Northern Dimension Environmental Partnership

Transcription

1 -opportunities for Finnish companies Jaakko Henttonen,, NDEP Manager EBRD St Petersburg Turku 19 May 2011

2 Belarus and Russia need more effective municipal wastewater treatment

3 40% of Belarus within the Baltic Sea catchment area; 7% of phosphorous load Neman Western Dvina Poletsk Vitebsk Bug Grodno Brest Minsk

4 Common issues for EU Strategy for Baltic Sea Region and NDEP Reduction of nutrient inputs into Baltic Sea Intensive cooperation with Russia following adoption of the HELCOM National Action Plan Development of working relations with Belarus Ensuring adequate funds for priority actions

5 NDEP Support Fund in 2011 Nuclear 44m European Union 40m 40m Russia France 40m Canada 20m 10m Germany 10m 25.9m Sweden 16m Finland 2m UK 25.5m 10m Denmark 1m 2.1m Norway 10m Netherlands 10m Belgium 0.5m 1m Belarus 149m 159m 308m

6 London 2 December 2011 London 16 June 2011 St Petersburg 11 May 2011 London

7 (NDEP) key points NDEP is recognised as effective model for international cooperation based on co-financing structure by loans, grants and local funds; extended until 2017 EBRD, NIB, NEFCO, EIB are the Implementing Agencies of NDEP projects to provide the inevitable loans for financial packages and to prepare project concepts NDEP delivers real projects million committed for 23 non-nuclear projects leveraging 3.5 billion in total investment. Due to intensive project development new funds are being sought by Assembly recommendation

8 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

9 NDEP Objectives for 2011 (1) In Russia For wastewater treatment focus on smaller municipalities following Russian National Implementation Plan for the BSAP Investments required in the Arctic/Barents Region- Murmansk upfront Projects for energy efficiency highly required and emphasized also in Russia/EU context; DH and public buildings as primary client sectors with great savings potentials Solid waste management lacking investments; recycling, reuse and collection of landfill gases underdeveloped

10 In Belarus NDEP objectives for 2011 (2) Belarus joined NDEP in 2009 with a pledge of EUR 1 million. The NDEP contributors agreed in Dec 2010 to support projects in Brest, Grodno and Vitebsk with EUR 6 million grant Present loans prepared by NIB and EBRD amount to EUR 70m for wastewater investments. HELCOM targets for phosphorous reductions for Belarus: 1,740 t/a. NDEP projects in Vitebsk, Grodno and Brest will result in P- reductions of 336 t/a A separate envelope for contributions for Belarus will be created within the NDEP Support Fund

11 How to finance a municipal project - lessons learnt Committed owner is needed to forge agreements with authorities as well as civil society Affordable financial package; focus on critical elements for initial phases Combination of local, national and international financing sources supports transparency International procurement rules will apply for projects with IFI and NDEP funding External experienced project adviser and supervision is imperative for successful implementation

12 NDEP Projects in 2011 (in million EUR) Grant Loan Total 1. St Petersburg SW Wastewater Treatment plant completed in 2005; NIB St Petersburg Flood Barrier completed in 2010; EBRD St Petersburg Incinerator completed in 2010;EBRD Leningrad Oblast Wastewater Treatment close to completion; NIB Komi Syktyvkar Wastewater Treatment close to completion; EBRD Archangelsk Water/Wastewater Treatment close to completion; EBRD Vologda Water/Wastewater Treatment under implementation; EBRD Kaliningrad NDF Project Implementation Unit active; EBRD Kaliningrad Water/Wastewater under implementation; EBRD/NIB Kaliningrad District Heating under implementation; EBRD Neva Programme under implementation; NIB/EBRD/EIB Novgorod Water/Wastewater under implementation; NIB Sosnovy Bor Water/Wastewater tendering in process; NEFCO St Petersburg 10 Suburban WWTP tendering in process; NEFCO Vologda District Heating Rehabilitation tendering to start soon; EBRD PIU for Poultry Farms Grant under preparation; NEFCO Petrozavodsk W&WWT- Grant under preparation; NEFCO/NIB Petrozavodsk Solid Waste Management - Grant negotiated; NEFCO Pskov Water/Wastewater - Grant signed, tendering; EBRD Murmansk Water/Wastewater - Grant under preparation; EBRD Grodno Water/Wastewater - Grant under preparation; NIB Brest Water/Wastewater - Grant under preparation; NIB Vitebsk Water/Wastewater - Grant under preparation; EBRD Total 117 million 665 million 3,3 billion

13 St Petersburg Southwest Wastewater Treatment Plant 192.7m Sida 6% Finland 5% NDEP 3% NCC, Skanska, YIT 4.2% NEFCO 2% EU Tacis 13% Vodokanal 3.2% Vodokanal & City of StP 10% NIB 23.4% Equity Swedfund & Finnfund 4% EIB 8% EBRD 18% Loans Grants

14 St Petersburg Neva Program 186.9m IFI Loans NIB, EBRD,EIB 32% NDEP 13% SWE FIN 9% Russian Funds (Federation, City & Vodokanal) 46%

15 Opportunities for Finnish companies Finnish bilateral programs to promote brand initially Co-financed projects with Finnish inputs International financial institutions with Finnish shares; EBRD, NIB, NEFCO, EIB Promotion of own strengths through consortiums for tenders Local visibility in Russia most crucial for relationships; political contacts still feasible

16 For more on NDEP Please contact: Jaakko Henttonen, NDEP Fund Director EBRD RO, Nevsky Prospekt 25, St Petersburg Tel ; Fax: OR Ewa Manik, Fund Implementation Analyst EBRD, One Exchange Square, London EC2A 2JN Tel , fax Or visit: