Danish support to improved water quality in Central and Eastern Europe 1991-2001

Chapter 9
The Consultants Assessments and Comments

The consultant reviewed more than 400 DANCEE-supported projects in the water sector for grants have been allocated in the period April 1991 - April 2001. The overview of the achievements of the DANCEE programme support is based on statistical summary reports submitted to DANCEE by the individual project holders, other project reporting and publications available from the Danish EPA.

General Conclusion

Based on the review of 10 years support by DANCEE towards improving the water quality in Central and East European Countries (CEEC) the following general conclusions are made:
The support has provided cost efficient environmental improvements in all recipient countries
The support has facilitated approximation to EU Environmental directives and thereby EU membership for countries in the CEE
The support has strengthened the cooperation between on the one side CEEC national and local governments and enterprises and on the other side the Danish government and Danish environmental expertise
The support has been successful in promoting Danish technology and know-how in the CEEC

Support to Improved Water Quality

There have been the following characteristics:
There has only been a few technical barriers in transferring the environmental technology from Denmark to CEEC. The DANCEE supported projects achieved their intended environmental impact by applying Danish technology for improved water supply, better wastewater treatment, cleaner technology in industries etc.
The Danish support to CEEC projects has been significant in reducing the discharge of the most common water pollutants and has achieved a similar reduction as achieved during the same 10-year period in Denmark.
Wastewater treatment plants, which have received Danish support, comply with EU effluent standards.
When comparing the cost to similar investments in Denmark, the cost of for instance nitrogen removal from waste water in the CEEC has only been approximately one third of the cost for a similar reduction in the Danish National Plan for the Water Environment
The high level of local and international co-financing on DANCEE projects (80-90%) result in removal of pollutants at a cost for Denmark of 5-10 times less than the cost would be in Denmark
Public health has been an important prioritising parameter in selection of projects. Public health has improved in CEEC among others due to improved provision of drinking water

EU Approximation

There have been the following characteristics:
DANCEE has provided assistance to adapting national legislation in CEEC to the EU waterdirectives and preparing the implementation of necessary investments.
The road to EU membership contains many large and small barriers and the candidate countries need assistance to overcome these. The Danish support programme can react fast when these barriers appear and an important part of the support at the end of the first 10 year period was indeed focussed on overcoming these barriers, which still keep appearing.
DANCEE has frequently been approached by local CEEC authorities for assistance to prepare a proper basis for project identification, which is required by among others EU

Co-operation with the Recipient Countries

There have been the following characteristics:
The need for project identification and environmental investment planning in a broader context has increasingly been acknowledged. Projects are implemented including both the technical, financial and institutional aspects. The Danish way of using an integrated planning concept is thereby transferred to the recipient countries.
The Danish support programme has been able to respond swiftly and effectively to the requests and demands put forward by the individual recipient countries and the implemented projects proved the efficiency of Danish environmental expertise and technology.
DANCEE has also supported the development of national sector strategies and financing strategies to ensure that projects on a wider scale are implemented according to local needs and affordability.
For instance support has been provided for the development of autonomous water companies in improving their efficiency in operating water and wastewater systems.

Financing of Projects

There have been the following characteristics:
DANCEE has supported the EU applicant countries in mobilising significant local and international resources for the investments, which are necessary for complying with the EU environmental standards.
DANCEE has supported the CIS countries in developing the internal regulatory and institutional framework, which can enable mobilisation of sufficient funds for operating and maintaining existing environmental infrastructure.
The DANCEE support has had a significant leverage effect by attracting up to 90% co-financing on investment projects in environmental improvements. Thus, the period 1991-2001 DANCEE support on investment in average geared a 5-6 times higher co-financing. DANCEE projects were therefore successful in attracting both local financing and financing from international financial institutions. This is a proof of local commitment.
DANCEE has managed to initialise and contribute to the cooperation between the public and the private sector by demonstrating cooperation models that secures the public interest.