Water supply and wastewater economy: problems, investments and perspectives

Abstract

On the basis of statistical data, official documents and publications, the paper analyzes the problems of water supply and wastewater economy, also summarizes the prospects and possibilities provided by EU investments for the solution of problems of this sector. During the last years, a significant progress was made in the field of the reduction of water pollution and water supply sector. Investments made into the water supply economy allowed to construct new wastewater treatment facilities. Reconstructed old treatment facilities allowed to increase the capacity of water supply companies and thus to decrease the discharge of pollutants into surface water bodies. In 2000, nearly 86% of wastewater discharge did not correspond to the requirements of European Union water quality standard. Only 14% of wastewater were treated sufficiently well. In 2004, treated wastewater corresponding to the new standard made up 62% of total polluted wastewater amount. However, our country is still far behind other EU countries where on the average 92% of wastewater are treated. As the statistical study has shown, the amount of polluted wastewater in our country mostly depends on the amount of water consumed in domestic and fishery sectors. Domestic sector encounters some problems of the implementation of ecological technologies related to the reduction of water pollution. A new problem requiring scientific economical analysis was revealed: exploitation expenses of the constructed objects increase the cost price of services provided by water supply companies, which results in increased taxes of services for consumers. In Lithuania water supply and wastewater economy is managed by local municipalities. Recently, specialized water supply enterprises of municipalities encounter many problems. In many places water supply and sewerage networks are worn out, wastewater treatment facilities are physically and morally out of date, and there is a lack of funds for their renovation. During the period of independence the demand of water used by inhabitants and industrial enterprises decreased therefore the potential of water supply companies is employed insufficiently, and thus the cost price of water supply services increased. Water supply companies have lost a certain part of consumers, and their activity has become loss-making. The losses are to be covered from state or municipality budgets. After Lithuania has entered the European Union, the main attention in water management sector is focused on the implementation of Common Water Policy Directive, which requires rather large financial investments. After joining the European Union, it was necessary to harmonize the national requirements according to the legislation of the European Union: the core attention in water management sector was to be given to the implementation of the Directive of the Common Water Policy. The implementation of the European Union requirements in the water management sector required huge financial investments. Recently, European Union funds and international financing institutions have become the principle financing sources for the development of water supply sector. The European Union, International financing institution and national resources are the main sources for the financing the development of water sector.