Aims of workshop. WWF-Living Neretva Project WFD & Economics workshop 3-4 April 2008 Sarajevo, BiH. Eduard Interwies InterSus Sustainability Services

Aims of workshop Eduard Interwies InterSus Sustainability Services WWF-Living Neretva Project WFD & Economics workshop 3-4 April 2008 Sarajevo, BiH

Overall discussion on work procedures, deadlines etc. Eduard Interwies InterSus Sustainability Services WWF-Living Neretva Project WFD & Economics workshop 3-4 April 2008 Sarajevo, BiH

Work procedures I am available for any questions, preferably per e-mail! Tight time schedule: work needs to start immediately: Check the old BiH 2003-work, the Vrbas report, the phase I-WG-report; Identify/collect the mentioned information sources or already collected information in phase I (limited); Check for updates since 2003; Collect the initial, existing information provided by these information sources; Set-up a contact list in the different authorities (do not forget the local Neretva authorities);

Work procedures Tight time schedule: work needs to start immediately: Compile issues to be discussed with/information to be collected from each authority: reliability of information, possibility to re-structure for the Neretva; if not: estimate deviations for the Neretva; if information missing: perform expert judgments with authorities Proposal: one update e-mail every Friday on how work is proceeding, open questions/difficulties etc.

Work procedures to do s I will in parallel revise the template according to our discussions of the last 2 days Need to clarify the internal division of work among the WG members: overall sections (e.g. water law description etc.), topic-specific work Collect main information gaps, future work ideas / field surveys to be conducted early! You will have to write the report, I will assist (e.g. revise and comment the draft reports, lead on the data analysis)

Time Schedule - roadmap Revised template (but WG work can start before!): April 15th [intermediate steps: WG members to organize internal work, meetings with authorities etc.] First draft of the report (including all data/infos, bullets on text: initial date: 25 April): May 5 - internal version Conference call to discuss progress/comments, to do s: May 9 (initial: end of April) Draft final report: 25 May, clean, to be send to authorities early June My second visit/second meeting: end of May (29-30) Final report ready for last check by project leader (Branko): 20 June Final report: 26 June End of project: 30 June

WFD-requirements on the preparation of CEA/selection of measures presentation of the work to be done/template for the Neretva Eduard Interwies InterSus Sustainability Services WWF-Living Neretva Project WFD & Economics workshop 3-4 April 2008 Sarajevo, BiH

Preparing the CEA-analysis Overview of the information on unitary costs of measures that is available and that could be used as basis for cost-effectiveness analysis. 1. Planned/decided or 2. discussed measures should also be reported here (e.g. construction of new dams etc.): their specific costs (O&M etc., their economic impact if available) For more detailed discussion: let s check the draft template as well as the BiH-report on available information Reactions by the WG members?

Thank you for listening! Eduard Interwies Interwies@intersus.eu

WFD-requirements on assessing cost recovery levels presentation of the work to be done/template for the Neretva Eduard Interwies InterSus Sustainability Services WWF-Living Neretva Project WFD & Economics workshop 3-4 April 2008 Sarajevo, BiH

What costs? Costs Definition Example Financial cost Environmental cost Resource cost Capital costs Operating costs Costs of the damages to the environment caused by a given activity Value of the alternative foregone by choosing a particular activity (= opportunity costs) Principal and interest, depreciation Wages, electricity, maintenance of equipment, analyses of the quality of water Contamination of an aquifer, destruction of wetlands Cost of electricity that could have been produced if water would be available instead of being pumped for irrigation

Cost recovery: requirements Define water services: broader than water supply & wastewater services (see EU-discussions), BUT: we don t have P & I analysis and no definition of water services in BiH water law(s), so: we start with these two. Explain the way the system works (how are tariffs set etc.); As first step: check the financial cost recovery consisting of: Operation costs/maintenance costs/administrative costs/other costs Investment costs / Costs of capital As compared to revenues (excluding subsidies) Check for any relevant information on E & R costs

