Environmental Investment Centre (EIC)

Environmental Investment Centre (EIC) Rävala pst 8, TALLINNTel: 627 4171Fax: 627 4170E-mail: info@kik.eehttp://www.kik.ee

A foundation, legal body under private law Established by the Estonian Government, Ministry of Finance on 11.05.2000 Registered on 02.06.2000 Who is EIC?

Objective of the EIC: • Improved state of Environment • Support for: • liquidation of environmental damage related to the utilisation of natural resources; • restoration of the state of the environment; • assisting the natural renewal of renewable natural resources; • researching the possibilities for additional supply of natural resources and recovery of waste; • monitoring the environment;

Objective of the EIC (continued): • implementation of environmental measures reducing pollution; • organisation of environmental research and protection of natural objects; • activity targeted to liquidation of pollution centres causing environmental pollution or to restoration of former state of environment; • compensation of damage caused by species under protection.

Task of the EIC: • to provide investments for international, national, regional and local programs and measures, which are in conformity with environmental strategy in the field of: • environment protection; • nature conservation; • environmental and nature control;

Task of the EIC (continued): • elaboration and procurement of non-waste technology, equipment and other technical means; • environmental and nature conservation training and educational work and in-service training and propaganda; • solving other environmental problems of national and regional importance.

Structure of the EIC

Personnel of the EIC • Director • Assistant • Programme Manager • Programme Specialist • ISPA Coordinator • ISPA Project Coordinators (2 persons) • ISPA Financial Manager • Lawyer • Technical Supervision Specialist • Internal auditor • Accountants (3 persons)

EIC means: • the assets transferred to the Foundation upon establishment of the Foundation; • appropriations from state budget; • allocations from rural municipalities and city budgets; • special allocations of governments, legal and natural persons of foreign countries and international organisations;

EIC means (continued): • grants; • repayment of loans granted by the Foundation and related interest receipts; • funds received in course of benefit events of the Foundation; • other receivables.

Appropriations from State Budget(“Act on the Useof the Money Accruing from Exploitation of Environment” § 2, OJ I 1999, 54, 583, passed on 16 June 1999): • 100% pollution charges; • 50% packaging excise duties; • 100%fee for mining rights at the deposits situated in trans-boundary water bodies and in economic zone; • 30%fee for mining rights at the deposits of national importance; • 100%fee for special use of water of trans-boundary water bodies; • 50%fee for special use of water of the water bodies (except trans-boundary water bodies) and of groundwater layers;

Appropriations from State Budget(“Act on the Useof the Money Accruing from Exploitation of Environment” § 2, OJ I 1999, 54, 583, passed on 16 June 1999) (continued): • 80% hunting fees; • 100% price for the right of hunting for game; • 100% fee for the right of fishing; • 3,9%fee for the felling right of standing crop sold from the state forest for performing regeneration cutting; • 3,9%income from selling the timber produced by a manager of state forest by way of regeneration cutting; • 100% compensation for environmental damage

Selectionof projects for the programme 1. Application for financing • Applicant (e.g. municipality, private company, Ministry of Environment) shall fill in the application form established by EIC • Applications related to nation-wide and regional projects shall be submitted directly to EIC • Applications related to local projects to be carried out in a certain county shall be submitted to the environmental board of the county, where a list of local projects shall be completed, prioritised and then forwarded to EIC

Selectionof projects for the programme(continued) 2. Appraisal of project proposals • For reviewingtheproject proposals, the EIC forms a working group (expert group) for each environmental program • Project proposals are reviewed once a year during the second half of the year • After evaluation, projects considered as the most important on the basis of the evaluation criteria shall be included to the program • The Director of EIC presents programmes prepared by working groups for approval to the Board of EIC • The Board of EIC makes a decision on the financing of a programme or returns the programme to the Director of EIC for making amendments.

Financing procedure • The Financing procedure (following the reimbursement principle): • EIC notifies the Applicant that his/her project was approved and included to the programme • EIC sends financing agreement (contract) to the Client • Client returns fulfilled and signed contract to EIC, along with the required appendixes (project description, budget, copy of the contract between the client and employee, procurement summary) • EIC signs the contract and makes advance payment (30%, 50% or >50%) to the Client • The Client sends his invoices, progress reports and funding orders bearing the required signatures to the EIC • EIC makes payments only for works completed

Funding of programmesin 2001

Environmental Investment Centre (EIC)