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wb350881Typewritten Text52901
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In this brochure CEE refers to the countries of Albania,
Annenia, Azerbaijan, Belarus, Bulgaria, Croatia, Czech Republic,
Estonia, Georgia, Hungary, Kazakhstan, Kyrgyz Republic, Latvia,
Lithuania, FYR of Macedonia, Moldova, Poland, Romania, Russia,
Slovak Republic, Slovenia, Tajikistan, Turkmenistan, Ukraine, and
Uzbekistan. In the World Bank, CEE is a subset of the Europe and
Central Asia Region, which includes all of these countries as well
as Portugal, Cyprus, and Turkey.
The World Bank Group comprises the World Bank (the International
Bank for Reconstruction and Development, IBRD), and its affiliated
institutions: the International Finance Corporation (lFC), the
International Development Association (IDA), the International
Centre for Settlement of Investment Disputes (ICSID), and the
Multilateral Investment Guarantee Agency (MIGA). This report
focuses on the activities of the IBRD and IDA, and when
appropriate, the IFe.
This publication has been prepared by the staff of the
Environment Division, Europe and Central Asia, Middle East and
North Africa Regions. Any judgments expressed are those of its
authors and should not be attributed in any manner to the World
Bank, to its affiliated organizations, or the members of its Board
of Executive Directors or the countries they represent.
The World Bank, October 1995.
Cover Photos: Stephen F. Lintner, The World Bank
Zhivko Angelov, Bulgaria
-
At the beginning of this decade, the countries of Central and
Eastern Europe and Central Asia began the difficult transition to
market economies. They brought to this process legacies of serious
pollution problems and natural resource depletion which impose high
costs on health, productivity, and environmental quality.
During the past six years, these countries have developed
strategies and marshalled resources to address some of their
priority environmental needs. Much has been accomplished; much more
still needs to be done.
I am pleased to present this report of the World Bank's recent
activities to assist these countries in addressing their
environmental problems. We look forward to continuing this critical
work and helping achieve measurable improvements in environmental
quality as we approach the turn of the century.
Wilfried P. Thalwitz
Vice President
Europe and Central Asia Region
The World Bank
-
TABLE OF CONTENTS
SUMMARY
I. A NEW APPROACH 2
II. IMPLEMENTING THE NEW APPROACH 3
Developing National Environmental Strategies and Action Plans
3
Reforming Policies 4
Strengthening Institutions and Public Participation 6
Investing in Environmental Improvements 7
Regional Programs 12
III. THE CHALLENGES AHEAD 14
Continuing to Focus on Health Impacts 14
Enhancing Partnerships 16
ANNEX I: Selected World Bank Projects (1990·1995) 19
ANNEX II: Selected GEF/World Bank Projects 22
-
--««---.,-------------------------
THE \VORLD BANK AND THE ENVIRON;\IENT IN CENTRAL AND EASTERN
EUROPE:
1990-1995
SUMMARY
Since 1990, the World Bank has assisted the countries of Central
and Eastern Europe and Central Asia (CEE) in implementing actions
to improve the environment. The World Bank and OECD, in
collaboration with the European Commission, took a leading role in
preparing the Environmental Action Programme for Central and
Eastern Europe (EAP) in 1993. The EAP recommends a methodology for
identifying priority environmental problems and immediate
actions.
The World Bank is committed to helping the CEE countries
implement the EAP. This assistance covers four areas:
• Formulating National Environmental Strategies. The World Bank
has assisted II countries develop environmental strategies and
aClion plans.
• Reforming Policies, Strengthening Institutions, and Public
Participation. Through adjustment, sectoral, and project
activities, the World Bank is facilitating the development of
appropriate economic incentives and regulation.
• Financing Environmental Investments. The World Bank has
committed US$1.3 billion to help finance 12 stand-alone
environmental projects. In addition, it has supported environmental
components
or objectives in 27 other projects. As an implementing agency of
the Global Environment Facility, the World Bank is also financing
US$119 million for 19 projects in biodiversity protection, climate
change prevention, and phase-out of ozone-depleting substances.
• Collaborating with Donors. The World Bank is committed to
working with other donors to allocate external resources more
effectively. Through such partnerships, the World Bank is helping
finance several international programs addressing regional
environmental issues.
This progress report summarizes the World Bank's activities in
support of the CEE countries' efforts to reverse environmental
degradation. Many of these problems have taken decades to develop,
and solutions will not appear overnight. The CEE countries have
made much progress in identifying and addressing their national
environmental priorities
The continuing challenge is to translate these priorities into
discrete policies, institutional reforms, and investments. Improved
human health will remain a key concern. Partnerships among the CEE
countries, international financial institutions, bilateral donors,
domestic intermediaries and private investors will facilitate the
most effective use of the resources available.
The World Bank and the Environment in Central and Eastern
Europe: 1990-1995
-
I. A NEW APPROACH
In 1991, environment ministers met near Prague to discuss the
steps necessary to improve the serious environmental conditions in
Central and Eastern Europe. This meeting initiated the "Environment
for Europe" process. In the two years that followed, the
environment ministries collaborated closely with the European
Commission, the OECD, and the World Bank to develop a framework for
achieving environmental improvements in the CEE countries. In 1993,
after numerous meetings and expert workshops, the environment
ministers from 50 countries met again in Lucerne, Switzerland, to
endorse the product of this collaboration, the Environmental Action
Programme for Central and Eastern Europe (EAP).
The EAP provides a strategic approach for integrating
environmental concerns into the economic transformation of CEE
countries, and presents criteria and practical methods for
identifying priority problems and cost-effective actions to address
them. The EAP thus provides a framework for individual countries to
develop their own, country-specific action plans, and for
cooperation between Eastern and Western countries. While the
preparation and acceptance of the EAP was a major accomplishment,
the shift to a general understanding that environmental
improvements are rooted in economic and social change was an even
greater achievement.
The EAP reflects the experiences of many individual countries in
developing their own environmental strategies and actions. Many of
its ideas emerged from
the painful lessons of earlier decades when environment and
development were seen as competing rather than complementary
objectives, and development projects did not take adequate account
of environmental concerns. The EAP demonstrates, in particular,
that policies, instituitions and human and management capacity are
at least as important as specific investments in achieving
environmental benefits.
The EAP places considerable emphasis on the human health
consequences of environmental degradation. In particular, drinking
water contamination, and lead and particulate pollution are key
short-term concerns. In many cases there are opportunities for
implementing low-cost measures to address these concerns. Based on
an assessment ofa number of "hot spots" in the CEE countries, the
EAP recommended specific "winwin" investments that benefit both the
economy and the environment.
An important premise of the EAP is that investments should be
made within the framework of complementary economic and
environmental policies. For example, phasing-out subsidies on
energy, raw materials, and water can encourage conservation,
thereby reducing waste and pollution. Enhancing the financial
discipline of enterprises (e.g., through the use of hard budget
constraints) strengthens the incentive to reduce losses in the use
of energy and raw materials.
