Trieste – Sezana

Q4. Between country – water coming from (origin country (1)) and

Italy

Q5. Country (2) – water supplied to (delivered):

Slovenia

Q6. Water supply system name (English):

Water supply system Trieste – Sežana

Q7. Water supply system name (Country 1):

AcegasAps S.p.A.

Q8. Water supply system name (Country 2):

Kraški Vodovod Sežana

Q9. Date/year established cross-border water supply:

December 18th 2001

Q10. Management of origin side of the WSS:

AcegasAps; www.gruppo.acegas-aps.it

Q11. Management of delivery side of the WSS:

Kraški Vodovod Sežana; www.kraski-vodovod.si

Q12. Amount of water supplied (as per contract/agreement):

Continued supply of an yearly maximun quantity of 1,2Mm3 with instant maximum flow rate of 150 cubic meter/hour.

Q13. General nature of the CBWS – emergency water supply, peak water supply, permanent water supply:

AcegasAps – Kraski:
(1) Emergency supply (unexpected conditions for a period of maximum 10 days);
(2) Temporary supply (scheduled supply with a 10-day notice and duration of more than 1 month);
(3) Continued supply of an yearly maximum quantity up to 1,2 Mm3 with instant maximum flow rate up to 150 m3/hour.
Kraski – AcegasAps:
(1) Emergency supply (unexpected conditions for a period of maximum 10 days);
(2) Temporary supply (scheduled supply with a 10-day notice and a duration of more than 1 month).

Q14. Existing legal framework for the CBWS:

AcegasAps and Kraski have undersigned a “Memurandum ag Agreement” aiming at developing synergic processes in various common sectors of activity including the aqueduct supply; as application of the afore mentioned “Memorandum of Agreement”, an hydraulic connection has been created between the existing systems in the Slovenian territory and the Italian territory and a lifting station is planned to be costructed in Slovenia; AcegasAps and Kraski intended to cooperate to improve the supply and the quality of water supply and sale in the municipalities actually supplied, and also to extend the supply to other municipalities. Decembre 18th 2001, the two companies signed an “Agreement on exchange of drinkable water for houshold purpose” and defined particular aspects in the provision of water in case of emergency between the crossborder countries. The agreement defined also the price and the adequation ratio of it for a long term period. “Addendum – integration and modification act” by which they defined more specific conditions and started the effective provision of water from Italy to Slovenia supplying water to a part of the municipality of Sežana.

Q15. Top level CBWS management body (if mutually defined):

The agreement has not been submitted to any CBWS management body.

Q16. Origin country reference body for the management body:

Autonomous Region Friuli Venezia Giulia.

Q17. Delivery country reference body for the CBWS management body.

Ministry of External Affairs.

Q18. Legal framework management – Contract party meetings (annual, even more frequent):

There has not been planned any annual meeting of partners, the two structures meets when it is necessary, as distance is short.

Q19. Issues addressed on the local level:

In Italy municipalities are not allowed to manage the water system.

Q20. Issues addressed on the regional level:

Yes, after 1995 the competence of Authonomous Regione Friuli Venezia Giulia has been extended to this field.

Q21. Issues addressed on the state level:

Not for this agreement.

Q22. Legal option to increase maximum annual entitlement?

Yes, there is the possibility to increase the actual amount of water delivered to a maximum of 1,2Mcm/y with a maximum flow of 150cm/h.

Q23. Minimum amount of water delivery defined?

No minimum amount has been defined, the partners accepted to use the piezometric quote to maintain a minimum flow in the pipes.

Q24. Which is the body assigned by the contract for the resolution of disputes?

The agreement had defined for the law validity and arbitration the International Law of Arbitrators of the National and International Chamber of Arbitrators in Milan (Italy).

Q25. Ownership of the cross-border infrastructure:

In progress for the Slovenian indications and information.

Q26. Are the water rights on the water resource assigned to the cross-border partner? In which way?

None.

