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EEK 1.6 Billion to Be Invested in Water Economy

Today, on 8 December, seven water undertakings, the Director of the Environmental Investment Centre Mr Kalev Aun and the Minister of the Environment Mr Villu Reiljan signed the biggest Estonian environmental project – agreements covering the implementation of water economy foreign aid provided by the Cohesion Fund of the European Union for the sub-basins of Matsalu and western islands and the Emajõe-Võhandu catchment area.

These seven agreements on the implementation of foreign aid projects were concluded between seven regional water undertakings, including AS Kuressaare Veevärk, AS Kärdla Veevärk, AS Haapsalu Veevärk, AS Matsalu Veevärk, AS Emajõe Veevärk, AS Põlva Vesi and AS Võru Vesi, and the Republic of Estonia represented by the Environmental Investment Centre and the Minister of the Environment.

Within the framework of these projects a total of EEK 1.6 billion will be invested in Estonia’s water economy from 2005 to 2007 with the support of foreign aid from the European Union. Cost-sharing by local governments will be 10% of this amount or EEK 160 million and the state (i.e. the Environmental Investment Centre) will co-finance the projects with EEK 130 million.

The projects embrace the sub-basins of western islands and Matsalu and the local government groups of the Emajõe-Võhandu catchment area, altogether 63 local governments from 10 counties (Saaremaa, Hiiumaa, Läänemaa, Pärnumaa, Raplamaa, Tartumaa, Jõgevamaa, Ida-Virumaa, Põlvamaa and Võrumaa). The objective of the projects is to achieve the compliance of the water economy infrastructure of these local governments with relevant EU directives, which enables to ensure high-quality drinking water as well as waste water treatment and sewerage services to the local population.

The projects are carried out for their own benefit by regional water undertakings that belong to the local governments and take part in these projects. These undertakings were founded and expanded under the leadership of the Ministry of the Environment in spring 2004. It took legal assistance for EEK 2.1 million to accomplish this task. In the European Union, the scheme where uniform water undertakings that belong to local governments implement grouped projects was first introduced by Estonia.

The objective of the agreements concluded today is to regulate the legal relationships and obligations of the Ministry of the Environment, the Environmental Investment Centre and the water undertakings within the framework of implementing these projects. At the same time, the agreements also cover the following: the self-financing of water undertakings, state co-financing, disbursements, performance and supervision of employment contracts.

Further information:
Indrek Tamberg
Head of the Water Department, Ministry of the Environment
Phone (+372) 626 2856; (+372) 510 9135

Monika Kopti
Press Representative of the Ministry of the Environment
Phone (+372) 626 2993; (+372) 521 2602
E-mail: