GEF PARTNERSHIP ON THE BLACK SEA - DANUBE BASIN

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GEF PARTNERSHIP ON THE BLACK SEA - DANUBE BASIN

• An example of GEF leveraging regional stakeholder
  support for the clean-up of a common water body

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(No Transcript)
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The Black Sea

• Connected to the Mediterranean Sea by narrow
  (700m) and shallow (70m) Bosphorus Strait
• Depth exceeds 2km
• Replenishment of bottom waters can take hundreds
  of years
• Largest natural anoxic basin in the world due
• to bacteria at bottom
• Virtually dead below a depth of about 180m
• Surface waters support rich and diverse
• marine life
• Supports livelihoods of millions through
• fisheries, tourism and transportation route

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Degradation of the Black Sea

• Catastrophic decline of ecosystem in recent three
  decades due to
• increased loads of nutrients from rivers
• raw sewage, heavy metals, solid waste from
  coastal cities and oil spills
• overexploitation of fish stocks
• invasion of alien species Mnemiopsis leidyi
• Serious consequences for biodiversity, public
  health, fisheries, tourism and amenity values

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The Black Sea Basin

• Almost 1/3 of the entire land area of continental
  Europe drains into the Black Sea
• Danube, Dnieper, and Don Rivers
• 17 countries
• 13 capital cities
• 160 million persons
• Intensively cultivated agricultural land
• Main sources and loads of nutrients
• International rivers (229,000 t/y N 40,000 t/y
  P)
• Domestic and industrial point sources (148,000
  t/y N 8,700 t/y P)
• National rivers (15,000 t/y N 2,700 t/y P)

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GEF SUPPORT

• Preparation work (completed)
• Environmental Program for the Danube
• Black Sea Environment Program
• Transboundary Diagnostic Analysis
• Strategic Action Plans
• Implementation Process
• WB Investment Fund for Nutrient Reduction
  (US70M)
• UNDP/UNEP regional capacity building projects
  (US25M)
• EBRD Slovenia Pollution Reduction Project
  (US10M)
• UNIDO Transfer of Env. Sound Technology (US1M)
• UNDP Building Env. Citizenship in the Danube
  (US 0.75M)

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World Bank Standard Operations Practice
LOAN
GOV. CONTRI- BUTION
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Partnership Operations Practice
GRANT
GOV.
DONOR
GRANT
DONOR
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Value-added of GEF Partnership

• US95M over several tranches will leverage
  US180M of donor funds
• Catalytic effect DABLAS as channel of donor
  funds
• US235million/year of EU ISPA and associated
  country funds to municipal hotspots in five
  accession countries over 4 years
• Countries have access to international best
  practice and expertise

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Partnership Investment Projects
Title GEF Grant Co-Funding Leveraged Ratio (GEFOther)
Under Implementation
Bulgaria Wetlands Restoration and Nutrient Reduction 7.50 6.00 1 0.8
Romania Agricultural Pollution Control 5.15 5.65 1 2.0
Under Preparation
Croatia Nutrient Reduction 4.00 8.00 1 2.0
Hungary Nutrient Reduction 9.70 19.00 1 2.0
Moldova Agricultural Pollution Control 5.00 40.00 1 8.0
Moldova Rural Investment Support Services and APC 2.00 12.00 1 6.0
Russia Krasnodar Agricultural Pollution Control 5.00 7.00 1 1.4
Russia Rostov Reduction of Nutrient Discharges and Methane Emissions 10.00 21.80 1 2.2
Slovenia Pollution Reduction (EBRD) 10.00 45.00 1 4.5
Turkey Watershed Rehabilitation and APC 6.00 53.00 1 8.8
Ukraine Integrated Coastal Zone Management 4.00 8.00 1 2.0
Ukraine Azov Black Sea Corridor Biodiversity Conservation - APC Comp. 0.84 8.44 1 10
Total 69.19 233.89 1 3.4
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Case studies of different uses of GEF grant

• TURKEY - Integrated approach to agricultural
  pollution control
• SLOVENIA - Financial intermediation for reduced
  hazardous discharges
• UKRAINE - Inclusion of environment on the agenda
  of cash strapped local governments
• ROMANIA Health benefits help leverage local
  contributions for nutrient reduction
• VARIOUS - Policy and legal revisions
• ALL - Awareness Raising

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TURKEY Integrated approach to agricultural
pollution control

• Weak government approach to reducing NPS nutrient
  pollution
• No concerted effort
• Lack laboratory capacity
• Lack coordination among relevant agencies
• But, good experience with watershed
  rehabilitation
• Participatory approach addressing land
  degradation in upper watersheds and cross
  sectoral cooperation among rural services
  agencies.
• GEF funds used to
• Build capacity
• Extend cooperation to environmental agencies
• Enable extension of the successful integrated
  microcatchment management approach to lower
  watersheds in the Black Sea region

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SLOVENIA Financial intermediation for
investments leading to reduced discharges

• High risk loans for small/medium municipalities
  and industries for improved production and
  treatment technologies
• Financial Intermediaries do not have capacity for
  environmental assessment of sub-projects
• GEF grant provides
• Incentive for FIs to engage in such activities
• US45million to government from EBRD for
  on-lending to fund subprojects

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UKRAINE Inclusion of environment in
cash-strapped local governments agenda

• Difficult economic conditions and pressing social
  problems
• environment not a priority on local policy
  makers agendas
• GEF grant funds
• investments in environmental rehabilitation
  financially feasible
• triggered policy reforms leading to reduction of
  wastewater spills in the Black Sea

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ROMANIA Health benefits help leverage local
contributions for nutrient reduction

• Health effects and nutrient leakages to the
  groundwater due to poor manure management
• GEF funds leveraged in-kind and cash contribution
  (appr. US 3 million)
• Central Government
• USAID
• Farmers
• Calarasi county government

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VARIOUS Policy and legal reforms
Country Policy / Legal Reform
Moldova, Romania, Turkey Harmonization with EU Dangerous Substances Directive (Tur. and Mol. only) and Nitrates Directive Adoption of Code of Good Agricultural Practices
Moldova Development of Water Quality Management Plan for Moldova Ukraine Dnister River Basin
Russia Phase-out of phosphate containing detergent use in households in Rostov City
Ukraine Development of a Coastal Zone Management Plan and associated policy and legal framework
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ALL COUNTRIES Awareness raising

• Partnership Website
• www.worldbank.org/blacksea-danube
• Regional Workshop on Agricultural Pollution
  Control Good Practices (Poland, Sept. 2002)
• Distance Learning Network for the Black
  Sea/Danube Basin for efficient exchange of
  experiences/dissemination of information
• First module Network for Environmentally
  Friendly Agriculture in the Danube/Black Sea Basin

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Conclusions

• Catalytic effect demonstrated
• Many successes already achieved
• Creative, innovative technologies, management
  practices and financing schemes

• Project pipeline robust governments and donors
  on board
• Likely reduction in nutrients significant