An Evaluation of Phare-financed Energy and Environment Programmes. Inventory Report

Transcription

1 An Evaluation of Phare-financed Energy and Environment Programmes Inventory Report September

2 This report was produced by "Environment Resources Management" (ERM) for the Evaluation Unit of the Joint External Relation Service (SCR) of the European Commission. The views and opinions expressed herein do not necessarily reflect those of the European Commission. The European Commission does not guarantee the accuracy of the data included in this report, nor does it accept responsibility for any consequence of their use. 2

3 TABLE OF CONTENTS:...ERROR! BOOKMARK NOT DEFINED. 1 INVENTORY RESULTS INTRODUCTION Background Approach to the Inventory INVENTORY RESULTS CONCLUSIONS IMPLICATIONS FOR PHASE METHODS USED OBJECTIVES OF THE INVENTORY KEY ACTIVITIES DATA COLLECTION Type of data Data Gathering Process Data Verification and Synthesis CLASSIFICATION AND DATA MANAGEMENT LIMITATIONS OF THE INVENTORY

4 1 INVENTORY RESULTS 1.1 INTRODUCTION Background This Inventory Report has been prepared by Environmental Resources Management (ERM) as the key output of Phase 1 of a project entitled: Evaluation of the Phare-financed Energy and Environment Programme. The Report contains the results of the inventory and a description of methods used. The inventory is based on records of all funds committed to Phare national and multi-country energy and environment programmes between 1990 and It covers 10 candidate member states including: Estonia, Latvia, Lithuania, Poland, Hungary, Czech Republic, Slovakia, Slovenia, Romania and Bulgaria. The inventory is designed to be used as a basis for selecting a representative sample of projects for detailed evaluation during Phase 2. The evaluation will focus on defining the relevance, effectiveness and impact of past Phare programming. The results of the evaluation will lead to a set of general recommendations for future programming, within the context of Phare s evolving role as a proactive and strategic instrument for directing the accession of selected CECs Approach to the Inventory This report follows three months of preparation and brief field visits to all 10 candidate member states. As there is currently no unified list of Phare energy and environment programmes and projects, the primary purpose of the field visits was to compile a detailed inventory. In addition to listing projects, we collected information on the outputs and objectives of each as a basis for classification. In terms of output we distinguish between Institutional reform and Investment projects, as follows: Institutional reform including - organisations; pricing; regulations; and awareness; Investment including - physical assets; demonstrations; investment funds; and investment preparation. There are a number of other projects which do not fall easily within these two categories. These include strategic planning projects and support for PMUs, both of which we consider to be inputs rather than outputs. Critical aid projects address specific issues at a given time and have not been included within institutional reform or investment. There are also a number of unknowns for which insufficient information is available and projects of multiple output. 4

5 At the objectives level, projects divide into those which aim to achieve one of the following: energy savings; improved energy supply; reduced waste and water use; improved waste services and water supply; pollution reduction; and biodiversity conservation. Following classification, we coded all projects and entered them into a database (operated via Microsoft Access). The database has proved to be an effective way of collating the inventory and presenting the results both visually and numerically. We present a more detailed description of methods used during inventory and classification in Section 2 of this report, as well as a full print-out of the database as Annex A. The full inventory, by country and by sector is presented as a separate document to this report (Appendix A). 1.2 INVENTORY RESULTS The inventory consists of 795 projects with a total expenditure (based on funds committed) of about 570 MECU. Figure 1 presents the evolution of the programme from 1990 to The graph shows an expected distribution of strategic studies peaking during the early years and dropping off thereafter, and a similar distribution for institutional reform, though rising again during the later years. We have included critical aid as a separate line to show an expected peak in the early years and to distinguish this from investments which are surprisingly high during the early years. Figure 1 also shows that expenditure has been declining since Figure 1: Evolution of Phare Energy and Environment Programmes 60 Expenditure (MECU) Strategies Institutional Investment Critical aid Year of Programme 5

6 Tables 1 and 2 provide a summary of the inventory by sector (energy and environment) and by country, demonstrating the following: overall expenditure committed to the environment sector programme (about 345 MECU) is significantly greater than the energy sector programme (about 225 MECU) (1) ; the environment sector programme started marginally earlier than the energy sector programme, with five out of ten countries beginning in 1990; expenditure on the environmental sector programme is highest in Poland and Hungary, followed by Bulgaria and the Czech Republic; and expenditure on the energy sector programme is highest in Bulgaria, followed by Romania and Lithuania. Table 1: Summary of Phare Environment Programme ( ) CountryNumber of Programmes Year of first Programme Year of last Programme Committed (MECU) Bulgaria Czech Rep Estonia Hungary Latvia Lithuania Poland Romania Slovenia Slovakia Multi-country Total Source: ERM, 1998 Table 2: Summary of Phare Energy Programme ( ) CountryNumber of Programmes Year of first Programme Year of last Programme Committed (MECU) Bulgaria Czech Rep Estonia Hungary Latvia Lithuania Poland Romania Slovenia Slovakia Multi-country Total Source: ERM, 1998 (1) May 1998 figures 6

