Environmental Assistance to Eastern Europe

By the Danish Minister for Environment and Energy, Svend Auken

The eastward enlargement of the European Union holds great perspectives for Europe's environment. The EU's environmental rules alone will mean a significant tightening of environment policy in the applicant countries. Total air and waste-water pollution will have to be almost halved.

A great deal of effort lies ahead, which the CEEC (Central and Eastern European Countries) will be unable to finance themselves, as they have many other urgent tasks. There is therefore a need to increase the range of financing options - from the EU, the individual donor countries and international banks. In the EU we are at present discussing changes to the structural funds that will, in turn, provide more money for environmental tasks, though that is not their specific purpose. We will need to work with transitional schemes, but the environmental standard we have achieved ourselves must not be jeopardised in the name of harmonisation.

As an element of the preparatory work, Denmark has entered into agreements with Poland, the three Baltic States and Bulgaria on expanded co-operation on pre-accession. We are also assisting the Czech Republic in the water sector.

In Denmark, we decided long ago to provide environmental assistance on the most urgent pollution problems in Eastern Europe. We do this through both the Danish Environmental Support Fund (DESF) and sector-integrated environmental assistance in selected sectors such as energy, agriculture and transport. Protecting the immense natural resources in Central and Eastern Europe is another task that is being given ever-increasing priority.

What began almost as a rescue action prompted by the break-up in Central and Eastern Europe in 1989 has developed in just a few years into a coherent Danish environment policy on Central and Eastern Europe that is crystallising around two main elements.

The first element is a general position on what the CEEC should and must achieve with respect to environment policy. This means both fulfilling the obligations they have assumed in the international environmental conventions and taking the action needed to ensure a modern environmental and health standard. Gradually, an expectation - if not a demand - has arisen that if the CEEC want to be taken seriously, they will also have to implement an environment policy with a significant level of ambition.

The countries that have applied for EU membership will have to comply with the EU environmental regulations. And if they have not realised it before, then the negotiations for admission will make it evident for them that this means implementing environmental regulation, with the necessary institutions, and undertaking a wide range of investments in concrete projects.

The second element is the environmental assistance itself, which, in Denmark's case, is very substantial. Of the DKK 630 million set aside in the Appropriation Act in connection with the Environment and Disaster Relief Facility (EDRF), DKK 430 million are earmarked for the Danish Environmental Support Fund for Eastern Europe (DESF), DKK 100 million for sector-integrated environmental assistance (energy and nuclear safety, agriculture and transport), and DKK 100 million for the Investment Fund for Central and Eastern Europe's (IØ Fund's) "Green Investment Facility", which is used to buy shares in Danish companies investing in environmental projects in Eastern Europe.

A good example of a Danish project involves investigating and planning the phase-out of ozone-depleting substances in a number of countries, including Russia: a Danish grant of DKK 10 million has prepared proposals for a DKK 700 million grant from the Global Environment Facility for implementing the planned projects. The environmental effect is an almost complete phase-out of the production of ozone-depleting substances in Central and Eastern Europe, followed by export from Denmark of new Danish district heating pipes without these substances.

A particular challenge in the years ahead will be to ensure a balance between the countries at the head of the queue for EU membership and those that have to wait until later. We must help the former to fulfil their obligations on time, but we must also help to keep up the environment policy momentum in the latter. Such a difficult balancing act requires great care and attention.

A number of countries within the European Union, and among them Denmark, are front runners in the international environmental co-operation. However, other countries - especially those in Eastern Europe - must keep pace, not only for their own sakes but also because many environmental problems are transboundary problems. We have therefore attached importance to helping the countries to meet the requirements in the environmental conventions to which they have acceded. That applies, for example, to the Baltic Sea work, atmospheric pollution, ozone-depleting substances and hazardous waste.

Denmark has played an important part in the international process of negotiation on Europe's environmental problems, by hosting the Pan-European Conference of Environment Ministers in Århus (the Århus Conference) in June 1998. This was the biggest international environmental conference ever held in Denmark, and the main item on the agenda was the environmental integration of Eastern Europe[2].

The CEEC are being hitched to the environment policy wagon, and Western Europe has concentrated mainly on those countries. The next challenge in the Pan-European environmental process is the environmental integration of Russia, Belarus, Ukraine and the former Soviet republics. We must strive for better co-operation between the countries of Central Europe and the newly independent states further east, which must also be enabled to fulfil their environmental obligations.

One particular theme at the Århus Conference was public access to information on environmental issues and the involvement of the NGOs in the CEEC's environment policy. Good progress was made in 1997 on the preparation of a convention on access to environmental information which was subsequently signed at the 1998 conference[3]. It is no secret that many of the CEEC have been reluctant to publish environmental data.

Denmark's support has contributed to the fact that several of the countries now earmark a larger percentage of their gross national product for environmental purposes than many West European countries - including Denmark! Poland and the Baltic States are good examples of such a major effort. For every krone of Danish support, the CEEC have, on average, found three kroner to invest in Danish-supported environment projects.

There are still many environment tasks in the CEEC, and Denmark's environmental assistance will continue to act as a catalyst for other investments - both from international sources of finance, such as the EU's support schemes, international banks and from the countries themselves.

The main aim of the Danish Government's strategy on assistance for Eastern Europe is to help the new democracies as quickly as possible, using the experience that we have achieved in the field of environment in Denmark. I believe that aim has been achieved. We have gained a good reputation in many of the countries - particularly the Baltic States.

The support for Central and Eastern Europe is also helping to improve security in the region. Development and democratisation of the societies there will increase stability. That will not happen through rearmament. Improvements in the environment and energy sector contribute to the security policy. It can be called a form of "soft" security achieved through support for development of the countries and integration in a ramified network encompassing environment, democracy and economic development.

2. Comments

By Erik Hoffmeyer, former Governor of the Danish National Bank, Chairman of the Advisory Committee to the Danish Environmental Support Fund for Eastern Europe

As we all know, the transition of the CEEC and the former Soviet Union from a planned economy to a market economy has met far greater problems than anticipated.

The difference between a planned and a market economy requires not only decentralising decisions on production and sales, but also a wide range of new structural systems that were totally foreign to the old regimes.

In the past year, two crucial steps have been taken towards the transition to a market economy.

Firstly, from such analyses as are possible, it appears that the two regions (the CEEC and the former Soviet Union) as a whole have got off the ground, so their production can be expected to increase. Though that does not apply to all the countries, it seems to be the case for the most dominant country - Russia.

Secondly, it is noteworthy that the CEEC as a whole seem to have achieved the same total production as before the political upheaval in 1989 and the following years.

There are big differences between the countries, but Poland seems to have achieved a level of production that is somewhat higher than before the upheaval, while production in the Czech Republic and Hungary is at about the same level as in 1989.

The countries of the former Soviet Union, on the other hand, have not achieved the same satisfactory development; there, total production is estimated to be at half the 1989 level.

It is said that the countries must now enter the second phase of the transitional period - where the task is to adapt their institutional structures, including - particularly - their financial systems.

It is therefore pleasing that the Asian crisis, which once threatened to weaken the financial systems, appears not to have had far-reaching consequences.

Denmark's environmental support for the CEEC has so far been concentrated mainly in the region's Northern countries - those closest to Denmark. However, with the economic development described, we should perhaps consider assigning a somewhat larger part of our support to the countries of the former Soviet Union, as they have not managed to re-establish their production as strongly as those in Central and Eastern Europe.

A factor to be considered here is that for the CEEC, qualification for membership of the European Union has been a very powerful incentive for improving environmental standards.

This is also reflected in the fact that CEEC receiving Danish support have proven far more active in participating in the prioritisation of projects.

3. Danish Environmental Assistance to Eastern Europe 1994-96

3.1 Introduction

In April 1991, Act No. 223 on Subsidies for Environmental Activities in Eastern European Countries was adopted by the Danish Parliament, and the Danish Environmental Support Fund for Eastern Europe (DESF) was established.

The Danish Parliament then decided to establish a special environment and disaster relief facility (EDRF). As a result, Part VI of White Paper No. 1252 (June 1993) on Denmark's International support, "International Environment and Disaster Relief. An Action Plan" was drawn up. Later, the "Strategy for Environmental Activities in Eastern Europe" (October 1993) was drawn up for the EDRF as the basis for environmental assistance to Central and Eastern Europe.

Since 1994, Danish environmental assistance in Central and Eastern Europe has thus consisted of both the DESF facility and environment-related sectoral programmes, which are implemented in selected sectors, such as energy, nuclear safety, agriculture etc. With the repeal of Act No. 223 at the end of 1995, authority for the activities has since been based on a note to the Appropriation Act.

In the period 1994-96, an appropriation of DKK 734.5 million was made for DESF assistance. Of this, DKK 53.7 million was earmarked for six tender projects in 1996, but the final contracts were not signed until 1997.

The table below shows the total budget for environmental activities in CEEC in each of the years 1994-1996, and the amounts used. The total budget should be understood to mean the year's actual appropriation, interest from available funds, transfers of unused funds, etc. In the individual years, all but some few hundred thousand kroner of the total budget were used. Not included is the above-mentioned DKK 53.7 million earmarked in 1996 but not finally used until 1997.

The overall objectives of Danish environmental assistance to Central and Eastern Europe are to:

	contribute to the greatest possible protection of the environment and nature in Central and Eastern European and reduce both regional and global pollution, including transboundary pollution in the direction of Denmark
	help to ensure an environmentally acceptable political and economic development and support democracy and the transition to market economy, although with the greatest possible consideration for the environment
	promote the transfer of environmental knowledge and technology from Denmark to the CEEC, in the interests of both the recipient countries and Denmark.

Originally, an application model was used. The DESF required an application from a partnership between a Danish applicant and a partner in the recipient country. The project proposal had to be approved by the recipient country's authorities. These applications formed the basis for discussions on priorities between Denmark and the recipient countries. In 1995, this model was supplemented by a tender model, with tendering for projects jointly prioritised by Denmark and the recipient country[4].

Under the DESF, Denmark has entered into co-operation agreements with 12 Central and Eastern European countries: Estonia, Latvia, Lithuania, Poland, Russia, the Czech Republic, Slovakia, Hungary, Romania, Bulgaria, Ukraine, and Belarus. In each of these countries, a country programme has been drawn up for the environmental activities, which is usually updated every other year. The activities are mainly country specific but are also of a distinctly regional nature with implementation of cross-border sectoral strategies such as action to preserve the ozone layer and to protect the Baltic Sea, and strategies concerning climate change, biodiversity, unleaded petrol, combating oil pollution at sea, preventing acidification, etc.

An example of a formulated strategy is the "green" strategy of 1997 on biodiversity and sustainable management of nature and forest resources. The objective is to give higher priority to assistance on nature protection because relatively few funds were allocated to this area earlier.

The assistance targets mainly global or regional environmental problems and is often related to the CEEC's fulfilment of international environmental conventions or other relevant, international activities such as EU pre-accession. For procedures etc., see the section on administrative planning.

Denmark's environmental assistance under the Environment and Disaster Relief Facility for Eastern Europe (EDRF) comprises not only the Danish Environmental Support Fund for Eastern Europe (DESF), 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), as mentioned above. From 1998, the environment-related sectoral assistance will be designated sector-integrated environmental assistance and is an element of the Government's Baltic Sea Initiative in the environment sector.

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 makes recommendations to the Committee on International Expenditure. 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 Environmental Finance Corporation (NEFCO). Many Danish players with different expertise thus work together and supplement each other's environmental activities.

The activities in the 12 co-operating countries are briefly summarised below as an introduction to the projects on which Denmark and the respective countries co-operated from 1994-96.

For amplification of some of the themes mentioned in the following, readers are referred to various DEPA publications on environmental assistance to Central and Eastern Europe and particularly to the annual reports on the assistance.

3.2 Projects in the individual co-operating countries

The figures used in the country review and under regional assistance etc. are based on statistics from a database covering all projects under DESF. These figures deviate slightly from the total budget mentioned above. The two sets of figures are not directly comparable because the database is adjusted with accounting figures for completed projects, i.e. the original budget is written down, while in the financial control system, this is recorded as a write-back to the budget with a view to reallocation. There are also accrual differences with respect to the time of recording write-backs and cancelled sums. These factors explain the difference between the DKK 735 million and the DKK 741 million at present appearing in the statistics.

It should also be noted that there can be minimal differences between the tables and the database figures due to rounding up or down of decimals.

For each country, a table shows the size of the grant and the number of projects. The projects are broken down into TA projects, which are technical assistance projects, and IN projects, which are investment projects. The category "Other" includes institutional strengthening and nuclear safety.

3.2.1 Estonia

Danish assistance to Estonia started in 1991, and first mainly as technical assistance projects. In the first few years, Estonia did not have the funds to make any significant environmental investments.

Generally speaking, Danish assistance has been concentrated mainly in the water and waste sectors, accounting for 90 per cent of the Danish assistance. Within the water sector, most of the investment projects have been in the water supply sector. Denmark has co-operated with EBRD on the programme "Small Municipalities Environmental Programme", which focuses on water supply and waste water in 13 cities. Denmark has supported projects in three of the cities. The total costs of the programme is DKK 350 million and the programme is being carried out in a co-operation between Estonia, EBRD, NEFCO, EU-PHARE, Finland, Sweden, Norway, Switzerland and Denmark.

Within the waste sector, Denmark is co-operating with Estonia and EU-PHARE on the establishment of a national system for handling hazardous waste. The first phase of the project cost DKK 36 million, of which each partner contributed one third. The other investment project in the waste sector involves implementing a waste action plan in Järva County, including establishment of a landfill and a waste collection system.

In 1996, tenders were invited for waste water treatment in the run-off area of the Matsalu Bay, which is a sensitive natural area. In 1996, DKK 5.6 million was allocated for this project, but the final allocation has been increased to DKK 7 million. The project is part of a World Bank project costing DKK 40 million. However, the World Bank itself is only contributing DKK 13 million of this in the form of loans; the remainder is in the form of co-financing by Estonia itself and contributions from other donors.

Through co-financing with Estonia itself, other donors and the European Union, the Danish assistance has contributed to total environmental investments of DKK 76.6 million from 1994 to 1996. Co-financing of projects with international banks amounted to DKK 390 million and, here, the Danish funds acted as a catalyst. Today, Denmark is the second largest donor of environmental projects in Estonia, estimated by Estonian authorities at 18 per cent of total foreign assistance (1996). Finland is the largest donor, accounting for 46 per cent (1996).

Table 1: Total assistance to Estonia divided into project type and amount granted in million DKK in 1994-96

3.2.2 Latvia

State of the environment

The environmental problems in Latvia concern mainly waste water, waste and contaminated sites, caused by "past sins". For years, waste water both from households and industry has been discharged with no treatment. There are only a few waste water treatment plants of Western standard and they have been built for donor financed projects. As regards waste, unnecessarily large amounts of waste are produced by industry and regulation of domestic waste is very inadequate. All types of waste from most towns and villages are disposed of at landfills without special pollution prevention measures, giving rise to pollution of soil, surface water and groundwater.

The large number of contaminated areas are largely due to uncontrolled contamination from former military installations, including airports, ship yards, barracks and workshops. Added to this, the country's drinking water pipes and sewerage systems are worn out, environmental regulation of agriculture is no more than sporadic, general environmental legislation is lacking, and the environmental authorities are understaffed and poorly organised.

Most of the Danish environmental assistance in the period in question - 60 per cent - consisted of activities in the water sector. The category "other", which accounted for approx. 10 per cent, covers projects related to physical planning and institutional strengthening of the environmental administration. Denmark used to be the largest donor in Latvia, but has been overtaken in the last year by Sweden, which has initiated some large-scale waste water treatment and water supply projects.

In 1996, the Governments of Sweden and Denmark invited tenders for a waste water treatment plant in Latvia's second largest city, Daugavpils. Sweden provided DKK 18 million, and Denmark DKK 12 million, for this project, which is part of a DKK 290 million project covering both waste water treatment and water supply. The World Bank is helping to finance this project by means of a small loan.

Danish assistance through co-financing with Latvia and other donors has contributed to total environmental investments of DKK 100 million. These include a soft loan of DKK 18 million from the Danish State Export Credit Agency (EKF). Denmark has also participated in international bank financing providing an additional DKK 450 million.

Table 2: Total assistance to Latvia divided into project type and amount granted in million DKK in 1994-96

3.2.3 Lithuania

The principal environmental problems in Lithuania concern waste water treatment, hazardous and household waste, contaminated areas such as landfills, old industrial sites and former military installations. Air pollution is only seen as a problem in certain areas because most of the country's electricity supply comes from a nuclear power plant in Ignalina. This, however, constitutes a very serious risk. Furthermore, the Lithuanian authorities have experienced great difficulties in protecting natural amenities and in establishing an effective environmental administration.

Initially, Danish efforts were directed towards defining the nature and extent of Lithuania's environmental problems in order to set the priorities for both Danish and Lithuanian action.

The primary sectors - water, air and waste - accounted for more than 80 per cent of the Danish assistance. As the table below shows, waste water treatment has been the predominant sector. Through co-financing with recipient country sources and/or other donors or international financial institutions, Danish investments contributed to total environmental spending of DKK 535 million in 1994-1996. This figure includes a World Bank project. To this should be added another World Bank project costing of DKK 155 million, of which the Danish assistance amounted to DKK 6 million but cannot be said to have triggered the project. In this connection, soft loans from EKF are being used to pay the interest on 10-year loans for 12 waste water treatment plants, the largest of which is Vilnius Waste Water Treatment Plant.

