ESE Sp z o o WASTE MANAGEMENT SYSTEM

ESE Sp. z o. o. WASTE MANAGEMENT SYSTEM POLAND 2013 Warsaw, October 19 th, 2012 1

POLAND MAIN DATA 2

POLAND 2013 New Waste Management System POLAND Ø Ø AREA: 312. 679 km 2 POPULATION: 38, 538 mln LARGEST CITY: 1, 8 mln (Warsaw) CITIES over 100 k inhabitants: over 40 Ø ADMINISTRATION: Ø 16 departments Ø 314 counties Ø 2479 communes consisting of: Ø 306 city communes Ø 602 municipal-rural communes Ø 1571 rural communes Ø GDP: 13. 540 USD 3

OLD & NEW WASTE MANAGEMENT MODEL 4

POLAND 2013 New Waste Management System General information on Waste Collection Model – POLAND 2012: Existing System: Ø Local authorities (communes) are legally responsible for organizing conditions for waste collection and for waste sorting Ø Real estate property administrators (even if individuals) were obliged to sign individual contracts with one of locally active waste collectors Ø Waste sector of market was „open for competition” therefore number of waste collecting companies were acting in same locations Ø Market was formed in the way of 1/3 rd local private companies, 1/3 rd international key accounts, 1/3 rd of municipally owned companies Ø Due to large competition very law prices for collection were noted on the market (from 1, 5 EUR to 2, 5 EUR per months person). Collection includes collection service (with margin), bin rent, landfill cost & margin, landfill fee 5

POLAND 2013 New Waste Management System GENERAL INFORMATION ON WASTE COLLECTION MODEL – POLAND 2012: Existing System = NO MUNICIPALITY HOUSEHOLDS PUBLIC „PLACES” Direct payment for waste collection including bin rent, service with margin, landfill fee + landfill tax WASTE COLLECTING COMPANIES INDUSTRY -Municipal -Local Private -International Key Accounts HOSPITALS e OFFICES ALL OTHER WASTE PRODUCERS lin Sel paper, glass, alu cans, 6 ec gr plastic, metal, etc. s ble a l yc m nco =i SORTING PLANT PAYMENT TO SANITARY LANDFILL incl. Administration Fee SANITARY LANDFILL landfill cost + margin + environmental admin fee

POLAND 2013 New Waste Management System TRANSITION PERIOD and NEW WASTE MANAGEMENT LAW: Ø 01. 2012 – 30. 06. 2013 – till mid 2013 waste sector in Poland must be fully communalized. Local authorities (communes) are taking over responsibility for handling waste system charging Real Estate Property administrators (even if individuals) for waste collection and organizing tenders for waste transportation and waste processing Ø All wastes shall be transported to Regional Installations (no direct transport to sanitary landfills). Preferences shall be granted for waste sorting. Each local authority (commune) shall meet defined limits of sorting by 2020. Ø Solutions is favouring municipally owned waste collectors and international key accounts. Role of local private companies will decrease during start up of the system (redeveloping later ? ) Ø Requirement (wish !!) of many local authorities is to keep charging inhabitants with low fee level, best not higher then now 7

NEW LEGISLATION 8

POLAND 2013 New Waste Management System PUBLIC PARLAMENTARY ACT REFERING TO MAINTAINIG CLEANNESS AND ORDER AT LOCAL COMMUNES Date of Modification = unified text: 17 th February 2012 (Pos. 391) Base of Modification: § PUBLIC ACT dated 13. 09. 1996 „Maintaining Cleanness And Order In Polish Communities” with later modifications § PUBLIC ACTS of 2009, 2010, 2011 referring to „Tasks of Local Administration Units”, „Environmental Protection Law”, „Services Activity Regulations”, „Transportation Act”, other Bills Additional Decrees/Directives of Ministry of Environment are supplementing a/m Public Law 9

