Экономические науки / 13. Региональная экономика
Cherednichenko I.G.
Public
institution “Institute of environmental economics and sustainable development
of national academy of sciences of Ukraine”, Ukraine
Sources
of funding for water supply projects and programs for water conservation in the
Dnieper basin
Dnieper
is the main water artery of Ukraine. The water intake area of Dnieper is 504,
000 km2, of which 19 % is Russian, and 23% Belarusian territory. By
the channels Dnieper-Donbass, North Crimean, Kakhovsky and the watercourses
Dnieper-Kirovograd, Dnieper-Mykolaiv, 3-6 km3 of water flow are
redeployed outside the basin area. The main industrial output with a
predominance of metallurgical, chemical and coal industries, the largest power
facilities and irrigated lands are concentrated in the Dnieper basin where
local water resources are substantially lower than the requirements in them.
According to our data, the Dnieper’s
water resources cover 64% of national needs, including 69% of industry, 76% of energy, 63% of
iron and steel industry, 50% of chemistry and petrochemistry, 66% of
agriculture (of which 79% for irrigation of lands) and 50% of municipal needs.
The largest pressure on the water
resources is at the section from Dniprodzerzhynsk hydro-electric power
station to the Dnieper estuary. Here the non-recoverable water withdrawal
amounts to nearly 75%, and the discharge of polluted waters to 82% of their
overall volume in the basin. The main volume of the non-recoverable water
withdrawal is generated in the Dnipropetrovsk (14%) and Kherson (23%) regions
as well at the water transmission by channels. The industrial enterprises of
the Dnipropetrovsk and Zaporizhia regions are responsible for the majority of pollution of the water resources
of Dnieper; they account for some 70% of the polluted effluents in the basin.
Consequently,
the problem of water supply to the water users in basin in the required
quantity and of the specified quality is of national and international
importance. Thus, in our opinion, it would be logical to conduct an analysis of
systems of financial support for the water economic complex in the countries located
within the Dnieper river basin.
The Nationwide
target programme of the water management and environmental rehabilitation of the Dnieper river basin for
the period till 2021 maintains that the measures financing is carried out at
the expense of state and local budgets as well as of other sources
not prohibited by law. The scope of financing is determined annually during
preparation of the draft law on the
State Budget of
Ukraine
for the respective year taking into
account the real possibilities
of the state budget.
In accordance with the data of the Water strategy of Ukraine for the
period of 2011-2020 years, it is envisaged to finance
measures as to the modernization of the water-economic complex at the expense
of the state budget, local budgets and extra-budgetary funds [1].
In parallel with the financing of the goals of the state level, it is
planned to support the regions in the exercise of their authority in the sphere of ensuring the safety of hydropower
facilities. In doing so, it is necessary to enhance the effectiveness of the budget expenditures that are effected in the form
of subsidies.
In the context of the financial implementation of certain state authorities in the domain of water relations delegated to the local government bodies, the measures that are financed at the expense of the
local budgets are secured by the respective increase of the amount of government
funding. At the same time, the said increase can be partly achieved
also at the expense of the budgetary redeployments.
The cost structure and main financing directions will be reviewed at
various stages of the implementation of this Strategy, owing to the focused
objectives designed to stimulate the attraction of private investments into the water and reclamation complex and
improvement of distribution of authorities.
The extra-budgetary funds of predominantly business origin will
be used for the introduction of the water reuse and water recycling and circuit
systems, reconstruction of wastewater treatment facilities with implementation of innovative technologies.
Stimulating attraction of private investments into
the water sector, also with a view to create the water reuse and water
recycling and circuit systems, reconstruction and modernization of wastewater
treatment facilities with implementation
of innovative
technologies shall be carried
out through the provision of the state support in the following
forms:
Subsidizing interest
rates on loans taken
out by water users for the implementation of the projects related to
introduction of clean technologies and rational water use;
Granting of state guarantees for
loans attracted by water users and used for financing of the
investments into the water sector;
Establishing of grace periods for
payments for the use of the water objects for the water users which
implement investments into innovations into the water-economic complex;
Granting of publicly funded loans
to water users.