A NewApproach 2
-
II. IMPLEMENTING THE NEW APPROACH
The World Bank is working with the CEE countries to assist them
in implementing the EAP. This assistance has included support for
developing national environmental strategies and action plans,
reforming policies, strengthening institution!!, inerea!Jinl publie
panielpa= tion, financing environmental improve~ ments, and
developing regional programs.
DEVELOPING NATIONAL
ENVIRONMENTAL STRATEGIES
AND ACTION PLANS
Since the Lucerne conference, the Task Force for the
Implementation of
the Environmental Action Programme with a secretariat at OECD
and the Regional Environmental Center in Budapest have supported
the disseminl1tion of the EAP throughout the 2S eBB countries and
promoted the prepll= ration of national environmentAl !!trat= egie~
and action plans. As a member of the Task Force, the World Bank has
participated in this effort. Since 1990, it has worked with 11 CEE
countries as they have developed environmental strategies or action
plans (Box 1). Six additional countries have expressed an interest
in World Bank and donor assistance for this purpose.
Box 1. World Bank Involvement in National Environmental
Actions Plans in Central and Eastern Europe and Central
Asia.
National Environmental Strategies . with World Bank Support: . _
Completed I:l2J In Preparation
The World Bank and the Environment in Central and Eastern
Europe: 1990-1995 3
-
In 1995, the World Bank supported the preparation of the Kyrgyz
National Environmental Action Plan (NEAP) which provides an example
of an effective strategic approach to environmental
priority-setting (Box 2). The World Bank has also assisted the
Government of Moldova in developing its environmental action plan.
For the first time, economic valuation has been applied in setting
environmental priorities across
sectors and media. The action plan establishes the need to
address water qual
ity as a high priority. In 1994, the Gov
ernment of Bulgaria was the first to re
visit the short-term environmental priori
ties identified in its 1991 environmental
strategy. The updated strategy focuses
on air emissions from smelters, lead emis
sions from vehicles, and drinking water supply.
Box 2. The Kyrgyz Republic NEAP identities environmental
priorities
and key projects for action in a participatory manner.
The Kyrgyz Republic NEAP identifies key environmental concerns
and proposes priority
actions on the basis of health information and extensive public
participation. Government officials, NGOs and the general public
were involved in drafting the document. discussing
environmental
priorities. and disseminating information on the plans's
objectives and expected outcomes. The
NEAP outlines institutional arrangements for implementation,
monitoring, and periodic updates. To carry this out, a small NEAP
implementation office was set up with Swiss assistance 10
ensure
ongoing evaluation, provide a link between NGOs and the
government. develop training activities.
and coordinate donor programs.
The NEAP is also designed to serve as a guide for donor support.
While preparing the plan, a joint Kyrgyz-World Bank team identified
potential technical assistance and investment needs
for the next 2-3 years in the areas of sustainable natural
resource management. water supply and
sanitation. and biodiversity protection.
REFORMING POLICIES improved policies and the environment
Sound economic policies encourage efficient resource
utilization, lead to waste reduction, and alleviate environmental
pressures. One of the World Bank's instruments for advancing
economic policy change is adjustment lending, which in the CEE
countries has reached US$5.7 billion since 1990, representing 28
percent ofWorld Bank lending to these countries. A major objective
of these operations is to liberalize prices and the trade regime,
remove subsidies, and introduce hard budget constraints to public
sector enterprises.
One area where there has been a consistently positive
correlation between
is energy pricing reform. Removing energy subsidies reduces
energy consumption and related pollution. It can also be effective
in promoting a shift from coal or other highly polluting energy
sources to environmentally preferable fuels. For example, the World
Bank's US$300 million Structural Adjustment Loan to Poland led to a
liberalization of coal prices which, in conjunction with industrial
decline, reduced the demand for coal vis-a-vis other fuels. Fuel
switching has been linked to a reduction in emissions of carbon
dioxide (a greenhouse gas) as well as other air pollutants such as
sulfur, nitrogen oxides, and particulates.
Implementing the New Approach 4
-
Some adjustment policies, however, may have indirect adverse
effects. For example, trade liberal ization may, by encouraging
exports, increase natural resource depletion (e.g., deforestation,
overfishing, and mineral exhaustion.) Adjustment policies can also
affect the levels of public expenditures which, in turn, can lead
to temporary cuts in spending for the environment. The solution to
these problems is not to delay adjustment policies, but to assure
legal protection against resource depletion, and to generate
financing for priority environmental expenditures.
The World Bank supports these actions through its overall
country assistance strategy and sectoral lending for environment,
energy, transport, forestry, and water and sanitation. It also
assists countries in strengthening environmental legislation and
institutions.
Sometimes the World Bank's adjustlnent operations themselves
include concrete measures to respond to environmental concerns. The
Privatization and Enterprise Sector Adjustment Credit to the Kyrgyz
Republic requires environmental audits for highly polluting
enter-
Box 3. The World Bank is helping countries to improve
environmental institutional capacity through better management
practices.
Poland Environmental Management Project. First for the region,
this project provides US$18 million of World Bank financing to
strengthen local and national institutions responsible for
environmental management. The project includes development of an
air quality management strategy for the Katowice-Krakow region, an
integrated framework for river basin management for the upper
Vistula River, and building local capacity for improved donor
coordination.
Russia Environmental Management Project. This World
Bank-financed technical assistance project supports institutional
strengthening in the Upper Volga and the Urals regions. Regional
management strategies or action plans are being developed with the
objective of substantially reducing pollution from large sources
within the next 3-5 years. In addition, a new management and
organizational structure for dealing with hazardous waste and water
quality management is being adopted. Donor support is being
provided by Switzerland, the United States, Norway, Sweden,
Finland, and the Global Environment Facility (GEf).
Kazakhstan Institutional Support Project. As part ofthe
Technical Assistance Loan for Kazakhstan, this component provides
about US$I million for strengthening environmental management
capacity at the national level. The project will improve
environmental coordination betwccn ministries and related
organizations, assist with policy development, initiate the
preparation of the National Environmental Action Plan, and improve
monitoring capacity. Support will also be provided for the
development of training and educational programs and community
relations activities.
Ukraine Environmental Management Pilot Project. This pilot
project in Donetsk Oblast, Ukraine, provides a model for improving
the environmental management capabilities of
local environmental agencies. The project will support training
to environmental agencies in
monitoring and evaluation, ambient modelling techniques,
permitting. and inspection and
compliance auditing. In addition. it will provide an air quality
model to guide the selection of
cost-effective control measures; perform environmental audits
and recommend cost effective
improvements at iron and steel enterprises; and build public
awareness of pollution and its associated health impacts. This
project is funded by a World Bank Institutional Development Fund
(IDF)
grant of US$430,OOO with additional support from Switzerland and
the United Kingdom.
