European recovery and resilience funding – Together towards the goal: cleaner water

Slovenia is one of the most water-rich countries in Europe. Most rivers are in good ecological condition. As much as 97 per cent of drinking water comes from groundwater sources, which is why ensuring minimal environmental impact is of paramount importance. The main sources of pollution are agriculture (fertilisers and pesticides), industry and municipal wastewater. One of the key challenges Slovenia continues to face is the relatively high level of water losses. The average rate of water loss in public water supply systems in the Republic of Slovenia currently stands at 29 per cent.

Slovenia is also implementing measures for improved water management under the Recovery and Resilience Plan (RRP). It has fully implemented a reform aimed at increasing the efficiency of public environmental protection services, while a substantial share of two investments in the areas of municipal wastewater and water supply infrastructure has already been completed.

The Ministry of Natural Resources and Spatial Planning (MNVP) is responsible for implementing the measures and carries out the investment component in cooperation with municipalities.

Increasing the efficiency of public environmental protection services – reform

The aim of the reform is to increase the efficiency of public environmental protection services. To this end, the state adopted two legislative acts and one regulation governing the provision of public environmental protection services:

• Environmental Protection Act (ZVO-2) – the National Assembly of the Republic of Slovenia on 16 March 2022 and entered into force on 13 April 2022;
• Drinking Water Supply, and Discharge and Treatment of Urban Wastewater Act (ZOPVOOV) – adopted by the National Assembly of the Republic of Slovenia on 20 March 2025 and entered into force on 1 April 2025;
• Decree on Payment for Water Rights Acquired on the Basis of a Water Permit and on Water Charges – adopted by the Government of the Republic of Slovenia on 12 June 2025 and in force since 28 June 2025.

Through the implementation of the reform, Slovenia established the conditions for improving the organisation and oversight of public services in the field of water management. This contributes to greater transparency regarding the cost-efficiency of charges and fees for water use. The reform also provides better conditions for more stable financing of infrastructure upgrades. An upgrade of the information system for monitoring the activities of public service providers and reporting on them is also planned.

The target related to the implementation of the reform was included by the Government in the fourth payment request, which the European Commission (EC) paid in full in November 2025. 

Discharge and treatment of urban wastewater projects – investment

The aim of the investment is to contribute to improving the condition of water bodies through enhanced municipal wastewater discharge and treatment systems. Basic infrastructure remains insufficient in some areas, particularly in remote locations and agglomerations with a total load of fewer than 2,000 population equivalents.

Of the 77 projects being implemented under the MNVP public call for proposals, 30 municipal projects have already been fully completed. The remaining projects must be completed by the end of June 2026.

A total of EUR 48.70 million from the Recovery and Resilience Facility is currently allocated for the implementation of the investment, including EUR 34 million in grants and EUR 14.65 million in loans. All funding is in the form of grants.

The milestone related to the grant component of the investment, “Issuance of co-financing decisions for municipal wastewater discharge and treatment projects”, was included by Slovenia in the first payment request, which the EC paid in full in April 2023. The loan-related milestone, which also concerns the issuance of co-financing decisions for projects, was included in the second paid payment request. 

The first two targets related to the grant component of the investment, for which Slovenia has already reported completed projects to the EC, form part of the recently paid fifth payment request and the sixth payment request, which has been under assessment in Brussels since March 2026. The final, or third, target will be included by Slovenia in the final payment request, which is also expected to contain the investment’s only loan-related milestone.

Drinking water supply and water-saving projects – investment

The aim of the investment is to help reduce water losses in Slovenia. The investment includes the construction of new and the reconstruction of existing drinking water supply systems.

Of the 45 projects being implemented under the MNVP public call for proposals, 24 municipal projects have already been fully completed. The remaining projects must be completed by the end of June 2026.

A total of EUR 22.80 million from the Facility is currently allocated for the implementation of the investment, including EUR 6.7 million in grants and EUR 16.10 million in loans. All funding is in the form of grants.

The milestone related to both the grant and loan components of the investment, “Issuance of co-financing decisions for drinking water supply projects”, was included by Slovenia in the second payment request.

The first two targets related to the grant component of the investment, for which Slovenia is already reporting completed projects to the EC, are being included in the fifth and sixth payment requests. The third grant-related target and the first loan-related target will be included by Slovenia in the final payment request, which will be submitted to the EC no later than 30 September 2026.