Transcript NDEP - Finnish Water Forum

NDEP funded investment
implementation in Belarus
Northern Dimension Environmental
Partnership (NDEP)
Jaakko Henttonen, NDEP Fund Director
European Bank for Reconstruction and
Development (EBRD)
Helsinki, 11 February 2014
Northern
Dimension
Environmental
Partnership
Contents

Briefly on NDEP

Present status of NDEP co-financed projects in
Belarus

Steps for future
Northern
Dimension
Environmental
Partnership
KEY POINTS:
NDEP
is a multi-donor Fund recognized as an effective model for
international cooperation based on co-financing structure by loans, grants
and local funds; 8 contributors for environmental window EU, Russia,
Sweden, Finland, Germany, Norway, Denmark and Belarus
EBRD,
EIB, NIB, NEFCO, KfW are the Implementing Agencies of NDEP
projects providing loans for financial packages
delivers bankable projects - €123 million committed for 29 nonnuclear projects leveraging €700 million in loans by IFIs
NDEP
NDEP
mandate extends until 2017. The Fund was set up in 2001.
Contributions for Environmental window amount to a total €180million.
► NDEP Area of operation:
Northwest Russia
and Northern Belarus
Vitebsk ●
● Grodno
● Brest
Northern
► Russia and Belarus
need
Dimension
Environmental
more effective municipal
Partnership
wastewater treatment
Belarus is part of the Baltic Sea catchment area
83,850 km2 (5th largest area), P-load 1,900t/a,
N-load 40,100t/a (in 2000)
Vitebsk
● ●
Poletsk
●
Grodno
●
Brest
Minsk●
Northern
Dimension
Environmental
Partnership
IFI/NDEP Investment Development
•
Self-audit of operations, resources, staff
•
Feasibility studies by external consultants for objective
results; provided by IFIs
•
Confirmation of financial strength; revenue, sales,
collection rates, debts
•
Size of investment based on audit results on most urgent
needs to gain highest benefits; staged approach
•
Financing structure; loan, budget funding, external grants.
Northern
Loan max 40-60%.
Dimension
Environmental
Partnership
Other Benefits
•
Prevention of further deterioration of municipal
systems and services and associated adverse
environmental and social impacts
•
Transfer of modern project and investment
planning, financing and management skills
•
Paradigm shift from budgetary funding to selffinancing through full cost recovery; tariff reform
as a precondition for progress in Belarus
Northern
Dimension
Environmental
Partnership
Brest Wastewater Treatment Project
• Comprehensive modernization
of the plant to reach HELCOM
standards
• Phosphorous load to be cut by
217 t/a and nitrogen by 921 t/a
• Cross border benefits for Poland
via the Western Bug River
• NDEP Grant of EUR 2 million
has been used to leverage
NIB and World Bank
loans of EUR 11.5 million
Grodno Wastewater Treatment Project
• Comprehensive modernization
of the plant to reach HELCOM
standards
• Phosphorous load to be cut by
51 t/a and nitrogen by 476 t/a
• Cross border benefits for Lithuania
and Russia via the Neman
(Nemunas) River
• NDEP Grant of EUR 2 million has
been used to leverage NIB and
World Bank loans of
EUR 14.7 million
Vitebsk Wastewater Treatment Project
• Comprehensive modernization
of the plant to reach HELCOM
standards
• Phosphorous load to be cut by
68 t/a and nitrogen by 183 t/a
• Cross border benefits for Latvia
via the Western Dvina River
• NDEP Grant of EUR 2 million
has been used to leverage EBRD
loan of EUR 12.5 million
Vitebsk Vodokanal
EBRD AND NIB LOANS FOR WASTEWATER TREATMENT PROJECTS
IN VITEBSK, GRODNO AND BREST WERE SIGNED ON 10.12.2012
150 THOUSAND CUBIC METERS OF SEWAGE PER DAY
Grodno Vodokanal
Northern
Dimension
Environmental
Partnership
Vitebsk Vodokanal
NDEP GRANT AGREEMENTS FOR
VITEBSK, GRODNO AND BREST WERE SIGNED ON 26.03.2013
Grodno Vodokanal
Northern
Dimension
Environmental
Partnership
Steps forward

Continuous commitment by Belarusian government
a clear prerequisite for any actions

Immediate commencing of present NDEP-projects
in Brest, Grodno, Vitebsk as well as EBRD projects
in Slonim and Baranovichi

Pipeline development for next phase can be started
in parallel; potentially in Lida, Poletssk,
Novopoletsk etc in the Baltic Sea basin

IFI financing available for River Dnepr basin, like
Gomel. Mohilev etc for wider cooperation
Contact Details:
Jaakko Henttonen, NDEP Fund Director
EBRD RO, Nevsky Prospekt 25, St Petersburg
Tel. +7 812 7035531; Fax: +7 812 703 55 26
Email: [email protected]
Ewa Manik, Fund Analyst
EBRD, One Exchange Square, London
Tel. +44 207 338 7196, fax +44 207 338 7486
Email: [email protected]
Also visit:
www.ndep.org
www.ebrd.com
www.nib.int
www.nefco.org
Northern
Dimension
Environmental
Partnership