Cost recovery: information to be investigated Information on the institutional setup Information regarding costs: Financial costs (operation & maintenance costs, investment costs etc.) Environmental/Ressource costs (internalized through taxes/economic value-willingness to pay, existing studies on estimating them etc.) Price Level/price structure/cross-subsidies/collection efficiency Revenues of water service companies Subsidies

To do s For each data group, we need to investigate: Availability (including year, update, scale, confidentiality), Quality, Source Neretva-specific data of restructuring according to hydrological boundaries Special attention paid to environmental and resource costs If parameter not available: develop estimations based on expert judgment

To do s Based on this work: calculate (financial) cost recovery for water provision and wastewater services (for each of the main user groups: Households / Agriculture / Industry) in the Neretva: see work done in phase I/ Vrbas-pilot project Cost recovery rate (%) = (total revenue subsidies) / total costs x 100 For more detailed discussion: let s check the draft template as well as the BiH-report on available information Reactions by the WG members?

Thank you for listening! Eduard Interwies Interwies@intersus.eu

WFD-requirements on providing economic input to the baseline scenario development presentation of the work to be done/template for the Neretva Eduard Interwies InterSus Sustainability Services WWF-Living Neretva Project WFD & Economics workshop 3-4 April 2008 Sarajevo, BiH

Baseline Scenario: Role within the Economic Analysis Assessment of forecasts in key economic drivers likely to influence pressures on the water status up to 2015 Evaluation of trends in water demand & supply Focus on changes in: General socio-economic variables (e.g. population) Economic growth of main sectors implementation of planned investments Hydrological and socio-economic drivers

Baseline Scenario: policy areas to be investigated Exogenous drivers (population growth, general economic development, technological changes, changes in taxes/fiscal regime) Water policies and investments (estimated investment in water supply/wastewater treatment, changes in water pricing policies, etc.) Macroeconomic policies (past trends & future projections: agricultural, energy, industrial, transport policy, etc.) Global policies (impact of (pre-)accession to the EU on key economic sectors, WTO/GATS, etc.)

To do s For each of the four policy areas, we need to investigate: Source, quality/reliability, method used for projecting, projected timeframe; For each parameter/ policy projection: adapt available projections to the Neretva If not available: develop estimations based on expert judgment Based on this work: develop overall estimations on future water demand and expected pressures on water resources (quantity/quality) in the Neretva

To do s Source: Who provides the projections? Quality: Based on e.g. assessment of method used; ranked from 1 (excellent) to 5 (poor), Subjective; Method: Description of employed methods; Timeframe: Projection period (e.g. 2002-2020; 18 years). Responsible Authority - Overall BLS For more detailed discussion: let s check the draft template as well as the BiH-report on available information Reactions by the WG members?

Thank you for listening! Eduard Interwies Interwies@intersus.eu

WFD-requirements on the economic importance of water uses presentation of the work to be done/template for the Neretva Eduard Interwies InterSus Sustainability Services WWF-Living Neretva Project WFD & Economics workshop 3-4 April 2008 Sarajevo, BiH

Some overall issues regarding the template General issues for consideration for all topics/indicators: Time: indicate the latest year for which the specific type of information is available as well as the periodicity of the update Indicate source We need summary table, but also written text

Some overall issues regarding the template General issues for consideration for all topics/indicators: Issue of scale: where is information available at? Specific focus: check for Neretva-specific information (talk also to local authorities!) If information available at higher level than the Neretva: check if hydrological restructuring/disaggregation is possible; if not: assess if deviations exist for the Neretva Basin as compared to higher level information; provide estimations (at least same-higher-lower ) If information not available: provide expert judgment estimations indicate clearly! Quality evaluation of information

Economic Importance of Water Uses: Role within the Economic Analysis Assess the importance of water for the economy and the socio-economic development of the River Basin (RB) / sub-basin Provide the RB s economic profile in terms of general indicators (e.g.: population, GDP, etc.) Pave the way for: Assessment of significant water management issues Cost-effectiveness analysis

