the Heritage:

• intensive housing programs in the 60’s and 70’s

the result:– over 350 000 new flats with appropriate water supply

– over 85% of households connected into the public sewer network

–“traditional solution”: direct wastewater discharge into the Danube

– inhabitants: 1,8 mn + over 1 mn in suburb

changes after ‘90

• ongoing design and dev’t plans since the 1959/61 Sewage Plan for Budapest;

• 91/271/EEC Directive, Sofia convention;

• from “social service” to “polluter pay”;

• operation privatization;

• introduction of the “all-inclusive” tariff (operation + maint. + depretiation + Capex + operator’s profits);

• increase of tariff from 0 to economic level;

• tensions: sustainable tariff level vs. necessary Capex to the City (loans);

• Central Gov’t normative subsidies

Finances

• “base rule” at the City: sectorial Capex must be covered by sectirial income (both water-supply and sewage, but not transport)

• “bridge-financing”: role of the IFIs due to the underdeveloped Hungarian financial market in the 90’s;

• WB: EUR mn 27.7 loan + equal local resources; (incl. 30% Central Government subsidies, see resp. legislation)

• parts of an EIB-loan (EUR mn 20);

• subsidy from the EU: EUR 16 mn LSIF;

• submission of a Cohesion Fund application (cca. Mn EUR 160) on 31 March 2004 (see later)

the Facilities:

North-Pest Treatment Plant

built: 1979-86

140 000 m3/day capacity

upgrade: 1998-2001 to 200 000 m3/day cap.

ONLY BIOLOGICAL TREATMENT

South-Pest Treatment Plant

built: 1966,

30 000 m3/day capacity

upgrade: 1998-2000

to 120 000 m3/day cap.

TERTIARY TREATMENT

INCLUDED

results and further tasks

• today: – 46% of total wastewater treated bilogically,

– 22% tertiary treatment

– Nitrogen load total: over 10 000 t/y

discharge: cca. 4 000 t/y

– Phosphorus load total: cca. 2 000 t/y

discharge: cca. 900 t/y

– 54% only mechanically treated direct discharge to Danube

North-Pest tertiary treatment

• Still not sensitive area, but relevant Hungarian regulation:– Phosphorus discharge max.: 2 mg/l,– Nitrogen discharge max.: 30 mg/l.

• the GEF project (WB implementation)– Preparatory phase: EIA, FS ready, preliminary water permit in

hand co-financed already by GEF PDF Grant;– tendering: acc. to Yellow Book (technological option limited by

permit only, Design-Build contract)– Cost breakdown:

TPC (excl. of VAT): USD 21.7 mn,PDF grant: USD 6.5 mn

City’s own funds: USD 15.2 mn(in this case no Central Gov’t participation in funding)

To be completed by end 2006.