7 Figure 2 presents the average size of projects demonstrating a typical bimodal distribution. Small projects (under 1.0 MECU) are the most numerous while larger projects (over 1.0 MECU) account for most of the spending - 70% of total expenditure. Figure 2: Numbers of projects and expenditure (MECU) by size category Size category (MECU) Expenditure Number Total expenditure on energy and environment sector programmes by country is presented in Figure 3. Three countries dominate overall spending including, in ascending order, Hungary, Poland and Bulgaria. With the exception of Bulgaria, there is less variance in the size of the energy programme between countries that the environment programme. Expenditure on energy is surprisingly low both in Hungary and Poland considering their relative size. Expenditure on the energy programme in Bulgaria is particularly high, as compared to other countries. Lithuania, Slovakia and the Czech Republic are the only two countries which appear to have equal spending on energy and environment, with all other countries tending to favour one or the other. Figure 3: Country distribution for energy and environment ( ) Expenditure (MECU) BG CR ES HU LE LI PL RO SL SR ZZ Country ENE ENV Figure 4 presents expenditure by output. Investments in physical assets dominate the programme both for energy and environment. Other important 7

8 project outputs include institutional support for organisations, investment preparation and strategic studies. Project management support is the 5 th largest output category accounting for about 7% of total expenditure. Figure 4: Expenditure (MECU) by output Z3 Unknown Z2 M ultiple Z1 Project m anagem ent V 5 Critical aid V 4 Investm ent preparation V 3 Financing V 2 D emonstrations V 1 Physical assets S4 A w areness S3 Regulations S2 Pricing S1 Organisations S0 Strategy Energy Environment Expenditure (M ECU) Table 3 presents expenditure as a matrix of project outputs against project objectives. Overall, it shows that about 20% of all expenditure is on institutional reform and about 60% on investment activities; the remainder being classified as other. The cells in the matrix define groupings of projects of similar output and objective. We have identified ten key project groupings (based on total expenditure) which are marked in bold. Collectively these key project groupings account for about 380 MECU or about 70% of total expenditure. Figure 5 compares expenditure on the ten key project groupings showing considerable variation. In five out of ten groups, expenditure is in the range of MECU. For the remaining groupings expenditure ranges from 30 to 80 MECU. Seven out of ten key project groupings are investment projects. The most significant of these in ascending order are investments in physical assets to: improve energy supply; improve waste management and water supply; and to reduce pollution. 8

9 Table 3 9

10 Figure 5: Total expenditure (MECU) by key project grouping 9 Biodiversity assets 8 Pollution investment preparation 7 Pollution assets 6 Waste/water assets 5 Energy savings funds 4 Energy supply demos 3 Energy supply assets 2 Pollution organisations 1 Energy supply organisations 0 Strategies Expenditure (MECU) A further review of the key project groupings in Figure 6 shows some variation in mean project size. In all but two, mean project size is less than 2 MECU and in five cases below 1 MECU. Only in the case of investment in physical assets for improving energy supply is the mean project size above 3 MECU. Figure 6: Average project size (MECU) within key project groupings 9 Biodiversity assets 8 Pollution investment preparation 7 Pollution assets 6 Waste/water assets 5 Energy savings funds 4 Energy supply demos 3 Energy supply assets 2 Pollution organisations 1 Energy supply organisations 0 Strategies Average project expenditure (MECU) Table 4 presents the key project groupings by country in percentage terms. We have shaded those cells where expenditure in a given country appears to be unusually high. A review of Table 4 indicates the following: expenditure on institutional strengthening has been low in all countries with the exception of Slovakia where 15% of spending has been on institutional reform in support of pollution control; Slovenia, the Czech Republic and Slovakia appear to have prioritised expenditure on energy saving funds more than other countries; Estonia, Hungary and Lithuania have prioritised investments in improving waste management and water supply more than other countries; Hungary, Lithuania and Slovakia appear to have the most balanced programme, with expenditure in at least eight of the ten key project groupings; 10

11 Slovenia appears to have the most skewed programme with expenditure in only four out of ten key project groupings. Table 4: Percentage expenditure (%) by country and key project grouping Key Project GroupingBGCRESHULELIPLROSLSRZZAvg 0 Strategies Energy supply organisations Pollution organisations Energy supply assets Energy supply demonstrations Energy saving funds Waste and water assets Pollution assets Pollution investment prep Biodiversity assets CONCLUSIONS The inventory and database which we have compiled provide evidence of the range and balance of Phare support to energy and environment. We have drawn a number of conclusions from analysis of the results of the inventory. Since 1990, the Phare energy and environment programme has provided support to about 800 projects with a total committed expenditure of about 570 MECU. Nearly two-thirds of projects are less than 0.5 MECU is size. Those of more than 1.0 MECU account for about two-thirds of total expenditure. Overall expenditure on the environment sector programme (60%) is significantly greater that the energy sector programme (40%). The evolution of the energy and environment programme shows early peaks in expenditure for both institutional and investment projects, dropping off during the middle years before rising again in the later years. Investments account for 60% of Phare expenditure on energy and environment, as opposed to 20% on institutional strengthening and 10% on other (principally strategic studies and support for PMUs). Projects providing support in the form of physical assets account for about 40% of total expenditure and tend to be the larger projects: 1.5 and 3.5 MECU, as opposed to less than 1.0 MECU for other types of output. Bulgaria, Poland and Hungary have each received more than double the expenditure of any other country. Most countries have spent significantly more on environment than on energy projects, though Bulgaria and Romania have spent more on energy, and Lithuania has spent roughly in equal proportions. 11

12 There are clear differences in the balance of programmes between countries. For example, Bulgaria and Romania have a high proportion of expenditure on investment in assets for energy supply; and the Czech and Slovak Republics have devoted a high proportion of expenditure to investment in pollution reduction and the establishment of energy savings funds. We have identified a total of ten key project groupings representing clusters of projects of similar output and objective. Of these ten the most significant (in terms of expenditure) are investment projects in physical assets addressing: (i) improving energy supply; (ii) improving waste management and water supply; and (iii) reducing pollution. Hungary, Lithuania and Slovakia appear to have the most balanced programmes with expenditure in at least eight of the ten key project groupings, while Slovenia has the most skewed programme with expenditure in only four out of ten. 1.4 IMPLICATIONS FOR PHASE 2 Within the context of this study, the inventory provides a basis against which to select an appropriate project sample for detailed evaluation. The results which we have outlined above have a number of implications for Phase 2. Given that total expenditure on the environment sector is significant greater than the energy sector, it is probable that our project sample should be weighted accordingly. The perception that the Phare programme has moved progressively from critical aid to institutional strengthening to investment is only partly reflected in expenditure allocations. The importance of investment throughout the period, and in terms of total expenditure, suggests that particular attention should be given to this in the evaluation. Given that 70% of total expenditure is accounted for by ten key project groupings, these groupings constitute an appropriate population from which to select our project sample. While there are clear differences between countries in the focus of the programme, the primary focus of evaluation will be the effectiveness and relevance of the Phare energy and environment programmes as a whole, rather than the performance of national project portfolios. 12

13 2 METHODS USED 2.1 OBJECTIVES OF THE INVENTORY The purpose of the inventory was to compile a comprehensive list of the outputs and objectives of environment and energy sector programmes in ten EU candidate member states, as a basis for the selection of a representative sample for evaluation during Phase 2, and to facilitate analysis of the range and balance of the programmes. In defining environment and energy, the scope of our search was limited to national programmes falling within the responsibility of energy and environment Project Management Units (PMUs) in each country, as well as multi-country programmes. Cross-border and horizontal programmes and excluded from the evaluation. 2.2 KEY ACTIVITIES From the start of the project in May, the inventory phase has progressed as follows: May: briefing with DG1A and desk research to compile draft inventory tables based on available Financial Memoranda, Work Programmes, OMAS reports and financial databases; June-July: brief inventory field visits to 10 candidate countries in order to validate inventory tables and assess information availability for Phase 2; August: classification of projects, development of project database, analysis of results, validation of preliminary conclusions with DG1A, and selection of sample for evaluation. The full inventory is voluminous. We have presented it as a separate document (Appendix A to the Inventory Report) also containing a full list of meetings held during the inventory phase and our questionnaire protocol using during interviews. 2.3 DATA COLLECTION Type of data From May to July we assimilated a large amount of data into country-specific tables describing all Phare energy and environment projects in 10 candidate countries, including two multi-country programmes. In compiling the inventory we collected the following data: the name, timing and budget for each Programme; a list of every project and sub-project carried out within each Programme; 13