POLAND 2013 New Waste Management System 10 Chapter 1: GENERAL RULES Chapter 2: TASK OF LOCAL ADMINISTRATION (COMMUNES) Chapter 3: DUTIES OF REAL ESTATE PROPERTY OWNERS Chapter 4: CONDITIONS FOR GRANTING PERMISSIONS FOR SERVICE ACTIVITIES Chapter 5: LEGAL RESPONSIBILITIES Chapter 6: FINAL REGULATIONS

POLAND 2013 New Waste Management System BILL essence: Chapter 2: TASK OF LOCAL ADMINISTRATION (COMMUNES) 11 1. Maintaining of cleanness and order at local communes is obligatory part of self-duties of communities 2. Communities secure cleanness and order on their territories and create necessary conditions for meeting such tasks, between the other by: a) creating conditions referring to a/m tasks by organizing adequate administration units b) securing building and correct operating of „Regional Installation for Communal Waste Processing” c) including all owners of real estate properties in the complex system of local waste management d) supervision of implemented waste management system including realization of tasks forwarded on companies collecting communal wastes from households e) setting rules of selective collection of communal wastes (sorting wastes) including at least fractions: paper, metal, plastic, glass, packaging materials and organic wastes incl. biodegradation materials f) creating points of selective collection of communal wastes… incl. collection of electronic goods, etc.

POLAND 2013 New Waste Management System Chapter 2: TASK OF LOCAL ADMINISTRATION (COMMUNES) – cont. : 12 3. Communities will organize tender to build and operate (or operate if build) „Regional Installation for Communal Waste Processing” (RIPOK) 4. Communities are obliged to meet till 31. 12. 2020 levels of recycling …. . 5. Community Council will pass regulations referring to cleanness and order on their territories being an Act of local law 6. Mentioned local regulation will specify TYPE AND MINIMAL QUANTITY OF BINS to be used for collection of communal wastes on territory of each household and public roads, conditions of allocation of those bins and conditions of keeping bins in adequate hygienic conditions (…) taking into consideration average quantity of communal wastes formed in households and quantity of inhabitants using mentioned bins 7. Local regulation of community shall specify frequency and method of communal waste collecting

POLAND 2013 New Waste Management System Chapter 3: DUTIES OF REAL ESTATE PROPERTY OWNERS 13 1. REAL ESTATE PROPERTY OWNER SECURES CLEANNESS AND ORDER BY FURNISHING PROPERTY WITH BINS used for collection of communal wastes and by keeping those bins in adequate hygienic conditions… (…) 2. Collection of wastes formed in real estate property according to administration regulations 3. Supervision on execution of household owner duties is on side of administrator of village / city mayor / city president 4. Commune Council specifies in its resolution upper limit of fees carried by owners of households 5. Commune Council specifies lower fees if wastes are collected and transferred in way of sorting 6. Commune Council can vary fee levels pending on density of population and localization of households (distance to RIPOK) 7. Fees specified above are part of commune budget and are governed under rules of TAX BILL

POLAND 2013 New Waste Management System Chapter 3 A: ORGANIZATION OF WASTE MANAGEMENT IN COMMUNES 1. Communes are obliged to organize collection of wastes from real estate properties 2. Commune Council can decide about collection of wastes obtained from real estate property with no inhabitants living in such property but wastes are generated (offices, shops, etc. ? ) 3. Administrator of Village / City Mayor / City President are obliged to organize tenders for collection of communal wastes from households or for collection and handling (processing) of such communal wastes 4. Council of commune having more than 10. 000 inhabitants may take resolution being then local law dividing commune to sectors taking into consideration number and density of population and area which could be serviced by one waste collecting company. 5. Administrator of Village / City Mayor / City President defines in tender conditions: a) b) c) d) e) 14 requirements regarding transfer of bulk / mixed communal wastes, „green” wastes, and residues from sorting types of sorted wastes to be collected from household hygienic standards of service documentation requirements other specific detailed requirements