The World Bank and the Environment in Central and Eastern
Europe: 1990-)995 5
-
prises and provides guidelines for environmental screening of
sub-loan applications by the participating financial
intermediaries. Similarly, the Structural Adjustment loans to
Hungary and the Czech Republic required improvements in
environmental institutions.
STRENGTHENING INSTITUTIONS
AND PUBLIC PARTICIPATION
Institutional strengthening, a prerequisite for effective
environmental management. is an important component of the World
Bank's assistance to CEE countries. World Bank partners in
institutional capacity-building include environmental and other
sectoral ministries. regional authorities, local utilities, and
NOOs.
The main objectives of most World Bank
institutional-strengthening
projects are to improve environmental management and to ensure
efficient use
of scarce resources. As illustrated by projects in Poland.
Russia, Kazakhstan, and Ukraine (Box 3), World Bank loans are
financing environmental management improvements, monitoring
equipment, the development of environmental information systems,
and capacitybuilding to formulate and enforce appropriate
policies.
Evidence around the world demonstrates that stakeholder
participation can, in many instances, improve the quality,
effectiveness, and sustainability of projects, particularly in the
environmental field. A recent project in Azerbaijan, for example,
involved participatory social assessments in the design of a
critically needed water supply improvements (Box 4). A similar
approach is being undertaken for water supply and sanitation
projects in Kazakhstan. Turkmenistan, and Uzbekistan, as well as
for projects in other sectors.
Box 4. Stakeholder participation has had a major influence on
ownership, project design and policy content for the Baku water
supply project.
Massive water shortages in Azerbaijan's capital city led to the
design of the Greater Baku Water Supply Rehabil itation Project,
financed by the World Bank and the European Bank for Reconstruction
and Development (EBRD). In preparing this critically needed
investment. the World Bank with local assistance carried out a
social assessment to help identify socioeconomic factors that
should influence project design and implementation. The assessment
helped the dialogue between the Baku Water Department and its
clients, and contributed to a better understanding of the potential
impacts of the project on city residents.
The social assessment was a highly participatory process that
included consumer surveys; community-based discussions;
institutional assessments; and discussions with representatives of
national and local governments, international institutions,
enterprises, and NGOs. In addition to confirming that the project's
objectives were acceptable to the intended beneficiaries, the
findings of the assessment made a significant contribution to the
policy dialogue on key environmental issues, particularly regarding
the community's willingness-to-pay for water conservation.
Implementing the New Approach 6
-
INVESTING IN ENVIRONMENTAL
bIPRO"'EMENTS
Since 1990, the World Bank has rapidly developed an
environmental portfolio in CEE countries. Total lending commitments
for 12 stand-alone environmental projects in six countries
reached US$1.3 billion, or over seven percent of total World
Bank lending for all CEE countries. For these projects, the World
Bank's loan funds are com
bined with US$I.1 billion from domestic sources, and US$230
million from donors (of which roughly 60 percent is for investment
and 40 percent is for technical assistance).
The World Bank is also financing 27 projects with discrete
environmental components or with major environmental objectives.
Six of these projects are supported by the International
Development Association (IDA). IDA provides interest-free credits
to the poorest coun
tries enabling them to have access to the World Bank's financial
and technical services normally provided to the more credit-worthy
borrowers. *
Stand-Alone Environmental Projects. Twelve stand-alone
environmental projects support high priority actions across sectors
and media (Box 5). Of these projects, 5 are in the energy sector
(US$919 million or 70 percent of the total amount) aimed at
industrial or "brown" environmental issues-reducing air pollution
and improving the urban environment. Three water-related or "blue"
projects are designed to protect coastal zone areas (US$13 million
or 1 percent). One "green" project funds sustainable forestry
management (US$146 million or 11 percent). Among the remaining
projects, 2 are for improvements in general environmental
management (US$128 million or 10 percent) and 1 is for emergency
oil spill response capability (US$99 million or 8 percent).
Box 5. Over the past six years, World Bank lending commitments
to CEE countries has totalled US$l.3 billion.
Envirorunental Lending by Sectors 8% CwnuIative Environmental
Lending in CEE
11%
1%
II Air/Eoergy $M919 • Water SM13
o Foresuy SM146 Ell General En"ironment $Ml28 • Emergency Oil
Spill $M99
1990 1991 1991 1993 1994 1995
• IDA, a part of the World Bank. was established III 1960 to
fund investments in countries unable to secure foreign financing.
IDA provides no-interest loans. referred to as credits, repayable
over 40 years, IDA credits are available only to the very
countries. For the less poor, IDA credits are blended with
International Bank for Reconstruction and Development (lBRD) loans.
Albania and Tajikistan are IDA only countries. Armenia, Azerbaijan,
Georgia. Kyrgyz Republic, and FYR of Macedonia are blend
countrics.
The World Bank and the Environment in Central and Eastern
Europe: 1990-1995 7
-
Environmental projects are a unique opportunity for
collaboration between East and West, and offer a special challenge
to development institutions such as the World Bank to bridge
resources from donors and recipients. Blending loans from the World
Bank with concessional donor funds can result in increased levels
ofenvironmental investments.
The use of donor grants in World Bank projects is justified when
there are clear external benefits to be captured by the project. An
example is the Liepaja
Environment Project in Latvia, where the World Bank loan and
donors' grants contribute 19 percent and 47 percent respectively;
other international financing institutions provide 9 percent and
the government shares the rest of the costs (25 percent). The
transboundary pollution evident in the Baltic Sea has induced a
high level of Nordic donor interest, enabling this and other
projects to be launched (Box 6). Blending can also be instrumental
in encouraging specific desired actions which might otherwise be
left out of a project due to borrowing constraints.
Box 6. The World Bank's Baltic Sea portfolio includes
extensive
blending of IFI loans and donor grants which enabled
these environmental projects to be launched.
To support the Baltic Sea Environmental Program, the World Bank
has adopted a
comprehensive approach that includes a strong portfolio of seven
complementary projects. The
financial arrangements for the following projects. already
approved by the World Bank, illustrate
what can be accomplished through donor co-financing or
blending:
Estonia: The Haapsalu and Matsalu Bays Environment Project
(total project cost US$8 million,lBRD loan US$2 million) supports
the strengthening of the Haapsalu water and wastewater
utility. a demonstration program for cOnlrol on non-point source
pollution from agriculture and rural settlements, and the
implementation of the master plan for Matsalu State Nature Reserve.
Co-financing of US$4 million is provided by the European Union
(EU), Finland, and Sweden.
Latvia: The Liepaja Environment Project (total project cost
US$21 million, IBRD loan US$4 million) supports the strengthening
of the Liepaja water and wastewater utility, a comprehensive
management plan for adjacent coastal areas and wetlands, and
development of
nature-based tourism on the Baltic Coast of Latvia. Co-financing
of US$12 million is provided by the EU, Denmark, Finland. Sweden,
and the Nordic Environment Finance Corporation.