Main Groups of Indicators to be investigated General socio-economic indicators: population, GDP, rate of economic growth, monthly net average income, (un)employment etc. Characteristics of water services: total water production, water supply (also self-supply), leakage rate & wastewater treatment, other services, publicly collected wastewater (households), water supply to agriculture Characteristics of water uses: e.g. agriculture, industry, hydropower, navigation/transport, gravel extraction, tourism, etc. For each of the three indicator groups, need to investigate: Availability, quality, scale, hydrological restructuring; If not available: develop estimations based on expert judgment

To do s Availability: Periodicity of update, most recent figure available, scale; Quality: Ranking from 1 (excellent) to 5 (poor), Subjective; Source Hydrological Restructuring: in how far is restructuring of available information according to hydrological boundaries possible in order to get information for the Neretva; IF NOT: develop expert judgements (see above) Identified gaps & necessary measures (for BiH, for the Neretva-project within the next phases)

To do s For more detailed discussion: let s check the draft template as well as the BiH-report on available information Reactions by the WG members?

Thank you for listening! Eduard Interwies Interwies@intersus.eu

Zakoni o vodama BiH 1

2 TRANSPOZICIJA u FBiH Godina podatka 2007 Progres 520/625 (83 %) Potpuna transpozicija još nije određeno Preostaje npr. u članu 2, članu 4(9) i aneksima VIII-X Konačna transpozicija 2009 vladinom uredbom?

3 TRANSPOZICIJA u RS Godina podatka 2007 Progres 605/625 (97 %) Potpuna transpozicija još nije određeno Transpozicija gotovo dovršena, kroz Zakon o vodama 50/06 i Odluku 98/06 o granicama vodnih tijela Dvije definicije Direktive nisu još transponirane, o transitional i obalnim vodama (jer ih i nema u RS). Član 11 (6) WFD Po kome izvođenje člana 11(3) osnovne mjere ne moraju voditi ka povećanom zagađenju površinskih voda, također nije transponiran.

EKONOMSKI ASPEKT - FBiH 4 Čl. 3 - ekonomskog vrednovanja voda koje uključuje troškove opterećenja, zaštite i uređenja voda i zaštite od štetnog djelovanja voda; Čl 25, RBMP sadrži pregled ekonomskih analiza korištenja voda; Čl 45, Vlada FBiH donosi propis o postupku provođenja ekonomske analize korištenja voda; Čl. 99 ISV sadrži - demografski, sociološki i ekonomski podaci.

5 EKONOMSKI ASPEKT - RS Čl. 3 upravljanje vodama zasnovano na načelima... osigurati povrat troškova od vodnih usluga, uključujući i troškove za zaštitu životne sredine i resursa, shodno ekonomskoj analizi provedenoj prema Aneksu 3 WFD EU i, naročito, prema načelu,,zagađivač plaća ; Čl 26, RBMP sadrži rezime ekonomskih analiza korištenja vode; Čl 27 Program mjera uzima u obzir rezultate ekonomskih analiza; Čl 30 Agencija priprema ekonomsku analizu korištenja voda;

The role of the economic analysis: setting the scene for later work on the implementation of the WFD Eduard Interwies InterSus Sustainability Services WWF-Living Neretva Project WFD & Economics workshop 3-4 April 2008 Sarajevo, BiH

Content [Economic elements of the WFD towards 2009 RBMP: see last presentation] What does the economic analysis need to contain as a preparatory step? Specification of content based on the WATECO-document Some words on the current implementation status across Europe

Defining penalties Implementing programme of measures Evaluating impacts of programme Analysing water uses, pressures, impacts Economic importance of water uses Cost recovery Assessment Supply& demand trends/baseline Scenario Environmental objectives Costs & benefits of measures Defining less stringent objectives, time exemptions, HMWB, new modifications Justification of cost-recovery levels Justifying potential exemptions Identifying potential measures Identifying programme of Identification of a costeffective programme of measures measures Assessing the role of pricing as measure (incentive) WWF-Living Neretva Project - WFD Measures & Economics to improve workshop cost recovery

Requirements of the WFD for 2004 (economic analysis) Starting point: For each river basin: 1. analysis of characteristics 2. review of the impact of human activities on water bodies 3. economic analysis of water uses (according to Article 5, Annex II, III and V) In BiH: deadline for econ analysis is 2010 (?): we can do important path finding work on the example of the Neretva!