14 the approximate duration of each project to indicate both the length and temporal position of the project within the study period ( ); and financial data showing amount allocated, committed and disbursed as of May In addition, we collected information on the outputs of each project and subproject as a basis for (i) classifying according to output, and (ii) selecting a sample for detailed evaluation during Phase Data Gathering Process Having prepared draft inventory tables based on a review of project documents available from DG1A in Brussels, field teams (comprising one ERM specialist supported by a local specialist from ERM local offices and the Regional Environmental Centre) visited each candidate country. Country visits generally lasted three to five days depending on the size of the programme. The teams gathered data via one-to-one interviews and analysis of secondary data sources held in-country. Interviews We carried out interviews with PMUs or EU delegation staff using a questionnaire protocol developed by ERM (Appendix A to this report ), focusing on the following areas: validation of our draft inventory tables; the policy context to Phare energy and environment programmes including national policies and Phare funding policy in these sectors; the role of each institution within the project cycle and its relationship to other involved institutions; the type and level of data available for the evaluation stage. The information gathered during the meetings was generally sufficient, though information of disbursements and project duration were sometimes lacking. Lack of information occurred when we interviewed staff with limited or no first hand experience of a given project or programme. In such cases, it was important to review secondary sources. On completion of the country visits, we met all available task managers at DG1A in Brussels in order to validate and discuss our findings Secondary Sources We reviewed the main operational documents identified during discussions with key staff at DG1A, EU Delegations and the PMUs. The two principal documents were the Financial Memoranda and Work Programmes. While Financing Memoranda are a good first reference point, we found that they do not always contain sufficiently comprehensive and up-to-date project information to act as sole sources. Work Programmes, OMAS reports and sometimes project terms of reference were the most useful sources of secondary information to which we referred after the interview stage. 14

15 The PMUs were generally able to provide up-to-date print outs of financial information from the PERSEUS database. This data provides financial allocation, commitment and disbursement on a project by project basis. It also distinguishes between those contracts managed and funded directly from Brussels and those managed locally Data Verification and Synthesis We carried out an iterative process of speaking to PMU staff, reviewing work programmes and re-confirming our interpretation of project outputs and objectives. At the end of the visit, once the inventory tables were completed, we submitted draft tables to the PMU and EU delegation for review and approval. Completed inventory tables are presented in Annex A. We reviewed summary results of the inventory with selected task managers and the evaluation unit at DG1A, in order to obtain early feedback on the methods which we used and an interpretation of emerging trends. 2.4 CLASSIFICATION AND DATA MANAGEMENT We have classified projects according to output and objective, following logical framework terminology. This provides the basis of a matrix within which we can analyse patterns and ultimately select a sample of projects for evaluation. We have defined categories of output and objective in an attempt to reflect the guidance provided in our terms of reference and preliminary discussions/review from DG1A. The categories are as follows: Output Category Code Organisations (O) Pricing (P) Regulations (R) Awareness (A) Physical assets (Y) Demonstrations (D) Investment funds (F) Investment preparation (I) Strategic studies (S) Critical aid (C) Multiple projects (Z) Unknown (?) Objective category Energy savings Improved energy supply Reduced waste and water use Waste services and water supply Pollution reduction Biodiversity conservation Code (C) (S) (C) (S) (P) (B) From the information contained in the inventory tables we have coded each project according to output and objective and entered these details into a database. In some cases, we found projects to have multiple outputs or 15

16 objectives. Occasionally we have had to post a? in the database due to lack of information. We present a sample of the database below and a full print out in Annex A. Sector code Country code Prog. code Proj. code Sub-proj. Code TitleObjective code Output code Commit. (MECU) ENVRO Institutional devt...po1.19 ENVRO Plan for monitoring...po1.19 Having completed the database and generated Table 3 (see Section 1) we were able to define the most important project groupings based on total expenditure. We identified a total of 10 key project groupings which collectively represent the core of the programme, and a suitable population from which to select a sample of projects for evaluation. The key project groupings are presented in Figure 5 (see Section 1). Because all projects in any given cell share similar outputs and objectives, we can expect that they should lead to similar lessons about effectiveness, from which useful recommendations can be generated. 2.5 LIMITATIONS OF THE INVENTORY Inevitably the process described above is subject to certain limitations relating principally to quality of information and to a certain level of judgement/subjectivity that has been necessary. Classification of projects according to output and objective was carried out on the basis of an interpretation of information provided in the inventory tables. Much of the time this was relatively straightforward but occasionally judgement was required. In order to minimise randomness being introduced into the database in this way, classification was carried out by two members of the team only working closely together to ensure consistency in any judgement made. In a number of cases, projects clearly had multiple outputs or objectives. When one of these was clearly dominant, we classified the project according to the dominance output or objective. Otherwise, our approach was to assign the project to a multiple category by which it is effectively excluded from selection in the sample, (except in the case of strategies). In a number of cases, insufficient project level information was available either in Brussels or at the country level, particularly for projects during the early years of Phare. We have been obliged to classify these projects as unknowns. We found information on individual project duration to be very variable, particularly during the early years. This has limited our ability to provide an accurate temporal analysis of energy and environment programmes. As a proxy, we have used the programme date (ie. RO 9105). This will have the effect of producing a more theoretical distribution of projects against time, rather than one based on fact. 16

17 Evaluation of Phare-Financed Energy and Environment Programmes: Appendix A to the Inventory Report August 1998 This report has been prepared by Environmental Resources Management the trading name of Environmental Resources Management Limited, with all reasonable skill, care and diligence within the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk. In line with our company environmental policy we purchase paper for our documents only from ISO certified or EMAS verified manufacturers. This includes paper with the Nordic Environmental Label.

