“Remediation of Historically Polluted Areas in Sarkandaugava” Progress from April 2015 till March 2016

2 Topics of Presentation Project Territories Project Budget Progress - Site I and Site II Progress - Site III Planned Activities till Project End Factors Impacted Project Implementation Audit Recommendations Publicity and Swissness

3 Project Territories Site I (2,6 ha) - territory of “WOODISON TERMINAL” Ltd, “Ovi” Ltd and “Eko Osta” Ltd Site II (2,9 ha) - territory of “VL Bunkerings” Ltd Site III (2,5 ha)- territory of “OVI Riga” Ltd

Project Budget Project reserve is increased due to the savings in the Project and the Swiss franc exchange rate fluctuations. Due to the Project ammendments, it is possible to implement additional works for assuring sustainability in an approximate amount of: Site II ,60 EUR without VAT Site III – ,50 EUR without VAT 4

5 Progress - Site I and Site II  Remediation works are on-going according to the schedule and will be finished till the 28th of February,  According to the agreement and FIDIC regulations construction supervision is performed all period.  Surface-active substance injection in wells was performed.  Till the end of March (2016) 836 tons or 93% from target set in the Logframe of floating oil products in groundwater were pumped out.

6 Progress - Site III Remediation works are on-going according to the schedule and will be finished till the 28th of February, In June 2015 the construction permit was received and remediation works were started. According to the agreement and FIDIC regulations construction supervision is performed all period. In year 2015 there was made an age analysis of floating oil product samples in wells 1-I, 7-I,16-I, 17-II, 18-II, 19-II, 20-II. All sample analysis show that floating oil products are older than 20 years. Till the end of March (2016) 354 tons or 66 % from target set in the Logframe of floating oil products in groundwater were pumped out.

Planned Activities till Project End It is planned to complete legal services for additional activities according to the agreement. In summer it is planned to receive a construction permit for additional activities and start construction works and accordingly perform construction supervision. It is planned to complete all remediation works in Site I, Site II and Site III according to the technical specifications. It is planned to hold a Project steering committee meeting in June, October 2016 and February Publications about the Project progress will be inserted on the internet site. Publicity measure at the end of the Project will be held. 7

8 Factors Impacted Project Implementation After the pilot phase and estimation according to the report on additional investigation works by Intergeo-R 2015 it was clarified that Project proposal amendments should be made. The Remediation agreement amendments, according to the updated output indicators and potencial activities, which could be performed, if there is enough financing, were signed in March, Swiss franc exchange rate fluctuations have been monitored. Legal services are carried out to address infrastructure maintanance issues.

Internal Audit Recommendations According to the recommendations of the audit by the Ministry of Environmental Protection and Regional Development there were made improvements in such directions: Updated and fulfilled the Internal Control System description. Increased and improved monitoring of the financial flow in accordance with the CHF exchange rate fluctuations. The Project Implementation agreement is updated and amendments signed according to the recommendations. 9

10 Publicity and Swissness  On 14th May, 2015 there was a TV story about the project in "Rīga TV 24".  The information on the Project was placed on the SES website.  On 25th August, 2015 there was publicity measure on the Site III territory with participation of non-governmental organizations and media.  On 6th September, 2015 there was a radio story on LR4.  There were 17 publications in different media, for example, Dienas Bizness, Neatkarīgā avīze and others.  The Swiss expert provided consultations about additional activities

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Thank You for attention! Contact information Klāvs Brangulis State Environmental Service E ‐ mail: