PARTICIPATION OF UKRAINE IN THE IMPLEMENTATION OF EUROPEAN UNION STRATEGY FOR THE DANUBE REGION

1. PARTICIPATION OF UKRAINE IN THE IMPLEMENTATION OF EUROPEAN UNION STRATEGY FOR THE DANUBE REGION

2. • Second macro-regional EU strategy • • April 13, 2011 – Strategy endorsed at the General Affairs Council meeting • • June 24, 2011 – Endorsement of the European Council • • Consists 8+5 countries + Ukraine (Odessa, Ivano-Frankivsk, Transcarpathian, Chernivtsi regions) • • principle of the „3 NOs” (no new money, institutions and legislation) - keeping the existing financial instruments • principle of „3 YES” (better alignment of funding, more efficient coordination of instruments and new ideas)

3. STATE-PARTICIPANTS OF THE STRATEGY: • EU Member States: • Austria; • Bulgaria; • Czech Republic; • Germany; • Hungary; • Romania; • Slovak Republic; • Slovenia; • Non - EU States: • Bosnia and Herzegovina; • Croatia; • Montenegro; • Moldova; • Serbia; • Ukraine

4. PLAYERS OF THE STRATEGY • European Commission • Initiated the Strategy • Assists the implementation process • National Contact Point (NCP) • National coordination • Ensures continuous political support and provides political supervision • Priority Area Coordinator (PAC) • Directs actions in the priority area, supervises practical implementation • Generates projects at the national and regional level, as well

5. UKRAINIAN STEPS TOWARDS DANUBE REGION STRATEGY IMPLEMENTATION Coordination Centre for participation of Ukraine in the implementation of the EU Strategy for the Danube Region was created 21.09.2011 and chaired by First Vice Prime Minister of Ukraine – Minister of economic development and trade Andriy Klyuyev _____ Deputy Minister of economic development and trade of Ukraine Volodymyr Bandurov was appointed as National coordinator for cooperation with countries participating in the Strategy ____ The official list of Coordination Centre members was approved 11.11.2011 ___ A list of priority projects was developed ____ Forming the network of contact points - the responsible central and local authorities for the implementation of the Strategy at priority and project levels

6. 11 PRIORITY AREAS OF THE STRATEGY • improving mobility and multimodality (1) - Austria and Slovenia • encouraging more sustainable energy (2) - Hungary • promoting culture and tourism, people to people • contacts (3) - Bulgaria Connecting the Danube region • -------------------------------------------------------------------------------- • restoring and maintain the quality of waters (4) - Hungary • managing environmental risks (5) - Hungary • preserving biodiversity, landscapes and the quality of air and soils (6) – Germany - Bavaria Protecting the environment in the Danube region • ------------------------------------------------------------------------------ • developing the Knowledge Society through research, education and information technologies (7) - Slovakia • supporting the competitiveness of enterprises, including cluster development (8) – Germany - Baden-Wurttemberg • investing in people and skills (9) - Austria • ------------------------------------------------------------------------------ Building prosperity in the Danube region • improving institutional capacity and cooperation (10) – Austria - Vienna • working together to promote security and tackle organized and serious crime (11) - Germany Strengthening the Danube region

7. TRANSPORT INFRASTRUCTURE Responsible bodies for the projects: Ministry of Infrastructure of Ukraine, Odessa, Chernivtci, Ivano-Frankivsk and Transcarpathian OSAs Priority projects • Construction of the car ferry Izmail (Ukraine) - Tulcea (Romania) and the coastal road Complex; • 2. Construction of highway "Odessa - Reni" to the 1st category parameters with the bridge over Dniester estuary; • 3. Restoration and further development of Ukraine's transit potential between major nodes of Pan-European transport network (TEN-T); • 4. Construction of railway from the Reni port to the railway line Odessa – Izmail; • 5. Creation of River Information Services on the Ukrainian part of Danube River; • 6. Setting up an integrated ship waste management on the Ukrainian part of Danube River; • 7. International cargo and passenger ferry crossing; • 8. The development of navigation on the Tisza river, the construction of river port in the Transcarpathian Region. • in order to - • - increase the cargo transport on the Danube river by 20% by 2020 compared to 2010. • - develop efficient multimodal terminals at river ports along the Danube and its navigable tributaries to connect inland waterways with rail and road transport by 2020.