Today, Denmark is the biggest donor of funds for environment projects in Lithuania, and the Lithuanian authorities have estimated that Denmark accounts for 43 per cent of all foreign environmental assistance.

Table 3: Total assistance to Lithuania divided into project type and amount granted in million DKK in 1994-96

The category "other" covers mainly projects on institutional strengthening of environmental administration, primarily concerning approximation to EU legislative requirements, and activities relating to the Ignalina power plant.

Lithuania was the first of the CEEC to receive Danish assistance for EU approximation. In 1996, grants totalling DKK 12.5 million were made for two EU approximation projects.

3.2.4 Poland

Owing to Poland's size, proximity to Denmark and relatively fast political and economic restructuring, it has received support for a large number of projects. The following target areas have been given priority: waste water treatment, water supply, air pollution, nature protection and cleaner technology.

From 1991 to 1998, 46 projects have been carried out at a total cost of DKK 153.5 million, see Table 4. Investment projects have accounted for 86 per cent of the Danish assistance. Altogether, the Danish assistance generated DKK 1,580 million in the form of co-financing trough funds, banks, international financial institutions and co-financing by Poland itself.

Water and air sector projects account for 86 per cent of the Danish assistance. The remaining 24 per cent was divided equally between projects in the waste sector, agricultural pollution and nature protection. Two thirds of all projects focus on the waste water sector, primarily waste water treatment. Although the whole of Poland is a run-off area to the Baltic, efforts have primarily been concentrated on selected regional river basins.

Table 4: Total assistance to Poland divided into project type and amount granted in million DKK in 1994-1996

3.2.5 Czech Republic

The main environmental problems in the Czech Republic are air pollution from the energy and transport sectors and industry. The Czech Republic has given priority to: 1) reducing air pollution, 2) improving water quality, including establishing purifying plants, and 3) reducing waste and hazardous waste volumes. Danish assistance in the years 1994-96 was divided equally between technical assistance and investments.

It has not been possible to include project financing by international donors in the current co-operation because the Czech Republic does not wish to raise international loans for environment projects. Despite this policy, several investment projects have been co-financed by the State Environmental Fund (supports projects by granting aid or soft loans within the areas: water supply, waste water treatment and reduction of atmospheric emissions) and the National Property Fund (clean-up operations at former state-owned undertakings). The Danish assistance to the Czech Republic during the period has triggered financing to the tune of DKK 210 million.

Table 5: Total assistance to the Czech Republic divided into project type and amount granted in million DKK in 1994-96

3.2.6 Slovakia

In the early phase of Danish environmental assistance to the federal state of Czechoslovakia, only 10 per cent of the projects supported by the DESF facility were in the area that became Slovakia. Immediately after the division of Czechoslovakia in 1993, only a very limited number of projects were initiated in Slovakia. However, this has changed in recent years, and there is now considerably greater focus on Slovakia.

Co-operation with Slovakia is concentrated on air, water, waste and institutions. In terms of funds allocated, IN projects account for approx. 75 per cent of the environmental projects.

Danish assistance to environmental projects in Slovakia has generated total financing of DKK 160 million. We have only succeeded in doing the preparatory work for one World Bank loan to Slovakia for a DKK 650 million project. The loan has not yet been raised.

Table 6: Total assistance to Slovakia divided into project type and amount granted in million DKK in 1994-96

3.2.7 Hungary

Danish assistance to Hungary from 1994-96 declined compared with the first years of co-operation 1991-93, due primarily to organisational changes in the Hungarian Ministry of the Environment.

Danish assistance, through co-financing with other donors, primarily Hungarian, contributed to total environmental investments of DKK 21 million.

Table 7: Total assistance to Hungary divided into project type and amount granted in million DKK in 1994-1996

3.2.8 Romania

Co-operation with Romania was initiated in 1993 with a project to help phase out ozone-depleting substances. The second project - preparing a Romanian national environmental action programme (NEAP) - commenced in April 1995. This Danish assistance was part of international assistance to Central and Eastern Europe, with each donor country undertaking to draw up such a national environmental action programme. In 1996, Danish assistance increased significantly with the allocation of DKK 27.5 million to 8 new projects. Altogether 11 projects have been initiated in Romania at a cost of DKK 38.9 million. Only few projects have been completed in Romania so far. Danish environmental assistance to Romania including co-financing totalled DKK 63.4 million in the period 1994-96.

In 1996, tenders were called for renovating a waste water treatment plant in Arad. The Danish grant amounts to DKK 9.5 million, including approx. DKK 8 million for equipment.

Table 8: Total assistance to Romania divided into project type and amount granted in million DKK in 1994-96

3.2.9 Bulgaria

In 1996, Danish assistance to Bulgaria increased significantly with a DKK 16 million grant for 6 projects. Since 1994, a total of DKK 22.3 million has been allocated to 9 projects. Nearly DKK 20 million has been allocated to IN projects. Total project costs amount just under DKK 30 million.

Table 9: Total assistance to Bulgaria divided into project type and amount granted in million DKK in 1994-96

3.2.10 Belarus

Negotiations on environmental co-operation with Belarus were initiated in 1992 along with the first DESF projects. However, co-operation did not get properly off the ground until 1994 when an agreement on environmental protection between Denmark and Belarus was signed.

In 1994-96, a total of approx. DKK 13 million was granted for seven projects (see Table 10). Total co-financing from other sources amounted to approx. DKK 50 million, of which a project on phasing out ozone-depleting substances accounted for approx. DKK 40 million. Part of Belarus is a run-off area to the Baltic Sea and environmental efforts have been concentrated in areas such as water and air. From the very start, however, nature protection has also been given priority in Belarus.

Danish environmental assistance to Belarus has, among others, facilitated DKK 300 million in co-financing by international financial institutions, with a further DKK 285 million still to come.

Table 10: Total assistance to Belarus divided into project type and amount granted in million DKK in 1994-96

3.2.11 Ukraine

Negotiations with Ukraine on environmental co-operation were initiated in 1992. The first environmental project commenced in 1993, and in June 1994, co-operation between Ukraine and Denmark was formally established when an agreement on environmental co-operation was signed.

In Ukraine, Danish assistance has focused on air pollution, safeguarding nuclear power stations, and waste water treatment. Protecting the Black Sea against pollution has been given even higher priority.

Danish support to overcome the aftermath of the Chernobyl disaster and to ensure the decommissioning of the remaining reactors at Chernobyl Nuclear Power Station is channelled multilaterally through support to the Nuclear Safety Account (under EBRD) and EU support schemes.

There is great technical potential for significant environmental projects in Ukraine because the entire public environmental sector, i.e. water supply, waste water and waste management, has been severely neglected. Furthermore, Ukrainian industry shows almost no regard for resource conservation, i.e. raw materials and energy, leading to wasteful utilisation of resources.

Due to the poor economy of both the Ukrainian State and Ukrainian enterprises as well as inadequate legislation and organisation, even obviously needed projects (for instance, water supply projects in areas with cholera and hepatitis) are difficult to carry out. That is why four projects worth DKK 22 million have not yet been initiated, are only being carried out to a very limited extent, or are awaiting necessary amendment to Ukrainian legislation. In view of the potentially big environmental improvements connected with these projects, DEPA has had funds set aside for them for a considerable period of time. In the years 1994-96, DESF provided DKK 45 million of a total of DKK 319 million earmarked for environmental projects in Ukraine.

Table 11: Total assistance to Ukraine divided into project type and amount granted in million DKK in 1994-96

In 1996, tenders were invited for two water projects in Ukraine for a total grant of DKK 14 million. One of these projects, combined with a preliminary project started earlier, will result in two World Bank projects to a total value of DKK 375 million.

3.2.12 Russia

Due to the political situation in Russia, co-operation with Russia was not initiated until 1992. In January 1993, an agreement was signed by Denmark and Russia on environmental co-operation.

Efforts have concentrated around the Russian Baltic Sea run-off area and Moscow. From 1994 to 1996, 26 projects received DKK 109 million (see Table 12). Total co-financing from other sources amounted to approx. DKK 265 million.

Around 50 per cent of the Danish assistance was allocated to projects in the water sector of the Russian Baltic Sea run-off area. Furthermore, most of the investment projects (IN), which account for more than 80 per cent of the total Danish assistance to Russia, are water projects.

In the waste water sector, the DESF facility thus supported renovation and improvement of several of the large waste water treatment plants, for instance in the cities of Pskov, Novgorod and Kaliningrad. In the two largest cities, St. Petersburg and Moscow, the DESF supported a large water investment programme under EBRD and the renovation of the Kuryanovo waste water treatment plant which is the world's biggest plant with a capacity of more than 3 million m3 a day. In Kaliningrad and St. Petersburg, projects are expected to be established using loans from international banks for a total value of approx. DKK 1,500 million.

Another important target area is air pollution control, accounting for approx. 20 per cent of the total Danish assistance. Other target areas have been given priority, too, such as disposal of domestic as well as hazardous waste, nature protection and environmental problems in agriculture.

Table 12: Total assistance to Russia divided into project type and amount granted in million DKK in 1994-96

3.3 Regional assistance, special themes, analyses, etc.

Projects covering several countries or with a specifically regional objective are carried out, as well as projects designed for one particular country. As an element of these projects, or independently of them, a range of analyses are made as a basis for implementing the entire environment assistance programme. This work is categorised as "Miscellaneous activities" or "Other activities".

Analyses have been carried out on the most serious environmental Hot Spots burdening the Baltic Sea and reception facilities for waste from ships etc. in Eastern Europe's Baltic ports. On a regional basis, operating manuals have been prepared in case of oil pollution. For these Baltic Sea activities, a grant of DKK 8.1 million has been made to four projects.

In one project costing DKK 3.5 million, nuclear cells on lightships, which present a serious radiation risk in the Baltic Sea, have been removed.

Four projects in the form of analyses and assistance have been carried out in Latvia and Lithuania to promote sustainable forestry and biodiversity. Together, these projects received a grant of DKK 3.8 million.

In each of the years 1994-96, Denmark transferred DKK 11.8 million as its contribution to the Nordic Environmental Finance Corporation NEFCO. However, only in 1997 did the contribution to NEFCO come from the Danish Environmental Support Fund for Eastern Europe (DESF). NEFCO uses the funds to invest in or make loans for environmental investments in Central and Eastern Europe, mainly involving Nordic firms.

In co-operation with WHO, Environment and Health Plans have been implemented in Latvia and Hungary. The project benefited from a grant of DKK 2.3 million and co-financing amounting to DKK 2.5 million.

A group of 13 projects can be described as general institutional strengthening. The projects, which include analyses and general assistance, concern strategy plans for phasing out leaded petrol in the region, clarifying the countries' environment tasks for admission to the European Union, work for soft loans for environmental projects, analysis of selected countries' environmental investments, co-operation on regional action on phasing out ozone-depleting substances and a study of air pollution in selected regions as an element of a project pipeline, and - lastly - collaboration with OECD on, e.g. a review of the environmental performance of several countries - the "Country Environmental Performance Reviews". In all, these 13 projects have received grants of DKK 16.0 million.

Grants amounting to DKK 0.8 million have also been made for conferences and travel for Central and East Europeans, and a sum of DKK 0.6 million has been used for collating data for the coming evaluation.

Lastly, a grant of DKK 3.8 million has been made for preliminary work on a major water and waste water project in Chisenau, the capital of Moldova. EBRD has agreed with Moldova that a large environmental loan shall be made for the project, the total cost of which is estimated at around DKK 400 million.

Altogether, DKK 50.6 million has been allocated to 28 projects of varying size that cannot be termed country-specific. The co-financing in these projects has been minimal - just under DKK 5 million, due to the special nature of the projects. Only one of the projects has been categorised as an investment project.

3.4 Danish environmental assistance during 1994-96

On the basis of the above-mentioned review, a breakdown can be made of Denmark's environmental assistance to Central and Eastern Europe during 1994-96, thereby giving a complete picture of the assistance.

Table 13: Total Danish environmental assistance in million DKK in the period 1994-1996, with a breakdown into target areas and project types

Support in the water sector area, which concerns mainly run-off to the Baltic Sea, accounts for slightly more than half the total support. There are two reasons for this: firstly, the CEEC themselves want many waste water treatment plants renovated and new ones built and, secondly, waste water treatment is a Danish stronghold. Only a few water supply projects have been carried out. In addition, most of the environmental projects for which the international financial institutions provide funding are waste water treatment projects.

Action against air pollution accounts for around 22 per cent of the total support provided, for treating flue gas from the energy sector, renewable energy projects, reduction of air pollution from industrial plants and reduction of ozone-depleting substances. This area covers a range of very large investments. It must also be seen in the light of the Danish Energy Agency's environment-related energy sector programmes in the period in question since the Agency's work to improve energy efficiency also helps to reduce air pollution. For the division between DESF and the environment-related energy sector programmes, readers are referred to the guide mentioned in note 4. "Guide to preparation of project proposals for environmental activities in Central and Eastern Europe (Projektforslag til miljøaktiviteter i Øst- og Centraleuropa)".

In 1993, it was decided internationally that lowest priority should be given to averting soil contamination unless there was a direct risk of contamination of drinking water. For this reason, not many projects have been initiated in this area.

More action might have been expected with respect to waste, but the CEEC themselves do not give the area very high priority and have therefore not been interested in strengthening action in it. However, changes are on the way, especially in those countries seeking admission to the EU.

The category "Other" covers primarily a range of support measures to strengthen the institutional structure of the environment sector in Central and Eastern Europe. This area accounts for almost 75 per cent of the "Other" category. The nuclear area accounts for about DKK 8 million of the almost DKK 80 million, while a residual category, including a DKK 12 million contribution to NEFCO, accounts for the rest.

Table 14: Danish environmental support by country and in total granted in million DKK during 1994-1996

Poland received most - DKK 153.5 million, constituting about 20 per cent of the Danish environmental assistance. Lithuania followed with DKK 126 million, then Russia, primarily the areas nearest to Denmark, with DKK 109.4 million. The Baltic States received by far the largest amount per inhabitant, although Latvia received less than the other two. Belarus and Hungary received least in the period - DKK 13 million and DKK 11 million, respectively.

The assistance was in accordance with Danish government strategy on environmental assistance to Central and Eastern Europe: to prioritise the Baltic region. Around 75 per cent of the assistance went to that region, which - environmentally - encompasses a larger area than normally thought of geographically because there are sources of Baltic Sea pollution in Belarus and Ukraine.

3.5 Co-financing

Since its establishment, DESF has regarded co-financing as important on the grounds that, Danish-supported projects are taken more seriously if the recipients of the projects have to make a substantial contribution themselves.

It is becoming clear that co-financing by the countries themselves is best achieved in investment projects. For technical assistance projects, the same degree of co-financing cannot be obtained from the countries themselves, apart from making manpower and premises available for the projects. Co-financing expresses high prioritisation of environmental projects.

In the period 1994-96, DESF contributed DKK 735 million of the total environmental expenditure of DKK 3.75 billion, most of it in the form of environmental investments. In other words, every DKK 1 from the DESF attracted DKK 4 in the form of co-financing amounting to DKK 3 billion. That represents a financial gearing of 1:4, which must be regarded as a satisfactory result.

Co-financing comes primarily from the recipients themselves, using money from local or national environmental funds. This applies primarily to Poland and the Czech Republic, which have very strong environmental funds. Co-financing also takes place in the form of soft loans from Eksportkreditfonden (EKF) (the Danish State Export Credit Agency) to the Baltic States, which is a temporary scheme. Most of the soft loans have gone to Lithuania, which has wanted to make full use of the scheme, whereas Latvia has only taken one soft loan for a single, large project.

Denmark also co-finances projects together with other donors - primarily Sweden and Finland - and extensively with the EU PHARE programme. However, the co-financing with PHARE is not arranged via Brussels because the EU Commission does not involve itself directly in bilateral financing arrangements. These are primarily tied to the donor country and are determined in the recipient country, which co-ordinates the co-financing with Brussels.

One particular area is co-financing with the international financial institutions, primarily the World Bank and EBRD. DESF has helped to initiate no fewer than 11 projects amounting to slightly more than DKK 3 billion. Of these, only two projects, at DKK 216 million, are included in DESF's statement of co-financing because DESF is deemed to have been the main trigger for the loans, whereas, in the case of the other projects, DESF made a substantial, but not critical, contribution.

DESF has also started up seven projects at slightly more than DKK 3.1 billion with the international financial institutions. None of the loans for these projects has been used yet, so the projects must be categorised as not yet under implementation. Even so, it must be only a question of time, since a very substantial part of the preliminary work has already been done in most cases. Only one of these projects is included in DESF's statement of co-financing because this project has already been implemented for DKK 75 million, although as yet without using the loan. Concerning projects under the international financial institutions, readers are referred to material from the Project Preparation Committee (PPC), see below.

Co-financing also comes from other sources, such as the Global Environment Facility (GEF, which provides international grants for global action) and such Nordic sources as NEFCO. Almost ten projects have been implemented in co-operation with NEFCO. Some projects also qualify for co-financing by the IØ Fund and EKF.

Since 1993, when Denmark discussed financing for the Baltic Sea Initiative with the international financial institutions at a Meeting of Ministers in Gdansk, DESF has focused particularly on financing environmental investments. In June 1994, Denmark held an international conference on softening loans for environmental investments, and material has been prepared on financing environmental projects with the international financial institutions.