Therefore,
it is possible to draw a conclusion
that the main source to cover the expenses for the modernization of the
WEC are inter-budgetary transfers
and increased tariffs for the water supply and wastewater disposal services for
various groups of water users, resulting in the increase of social tension and
reduction in the quality of services provided, taking into account the norms of
the Ukrainian legislation as to the access of the citizens to good quality
drinking water.
The
availability of general water resources during the average water year in Belarus
is 5,8 thou m3 per capita,
in Europe as a whole – 4,6, in Poland and Ukraine – 1,7, and in the same time
in Russia – 30 thou m3. The
sources to meet the expenses of the modernization of the water supply and
sewerage complex in the Republic of Belarus are funds of local budgets and
private investors subject to provision for them of the appropriate conditions. Thus,
А. Gurynovych stresses that the modernization and development of the WEC
should be carried out in conformity with the estimate indicators of the master
plans of development of area, building and sanitary laws and regulations as
well as with the environmental requirements, taking into account the
reliability of the said systems under influence of destabilizing factors of natural and technogenic
origin. Pursuant to the Water Code and the Law of the Republic of
Belarus “About drinking water supply”, the general government bodies, local Councils of deputies, executive and administrative
bodies “should carry out development of programmes, planning of measures as to
the rational use and protection of water”, “development and implementation of
targeted territorial programmes and plans of actions in relation to creation,
maintenance and development of the
drinking water supply systems, improvement of the quality of drinking water and its rational use, protection
of the sources of drinking water supply
against contamination, obstruction and depletion, and of the drinking water supply systems
against damage”, as well as “elaboration of the respective sections in the
projects of social and economic
development”. The above-mentioned provisions of the laws are not
executed due to the absence of technical normative laws and regulations that
would define the methodology, procedure of drafting, coordination and approval
of targeted territorial programmes aimed at creation and development of the drinking water supply system, improvement
of the quality of drinking water
and its rational use, protection of the sources of drinking water supply against contamination, obstruction and
depletion. The main emphasis as to the development of measures of state support
for the financial rehabilitation of the WEC enterprises should be put on the formation of the
market-based mechanisms of
financing of the investment projects in the water supply and wastewater
disposal sector [2].
The
Water Code of the Republic (Chapter 20, p. 82) stipulates that financing of
programmes and measures as to the rational use and protection of water is
implemented at the expense of: the Republican and local budgets; the Republican
and local budgetary targeted conservation foundations; funds of legal and
natural persons; banking loans; voluntary
contributions of legal and natural persons, including foreign ones, public associations; other sources.
The water strategy of the Republic of Belarus for the period till 2020
maintains that the harmonization of the
legislation of EU countries will assist in increase in the image and attractiveness of the country for
increased investments into the country’s economy.
Consequently,
the financing of the modernization of the water-economic complex of Belarus is
secured by the international banking institutions (IBRD – Water Supply and
Sanitation Project (ID P146493) – overall value 90 million of unit of exchange)
and budgets of various levels and is characterized by the strenuous
centralization of decision making as to allocation of resources by the responsible state authorities.
The financing of the water-economic complex of the Russian Federation is based on the targeted
programme approach that was commonly used in the Soviet Union, at
the same time, data on investments are publicly available [3], which is a sign
of a European approach to the solution of the water problems. As indicated in
the Programme [3], the Russian Federation is among the best resourced countries
in the world in terms of water (20% of the
world reserve of ground freshwater).
The availability of the water resources across the country amounts to
30,2 thou cu m per capita p.a. which greatly exceeds a minimum established by the United Nations
necessary to meet the demands – 1,7 thou cu m. However, these
resources are distributed across the country’s territory very unevenly. In the
developed regions of the European part of Russia where more than 70% of
population and productive capacity are concentrated, only 10% of water
resources are found.