18 CONTENTS This document forms Appendix A to the Inventory Report. It contains important reference material relevant to the inventory, as follows: Appendix A1 - full inventory tables by country and sector; Appendix A2 - records of all meetings held in the 10 candidate countries during compilation of the inventory; Appendix A3 - the questionnaire protocol used by ERM during interviews with EU delegation staff, PMU staff and representatives from relevant government ministries.

19 Appendix 1 Inventory Tables

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26 Estonia

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28 Energy

29 Environment

30 **** TABLE 1 NOT INCLUDED IN INVENTORY **** Table 1: TACIS Programme, 1991 Programme Code: ES 9101 Duration: 1992 Amount: M Project Code Project and sub-project Title 9101 Energy advisor to the Ministry of Industry and Trade Duration A C D Outputs Notes Institutional strengthening through the provision of energy policy advice and training to the government and utilities by the advisor. Start co-ordinating donor funding. Source: OMAS, Desiree, discussion with PIU. Duration data were estimates made by the PIU; and outputs were from the Terms of References.

31 Table 2: General Technical Assistance Facility (GTAF), (energy), 1992 Programme Code: ES Duration: Amount: 0.2 M Project Code Project and sub-project Title Duration A C D Outputs Notes Energy Adviser to the Ministry of Trade and Industry Provision of team leader for the PIU. Groundwork laid for the establishment of a PIU. Continued capacity building through the provision of energy policy advice to the government. Source: OMAS, Desiree, discussion with PIU. Duration data were estimates made by the PIU; and outputs were from the Terms of References.

32 Table 3: General Technical Assistance Facility (GTAF) (energy), 1993 Programme Code: ES Duration: Amount: M Project Code Project and sub-project Title Dration A C D Outputs Notes Project Management Unit Operational PIU assisting the government in policy development (particularly restructuring the energy sector and improving energy efficiency) and enhancement of project programming implementation and co-ordination capacities Energy Database An operational Estonian National Energy Database. The object is to improve the availability of information about the energy sector in Estonia through establishing an energy database. The first phase will evaluate the existing situation concerning energy data according to the EU standards. Based on that experience, an updated energy database, meeting the EU requirements, will be established and implemented. This includes a transfer of skills to database users. The database is to be used by the Estonian Energy Research Institute which will provide information on request to interested government institutions. Database is now in operation and information is still being inputted. Source: OMAS, Desiree, discussion with PIU. Duration data were estimates made by the PIU; and outputs were from the Terms of References.

33 Table 4: Energy Programme, 1994 Programme Code: ES 9404 Expected Duration: 7/94-12/96 Amount: 3.0 M Project Code Project and sub-project Title Duration A C D Outputs Notes Estonian Electricity Sector Restructuring An Action Plan detailing the organisational structure, management, financing and operational arrangements for Eesti Energia (the state monopoly company for electricity generation and distribution). The Plan will be based on an assessment of existing situation and modelling various future scenarios. The Plan was to be agreed with Eesti Energia so recommendations could be adopted, leading to the sector operating in a more commercially viable manner. Eesti Energia is the largest company in Estonia. The study was thus subject to political debate over privatisation. This debate is still going on Elaboration of a Transmission Network Business Plan Energy Conservation Strategy: assessment and development of the Energy Conservation Programme Assistance to Eesti Energia work group to elaborate a business plan for the transmission network The project outputs include: guidelines and procedures to evaluate and rank proposed energy projects tools for monitoring the development of energy conservation programmes data to set priorities for implementing cost effective energy efficiency measures a strategic framework for future energy conservation actions Addendum to above project. Small and complicated and limited output. The objective is for the Strategy to provide state and local authorities with up-to-date tools for the development and monitoring of energy efficiency improvements. The results will be an enhanced local capability to identify, design, monitor and assess the effectiveness of energy conservation programmes.

34 Project Code Project and sub-project Title Duration A C D Outputs Notes Energy Strategy Plan for Estonia Estonia s first Integrated Energy Strategy (IES) proposing means (legal and otherwise) of achieving sector restructuring and investigating future fuel supply options (oil shale vs gas). The project will assist the government in preparing the IES by: assessing the existing situation in the energy sector; investigating various development scenarios using a computer model and to propose to the government an strategy and action plan for the energy sector and its sub-sectors (oil, gas etc) Regional Energy Centres Establishment (equipping and staffing) of three Regional Energy Centres, located throughout Estonia - Rakvere, Vilkandi and Voru, as part of a national network. The aim of the network of RECs is to: assist and train municipalities and companies in the restructuring process and implementation of energy efficiency measures. reduce emission levels and improve the environmental situation through energy conservation measures The RECs will mainly work with local governments in small towns and rural communities. Project completed. Additional contract under 97 programme Institutional development of the energy sector Improved institutional and organisational structure of the energy sector. The project will assist the government in achieving this by analysing the current institutional situation and making recommendations for improving its structure. The study looks at role, objectives, management, performance and staff needs assessment of all relevant government institutions. The recommendations should include proposals for required amendments to legislation to support institutional change and training Standardisation of the energy sector Standardisation of heat load and energy consumption Standard codes of practice in the energy sector in order to fulfil EU directives Development of standardised methods for calculating heat load and energy consumption of buildings. The output is a Draft Standard for Calculating Heat Load and Energy Consumption of Buildings to fulfil EU directives.