DESF has also co-operated with the recipient countries on strengthening environmental funds in Central and Eastern Europe - particularly in Russia, where a major Dano-Russian project aimed at strengthening the Russian environmental funds has been carried out. In the international debate on financing for environmental projects, it has been stressed time and again that the CEEC must procure most of the funds themselves from domestic sources.

Denmark has managed to make the financing of environmental investments a central theme in the co-operation between East and West on the environmental restructuring of Central and Eastern Europe.

3.6 Environmental effects

Information on the environmental effect of individual projects helps to provide a complete picture of the importance of DESF.

Environmental indicators are used to describe the environmental effects of the TA and IN projects carried out. Wherever possible, the environmental effects are calculated quantitatively, but some can only be described qualitatively. When approving projects, the environmental effect of the completed project is estimated on the basis of specific environmental indicators.

For data processing reasons, DEPA has selected 50 environmental indicators, distributed over the target areas: air pollution, water pollution, waste, institutional strengthening, nature protection, agricultural pollution, and nuclear issues. Project-specific environmental effects can also be described. Examples of quantitative environmental indicators are: reduction in emissions (e.g. tons nitrogen per year) and established handling capacity (e.g. tons waste per year). The environmental effects estimated at the start of a project are asses-sed at the end of it. In many cases, the environmental effect can be verified by measurements. This is typically the case for investment projects involving construction, operation and supply of equipment.

The environmental effects are stated as "actual" or "estimated" effects. "Actual" environmental effects are the actually achieved or calculated effects of the project in question. "Estimated" environmental effects are effects that have not yet been achieved with the project, but that are expected to result from it.

The environmental effects are assessed when considering projects. However, judging whether the reported environmental effects are realistic can be very difficult.

Despite systematic collection and processing of environmental-effect data, DEPA believes the stated environmental effects to be encum-bered with considerable uncertainty, depending on the target area. DEPA therefore intends to continue developing the use of environ-mental indicators and the calculation of environmental effects.

It should also be noted that the environmental effects of most of the projects implemented under the auspices of the international financial institutions do not figure in the statistics because DESF "only" supplies technical assistance for the start-up of the projects. If these projects were included, the figures would be considerably higher, but that can only be done over a longer time horizon and with a number of reservations.

The following results of investment projects to reduce air pollution and waste water contamination show how environmental effects are assessed on the basis of selected environmental indicators. The projects, which include both completed and uncompleted projects, are from the period 1994-1996.

Emissions of polluted air to the atmosphere from Central and Eastern Europe and discharge of totally or partially untreated waste water in the Baltic Sea's run-off area cause serious transboundary pollution in the Baltic Sea region. The pollution also has serious local effects.

Air pollution in Central and Eastern Europe leads to ozone depletion, and increase in the greenhouse effect and acidification, and increased eutrophication of the water sector. Local impacts are mainly harmful effects on animals and people.

Table 15 shows the reduction in emissions of carbon dioxide (CO2), nitrogen oxides (NOx), sulphur dioxide (SO2) and particles. The total support for the 31 air projects implemented in the period 1994-96 was DKK 132 million. A particularly big reduction of SO2 was achieved. The expected result corresponds to 90 per cent of the total Danish emission (1995: approx. 150,000 tons SO2). It should be noted, however, that this sulphur account includes a project that only received a grant in 1997. The administrative procedure for the project commenced in 1993. The reduction was achieved primarily by establishing desulphurisation plants at power stations in Poland and, secondarily, through air treatment in industry.

Table 15: Sum of actual and estimated environmental effects of investment projects to reduce air pollution in the period 1994-1996

In the case of NOx emissions, the reduction corresponds to 2.6% of the total Danish emission in 1995. The establishment of a flue-gas treatment system at a Russian power station is expected to result in a reduction of 4,000 tons NOx per year. The reduction of CO2 emissions corresponds to 0.7% of Danish emission in 1996. About half of the reduction in CO2 emissions is due to a project in Poland involving the use of geothermal energy.

Incidentally, one very new and exciting project on reduction of ozone-depleting substances (ODS) has not been estimated in this connection. A grant of around DKK 10 million has been made for implementing country strategies to phase out ozone-depleting substances in 8 co-operating countries. The Global Environment Facility (GEF) has provided co-financing of DKK 680 million for investments. DEPA has not yet estimated the reduction targets.

Waste water contamination causes eutrophication of the water sector. Today, the Baltic Sea receives large quantities of untreated or only partially treated waste water from the CEEC.

Investment projects regarding waste water treatment have produced substantial environmental effects, cf. table 16. The 39 waste water projects concerning establishing sewerage and waste water treatment plants received DKK 179 million in grants in the period 1994-96. The total treatment capacity corresponds to treating the waste water from about 1.8 million PE (Person Equivalents), based on an estimate of organic substances (BOD). Based on nitrogen (N) and phosphorus (P), the treatment capacity corresponds to around 2.5 and 0.8 million PE, respectively. For comparison, the total quantity of waste water in Denmark corresponds to the contamination from around 9 million PE.

Table 16: Sum of actual and estimated environmental effects of investment projects to reduce waste water contami- nation (urban waste water) in the period 1994-1996

The environmental effects achieved by constructing waste water treatment plants in Central and Eastern Europe in the period 1994-96 are substantial, as is also clearly shown by comparing these effects with the total Danish urban waste water discharges in 1996 of 5,000 tons BOD, 6,400 tons N and 900 tons P.

3.7 International co-operation

The international environmental co-operation between Central and Eastern Europe and the Western countries that wish to help has been developing since the start of the system changes in Central and Eastern Europe. The focal point of the co-operation has been regular conferences of environment ministers, at which the form of the co-operation has been planned. The first conference was held in Dobris outside Prague in 1991 at the instance of what was then Czechoslovakia. The second Pan-European Conference of Environment Ministers was held in Lucerne in Switzerland in April 1993.

In Lucerne, a decision was made to end the ordinary G 24 co-ordination of the assistance since this was deemed a fiasco. Instead, it was decided that the assistance should be co-ordinated by the recipient countries.

A task force was created under the leadership of OECD to act as the liaison body on action plans in the environment sector in Central and Eastern Europe. The main tasks of the task force were to be policy formulation and institutional strengthening of the environmental assistance. As a supplement to this body, a committee - called the Project Preparation Committee, PPC - was appointed to co-ordinate large projects involving several donors or international financial institutions. PPC acts a forum for co-financing between banks and donors. In fact, DESF has financed a Danish PPC officer at EBRD to improve liaison with the donor countries, primarily Denmark.

This liaison system has worked very satisfactory and was confirmed during the Sofia Conference in October 1995, at which those present decided that it should continue. The system was reviewed at the Århus Conference in June 1998. It is now focused more on the Russian-speaking countries, whose environmental problems have been receiving far too little attention.

Parallel with this action, DEPA has been active in the Nordic co-operation in NEFCO and the informal Nordic co-ordination group for environmental work in Central and Eastern Europe. In addition, regular co-ordination meetings have been held under the auspices of the European Union, chaired by the EU Commission.

Thanks to this close environmental co-operation, far more has been achieved, environmentally, in the CEEC than could otherwise have been expected. The Western assistance is closely co-ordinated, but on the CEEC's terms and conditions. The co-ordination must be regarded as sufficient for carrying out the necessary tasks. There has, however, been some over-co-ordination, with individual donors with a relatively low level of assistance attempting to control the assistance provided by others.

3.8 Administrative organisation of environmental assistance

3.8.1 Legislative basis and the original organisation of the assistance

The original Act on Subsidies for Environmental Activities in Eastern Europe (No. 223 of 10 April 1991) is a broadly formulated framework act; the Act and its explanatory notes set out the general framework for subsidies, purposes and recipient countries, and the composition of the Advisory Committee. The Act thus establishes the basis for the administration and leaves the detailed formulation and prioritisation of technical and geographical target areas to DEPA and the Advisory Committee. An amplifying executive order (No. 225 of 10 April 1991) prescribes rules for preparation of applications, granting of funds, requirements for project implementation and other conditions for individual projects. A guide to applying for grants was also prepared. A new guide was issued in the form of "DEPA's Guidelines No. 14 of 1995". The guide informs applicants about the conditions and procedure for obtaining a grant and includes, as an annex, a model for project proposals.

The Advisory Committee is composed of representatives from business organisations, professional organisations and environmental and nature organisations, together with the Ministry of Foreign Affairs and the Ministry of Environment and Energy. In the explana-tory notes, the Committee's tasks are described as assisting DEPA with the formulation of the purpose of the grant scheme, guidelines for its administration, prioritisation of recipient countries and target areas, and participation in assessing the completed projects.

A small unit, the Eastern Europe Secretariat - now DANCEE (Danish Cooperation for Environment in Eastern Europe) - was established under DEPA. From the start, this unit was manned with a head of division and a staff of four graduates. In the period 1991 - 1994, grants were given only to incoming applications based on information about the scheme.

From the very start in 1991, DEPA's administration of the funds for environmental assistance to Central and Eastern Europe has been subjected to review by the Office of the Auditor General and the Agency for Financial Management and Administrative Affairs (AFMAA), which comes under the Danish Ministry of Finance. These reviews are reported briefly below.

3.8.2 The Office of the Auditor General's review of the administration in the first five years

In January 1995, the Office of the Auditor General presented a report to the Public Accounts Committee on the assistance to Central and Eastern Europe, including environmental assistance, in the period 1990-93. In the report, DESF was criticised for allocating too few resources for administration. In the view of the Office of the Auditor General, this resulted in an "informal procedure", characterised by a lack of project documentation.

The scheme was also criticised for:

	inadequate co-ordination with the co-operating countries' central co-ordinating units and the embassies
	inadequate inspection/supervision of projects
	summary examination and auditing of project accounts
	limited effect of the scheme.

The Office of the Auditor General accepted, however, that it was too early to say anything definite about the last point - the effect of the scheme - because most of the projects were long-term projects and their effect was thus difficult to measure at the end of 1993, also seen in the light of the obvious need for preliminary work ahead of the actual projects. The Office of the Auditor General considered, however, that the effect was hampered by the fact that the projects were largely started on the initiative of the applicants for grants. On the first three points, DEPA declared itself in agreement with the criticism and advised that it would take steps to improve matters. As far as the accounts and auditing are concerned, the Ministry of Finance is looking into the possibility of preparing an auditing instruction for the assistance scheme for Central and Eastern Europe.

3.8.3 The Office of the Auditor General's review of the administration of the Environment and Disaster Relief Facility

In March 1997, the Office of the Auditor General delivered a memorandum to the Public Accounts Committee on the administration of the Environment and Disaster Relief Facility, including the environmental assistance to Central and Eastern Europe. The memorandum was the result of a communication from the Office of the Auditor General to DEPA with questions concerning DEPA's administration of the funds for environmental activities in Central and Eastern Europe. The memorandum refers back to the above-mentioned report.

In the memorandum, the Office of the Auditor General refers to a number of steps taken to improve the administration:

	the scheme is now much better resourced, being administered by an office with a staff of 19-20 at the time of the report
	country programmes have been drawn up for the various countries, describing the areas for environmental action
	a uniform system for preparing applications has been introduced, cf. the above-mentioned Guidelines No. 14 from 1995, together with a scoring system for assessing applications
	procedures have been described, with guidelines on budgets, grant limits, etc.
	from 1996, the application model has been supplemented by a tender model for projects based on the above-mentioned country programmes, and tender-based projects are expected to account for an increasing part of the project portfolio.

3.8.4 Changes based on the programme's progress to date

As mentioned, the administration of environmental support funds is now much better resourced, although the available funds have admittedly also increased - from DKK 100 million per year in the first few years to DKK 295 million in 1996 and to DKK 420 million in 1997. Even so, the introduction of a wide range of standardised procedures means that there is a real increase in resources.

Parallel with the increase in resources at DEPA, institutional support has been provided since 1995 for attaching local project co-ordinators (LPC) to the environment ministries in six of the recipient countries, and there are plans to use this model in more countries. With their local knowledge, including language skills, these project co-ordinators are both helping to improve the competence of the recipient countries' environmental authorities and keeping DEPA up to date on the general development in the environment sector in the respective countries and, specifically, the progress of current projects. As they live in the recipient countries, the project co-ordinators will also be able to help increase the frequency of supervision and inspection.

Another factor that has improved the resource situation is steadily growing involvement of experts in DEPA's specialised divisions when planning and implementing activities.

As this report shows, the quality of the documentation has improved and the handling of applications has been harmonised. Recommendations used to be discussed at meetings in which all the case officers participated. As the division has grown larger, this procedure has become unwieldy and has been replaced by a system with quality assurance of the individual recommendations before approval by the head of division and DEPA management.

The co-operation with the recipient countries has been systematised through the preparation of country programmes as a basis for discussing assistance. The relationship with relevant authorities is handled by the country co-ordinator in each co-operating country. Guidelines for this co-operation will be further systematised in the guidelines for the division's work currently being prepared, cf. below.

Since 1996, the application model has been supplemented by a tender model. Now that the scheme is well into its stride, the co-operation with the recipient countries is growing, and far more is known about the environmental situation in each of the countries, there is a far greater possibility of more active prioritisation of environmental projects. As an element of the general country programming, tender projects are expected to make up a larger part of the total project portfolio. This opens the way for prioritised, coherent activities, sectorally and geographically. Identifying projects together with the recipient countries also, in most cases, increases the countries' commitment to the work. Furthermore, country programming enables better planning and thus better utilisation of resources.

DEPA has better possibilities of controlling tender-based projects. However, the application model will continue to be used since not all projects are suitable for tendering and Danish businesses are identifying a number of exciting projects.

The same rules apply to tender-based projects as to projects carried out under the auspices of Danida and Danced. Whereas a scoring system is used to assess application-based projects, the criteria for assessing tender-based projects depend on the individual project.

It should also be noted that tender-based projects are more suitable for co-operation with other sources of finance, primarily the international banks. This means that a larger part of the Danish environmental support funds can act as a catalyst for large, loan-financed investment projects, which considerably enhances the environmental effect of the assistance.

As mentioned earlier, AFMAA, working on the basis of the Ministry of Finance's report on the administration of grants from May 1996, has made a number of recommendations about DESF's administration in a pilot project carried out in co-operation with DEPA. One of the main recommendations is to supplement the concept for the recommendation memorandum with written case-handling rules. This would formalise case procedures and provide further assurance of uniformity when handling projects. The case-handling rules would also be a good tool for new employees and thus a good supplement to a monitoring scheme that has been established at the office, in which a new employee shadows a more experienced member of staff for a certain period of time.

AFMAA also recommends drawing up accounting rules for use in all support schemes for Central and Eastern Europe, cf. above, the Ministry of Finance has begun preparing such rules. Such accounting rules are to replace/supplement the internal accounting instruction for DESF.

With respect to auditing, AFMAA refers to the fact that DEPA is planning to expand the auditing rules and, therefore, lists a number of relevant minimum requirements for auditing that should be included.

As far as supervision and inspection are concerned, DEPA wants to see all investment projects inspected at least once. When setting the inspection frequency, it will be relevant to assess the project's economic and technological importance, the risks involved in applying the funds, etc. For this reason, AFMAA recommends drawing up a plan for supervision together with standard conditions for the content and reporting of inspection visits.

3.8.5 Preparation of division guidelines

With a view to collecting material on the measures already taken to improve the administration of the scheme and material relating to the implementation of AFMAA's recommendations etc., DEPA is now preparing internal guidelines. Each case officer will have a hard copy of the rules in a ring binder and there will also be an electronic version. The internal guidelines are expected to help considerably towards systematising the work in an office with growing resources and a rapidly rising number of projects.

3.9 Concluding comments

3.9.1 Summary

Poland received 20 per cent, Lithuania 17 per cent, and Russia - primarily the Russian regions closest to Denmark - received just under 15 per cent.

The assistance is considered in accordance with the political intentions, since more than 75 per cent has gone on projects in the Baltic Sea region.

As an indicator of goal achievement, one can use the degree of investment in the activities, calculated on the basis of the size of the grants, which total DKK 505 million, or almost 70 per cent of the support. Some of the technical assistance went on preparing this investment activity.

The activities relating to the water sector, 90 per cent of which concern the region with run-off to the Baltic Sea, account for just over half of the assistance. The activities to combat air pollution account for around 22 per cent.

It must be said that the activities carried out match the priorities indicated very well.

The completed projects and projects in progress are producing some good environmental effects, although there are a few projects that are not managing to achieve the promised results. That can only be determined by a subsequent assessment of the actual environmental effects. One can to some extent add the results from the projects which the World Bank and EBRD are carrying out, and in which DESF has participated. This has only been done, however, in the case of three loan projects.

The assistance has been planned with a view to achieving a substantial effect on the CEEC's fulfilment of international environmental conventions and other international co-operation, such as EU pre-accession. Here, we can mention the activities relating to the Baltic Sea, action to protect the ozone layer, reduction of acidification, reduction of climatic effects, etc.

Co-financing is a good indicator of a serious attitude of the CEEC to environmental issues, in that DKK 735 million provided in grants has triggered additional funding amounting to DKK 3.75 billion, most of which has gone on environmental investments.

In addition, DESF is helping to finance 18 projects with loans of around DKK 6 billion from international financial institutions. There is a slight overlap with the above-mentioned DKK 3.75 billion, as three projects totalling DKK 800 million are included in the above-mentioned figures because DESF played a critical role of catalyst for the projects.

DESF has been reviewed by the Office of the Auditor General twice, once together with other assistance schemes for Central and Eastern Europe in 1994 and again in March 1997. DEPA has tried to solve the problems identified by the Office of the Auditor General.

