1. Sector overview

Value of investments into the waste management sector

Pursuant to the Waste Management Strategy for the Republic of Croatia (OG 130/05), the sector provides for and has already partially implemented certain measures within the scope of the existing state of waste management survey, such as drafting of the waste management program, establishment of the information system and harmonization of the regulations on waste of the Republic of Croatia with the EU regulations. The value of the said actions is estimated to 30 million EUR.

The sector plans significant investments to be made in construction of regional and county waste management centers (CGO-WMC; about 20 centers at approx. 20-50 million EUR), waste energy plants (4 energy plants of overall total of approx. 800 million EUR) and in the establishment of the waste management system. The overall investment is expected to amount to approx. 3,300 million EUR.

Major regional and county WMC projects are: Eastern Slavonia, North-West Croatia (County of Varazdinska, County of Medjimurska, County of Krapinsko-zagorska and County of Koprivnicko-krizevacka), County of Splitsko-dalmatinska, County of Karlovacka. Waste Incineration Plant in City of Zagreb is also planed.

Main funding resources

Sources for sector financing shall be secured from both the public (county, towns and municipalities, as well as the Environmental Protection and Energy Efficiency Fund) and private resources (public and private partnership, concessions, own funds, international funding institutions etc.). The anticipated EU pre-accession IPA fund resource participation in project funding is 20-60%.

Of the total of 420 million HRK for the 2008, the Environmental Protection and Energy Efficiency Fund has plans to invest the majority into programs, projects, other communal waste landfill rehabilitation activities (60 million HRK), and the rehabilitation of high risk hazardous waste locations (53.6 million HRK).

Major communal companies

Pursuant to the Public Procurement Act, all companies in possession of the Decision on performance of waste related works may participate in public bidding for works, notwithstanding whether they are public companies owned by local self-government units (most commonly), or private companies (EkoFlor being a major one). Consequently, organized collection of waste in the Republic of Croatia, from approximately 86% of the population, is being conducted by 209 companies registered for waste collection and disposal. About 70% of service users dispose the waste into designated containers and bins. About 740 vehicles specialized for emptying waste bins and containers is used for performance of waste collection in the Republic of Croatia. The average volume of a truck for emptying bins and smaller containers amounts to 11 m3. The average fleet age is 11 years.

Major foreign companies

Foreign companies are somewhat less represented in the Republic of Croatia territory. Although they have not as yet realized any work, the most active companies come from Austria, namely, AEVG, UEG, ASA and Saubermacher.

Employees in the waste management sector in the Republic of Croatia

It has been estimated that the waste management tasks in the Republic of Croatia employ approximately 15.000 people.

Sector maturity

The sector is stable and is being financed through charges in conformity with the Communal Waste Act and the Waste Act. These charges present the problem, since they amount to 70 %, and correction of prices to larger sums related to implementation of waste management plans. The methods of charge calculation for households (where the charge is collected in various ways, namely as HRK/household, HRK/container transportation, HRK /m2 or residential surface area, HRK/person etc.), and for the economical branches differ, where the price is as a rule negotiated, or agreed on among the companies performing collection and transportation of waste from a certain structure. If the method of calculation applied is HRK/m2, the service prices range between 0.25 and 5 HRK/m2, with the mean price of approximately 0.7 HRK/m2. For the calculation by container disposal (a’ 5 m3) the prices range between 200 and 500 HRK/transportation, with the mean price of 300 HRK/transportation. The said data are supplied for informational purposes only.

2. Market and sector challenges (strengths and weaknesses)

Adoption of legal and sub-legal acts in the field of waste, which have been harmonized with the EU directives, present a contribution to solving the situation in the sector. However, their application has only just begun so initial difficulties are to be expected.

Review of regulations governing waste management in the Republic of Croatia:

• Waste management strategy in the Republic of Croatia, OG 130/05 
• Waste management plan in the Republic of Croatia for the period of 2007-2015 (OG 85/07),
• Environmental Protection Act, OG 110/07 
• Waste Act, OG 178/04, 111/06

as well as about 30 other legal and sub-legal acts regulating or governing the waste management methods.

Pursuant to the Waste management strategy for the Republic of Croatia, starting from the general principles of EU, the following principles have been set up: waste management hierarchy, implementation of the best accessible technologies in regard to costs and environmental feasibility, manufacturer liability, independence and proximity, supporting the approach and accession to the EU, elimination of defects in the current policy and praxis in waste management, the contaminating party paying, the right to access to information, public participation in decision making and access to the legal system, the role of education and training, preparation for the open market and the stage approach.

Considering the fact that by institution of the Environmental Protection and Energy Efficiency Fund the conditions for a more efficient solving of the waste management problem have only recently been acquired, and the fact that the disposal of untreated communal waste, represented by 95%, onto the generally untended landfills (represented by 65% of landfills), there is still a lot of room to include economy into the waste management and prepare for the open market in conformity with the said waste management principles and other economical and other incentives.

The estimated annual waste quantities in the Republic of Croatia amount to about 13.2 million tons, which is mostly generated by agricultural and forestry waste (7.1 million tons), civil and debris (2.6 million tons), industrial and mining waste (1.6 million tons) and communal waste (1.2 million tons). Hazardous waste (0.1 million tons) is being exported out of the Republic of Croatia. The most significant economical structures dealing with recycling or utilizing recycled materials are as follows: CIOS (metal), Grupa Beli??e d.d. (paper), Unijanova and Vetropack Stra?a d.d. (glass cut), Holcim and Gumipex (used tires), BBS (PET waste packaging) etc. The share of recycled waste packaging in the totally generated communal waste amounts to approx. 13%, while it is possible to collect and/or recycle separately an additional 0.5 million tons of waste material.

Considering the adopted national legislative which is harmonized with the EU legislative from the waste sector, the defined funding resources and the initial phase in the realization of setting the objectives in waste management in the Republic of Croatia, fast growth in the sector may be anticipated.

The value added tax rate (VAT) in the Republic of Croatia amounts to 22%.

Canadian Government Contacts

Canadian Embassy in Zagreb
E-mail: synthia.dodig@international.gc.ca

Excerpts from:

Waste management Sector Profile - Canadian Embassy Zagreb, Croatia
January 2008