Analysis of possible options to resolve the problem of
financing the water-economic complex with the use of a targeted planning method
is presented in the Concept of the federal targeted Programme “Development of
water-economic complex of the Russian Federation in 2012-2020” which has been approved by the
decision of the Government of the Russian Federation of 28 July 2011 No. 1316-р. During
elaboration of the Programme, two options of development of the water-economic
complex of Russia were considered.
The implementation of the inertia scenario provides for ensuring of water management goals
and the use of existing instruments
for public support to construction,
reconstruction and repair of the water management infrastructure facilities.
The modernization
scenario of the development of the water-economic
complex provides for comprehensive water management activities relating to
renewal and protection of the water facilities, overcoming local water deficit in certain regions
of the Russian Federation, reduction in a number of unserviceable hydraulic
engineering structures, including those without an owner as well as to
development and modernization of the state supervisory network.
As an economic stimulus measure for attracting private
investments to implement the above-mentioned activities, it is planned to use
the instrument of subsidizing interest rates
on loans obtained for implementation of the investment projects
as to construction and reconstruction of sewage treatment facilities and
introduction of water reuse and water recycling and circuit systems. The subsidy instrument provides for covering of a part of interest
payments for the use of the borrowed funds at the expense of the budget funds
in the amount of 3/4 of refinancing rate established by the Bank of Russia.
It is specified in the programme [3] that the
expenditures of budgets of the Russian Federation’ subjects and municipal
entities for carrying out activities in the area of water resources amounted in
2008 to 9,4 billion rubles, in 2009 to 9,9 billion rubles, in
2010 to 8,1 billion rubles inclusive of the subsidies mentioned
as well as subventions for the delegated authorities of the Russian Federation
in the sphere of water relations. At the expense of budgetary appropriations of
the Russian Federation’s subjects and municipal entities, the financial
provision of fulfillment expenditure responsibilities was carried out. However, these costs
did not exceed 15-20% of value of measures conducted.
In general, in our opinion, the financing system of
the water-economic complex of the Russian Federation is of two-fold nature; on
the one hand, more rights are granted to the municipal entities which is
confirmed by the source [4, p.4], and on the other hand – all projects require
approval at the highest level, considerably complicating their introduction due
to disparity of interests of federal and local authorities which is confirmed
in the sources [4,p.3; 5, p.4]. It is obvious that, on the one hand, Russia
aspires to an innovative development of its water-economic complex where
interests of a personality will be primary, but on the other hand, it tries to
maintain the hierarchical system of financing the water-economic complex of the
Soviet Union where the interests of the state are predominant, which is quite
logical taking into consideration the uneven distribution of water resources.
The
accomplished analysis of the financial provision systems in the countries of
the Dnieper basin has shown that the process of a systemic reorganization of
approaches to financing the activities as to the implementation of the approved
programmes of rational use, renewal and protection of water resources continues
in all countries, however, in general the main source is the state budget and
funds of international financial organizations.
References :
1.
Водна стратегія України на період 2011-2020 років (проект). Розроблено Інститутом водних проблем і меліорації НААН (М.І.
Ромащенко, д.-р. техн. наук, проф., акад. НААН; П.І.Коваленко, д.-р. техн.
наук, проф., акад. НААН Ю.О.Михайлов, д.-р. техн. наук) та Держводагентством
України (В.А. Сташук д.-р. техн. наук, М..Я. Бабич). [Електронний ресурс] – К.: ІГіМ НААН, 2010, Режим доступу – http://www.scwm.gov.ua/fls/vdr.htm
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3.
Программа
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годах" [Електронний ресурс] // Федеральные целевые программы России – Режим доступу –
http://fcp.economy.gov.ru/cgi-bin/cis/fcp.cgi/Fcp/ViewFcp/View/2014/403/
4.
Банщиков М.
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Муниципалитет. – 2013.– №1. – С.3-6.
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Банщиков М.
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муниципального управления. Доклад. [Електронний ресурс] – Режим доступу –
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