3.9.2 Assessment of the assistance so far

A number of questions are asked concerning assessment of the degree to which the programme achieves its goals, i.e. by DESF. In the following, an attempt is made to take stock of this. In other words, the degree of goal achievement has been assessed internally and not externally.

The assistance provided must be deemed to fulfil the Danish Government's policy, goals and strategies as formulated in general terms and more specifically in the Act on Subsidies for Environmental Activities in Eastern European Countries and the strategy for environmental assistance to Central and Eastern Europe under the Environment and Disaster Relief Facility. The extent to which it has done so will emerge later on from the external review.

The activities give every indication of fulfilling the recipient countries' wishes in the form of the environmental needs and priorities discussed at regular intervals between Denmark and the countries in question. The details will only emerge at the end of the external review.

Quantitative data from the 259 projects are provided as a measure of goal achievement. These data draw a picture of reasonable success, but only the external review can give a more differentiated picture at a detailed level. There are some projects - perhaps up to 20 - for which support was promised, but which never got off the ground because one or more of the conditions for them - typically co-financing - was not fulfilled. No funds have been used on these projects, and the funds set aside for them have been returned to the pool. It is more difficult to assess the success rate of individual projects, and this internal assessment does not do that. There are some projects that do not achieve a satisfactory success rate. That may be due to players in the recipient country, the Danish project holders' lack of competence or other factors in the projects. Generally, however, DEPA believes that only a small number of projects do not achieve an expected, reasonable success rate.

The activities should have a good chance of producing the expected long-term effects since the investment projects supported are ex-tremely concrete. There is therefore a high degree of expectation that at least the investment projects will be continued when the Danish assistance comes to an end. As far as DEPA knows, investments have not been made in "white elephants". The Danish support is too small for that and is only helping the countries to help themselves.

The question of whether the investments and operating costs resulting from the Danish assistance are warranted should probably be answered in the affirmative. The Danish environmental assistance may focus on better and thus more costly solutions than a recipient country would itself choose with full self-financing. However, nine of the co-operating countries are seeking admission to the European Union and must therefore in future fulfil the EU environmental directives. This in itself warrants investments that are better and thus often more costly, but that also fulfil the directives. In a few projects, however, the same results might have been achieved for less money. The external review will give a better picture of this.

It is too early to say anything definite about whether the program-ming has been as good as it could be. However, it must be borne in mind that the goal is environmental action in Central and Eastern Europe, primarily in relation to international agreements, but involving Danish resources - for which reason, Danish solutions are often preferred.

In many cases, the Danish technology and know-how transferred are expected to be used after the conclusion of the individual projects as well. A final assessment of this will be carried out during the external review.

Little can be said about the knock-on effect at the present time. Investment projects often take such a long time that it will be years before their knock-on effect can be properly assessed.

A number of quantitative environment effects and co-financing figures have been mentioned as indicators of goal achievement and these show that the programme has to some extent achieved its goals. The external review will provide more detailed information on the actual extent.

3.9.3 Experience gained

Experience gained from a wide range of projects shows what typically goes wrong and the best way of solving such problems.

The environment ministries in Central and Eastern Europe are generally very weak with respect to both personnel and other resources. They still have many employees from the time before the system changed - especially in those countries that have implemented fewest reforms, such as Romania, Bulgaria and Ukraine. Young, able employees with language skills leave the ministries for higher pay elsewhere.

The strength of the co-operation and the assessment of projects depend greatly on continuity in the recipient country. When personnel leave and are replaced, a lot of knowledge is lost because most of the material disappears. That is also the case when ministries are split up. It is certainly the case when countries split up, as in the division of Czechoslovakia into the Czech Republic and Slovakia, when almost all material disappeared when the federal environment ministry was closed down.

Generally speaking, very big differences exist in our experience of working in the different countries. In Central European countries such as Poland, the Czech Republic and Hungary, things run quite smoothly because these countries are reasonably well organised. However, in the Baltic countries, the first few years were very difficult because of their organisational structure as Soviet republics oriented towards Moscow and had little central administration. There, it took a long time to get investments going. That also applies to some extent to Belarus and Ukraine.

Co-financing is usually easier to achieve in countries that are enjoying economic growth and that have the strength to combine different forms of finance. The economically better situated countries often choose not to raise many international bank loans, while economically weaker countries can only carry out large projects by involving international financial institutions. That is why, for projects in the weaker countries, DESF has chosen greater co-operation with international financial institutions.

A lot of the same problems occur in many projects. Customs problems in connection with equipment are one very serious barrier - particularly in Russia and Ukraine. The recipients of the projects, including people paid by the recipients, often have difficulty in supplying the agreed services because they cannot keep the financial agreements they have entered into.

Language problems make working in Russian-speaking areas difficult because foreign language skills are very rare there. Interpretation causes major problems because the interpreters are rarely conversant with technical terminology.

The best projects must be said to be projects in which Danes are co-operating with very qualified people in the recipient country - either experts or local contractors. Danish firms generally achieve better results when they hire local people or when they have established a permanent base in the country. Only a few Danish firms are able to work in the Russian-speaking areas. Those that can are the big consulting firms and a small number of industrial companies. Over time, the Danish resource base has improved considerably. When a Danish form has had a success, the success can be copied relatively easily. However, some Danish firms have given up due to lack of strength.

4. Danish environmental assistance following the floods in Poland and the Czech Republic

4.1 Consequences of the floods

Poland has suffered many floods over the years, especially along the River Odra and the Vistula. The floods that hit Poland in July 1997 were particularly serious along the River Odra, where the water stood at a depth of more than 4 metres in the streets. More than 140,000 people had to be evacuated when 86 towns and 845 villages were flooded. The estimated cost of the flood damage is around DKK 20 billion.

The floods also hit the Czech Republic, along the Elbe, the Odra and the Morava, where about 50 people lost their lives. The Czech authorities stated that more than 50% of the country was affected by the flooding. The cost of the damage to housing, bridges, etc. is estimated to be DKK 10 - 20 billion.

4.2 Danish environmental assistance

On 25 July 1997, DEPA made a grant of DKK 570,000 for hire, transportation and operation of a mobile waterworks for the Polish town of Wroclaw following a request for help from the local water supply company. The plant was initially intended to supply clean drinking water to hospitals in the town, but a decision was later made to supply 10,000 households in an area of the town which had no water supply at all.

On 29 October 1997, the Finance Committee of the Danish Parliament (the Folketing) adopted a document on environmental assistance to regions affected by floods in Poland (DKK 25 million) and the Czech Republic (DKK 5 million).

In accordance with the wishes of the countries themselves, the following assistance was provided:

1. Support for a project in both Poland and the Czech Republic to help establish a modern flood warning system and a basis for viable flood control. The project is described below.

2. Besides this assistance, work is in progress on rehabilitation of infrastructure, primarily within the water sector. The whole of this work is concentrated in the Opole region of Poland (by the River Odra) and is being carried out by COWI, Krüger and Rambøll. The projects are described below.

At the request of the Polish Ministry of Environmental Protection, Natural Resources and Forestry, DEPA decided to make a grant for transferring Danish technology and know-how concerning flood warning and control of floods to Poland. The cost of transferring software programs, training and know-how amounts to DKK 6.4 million. The project will take 2½ years.

DEPA decided at the same time to make a grant of DKK 4.3 million in support of a similar project in the Czech Republic.

This assistance will achieve two objectives: to transfer up-to-date technology and know-how about flooding and flood control to the two countries’ authorities and, since the River Odra runs through both countries, to ensure co-ordination of the activities to prevent flooding.

A contract has been entered into with the Danish Hydraulic Institute (DHI) for the supply of technology and know-how about flooding in the form of software programs, consulting services and training. The consulting firm Geomor is participating as DHI’s local consultant in the Polish project. Correspondingly, the consulting firm Hydroinform is participating in the Czech project.

The software program developed by DHI is an advanced mathematical model called MIKE 11, which can be used to simulate water quantities and water levels in a river system.

The computer model can calculate flood warnings on the basis of meteorological reports of precipitation and information on the actual conditions in river beds.

The computer model also enables the establishment of a long-term strategy for flood control because it can be used to calculate the areas that must be zoned in advance for controlled flooding. In the longer term, flooding can thereby be avoided or reduced in other areas, where it would do far more damage.

The project will focus on strengthening the Polish and Czech authorities’ technology and knowledge of flooding through use of MIKE 11. Training programmes, workshops and on-the-job training are part of the project. The software package - which contains an operational warning system for the middle and upper reaches of the Odra river system, the upper reaches of Vistula river system, and the Morava river system - will be installed at the local authorities’ institutions.

The project comprises the following main activities:

	Strengthening the possibilities of modelling floods through training courses in modelling of river systems at DHI, workshops and on-the-job training at the local institutions.
	Implementation of a new flood warning and control system for the upper reaches of the Vistula (Poland).
	Development of a flood warning and control system for the upper and middle reaches of the River Odra and the Morava River (Poland and the Czech Republic).

The floods in Poland damaged water supply installations and waste water treatment plants in many urban areas. DEPA decided to help the Polish authorities rebuild these facilities and thus protect the environment and public health.

DEPA has had three missions in the flooded areas in the Opole region, where a number of rehabilitation projects were identified, comprising water and waste water treatment plants, boiler systems and a recipient monitoring system, which had been damaged during the floods. DEPA made a grant of DKK 0.6 million for these missions, which were co-ordinated with the Ministry of Environmental Protection, Natural Resources and Forestry and the local environmental authorities in the Opole region.

On the basis of the projects identified, a contract has been entered into with Krüger International Consult A/S for assistance on the following projects (total grant DKK 3.61 million):

	Recipient monitoring system in Glucholazy. The project comprises re-establishing the recipient monitoring system upstream of the raw water intake on the River Biala Glucholaska and installing new monitoring equipment.
	A waste water treatment plant in Metalchem, Opole. The project comprises establishing a pump station at the old treatment plant at Metalchem, installing pumps and control equipment, repairing buildings and underground parts of the pump stations, and establishing new sewers.
	A waste water treatment plant in Brzeg. The project comprises reconstructing a waster water pipeline over the River Odra in connection with the treatment plant and installing a sludge/lime mixer at the treatment plant.

In addition, a contract has been entered into with COWI for assistance on the following projects (total grant DKK 6,58 million):

	Water supply in Glucholazy. Re-establishing the water supply system in Glucholazy (the Jarnoltowek area).
	Heat supply at schools. Replacing boilers at seven schools in the towns of Glucholazy, Popielow and Lewin Breski.
	Water supply in Kedzierzyn-Kozle. Re-establishing waterworks and artesian wells in Kedzierzyn-Kozle.

A contract has also been entered into with Rambøll for assistance on the following project (total grant DKK 6,91 million):

A waste water treatment plant in Kedzierzyn-Kozle. Rehabilitation/enlargement of a large waste water treatment plant that was completely flooded. The assistance is primarily in the form of equipment for biological waste water treatment.

Most of the money will go on equipment, and the contracts entered into include this component.

5. Danish Environmental Support Fund for Eastern Europe - basis and principles for prioritisation

5.1 Basis and principles for prioritising projects receiving support from the DESF

Introduction
This memorandum from December 1997, revised in April 1998, has been discussed by the Advisory Committee to the Danish Environmental Support Fund and sets out clearly and concisely the basis and principles for prioritising projects receiving support from DESF.

5.1.1 Strategic basis and financial framework for the support

Act No. 223 on Subsidies for Environmental Activities in Eastern European Countries and Executive Order on the same Act constituted the basis for DESF from April 1991 to the end of 1995.

In October 1993, "Strategy for Environmental Activities in Eastern Europe" was adopted by the Government and the Folketing as a means of implementing the environmental objectives of the Environment and Disaster Relief Facility (EDRF) for Central and Eastern Europe. The environmental funds for Central and Eastern Europe then gained a supplementary basis in the decision on EDRF, and the strategy was to make it operational. The environment-related sectoral programmes became a reality in 1994 and have functioned in the period 1994-97. In addition, the IØ Fund's Green Investment Facility became part of DESF.

With the repeal of Act No. 223 at the end of 1995, authority was established by means of a note to the Appropriation Act continuing the basis for the assistance as under the earlier Act.

According to the above-mentioned basis, the activities shall be implemented to:

	contribute to the greatest possible protection of the environment and nature in Central and Eastern Europe and reduce both regional and global pollution, including transboundary pollution in the direction of Denmark
	help ensure an environmentally acceptable political and economic development and support democracy and the transition to market economy, although with the greatest possible consideration for the environment
	promote the transfer of environmental knowledge and technology from Denmark to the CEEC, in the interests of both the recipient countries and Denmark.

In May 1997, the Danish Government’s decision on the Baltic Sea Initiative and, in turn, increased support for an environmentally viable development in the Baltic region, received the backing of the Folketing. The decision was based on a report from a working group in May 1997 on the future of the assistance to Central and Eastern Europe and - particularly, assistance to the Baltic Sea region. In the environment sector, the Baltic Sea Initiative constitutes the Baltic-related part of EDRF’s environmental assistance programmes for Central and Eastern Europe.

The Baltic Sea Initiative strengthens the focus on the Baltic Region. As an innovation, action in the sectors is being targeted as sector integrated environmental assistance to promote an environmentally viable development in important sectors of society. Lastly, a soft loan scheme, the Environmental Soft Loan Programme for Eastern Europe (MKØ), was established under the Danish Agency for Development of Industry and Trade to provide soft "untied" loans for environ-mental investments, typically with a 25 per cent grant component.

On the Appropriation Act for 1998, a sum of DKK 411 million has been earmarked for DESF, while a sum of DKK 141 million has been allocated to sector-integrated environmental activities, DKK 70 million to the Green Investment Facility under the Investment Fund for Central and Eastern Europe (the IØ Fund), and a grant component of DKK 45 million for environmental loans from EKF.

All the activities are being co-ordinated by DEPA. There is a close relationship between DESF’s activities within the sectors under the sector-integrated environmental assistance facility, such as nuclear safety and the energy, industrial and agricultural sectors. A good supplementary form of financing has been established with the Green Investment Facility and will also be sought in the implementation of MKØ. The Danish environmental support can thus be said to be a set of mutually supplementary forms of financing.

The activities under DESF are concentrated on the Baltic States and the parts of Russia near the Baltic Sea, primarily because of the environmental situation in the Baltic Sea and other nearby areas. They are a continuation of the prioritisation so far and are the means by which the Government’s Baltic Sea Initiative is being implemented.

Environmental activities are also in progress in Central Europe, Romania, Bulgaria, Ukraine and Belarus. In the case of Belarus, the action is subject to the Council of Europe’s conclusions and declaration of 15 September 1997 on reservation concerning assistance for this country. That means that new projects will not be carried out unless their purpose is either to reduce transboundary pollution from Belarus or to support democratisation, or the projects concern humanitarian aid.

There are 12 co-operating countries, in each of which the scope of the activities is closely related to the country’s location, either in the Baltic region or outside it. A few regional projects or schemes are being carried out, e.g. introducing unleaded petrol, and a few projects are going on in countries outside the circle of co-operating countries in preparation for large environmental loans from one or more of the international financial institutions.

Within the individual countries, efforts are made to concentrate the activities geographically in order to achieve greater impact and visibility.

The priorities of the environmental authorities in the recipient countries determine which projects are supported. Denmark and the recipient countries hold regular discussions on priorities. The result of these discussions are recorded in the country programmes and sometimes in minutes of resolution in implementation of the country programmes.

It should be noted that there are sometimes differences in the projects prioritised by the recipient country and by Denmark. For example, global and transboundary pollution is rarely given the same high priority by the recipient countries as by Denmark.

The following target areas have been prioritised (in no order of priority):

	Air pollution
	Water pollution
	Waste
	The green sector (biodiversity and sustainable forestry)
	Institutional strengthening

Within the target areas, priority is given to activities that will help the recipient countries to fulfil international environmental conventions or other international environmental objectives.

The action was initially intended to be country specific, but action across the boarder has been developed in some sectors or certain problems areas - for example, water problems in the Baltic Sea region, oil pollution contingency, protection of the ozone layer, transboundary air pollution, climate action, the green sector, etc.

One of the main activities is a substantial EU pre-accession initiative involving 6 countries: the three Baltic States, Poland, the Czech Republic and Bulgaria. This initiative is targeted on implementing investment-intensive environmental directives, but will also include support for short-term consulting services. For the nine co-operating countries that have applied for EU membership, a constantly growing portfolio of projects will concern approximation to European Union law and institutional strengthening. High priority is given to training in EU directives and transposition of EU directives into national legislation. That also applies to fulfilling EU directives’ environmental standards in the specific investment projects.

In future, EU approximation will be the basis for both legislation and investment activities in the nine co-operating countries. The link between the EU Commission’s activities and support programmes will also become steadily stronger, partly to achieve a greater synergetic effect now that the aim is clear: full implementation of the EU level of regulation, and partly so that the countries can receive as much of the EU’s investment support as possible.

When evaluating specific initiatives, importance will be attached to how much the environmental impact in question can be reduced - in both magnitude and hazard - and to the degree of protection of nature. Measurable data in the form of reduced pollution or more qualitative data in the form of improvement of the natural environment are important factors for evaluating actual activities.

