Water Using Field Investment Security Within The Framework Of Eu Water Directives Implementation: Institutional Environment, Areal Features And Diversification Prospects

The limited range of sources of water management and protection projects' investment, related with the unreadiness of the institutional environment to attract and combine financial resources of the of state, local communities, businesses, local and international financial institutions, institutional investors, foreign governments and foreign business investment, is defined as the basic problem of investment's increasing for modernization, renovation and technical re-equipment of water management infrastructure and expanded reproduction of waterresource potential. We study the dynamics of capital investment and operating costs on wastewaters treatment, protection and rehabilitation of soil, groundwater and surface water at current prices, as well as their share in the total amount of capital investment on environmental protection. We ground the expediency to increase investment in modernization, renovation and technical re-equipment of water management facilities and water protection infrastructure based on the analysis of the dynamics of the share of leakage and unaccounted water losses in the total amount of water used in the network, and increasing the share of dilapidated and emergency state of street water supply network within the total length of the networks. The areal features of water management investment are revealed: within the water management and meliorative subcomplex, the state investing activities are focused primarily on financing of maintenance and repair measures of national and inter-farm networks of hydrotechnical constructions, the new owners of on-farm networks of hydrotechnical constructions do not have enough concentration of investment resources for their technical and technological modernization; within the field of industrial water use - large water users - industrial enterprises introduce circulating water systems and upgrade wastewater treatment plants slowly due to limited domestic investment and inability to attract foreign investment, as well as the lack of appropriate incentives that would encourage enterprises to implement low-flow and waterless technologies; within the water-and-sewage subcomplex - water supply municipal facilities are unable to lay investment component into tariffs for the supply and drainage of water due to the high level of costly characteristic of water supply and disposal, which makes it impossible to accelerate the renovation of water-and-sewage and drainage systems in order to reduce the part of worn and outdated equipment, the positive experience of introducing new institutional forms to meet local needs for water resources (clusters, associations) is also spreading slowly; within the water management sector - investment priorities is to ensure the construction of new and reconstruction of existing flood protection and flood control structures, updating the material and technical basis of monitoring of water resource potential, development of basin authority infrastructure. Expanding the range of investment sources for implementation of water management and protection projects is associated with improving the institutional environment of water use, in particular through the implementation of public-private partnerships into water supply and disposal field, as well as with attracting of foreign investors as a result of signing the economic part of the Association Agreement with the European Union. The content of the water directives of the EU and the challenges of their documentary and actual implementation in domestic practice of water management and protection activities are revealed. It is founded that it is particularly difficult to implement the Directive 91/676/EEC, aimed at water protection from pollution caused by nitrates from agricultural sources, since large areas of agricultural land are used by private farms, that in the vast majority do not follow science-based standards of applying mineral and organic fertilizers, around most water bodies there is no reserved protection zones, which are also used for tillage, that after all influences most destructively the dynamics of nitrogen distribution into natural and artificial water bodies. We define the real and potential investment sources for modernization, renovation and technical re-equipment of water supply and disposal systems for public and corporate sectors of the national economy through the prism of performing the basic regulations of the EU Water Directives. The analysis of the institutional environment of investment for implementation of water management and water protection projects shows that the needs of the public sector could be covered by increasing the rates of environmental taxes for the discharge of pollutants directly into water bodies, by increasing fines charged for violation of the environmental regulations, by attraction funds from international financial institutions and funds provided by the environmental conventions. The key preconditions to increase the investment potential of municipal and corporate sectors is to establish partnerships with international financial institutions and enterprises having significant experience in financing and implementation of water management infrastructure modernization, as well as to use modern forms of public-private partnership.