Danish - Lithuanian Environmental Co-operation 1991-2000

Chapter 2
The Danish Lithuanian environmental Co-Operation on the environment

- 10 years of environmental cooperation

The Danish environmental support to Central and Eastern Europe is mainly targeted at the countries around the Baltic Sea which includes Lithuania. From 1991 till 2001, Denmark has spent approximately DKK 520 million (EUR 69.84 million) in total support.

The environmental co-operation between Denmark and Lithuania was established in September 1991 as an agreement between the Environmental Protection Department of the Republic of Lithuania and the Ministry of Environment of the Kingdom of Denmark. The co-operation is based on direct bilateral cooperation between the authorities involved and other interested parties, including enterprises, institutions, and private organisations.

The largest environmental support programme is the DANCEE programme (Danish Environmental Co-operation for Central and Eastern Europe) which was preceded by the Danish Environmental Support Fund (DESF). The administration of these programmes rests with the Danish Environmental Protection Agency (DEPA).

Until 2001, the DANCEE/DESF has allocated approximately DKK 310 million (EUR 41.63 million) in direct grant support to projects in Lithuania, divided upon some 140 different projects.

The main target areas of the DANCEE programme have been:
Water pollution abatement
Improved waste management
Nature protection and sustainable forestry
Institutional strengthening

The cross-sector programme

Until 1994, all Danish environmental assistance was administered directly through DEPA. Since 1994, however, part of the assistance has been implemented through the "crosssector programme" which targets environmental goals set in the Baltic Agenda 21. The aim of the cross-sector programme is to implement projects through the co-operation between the relevant sector ministries and organisations which is co-ordinated by DEPA. The development objective of the assistance is sustainable development in the Baltic Sea Region - defined as growth based on market economy, restoring or maintaining the biological and ecosystem diversity and without increased pollution or over-exploiting of non-renewable resources.

The cross-sector programmes are:
The programme of the Ministry of Labour,
the programme of the Danish Emergency Management Agency,
the programme of the Ministry of Education,
the programme of the Ministry of Housing and Urban Affairs,
the programme of the Danish Energy Agency,
the programme of the Danish Agency for Trade and Industry,
the programme of the Danish Ministry of Food, Fisheries and Agriculture,
the programme of the Ministry of Transport.

The largest of the programmes is the energy programme.

Pollution abatement from waste water treatment plants has been a major target of the DANCEE programme and the pollution reduction reached equals a non-treated waste water load from approximately 750.000 people.

Other areas that have received substantial support are air-pollution abatement, the energy sector, enhanced waste management, protection of nature, and institutional strengthening.

The energy cross-sector programme has allocated approximately DKK 130 million (EUR 17.48 million) up till 2001 and the contributions form other sector programmes add up to approximately DKK 80 million (EUR 10.76 million).

In addition to this, "Danish Soft Loans for Infrastructure Projects in the Baltic States" (Danish state subsidised loans) have been allocated to a number of investment projects primarily in connection to the rehabilitation and reconstruction of Lithuanian waste water treatment plants.

The rehabilitation of 13 waste water treatment plants have been partly financed through Danish soft loans with a total loan amount of DKK 150 million (EUR 20.17 million), the total number of environmental projects supported by the programme, which was functioning from 1994-1995, is 17 with a total loan amount of DKK 280 million (EUR 37.65 million) and a total subsidy element of DKK 75 million (EUR 10.09 million).

Hence, the total Danish Environmental Assistance to Lithuania until 2001 has had a value of DKK 520 million (EUR 69.84 million) making Denmark one of the largest bilateral environmental donor.

Achievements of the environmental assistance

The water sector, the energy sector, the waste sector, and the preservation of nature and biodiversity have been the major target areas of the Danish Environmental Assistance to Lithuania.

In the water sector, the Danish assistance has led to yearly pollution load reductions in the same order of magnitude as the total Danish waste water load to recipient waters in 1998. Furthermore, a wide range of demonstration projects has supported the transfer of Danish knowledge and know-how in as different fields as marine oil spill abatement, remediation and clean up of ground water pollution, drinking water supply, river monitoring, waste water treatment technologies, and municipal water sector planning.

Over all distribution of DANCEE projects and financing, 1991-2000

 

Number of projects

Million DKK

DANCEE Million EUR

Million DKK

Other Financing Million EUR

Million DKK

Total project costs Million EUR

Air Pollution

21

43.9

5.9

85.1

11.4

129

17.3

Water pollution

43

118.4

15.9

372.8

50.1

491.2

66

Waste Management

20

42.4

5.7

51.6

7

94

12.7

Institutional Strengthening

22

41.4

5.6

1.6

0.2

43

5.8

Nature and Forestry

24

46.2

6.2

4.5

0.6

50.7

6.8

Agriculture

4

5.3

0.7

0.5

0.07

5.8

0.77

Nuclear Safety

7

12.2

1.64

0.1

0.01

12.3

1.65

Other

1

0.01

0.001

-

-

0.01

0.001

Total

142

310.3

41.7

516.2

69.3

826.5

111


The major achievements in the waste sector are connected to the support of a demonstration project for an up-to-date landfill and waste management system in the second largest Lithuanian town, Kaunas. The support to projects strengthening the legislative framework of the waste sector, and hence supporting Lithuania's efforts to create compliance with EU-directives and regulations, has played an important role in recent years' project portfolio.

Until 1997, the Danish support to preservation of nature and biodiversity was mainly focused on national and regional park management and the development of sustainable forestry practices. Recently, the Danish support in this area has added to progress in relation to EU requirements and regulations and the implementation of international conventions in which Lithuania is participating.

The largest river system in Lithuania - the Nemunas system - has many nonregulated stretches

In the energy sector, a number of projects in relation to energy savings and efficient use of energy together with investment support to demonstration projects for sustainable energy (e.g. the use of geothermal sources) has paved the way for an increasing Lithuanian awareness and transfer of Danish knowledge and know-how. The Danish assistance in relation to overall energy strategy studies and the strengthening of the legislative and institutional framework has furthermore supported the strategic development of the sector.

DANCEE allocations 1991-2000 sector wise
(allocations in mil. DKK)

Distribution of DANCEE grants and cofinancing

For the period of 1991-2000, there was a 50/50 split between allocations given for technical assistance and investment projects even if the projects targeted at technical assistance outnumber the investment projects significantly.

On an average, the DANCEE/DESF contribution to projects implemented in Lithuania account for a little less than 40 per cent of total project costs.

The DANCEE support to Lithuania for 2001- 2003 is foreseen to be in order of a magnitude of DKK 50-70 million per year (EUR 6.72-9.41 million) of which approximately one third will be used for support to projects included in the "Ignalina Package". Projects of the "Ignalina Package" are targeted at facilitating the needed restructuring of the Lithuanian energy sector as a consequence of the closing of the Ignalina Nuclear Power Plant.

It is further expected that projects in the subsectors: Water, waste, and nature will account for approximately 50 per cent of the total DANCEE support to Lithuania in the period of the country programme.

DANCEE allocations per year
(TA = Technical Assistance - red, IN = Investment - blue)