In terms of pollution, prevention and cleaner technology, combined with recycling, are still in principle given high priority. However, it has been recognised that though such projects are easy to start, they are more difficult to bring to a successful conclusion because the industrial companies in the countries in question are in the midst of a financial transition. Major environmental infrastructure projects such as air and water treatment are far easier to promote. This focus must be maintained because of the great needs of the recipient countries in these sectors.

Reducing present and future pollution is given higher priority than remedying "the sins of the past" e.g. soil remediation.

In the green sector, action is being taken to protect nature. Protecting biodiversity, sustainable forestry, developing ecotourism and environmental training are all target areas.

Activities that promote public participation will receive higher priority. With a future adoption of the Convention on public access to information, participation and judicial review in the environment sector, the basis will be established for a more active approach, and public participation must be encouraged. This will also help to strengthen democracy in the recipient countries.

The activities will also be integrated with the ongoing process of economic restructuring in order to achieve maximum effect. Projects that lead to a final conclusion and can thus demonstrate visible results will be given higher priority than projects of an introductory or preparatory nature.

Maximum effect from the Danish funds is desired. Co-financing therefore has high priority. It places high priority on the environment and protection of nature in the recipient country, in terms of the direct recipients of environmental assistance or the national environmental funds in the recipient countries. Co-financing with other Danish and international sources of finance, including international financial institutions, is similarly highly valued, especially in recipient countries that have difficulty in procuring co-financing. The EU PHARE and TACIS programmes are therefore particularly important because the funds they supply - particularly the PHARE programme - are expected to be increased considerably as a consequence of the recipient countries’ pre-accession process and the EU’s wish to strengthen its preparation.

The possibilities of obtaining co-financing vary greatly, depending on the macroeconomic strength of the various countries. The Baltic States, Poland and the Czech Republic have proved relatively good at co-financing major projects, whereas Russia and Ukraine have difficulty in finding money for co-financing.

5.1.2 Assessing the need for adjustment to the assistance

For the assistance planned for 1998, no changes in the priority of countries is deemed necessary. The focus of the Government’s Baltic Sea Initiative is the Baltic region, and action must also be taken in the other countries.

It is still too early to discuss discontinuing assistance to some countries. The EU pre-accession process in the countries applying for membership will change the nature of the assistance, and future membership of the EU may well lead to discontinuation of bilateral assistance.

The countries with the biggest economic growth should naturally themselves bear as much of the cost of the environmental activities as possible through co-financing. Too little is achieved environmentally when the activities rely on funds from DESF only.

Co-operation with the individual countries to select promising projects that are worth supporting must be intensified. There are several reasons for this, including the need to formulate project proposals that can also be used by the recipient countries as qualified projects for financing from other sources, e.g. the EU.

Having local project co-ordinators working to improve the co-operating countries’ institutional framework strengthens the action in those countries. At the end of 1997, there were local project co-ordinators in six recipient countries. This is a cost-efficient and promising way of strengthening the co-operation.

Work in the countries applying for EU membership must be expanded through consultation on prioritised activities in connection with the pre-accession process. The national co-ordinating units and other ministries must be involved. The Danish embassies are useful in this area. In the newly independent states (NIS), the process is not as developed, and efforts to increase investments in the environment sector must continue as before.

In the last few years, action in the green sector has gained greater weight on the basis of the strategy for biodiversity and sustainable forestry.

The same applies to the EU pre-accession activities, which are now being implemented on the basis of the strategy presented in 1996. This means greater weighting of the work on institutional strengthening.

Generally speaking, the focus on investment is maintained on the basis of a good balance between preliminary studies and investments.

The promising co-operation that has developed with other sources of finance, including co-operation with other donors, is continuing and should be strengthened. The view remains that good use is being made of the possibilities of co-financing, and efforts in that direction should be intensified. In particular, the work with national environmental funds, which now seem to be developing faster and more strongly in other countries than before (Poland and the Czech Republic), can be expanded.

The ratio between the application model and the tender model in the allocation of funds is approaching 1:1. The application model is producing a number of promising projects identified by Danish companies themselves, while tender projects can be targeted far better than applications. An application can be processed far more quickly than a tender, but experience shows that far more control is required during the project.

The ratio 1:1 between application and tender will be used as a measure in future.

Readers are referred to "Suggested Projects for environmental activities in Central and Eastern European Countries" and the country programmes etc. in "Co-operation Development 1992-1996 and Programme Target Areas".

An ad hoc committee has been set up to discuss plans for the sector-integrated environmental assistance. The executive players in the central administration are participating in this work. This makes assistance from sector to sector more uniform and generally more coherent, thereby giving it greater strength.

DEPA has entered into a co-operation agreement with the IØ Fund on an evaluation of the environmental aspects of the projects under the IØ Fund’s Green Investment Facility.

DEPA has entered into a similar agreement with the Agency for Development of Industry and Trade on the soft-loan programme created in connection with the Appropriation Act for 1998.

The Nordic countries’ bilateral environmental activities are co-ordinated by an informal Nordic task force set up for this purpose. DEPA, together with the other Nordic countries, also has a seat on NEFCO’s board. This work will continue as before, although efforts will be made to strengthen the actual project work with NEFCO.

The OECD’s Task Force for implementing discussions and initiatives in the institutional sector will continue after the Århus Conference and will in future be intensified in the Russian-speaking regions.

The Project Preparation Committee (PPC) is continuing its work after the Århus Conference, with increased focus on the newly independent states.

Co-operation with the PHARE and TACIS programmes should be strengthened with the assistance of the Ministry of Foreign Affairs. The PHARE programme is being restructured as a consequence of the coming expansion, but TACIS should have a stronger environmental profile.

6. Environmental Projects in Eastern Europe in 1997<>

6.1 Size of the appropriation

The 1997 appropriation amounted to DKK 390 million. Reserved funds of DKK 53.7 million were transferred from 1996 for 6 tender projects. The preliminary work on these projects took place in 1996 and final contracts for them were signed in 1997. For this reason, a sum of DKK 443.7 million was available in 1997. Furthermore, funds returned to the pool on completion of earlier projects have been added.

A sum of DKK 412.3 million was drawn during the year, while contracts for 5 tender projects could not be finalised in 1997 because of the time required for the tender procedure. This meant transferring DKK 34.1 million to the 1998 financial year.

The annual report for 1997 therefore contains descriptions of projects to a value of DKK 412.3 million, while a description of the tender projects must await the 1998 report.

Table 18 shows the distribution of DESF grants between the recipient countries in 1997 in million DKK, with a breakdown between grants for technical assistance and grants for investment activities. As in 1996, Poland was the main recipient in 1997, closely followed by Russia, which also received substantial assistance. It should also be noted that Bulgaria and Romania are far better represented than in earlier years. No grants were made to Hungary in 1997; a large grant was made to reduce the pollution from a power station, but the project never got going due to lack of Hungarian co-financing. The money has been returned to the pool.

Table 18: DESF grants in 1997 in million DKK with a breakdown into recipient country, grants for technical assistance and grants for investment activities.

Table 19 shows DESF grants in 1997 in million DKK, with a breakdown into recipient countries and target areas.

Table 19: DESF grants in 1997 in million DKK with a breakdown into recipient countries and target areas.

Target area	Air	Water	Waste	Nature	Institu- tions	Other	Total
Country:
Bulgaria	0.6	9.6	16.2		0.2		26.6
Estonia	0.2	10.8	0.3	2.9	6.1		20.3
Belarus	1.9		7.3	1.9	0.8		11.9
Latvia	0.9	7.7	1.6	10.4	0.4	0.4	21.4
Lithuania	0.3	7.5	10.2	9.6	14.0		41.6
Poland	28.5	30.6	6.6	8.9	2.2	1.3	78.1
Romania	7.3	16.1	0.1	5.2	0.9		29.6
Russia	22.6	20.1	11.8	2.8	6.0	11.5	74.8
Slovakia	3.7	0.4				0.3	4.4
Czech Republic	5.7				9.0		14.7
Ukraine	1.5	24.7	0.9				27.1
Other	15.5	0.6		2.5	5.5	37.7	61.8
Total	88.7	128.1	55.0	44.2	45.1	51.2	412.3

6.2 Environmental projects in Bulgaria

Name of project
Improvement of Groundwater Supply Situation and Identification of Groundwater Protection Zones for Well Fields in Pleven, Bulgaria

Project description
Serious contamination of groundwater has been found in Pleven. Geophysical investigations will be carried out in order to map the exposure and make proposals for groundwater protection zones. The project can be used as a basis for a decision on a future water supply structure.

Project description
A separate collection system is being established for special hospital waste from all hospitals and similar within the Territory of Sofia. The project includes the construction of an incinerator for special hospital waste. It also includes education and training of personnel at hospitals etc. and at the incineration plant.

Environmental effect
Up to 100% separation of hospital waste from normal refuse and environmentally safe disposal of the waste. There will also be some beneficial side effects (health & safety, hygiene, utilisation of heat produced during incineration).

Name of project
Rehabilitation of Varna Waste Water Treatment Plant in
Bulgaria

Project description
Improvement of sludge processing through introduction of a new, mechanical dewatering system at Varna Waste Water Treatment Plant.

Environmental effect
Calculated reductions per year: 624 tons COD, 230 tons BOD5.

Name of project
Processing of Non-ferrous Metals J.S.C., Sofia, Bulgaria. Improvement of Environmental Conditions

Project description
Feasibility study at a non-ferrous metal processing plant in Sofia to assess the possibility of reducing air pollution from the plant - e.g. by improving the technological lines and energy supply and by mounting filters. Thought should also be given to ways of improving the monitoring conditions.

Environmental effect
Preliminary work for reduction of air pollution at the plant.

Name of project
Establishment of a New Sanitary Landfill for Domestic Waste and Improvement of the Waste Handling in the Wratza-Mezdra Region

Project description
Supplementary investigations in the existing and coming landfill sites. Project documentation will be prepared for establishment of the new landfill and rehabilitation of the existing landfill. Project documentation will also be prepared for future handling of domestic waste in Vratza and Mezdra, together with a proposal for a public information campaign. The potential for utilisation of biogas will be assessed.

Environmental effect
Preliminary work for the first West-designed sanitary landfill in Bulgaria.

Name of project
Evaluation of tenders in connection with the project "Approximation of Environmental Legislation in Bulgaria with EU Industrial Pollution Control Requirements"

Project description
Evaluation of tenders in connection with the above project.

6.3 Environmental projects in Estonia

Name of project
Project formulation mission concerning the projects "Protection of the Biodiversity of the Soomaa National Park" and "National Inventories of Internationally Important Species and Habitats in Estonia in Relation to International Conventions and EU Directives"

Project description
The object of the mission is to prepare drafts for two projects concerning a management plan for Soomaa National Park and national inventories of internationally important species and habitats in relation to international conventions and EU directives.

Name of project
Desk Appraisal of the project documents "Protection of the Biodiversity of the Soomaa National Park" and "National Inventories of Internationally Important Species and Habitats in Estonia in Relation to International Conventions and EU Directives"

Project description
Desk appraisal of the above-mentioned two project documents.

Name of project
Evaluation of tenders in connection with the project "National Inventories of Internationally Important Species and Habitats in Relation to International Conventions and Directives"

Project description
Evaluation of tenders in connection with the above-mentioned project.

Name of project
Evaluation of tenders in connection with the project "Protection of the Biodiversity of the Soomaa National Park"

Project description
Evaluation of tenders in connection with the above-mentioned project.

Name of project
Desk Appraisal of Pre-design Study for Emergency Water Supply Project and Water Supply and Waste Water Coverage Project in Tapa and Aruküla in Estonia

Project description
The project comprises a technical and financial analysis of the preliminary studies and draft project documents prepared by Hoffmann Andersen & Partners concerning improvement of the water supply in the Estonian towns of Tapa and Aruküla. The project includes finalising the project documents and preparing a proposal for a tender model for the projects.

Environmental effect
Preparation of tender documents for environmental projects in the two towns.

Project description
The project constitutes the identification phase of a Danish-initiated water supply and waste water programme, the purpose of which is to improve the water supply and waste water conditions in small urban communities in Estonia.

A need-prioritised list of small urban communities will be drawn up, together with an action plan for each prioritised community. The report from the identification phase, including these action plans, are intended to be used by the Estonian Ministry of Environment to seek financing from donors.

Project manager
Hedeselskabet (The Danish Land and Development Service) and Hoffman Andersen & Partner

Project description
A supplementary grant has been made for preparation of two projects to improve the water supply in the Estonian towns of Tapa and Aruküla. A detailed description of the projects is given in the annual report from 1996, under the same file number.

Environmental effect
Improvement of the water supply in the above two Estonian towns.

Project description
The purpose of the project is to safeguard the town of Sillamäe's water supply from the groundwater resource. A feasibility study has shown that, with sensible management of the groundwater, the town can have a sufficient supply of water from this source until at least 2005. This would obviate the need for a costly water intake system from the River Narva.

Environmental effect
Water conservation and ensuring an adequate supply of groundwater for the town of Sillamäe's 20,000 inhabitants until at least the year 2005.

Name of project
Implementation of the Point Source Pollution Control of the Matsalu Catchment Area Project, Estonia

Project description
Rehabilitation of water supply systems and sewers and establishment of waste water treatment in 8 villages on Matsalu Bay, which is a prioritised Hot Spot in the Baltic Sea Investment Programme.

Environmental effect
Improvement of the water supply and some reduction of emissions of nitrogen and phosphorus to the bay.

Name of project
Project identification mission concerning waste in Estonia

Project description
The purpose of the mission is to identify ordinary waste projects. The mission report and project catalogue are intended to form the basis for discussions between the Estonian Ministry of Environment and DEPA on prioritisation within the waste sector with a view to procuring financing and subsequent implementation.

Name of project
Invitation for tenders for the project "Keila Sewage Treatment Plant"

Project description
Preparation of tender documents, call for tenders and assistance in evaluation of incoming tenders.

Name of project
Short-time Assistance to Estonia in the Process of Approximation with EU Waste Legislation

Project description
Assistance to the Estonian Ministry of Environment in the formulation of a strategy and work programme for approximation activities in the entire waste sector and identification of needs for assistance in the waste sector with a view to approximation to European Union law in this sector.

Name of project
Project to Assist Estonia with Approximation to European Union Law concerning Industrial Pollution Prevention and Control (IPPC) and Environmental Management of Industry

Project description
Establishment of a basis for the Estonian Ministry of Environment's implementation of EU regulation in the industrial sector - primarily the IPPC directive (96/6/EEC) - promotion of the development of a flexible, result-oriented system for integrated environmental approval of companies.

Environmental effect
No direct environmental effect, but the project is intended to ensure rapid implementation of the IPPC directive and derivative environmental improvements in the industrial sector.

Name of project
Preparation of tender documents for EU approximation project 124/009-0031

Project description
Preparation of tender documents and subsequent evaluation of incoming tenders concerning implementation of EU legislation in the industrial sector.

Name of project
A Sustainable Management Strategy for Estonian Forested Wetlands

Project recipient
Estonian Forestry Development Programme
Estonian Forest Survey Centre
Estonian Agricultural University
Estonian Fund for Nature

Project description
The main purpose of the project is to develop a strategy for sustainable management and protection of the types of forests in Estonia - swamp forests, forests on boggy ground and similar. These lands, which comprise about one third of the forested area, are very valuable with respect to flora and fauna. On the other hand, the financial viability of forestry here is often doubtful. The project will create a tool for prioritisation that can be used to ensure biodiversity and sustainable forestry in the coming intensification of forestry activities.

Environmental effect
The strategy plan will cover 25-30% of Estonia's state forest, or 275,000-385,000 hectares. The field records in the project will comprise one county.

Name of project
Project Preparation Mission to Estonia regarding Cleaner Technology

Project description
A 2-week mission to Estonia to help the Estonian Ministry of Environment prepare the framework for a cleaner technology strategy for Estonia and to prepare 1 project document and 3 detailed project concepts for relevant cleaner technology projects.

Name of project
Refurbishment of Genvind 150 kW Wind Turbine at Takuma, Estonia

Project recipient
Hiiuma Centre for the West Estonian Archipelago Biosphere Reserve and the Estonian Ministry of Environment

Project description
The purpose of the project is to complete a wind turbine in Estonia since Genvind A/S and Genvind Production had failed to erect and install the turbine. The project consists in examining the entire turbine, mounting any missing components, carrying out any minor repairs that may be needed, connecting the turbine to the grid, checking the computer control system and handing over the fully functioning turbine to the Estonian party.

Environmental effect
The electricity produced by the turbine will replace electricity produced at traditional oil-fired or coal-fired plants.

6.4 Environmental projects in Belarus

Name of project
Project formulation mission for the project "Forested Wetlands - Implementation of Recommendations for Sustainable Use and Protection of Forested Wetlands"

Project recipient
Ministry of Natural Resources and Environmental Protection of Belarus

Project description
The purpose of the mission is to prepare a draft for a project document, together with a plan for future management, protection and monitoring of forested wetlands, of which around a quarter of a million hectares have been drained, often with serious negative consequences for nature and the environment, and often with little financial benefit. The project consists in developing tools that will put Belarus' forest management in a position to prioritise the natural and financial assets and develop a network of protected/undrained forests.

Name of project
Project formulation mission for the project "Forest Health and Sustainable Management in Belarus"

Project recipient
Ministry of Natural Resources and Environmental Protection of Belarus

Project description
The purpose of the mission is to prepare a draft for a project document and a plan for future sustainable management of Belarus' forests, which, due to inadequate and one-sided forest management, are now suffering a number of health problems (drought, diseases, forest fires, etc.) that are having negative ecological and economic consequences. Efforts are being made to introduce integrated forest management principles that take account of biodiversity, hydrological cycles, recreation and long-term sustainable forestry.