Practical implementation In order to clarify main issues & provide support for the implementation: Various working groups within the CIS-process (Common Implementation Strategy) producing Information Sheets on economics etc.; therein, Main Guidance document on economic aspects of the WFD prepared by the WATer ECOnomics working group (WATECO) in 2003 (can be found at http://circa.europa.eu/public/irc/env/wfd/library)

Economic importance of water uses Link to the pressures and impacts analysis in order to identify the main water uses of importance; WATECO-document presents the kind of information to be collected for the different water uses (see template); Only the significant water uses need to be worked upon! For Neretva/our project: the P & I analysis will take place in the next phase(s), so we need expert judgements on which of the potential water uses are the significant ones! (to be possibly revised later when we have the results of the P & I analysis)

Baseline scenario Important specification of the WFD-spirit based on the requirements of Annex III of long term forecasts of supply and demand for water & forecasts water service investments Understanding that prospective thinking is necessary! (WATECO, Water Directors) 3-Step approach developed

WATECO Guidance 3-step-approach: Step 1 (2004-07): complement the characterization of the river basin today by an assessment of its future likely trends using projections for 2015 (baseline scenario); Step 2 (2007): Assessment of risk to fail environmental objectives ( Gap analysis -Risk of non-compliance); Step 3 (2009): Choosing cost-effective measures, assessing exemptions, approaching cost recovery. Specific role of economics: project significant trends in key indicators & (policy and economic) drivers up to 2015, contribute to a Business As Usual Scenario for pressures: what would happen without the WFD, including completion of other EU-Directives

Baseline scenario (04-05) Description of the initial situation Baseline scenario: projection for 2015 Focus on economic aspects: estimate the economic "weight" of water uses Baseline and scenario: services appraisal of evolutions of uses, pressures... assess the level of recovery of costs of water identification of potential gaps in water status services with GES

WATECO Guidance & Cost Recovery Adequate contribution to the recovery of the costs of water services Financial costs WATER SERVICES Environmental costs Resource costs WATER USES Industry Households Agriculture

Preparing the selection of measures According to WATECO, it is not required for the first economic analysis to have developed the full methodology/provide all necessary information for the later selection of measures; At the same time, preparations have to take place, e.g.: collecting available information on costs of measures, possible methodological approaches developed/under development, measures under consideration that would affect the environmental status and their related information, e.g. aims, costs etc. (of special importance for the Neretva: possible new dams?)

Current implementation status in the EU Characterization reports economic analysis prepared (almost all ) in 2004/05; evaluation of EU-COM showed room for improvement up to 2009; Intense work currently across Europe on the next steps: - preparing the selection of measures (focus!); - preparing methodologies for assessing potential exemptions; - revising water pricing structures; - international coordination of River Basin Management Plans; - etc.

Current implementation status Main challenges/issues right now in the EU: - definition of w. uses & w. services; - linking WFD implementation to climate change (& scarcity) (BLS!); - assessing Environmental & Resource costs - assessing disproportional costs for exemptions: which role for affordability?

Concluding remarks The WFD implementation process so far showed the advantages of the systematic integration of economics into water management: transparency & lively discussions ; Still, the challenges are considerable, but progress is made! Public participation is key, both for better knowledge basis as well as acceptance of results For BiH/Neretva: some time for conducting the overall economic analysis according to the water law (2010) but due to the specific difficulties work at national/regional level has to start early! So: good work from us on the Neretva will have a lot of added value for this future work!

