principles, Accepted all Over the World

Stages / Results :Stage I 2006 – 2007

Comparation

Stages / Results :

Stage I 2006 – 2007

The Dutch Model

- Local Water Authorities (the Water Boards)‏

- Involvement of the stakeholders

- Local financing, by local taxes

Stages / Results :Stage I 2006 – 2007

Arguments, Considerations, Applications

- The Water Framework Directive – 60/2000

- The principle of cost recovery for water-related services;

- The “polluter pays” principle

Stages / Results :

Stage I 2006 – 2007

Arguments, Considerations, Applications

-The European Commission

- The Green Chart

Stages / Results :

Stage I 2006 – 2007

Arguments, Considerations, Applications

The Report of Prof. Dr. Ir. P. Vellinga

Leap toward 2015 :Financing possibilities for investments and maintenance?

1. The Central Government

2. The Local Government

3. Private Investors

ScoreCentral Government 6.3Local Government 7.1

Private Investors 5.9

13

THE LUTGENS POLICY HYPOTHESIS

Satisfactory

Basic Needs

Water management

Social security

Economy Other policy domains

Water Management

Stages / Results :

Stage I 2006 – 2007

Stages / Results :

Stage II 2008 – 2010

Description / Definition of the Romanian Water Management System:

- Structuring of the activities and tasks

- Determining of the costs, assigned for activities and tasks

-Implementation / use of a adequate accounting system for the costs allocation and recording

-Development and evaluation of 3 “water tax scenarios”

Stages / Results :Stage II 2008 – 2010

The Process Approach of the Water Management

- Concepts regarding the processes management

- The structure of the tasks, services / products, processes and activities

Stages / Results :

Stage II 2008 – 2010

Definition / description of the water management tasks

S1: Management of the water

resources quantityS2: Management of the water

resources quality

S3: Flood mitigation S4: Regulations in water management

Stages / Results :

Stage II 2008 – 2010

Definition / description of the services, processes , activities

The Management of the water resource quantity

SP1: Quantitative knowledge of the water resources

SP2: Provision of the infrastructure for the quantitative management of the waters

A1: Activity planning

A2: Specific activities (forecasts, quantitative monitoring)

A3: Synthesis, reports, control and survey

A4: Survey Program for cross-border hydro-meteorological surveys

A1: Activity planning

A2: Specific activities (works operations, maintenance and repairs, water bodies

maintenance, infrastructure development)

A3: Survey and control

A4: Synthesis, reporting, Cadastre and patrimony

A5: Communication Dispatcher

A6: Verification of the operation for the infrastructure owned by the third partners

Stages / Results :

Stage II 2008 – 2010

Definition / description of the services, processes, activities

The Management of the water resources quality

SP1: Monitoring of the quality of the water

resources

SP2: Prevention and management of the

dangerous phenomenon

A1: Activity planning

A2: Specific activities (sampling, laboratory analysis, laboratory

survey)

A3: Infrastructure

A4: Synthesis and reports

SP3: Survey and controlSP4: River basin

management plan

A5: Program for the monitoring of the cross-border water resources

A1: Activity planning

A2: Quality management of the accidental pollution events

A3: Synthesis and reports

A1: Survey and control at the beneficiaries of

the water management services

A2: Survey and control at the third partners

A1: Making of the Management Plan for the

Hydrographical Area

A2: Implementation of the EU specific Directives

Stages / Results :

Stage II 2008 – 2010

Definition / description of the services, processes, activities

Flood mitigation

SP1: Specific planning

SP2: Infrastructure development

SP3: Communication, information, guidance,

consultancy, prevention, intervention

SP4: Damage assessment,

rehabilitation of the infrastructure

SP5: Repots and synthesis

SP6: Survey programs for the cross-border flood mitigation structures

Stages / Results :

Stage II 2008 – 2010

Support Processes

General ManagementHuman ResourcesLaw-enforcement ActivitiesQuality ManagementInternal AuditImplementation of the Economic MechanismWork Protection and SafetyAccountingComunications and Informatics TechnologyComunications and Public Relations

2010

Taxation Scenarios (Contributions)

Discussing taxes !