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EU Baltic Sea Strategy and the Northern Dimension 19 th Baltic Sea Parliamentary Conference Mariehamn, 29-31 August 2010. Jaakko Henttonen, NDEP Manager EBRD St Petersburg. Common issues for EU Strategy for Baltic Sea Region and NDEP. Reduction of nutrient inputs into Baltic Sea
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EU Baltic Sea Strategy and the Northern Dimension 19th Baltic Sea Parliamentary Conference Mariehamn, 29-31 August 2010 Jaakko Henttonen, NDEP ManagerEBRD St Petersburg
Common issues for EU Strategy for Baltic Sea Region and NDEP • Reduction of nutrient inputs into Baltic Sea • Intensive cooperation with Russia following adoption of the HELCOM National Action Plan • Development of working relations with Belarus • Ensuring adequate funds for priority actions
Baltic states, Poland and Belarus are also part of the Northern Dimension ► More than 50% of phosphorous load into the Baltic Sea from Poland►Belarus and Russia need more effective municipal wastewater treatment
Belarus is part of the Baltic Sea catchment area Western Dvina Vitebsk ● ● Poletsk Neman Minsk ● ● Grodno Bug ● Brest
Locations 2 Map of 17 Poultry Farms in Leningrad Oblast
Northern Dimension Environmental Partnership (NDEP) – key points • NDEP is recognised as effective model for international cooperation based on co-financing structure by loans, grants and local funds; extended until 2017 • EBRD, NIB, NEFCO, EIBare the Implementing Agencies of NDEP projects to provide the inevitable loans for financial packages and to prepare project concepts • NDEP delivers real projects - €112 million committed for 22 non-nuclear projects leveraging €3.5 billion in total investment; Present non-committed balance ca EUR15 million. • Due to intensive project development new funds will be sought by the NDEP Steering Group shortly
London • London 3 2010 • London 3 Dec 2010 3 December 2010 London 8 October 2010 Minsk 9 April 2010 London
Sosnovyi Bor Municipal Water and Wastewater Rehabilitation € 3.3m Equity Loans Grants
Kaliningrad Water and Wastewater Rehabilitation - €110m Equity Loans Grants
Environmental Benefits of NDEP Once implemented, the 16 environmental window projects will cut the pollution load by: • Phosphorous – 1,840 tonnes per year • Nitrogen – 5,568 tonnes per year • BOD (Biological Oxygen Demand) – 32,284 tonnes per year • SO2 – 2,680 tonnes per year • CO2 - 351,000 tonnes per year
Other benefits • Prevention of further deterioration of municipal systems and services and associated adverse environmental and social impacts • Transfer of modern project and investment planning, financing and management skills • Paradigm shift from budgetary funding to self-financing through full cost recovery
Northern Dimension Environmental Partnership South-western Wastewater Treatment Plant in St Petersburg Case illustration
ST. PETERSBURG - SOUTHWEST WASTEWATER TREATMENT PLANT(SWTP) in 2002
ST. PETERSBURG - SOUTHWEST WASTEWATER TREATMENT PLANT(SWTP) in 2005
ST. PETERSBURG – INAUGURATION OF THE SOUTHWEST WASTEWATER TREATMENT PLANT(SWTP) Inauguration September 22, 2005
ST. PETERSBURG SOUTHWEST WASTEWATER TREATMENT PLANT(SWTP) Main Components: - Wastewater treatment plant EUR 149 million - Inlet pipeline EUR 15 million - Sludge incineration plant EUR 30 million (ready spring 2007) Total cost of project:EUR 194 million
ST. PETERSBURG SOUTHWEST WASTEWATER TREATMENT PLANT(SWTP) Environmental Effects: • Reduction of nutrient to Gulf of Finland: - BOD 16.600 tons/year - Phosphorus 360 tonnes/year - Nitrogen 2.200 tonnes/year • Enough treatment capacity for treatment of all municipal wastewater • After SWTP, approx. 85% of the City of St. Petersburg municipal wastewater is treated
Financial sources (1) ● Credits - where to borrow from?→ International Financing Institutions: EBRD, NIB, NEFCO, EIBoffer long-term loans, 10-15 year maturities; IFIs lead NDEP project preparation → NIB Baltic Sea Environmental Facility (EUR 500 million) → Commercial Banks: still short-term lending with various terms; guarantees possible
Financial sources for BSAP (2) ●International Grants - where to find them? → Active bi-lateral programs (SIDA, Finland, Norway etc.) → Multilateral: NDEP linked with IFI loans → European Commission: EU programmes with national/ local counterpart funding, ENPI; EU Baltic Sea Strategy → Private foundations: provision of catalytic seed money and bringing high-level publicity & increased awareness
Financial sources for BSAP (3) ●National funding sources → National Federal Programmes e.g. Clean Water coordinated by Ministry of Regional Development in Russia → Regional Allocations → Municipal Budget resources → Self-financing based on tariff revenues
NDEP - future activities • NDEP cooperates closely with HELCOM and other regional organizations for good coordination of joint activities. EU Strategy for the Baltic Sea Region is a key guideline. • Project preparation has commenced in Belarus in 2010 by NIB and EBRD; significant bilateral support from Sweden, Finland and Austria • Coordination with national programs such as “Clean Water” in Russia and Belarus for multiple benefits. • 2010 challenges: ensuring good progress for Neva-project and wastewater treatment in Kaliningrad; waste management of agro-industries by NEFCO in Lenoblast ; new projects in Pskov, Petrozavodsk and Lenoblast in Russia as well as in Belarus • New funds required for the pipeline activities. EC and Russia lead financial contributors with Sweden, Germany and Finland.
Our common tasks • “Every little counts” in the Baltic Sea basin • International agreements are to be integrated into national targets and policies including necessary financial commitments • National targets are applied into regional and municipal actions down to citizen level • Every household and enterprise is equally responsible for their own share - for a Cleaner Baltic Sea
For more on NDEP… Please contact: Jaakko Henttonen,NDEP Manager EBRD RO, Nevsky Prospekt 25, St Petersburg Tel. +7 812 7035525; Fax: +7 812 703 55 26 Email: henttonj@ebrd.com OR Ewa Manik, NDEPAdministrative Officer EBRD, One Exchange Square, London EC2A 2JN Tel. +44 207 338 7196, fax +44 207 338 7486 Email: manike@ebrd.com Or visit: www.ndep.org www.ebrd.com www.nib.int www.nefco.org