Thank you for listening! Eduard Interwies Interwies@intersus.eu

EU WFD & Economics Requirements and Objectives towards the River Basin Management Plans and Programmes of Measures Eduard Interwies InterSus Sustainability Services WWF-Living Neretva Project WFD & Economics workshop 3-4 April 2008 Sarajevo, BiH

Content The WFD & Economics Economic elements of the WFD towards 2009 RBMP: Objectives, Requirements regarding: Prospective approach: Baseline scenario Selection of measures considering cost-effectiveness analysis (Art. 11) Cost recovery/incentive pricing (Art. 9) Exemptions Art. 4: disproportionality/cost-benefit analysis

Overview: role of Economics in the overall WFD process 1. Baseline scenario: considering changes of significance for WFD-measures selection/rbmp up to 2015 2. Selecting the most cost-effective set of measures to reach the environmental aims 3a. Cost recovery (including internalization of environmental & resource costs of water services) 3b. Economic incentives for rational water use 4. Assessing different exemptions under Article 4 ( disproportionate costs etc.); including HMWB, new modifications

1. Baseline Scenario Starting point: Annex III: The economic analysis shall contain enough information in sufficient detail ( ) to: (a) make the relevant calculations necessary for taking into account ( ) the principle of the cost recovery of water services, taking account of long term forecasts of supply and demand for water in the RBD and, where necessary: - estimates of the volume, prices and costs associated with water services; - estimates of relevant investment including forecasts of such investments. Has been specified by WATECO/W. Directors see later ppt

2. Selection of measures (Art. 11) [...] (b) make judgments about the most cost effective combination of measures in respect of water uses to be included in the programme of measures under Art. 11 based on estimates of the potential costs of such measures (Annex III). Regarding timing in BiH: draft (?) RBMP including programs of measures due 2012, final by 2015?

3a. Cost recovery (Art. 9) Member States shall take account of the principle of recovery of the costs of water services, including environmental and resource costs [...] and in accordance in particular with the polluter pays principle. Member States shall ensure by 2010: an adequate contribution of the different water uses, disaggregated into a least industry, households and agriculture, to the recovery of the costs of water services (Art. 9 (1)).

3a. Social and reasonable Cost Recovery (Art. 9) Member States may in so doing have regard to the social, environmental and economic effects of the recovery as well as the geographic and climatic conditions of the region or regions affected (Art. 9 (1)). important, realistic restriction of the cost recovery principle: room for interpretation; political consensus through transparency; cost recovery levels reached & contribution by water uses to these costs need to be justified!

3b. Incentive pricing (Art. 9) Member States shall ensure by 2010: that water pricing policies provide adequate incentives for users to use water resources efficiently, and thereby contribute to the environmental objectives of this Directive (Art. 9 (1)). Setting of incentives (e.g. through pricing) can be a costeffective measure for reaching the WFD-objectives

4. Justifying potential exemptions (Art. 4) Possible to lower environmental objectives, apply for time exemptions, designate HMWBs; Number of conditions to be met, of relevance for all: disproportionality of costs! Use of cost-benefit analysis Of importance also for new modifications! (Art. 4.7: The beneficial objectives served by those modifications or alterations of the water body cannot for reasons of technical feasibility or disproportionate cost be achieved by other means, which are a significantly better environmental option. )

Requirements of the WFD for 2004 Starting point for this integration of economics in WFD implementation: For each river basin: 1. analysis of characteristics 2. review of the impact of human activities on water bodies 3. economic analysis of water uses (according to Article 5, Annex II, III and V) This economic analysis will be our main focus in the Neretva WG economics but always keeping in mind why we are doing this work (see above)!

Thank you for listening! Eduard Interwies Interwies@intersus.eu

1 LIVING NERETVA - ŽIVJETI NERETVU Phase I / Faza I - 2007.

2 CILJ PROJEKTA Opći cilj (vizija) projekta je osiguranje zaštite prirode i održivog razvoja u području sliva rijeke Neretve, kao osnove za dugoročni napredak u regiji Direktni cilj projekta je doprinijeti razvoju integralnog upravljanja slivom Neretve, u oblasti povezivanja upravljanja vodama i zaštite bioraznolikosti Upravljati prirodnim resursima sliva Neretve sukladno principima i kriterijima Okvirne direktive o vodama (WFD) i Direktive o staništima (HD)