POLAND 2013 New Waste Management System Chapter 3 A: ORGANIZATION OF WASTE MANAGEMENT IN COMMUNES – cont. 6. Waste collection companies owned by Municipality are allowed to collect wastes from households only if they has been chosen in process of tender 7. Public Tender Law rules are to be used for waste collection tenders 8. Duty of fee payment arises every month 9. Commune Council will decide about base of fee specification basing on one of following factors: a) b) c) Per person (living in household) Per quantity of water from household Per sqm (surface) of household 10. Commune Council will take into consideration population in community, number of wastes generated in community and cost of functioning of waste collection (and processing) system. Council will specify also payment of fees for properties where wastes are generated seasonally. 11. Commune Council will decide by its resolution about time, frequency and form of fee payments. 15

POLAND 2013 New Waste Management System Chapter 3 A: ORGANIZATION OF WASTE MANAGEMENT IN COMMUNES – cont. 12. Fee is part of commune income. From collected fees commune shall cover collection, transport, recycling and utilization of wastes, building and operating points of selective collection of wastes, administration organization service of the system 13. Commune Council can define in a way of resolution being then a local act type of additional services provided by commune referring to waste collection from real estate property owners and processing of those wastes and level of price for such services. 14. Penalties and legal issues – collecting company not meeting regulations can be removed from the list of companies entitled to execute waste collection and waste processing services (initially it will be charged with financial penalties) 16

OTHER GENERAL ISSUES (out of present main act) 17

POLAND 2013 New Waste Management System Ø Presently used „products” to collect wastes in Poland are: Ø plastic and steel bins (60 – 1100 lit. ), Ø large containers 7 -10 cbm, Ø bags systems while new legislation specifies bins (not products for waste collection) Ø Time life of Tenders for Waste Collection is regulated by Public Tender Law. No bottom limit, longest time is four (4) years ! Ø RIPOK = Regional Installation for Communal Waste Processing is an installation for apx. 120. 000 inhabitants and shall consist of sorting plant, mechanical-biological installation (composting), sanitary landfill, and in future possibly incineration plant (main regional centres) Ø Calculation of wastes in Poland – pending on regions: Ø rural area = 200 – 250 kg of wastes / inhabitant Ø mid size cities 330 – 370 kg of wastes / inhabitant Ø larger cities 400 – 430 kg of wastes / inhabitant 18

LOCATION OF INTERNATIONAL KEY ACCOUNTS OPERATIONS IN POLAND 19

POLAND 2013 New Waste Management System LOCATION OF INTERNATIONAL KEY ACCOUNTS OPERATIONS IN POLAND: Ø REMONDIS Ø SITA Ø ALBA Ø TEW (TOENSMEIER) Ø VEOLIA Ø ASA Ø Van GANSEWINKEL 20

REMONDIS • Szczecin • Świnoujście • Gdynia • Mrągowo • Bydgoszcz • Płock • Poznań • Wągrowiec • Warszawa • Otwock • Olsztyn • Sochaczew • Łódź • Świdnik • Ostrowiec Świętokrzyski • Kielce • Częstochowa • Kraków • Krosno • Sosnowiec • Pszczyna • Gliwice • Tarnowskie Góry • Opole • Wrocław

SITA • Szczecin • Tczew • Kościerzyna • Płock • Gdańsk • Głogów • Poznań • Warszawa • Piaseczno • Lublin • Radom • Wrocław • Chorzów • Czeladź • Tychy • Bielsko Biała • Częstochowa • Kraków • Nowy Sącz

ALBA • Wrocław • Wałbrzych • Nowa Sól • Radzionków • Chorzów • Tychy • Dąbrowa Górnicza • Olkusz • Zduńska Wola • Toruń

TEW • Kutno • Łowicz • Nowy Tomyśl • Świebodzin • Nowa Sól • Ruda Śląska • Jastrzębie Zdrój • Radom • Starachowice • Puławy • Grójec • Otwock • Mińsk Mazowiecki • Garwolin

VEOLIA • Piła • Gorzów Wielkopolski • Ostrołęka • Rawa Mazowiecka • Kielce • Jaworzno • Krapkowice • Legnica • Zgierz

ASA • Sosnowiec • Zabrze • Lubliniec • Siewierz • Kraków • Tarnobrzeg • Jabłonka

V. Gansewinkel • Kraków • Zabierzów • Tarnów • Ruda Śląska • Oława • Legnica