8. TRANSPORT INFRASTRUCTURE Construction of railway from the Reni port to the railway line Odessa – Izmail Indicative budget –28,8 mil.euro Development of ports in the Danube river basin into multimodal logistics centers Construction of highway "Odessa - Reni" to the 1st category parameters with the bridge over Dniester estuary Indicative budget – 1,3 bln. euro Providing of high-quality transport connection with Southern Europe, bypassing the Carpathian Mountains Expression of interest from Austria ODESSA ODESSA RENI IZMAIL RENI

9. TRANSPORT INFRASTRUCTURE Setting up an integrated ship waste management on the Ukrainian part of Danube River Indicative budget – 2,5 mil.euro Establishing a sustainable, environmentally sound and transnationally coordinated approach in ship waste management along the Danube Expression of interest from Austria Creation of River Information Services on the Ukrainian part of Danube River Indicative budget – 4,1 mil. euro Increasing the safety, efficiency and environmental- friendliness of inland navigation

10. TRANSPORT INFRASTRUCTURE International cargo and passenger ferry crossing Indicative budget– 6,3 mil.euro Development of multimodal transport in the region of the Lower Danube and up the stream Expression of interest from Austria Construction of the car ferry Izmail (Ukraine) - Tulcea (Romania) and the coastal road Complex Indicative budget – 9 mil. euro Opening of a sustainable movement of freight and passenger flows in full compliance with the development of logistics schemes using the international transport corridor № 9 Expression of interest from Austria

11. TRANSPORT INFRASTRUCTURE The development of navigation on the Tisza river, the construction of river port in the Transcarpathian Region Increasing of tonnage of cargo carried by the river Restoration and further development of Ukraine's transit potential between major nodes of Pan-European transport network (TEN-T) Indicative budget - 2,5 mil. euro Improvement of the quality of the transport system and logistic chains between the nodes and within the nodes – with a focus on sustainable transport modes such as railways and roads .

12. ENERGY Responsible bodies for the project: Ministry of Energy and Coal Industry of Ukraine, Odessa OSA Priority project: Construction of Bolgrad vapor-gas power stations 30-50 MW Indicative budget – 43,7 mil. euro To have an increased energy production originating from local energy sources to increase the energy autonomy ODESSA BOLGRAD

13. CULTURE AND TOURISM Organization of cross-border routes of green, rural and wine tourism Indicative budget - 2,5 mil.euro Increasing of tourist quantity to the Danube region Developmentof cruise tourism Indicative budget – 6 mil.euro Improvement of planning and infrastructure for tourism, creation of tourist destinations Responsible bodies for the projects: State Agency of Ukraine for Tourism and Resorts, Odessa OSA

14. ENVIRONMENTAL RISKS Responsible bodies for the project: Ministry of environment and natural resources of Ukraine, Ministry of EmergencySituationsof Ukraine Odessa, Ivano-Frankivsk, Transcarpathian, Chernivtsi OSAs Priority projects • Creating a single geoinformation system of the Danube River Basin; • Realization of the complex ecological monitoring and development of the model of prediction of the ecological condition of the basin of Danube Delta; • Integrated resource management in the basins of the Tisa, Prut and Siret rivers, including the prevention of disasters and integrated pollution prevention and control; • Fortification of Danube River's banks from the Ukrainian side, first of all within settlements; • Improving cooperation in monitoring, prevention and elimination of cross-border emergencies.

15. ENVIRONMENTAL RISKS Realization of the complex ecological monitoring and development of the model of prediction of the ecological condition of the basin of Danube Delta Indicative budget - 2,0 mil. euro Promoting convergence of hydrological and hydrochemical monitoringin accordance with the requirements of Water Framework Directive. Integrated resource management in the basins of the Tisa,Prut and Siret rivers, including the prevention of disasters and integrated pollution prevention and control Indicative budget - 13,5 mil. euro The modernization of the integrated monitoring and warning system for the protection of local communities living in the border areas.

16. ENVIRONMENTAL RISKS Improving cooperation in monitoring, prevention and elimination of cross-border emergencies Indicative budget: 2-4 mil. euro European legislation: - EU Directive on flood management and risk assessment of floods (Directive 2007/60/EU 23.10.2007); - Program of Action of the International Commission for the Protection of the Danube River on sustainable flood protection. Fortification of Danube River's banks from the Ukrainian side, first of all within settlements (creation of anti-floods polders) Indicative budget: 7-10 mil.euro Creating a single geoinformation system of the Danube River Basin Indicative budget: 2,0 mil. euro

17. BIODIVERSITY, LANDSCAPES AND THE QUALITY OF AIR AND SOILS Responsible bodies for the project: Ministry of environment and natural resources of Ukraine, Ministry of Emergency Situationsof Ukraine, Odessa and Chernivtsi OSAs Priority projects • Restoration and preservation of the unique aquatic resources of the Danube River and the northwestern Black Sea; • Evaluation of populations of migratory water-birds in the Danube region; • Expanding zones of protected areas, the activities in preservation and restoration ecosystems of wetlands in the Danube Delta; • Formation of cross-border forest-wood-based cluster on the Danube river basin according to the Carpathian and Alpine Conventions.

