October 23rd 2012

Establishment of Cluj town’s Water Plants

Reorganized into shareholder owned company in 2004; Effective regional operator since July 2006

July 1st 2006 - Effective Regional operator company (ROC): SOMES Water takes over the effective administration in 7 new cities located in two counties – a first in Romania - replacing 4 former local operators

FromFrom

ToTo

1 city, 25 1 city, 25 rural rural

localities in localities in Cluj CountyCluj County

8 cities, 29 8 cities, 29 rural rural

localities in localities in Cluj and Salaj Cluj and Salaj

CountiesCounties

… … in ONE day …in ONE day …

SOMES Water company today

8 municipalities, 140 rural localities8 municipalities, 140 rural localitiesSome 745.000 people serviced Some 745.000 people serviced within about 10,000 sq.km areawithin about 10,000 sq.km area

1,820 km of water networks1,820 km of water networks778 km of sewage networks778 km of sewage networks

15 water sources&purification plants15 water sources&purification plants13 waste water treatment plants13 waste water treatment plants

Leakages from the Leakages from the sewage network due to sewage network due to

age, material, age, material, constructionconstruction

Major losses in the Major losses in the water networkswater networks

Lack of automation Lack of automation and monitoring and monitoring systemssystems

High energy consumption High energy consumption due to obsolete due to obsolete

equipment in the equipment in the pumping stationspumping stations

Situation prior to the investment programs

MUDP (EU): 1997-2002Special tax: 1995 – ongoing (yearly)MRD Fund: 1997 – ongoing (yearly)ISPA (EU): 2004 – 2010SAMTID (EU): 2005 – 2008Cohesion Funds I: 2008 - 2013(EU)

MUDP II, 35.1 Special Tax, 3.9MRD Fund, 21.6

ISPA, 60.5

SAMTID, 14.4

Cohesion Fund, 196.9

Investments 1995-2012 in excess of 335 Mil. EUR

Million EUR

ManaşturManaştur 10.000 mc 10.000 mc storage storage tanktank

GrigorescuGrigorescu pumping station pumping station

SomeşeniSomeşeni WWTP WWTP

Gilau WTPGilau WTP

Some of the results…Some of the results…

The Environment Sectoral Operational (EU The Environment Sectoral Operational (EU Cohesion Funds) Program - Cohesion Funds) Program - stage I (2008 – stage I (2008 –

2013)2013) PROJECT TITLE: PROJECT TITLE: "EXTENSION AND REHABILITATION "EXTENSION AND REHABILITATION

OF WATER AND WASTE WATER SYSTEMS IN OF WATER AND WASTE WATER SYSTEMS IN CLUJ&SALAJ COUNTIES“CLUJ&SALAJ COUNTIES“

OVERALL VALUE :OVERALL VALUE : 196,9 Mil. EURO196,9 Mil. EURO PROJECT IMPLEMENTATION TIME FRAME :PROJECT IMPLEMENTATION TIME FRAME : 2008 -2008 -

20132013 FINANCING BREACKDOWN :FINANCING BREACKDOWN :

- E.U. GRANT - E.U. GRANT - 74.8 %- 74.8 %- ROMANIAN GOVERNMENT GRANT - ROMANIAN GOVERNMENT GRANT - 11.3 %- 11.3 %

- LOCAL AUTHORITIES GRANT - LOCAL AUTHORITIES GRANT - 1.9 - 1.9 %%

- BANK LOAN (SOMES WATER) - BANK LOAN (SOMES WATER) - 12.8 %- 12.8 %

TARGET AREAS: TARGET AREAS: 8 URBAN LOCALITIES IN CLUJ AND 8 URBAN LOCALITIES IN CLUJ AND SALAJ COUNTIES:SALAJ COUNTIES: Cluj-Napoca, Zalau, Dej, Gherla, Huedin, Cluj-Napoca, Zalau, Dej, Gherla, Huedin, Cehu Silvaniei, Simleul Silvaniei, JibouCehu Silvaniei, Simleul Silvaniei, Jibou

A. WATER SUPPLY Rehabilitation of water sources and WTP: 4 pcs. Rehabilitation and new water intake mains: 41 km Rehabilitation of water network: 73 km Expansion of of water network: 70 km Expansion&rehabilitation of pumping stations 11 pcs. Expansion&rehabilitation of tanks 14 pcs. SCADA system 1 pcs.

B. SEWAGE&TREATMENT Rehabilitation of sewer networks and mains: 47 km Expansion of sewer networks and mains :

73 km Rehabilitation and new waste water pumping stations 23

pcs. Rehabilitation of WWTP’s: 540.300 P.E. 8 pcs.

