20 March 2003

Bringing Polish water up to EU norms deserves public attention for at least two reasons. Firstly, EU Directives set worthy minimum requirements for drinking water and river water. Secondly, it will cost us somewhere between 8 and 18 billion euros to reach EU water standards by 2015-the end of the transition period.

The Water Law that entered into force in 2002 aimed to raise water quality in Poland. This was followed by Ordinances of the Environment Minister, harmonizing (on paper) Polish water standards with EU Directives. These include: quality levels for surface waters to be used for human consumption (ban expected on substandard waters within 10 years); quality levels for aquatic habitats; quality levels for bathing and recreational waters; a list of non-dischargeable substances; a list of harmful substances for restricted discharge only. Additionally, the Health Minister has set forth minimum requirements for household drinking water.

Although one highly irritating colleague of mine is lucky enough to be able to drink tasty water straight from the tap, Poland has generally failed to improve household water quality by the dates set forth in various ordinances, and much substandard water still flows in our rivers.

This is not to criticize the Water Law or the Ordinances. The new Water Law is drafted in accordance with EU directives and provides for a number of new mechanisms aimed at improving water quality. These include, for example, new rules on permits on effluent discharge where priority will be given to those companies offering the best water protection. In theory, certain investments might eventually be banned on water pollution grounds. Other provisions prohibit: discharge of solid waste to water, dumping of snow from industrial areas, locating of potentially harmful businesses in flood risk areas, and diluting of wastewaters to meet permissible concentration limits.

However, wholesale improvement needs two vital changes: the development of acceptable water and sewage infrastructure nationwide (currently way below EU standards), and the introduction of Best Available Technology standards in Polish industry.

As regards infrastructure, the Water Law requires that towns with over 2,000 residents have a municipal sewage system leading to a water purification plant. Further, the Environment Minister is delegated to introduce a national program of municipal wastewater purification, including a detailed costed list of required investments. By 2015, Poland needs to build over 1,000 water treatment plants and municipal sewage systems. So, where's the money coming from?

To some extent, EU funds may co-finance investments in Poland, but the funds potentially on offer might cover only 10 percent of our environmental needs. As the public purse is insufficient, will Poland be able to attract private capital for its water sector, as many EU, Asian and American countries have done through Public Private Partnerships? Legislating for better water quality is a necessary first step, but one which can only bear fruit within the context of an investor-friendly regulatory framework, encouraging long-term commitments and stable returns. This will be the subject of my next article.

Bartosz Clemenz
is an associate at Salans Law Firm.
He specializes in environmental law, infrastructure and M&A projects.

www.salans.com

Salans D. Oleszczuk Kancelaria Prawnicza Sp.k., ul. E. Plater 53, Warsaw, tel. (+48 22) 520 63 00, fax: (+48 22) 520 64 00, e-mail: warsaw@salans.com

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