18. BIODIVERSITY, LANDSCAPES AND THE QUALITY OF AIR AND SOILS Restoration and preservation of the unique aquatic resources of the Danube River and the northwestern Black Sea Indicative budget - 4,2 mil. EURO Evaluation of populations of migratory water-birds in the Danube region Indicative budget - 0,2 mil. EURO • European legislation: • “Vision of the Danube Delta” WWF Program; • Danube-Carpathian Programme WWF.

19. BIODIVERSITY, LANDSCAPES AND THE QUALITY OF AIR AND SOILS Expanding zones of protected areas, the activities in preservation and restoration ecosystems of wetlands in the Danube Delta Indicative budget - 2,0 mil. EURO Formation of cross-border forest-wood-based cluster on the Danube river basin according to the Carpathian and Alpine Conventions Indicative budget - 2,5 mil. EURO International legislation: - EU Forestry Action Plan 2007-2013; - Commission’s Communication of 27.02.2008 on sustainable innovative development of productions grounded on the Forestry Sector; - The St-Petersburg Declaration of 44 countries Ministers;

20. SECURITY Responsible bodies for the project: Ministry of internal affairs of Ukraine, Administration of Border-Guards Service, State customs service Priority projects Security offensive – improving police cooperation More effective fight, above all against cross-border crime as well as organized and serious crime Ukraine has supported the projectproposed by Germany Germany is interested in Ukrainian participation to the realization of following projects. Border regime and document inspection management Facilitated border-crossings for humans and goods, a more coordinated and harmonize control regime Promoting the rule of law and fighting against corruption Promoting and deepening a legal order under principles of the rule of law Danube cooperation and information Centre Facilitated and harmonized customs formalities, thus facilitated exchange of goods, better economic development of the region

21. SUMMARY INDICATIVE SOURCES OF PROJECTS FINANCING INTERNATIONAL FINANCIAL INSTITUTIONS • Construction of the car ferry Izmail (Ukraine) - Tulcea (Romania) and the coastal road complex; • Construction of highway "Odessa - Reni" (length - 261 km) to the 1st category parameters with the bridge over Dniester estuary (length - 5709.3 m). • Construction of railway from the Reni port to the railway line Odessa - Izmail • Creation of River Information Services on the Ukrainian part of Danube River • International cargo and passenger ferry crossing • Construction of Bolgrad vapor-gas power stations 30-50 MW, Odessa region • Fortification of Danube River's banks from the Ukrainian side, first of all within settlements

22. SUMMARY INDICATIVE SOURCES OF PROJECTS FINANCING DONORS OF INTERNATIONAL TECHNICAL ASSISTANCE DONORS OF INTERNATIONAL TECHNICAL ASSISTANCE + INTERNATIONAL FINANCIAL INSTITUTIONS • Setting up an integrated ship waste management on the Ukrainian part of Danube River; • The development of navigation on the Tisza river, the construction of river port in the Transcarpathian region. • Development of cruise tourism; • Improving cooperation in monitoring, prevention and elimination of cross-border emergencies; • Evaluation of populations of migratory water-birds in the Danube region; • Expanding zones of protected areas, the activities in preservation and restoration ecosystems of wetlands in the Danube Delta; • Formation of cross-border forest-wood-based cluster on the Danube river basin according to the Carpathian and Alpine Conventions; • Organization of cross-border routes of green, rural and wine tourism. • Restoration and further development of Ukraine's transit potential between major nodes of Pan-European transport network (TEN-T); • Integrated resource management in the basins of the Tisa, Prut and Siret rivers, including the prevention of disasters and integrated pollution prevention and control; • Restoration and preservation of the unique aquatic resources of the Danube River and the northwestern Black Sea.

23. NEXT STEPS • Ukrainian side will send to coordinators of priority areas within the Strategy and Donors: • contact data of Ukrainian organizations and bodies, which are responsible for certain priority area and projectfrom Ukrainian side; • information about the context of projects and current project documentation. • Ukrainian side expects from Donor Communityand participating-countries: • feedback concerning the proposed projects; • recommendation concerning next steps for projects preparation of common interest • (information about the format of projects development, the procedures and deadlines • of the projects proposals submission); • - information in advance regarding planned international events within the Strategy; • - assistance by the identifications of sources of financing of priority projects, especially from EU and member-states support in the development of legal base for availability of EU structural funds for Ukraine.

24. THANK YOU FOR YOUR ATTENTION!