Jaakko Henttonen, NDEP ManagerJaakko Henttonen, NDEP ManagerEBRD St Petersburg EBRD St Petersburg
EU Baltic Sea Strategy and EU Baltic Sea Strategy and the Northern Dimensionthe Northern Dimension
1919thth Baltic Sea Parliamentary Baltic Sea Parliamentary ConferenceConference
Mariehamn, 29-31 August 2010Mariehamn, 29-31 August 2010
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
Common issues for EU Strategy for Baltic Common issues for EU Strategy for Baltic Sea Region and NDEPSea 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
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
Background: Plankton blooms in 2002
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
Baltic states, Poland and Belarus are also part of the Northern Dimension
► More than 50% of phosphorous load into the Baltic Sea from Poland ► Belarus and Russia need more effective municipal wastewater treatment
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
Belarus is part of the Baltic Sea catchment area
Western Dvina
Vitebsk●●
Grodno
Brest
Poletsk
Minsk
●
● ●
Neman
Bug
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
Locations 2Locations 2
Map of 17 Poultry Farms in Leningrad Oblast
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
NDEP Environmental Projects in 2010 for
the Baltic Sea Region IFI Loan NDEP
Grant Total cost
PROJECTS COMPLETED:
1 St Petersburg Southwestern Wastewater Plant €96.55m €5.8m €193.6m
2 St Petersburg Northern Sludge Incinerator €58.18m €6.35m €90.4m
3 St Petersburg Flood Protection Barrier €277.5m €1m €2,000m
PROJECTS UNDER IMPLEMENTATION:
4 Leningrad Oblast Wastewater System Rehabilitation €5.25m €4m €23.2m
5 Kaliningrad Project Implementation Unit n/a €3m €3.8m
6 Kaliningrad District Heating Rehabilitation €12m €7.3m €21.8m
7 Kaliningrad Water/Wastewater Plant Construction €23.53m €10m €110m
8 Novgorod Water/Wastewater Rehabilitation €7m €3m €17.1m
9 Sosnovy Bor Wastewater Treatment Rehabilitation €0.75m €0.5m €3.3m
10 St Petersburg Neva Programme €60m €24m €563m
11 St Petersburg Ten Suburban Wastewater Plants €5m €3.75m 16m
PROJECTS TO BE SIGNED:
12 PIU for Agricultural waste in Leningrad oblast n/a €2m €3.5m
13 Petrozavodsk Water/Wastewater Rehabilitation €11m €5m €32m
TOTAL €556.76m €75.5m €3,078m
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
Northern Dimension Environmental Northern Dimension Environmental Partnership (NDEP) – key pointsPartnership (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 - €112 million committed for 22 non-nuclear projects leveraging €3.5 billion in total investment; Present non-committed balance ca EUR15 million.
Due to intensive project development new funds will be sought by the NDEP Steering Group shortly
NDEP Support Fund in 2010Environmental Nuclear
€30m European Union €40m
€40m Russia
France €40m
Canada €20m
€10m Germany €10m
€18.9m Sweden
€16m Finland €2m
UK €23.6m
€10m Denmark €1m
€1.4m Norway €10m
Netherlands €10m
Belgium €0.5m
€1m Belarus
€127.3m €157.1m
€284.4m
•London •London 3 Dec 2010•London 3 2010
8 October 2010 Minsk
3 December 2010 London
9 April 2010 London
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
Sosnovyi Bor Municipal Water and Sosnovyi Bor Municipal Water and Wastewater Rehabilitation € 3.3mWastewater Rehabilitation € 3.3m
NDEP17%
Finland23%
NEFCO26%
Local funding
34%
Equity
Loans
Grants
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St Petersburg Neva Program € 186.9mSt Petersburg Neva Program € 186.9m
IFI LoansNIB,
EBRD,EIB32%
Russian Funds
(Federation, City &
Vodokanal)
46%
SWEFIN9%
NDEP13%
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
Kaliningrad Water and Wastewater Kaliningrad Water and Wastewater Rehabilitation - €110mRehabilitation - €110m
Sida & DEPA17%
Federal Target Funds40%
Local funding
9%
EBRD & NIB24%
NDEP10%
Equity
Loans
Grants
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Environmental Benefits of NDEPEnvironmental Benefits of NDEP
Once implemented, the 16 environmental window projects will cut the pollution load by:
Phosphorous – 1,840 tonnes per year
Nitrogen – 5,568 tonnes per year
BOD (Biological Oxygen Demand) – 32,284 tonnes per year
SO2 – 2,680 tonnes per year
CO2 - 351,000 tonnes per year
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Other benefitsOther 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 self-financing through full cost recovery
Northern Dimension Northern Dimension Environmental PartnershipEnvironmental Partnership
South-western Wastewater Treatment Plant South-western Wastewater Treatment Plant in St Petersburgin St Petersburg
Case illustrationCase illustration
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
ST. PETERSBURG - SOUTHWEST WASTEWATER
TREATMENT PLANT (SWTP) in 2002
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ST. PETERSBURG - SOUTHWEST WASTEWATER
TREATMENT PLANT (SWTP) in 2005
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Inauguration September 22, 2005
ST. PETERSBURG – INAUGURATION OF THE SOUTHWEST
WASTEWATER TREATMENT PLANT (SWTP)
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Main Components:
- Wastewater treatment plant EUR 149 million