Lithuania: The KJaipeda Environment Project (total project cost
US$23 million, IBRD loan US$7 million) supports the strengthening
of the Klaipeda water and wastewater utility. a
comprehensive management plan for the Kursiu Lagoon, an
integrated coastal zone management
plan for the Lithuanian coastline, and the development of
nature-based tourism. Co-financing of
US$9 million is provided by the EU, Denmark, Finland, and
Sweden.
Incorporating Environmental Objectives into Lending with Other
Goals. Well-designed, traditional sectoral projects can have
important, positive effects on the environment and on human health.
Traditional water supply and wastewater management projects,
for example, not only improve services
for the population, but can reduce the
incidence of waterborne disease and
improve environmental quality in river
basins or coastal areas. Such projects,
therefore, have the potential to produce
ImplemenIing the New Approach 8
-
long-term positive environmental effects for a wide range of
aquatic and marine ecosystems. Similarly, traditional energy sector
projects often produce positive environmental and human health
impacts while improving economic output. By investing in new and
innovative technologies, countries can lower their fuel consumption
while increasing their energy output, thus reducing harm
ful atmospheric emissions. This wafS the case in the Czech Power
and Environmental Improvement Project (Box 7). The 27 World Bank
projects with environmental components or objectives will, among
other benefits, help reduce contamination from agricultural runoff,
improve water management, reduce urban transport vehicle emissions,
and promote energy conservation.
Box 7. The Czech Power and Environment Improvement Project
will lead to substantial emission reductions in the power
sector.
The Czech Power and Environment Improvement Project supported
investments that lead to
direct reduction in S02 and particulate emissions. For example,
EZ, a.s., the power plant responsible
for more than three-quarters ofthe gross electricity generation
in the Czech Republic, is undertaking
a series of management and investment actions that are expected
to result in a 90 percent reduction
of SOz and an 80 percent reduction in fly ash by the year
2000.
PoUutin Reduction - CEZ
1400000
I 200000
1000000
800000
600000
400000
200000
o
III Particulate, tonnes/year 1:11 002 lonnes/year
Small Scale HWin- Win" Investments. Many of the environmental
problems in CEE countries can be addressed by small investments. In
a number of recent operations, therefore, the World Bank has
explored the potential for providing lines ofcredit for financing
small, viable resource/pollution minimization projects. In
addition, the World Bank supports the banking sector in a number of
countries (e.g., in Russia, Estonia, Latvia, Lithuania) in
developing capa
bilities in environmental screening and appraising loan
applications.
Small-scale "win-win" investments can also be addressed through
earmarked environmental funds, which are partially financed by
taxes and charges on polluters. The World Bank is working with CEE
countries and the donor community to help improve the management of
some of these funds. In a number of World Bank projects,
capacity-building
The World Bank and the Environment in Central and Eastern
Europe: 1990·1995 9
-
of the environmental funds is an addi of the Russia
Environmental Manage
tional project objective, as in the case ment Project (Box
8).
Box 8. The World Bank's Russia Environmental Management
Project finances small, high priority projects.
The Government ofRussia is currently establishing a National
Pollution Abatement Facility (NPAF) financed by US$58 million from
the World Bank and Switzerland, together with the
equivalent of US$76 million from local sources. The NPAF was
established to finance resource
recovery and pollution abatement projects which require smaller
investments and shorter payback
periods than the World Bank would normally grant.
NPAF funds are intended to finance £he investment costs of
commercially viable resource
recovery/pollution abatement projects. The NPAF is authorized to
loan to state-owned enterprises.
local or foreign plivate entities, and joint ventures. Examples
of typical NPAF project concepts
include copper recovery from smelter dust and mining waste
tailings. hydrocarbon vapor recovery
from crude oil tanks, oil recovery from soil and surface water
remediation. and metal recovery
through regional waste treatment schemes.
Emergency Lending. In addition to traditional project lending,
the World Bank can quickly mobilize financing in case
ofenvironmental emergencies. For example, to respond to one of the
world's largest oil spills, the World Bank ap
proved an emergency loan within ten weeks after receiving a
request from the Russian government. The loan will finance efforts
to contain, clean up, and mitigate the effects of the spill (Box
9).
Box 9. The World Bank responds quickly to an emergency:
the Komi oil pipeline spill.
The Russian Federation Emergency Oil Spill Recovery and
Mitigation Project includes three main components: (1) spill
containment and cleanup, (2) rehabilitation of the leaking
pipeline. and (3) technical assistance to strengthen the management
capacity necessary to mitigate the effects of the spilled oil. A
World Bank loan of US$99 million was quickly approved as part of a
US$140 million financing package that included funds from EBRD.
Despite the short duration ofthe project preparation phase,
invo1ving the communities affected
by the spill was an important component of the project design
process. In January 1995, preliminary
consultations with a major international NGO and local NGOs were
initiated to identify emergency
needs resulting from current and expected future impacts of the
oil spill. Preparatory work was
funded by Canada. The results of the consultations supported the
development of a program of
social assistance to affected communities to be funded under the
project.
GEF and the World Bank. The Global Environment Facility has
played an important role in financing and in mo
bilizing other sources of funds in support of global environment
concerns in CEEcountries. Since 1992, theGEFhas
to
provided grants to finance the incremental costs associated with
obtaining global benefits for 19 projects totalling US$119 million
for technical assistance and investments in four main areas:
biodiversity, climate change, international
Implementing the New Approach
-
waters, and the phase-out of ozone depleting substances (Annex
II). The World Bank is one of three implementing agencies of the
GEF, along with the United Nations Development Programme (UNDP) and
the United Nations Environment Programme (UNEP).
During the pilot phase of the GEF (1991-1994), the World
BanklGEF financed projects across all focal areas. In the field of
biodiversity, GEF grants supported a network of trans boundary
protected areas in five countries. Transboundary work in the
Carpathians led the GEF, in collaboration with the World Wide Fund
for Nature (WWF).
to provide seed money and leverage other sources of capital to
create the
TransCarpathian Trust Fund. The Trust Fund is an innovative way
to address the issue of recurrent costs in protected area
management. The Russia Biodiversity Conservation Project, part of
the Russia Environmental Management Program, supports the
development of regional strategies and action plans with a strong
focus on local participation. In the area of climate change, the
USS25 million, Poland Coal-to-Gas Project finances the incremental
costs of fuel-switching for small and medium-sized enterprises (Box
10).
Box 10. GEF and the World Bank are working together
on a coal-to-gas conversion project in Poland.
As it prepares to ratify the Framework Convention on Climate
Change, the Government of Poland is committed to reducing
greenhouse gas emissions. particularly those of carbon dioxide
(CO:) and methane. To this end. GEF has authorized a grant of US$25
million to the Polish Ministry of Environmental Protection. ~arural
Resources and Foresuy to encourage CO: reduction. Along with US$I
million in co-t1nancing from Norway. GEF financing will serve as a
basis for a coal-to-gas conversion project totalling US~~ million.
The coal-to-gas conversion grant is intended to promote CO~
reduction by (I) inyesring in the conversion ofexisting small and
medium coal-fired boiler houses to natural gas-firing. Ci
increasing energy-efficiency in new residential buildings. and (3)
providing technical assistance to project participants.