MAIN PHYSICAL INDICATORS (I)

STRUCTURE OF CONTRACTSSTRUCTURE OF CONTRACTS

THE PROJECT WAS DIVIDED INTO :THE PROJECT WAS DIVIDED INTO :

3 SUPPLY CONTRACTS :3 SUPPLY CONTRACTS :- WATER METERS&- WATER METERS&BREAKDOWN DETECTORS; BREAKDOWN DETECTORS; - SEWAGE NETWORK MAINTENANCE MASCHINES;- SEWAGE NETWORK MAINTENANCE MASCHINES;- PROCUREMENT&IMPLEMENTATION OF SCADA; - PROCUREMENT&IMPLEMENTATION OF SCADA;

3 SERVICES CONTRACTS :3 SERVICES CONTRACTS :- Technical assistance for project management; - Technical assistance for project management; - Technical assistance for works supervision;- Technical assistance for works supervision;- Technical assistance for design verification- Technical assistance for design verification;;

Note: All contracts already tendered to this dateNote: All contracts already tendered to this date

STRUCTURE OF CONTRACTS (II)STRUCTURE OF CONTRACTS (II)

14 WORK CONTRACTS for the following work 14 WORK CONTRACTS for the following work categoriescategories::

- WTP (Water Treatment Plant) and ground - WTP (Water Treatment Plant) and ground water sources modernization;water sources modernization;

- 8 WWTP’s (Waste Water Treatment Plant) - 8 WWTP’s (Waste Water Treatment Plant) modernization and rehabilitation (modernization and rehabilitation (540.300 P.E.540.300 P.E.) in ) in the eight cities serviced in Cluj and Salaj Countiers the eight cities serviced in Cluj and Salaj Countiers - - yellow FIDIC , including sludge management; yellow FIDIC , including sludge management;

- - 77 contracts for Water & Sewage mains contracts for Water & Sewage mains && networks extensionnetworks extension && rehabilitation (some: 302 km rehabilitation (some: 302 km in the eight cities serviced) - red FIDIC; in the eight cities serviced) - red FIDIC;

- 1 contract for water tanks and pumping - 1 contract for water tanks and pumping stations - red FIDICstations - red FIDIC..

Note: All contracts already tendered to this dateNote: All contracts already tendered to this date

INVESTMENT PROGRAMS IN PREPARATION (I)INVESTMENT PROGRAMS IN PREPARATION (I)

According the updated Master PlanIdentifies the investments needed to reach full

compliance with EU requirements and the provisions within the Environment Chapter of the Accession Treaty

Investments implementation time frame according the Master Plan: 2014- 2040

Estimated total investment amount: 825 Million Euro

Physical indicators identified in the Master Plan 2014 – 2040 (I)

Cluj County:Water:•Chlorine dosing stations: 167 units•Extension of water transport mains: 654 km•Rehabilitation of water transport mains: 70 km•Pumping stations: 103 new, 4 rehabilitated•Extension of water distribution network: 823 km•Rehabilitation of water distribution network: 174 km•Water storage tanks: 159 new, 7 rehabilitated

Physical indicators identified in the Master Plan 2014 – 2040 (II)

Cluj County:Waste Water:

•WW Treatment Stations: 12 new•WW Facilities: 1777 units•Extension of sewerage collectors: 25 km•Rehabilitation of sewerage collectors: 55 km•Extension of sewerage networks: 997 km•Rehabilitation of sewerage networks: 30 km•WW Pumping stations: 117 new, 14 rehabilitated•Extension of discharge pipes: 184 km•Sludge treatment facilities: 9 units•SCADA monitoring: 95 units

Physical indicators identified in the Master Plan 2014 – 2040 (III)

Salaj County:Water:

•Chlorine dosing stations: 116 units•Extension of water transport mains: 286 km•Rehabilitation of water transport mains: 34 km•Pumping stations: 139 new, 1 rehabilitated•Extension of water distribution network: 844 km•Rehabilitation of water distribution network: 42 km•Water storage tanks: 135 new, 10 rehabilitated

Physical indicators identified in the Master Plan 2014 – 2040 (IV)

Salaj County:

Waste Water:

•WW Treatment Stations: 3 new•WW Facilities: 1851 units•Rehabilitation of sewerage collectors: 11 km•Extension of sewerage networks: 921 km•Rehabilitation of sewerage networks: 49 km•WW Pumping stations: 109 new, 3 rehabilitated•Extension of discharge pipes: 115 km•Sludge treatment facilities: 4 units•SCADA monitoring: 9 units

Categories of investments which may be included in the aplication for the period Categories of investments which may be included in the aplication for the period 2014 -2018, according the Master Plan2014 -2018, according the Master Plan

-Water supply & sewage for all rural settlements > 2,000 inh.-Water supply & sewage for all inhabitants in the urban area-Further rehabilitation of water & sewage networks in the urban area-Establishment of Waste water treatment plants (WWTP’s) in all rural settlements > 2,000 inh.

INVESTMENT PROGRAMS IN PREPARATION (II)INVESTMENT PROGRAMS IN PREPARATION (II) The Environment Sectorial Operational (EU Cohesion Funds) The Environment Sectorial Operational (EU Cohesion Funds)

Program - Program - stage II: 2014 – 2018stage II: 2014 – 2018

Physical & Performance Indicators:Physical & Performance Indicators:

-270 km new water network-100% population provided with service (localities > 2,000 inhabitants)-100% consumption metering-Cluj-Salaj water transport main – 150 km-210 km new sewage network-100 % treated waste waster

THANK YOU

www.casomes.rocassa@casomes.ro