Water service development

After the Czech Republic´s integration into the European Union (thereinafter as EU) there were and also there will be several legislative changes that will markedly influence the water service segment and in consequence the considerable investment into the water management infrastructure will be required.

Within the frame of the preparation of the Czech Republic for the accession to the EU the Regional plan of implementation (RPI) was made. This plan describes the current and the future stage in the section of drinking water supply, waste water treatment and sewage water treatment with regard to EU norms and already accepted harmonised legal regulations of the Czech Republic (by passing the act No. 20/2004 Coll. the water act was changed; the act No. 274/2003 Coll. on water supply and sewerage networks; Ministry of Agriculture public notice No. 428/2001 Coll.; government order No. 61/2003 Coll. on the indicators of the acceptable impure surface and sewage water; Ministry of Health public notice No. 20/2004 Coll. determines the requirements for drinking water;…).

At the same time the development documents of the newly originated districts (Development policy of water supply and sewerage of the district)) were done and this should be in agreement with Implementation plan. In the course of the conditions´ negotiation on EU accession to the EU, the Czech Republic asked for the transitional period in the sphere of water protection in order to be able to meet the Council Directive´s requirements No. 91/271/EHS on the municipal waste water treatment and the Council Directive No. 98/83/EC on the water quality destined for public cunsumption. Negotiations on the environment were closed due to the Common position of EU and CR with the vote of agreement with the transitional period until 2010, whereas the requirements for the water management infrastructure for this transitional period can be characterized in the following way:

• collection systems (sewage conduit systems) for municipal waste water have to be constructed in agglomeration with more than 2.000 inhabitants
• secondary treatment in agglomeration larger than 2.000 EI
• a more strict water treatment has to be ensured in agglomeration larger than 10.000 EI
• In agglomeration smaller than 2.000 EI wate water entering the collection systems has to be liable to the suitable treatment
• Drinking water quality has to be in accordance with the Council Directive No. 98/83/ ES on drinking water

Fulfilment of the Czech an European legislation is one of the main goals of the business plan until the year 2010 and it creates the framework for a statement of strategic measures which are the part of the business plan. Implementation of such conceived development is not able to be ensured only due to own company resources, it is necessary to take advantage of cohesive and structural funds which are the main attributes of regional structural policy of the European Union. Most of the strategic measures dealing with waste-water discharge and waste-water treatment were included in one of the prepared projects (Cohesive Fund „Pure Ploučnice“, „Lower Labe“- project application form) or in the realized ones (ISPA/ Cohesive Fund „Pokrušnohoří“ – execution of a work, Cohesive Fund „Lužická Nisa“ – European Commission decision about help and support). The investment preparation dealing with drinking water quality was prefaced.

The next objective of the business plan until 2010 is the property renewal, especially the renewal of water supply and sewarage networks and objects there. The property renewal was not done systematically and sufficiently in the past, this situation will be gradually improving. Processed studies of water-supply and sewerage system renewal analysed the situation. Now there is the necessity to develop the analytical part into the long-term property renewal plan with clear-cut aims and preferences and then start the progressive implementation. In this respect it is required to check the possibilities of suitable funds asquistion as well.

The other objective of the business plan until 2010 is the property development without the legislative requirements and the reasonable company expansion. Development except the strategic measures will be realized by SVS or by its shareholders in a financial support of company (new Surrender rules of water management infrastructure (cofinancing), which are effective from 1st January 2005.) Expansion will be realized by means of acquisitions (financial, property), whose financing will be separated from financing of acquisiton of water management infrastructure and for them there will not be any long-term exploitation of own resources formed from the water price.

The company has the property shares in other companies : SčVK Inc., SVIS Ltd. And Středočeské vodárny Inc.

In spite of the fact that the business company plan was not approved by the assembly until 2005, the advance workings dealing with measures pointing in its consequence to the fulfilment of above mentioned objectives were being in progress and they are still.