35 Project Code Project and sub-project Title Duration A C D Outputs Notes Oil shale study Two main outputs: a test to see if oil shale could be burnt in a fluidized bed combustion (FBC) boiler; and a binding commercial offer to construct a demonstration FBC boiler. The test combustion will be the basis for the design of a new pilot power plant. The commercial offer for the demonstration boiler will be based upon M&O cost estimates for such a boiler. The objective of the project is to assist in the modernisation process of existing shale oil burning boilers in the energy sector and take into account environmental requirements. Results were positive. Source: OMAS, Desiree, discussion with PIU. Duration data were estimates made by the PIU; and outputs were from the Terms of References.

36 Table 5: Energy Programme, 1996 Programme Code: ES 9617 Duration: 6/96-on-going Amount: 2.0 M Project Code Project and sub-project Title Duration A C D Outputs Notes PIU 97-ongoing??? PIU to assist the energy sector in Estonia during the restructuring process for accession to the EU. The PIU involves EU and local experts to provide technical assistance to the Minister and relevant officials in developing policies, strategies and plans concerning energy supply and efficiency. 75% complete (approx) extension contract Training staff in energy sector 97-ongoing Training courses for utilities, local government and state departments to assist the energy sector in its transition to the market based economy and accelerate the integration process with EU. 60 people selected for the training, in economics, management and energy planning % complete (approx) Investment Preparation Facility Post implementation performance analysis for energy investments Metering Plan for electricity sector 98-ongoing Assistance to municipalities to prepare energy efficiency investments. The project is implemented by the Regional Energy Centres. They will develop guidelines for supporting local activities and provide technical assistance to the local authorities for energy planning activities and following the guidelines Continued assistance to the government in developing the Energy Saving Program. Review projects implemented to-date and assist in identifying goals for future energy investments combined with knowledge transfer from other countries experience in this field A metering plan for electricity sector including generation, transmission, export - import and distribution of both active and reactive power. This plan is to serve as a basis of the investment program for renovating the metering system. Within the framework of this project, the needed know how/technology transfer for the renovation is to be provided by a demonstration project. 20% complete (approx) 99% complete (approx) 50% complete (approx) Promoting decentralisation of the grid system and institutional restructuring of Eesti Energia. Source: Desiree, discussion with PIU, summary project data sheets, PIU final report, 97. Note: disbursement does not necessarily reflect the percentage a project is complete.

37 Table 1: General Technical Assistance Facility (GTAF), (environment component), 1992 Programme Code: ES Duration:8/92-12/93 Amount: 0.32 M Project Code Project and sub-project Title Duration A C D Outputs Notes TA to MoE (PIU) 10/92-12/ Operational PIU providing environmental policy advice to the Ministry, particularly focused on environmental funds, legislation and environmental liability Source: draft OMAS, discussion with environment PIU. Financial data: Project Financial Breakdown Data Sheet (PIU) provide committed financial data. Allocated and Disbursed financial data were not available. Need to request Desiree spreadsheets from Brussels. Duration: Programme/Project Status Data Sheet (PIU)

38 Table 2: General Technical Assistance Facility (GTAF) (environment), 1993 Programme Code: ES Duration: 1/93-12/95 Amount: 0.41 M Project Code Project and sub-project Title Duration A C D Outputs Notes Oil Shale Mine (final design) 4/84-2/ Design of a model project (a farm) to demonstrate options for the reclamation of disturbed soil (from oil shale mining) to farmers and the MOE. Subsequent contract for supplying equipment for reclamation Institutional Support to MOE for National Environmental Strategy (NES) 2/95-8/ A National Environment Strategy (NES) providing the first national framework of priorities. The project provided technical expertise to help with the strategies formulation. NES approved by Parliament in The NES formed the basis for the NEAP (implementation stage of the process). Source: draft OMAS, discussion with environment PIU. Financial data: Project Financial Breakdown Data Sheet (PIU) provide committed financial data. Allocated and Disbursed financial data were not available. Need to request Desire spreadsheets from Brussels. Duration: Programme/Project Status Data Sheet (PIU)