3 AKTIVNOSTI PROJEKTA Formiranje radnih grupa (WG): HD-WG sa ciljem utvrđivanja najbolje metodologije i akcionog plana za identificiranje vrijednosti bioraznolikosti i hotspots u slivu Neretve, sukladno standardima HD WFD-WG1 sa ciljem utvrđivanja najbolje metodologije i akcionog plana za identificiranje ekološkog protoka (i odnosnog upravljanja vodama) koji će očuvati prirodne karakteristike rijeke WFD-WG2 sa ciljem utvrđivanja najbolje metodologije i akcionog plana za identificiranje ekonomske /gospodarstvene vrijednosti različitih mogućnosti upravljanja vodama i okolišnih potencijala Neretve

4 REZULTATI I FAZE WFD-WG2 je odredila najbolju metodologiju i akcioni plan za procjenu gospodarstvenih vrijednosti različitih opcija upravljanja vodama Platforma različitih sudionika je inicirana i poznati su najvažniji problemi, u svezi sa vodom, stanovnika u slivu

5 LIVING NERETVA - ŽIVJETI NERETVU Phase II / Faza II 1.1.-30.6.2008.

6 LN II AKTIVNOSTI Radna grupa: Ekonomska procjena sukladno zahtjevima WFD Socio-ekonomska procjena korisnika i uporabe vode u slivu Neretve (sukladno WFD) Ekonomska analiza uporabe vode (sukladno WFD)

7 LN II CILJEVI Izbor cost-effective mjera; Razvoj cjelovitog baseline scenarija (uzeti u obzir utjecaje poput klimatskih promjena, rasta stanovništva, promjene korištenja vode, razvoj poljoproiivrede i sl.); Procjena disproporcionalnosti troškova izvjesnih mjera, koje vode izuzecima od cilja postizanja dobrog ekološkog statusa (WFD čl. 4); Procjena socio-ekonomskih kriterija koji mogu voditi ka definiranju HMWB (jako modificirano vodno tijelo) i procjena mogućih novih modifikacija koje vode pogoršanju statusa; Implementacija zahtjeva iz čl. 9 pokrivanje troškova, uključujuću troškove okoliša i resursa, zagađivač plaća.

8 LN II FOKUS Prikupiti sve relevantne informacije, na temelju prethodne faze (financijske informacije o uslugama vodoopskrbe i odvodnje otp. voda, hidroenergiji, ekonomskom značaju korištenja vode, odnosima između pritisaka i utjecaja itd.); Kada informacije ne postoje samo za sliv Neretve, ali se mogu naći na višoj razini, izvršiti diobu za sliv Neretve; Ako informacije nisu dostupne izvršiti ekspertne procjene (procedura uključuje kontatke sa relevantnom administracijom); Izvještaj će biti sukladan zahtjevima Zakona o vodama FBiH i RS te člana 5 WFD.

9 LN - MOGUĆI NASTAVAK Terenska istraživanja u cilju dobijanja nedostajućih podataka; Dubinska analiza informacija prikupljenih u prethodnim fazama, radi njihove integracije u pripremu RBMP; Kompletiranje cjelovitog baseline scenarija; Povezivanje sa rezultatima analize rizika, radi razumijevanja pojavnih problema u raznim vodnim tijelima koji otežavaju dosticanje ciljeva WFD; Razvoj metodologije odnosne na specifična, centralna pitanja pripreme RBMP; izbor kriterija za cost-effectiveness, procjena disproporcionalnosti troškova (za izuzetke od ciljeva WFD), procjena okolišnih i troškova resursa na razini sliva, i sl. (zadatak koji se sada vrši u EU). Razmatranje prekograničnih utjecaja i zahtjeva za koordinaciju (ekonomski aspekt).

10 LN - MOGUĆI NASTAVAK... Praktičan izbor cost-effective mjera; Evaluacija mogućih izuzetaka (koristeći CBA)/ disproporcionalnost troškova ; Evaluacija određivanja HMWB-a i mogućih novih modifikacija (koje vode pogoršanju statusa vodnog tijela); Primjena zahtjeva člana 9 WFD koji se tiču pokrivanja troškova (uključujući troškove okoliša i resursa).