Implementation of these projects is also intended to strengthen
Poland's institutional framework for cost-effective environmental
managemenr activities; design. installation. and operation of
heat·supply system improvements; and assessing global externalities
such as CO~ abatement. The project will have the added benefits of
improving local air quality by yinually eliminating sulfur dioxide
(502) and paniculate emissions while significantly reducing
emissions of nitrogen oxides (NO).
Now in its Operational Phase, the GEF portfolio in CEE is
concentrating on financing the phase-out of ozone depleting
substances (ODS). The first ODS phase-out operation for Bulgaria
has been negotiated, and five more operations - in the Czech
RepUblic, Slovak Republic, Russia, Slovenia, and Hungary - are
approved by the GEF Council. Projects in earlier phases of de
sign include several international waters initiatives,
biodiversity projects for integrating wetlands and protected area
management in the wider ecosystem and landscape, and energy
efficiency projects. The World BanklGEF has also spearheaded global
overlays to assist countries in considering global environmental
factors in sector and project work.
The World Bank and the Environment in Central and Eastern
Europe: 1990·1995 II
-
The World Bank's nearly US$40 million GEF biodiversity portfolio
in the CEE countries has been especially successful in leveraging
donor funds, in
cluding financial participation for NGOs. In addition, three GEF
projects
have established trust funds to meet recurrent costs.
Enhancing Donor Collaboration: The Project Preparation Committee
(PPC). The PPC, with a secretariat at EBRD, was established after
the
Lucerne conference to help coordinate
donor activities and secure project fi
nancing by matching bilateral funds with resources from
multilateral financial in
stitutions. By September 1995, 58
projects in the lending program of the
World Bank had received financing com
mitments through the PPC matching framework. Roughly 20 each
are
"brown" or "blue" projects, 10 are
"green," and the remaining ones have more general environmental
objectives. Although most co-financing is for prepa
ration, it is sometimes used for invest
ment. Of these projects, 10 are now beginning implementation.
The World Bank has not only benefited from do
nor-funded PPC staff placed in its of
fices, but has donated its own resources
to be an active participant in this com
mittee.
REGIONAL PROGRAMS
Several important regional programs have been developed by
groups ofcountries affected by the degradation of economically
important bodies of water such as the Aral Sea, Baltic Sea, Black
Sea, Caspian Sea, Mediterranean Sea,
and the Danube River. The World Bank has been helping to develop
these programs and continues to work actively with countries and
donors on both project identification and financing (Box
11).Building institutional capacity in CEE countries remains a high
priority; and thus program coordination units are being established
in the affected regions.
Regional Nuclear Power and Safety issues. At the request of the
Group of 7 major industrial countries (G-7), working together with
the International Energy Agency (lEA), and the EBRD, the World Bank
prepared a study of the nuclear safety and electric power
requirements of six countries: Armenia, Bulgaria, Lithuania,
Russia, Slovakia, and Ukraine. The report, along with individual
country studies, is part of the continuing effort, supported by the
World Bank, G-7 Nuclear Safety Working Group, EBRD, the European
Investment Bank (EIB), and lEA, to help countries develop long-term
energy strategies and to ensure that nuclear safety issues and
energy needs are adequately addressed in a coordinated manner.
Moreover, the World Bank and the other international financial
institutions are supporting reforms and investments in the energy
sector.
implementing the New Approach 12
-
Box 11. The World Bank's involvement in regional programs is
part of a
comprehensive effort organized by donors and CEE countries.
The Aral Sea Program. The World Bank is coordinating this
program which involves
five countries of the Aral Sea Basin and consists of nineteen
projects (four of which are being
directly financed by the World Bank). The World Bank has
established an Aral Sea Basin Unit
(with a US$2 million grant from its Special Grant Program, and
US$500,OOO from GEF for
project preparation) to administer certain donor funds and
ensure international coordination.
The donors include the EU, UNDP, UNEP, Canada, Denmark, Finland.
Italy, Japan, Kuwait,
the Netherlands, Sweden, Switzerland, the United Kingdom. and
the United States.
The Baltic Sea Joint Comprehensive Environmental Action Program.
This Program
has seven World Bank-financed projects either approved or
scheduled to be approved within
the next year, totalling US$240 million in project costs.
Support is also provided by the EU,
Denmark, and Sweden, and the WWF which is closely involved in
many local activities. Actions
to manage ecologically important coastal lagoons and wetlands
form a critical element of the
Program.
The Black Sea Environmental Program. This program includes a
GEF-funded project,
which is a collaborative effort between the World Bank, UNDP,
UNEP, and others. Currently,
the World Bank is actively involved in municipal infrastructure
projects for Batumi and Poti,
Georgia; a proposed water/wastewater treatment project for
Odessa. Ukraine; and a proposed
coastal preservation project in Bulgaria. In addition, there is
a municipal water project under
consideration in Russia. The World Bank is managing US$3.3
million of a total of US$9
million GEF funds.
The Caspian Sea Initiative. The five littoral states of the
Caspian Sea established this
initiative. The World Bank is collaborating with the coastal
governments. the private sector,
UNDP, UNEP, and NGOs to explore the institutional, policy, and
technical issues related to the
environmental protection and management of the Caspian Sea. The
Caspian Initiative is also
being supported by a Bank executed grant of US$5oo,000 from the
Government of Japan.
Other interested donors include the Netherlands and the EU.
The Strategic Action Plan for the Danube River Basin
Environmental Program. The
World Bank participated in the drafting of the Strategic Action
Plan for the Danube River
Basin, which is the primary output of this GEF- and EU-funded
program. The plan is aimed at
improving the quality and availability of water and reducing the
negative impact of human
activities on the ecosystems of the Danube Basin. The total
program is being supported with
US$8 million from GEF and 13.4 million Eel.! from the EU; other
donors include the Netherlands
and the United States. The World Bank is managing US$4 million
of this effort.
The Mediterranean Environmental Technical Assistance Program
(METAP).
Launched in 1990 and managed by the EIB and the World Bank,
METAP provides technical
assistance to environmental institutions and facilitates
environmental improvement by developing
a project pipeline. METAP has mobilized nearly US$30 million
dollars to finance nearly 100
activities in 21 countries, including Albania, Croatia, and
Slovenia. A final implementation
phase is to be launched in 1996. Major donors are EU, UNDP,
Germany, Switzerland, France,
and Monaco.
The World Bank and the Environment in Central and Eastern
Europe: 1990-1995 13
-
III. THE CHALLENGES AHEAD
The emphasis of the EAP is on setting priorities, using
resources efficiently and achieving concrete improvements in the
environment and in human health. While progress since Luceme is
impressive, much more still needs to be done.
Advancement of economic reforms, better regulatory enforcement,
industrial restructuring and rehabilitation, and well-targeted
investments have led to measurable environmental improvements in
the CEE countries. Initially, the decrease in pollution levels was
mainly associated with a decline in industrial output. In a number
of "hot spots", however, a combination ofpolicy and investment
measures has assured that improvements can be sustained in the
course of economic recovery.
Continuing the stream of policy and institutional reforms
remains the key factor for future environmental gains. For example,
sound pricing and taxation policies that promote the polluter-pays
and user-pays principles playa major role in achieving better
environmental conditions. To assure sustainable improvements,
environmental management must be integrated into the social and
economic transition which is underway. The World Bank is committed
to continuing its policy, institutional-strengthening and
investment assistance to the CEE countries in meeting this
challenge.
As a part of this commitment, the World Bank is working with the
CEE countries in identifying and funding cost-effective solutions
to their most critical environmental problems. More than fifty
environmental projects and projects with environmental
components
are currently under preparation for possible World Bank
financing. This complements efforts to assure successful
implementation of the ongoing projects.
CONTINUING TO Focus ON HEALTH IMPACTS
Damage to human health from environmental hazards is the most
important environmental concern for CEE countries. Because of the
scarcity of resources, future investments in environmental
improvements will continue to focus on eliminating or reducing the
most acute environmental health problems.
Addressing Existing Problems. Comprehensive reviews of
environmental hazards in CEE countries have identified three
overall priorities: lead and heavy metals pollution, airborne dust
and sulfur dioxide, and drinking water contamination. Individual
CEE countries are ranking these and other priorities in accordance
with their unique features as they develop their own NEAPs and
identify concrete measures for the coming years. The challenge is
to help translate national priorities into discrete policies,
restructuring actions, and investment projects.
In implementing this complex task, the World Bank can assist the
CEE countries in project identification and preparation based on a
systematic assessment of NEAPs. An example is a pollution abatement
project under preparation in Bulgaria aiming to reduce emissions
from a copper smelter, substitute natural gas for coal in urban
areas, and sig-
The Challenges Ahead 14
-
nificantly cut down airborne lead emissions by the promotion
ofunleaded gasoline. This project grew out of the Ministry
ofEnvironment's systematic review of its environmental strategy,
assisted in part by the World Bank.
The World Bank will continue to support sustainable economic
policies that lead to restructuring old, polluting industries in
the CEE countries. Ongoing enterprise reform programs will improve
the environmental performance of operating enterprises or provide
least-cost mitigation of environmental liabilities in case of
downsizing and closure. Specific World Bank assistance for these
programs will support environmental audits and financing of
least-cost environmental improvements and mitigation measures.
In the Ukraine, for example, the World Bank is assisting on the
restructuring of the energy sector and is preparing several
projects that will offer benefits in terms of energy conservation
and pollution abatement. The International Finance Corporation, the
member of the World Bank Group that promotes private sector
development, is investing in the modernization of a large cement
plant in Estonia that is responsible for onethird of all
particulate emissions in the country. Implementation of the project
is expected to reduce plant emissions by 98 percent, as well as
generate significant economic benefits for the region.
Responding to Emerging Concern. The rapid econmic and social
changes in the CEE countries are resulting in new environmental
pressures and threats to public health. In particular, the amount
of pollution from vehicles and from small- and medium-size
enterprises is increasing, creating new challenges for pollution
management.
One example of the changing pollution pattern is the shift from
point to nonpoint sources of airborne lead emissions. With the
increase in automobiles and decrease in certain heavy industrial
production, vehicular traffic is becoming the main source of lead
pollution in the region-accounting for as much as 84 percent in
Hungary, 61 percent in BUlgaria, and 40 percent in Poland. Ongoing
investigations supported by the World Bank are focusing on
projections of traffic growth, emissions, health impacts on urban
populations (particularly lead-related effects on children), and
the feasibility and costs of reducing the lead content of gasoline.
The results of these studies will help define new investments
throughout the region. Projects are already in preparation for
Bulgaria and Romania.
The emerging private sector is the key source of growth, income,
and employment in the CEE countries. Private, primarily smaIl- and
medium-size firms, however, are also fast growing sources of
pollution. Emerging production patterns are shifting pollution
emissions from large to small sources. In many countries, the
environmental management system is illequipped to deal with a large
number of these relatively small-scale polluters. The challenge,
therefore, is to assist in developing and implementing effective
regulations and voluntary compliance practices for the expanding
private sector.
The World Bank and other donors will support the environmental
authorities in the CEE countries in developing better monitoring,
regulatory and enforcement capacity to cope with chang- . ing
pollution patterns. Through assistance to the financial
intermediaries in the CEE countries and through invest-
The World Bank and the Environment in Central and Eastern
Europe: 1990-1995 15
-
ment projects, the World Bank and the IFC will support the
adjustment of the business community to environmentally sound
financing of private sector development and help small- and
mediumsized businesses adapt to national environmental
requirements. The World Bank will assist the CEE countries in
removing barriers to privatization caused by poorly defined
liability for past pollution. In addition, the IFC will provide
both debt and equity financing
to the private sector for investments in environmental
improvements.
Addressing Local, Regional, and Global Concerns. While the EAP
places importance on local environmental problems, it also points
out that solutions to many of these problems will simultaneously
bring about regional and global improvements. For example, a
project in Slovenia contributes at once to local, regional, and
global reductions in air pollution (Box 12).
Box 12. Local and global benefits are achieved through
innovative financing of pollution reduction in Slovenia.
Slovenia's priority environmental concern is reducing ambient
levels of dust and sulfur dioxide in its largest cities and towns,
especially during the winter. The primary cause of this pollution
is the use oflow quality coal by households and small boilers. The
World Bank-financed
Environment Project will establish an Air Potlution Abatement
Fund as a trust fund managed by the Slovenian EcoFund. The fund
will be used to finance conversions from coal to gas or
district
heat. Eligibility for conversion loans will be restricted to
households in municipalities that have
high levels ofair pollution in winter and which have adopted
appropriate smoke-control regulations. 11 is anticipated that the
problem of air pollution from household heating and small boilers
wlll be
largely solved within a period of six to eight years. The
project (with a World Bank loan ofUS$24 million) is expected to
yield an economic rate of return of about 17 percent excluding
environmental
benefits. or more than 40 percent including the health benefits
of reducing air pollution. At the same time, the project will make
a contribution 10 meeting Slovenia's sulfur reduction targets under
the Second Sulfur Protocol.
ENHANCING PARTh'ERSHIPS
The people of the CEE countries will make the decisions, finance
the investments, and reap the benefits of an improved environment.
In their efforts to reverse environmental degradation they will be
assisted by many partners, including the World Bank, other IFIs,
bilateral donors, and private investors. The challenge is to
coordinate and utilize the comparative advantages of each partner.
For the World Bank, theco~e of its mandate is to serve as a lender
of last resort and use its financing to leverage additional
resources.
Blending External and Domestic Financing. Blending bilateral
grants and loans in well-designed financial packages on a
project-by-project basis is conventional practice for the World
Bank. In the case ofenvironment, where blending is applied
selectively to compensate for transitional and environmental
externalities, the World Bank will ensure efficient use of both
grant and loan resources. A new challenge is to extend the practice
of blending to domestic environmental financial intermediaries
(e.g., national or municipal environmental funds).
The Challenges Ahead 16
-
To meet this challenge, the World Bank will support a
partnership among eEE environmental funds, IFIs, and bilateral
donors to utilize their comparative advantages. Under such a
partnership, the funds would build their capacity for bottom-up
project identification and small-scale financing; the World
Bank and other IFls would facilitate access to long-term
capital; and the donors could provide grant financing (for
strengthening the funds, for project preparation and for
grant-eligible investment activities). An example of a multilateral
partnership is the geothermal project in Poland (Box 13).
Box 13. Developing alternative energy sources in Poland is being
accomplished
through publidprivate ownership and donor co-financing.
The Geothermal and Environment Project in Podhale (Poland) will
introduce affordable geothermal energy to the heat and hot water
supply of some 15,000 consumers in four towns in the Podhale region
over the next five years. The substitution of geothermal energy for
coal and other fossil fuels is expected to reduce economic damage
and health problems caused by air pollution. Pollution levels,
which currently exceed Polish and EU air quality standards, are
expected to drop by 75 to 80 percent once geothermal energy has
replaced the use of coal. Estimates suggest that there is
sufficient geothermal potential to supply hot water and heating for
the next 100 years.
The work will be overseen by Geothermia Podhalanska, a mixed
private/municipality owned company founded in 1993 to manage the
daily operations and new investments of the geothermal project. The
World Bank is contributing 45 percent to the financing of the
project. This loan ofUS$55 million will cover primarily the foreign
exchange costs. The Polish National Environment Fund and the
ECOfund are also financing the project with both loans and equity.
The loan will be complemented by grants from international donors
totalling US$15 million, provided mainly by EU, Denmark,
Switzerland, the Netherlands, United States, and Germany.
Serving as a Facilitator and Broker. There are opportunities for
the World Bank to facilitate agreements between eEE governments and
private lenders or western donors with a common interest in
innovative environmental financing.
The challenge is to extend the World Bank's techn ical and
policy know-how to foster financing ofprojects for which donor
grants or private funds are more suitable than World Bank
loans.
The World Bank will make available its expertise, on demand and
where practical, for non-lending services to the eEE counties,
donors, and the private financiers. For example, the World Bank can
provide guarantees to mitigate specific political risks, thus
encouraging private lenders to support environmental investments.
Also, World Bank expertise can be applied to facilitate bilateral
agreements on environmental financing, such as was done for
Bulgaria'S debt-for-environment swap (Box 14).
The World Bank and the Environment in Central and Eastern
Europe: 1990-1995 17
-
Box 14. The World Bank helped facilitate a
debt-for-environment
swap between the governments of Switzerland and Bulgaria.
Debt-for-envirorunent or debt-for-nature swaps represent a type
ofdebt-equity swap involving
the purchase of developing country debt at a discount rate on
the secondary market and its redemption in return for increased
environmental spending in the debtor country. Since they were
first introduced in an agreement between a U.S. NGO and Bolivia
in 1987, these swaps have been
used by many indebted countries to reduce their external debt
while they mobilized resources for environmental protection.
Rooently the BAnk Ilssisted the Swiu and the BU!j!;itrlan
Cklvemment8 in nelotilltinl {I bUliterll! debt·foNlfIvironmefit
8wap agreement for ~O million SPr (~O pefllimt of the Bulgllrilm
offieilll debt to Switzerland). The World Bahk is supporting the
estabHshmeht of an earmarked
environmental fund for managing the Swap Funds, for staff
training, and for the development of
its initial portfolio.
The Bulgarian-Swiss swap accord is notable for setting up
spending priorities in the context of the EAP. The deal defines
spending objectives which correspond to national environmental
priorities, particularly addressing pollution with severe
impacts on public health.
* * *
The past six years have demonstrated the challenges, efforts,
and progress made
by the CBB countries to improve the environment. It was clear
from the start that environmental improvements were linked with
economic and social changes, and problem priorities had to be
balanced with the availability of resources. During this short
period, the World Bank has assisted the people of the CBB countries
in realizing their goal for a better environment, and remains
committed to continuing this important work.
The Challenges Ahead 18
-
-l ANNEX I • SELECTED WORLD BANK PROJECTS (1990 • 1995)
if ~ ::l. Q. t;O
~ X"'
~ Q.
~ ttl ::I
I '" §'
::i' Qg a
i ~ Q.
:3 ttl c a
1'! .."
~ :g \.1\
-\0
Year Country Project Tille IRHD/IDA
Loan/credit US$million
Total Project Cost
US$million
Co-nnanciers/ Donors (as or appraisal)
Indicated Amollnt Technical Assistance!
Co-financing rrom Donors US$million
Environmental Objectives
1995 Estonia Environment I • Haapsalu and Matsalu Bays 2 8
Sweden Finland
Denmark EU PHARE
4 Environmental management project ror coastal areas of wcsoorn
Estonia, rehabilitation 01 w.oor
and wastewater system, and institutional strengthening
1995 Latvia Liepaja Environment Project 4 21
NEFCO Sweden Finland
Denmark EU PHARE
12 Promote environmentally sustainable management of
reduce discharge ofwaswwater and enhance water quality in
improve water supply and sanitation
1995 Lithuania Klaipeda Environment Project 7 23 Sweden
Finland
EU PHARE 9
Promote environmentally sustainahle management of coastal zone,
reduce discharge of wastewater and enhance water quality in
Kiaipeda, improve water supply and sanitation
1995 Poland Katowice Heat Supply 45 93 None 0 Enhance energy
conservation and efTkiency or district healing. ~habiUtation or
asSets and introouction
ormroem technologies, reduction of environmental pollution,
energy seclor resl.rocturing
1995 Russia Environmental Management 110 195 Switzerland
United Kingdom 8
-----
Strengthen institulions for natural resource management, improve
management systems, and policy formulation and implementation
1995 Russia Emergency Oil Spill 99 140 EBRD 25 Oil spill
mitigation, containment and cleanup, pipeline rehabilitation
1994 Estonia District Heating Rehabilitation Project 38 64
Sweden
EIB 18 Energy efficiency 01 district heating systems,
improvement of environmental conditions,
institutional support, and energy ,.cUlr restructuring
project
1994 Poland Forest Development 146 335 EIB Bilateral Agencies 43
Sustainable forest management practites, increase the vitality of
forest stands, genetic conservation, soil
ero;ian prevention, m.odernization orrnanagement operations and
equipmenl
1992 Czech Republic Power and Environmental
Improvement 246 558 None 0 Air pollution reducUon in the
Prunerov power plant
through desulphurization equipment installation
1991 Poland Heat Supply Restructuring and Conservation 340 619
EBR!) 50 Energy "";W restructuring, privatization and
commercialization, energy con",rvation, district
heating assets rohabilitation, environmental pollution
reduction, technical assistance and training
1990 Poland Environment Management 18 27 None 0 Decentralized
environmental management, establishing institutional and
informational
basis for comctive actions, W:hnical assistance
1990 '----
Poland Energy Resource Development 250 616 EIB 6il Improve
convertihle currency earnings by increasing gas production and
energy conse"ation,
reduction of environmental pollution, improve regulaUlry and
institutional framework
TOTAL 1,305 2,699 229
-
Projects with a Specific Environmental Component tv o
:... ;, ;,
~ .... ~
[ ;;
~ ~ 0:,
'" ~ "1l OJ ~.
