GEF Partnership on the Black Sea - Danube Basin

GEF PARTNERSHIP ON THE BLACK SEA - DANUBE BASIN

An example of GEF leveraging regional stakeholder support for the clean-up of a common water body

The Black Sea

• Connected to the Mediterranean Sea by narrow (700m) and shallow (70m) Bosphorus Strait

• Depth exceeds 2km• Replenishment of bottom waters can take

hundreds of years• Largest natural anoxic basin in the world due to bacteria at bottom• Virtually dead below a depth of about 180m• Surface waters support rich and diverse marine life • Supports livelihoods of millions through fisheries, tourism and transportation route

Degradation of the Black Sea

• Catastrophic decline of ecosystem in recent three decades due to: – increased loads of nutrients from rivers– raw sewage, heavy metals, solid waste

from coastal cities and oil spills– overexploitation of fish stocks– invasion of alien species Mnemiopsis leidyi

• Serious consequences for biodiversity, public health, fisheries, tourism and amenity values

The Black Sea Basin

• Almost 1/3 of the entire land area of continental Europe drains into the Black Sea – Danube, Dnieper, and Don Rivers– 17 countries– 13 capital cities – 160 million persons– Intensively cultivated agricultural land

• Main sources and loads of nutrients– International rivers (229,000 t/y N; 40,000 t/y P)– Domestic and industrial point sources (148,000 t/y

N; 8,700 t/y P)– National rivers (15,000 t/y N; 2,700 t/y P)

GEF SUPPORT

• Preparation work (completed):Environmental Program for the DanubeBlack Sea Environment Program

Transboundary Diagnostic AnalysisStrategic Action Plans

• Implementation Process:WB: Investment Fund for Nutrient Reduction (US$70M)UNDP/UNEP: regional capacity building projects (US$25M)EBRD: Slovenia Pollution Reduction Project (US$10M)UNIDO: Transfer of Env. Sound Technology (US$1M)UNDP: Building Env. Citizenship in the Danube (US$ 0.75M)

World Bank Standard Operations Practice

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Value-added of GEF Partnership

• US$95M over several tranches will leverage US$180M of donor funds

• Catalytic effect: DABLAS as channel of donor funds– US$235million/year of EU ISPA and associated

country funds to municipal hotspots in five accession countries over 4 years

• Countries have access to international best practice and expertise

Partnership Investment ProjectsTitle GEF

Grant Co-Funding Leveraged

Ratio

(GEF:Other)

Under Implementation

Bulgaria Wetlands Restoration and Nutrient Reduction 7.50 6.00 1 : 0.8

Romania Agricultural Pollution Control 5.15 5.65 1 : 2.0

Under Preparation

Croatia Nutrient Reduction 4.00 8.00 1 : 2.0

Hungary Nutrient Reduction 9.70 19.00 1 : 2.0

Moldova Agricultural Pollution Control 5.00 40.00 1 : 8.0

Moldova Rural Investment Support Services and APC 2.00 12.00 1 : 6.0

Russia Krasnodar Agricultural Pollution Control 5.00 7.00 1 : 1.4

Russia Rostov Reduction of Nutrient Discharges and Methane Emissions

10.00 21.80 1 : 2.2

Slovenia Pollution Reduction (EBRD) 10.00 45.00 1 : 4.5

Turkey Watershed Rehabilitation and APC 6.00 53.00 1 : 8.8

Ukraine Integrated Coastal Zone Management 4.00 8.00 1 : 2.0

Ukraine Azov Black Sea Corridor Biodiversity Conservation - APC Comp.

0.84 8.44 1 : 10

Total 69.19 233.89 1 : 3.4

Case studies of different uses of GEF grant

• TURKEY - Integrated approach to agricultural pollution control

• SLOVENIA - Financial intermediation for reduced hazardous discharges

• UKRAINE - Inclusion of environment on the agenda of cash strapped local governments

• ROMANIA – Health benefits help leverage local contributions for nutrient reduction

• VARIOUS - Policy and legal revisions• ALL - Awareness Raising

TURKEY – Integrated approach to agricultural pollution control

• Weak government approach to reducing NPS nutrient pollution:– No concerted effort– Lack laboratory capacity – Lack coordination among relevant agencies

• But, good experience with watershed rehabilitation:– Participatory approach addressing land degradation in upper watersheds

and cross sectoral cooperation among rural services agencies.

• GEF funds used to:– Build capacity – Extend cooperation to environmental agencies– Enable extension of the successful integrated microcatchment

management approach to lower watersheds in the Black Sea region

SLOVENIA – Financial intermediation for investments leading to reduced discharges

• High risk loans for small/medium municipalities and industries for improved production and treatment technologies– Financial Intermediaries do not have capacity for

environmental assessment of sub-projects

• GEF grant provides:– Incentive for FIs to engage in such activities – US$45million to government from EBRD for on-

lending to fund subprojects

UKRAINE – Inclusion of environment in cash-strapped local

government’s agenda• Difficult economic conditions and pressing

social problems – environment not a priority on local policy makers’

agendas

• GEF grant funds:– investments in environmental rehabilitation

financially feasible – triggered policy reforms leading to reduction of

wastewater spills in the Black Sea

ROMANIA – Health benefits help leverage local contributions for

nutrient reduction • Health effects and nutrient leakages to the

groundwater due to poor manure management

• GEF funds leveraged in-kind and cash contribution (appr. US$ 3 million) :– Central Government– USAID– Farmers– Calarasi county government

VARIOUS – Policy and legal reforms

Country Policy / Legal Reform

Moldova, Romania,

Turkey

Harmonization with EU Dangerous Substances Directive (Tur. and Mol. only) and Nitrates Directive

Adoption of Code of Good Agricultural Practices

Moldova Development of Water Quality Management Plan for Moldova –Ukraine Dnister River Basin

Russia Phase-out of phosphate containing detergent use in households in Rostov City

Ukraine Development of a Coastal Zone Management Plan and associated policy and legal framework

ALL COUNTRIES – Awareness raising

• Partnership Website:www.worldbank.org/blacksea-danube

• Regional Workshop on Agricultural Pollution Control – Good Practices (Poland, Sept. 2002)

• Distance Learning Network for the Black Sea/Danube Basin for efficient exchange of experiences/dissemination of information– First module: Network for Environmentally Friendly

Agriculture in the Danube/Black Sea Basin

Conclusions• Catalytic effect demonstrated• Many successes already achieved• Creative, innovative technologies, management

practices and financing schemes

• Project pipeline robust: governments and donors on board

• Likely reduction in nutrients significant

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