This summer Croatia will be the second of the former Yugoslavian
countries to join the European Union, after a 10 year struggle. EU
membership of course means European governance when it comes to water
management. Jeremy Josephs looks at how the country is preparing for the
Water Framework Directive and opportunities for the global water
sector.
The small state of Croatia situated at the crossroads of
central Europe and the Mediterranean only came into being as a legal
entity in 1991. But no one would seek to dispute the fact that when it
comes to Croatia's accession to the European Union, it has been a
lengthy encounter. After more than 10 years of occasionally fraught
negotiations, the European Commission has finally given Croatia the
green light to join the EU on 1 July as the 28th member state.
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Croatia's stunning 1800 km of coastline helps contribute to the country's €6.61 billion generated through tourism alone | | |
Croatia will thus become the second of six former Yugoslav republics
to join the bloc, with Slovenia having been granted entry in 2004. But
Croatia's leaders are acutely aware that elaborate EU rights come
packaged together with onerous responsibilities - and nowhere is this
duality more apparent than in respect of the implementation of the Water
Framework Directive (WFD).
This landmark EU measure obliges members to achieve good qualitative
and quantitative status in respect of all water bodies (including marine
waters up to one nautical mile from shore) by 2015. Easier said than
done.
Croatian ecologists were initially up in arms, accusing their
government of deceiving and flaunting EU legislation, and going public
with the harsh accusation that Croatia's implementation of the WFD was
nothing more than "a dead letter" despite the fact that government in
Zagreb had moved swiftly and early on to transpose the WFD into national
legislation.
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Croatia recently teamed up with Montenegro to eliminate sea
pollution and thus further and more effectively protect the Adriatic
Sea. The EU assisted the project with a grant of over half a million
Euros |
"Water management in Croatia is far from sustainable", they
thundered, "and consists of redundant and extremely expensive
hydro-technical river regulations. This is typical old-fashioned water
management which disregards EU institutions and its legislation. Worst
of all, it appears that State agency for water management,
Hrvatskevodem, is accelerating all such activities to regulate as many
rivers and streams as possible prior to accession."
It was perhaps as well that Dr. Stephan von Keitz and his European
Twinning Team Project was able to issue a more upbeat assessment of
Croatia's WFD track record. They concluded that while there were
undoubtedly challenges ahead there was absolutely no reason at all why
the small but energetic Balkan state would not be able to strengthen the
institutional and administrative capacities of all stakeholders
involved.
In fact the truth was that when it came to the issue of EU accession,
ecological issues were relatively low down on the agenda. Rather, the
fight against organized crime and corruption in Croatia always taking
priority. Still, slowly but surely in the years prior to accession the
government in Zagreb, with support and assistance from Brussels, was
working away to ensure that water came to be seen as a valued natural
resource - an integral part of the aquatic and terrestrial eco-system.
Adriatic Coastline
When it comes to tourism, at least, this somewhat ambitious agenda
and occasionally rousing rhetoric has undoubtedly been far easier to get
across. For the very simple reason that tourism continues to dominate
the Croatian service sector, accounting for up to 20% of GDP. Annual
tourist industry income is now estimated at a massive €6.61 billion.
Much of this is attributable to Croatia's stunning 1800 km of coastline,
where the Adriatic brims with isolated beaches, watersport hotspots and
historic ports.
Which means that no degree in either hydrology or environmental
studies is required to realise that it is in almost every Croatian's
interests to ensure that the Adriatic becomes as pollution free as it
possibly can be. And precisely why Croatia recently teamed up with
Montenegro to eliminate sea pollution and thus further and more
effectively protect the Adriatic Sea. The EU assisted the project with a
grant of over half a million Euros. The objective is to control sewage
levels going into the sea and monitor overall water quality.
The French-based conglomerate and service provider Suez Environnement
is present in over 70 countries on five continents. Its arch rival
Veolia Environnement boasts a similarly impressive international
portfolio. Little wonder, therefore, that both had been closing
monitoring the rapidly evolving Croatian water service sector throughout
the many years that the EU accession talks were going on.
Six years ago, in fact, representatives from Suez were reported to
have visited the ancient Roman city of Split, interested in investing in
the public sector – not just in water but gas distribution too.
"Suez's ambitions apparently extend far beyond the city borders to
the whole of Croatia", the Transnational Institute of Water Justice
reported at the time. Clearly partisan in its approach, its readers were
informed that "the misinformed city government, influenced by business
interests, seems ready to generously offer property belonging to the
city to the French multinational".
Not that such one-sided reasoning would have deterred either French
group – but these early investment soundings happened to coincide with
what came to be known as the great Croatian privatisation controversy – a
phrase used to describe matters associated with mafia-style activity
which plunged the nascent Balkan republic into a severe economic
depression almost immediately after its creation.
Croatian Privatisation Cartel
There were dozens of incidents known collectively in Croatia as the
"privatisation robbery" (privatizacijska pljačka) when favoritism became
common. This was to the extent that the President had apparently
decided on a concept of some two hundred families controlling all
property in Croatia. Of course all of this was more than sufficient to
ensure that even the most enthusiastic investor would lay low and keep
his head down, at least for a while.
Still, it would be a brave person who would put money on either of
the French giants Veolia and Suez from returning to knock on Croatia's
potentially lucrative water sector doors. And in any event, their
various subsidiaries have already taken tentative steps in other
sectors, transport and energy included.
As Vanesa Vujanić from the Centre for Energy, Petroleum and Mineral
Law and Policy at the University of Dundee has pointed out, what is
likely to influence the ongoing tug of war between the public and
private sectors in relation to the Croatian water sector is not in fact
the WFD, believe it or not, but harmonisation with two specific water
utility directives – the Drinking Water Directive and the Urban Waste
Water Treatment Directive. Why these two in particular? Because their
implementation has been estimated to require some 4.5 billion euro's
worth of investments. That's right – billions, not millions.
Croatian tourism might indeed be doing very well indeed but even that
booming sector did not manage to prevent the country from reentering a
recession in 2012 with Zagreb cutting back significantly on spending on a
wide variety of programs. Moreover its high foreign debt, strained
state budget and over-reliance on tourism revenue are all likely to
combine to hinder future economic progress in both the short and medium
terms.
All of that to suggest that when it comes to the privatisation of the
Croatian water sector (and thus the entry of the major international
players – French or otherwise) it is highly unlikely to be the end of
the matter. Far from it, in fact.
Trans-border Cooperation
The Croatian capital Zagreb is located in the northwest of the
country, along the Sava river which is an integral part of the Black Sea
drainage basin. It is a little known fact that the Sava is one of the
longest rivers in Europe and among a handful of major European rivers
that do not drain directly into a sea.
One key initiative got underway in 2008 – the International Sava
River Basin Commission (SRBC) - which aims to promote trans-border
cooperation for the sustainable development of the region. The SRBC is
well placed to do this – since the Sava runs through Slovenia, Croatia,
Bosnia and Herzegovina and Serbia and is the most important Danube
tributary, adding almost 25% to the Danube's total discharge at their
meeting point in Belgrade. Significant pressures have been identified
within the basin, true enough, notably the fact that many agglomerations
within it have no, or insufficient, wastewater treatment and are
therefore key contributors to organic and nutrient pollution. But
despite these shortcomings it has been heralded as an example of how
cooperation and education can serve to solve regional water problems in
the Balkans.
Vladan Bozovic from neighbouring Montenegro's Biotechnical faculty is
in no doubt that good cooperation in respect of water issues is the way
forward: "People in our region should harmonise national water acts and
policies, improve development and implementation of legislation and
regulations in accordance with EU directives and policies, co-ordinate
management and protection of water basins including reservoirs for
hydropower plants, irrigation and rehabilitation of degraded areas
around water basins."
This is another example as to how the successful resolution of water issues can become a broader catalyst for peace.
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The walled city of Dubrovnik is known as the "pearl of the
Adriatic". With its new water management responsibilities after EU
accession, Croatia will want to keep it that way |
The question has to be raised of whether those responsible for
strategy and international investments at the Paris headquarters of both
Suez and Veolia - might dare to take a second look at the prospect of
the undoubtedly good returns waiting to be found out there in the key
Croatian cities of Zagreb, Split, Osijek, Zadar and Dubrovnik. For there
can surely be no doubt that there is much work to be done in both water
supply and sanitation and therefore good returns to be made.
Water Conservation Facts
By Zeljko Serdar,
President & CEO
Croatian Center of Renewable Energy Sources (CCRES)
2.5 gallons: The amount of water per person much of the world is allocated.
400
gallons: The amount of water per person used by the average American
citizen; 30 percent of this is used for outdoor purposes, such as
watering the lawn.
70 percent: The amount of worldwide water use that
is allocated to farming; most of these farming irrigation systems
operate at only 40 percent efficiency. According to a 2002 article by
Lester Brown, aquifers are depleting all over the world--in China by 2-3
metres per year. In the US, the Ogallala aquifer is shrinking rapidly.
In India, aquifers are going down by 3 metres per year, in Mexico by 3.3
meters per year.
263: The number of rivers that either cross or
demarcate international political boundaries, in addition to countless
aquifers. According to the Atlas of International Freshwater Agreement,
90 percent of countries in the world must share these water basins with
at least one or two other states. Major conflicts such as Darfur have
been connected to water shortages, and lack of access to clean water.
1430:
Gallons of water per capita in the United States; only 100 gallons of
that is household use per person as most is used for agriculture,
according to water expert Peter Gleick.
88 percent: Of deaths from
diarrhea are caused from unsafe drinking water, inadequate availability
of water for hygiene, and lack of access to sanitation; this translates
to more than 1.5 million of the 1.9 million children under five who
perish from diarrhea each year. This amounts to 18% of all under-five
deaths and means that more than 4,000 children are dying every day as a
result of diarrhoeal diseases.
$11.3 billion: The amount of money required to provide basic levels of service for drinking and waste water in Africa and Asia.
$35 billion: the amount of money spent on bottled water in the most developed countries in the world.
1.5
million: Barrels of crude oil used for making PET water bottles,
globally. This is enough oil to fuel 100,000 American cars for a year.
2.7 tons: The amount of plastic used to bottle water. 86 percent become garbage or litter.
Energy Strategy of the Republic of Croatia
Croatian Center of Renewable Energy Sources (CCRES)
special thanks to
Jeremy Josephs (freelance contributor), and
Tom Freyberg
Chief Editor - Water & Wastewater International