-
~ ~ S: tx1 ~ "" [ ~ W :So o " g g :r Q[ §
i "" :; ~ o ~ ::0 ~ ~ v.
Other Projects with Environmental Objectives
Year Country Project Title lBRD/IDALoan/ CreditUS$mWion Total
Project Cost
US$mtlUon Environmental Objectives
1995
r'--
1995
1995
1995
,--
1995
1995
1995
1994
,--------
1994
1994
1994
1993
-
Azerbaijan
Kazahkstan
Kyrgyz RA!public
Latvia
Lithuania
Russia
Ukrainian
Kazakhstan
Kazakhstan
Lithuania
Russia
Ruaaia
Bulgaria
Petroleum Technical Assistance Pruject
Financial and Enterprises Development Pruject
Private Enterpise Support
Enterprise and Financial Sector Restructuring
Enterpri3e and Financial Assistance
Urban Transport
Hydropower Rehabilitation and System Control
Petroleum Technical Assistance
Urban Transport Project
Power Rehabilitation
Second Oil Rebabilitation
Oil Rehabilitation Project
21
62
15
35
25
329
]]4
16
40
26
500
610
23
62
20
]]4
50
391
215
20
42
33
678
1,035
RA!habllitation of old onshore oil field. ensuring aU
environmental and safety standards are met; includes the
development of an environmental remediation plan for abandoning
uneconomic wells
ARA!habilitation Trust would take environmental procedures and
environmental UabiUty into account in decisions on fuuding
enterprise restructuring or liquidation;
commercial banks wiU be introduced to environmental
due-diligence procedu!'1Js
Provide assistance to develop a National Environmental Action
Plan. including revision of environmental regulations lIJ1d
development of institutional capacity for implementation of
such
regulations; sUbeomponent environmental risk assessment
included
Environmental subcomponent will support the estabUshmen! of an
environmental screening mechanism for the c!'1ldit component as
well as to dran legislation that will address the issue of
liability for pas! IlOliution for enterprises being
privatized
Environmental screening lU1d impact assessments will be
!'1Jquired prior to lending; environmental manual for banks will be
developed; institutional strengthening aud
environmental liability guldllJ1ce wiU be provided to the
government
Diesel powe!'1ld buses financed under the project wiU be less
polluting than the gasoline'powe!'1ld buses currently in operation;
vehicles imported to Russia are subject to environmental
certification in accordance with UN ECE relrr!lations
Increase the environmental performance of hydropower plants by
!'1lducing leakage and increase emciency; introduction of
automation and economic dispatch
will also lead Wa more emcient use of fossil fuel plants
The environmental assessment under preparation for the proposed
Uren Oil Field Project includes a review of environmental standards
in the industry aud identitY steps to
strengthen the regulation of envirorunentalllJ1d occupational
health in the industry
Old vehicles in project cities will be replaced new or
rebabilitated diesel buses which produce substantially less noise
and air pollution per bus; technical assistance will further
!'1lduce vehicle emissions as will inc!'1Jased trollev bus use
Management subcomponent wiU support training in tbe preparation
of environmental asseasmenis, and completion of environmental
monitoring; asbestos management, fuel spill
contingency. and air monitoring plans will be developed for the
power plants
Transfer intemalionaltecbnical, environmental and managerial
practice to the operation of oil fields in Western Siberia while
promoting amore emcient and environmentally
sustainable use of tbe country'S ootroleum !'1lSOurces Emphasis
will be placed on mitigating the environmental impacts of the
project itself; work toward improving the environmental management
capabilities of producer associationa und
C'Lrryi~out\lilot clean-up llrojects
Improvement of dam safety, and increase emciency, und reduce
energy losses, and subsequently carbon dioxide emissions; some
reforestation will occur in tbe area surrouuding the Cbaira dam1993
Energy Project 93 126
-
ANNEX II - SELECTED GEFIWORLD BANK PROJECTS
lEJ GEFProject Title Project Description Amount Focal
Development Belarus Biodiversity This project aims at oonser;ation
planning and research outreach
1.0 r-::Protection programs for the Belo¥Lithuania Klaipeda This
project helps to rmance construction ofa d.mon.tra~on geoIhennal
plant
I GlobalGeothermal to prO'/ide hot water to the KJpjpeda
district heating system, and modify 6.9 Warming Approved by
CunciI5/95.
I Demonstration the heating system t1 renaer It compatible with
geo~~ermally heated water. I
The projl'
-
Selected World Bank Publications ofInterest
Albania Environmental Strategy Study. 1993. Report No.
1784-ALB
Alternative Policies for the Control of Air Pollution in Poland.
1994. ISBN 0-8213-2753-4
Belarus Environment Strategy Study. 1993. Report No.
11926-BY
Bulgaria Environmental Strategy Study. 1992. Report No.
IOI42-BUL
Bulgaria Environmental Strategy Study Update and Follow-Up.
1994. Report No. 13493-BUL
Czech and Slovak Federal Republic Joint Environmental Study.
1992. Report No. 9623-CS
Economic and Ecological Benefits of Reducing Emissions of Sulfur
Oxides in the Sostanj Region of Slovenia. 1995. PaperNo. 009.
Environment and Health in Central and Eastern Europe. 1995. ISBN
0-8213-3173-6
Environmental Action Programme for Central and Eastern Europe.
1994. ISBN 0-8213-3179-5
Environmental Liability and Privatization in Central and Eastern
Europe. 1994. ISBN 0-8213-3181-7
Foreign Direct Investment and Environment in Central and Eastern
Europe - A Survey ISBN 0-8213-3180-9
Hungary Environmental Strategy Study. 1992. Report No.
I0882-HU
Kyrgyz Republic National Environmental Action Plan. 1995. Report
No. 13990-KG
Moldova National Environmental Action Plan.
1995. Municipal Wastewater Treatment in Central and Eastern
Europe: Present
Situation and Cost-Effective Development Strategies. 1995.
Report No. 12440-ECA
Poland Environmental Strategy. 1992. Report No. 9808-POL
Romania Environmental Strategy Paper. 1992. Report No.
I0613-RO
Ukraine Suggested Priorities for Environmental Protection and
Natural Resource Management. 1994. Report No. 12238-UA
W Printed in Bulgaria on Recycled Paper
