Water Resources, Economic Growth and Environmental Sustainability

The Case of Kaliningrad Oblast and its NeighboursBDF Summit 2011

Jakob Granit, Director

Knowledge Services, SIWI

Andreas Lindström, SIWI

Vladimir Dmitrevsky, NDF

Lina Kramen, NDF

Tomasz Okruszko, GWP-PL

Janusz Kindler, GWP-PL

Bernardas Paukstys, GWP-LT

Björn Guterstam, GWP HQ

Nataliy Smorodinskaya, Russian

Acacemy of Sciences

Lennart Sorby, Sea and Water

Authority Swe

Mats Hellström, Färgfabriken

Presentation outline

- Context- Baltic Sea Basin, Kaliningrad Oblast,

Lithuania, Poland & other neighbors

- Benefits from good water management & development

- Ways foreward to realize benefits

The Kaliningrad Oblast and Surrounding RegionThe Kaliningrad Oblast and Surrounding Region

Common Challenges to the Baltic Sea as a Regional

Public Good

• Regional transport

• Socio-economical development and impacts on water systems

• Eutrophication

– Diffuse sources: energy production,transport and agriculture

– Dead sea bottoms & ecosystems threats

– Coastal water degradation

• Over fishing

• ”Old sins” – garbage and ammunition dumps from WW1 & 2

• Meeting energy demand

• Climate change

Neman River

• Make up 88% of annual surface water flow in the Kaliningrad Oblast

• The Curonian lagoon mainly receives wastewater from the cities of Sovetsk, Neman and Krasnoznamensk

• Is affected by agricultural and urban pollution when entering the territory of the Oblast

• Catches of bream, eel, pikeperch have decreased in the Curonian lagoon

• Transboundary system

• EU Member and non-member states

Neman River Basin

Belaruse, Lithuania, Poland, Russia Kaliningrad Oblast (Latvia)

Pregola River Basin

Poland, Russia Kaliningrad Oblast, (Lithuania)

Pregola River

• Make up 11% of annual surface water flow in the Kaliningrad Oblast

• The Pregola is heavily polluted; especially in its lower reaches

– Vistula lagoon

– Large loads of suspended and organic substances

• Wastewater is discharged

– emergency outlets, city communal sewerage, rainwater and industrial wastewater

• The self-cleaning capacity of the river has been lost

Kaliningrad Oblast Water Challenges*

*Integrated information on the status of the water resources is hard to come by for surface and groundwater

Benefits from Good Water Management 1 Waters Role in Socio- Economic Development- Health and Wellbeing

• Kaliningrad Oblast is lagging behind in terms of HDI compared to other Russian regions and the EU countries

• HDI = life expectancy, access to knowledge, standard of living

• Disease often connected to inadequate water supply and treatment systems

• Absence because of water borne disease means days lost in work-and educational sectors

Benefits from Good Water Management 2Waters Role in Socio- Economic Development- Productive Uses

Kaliningrad Oblast: the structure of GRP by sectors, 2008. Source:

RosStat, National Accounts, 2010 (www.gks.ru)

• Water is a key component in several productive sectors

– Metal-, wood,- energy,- chemical –and food/beverage

• The agricultural sector can benefit greatly from diversification– Farming

– The fishery sector (including recreational fishing)

Benefits from Good Water Management 3Waters Role in Socio- Economic Development- Productive Uses

Benefits from Good Water Management 4Waters Role in Socio- Economic Development- Tourism

• The natural conditions form a strong base to develop a water-related tourism/ recreational industry, shipping, navigation

• Ideal gateway to Russia & Baltic Sea Region for domestic and foreign tourists

• Potential unused because of polluted environment, poor water quality

• Neighbouring countries demonstrate significant value gained in coastal & lake tourism

Benefits from Good Water Management 5Regional Collaboration

• Cooperation to address Baltic environment issues has a long history

– HELCOM (BSAP), Northern Dimension

– Baltic Sea Region Strategy 2009, Water Framework Directive and Marine Strategy Directive

• Champion improving the freshwater and coastal zone ecosystems for economic gains

• Kaliningrad and Russia can demonstrate leadership in managing a regional public good

Conclusions Kaliningrad Oblast and its

Neighbours

•The strategic water resources assets are to a large extend transboundary

•The Russian Federation has a good water law– water management is fragmented between many institutions

•Examples of effective water management in the Baltic Sea Region countries demonstrate major health, economic and ecosystem benefits

– maintain high environmental status does not hurt economy

•Health, tourism, productive industries and regional leadership are areas that would benefit from improved water management in Kaliningrad Oblast

– deliver jobs and value

•EU Water Framework Directive (WFD) implementation by Lithuania and Poland can support transboundary river basin planning and investment

– Pregola and Neman river basins

Steps to Increasing Investment in Water

Resources Management and Development

1. Classification and characterization of the water resources assets and their use– In accordance with the Russian Water Act and the EU Water Framework

Directive – Make use of HELCOM NIP and other investment identification processes– All riparians in the Neman and Pregola river basins in partnership

• Include key stakeholders

2. Strategic water resources planning including monitoring and evaluation programmes

– Strategic basin planning (management and development) in the Kaliningrad Olbast enclave as a first step with EU neighbours Poland and Lithuania

– Identify investment opportunties– Economic cost benefit analysis of interventions

3. Secure investment financing to deliver results– Build investment appetite from both public and private sector investors in water

related goods and services through outreach activities

How?

• Build political commitment from Russia at federal level, Kaliningrad Oblast, Lithuania and Poland as a first step– High level meetings

• Secure investment planning phase funding through a multi-country project– Utilize EU structural funds such as:

• European Neighbourhood and Partnership Program (ENPI)/Baltic Sea Region Program; Northern Dimension Environmental Partnership (NDEP); Nordic Investment Bank (NIB)/Nordic Investment Finance Corporation (NEFCO); EBRD & other IFIs

• National co-funding

• Build commercial interests from public/private corporations