Jaakko Henttonen, NDEP Manager EBRD St Petersburg

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


Background: Plankton blooms in 2002


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


Belarus is part of the Baltic Sea catchment area

Western Dvina

Vitebsk●●

Grodno

Brest

Poletsk

Minsk

●

● ●

Neman

Bug


Locations 2Locations 2

Map of 17 Poultry Farms in Leningrad Oblast


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


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


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


St Petersburg Neva Program € 186.9mSt Petersburg Neva Program € 186.9m

IFI LoansNIB,

EBRD,EIB32%

Russian Funds

(Federation, City &

Vodokanal)

46%

SWEFIN9%

NDEP13%


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


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


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


ST. PETERSBURG - SOUTHWEST WASTEWATER

TREATMENT PLANT (SWTP) in 2002


ST. PETERSBURG - SOUTHWEST WASTEWATER

TREATMENT PLANT (SWTP) in 2005


Inauguration September 22, 2005

ST. PETERSBURG – INAUGURATION OF THE SOUTHWEST

WASTEWATER TREATMENT PLANT (SWTP)


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)


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)


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


SWTP nitrogen reductionSWTP nitrogen reduction

UZOS Effluent total nitrogen concentration (mg/l) and reduction (%)

0

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1/7

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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


SWTP phosphorus reductionSWTP phosphorus reduction

UZOSEffluent total phosphorus concentration (mg/l) and reduction (%)

0,0

1,0

1/7

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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


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


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


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


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.


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


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

Documents

Jaakko Henttonen, NDEP Manager EBRD St Petersburg