Q27. Termination of the water delivery of contract

The duration of the contract/agreement has an initial period of 10 years from the date of signature, after that the agreement is tacitly extended year by year (art. 15 Duration of the contract – “Integration and Modification Act”).

Q28 Minimal water consumption legally defined?

None.

Q29. Is the legal heritage of the systems resolved

/

Q30. Is the water price(charge) composed by different components?

The pricing scheme for the service of WSS is defined in the agreement between the parties according to the type of drinking water supply. There are three different rates, one rate for the supply of drinking water in case of “emergencies”, the second rate for the supply of drinking water for “Temporary periode” the third rate for a drinking water supply “Continue Periode” till the maximum yearly ammount established. (see art. 5 “rates” on Act for the Integration and Modification Agreements – 08/05/2002″ (Attachment: Annex 2 – Addendum).

Q31. How is the pricing mechanism defined (water charges):

The first thing it is necessary to clarify regarding the prices defined in the Agreement are the result of a negotiation between the parties. After that the rates have a basis for calculating in the standard model where the rate guarantees the covering of the operating costs (operation and mantenance, energy, security, etc.), coverage of the invested capital for the infrastructure dedicated to deliver the WSS, as well as ensure a minimum level of profitability (There is not official document).

Q32. Are the minimal charges foreseen? – Fixed charges, full for empty:

None.

Q33. Is the non-payment procedure regulated by the contract?

Yes, there is a specific procedure for the mode of payment for the service of WSS, for the cases of non-payment and the warranties that the parties must issue before the first delivery of the WSS. The specific Art. 11 “Payments and warrantees” in Act “Integration and Modification Act of the Agreement on Drinking Water Exchange for Household Purpouse Signed by the parties” (Attachment: Annex 2 – Addendum).

Q34. Is there a special tariff (surcharge) for the excessive water supply?

None.

Q35. Insurance cost covered – insurance cost tariff, insurance model foreseen by the contract:

There is not a specific regulation in the “Agreement” in order of the insurance cost covered, insurance cost tariff, insurance model forseen by the contract. In the Agreement is regulated in the Art. 12 the “Laiability limits” in Act “Integration and Modification Act of the Agreement on Drinking Water Exchange for Household Purpouse Signed by the parties, where the parties according the general limits and coverage. In any case in the tariff scheme the cost include some standard insurance for the operation cost of service. For warranties Art. 11 in the Act “Integration and Modification Act of the Agreement on Drinking Water Exchange for Household Purpouse Signed by the parties”.

Q36. Depreciaton of the infrastructure, investment/maintenance plans agreed ? (amortizacija, ammortamento):

The calculation model of the tariff is considered the cost of depreciation as a financial costs and other tipical financial costs related for the investments of the infrastructure to carry out the WSS service.

Q37. Penalties for unfulfilment of contractual obligations?

Yes, this aspects are regulated in the Act Integration and Modification Act of the Agreement on Drinking Water Exchange for Household Purpouse Signed by the parties. The general conditions are described in the art. 11 and art 12 (Attachment: Annex 2 – Addendum)

Q38. Is the mutual inspection of records/book-keeping established? (due dilligence approach):

For the development of trusted environment among the contractual partners in the Agreement by the parties, in the art. 10 “Measuring instruments and drawn volume measuring (Act Integration and Modification Act of the Agreement on Drinking Water Exchange for Household Purpouse Signed by the parties).

Q39. General assessment of the CBWS economics :

AcegasAps description: after an initial period of difficulty with colleagues in Sezana it has established a constructive relationship, for the technical aspects, for economic ones. Sezana Comments are in progress.

Q40. Payment statistics for the last 5 years:

AcegasAps: See Annex 3

Q41. Other:

No other comments

Q42. Measurement of water delivered:

To keep the water moving in the conduct even in the absence of critical events, it is held the supply of the low-lying areas of the town of Sezana.

Q43. Is continuity of water supply – intermittent water supply an issue?

In accordance with the agreements.

Q44. Agreed water quality issues:

In accordance withe the Agreement – Annex 1 and as issue in the Annex A of the Addendum – Annex 2

Q45. Water quality monitoring jointly controlled/verified:

AcegasAps comments: The characteristics of the water at the point of exchange follows the characteristics of Annex A of the Integration and modification Act of the Agreement. For the area of the town of Sezana has the same characteristics for the entire period of 365 days of the year already which is fed continuously from the aqueduct of AcegasAps. On the state border is place the flow meter and a fire hydrant to allow the withdrawal of water from the Competent Authority for the controls. The Slovenian party “in progress”.

Q46. Temperature regulated by the contract?

In accordance with the agreements and as issue in the Annex A of the Integration an modification Acts of the Agreements.

Q47. Pressure regulated by the contract?

In accordance with the agreements and as issue in the Annex A of the Integration an modification Acts of the Agreements.

Q48. Cross – border profile management:

In progress.

Q49. Construction of project facilities:

At the moment there are not any project facilities. In progress for the Slovenian indications and information.

Q50. Is the daily dynamics of water demand/supply an issue ?

In progress.

Q51. Is the seasonal dynamics of water demand/supply an issue ?

In progress.

Q52. Management of water losses – are water losses in the supply, uptake side an issue?

Are not considered water losses: each operator must bear the cost of water losses in their territory.

Q53. Is the water availability/demand an issue on supply country or demand country side?

For this case is not expected.

Q54. Transitional phenomena an issue?

Throughout the duration of the water supply there were no significant cases.

Q55. Other technical issues?

/

Q56. Long term planning mechanisms established?

There are no investment plans in the medium and long term. AcegasAps: There are no investment plans envisaged in the medium and long term.

Q57. LIASON OFFICERS DETERMINED? Communication process determined and functioning?

There are no other specific mechanisms for the exchange of information between the parties as well as established in the agreements, there is at least an annual meeting between the technical staff.

Q58. Joint supervision of the Water Supply System?

In the Addendum – Annex 2 are stabilised the regulation in order of the main characteristics to warranty the WSS, this mechanisms are developed in the art. 2 “Plants property”, art. 3 Uniformity degree, art. 9 Communications.

Q59. Joint management of the water resource?

When there are some significant problems about to the water resource each operator inform the other party by the mechanism stablished in the Agreement.

Q60. Contingency plans existing?

There is no contingency plan to manage the exceptional conditions, there is only an agreement by the parties to cooperate to to do the best in case of majeure event. This agreement for mutualy cooperations is described in the Act Addendum art. 12 Liability limits.

Q61. Main problems identified:

AcegasAps: at the moment no significant problem. In progress for Slovenian party.

Q62. Other comments:

No.

Q63. Vision:

In progress.

Q64. Do you consider that the legal framework for the CB WSS is adequate, or under-defined:

In progress.

Q65. Do you consider that the economic framework for the CB WS is adequate, or under-defined:

In progress.

Q66. Do you consider that the technical framework for the CB WS is adequate, or under-defined:

/

Q67. How would you assess general perception of the cross border water supply in public?

In progress.

Q68. Provide in the attachment shp file of the existing water supply network:

Annex 4 – Scheme of the water supply netork of AcegasAps, Italian territory. For the Slovenian party “in progress”.

Q69. Provide documents on general state-level framework for the cross-border water supply:

The Osimo Treaty of October 1975 settled the borders between Yugoslavia (Slovenia) and Slovenian-speaking Italy, accepting the “de facto” division of 1954.

Q70. Specific delivery contract:

Annex 1 – Agreement, Annex 2 – Addendum.

Q71. Regulations, technical documentation:

Annex 1 – Agreement, Annex 2 – Addendum.

Q72. Statistics on the water supplied and payments provided for the last five years:

Annex 3 – Data of CBWS AcegasAps to Sezana.