- Inlet pipeline EUR 15 million
- Sludge incineration plant EUR 30 million (ready spring 2007)
Total cost of project: EUR 194 million
ST. PETERSBURG
SOUTHWEST WASTEWATER TREATMENT PLANT (SWTP)
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
Environmental Effects: Reduction of nutrient to Gulf of Finland:
- BOD 16.600 tons/year
- Phosphorus 360 tonnes/year
- Nitrogen 2.200 tonnes/year
Enough treatment capacity for treatment of all municipal wastewater
After SWTP, approx. 85% of the City of St. Petersburg municipal wastewater is treated
ST. PETERSBURG SOUTHWEST WASTEWATER TREATMENT PLANT (SWTP)
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SWTP treatment resultsSWTP treatment results
Parameter Concentration in influent,
mg/l
Concentration in effluent,
mg/l
Reduction %
BOD5 245 3.2 98.7
Ptot 4.8 0.24 95.0
Ntot 29 6.7 76.9
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SWTP nitrogen reductionSWTP nitrogen reduction
UZOS Effluent total nitrogen concentration (mg/l) and reduction (%)
0
10
1/7
2/7
3/7
4/7
5/7
6/7
7/7
8/7
9/7
10
/7
11
/7
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/7
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/7
31
/7
Year 2008
Eff
lue
nt
tota
l n
itro
ge
n
co
nc
en
tra
tio
n (
mg
/l)
0
70
To
tal
nit
rog
en
re
du
cti
on
(%
)
80
HELCOM'S NEW RECOMMENDATION 70-80% Ntot REDUCTION
HELCOM'S NEW RECOMMENDATION Ntot ≤ 10 mg/l
SWTP
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SWTP phosphorus reductionSWTP phosphorus reduction
UZOSEffluent total phosphorus concentration (mg/l) and reduction (%)
0,0
1,0
1/7
2/7
3/7
4/7
5/7
6/7
7/7
8/7
9/7
10
/7
11
/7
12
/7
13
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/7
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/7
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31
/7
Date
Eff
luen
t to
tal p
ho
sph
oru
sco
nce
ntr
atio
n (
mg
/l)
0
90
To
tal p
ho
sph
oru
s re
du
ctio
n (
%)
0,5
HELCOM'S NEW RECOMMENDATION 0.5 mg
Ptot/l
HELCOM'S NEW RECOMMENDATION Ptot REDUCTION 90%
SWTP
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Financial sources (1)Financial sources (1)
● Credits - where to borrow from? → International Financing Institutions: EBRD, NIB, NEFCO, EIB offer long-term loans, 10-15 year maturities; IFIs lead NDEP project preparation
→ NIB Baltic Sea Environmental Facility (EUR 500 million)
→ Commercial Banks: still short-term lending with various terms; guarantees possible
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
Financial sources for BSAP (2)Financial sources for BSAP (2)● International Grants - where to find them?
→ Active bi-lateral programs (SIDA, Finland, Norway etc.)
→ Multilateral: NDEP linked with IFI loans
→ European Commission: EU programmes with national/ local counterpart funding, ENPI; EU Baltic Sea Strategy
→ Private foundations: provision of catalytic seed money and bringing high-level
publicity & increased awareness
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Financial sources for BSAP (3)Financial sources for BSAP (3)
● National funding sources
→ National Federal Programmes e.g. Clean Water coordinated by Ministry of Regional Development in Russia
→ Regional Allocations
→ Municipal Budget resources
→ Self-financing based on tariff revenues
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NDEP - future activitiesNDEP - future activities
NDEP cooperates closely with HELCOM and other regional organizations for good coordination of joint activities. EU Strategy for the Baltic Sea Region is a key guideline.
Project preparation has commenced in Belarus in 2010 by NIB and EBRD; significant bilateral support from Sweden, Finland and Austria
Coordination with national programs such as “Clean Water” in Russia and Belarus for multiple benefits.
2010 challenges: ensuring good progress for Neva-project and wastewater treatment in Kaliningrad; waste management of agro-industries by NEFCO in Lenoblast ; new projects in Pskov, Petrozavodsk and Lenoblast in Russia as well as in Belarus
New funds required for the pipeline activities. EC and Russia lead financial contributors with Sweden, Germany and Finland.
NorthernNorthern DimensionDimension EnvironmentalEnvironmental PartnershipPartnership
Our common tasksOur common tasks
“Every little counts” in the Baltic Sea basin
International agreements are to be integrated into national targets and policies including necessary financial commitments
National targets are applied into regional and municipal actions down to citizen level
Every household and enterprise is equally responsible for their own share - for a Cleaner Baltic Sea
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For more on NDEP…For more on NDEP…
Please contact:Please contact:
Jaakko Henttonen, NDEP ManagerEBRD RO, Nevsky Prospekt 25, St PetersburgTel. +7 812 7035525; Fax: +7 812 703 55 26Email: [email protected]
Ewa Manik, NDEP Administrative OfficerEBRD, One Exchange Square, London EC2A 2JNTel. +44 207 338 7196, fax +44 207 338 7486Email: [email protected]
Or visit: Or visit: www.ndep.orgwww.ndep.orgwww.ebrd.comwww.ebrd.comwww.nib.intwww.nib.intwww.nefco.orgwww.nefco.org
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