Name of project
Biodiversity Conservation in Belarus: Bird Ringing Centre and Publication of Bird Book and Posters

Project recipient
Ministry of Environment of Natural Resources and Environmental Protection, Ministry of Forestry, the Institute of Zoology under National Academy of Sciences and the West-Belarussian Society for Bird Preservation in the town of Grodno.

Project description
Establishment of a national bird ringing centre, translation and publication of a Polish book on birds and printing and issue of three bird posters to all schools in Belarus. The project supports the efforts of the Bonn Convention's secretariat to disseminate information about wild birds and, in the longer term, to promote their protection in the country.

Environmental effect
Increased interest in, and knowledge of, the distribution and situation of birds in Belarus and greater environmental awareness. In the longer term, more responsible hunting practice, especially with respect to migratory birds, and fulfilment of international obligations through ratification of the Bonn Convention.

Name of project
Power Production from Radioactive Contaminated Biomass and Forest Litter in Belarus

Project recipient
The Belarussian authorities, comprising the Government Committee on Energy Savings, the Ministry for Disaster Contingency, the Ministry of Natural Resources and Environmental Protection and the Ministry of Forestry

Project manager
ELSAMPROJEKT, in collaboration with Research Centre Risø and the Danish Forest and Landscape Research Institute.

Project description
Remediation of large areas of forest in Belarus that are affected by the radioactive contamination from Chernobyl. The purpose is to collect radioactive biomass from the forest floor and tree felling with a view to controlled incineration for production of electricity and heat. An undertaking has been given for a first phase, which focuses on the environmental aspects, including depositing of ash and ensuring biodiversity and afforestation. The project is being co-financed with the Danish Energy Agency, the US State Department of Energy, an American investor and the Government of Belarus.

Environmental effect
None from the preliminary project alone, but the project managers expect the full-scale project to reduce radioactive contamination from the forests by a factor of 3.

Name of project
Survey, Management and Disposal of Accumulated Obsolete Pesticides in Belarus

Project recipient
Ministry of Natural Resources and Environmental Protection of Belarus

Project manager
Danish Technological Institute in co-operation with COWI and DANCEM

Project description
The purpose of the project is to eliminate stocks of old pesticides in Belarus. The pesticides are putting groundwater and water courses at risk. Methods for classification, incineration and safe depositing will be demonstrated, and a prioritised clean-up plan will be prepared. The Belarussian Ministry of Natural Resources and Environmental Protection has given this project top priority.

Environmental effect
Actual removal of "several" tons of old pesticides and transfer of know-how and equipment so that the Belarussians can themselves subsequently clear up almost 10,000 tons of old pesticides that have been unsatisfactorily deposited around the country.

Project recipient
Ministry of Natural Resources and Environmental Protection of Belarus

Project description
The purpose of appointing a local programme co-ordinator in Belarus is to strengthen the Belarussian Ministry of Natural Resources and Environmental Protection, particularly with respect to project identification, communication and project follow-up in the co-operation between Denmark and Belarus.

Name of project
Regulation of Pesticides in Belarus - Project Formulation Mission

Project recipient
Ministry of Natural Resources and Environmental Protection of Belarus

Project description
Mission to analyse the Belarussian authorities' capacity for implementation of a pesticide regulation and approval system of EU standard and to prepare a project document for a Danish-supported pesticide regulation project. The purpose of the project is to strengthen the Belarussian Ministry of Environment of Natural Resources and Environmental Protection's capacity for effective regulation of the use of pesticides.

6.5 Environmental projects in Latvia

Project description
The purpose of the project is to supply a turnkey waste water treatment plant for the town's approximately 10,000 inhabitants in connection with a project that also includes the establishment of a better drinking water supply. The entire project is being co-financed with NEFCO, EU-PHARE and Finland.

Name of project
Daugavpils Water and Waste Water Project, final design and implementation of renovation of 2 pump stations, etc.

Project description
As part of a World Bank project to establish a waste water treatment plant and renovate the drinking water supply system for Latvia's second largest town, Daugavpils (pop. 130,000), a grant of DKK 12 million has been made for renovation of sewers and pump stations for waste water. The waste water project is being implemented in collaboration with the Swedish firm SIDA. NEFCO, EU-PHARE and Finland are participating in the entire project. Denmark is financing 30% of the investment in sewers and the waste water treatment plant.

Environmental effect
Reductions per year: 1881 tons BI5, 55 tons phosphorus, 148 tons nitrogen, 286 tons SS.

Name of project
Appraisal of an earlier project concerning "Elimination of Sr.90 Batteries as a Source of Power in Lighthouses in Latvia and Estonia"

Project description
The purpose of the project is to evaluate the project carried out, which consisted in setting up low-energy equipment at 5 lighthouses in Estonia and Latvia that had previously received power from a number of Sr.90 generators of Soviet origin. The evaluation is intended to serve as the basis for assessment of an application for a similar project at 75 lighthouses in the St. Petersburg and Kaliningrad regions.

Name of project
Technical-administrative Training Programme, Madona Water, Madona, Latvia

Project description
The project, which is based in a twinning arrangement between Viborg Municipality in Denmark and Madona Municipality in Latvia, is intended to enable Madona Municipality to implement an internationally supported project to modernise the water supply system and waste water treatment plant for the town's approx. 10,000 inhabitants.

Environmental effect
Training project relating to the above-mentioned investment project.

Name of project
Provision of Reception Facilities for Ship-generated Waste in Riga, Latvia

Project description
A feasibility study on the establishment of reception facilities in accordance with the requirements of the MARPOL Convention, establishment of the necessary financing, and design of the facilities. The project also includes setting up and introducing a Port Waste Management Plan that will ensure environmentally acceptable handling of ship-generated waste at the port. The object of the project is to avoid unlawful oil pollution in the Baltic Sea by establishing a means of disposing of waste lawfully at the Port of Riga. The project should be seen together with similar projects planned for other Baltic Sea ports.

Name of project
Preparation of three Water and Waste Water projects in Latvia

Project recipient
Latvian Ministry for Environmental Protection and Regional Development

Project description
The project, which is based on two DESF-financed feasibility studies, comprises preparation of an appraisal report and waste water analyses to consolidate the basis for a decision on the investment, and preparation of projects documents with a view to inviting tenders in Denmark.

Project description
Ventspils in Latvia is one of Europe's largest oil terminals for shipment of crude oil piped to the port from Russia. Around 30 million tons of crude oil are exported per year. The oil is transhipped without any measures to reduce air pollution. This project is intended to provide the basis for a decision by the terminal management on the establishment of a vapour-return system. Approx. 23,000 tons of crude-oil vapours (hydrocarbons) are estimated to escape from the activities each year. It is anticipated that more than 98% of this can be recovered by establishing a vapour-return system, the pay-back time for which is less than three years.

Name of project
Inspection of Genvind 150 kW Wind Turbine in Liepaja, Latvia

Project recipient
Kursa (a fishery company) and the Latvian Ministry for Environmental Protection and Regional Development

Project description
Inspection of a wind turbine at Kursa in Liepaja and description of what needs to be done to get it into working order, including spare parts, service and man-hours.

Name of project
Refurbishing of Genvind 150 kW Wind Turbine at Liepaja, Latvia - Service and Training in Estonia and Latvia

Project description
The purpose of the project is to get a wind turbine up and working in Liepaja, Latvia, since Genvind A/S and Genvind Production had failed to erect and install the turbine. The project's output will be a serviceable wind turbine in Latvia and training of personnel at the factory. Personnel in Estonia will also receive training for a wind turbine there that was also part of an earlier Genvind project.

Environmental effect
The wind turbine will produce some of the power needed to operate the factory. The power from this source will replace energy produced by oil-fired or coal-fired power stations.

Project recipient
The Latvian Ministry for Environmental Protection and Regional Development and Liepaja Town Council

Project description
A mission to identify potential projects within cleaner technology and the environment sector in general with a view to initiating regional action in Liepaja. Three projects are to be identified within cleaner technology and three within the environment sector in general.

Name of project
Fact-finding Mission concerning Jelgava Hazardous Waste Landfill

Project recipient
The Latvian Ministry for Environmental Protection and Regional Development and the regional environmental authorities

Project description
A mission to Latvia took place in August/September to inspect the chemical waste landfill in Jelgava to gain an impression of the extent of the contamination and to prepare a preliminary project for remediation. The preliminary project will later form the basis for an invitation for tenders. The chemical waste landfill was visited by the Advisory Committee in May, and it later decided that Denmark should initiate a remediation project to avert the risk of contamination of groundwater and surface water.

Project description
The four organisations representing the owners of private forests in Denmark, Finland, Norway and Sweden wish to assist their nearby Baltic neighbours by holding a joint 3-day conference on private/family forestry. The conference is intended to help promote economically and biologically sustainable family forestry in the countries concerned.
The grant constitutes only part of the total budget.

Name of project
Project formulation mission for the project "Inventories of Species and Habitats, Development of Management Plans and Capacity Building in Relation to Approximation of EU Birds and Habitat Directives"

Project recipient
Latvian Ministry for Environmental Protection and Regional Development

Project description
A mission to prepare a draft for a project document concerning Latvia's adjustment to the EU's birds and habitats directives and implementation of related international nature protection conventions that interface with the directives.
The project is also intended to help develop the capacity of the relevant Latvian authorities and institutions for the necessary adjustment and implementation.

Name of project
Desk Appraisal of the project document "Inventories of Species and Habitats, Development of Management Plans and Capacity Building in Relation to Approximation of EU Birds and Habitat Directives"

Project recipient
Latvian Ministry for Environmental Protection and Regional Development

Name of project
Evaluation of tenders for "Project to Assist Latvia in Approximation to European Union Law concerning Industrial Pollution Prevention and Control (IPPC) and Environmental Management and Industry"

Project recipient
Latvian Ministry for Environmental Protection and Regional Development

Project description
Evaluation of tenders in connection with the above-mentioned project.

Name of project
Evaluation of tenders in connection with the project "Assistance to the Latvian Ministry of Environmental Protection and Regional Development in Approximation of Legislation and Regulation in the Water Sector"

Project recipient
Latvian Ministry for Environmental Protection and Regional Development

Project description
Evaluation of tenders in connection with the above-mentioned project.

Name of project
Biodiversity Management in Latvian Farmland - a Decision Support System

Project recipient
Latvian Fund for Nature
The Latvian Ministry of Agriculture and the Latvian Ministry for Environmental Protection and Regional Development

Project description
The purpose of the project is to assist in the protection and sustainable utilisation of the biodiversity in Latvian farmland by developing a prioritisation tool (Decision Support System) for the ministries involved and their regional structures. The system has five components: development of nature management guidelines, development of integrated management plans for farmers, improvement of land usage statistics, improvement of monitoring of nature and raising awareness in the agricultural sector of factors affecting nature.

Environmental effect
Protection and sustainable utilisation of the biodiversity in Latvian farmland.

Name of project
Revision of Latvian Forest Conservation System and Management Plan for Gauja National Park

Project recipient
Latvian State Forest Service
Gauja National Park
Latvian State Land Service
Latvian State Institute for Forest Inventory

Environmental effect
The planning component concerns protected state forests (8-900,000 hectares) and Gauja National Park (92,000 hectares).

6.6 Environmental projects in Lithuania

Project recipient
Environmental Protection Ministry of Lithuania, Land and Biodiversity Management Department, Nemuno Kilpos and Meteliai Regional Parks

Project description
The purpose of the project is to strengthen the state park administration in Lithuania by developing capacity (training, advice, raising awareness, involvement of the public) through co-ordinated and linked activities in three areas: 1) the central administration in Vilnius, 2) preparation of a management plan for Meteliai Regional Park and 3) implementation of a management plan for Nemuno Kilpos Regional Park.

Name of project
Evaluation of tenders for the "State Park Institutional Development Project"

Project description
Evaluation of incoming tenders in connection with the above-mentioned project.

Name of project
Institutional Strengthening through Information Technology, Lithuania

Project description
The purpose of the project is to analyse, design and implement an integrated, administrative and technological infrastructure with a view to improving the internal flow of information at the Environmental Protection Ministry of Lithuania and the flow between the Ministry and relevant departments/institutions. A better flow of information will be an important planning and decision-making tool for the Ministry.

Name of project
Environmental Management with respect to Protection of Water Resources

Project recipient
Environmental Protection Ministry of Lithuania and Lithuanian Ministry of Defence

Project description
The purpose of the project is to introduce protection of water resources from contaminated sites into relevant offices and departments at the Environmental Protection Ministry of Lithuania and the Lithuanian Ministry of Defence. In that connection, use will be made of know-how and experience from earlier and present projects that are of relevance to the protection of water resources, and investigative and remedial measures will be introduced with a view to inviting tenders for such projects. Lastly, a case will be selected for demonstration of evaluation, investigation and remediation of a contaminated site - a former army base.

Environmental effect
In the demonstration part, soil contaminated with an unknown quantity of oil will be remediated.

Name of project
Implementation of cleaner technology in Lithuanian slaughterhouses

Project description
The purpose of the project was to appraise and revise a project proposal from the Danish Meat Research Institute. This involved a visit to relevant slaughterhouses and the preparation of a project description. A project based on the revised description is expected to commence in 1998.

Environmental effect
No environmental effect from the mission and revision of the proposal.

Name of project
Project Identification Mission for a Cleaner Technology Programme for Lithuania

Project description
A mission to prepare an integrated cleaner technology programme, a project document and three detailed project concepts. The mission is also intended to define general goals and tasks for organisation of cleaner technology initiatives in Lithuania.

Name of project
Evaluation of tenders for "Project to Strengthen the Framework of Lithuania's Laws"

Project description
Preparation of tender documents and subsequent evaluation of incoming tenders in connection with the implementation of EU law within the waste sector.

Name of project
Project to Strengthen the Framework and Administration of Lithuania's Laws on Waste Management and on Environmental Management of Industry

Project description
The purpose of the part of the project concerning waste is to assist the Environmental Protection Ministry of Lithuania with the implementation of EU law on waste - including providing support for the establishment of an integrated waste sector and the development of effective administration in the waste sector.
The purpose of the industrial part of the project is to get a basis established for implementing EU regulation of industry - primarily the IPPC directive (96/6/EEC), to promote the development of a flexible, result-oriented system for integrated environmental approval of companies and to promote the implementation of a cleaner technology programme.

Environmental effect
No direct environmental effect, but the project will enable the Environmental Protection Ministry of Lithuania to implement rapidly the EU rules on waste and industry and thus to achieve the associated environmental improvements.

Name of project
Consulting assistance for the Klaipeda geothermal energy project

Project description
The project relates to the appointment of an external consultant to provide expert assistance in connection with project follow-up on the establishment of Klaipeda Geothermal Energy Plant, Lithuania, which is being established in co-operation with the World Bank. The project assistance will have a 3-year time frame and a budget of around DKK 100,000 a year.

Name of project
Upgrading Vilnius Waste Water Treatment Plant for Nitrogen and Phosphorous Removal

Project description
The purpose of this last upgrade is primarily to ensure that the plant will be able to comply with the HELCOM limits on N and P discharge concentrations. 4 of the 6 existing aeration tanks in the active sludge section will be equipped with new mechanical equipment to improve removal of nitrogen and phosphorous. The project also includes an improved sludge-dewatering system with a new storage tank, new process control systems (SCADA and STAR) and various building works. The project is scheduled for completion on 31 December 1999.

Environmental effect
Reductions per year:
· BOD5 500 tons
· Total nitrogen 2000 tons
· Total phosphorous 155 tons
· Energy consumption 15 %

Project description
Installation of aeration equipment at a small waste water treatment plant in Lithuania. This will make it possible to increase the circulation velocity and the efficiency of the treatment process.

Name of project
Investigation of a contaminated site at an earlier
sleeper impregnation plant in Kaunas

Project description
A contamination study of a site formerly used in connection with a sleeper impregnation plant. The site is heavily contaminated with oil and heavy metals. The results of the study will be used to recommend measures to prevent the contamination from spreading.

Project description
The project is intended to help the Lithuanians remedy environmental problems that have arisen with gas and percolate contamination from covered landfills. Proposals will be prepared for gas and ground water monitoring programmes, and the risk of percolation of gas to nearby homes will be analysed. A pilot plant will be established for use of the gas for energy purposes.

Environmental effect
The first part of the project is a feasibility study concerning utilisation of the gas. The expected gas production from the landfill site will be about 4 million cubic metres of gas per year initially and about 2.5 million cubic metres after 10 years. There are around 30 landfill sites of about the same size in Lithuania.

Project description
The project is part of a larger project - the establishment of a reception station for hazardous waste in Klaipeda. The project will be implemented with support from and in co-operation with the PHARE Cross Border Co-operation Programme. The Danish part of the project comprises 1) technical and financial review of the project, 2) an Environmental Impact Assessment (EIA), 3) preparation of tender documents, 4) evaluation of incoming tenders and assistance in connection with the award of the contract.

Environmental effect
Cannot be calculated quantitatively. The project will prevent percolation of hazardous substances from the waste and consequent contamination of soil and groundwater. Hazardous waste used to simply "disappear" or be stored at the individual companies.

6.7 Environmental projects in Poland

Project description
Installation of electrostatic dust precipitators at Zeran Coal-fired Power Station in Warsaw, together with a combined control, registration and reporting system that will help to optimise the function of the electrostatic dust precipitators.