The EU WFD: short introduction to the overall approach of the Directive Eduard Interwies InterSus Sustainability Services WWF-Living Neretva Project WFD & Economics workshop 3-4 April 2008 Sarajevo, BiH

The WFD: a new step forward The EU moved from sectoral, fragmented approaches (Urban Wastewater, Groundwater Directives etc.) to a integrated approach; Water Framework Directive (WFD, 2000): covers all existing Directives, but gives an overall framework ( umbrella ) for dealing with integrated water management Challenges also for old Member States, of course also for new and future Members

Main elements of the EU- WFD Clear environmental objectives, monitoring requirements, deadlines for implementation: no old-fashioned emission limits, but consideration of the environmental situation of the water bodies; So: env. Objectives do not only include chemical status, but also biological/environmental elements; Thus: increased importance of morphological alternations affecting the water biology Integrated approach! Clear requirements for closing information gaps (monitoring) as well as specific deadlines (producing pressure.)

Main elements of the EU- WFD Administration/integrated planning according to River Basins: Challenge for existing institutional structures, both on: The spatial dimension: cooperation of different levels within a State/a specific River Basin; The policy areas dimension: exchange/ cooperation / coordinated planning of different ministries/authorities required: water, environment, agriculture, economics, spatial planning, energy etc. etc.

Main elements of the EU- WFD Focus on transboundary management of River Basins (see e.g. Danube-ICPDR): Formerly, each National State managed its waters (mostly) based on the own interests/strategies; Now, exchange and common planning is required, integrating the upstream-downstream relationships in a River Basin; Long way to go for true integration, but information exchange based on common methodological approaches is being pushed forward

Main elements of the EU- WFD Explicit consideration of public participation: In the overall context of new European legislation (Aarhus-convention), the WFD explicitly requires public participation in the planning process! Public information, public consultation (of already finalized plans ) not sufficient! Not easy to implement due to the different levels in which the participation should take place, tight implementation schedules etc., but important for increasing acceptance of solutions and feeding the planning process with more (stakeholder) information & knowledge

Main elements of the EU- WFD Special (innovative) consideration of economic aspects: our focus today! Overall: WFD major step forward in EU water legislation; Challenges for implementation due to new approaches and methodologies and required institutional rearrangements and additional financing; BiH: has adopted the new Water Law that is closely linked to the WFD provisions: good basis for better water management!

Thank you for listening! Eduard Interwies Interwies@intersus.eu

Main aims of meeting Get to know each other work together! Provide an introduction to WFD-economics, esp. linked to the situation in BiH/the new water law Set our current phase II-project into the overall context of the WWF- Living Neretva -project and the future work to be done in BiH on WFD-economics Specify the work to be done by the WG economics over the coming months (phase II until end of June)

The aims of the WG work Our final aim: a report on WFD-economics in the Neretva basin based on the BiH-water laws Draft of the template for this work provided: to be presented, discussed and clarified Overall aims of our work: Collect all available information for the Neretva basin, (based on the preparatory work done in phase I, other projects etc.); when data are not available at Neretva basin scale: investigate also information available at higher aggregation levels (e.g. the whole BiH or the two entities); disaggregate down to the scale of the Neretva Basin;

The aims of the WG work Overall aims of our work: If disaggregation not possible: assess if deviations exist for the Neretva Basin as compared to higher level information; provide estimations for these deviations based on expert judgment (e.g. agricultural production trend being different for the Neretva as compared to the whole of BiH etc., but with remark that these data are addressed with such procedure); If any data needed is definitely not available by previously mentioned procedures: develop expert judgment estimations; also through interviews with specific experts or the State Institutions/Ministries (with remark that these data are estimated based on expert judgments );

The aims of the WG work Overall aims of our work: Identify work to be done on WFD-economics in next phases of the WWF-Neretva-project: identify the additional data needs for full implementation & way to obtain this information: propose field surveys (within time & budget)! Our work will follow closely the requirements of Water Laws of FBiH and RS (that are harmonized at high level with EU WFD), and specific requirements of the Article 5 economic analysis! Of value also for the work that needs to be conducted for the implementation of the new Water Laws in BiH (where the Art. 5 economic analysis due 2010 - not specifically written in laws?). Overall: ambitious, but possible with the expertise in the room! More details to be discussed during the next two days.

Thank you for listening! Eduard Interwies Interwies@intersus.eu