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Project Cycle Management Manual


Background

In April 1991, the Act on Subsides for Environmental Activities in Eastern European Countries was adopted by the Danish Parliament. The Danish Environmental Support Fund for Eastern Europe (DESF) was subsequently established.

In 1993, the DESF was incorporated into the new Environment and Disaster Relief Facility (EDRF), a new Danish facility for the support of environment and disaster areas in Eastern Europe and developing countries. This initiative was based on the changes in Europe after the collapse of the Berlin Wall in 1989 and to follow-up the intentions from the UN Conference in Rio on Environment and Development in 1992. The intention is to annually increase funds to support environmental and disaster issues until the total Danish support constitutes 0,5 % of Gross National Income in year 2005. Funds are distributed fifty-fifty to environmental and disaster issues respectively.

In October 1993, the "Strategy for Environmental Activities in Eastern Europe" was drawn up and has been the basis for environmental assistance to Eastern Europe. The DESF was administered by the Danish Environmental Protection Agency (DEPA).

From 1999, the name of the EDRF was changed to the Environment, Peace and Stability Facility. The environmental part of the facility is supporting projects in Eastern Europe, specific developing countries and the arctic regions. At the same time the name DESF has been changed to Danish Cooperation for Environment in Eastern Europe (DANCEE), still administered by DEPA.

The funds for developing countries administered by DEPA is administered by the Danish Cooperation for Environment and Development (DANCED). Funds for the arctic region are administered by the Danish Cooperation for Environment in the Arctic (DANCEA), a DEPA division.

Denmark's environmental assistance under the Environment, Peace and Stability Facility comprises not only the DANCEE Programme but also - in 1994-96 - environment-related sectoral assistance and the Green Investment Facility under the Investment Fund for Central and Eastern Europe (the IØ Fund). From 1998, the environment-related sectoral assistance is designated sector-integrated environmental assistance and is an element of the Government's Baltic Sea Initiative in the environment sector. From 1998, the environmental assistance are supplemented with the Environmental Soft Loan Programme for Eastern Europe (MKØ), administered by the Danish State Export Credit Agency (EKF).

Denmark's assistance in the environment sector is co-ordinated by the Danish Environmental Protection Agency (DEPA), in that DEPA discusses the sectoral programmes with the ministries and agencies implementing them and guides the environmental approach. DEPA is also the consultation party on the environmental aspects of projects under the IØ Fund's Green Investment Facility. Lastly, DEPA has a seat on the board of Nordic Environment Finance Corporation (NEFCO). Many Danish players with different expertise thus work together and supplement each other's environmental activities.

Grants to environmental assistance in Eastern Europe from 1996 to 1999.

 

DKK million

1996

1997

1998

1999

DANCEE

300

430

400

500

Sector Integrated Env. Ass.

100

100

140

175

"Green Facility" (IØ)

100

100

70

70

"Soft Loans" (MKØ)    

45

60

Total

500

630

655

805


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