Environmental effect
Removal of about 50,000 tons of dust per year and an energy saving of around 990,000 kW per year.

Name of project
Optimisation of waste water treatment plants along the River Narew

Project recipient
The Municipalities of Bialystok, Bielsk Podlaski, Lapy, Makow Mazowiecki, Ruciane Nida, Nasielak, Wyszkow and Goldap

Project description
Implementation project resulting in physical implementation of optimisation measures at five waste water treatment plants found to be financially and environmentally sound in an earlier project. Project proposals are being prepared for enlargement of three of the plants.

Name of project
Installation of process control system at Poznan Central Waste Water Treatment Plant

Project description
The central waste water treatment plant in Poznan (600,000PE) is characterised as a HELCOM Hot Spot. The capacity of the plant is to be increased with a view to improve removal of organic substances and nutrient salts. The project includes a process control system that will help improve the quality of the discharge and reduce consumption of chemicals and energy.

Environmental effect
Expected reductions per year: 6,370 tons BOD, 1,880 tons nitrogen, 380 tons phosphorus.

Name of project
Desulphurisation plant for Polaniec Coal-fired Power Station

Project description
In this project, two desulphurisation units and an electronic monitoring system will be established, together with an absorber system and treatment system for different side flows.

Environmental effect
Reduction per year: approx. 105,000 tons sulphur dioxide.

Project description
The waste water treatment plant in Lublin (500,000 PE) is characterised as a HELCOM Hot Spot. The capacity of the plant is to be increased to enable removal of organic substances and nutrient salts. The project has three phases: a feasibility study, design and implementation.

Environmental effect
Expected reductions per year: 270 tons BOD, 1,200 tons nitrogen and 150 tons phosphorus.

Project description
Assessment of two waste projects that have received DESF support.

Project recipient
Polish Ministry of Environmental Protection, Natural Resources and Forestry

Project description
Poland has headed the secretariat function in connection with an updating of HELCOM's Baltic Sea Investment programme. The purpose of the project has been to provide the secretariat with support for quality assurance etc.

Project description
Assessment of two lake restoration projects that have received DESF support.

Name of project
Development of a Code of Good Agricultural Practice in Poland

Project recipient
Polish Ministry of Environmental Protection, Natural Resources and Forestry and Ministry of Agriculture

Project description
The purpose of the project is to draw up a Code of Good Agricultural Practice, as described in Annex II of the Nitrate directive and to prepare a plan for implementation of the code. The project will include the publication of a version primarily for agricultural advisors and a shorter version for Polish farmers.

Project recipient
Research Centre for Agricultural and Forest Environment, Polish Academy of Science, Educational Centre of Bialowieza National Park and Wigri National Park

Project description
The main purpose of the project is to strengthen both scientific and public understanding of the ecological importance of amphibians and the need for conservation. General transfer of Danish know-how will enable the Polish stakeholders to carry out studies of the effect of pesticides on amphibians with a view to comparison with the results of similar Danish studies. Four areas will be reserved for special monitoring studies and general guidelines will be prepared for amphibian conservation in Poland.

Environmental effect
More amphibians in water holes and greater understanding of the importance of protecting amphibian habitats against physical intervention, pollution, etc.

Project description
Completion of a waste water treatment plant and unit that has received DESF support at "Korab" Fish Processing and Trading Enterprise in Ustka, Poland. The Aminodan project was not completed, so funds have now been granted for this to be done so that Korab can meet the environmental requirements.

Environmental effect
Reductions per year:
BOD: 50,000 -70,000 kg
COD: 170,000 - 210,000 kg
SS: 65,000 - 112,000 kg
Grease/oil: 11,000 - 28,000 kg

Project description
The purpose of the project was to provide a water treatment unit in one of the areas of Poland affected by flooding. The unit was hired with crew by Krüger and shipped to Poland, where it was set up in a district of the town without a water supply.

Environmental effect
Clean drinking water for a district with 4-5,000 inhabitants in Wroclaw for two weeks.

Name of project
Assessment of Emergency Assistance in the Environmental Area

Project recipient
Polish Ministry of Environmental Protection, Natural Resources and Forestry, together with the local environmental authorities

Project description
The purpose of the mission is to visit the western and south western part of Poland, which has suffered severe damage from flooding, and to identify potential projects that could help to solve acute environmental problems, primarily with respect to water supply and, in special cases, also waste water treatment.

Name of project
Implementation of Environmental Management Systems based on ISO14001 Standard and EMAS in Poland

Project recipient
The Polish Ministry of Environmental Protection, Natural Resources and Forestry (the EMS unit)

Project description
The project is intended to strengthen the unit under the Polish environment ministry that will in future take care of/promote the implementation of environmental management systems in SMEs in Poland. The project includes concurrent start-up of an environmental management system at a chosen industrial firm.

Environmental effect
No directly measurable reduction of pollution,
resource savings or increased protection of nature.

Project description
Consulting assistance on the design and implementation of phases 2, 3 and 4 of a geothermal project, including the establishment of a peak-load station, laying of district heating pipes, connection of major customers and individual customers, plus establishment of the geothermal plant itself.

The complete project will result in the establishment of a plant for supplying heat to 100,000 inhabitants on the basis of geothermal energy - using 90*C water from a depth of 3,000 metres.

Environmental effect
Reductions per year: 50,000 tons CO2, 294 tons SO2, 45 tons NOx, 100 tons dust and 138 tons CO.

Project description
Design, call for tenders and establishment of a sanitary landfill near the village of Mozna in Briwinow Municipality. The landfill will serve 7 municipalities in the area. The project includes training of personnel to ensure proper operation of the installation.

Name of project
Pyrzyce Geothermal Plant. Investigations and recommendations for geothermal water loop in Pyrzyce in conjunction with operation problems, primarily injection problems

Project description
Advice and assistance on renovation of the injection wells at Pyrzyce Geothermal Plant. Problems have arisen with the wells and their operation because the wells were not constructed correctly by the Polish drilling company. There are also problems caused by clogging of the wells, possibly because of oxidation of the reinjected water.

Environmental effect
Maintenance of investment project with environmental effect calculated earlier.

Name of project
Polish-Danish Seminar on EU Approximation in the Water Sector

Project recipient
Polish Ministry of Environmental Protection, Natural Resources and Forestry

Project description
A seminar held to enable Polish and Danish experts in water management to exchange experience and identify projects within the water sector in which Danish experience could help the Polish environment ministry with approximation to EU law in this sector.

Environmental effect
No actual environmental effect, but the project has helped to speed up the implementation of EU law in Poland.

Project recipient
Polish Ministry of Environmental Protection, Natural Resources and Forestry

Project description
A seminar held to pass on to the participating officials from the Polish environment ministry an impression of the experience of Danish officials in the daily handling of the EU co-operation in the environment sector.

Environmental effect
No actual environmental effect, but the seminar has helped to facilitate the Polish integration process in relation to the EU.

Name of project
Introducing Multiple-use Principles into Forest Management in the Superintendency Kliniska

Project recipient
The Polish State Forest Authority
The Regional State Forest Authority in Szczecin
Forest Promotional Complex Kliniska

Project description
A modern, multiple-use operating plan is being drawn up for Kliniska Forestry District, which manages 23,000 hectares. In phase 3, selected parts of the plan will be implemented. The multiple-use concept will be introduced, and the flora and fauna and outdoor amenities will be registered and integrated with the operating plan in co-operation between the authorities, experts, NGOs and the Danish consultants. Digital mapping will be used.

Environmental effect
Greater consideration for biodiversity and recreating in a district with an area of 23,328 hectares.

Name of project
Sustainable Afforestation on the Marginally Productive Lands of the Baltic Coastal Lowlands of Poland

Project recipient
The Polish State Forest Authority
School of Forestry in Warcino

Project description
At two locations in Northern Poland, two parallel afforestation concepts are being practised: the traditional Polish concept and the Danish concept, which is based on deep ploughing and no use of pesticides. The two methods will be systematically compared, documented and communicated with a view to dissemination of the Danish concept to a wider circle of decision-makers concerning afforestation in Poland.

Environmental effect
12 afforested hectares will help to reduce the nutrient burden on the environment.

Name of project
Evaluation and minimisation of the environmental impact on the Wielowies Klasztorna Reservoir

Project description
A 50 million m3 reservoir in connection with the River Prosna is planned for drinking water and irrigation purposes, run-off control and recreational purposes.
The project will produce a design for the Klasztorna Reservoir. Extensive consideration will be paid to the environment; for example, an Environmental Impact Assessment will be carried out and general guidelines will be prepared for the design and for operation of the reservoir.
The project will implement a project commenced in 1996 now that the assumptions for the project have been fulfilled.

Environmental effect
The effect will be preventive in that the project is intended to minimise the negative environmental impacts of the design and operation of the reservoir, such as eutrophication, and to ensure that the reservoir contributes significantly to removal of nutrient salts.

6.8 Environmental projects in Romania

Project description
Upgrading and modernisation of 5 cement factories with a view, particularly, to reducing air pollution. The project includes later mounting of filters on both furnaces and coolers. In addition, the cement mills will be altered. The project includes technical training and a finance arrangement component.

Name of project
The Ecological Reconstruction of the Ceahlau National Park

Project description
The local authorities have forwarded several proposals for a nature project concerning the Ceahlau massif. A project document will be prepared and an assessment will be made of the possibility of establishing a sound nature project in the region. The project will include assessing the need to delimit the area, controlled tourism, etc. and information activities at schools etc.

Name of project
Appraisal of the project document "Conservation of the Biodiversity and Ecological Reconstruction of the Ceahlau National Park"

Project description
An appraisal of the project document "Conservation of the Biodiversity and Ecological Reconstruction of the Ceahlau National Park".

Name of project
Sustainable Management and Biological Conservation of the Ceahlau Nature Reserve

Project description
A nature project concerning the Ceahlau massif. The implementation project includes delimiting and protecting the most important parts of the area, controlled tourism, rehabilitation of parts of the area, construction of a visitors' centre, and information activities at schools.

Environmental effect
Increased protection of the natural environment and biodiversity.

Project recipient
Ministry of Waters, Forests and Environmental Protection of Romania

Project description
The project concerns the appointment of a local project co-ordinator for the period 1 May 1997 to 31 December 1999. The project co-ordinator's main tasks will be to help strengthen the Ministry, follow up on ongoing projects, suggest new projects to the Ministry and plan visits to the Danish-supported projects.

Environmental effect
Strengthening of the Ministry of Waters, Forests and Environmental Protection of Romania.

Project description
In Odorheiu-Secuiesc Municipality, domestic waste is at present deposited in a hollow by the river without any form of membrane or similar. The project therefore comprises the preparation of a project document for establishment of a landfill in Odorheiu-Secuiesc.

Name of project
Development of the Waste Water Treatment Plant and Sewerage System for Arad

Project description
Essential improvement of a waste water treatment plant in order to reduce significantly the present contamination of the River Mures.

Name of project
Sludge Treatment and Sludge Depositing at the Waste Water Treatment Plant in Brasov - Project Implementation

Project description
The waste water treatment plant is in a very poor state, and the sludge is currently simply led to a lagoon. The project comprises the establishment of a landfill for the sludge and an associated dewatering system, and necessary modernisation of the waste water treatment plant.

Environmental effect
Reductions per year: 19,035 kg NH4, 55,450 kg COD, 13 kg Pb and 79 kg Zn.

Name of project
S.C. Fibrex, Romania "Improvement of the Environmental Conditions"

Project description
An environmental review of a company, S.C. Fibrex, which makes synthetic fibres. The review will include an environmental review of the technological lines, air pollution, the waster water treatment plant, waste handling and disposal of waste. Any further environmental problems discovered will be described, including health & safety problems.

Project description
Otopeni near Bucharest has a geothermal plant, but it is no longer working, mainly for lack of a peak-load station. A feasibility study will be carried out to assess the possibility of starting the plant up again.

6.9 Environmental projects in Russia

Name of project
Project identification mission concerning residual products from power stations in the Moscow region

Project recipient
State Committee for Protection of Environment, Russian Federation

Project description
A mission to map existing special landfills for residuals, present proposals for precautionary measures where there are environmental risks, investigate future means of depositing and recycling/using residual products, and look into combustion technology and the choice of fuels. The mission's output was a project catalogue and 3 thoroughly elaborated project proposals.

Name of project
The Danish/Greenlandic Initiative for Assistance to the Indigenous Peoples of Russia

Project description
Institutional strengthening of the indigenous peoples' organisation, AIPON, in order to improve their ability to solve local problems relating to environmental protection and environmental rehabilitation, definition of sustainability models, etc.

Project description
The purpose of the project is to use Hempel's expertise with corrosion-resistant paint to rehabilitate the Russian natural gas network, which suffers from many leakages and explosions. The project comprises of laboratory tests and a demonstration project, training, and a feasibility study.

Environmental effect
Preliminary work for a major rehabilitation of the natural gas network.

Name of project
Institutional Strengthening of Environmental Funds in Russia - Phase 2

Project description
The purpose of the second phase of this project is to support the Russian authorities' implementation of an action plan. The project has three components: building up an institutional framework, training the fund management, and ad hoc assistance on the construction of the Association of Environmental Funds and with the formulation of legislation on environmental funds.

Name of project
Moscow City - Revamping and Upgrading of Incineration Plant No. 3 - Preparations for EBRD Co-financing

Project description
A feasibility study concerning extensive revamping and upgrading of two incineration plants in Moscow. The study will include a description of the waste situation, Moscow's financial status, proposals for and investment programme, an Environmental Impact Assessment, and an economic and financial analysis. The project should be seen in relation to the fact that EBRD has held out the prospect of a loan to Moscow for the upgrade.

Name of project
Ozone-depleting Substance (ODS) Phase-out in the Sector of Refrigeration Servicing in St. Petersburg City and Leningrad Oblast

Project description
The project comprises of supplementary training for 800 technicians within refrigeration service in the St. Petersburg area (5 days practical and theoretical training), transfer of the necessary equipment for the service firms included in the project, construction of 4 recycling centres and a storage yard for heavily contaminated coolants.

Project description
This concerns Denmark's contribution to the World Bank's trust fund for phase-out of CFCs in Russia. The money will be used for a World Bank project to ensure the phase-out of the remaining production and use of CFCs in Russia.

Environmental effect
Final phase-out of ozone-depleting substances at manufacturing companies.

Name of project
Development of Eco-tourism and Nature Protection in the Kaliningrad Region

Project recipient
Kaliningrad Regional Forest Administration and National Park Administration

Project description
The Curonian Spit and the Vistula Spit are recognised, nationally and internationally, as unique natural areas. However, their special character is threatened by rapidly increasing exploitation. The aim of the project is to ensure the preservation of natural amenities and a sustainable development of the amenities through the development of eco-tourism, strengthening of the administrative capability of the authorities, and public information.

Project description
Supplementary grant for a project supported earlier concerning development of the water and waste water sector in St. Petersburg. The long-term objective is for all inhabitants to have access to drinking water of a quality of at least EU standard, for contaminant loads to be reduced to HELCOM standard, and for the water company to be brought up to a level at which it operates on the basis of modern principles and on commercial terms.

Project description
The project is a continuation of the Slurry Utilisation project in the Pskov Region. In this phase, two more liquid manure tanks will be constructed and spreading of liquid manure on fields will be demonstrated. Water-saving measures will be introduced and a video and other information material will be produced. The project is being co-financed by the Danish Ministry of Food, Agriculture and Fisheries.

Environmental effect
Calculated reductions per year:
Nitrogen: 50 tons
Phosphorus: 4 tons
BOD: 120 tons
SS: 900 tons
Fuel consumption: 10,000 litres
Water consumption: 50,000 m3

Name of project
Kaliningrad Water and Waste Water Services Feasibility Study

Project description
The purpose of the project is to prepare a feasibility study of water supply and waste water treatment that complies with EBRD's standard for project descriptions, so that it can subsequently be used as a basis for a loan from EBRD.

Name of project
Modernisation and Elaboration of Understanding of the Environment and of Nature in Kaliningrad

Project description
The main aim of the project is to strengthen and spread environmental awareness among children and young people in the Kaliningrad region of Russia by introducing modern environmental teaching methods. To increase the centre's capacity, a mobile unit (an environment bus) will be supplied and equipped with teaching materials and equipment for active and practical teaching about environmental issues.

Environmental effect
More than 4,000 children participate in the school's activities each year.

Project recipient
The Russian Administration of Navigation and Hydrography in St. Petersburg and Kaliningrad

Project description
The aim of the project is the removal of 93 thermonuclear generators installed at 75 lighthouses in the St. Petersburg region and the Kaliningrad region, where they provide current for operation of the lighthouses. The radioactive cells will be replaced by solar panels and low-energy optics.

Environmental effect
Removal of 93 radioactive generators from 75 positions in the Bay of Finland and the approach to Kaliningrad.

Project description
Plan for improvement and enlargement of an existing landfill. Establishment of a waste registration system. Supply of a compactor. Establishment of a special section with a membrane for reception of hazardous waste. Implementation of separation of domestic waste at source in a pilot area. Implementation of cleaner technologies in at least 3 industrial enterprises with respect to waste minimisation and recycling. Evaluation of the possibilities of establishing a transfer station/recycling facility.

Environmental effect
Improved handling and storage of hazardous waste in a special section with a membrane. Improved waste registration. Reduction of quantities of waste sent to the landfill. Utilisation of recyclable materials. Less waste in at least 3 industrial enterprises.

Project description
The purpose of the project is to establish a reception station for waste from galvanic enterprises and to establish a collection system with fees, legislation, etc. The station must be able to handle all types of galvanic waste, including waste containing metal hydroxides. In addition, a schedule will be made of the total quantities of galvanic waste in the region.

Environmental effect
When this project has been completed, galvanic waste will no longer be deposited at ordinary landfills but will instead be collected and processed at the reception station. The quantity of sludge has been tentatively put at 100 tons, about 5 tons of which consists of heavy metals.

Name of project
Implementation of Sludge Project, Pskov Sewage Treatment Plant, Russia

Project description
Pskov Sewage Treatment Plant has been discharging sludge to a 10 hectare lagoon for many years. Now, 200,000 m3 sludge have accumulated in the lagoon. Studies have shown that a considerable part of the large quantities of heavy metals that have accumulated there are leaching into the River Velikaja.

The project consists in the establishment of a sludge treatment system at the treatment plant, including dewatering, stabilisation and depositing (the possibility of spreading the sludge on farmland must be investigated). In addition, a strategy must be drawn up for cleaning the sludge from the lagoon and re-establishing the lagoon as a lake or a sanitary landfill.

Environmental effect
This is a preventive project: A pump station to the lagoon will soon bring the water level down below the critical level of 38 m above the Baltic Sea. At 1-1.5 m over this level, the annual emissions are measured/estimated to be: 10 ammonia, 2 kg phenol, 4 kg cresols, 1 kg lead, 15 kg cadmium, 34 kg chromium, 6 kg nickel, 40 kg zinc and 100 kg copper. Below the 38 m level, the emissions are much lower (measured and estimated) and therefore give no cause for concern.

In about 10 years' time, when the lagoon has been completely cleaned, there will be no risk of an environmental disaster, and the emissions will be negligible.

Project recipient
ECO-ACCORD and various green organisations in the former Soviet Union

Project description
The main purpose of the project is to provide information that will encourage active participation by environmental organisations in the newly independent states and other large groups in continued work with the "Environment for Europe" process. The project is also intended to improve public access to information and raise public awareness in Russia and the former Soviet states.

Environmental effect
No direct effect, but the project will ensure increased co-operation between environmental organisations in East and West.

6.10 Environmental projects in Slovakia

Name of project
Installation of dust filters at 3 Slovakian furniture factories

Project description
Installation of dust filters at 3 furniture factories - Pravence, Prievidza and Uhrovec - all situated in central Slovakia. The waste heat from the production process is used, via cross heat exchangers, for circulation of clean, warm air and the dust collected is used as a fuel in the installed boilers. The dust filters will not only reduce emissions but also greatly improve the working environment.

Environmental effect
Total energy saving: 30,000 GJ/year,
Reductions per year: 4,500 tons CO2, 56 tons SO2, 5 tons Nox and 377 tons dust.

Name of project
General review of the extent of pollution of soil and groundwater in Slovakia

Project description
General review of the extent of pollution of soil and groundwater in Slovakia. Besides an examination of available material, terms of reference will be prepared for 3 types of preventive projects in selected localities.

Name of project
Appointment of a local project co-ordinator at the Slovak Republic's Ministry of Environment

Project description
Appointment of a local project co-ordinator to work at the Slovak Republic's Ministry of Environment. The co-ordinator will supervise ongoing projects and help to develop and consolidate the bilateral co-operation within the framework of DESF.

Environmental effect
Strengthening of the Slovak Republic's Ministry of Environment.

6.11 Environmental projects in the Czech Republic

Name of project
Implementation of a 14 MW CHP plant in the Zelenica district of Decin, Czech Republic

Project description
The project includes an environmental assessment of the activities carried out so far in Decin. Attention will be paid to the greenhouse effect, the use of ozone-depleting substances, acidification, the population's health situation, infant mortality, etc.

The project also includes the preparation of an environmental action plan for implementation of future projects in the town, with a view to prioritisation of the projects from both an environmental and an economic point of view.

Lastly, the project includes the establishment of a natural gas-fired CHP plant and a new district heat distribution system. In this connection, Bruun & Sørensen will take care of the tender procedure and participate in the contract negotiations and quality assurance.

Environmental effect
Reductions per year: 90 tons SO2, 58 tons NOx, 184 tons particles, 25,000 tons CO2 and 1,700 tons slag/ash.

Name of project
Evaluation of 4 projects for biomass-fired CHP plants in the south-eastern part of the Czech Republic

Project manager
Danske Fjernvarmeværkers Forening (Danish District Heating Association)

Project description
Evaluation of 4 projects for biomass-fired CHP plants. The Austrian Ministry of Environment paid for feasibility studies of the 4 projects, but the studies were encumbered with so many errors and deficiencies that an evaluation of a uniform basis was needed.
In the event of implementation, the projects will be financed in co-operation with the Austrian Ministry of Environment and the Czech Environment Fund.

Name of project
Preparation of tender documents for EU approximation project 124/043-0039

Project description
Preparation of tender documents and subsequent evaluation of incoming tenders concerning implementation of EU legislation within the water sector.

Name of project
Pre-accession Planning to Meet the Requirements of EU Legislation in the Water Sector in the Czech Republic

Project description
The purpose of the project, on which DEPA is co-operating with the World Bank and two small bilateral donors, is to estimate the cost to the Czech Republic of approximation to EU legislation in the water sector. The project includes a legal analysis of existing divergence from EU legislation, a cost analysis of the approximation to EU legislation, and a time and work schedule for achievement of conformity with the relevant legislation.

Environmental effect
No direct environmental effect, but the project will help the Ministry of Environment of the Czech Republic to implement the EU legislation more quickly and effectively.

Project recipient
Ministry of the Environment of the Czech Republic, including the Bank Environmental Programme (BEP)

Project description
Development of tools/guidelines to improve environmental management in the Bank Environmental Programme - including cost-benefit analysis tools for assessing/prioritising environmental projects - and introduction of EMAS in SMEs.

6.12 Environmental projects in Ukraine

Name of project
Supply of Equipment for Repair and Maintenance of Water Mains and Sewers, Yalta and Sevastopol, Ukraine

Project description
Both the water supply system and the sewerage system are in a very bad state, and the number of pipe ruptures exceeds the respective administrations' ability to repair them. With new contracting equipment and the training provided, the Vodakanals will be in a better position to carry out repairs and maintenance.

Environmental effect
In this region (the Crimea), there are regular outbreaks of water-borne diseases, such as hepatitis and cholera. With the new equipment, it will be possible to reduce the risk of disease from sewage running in the streets and leaking from sewers to drinking water pipes and to reduce pollution of the sea and beaches due to leaking outfalls.

Name of project
Feasibility Study for Water Supply and Waste Water Treatment in Crimea and Sevastopol

Project description
A feasibility study for a World Bank loan to the Vodokanals in Yalta and Sevastopol for rehabilitation of the water supply and sewerage systems waste water treatment plants. The project will include a view of the Vodokanals' administration with a view to introducing more modern, internationally recognised forms of administration. Lastly, a study will be carried out of the Crimea's water resources and the possibilities of improving the region's water supply system, which is often only in operation for two hours in the morning and two in the evening.

Project recipient
Ministry for Environmental Protection and Nuclear Safety of Ukraine

Project description
The project, which is based on the results of a preliminary mission, consists of a mission to Kyiv and two Ukrainian counties, which, together with the Ministry for Environmental Protection and Nuclear Safety of Ukraine, will prioritise the potential projects identified earlier within the handling of hazardous waste and procure the necessary information etc. for preparation of tender documents for the projects agreed upon.

Name of project
Cleaner Technology in the Machine Building Industry in Ukraine

Project recipient
Ukrainian Ministry for Machinebuilding and Ministry for Environmental Protection and Nuclear Safety

Project description
The project, which comprises 20 cleaner technology audits in the engineering industry, 5-10 demonstration projects, support for policy formulation, and training of local experts in cleaner technology, is intended to help ensure that the modernisation of Ukraine's engineering industry takes place on the best possible environmental basis.

Environmental effect
Savings in water, chemicals and energy are expected at the firms used in the demonstration projects.

Name of project
Preparation of project document concerning pesticide waste in Ukraine and the tender procedure for a feasibility study

Project recipient
Ministry for Environmental Protection and Nuclear Safety of Ukraine

Project description
An earlier mission on the need for a project dealing with hazardous waste, identified the estimated 20,000 tons of pesticide waste in Ukraine as a major national problem. The project comprises the preparation of tender documents and the tender procedure for a feasibility study with a view to indicating practical models for environmentally acceptable disposal of the waste.

Project recipient
Ministry for Environmental Protection and Nuclear Safety of Ukraine

Project description
The project has two objectives: firstly, to support the Ukrainian Government in its efforts to regulate the production and use of leaded petrol and, secondly, to generate the necessary commitment for a total phase-out of lead in petrol. The country programme will also form a model for similar programmes and action plans in other CEE countries.

Environmental effect
The country programme will create the necessary criteria for eliminating leaded petrol in Ukraine.

6.13 Other environmental projects

Name of project
HELCOM PITF MLW Demonstration Project "Management Plans for Coastal Lagoons and Wetlands, Phase 1b"

Project recipient
HELCOM PITF Working Group on Management of Lagoons and Wetlands

Project description
The objective, which is an element of the HELCOM co-operation, is to put management plans into operation for six large coastal lagoons and wetlands in Estonia, Latvia, Lithuania, Kaliningrad and Poland. Plans are being prepared as the final basis for implementing a number of nature conservation projects. This phase of the project includes strengthening public involvement and administrative capability.

Environmental effect
Preliminary work for subsequent projects that are expected to result in an average reduction of 400 kg nitrogen/hectare/year per lagoon.

Name of project
Bosnia/Hercegovina, Sarajevo District Heating Reconstruction Project

Project manager
Carl Bro A/S. Equipment supplies: Starpipe A/S and Danfoss A/S

Project description
Based on a Finnish feasibility study on the reconstruction of Sarajevo's district heating network following the civil war, DESF, in co-operation with the Danish Ministry of Foreign Affairs' fund for the reconstruction of Bosnia-Hercegovina, has financed a supply of district heating pipes and small-scale CHP plants for the district heating network. The supply was made in connection with a major project financed by the World Bank: reconstruction of Sarajevo's entire district heating network.

Environmental effect
Two environmental effects: the establishment of 6 km of district heating pipes and the fact that connection to the district heating network will render unlawful, interim heating devices unnecessary.

Name of project
Technical Support to DEPA on Identification and Preparation of Approximation-related Projects in Central and Eastern European Countries

Project description
Identification, description and preparation of projects to assist CEE countries in approximation of their environmental legislation to European Union law.

Name of project
Contribution to Nordic Environment Finance Corporation (NEFCO)

Project description
This concerns Denmark's contribution to NEFCO, which contributes to joint ventures between Nordic and Central and East European companies in the environment sector by investing in corporate constellations or providing loans for projects. The contribution to the basic capital amounts to about DKK 12 million; in addition, a contribution of about DKK 6 million is made to a special soft loan facility under NEFCO.

Project description
In connection with the international work in EBRD, a PPC officer has been appointed, financed by DESF. The officer in question is attached to the Committee for Project Preparations in Central and Eastern Europe cf. Document 120 of 2/2 1994.

Name of project
Chisinau Water Services Rehabilitation Project - Implementation Support and Industrial Effluent Monitoring

Project description
Assistance to the Moldavian authorities in connection with the tender and contract procedure for this entire rehabilitation project. The project should be seen in relation to the main project, which amounts to USD 59.2 million.

Project description
The expansion of the project will support the Danish lead phase-out initiative from August 1997 to spring 1998. The expansion comprises further collection and processing of questionnaires concerning leaded petrol, assistance with the formulation of an integrated strategy for phase-out of leaded petrol in Europe, and revision and editing of a report on the subject, with particular emphasis on Central and Eastern Europe.

Environmental effect
Preliminary work for an integrated European strategy with particular emphasis on Central and Eastern Europe.

Project description
The grant will finance participation by Central and East Europeans in the 2nd Task Force meeting on phase-out of leaded petrol.

Project manager
Mikael Skou Andersen, Århus University, in co-operation with PLS Consult and KPMG C. Jespersen.

Project description
The project is the first external evaluation of DESF. The project has three components. The first is a project evaluation with a view to verify the project results achieved; this component includes an evaluation of the administration of DESF. The second component is a country evaluation of 8 selected programme countries. In the third and last component, the threads of the evaluations are gathered together and recommendations are made for further action.

Project description
The main purpose of the project is to gather and publish information about East European makes of cars/models that can run on unleaded petrol. This information is of vital importance in connection with the plan to phase out leaded petrol.

Environmental effect
The publication could, in itself, have a significant impact on the use of leaded petrol in Central and Eastern Europe, although the impact is unquantifiable.

Project description
The project is part of the Baltic Agenda 21 programme initiated by the environment ministers of countries around the Baltic Sea in Saltsjöbaden in October 1996. The purpose of the energy part of the programme is to draw up an action plan for sustainable development in the energy sector in the Baltic region.

Project description
The purpose of the project is to procure information on the trend in environmental expenditure in Central and Eastern Europe and to the financing of the expenditure. The project is also intended to improve the methods used for preparation of national environmental statistics in the region. 5 case countries will be selected.

Project description
The purpose of the project is to gain a picture of good and bad experience in the implementation of the Energy Charter Protocol with a view to intensifying the action, particularly in Central and Eastern Europe, and thus reducing emissions of CO2, NOx and SO2.

Project recipient
The environment and energy ministries in Aserbaijan, Kazakhstan and Usbekistan

Project description
The purpose of the project is to support the Governments of Azerbaijan, Kazakhstan and Uzbekistan in their efforts to regulate the production and use of leaded petrol and to generate the necessary commitment to a total phase-out of leaded petrol. The project will result in phase-out plants for leaded petrol within the framework of the national environmental action plans (NEAPs).

Environmental effect
The project will create the necessary criteria for eliminating leaded petrol in Azerbaijan, Kazakhstan and Uzbekistan.

Project description
The project is intended to strengthen the use of economic control instruments in environment policy and strategic environmental analyses in Central and Eastern Europe through exchange of experience and information, identification of success stories, establishment of an expert network, and institutional strengthening.

Project description
The project is a continuation of a project to establish a result database containing final reports on all projects that have received grants under DESF. This involves updating about 180 final reports from 1996 and 1997.

Name of project
Support to enable Central and Eastern Europeans to participate in various conferences

Project manager
Stockholm Environmental Institute, Convention of the Conservation of Migratory Species of Wild Animals, UNEP, Danish Technological Institute and the Danish National Forest and Nature Agency

Project description
Provision of grants to enable Central and East Europeans to participate in the following conferences:

UNCED Progress Assessment in Central and Eastern Europe
Follow-up on the Rio Conference
Conference on natural coolants in Århus
Baltic Sea Conference on Family Forestry

Name of project
The Danish Social-Liberal Party: Conference on Environment and Democracy in East and West

Project recipient
Participants from the Baltic States, Poland, Russia, the Czech Republic and Slovakia

Project manager
The Danish Social-Liberal Party's Environment and Energy Committee

Project description
A conference from 1 to 6 June 1997, the main purpose of which was to increase the CEE countries' knowledge of democracy and environment in theory and practice. Themes included environment, democracy and consumer and citizen influence.

Project recipient
Various Central and East European co-operation partners in the recipient countries

Project description
Joint account for payment of the travel and accommodation costs of Central and East European co-operation partners. Co-operation partners, here meaning primarily central authorities, in most CEE countries do not have the necessary funds for travel and accommodation. DESF therefore pays these costs to facilitate co-operation.

Name of project
Technical assistance with the implementation of an investment project to improve the water supply and waste water situation in 5 Croatian towns

Project description
Preparation of tender documents for technical assistance on an implementation project within water supply and waste water treatment in 5 towns in Croatia. The Danish consultant will also carry out feasibility studies for two other towns, Omis and Sibenik, and help the local authorities to implement the project, including procurements, the tender procedure, building up the necessary organisation, etc. The project will be implemented in all 7 towns.

Project description
The project is intended to ensure continued action on unsafe nuclear power stations on Central and Eastern Europe. The Danish position is that unsafe nuclear power stations should be closed down, primarily because of the risk of operating them. Where closure is not possible - because, for example, alternative energy sources are not available for economic and other reasons, it should be ensured that the widest possible use is made of safe, Western nuclear power technology.

In 1993, an international grant facility was created under EBRD, Nuclear Safety Account, which takes care of this work.

Environmental effect
Safeguarding unsafe nuclear power stations is a preventive measure.

7. Annex 1

7.1 Members of the Advisory Committee to the Danish Environmental Support Fund for Eastern Europe

Danish Environmental Protection Agency
Leo Larsen, Deputy Director General
(1. February 1999 appointed
Permanent Undersecretary of State)

Notes:

1. The introduction is an edited version of an article that appeared in the Danish newspaper "Kristeligt Dagblad" on 31 January 1998.

2. More detailed information on the Århus Conference appears in the Annual Report of the Danish Environmental Support Fund for Eastern Europe (DESF) for 1998.

3. The convention signed in Århus was named "The Århus Convention" since it is common practice in such contexts to name international environmental agreements after the place where they are signed.

4. For amplification of the prioritised target areas, readers are referred to the Danish Environmental Protection Agency's Guidelines No. 14 of 1995 on Suggested Projects for environmental activities in Central and Eastern European Countries and the Annual Report of the Danish Environmental Protection Agency 1995.