39 Table 3: Pollution Monitoring and Enforcement Programme, 1994 Programme Code: ES 9408 Duration: 12/94-on-going Amount: 2.5 M Project Code Project and sub-project Title Duration A C D Outputs Notes Master Plan for Pollution Monitoring and Enforcement (MPME) 2/96-on-going Establishment of an operational PIU at the Environmental Information Centre to co-ordinate the Master Plan preparation. Project included training of new PIU staff in management and monitoring and enforcement skills. A Masterplan for Pollution Monitoring and Enforcement was produced by the PIU. The development of the Masterplan included assessing national capacity, legislation and policy and made recommendations on how to strengthen the system and meet EU standards. The PIU was also responsible for the subsequent implementation of 4 projects identified in the Masterplan (through providing assistance in project design, tendering, evaluation and supervision). The projects are detailed below. The plan was adopted in April projects were identified in the Masterplan for funding. Phare funded 4 of them (presented below). Other were funded by other donor agencies Improvement of data use and data management in environmental monitoring programme (DADAM) 10/97-8/ ? Objective is to increase and improve the Environmental Information Centre s use of environmental monitoring data for management and policy/system development. Output includes tools which EIC can use to interpret data - eg environmental indicators, water quality objectives. The project included TA and equipment. Project nearly complete /03 Improvement of environmental monitoring and enforcement capabilities (ENMOCAP) 11/97-9/ ? Objective is to help the Environmental Inspectorate improve its environmental monitoring and enforcement capacity. Outputs included guidelines for monitoring; pilot tests of the guidelines; and an integrated permit database. The components include training of the Environment Inspectorate staff in wastewater, air and landfill monitoring. Project nearly complete Sampling and laboratory equipment supply (SALES) Mobile unit for air emission monitoring (MOBAIR) 11/97-6/ ? The objective is improved national environmental quality monitoring through the provision of laboratory and field equipment to government environmental laboratories and inspectorates and the provision of hydrometric monitoring stations to the Institute of Hydrology, which are all part of a national monitoring network. Project also provides training for use of equipment.. 11/97-6/ ? Mobile air monitoring unit to be used by the Environmental Inspectorate for air quality testing with the objective of improving air pollution control. Project nearly complete Project nearly complete Source: draft OMAS, discussion with environment PIU. Financial data: Project Financial Breakdown Data Sheet (PIU) provide committed financial data. Allocated and Disbursed financial data were not available. Need to request Desiree spreadsheets from Brussels.

40 Duration: Programme/Project Status Data Sheet (PIU)

41 Table 4: Infrastructure Development Programme (environment), 1995 Programme Code: ES Duration: 8/95 on-going Amount: 3.5 M Project Code Project and sub-project Title Duration A C D Outputs Notes Reduction of pollution in oil shale mining areas - Water Resource Management (REDOS I) 11/95-11/ A strategy for water management in north east Estonia (an old industrial area with oil shale pollution and very poor water quality). The strategy put forward a set of options for the following: strengthening public management minimising water use in industries water management and reduction of abstraction technical rehabilitation of water distribution systems Being implemented under RADOS II National Environmental Action Plan (NEAP) 3/97-5/ A NEAP through provision of TA to the MOE in its formulation. The process is reported to have worked very well 9504? Establishment of a GIS based biodiversity monitoring system Provision of equipment for Matsalu Nature Reserve 1/98-12/ ? A GIS based Biodiversity Monitoring System. Project includes a biodiversity monitoring masterplan, the establishment of the Estonian biodiversity monitoring system and a GIS based biodiversity information system. 1/98-1/ Provision of equipment (tractor, mowers etc) and marine monitoring equipment to Matsalu Reserve. Part of Phare commitment under the World Bank Haapsalu-Matsalu environment project. 30% of budget for equipment procurement Tendering scheduled for summer Small municipalities environment project - TA 6/96-(6/99) 0.30? Technical assistance to the Estonian Water Company to design water and sewer network rehabilitation in 3 towns (out of the 13 being financed under the EBRD loan). Training component included. The consultants were to act as a PIU and drafted the TORs etc for the 2 following equipment provision projects. SMEP is part of a $50 EBRD loan. Phare contributed 2.5 M as cofinanciers. Includes the 2 projects below Small municipalities environment project - Equipment and services 8/97-10/ ? Improved cleaning and inspection of sewers in the 3 towns by providing municipalities with equipment for cleaning and detecting leakage from water mains. Included cleaning of the sewers and showing local staff how to use the hi-tech equipment to clean the sewers (acting as a demonstration and technology transfer project). 70% of budget for equipment procurement

42 Project Code Project and sub-project Title Duration A C D Outputs Notes Small municipalities environment project - Materials and equipment 12/97-12/ ? Water pipeline rehabilitation in small towns through provision of equipment and materials to municipalities. Municipalities to pay for the installation of the equipment as local contribution to the project Civil engineering and project preparation support (APSU interim contract) 1/98-3/ Continued running of the PIU before launch of the APSU through provision of a bridging loan. Source: draft OMAS, discussion with environment PIU. Financial data: Project Financial Breakdown Data Sheet (PIU) provide committed financial data. Allocated and Disbursed financial data were not available. Need to request Desiree spreadsheets from Brussels. Duration: Programme/Project Status Data Sheet (PIU)

43 Table 5: Environment Programme, 1996 Programme Code: ES 9616 Duration: 6/96-on-going Amount: 1.0 M Project Code Project and sub-project Title Duration A C D Outputs Notes Civil engineering and project preparation support (contract addendum) 4/96-12/ Addendum to PIU management contract / Accession Programme Support Unit (APSU) 4/98-3/ ? Operational APSU, supervising the accession process and assisting with design, monitoring and supervision of Phare environmental projects. Source: draft OMAS, discussion with environment PIU. Financial data: Project Financial Breakdown Data Sheet (PIU) provide committed financial data. Allocated and Disbursed financial data were not available. Need to request Desiree spreadsheets from Brussels. Duration: Programme/Project Status Data Sheet (PIU)

44 Table 6: Infrastructure Programme (environment), 1997 Programme Code: ES Duration: 12/96-on-going Amount: 3.3 MECU Project Code Project and sub-project Title Duration A C D Outputs Notes Implementation of the Water Resource Management Plan for Ida-Virumaa region (REDOS II - TA) 3/98-11/ ? Implementation of key recommendations of the REDOS project ( ) through the provision of TA for improving the water supply network in priority areas of the Ida-Virumaa region. Output is a series of design documents (solutions) for the water and wastewater infrastructure systems for the area and a series of technical specifications for the equipment needed (to be purchased in the project below) REDOS II - Materials and Works Keila water and waste water project (equipment and materials) Implementation of key recommendations of the REDOS project ( ) through the provision of equipment for improving the water supply network in priority areas of the Ida-Virumaa region Reconstruction of the water supply network in Keila city through the provision of equipment and materials for construction and reconstruction for the water supply network. Expected to be contracted by end of Contract just signed. Source: draft OMAS, discussion with environment PIU. Financial data: Project Financial Breakdown Data Sheet (PIU) provide committed financial data. Allocated and Disbursed financial data were not available. Need to request Desiree spreadsheets from Brussels. Duration: Programme/Project Status Data Sheet (PIU)

45 Latvia

46

47 Energy

48 Environment

49 Table 1: General Technical Assistance Facility (GTAF) (Energy component), 1993 Programme Code: LE 9302 Duration: 9/94-11/95 Amount:? Project Code Project and sub-project Title Duration A C D Outputs Notes 9302 PIU for energy 9/94-11/95??? Assistance and training to the energy department and utilities to support energy sector restructuring. The PIU once established also to manage future projects. Source: Financial Memorandum, OMAS, discussion with PMU, PERSEUS database.

50 Table 2: Infrastructure Development Programme (energy component), 1995 Programme Code: LE 9503 Duration:11/95-on-going Amount: 2.15 M Project Code Project and sub-project Title Duration A C D Outputs Notes Licensing of entrepreneurial activities in the energy sector 6/96-12/ ? 0.19 Implementation of certain provisions of the Energy Regulatory Law. The TA is to assist the Energy Regulatory Board to implement licensing procedures (preparing operating documents and procedures). The licenses allow power companies to provide energy supply PIU energy (95 contract) 11/95-2/97??? Coordination of foreign aid flow in Latvia. Institutional strengthening through policy advise from the long term advisor and training by short term advisors to Energy Department staff on technical and management issues related to energy sector restructuring. Also assistance in project preparation, application for funding, draft TORs etc and to act as a transfer of knowledge of EU practices and legislation to Ministry staff. Companies must demonstrate fair operation and charging to obtain licenses. A continuation of activities under the 1993 budget.? Feasibility study for establishment of Energy Fund 9/6-9/ A study for options and needs for an energy efficiency fund. The study identified areas for energy savings and investment needs.? Deposit to Energy Fund 6/98-ongoing Setting up of the Fund. Working on tender documents to select a bank to manage the Fund. The funds in this project are also for disbursement to start providing soft loans for the energy efficiency projects Peat extraction, processing and utilisation in energy sector Commercial accounting systems for Latvenergo? Emergency situation management 3/97-4/ ? 0.35 A study identifying the extent to which energy supply could be provided by peat in order to try to national energy sources. The study included an identification of potential environmental problems and possible investment opportunities to exploit peat resources. 1/97-6/ ? 0.08 Implementation of international accountancy standards in the national power company Latvenergo to be used during daily work practices. The project is to increase the transparency of the company to comply with EU directives and promote its further commercialisation. 6/97-6/ ? 0.01 A feasibility study to identify what regulations need to be drafted to secure oil supply during supply crisis. The project will develop an emergency planning system. Both the planning system and the regulations are to fulfil EU directives.