GEF PARTNERSHIP ON THE BLACK SEA - DANUBE BASIN An example of GEF leveraging regional stakeholder support for the clean-up of a common water body

The Black Sea Connected to the Mediterranean Sea by narrow (700m) and shallow (70m) Bosphorus Strait Depth exceeds 2km Replenishment of bottom waters can take hundreds of years Largest natural anoxic basin in the world due to bacteria at bottom Virtually dead below a depth of about 180m Surface waters support rich and diverse marine life Supports livelihoods of millions through fisheries, tourism and transportation route

Degradation of the Black Sea Catastrophic decline of ecosystem in recent three decades due to: –increased loads of nutrients from rivers –raw sewage, heavy metals, solid waste from coastal cities and oil spills –overexploitation of fish stocks –invasion of alien species Mnemiopsis leidyi Serious consequences for biodiversity, public health, fisheries, tourism and amenity values

The Black Sea Basin Almost 1/3 of the entire land area of continental Europe drains into the Black Sea –Danube, Dnieper, and Don Rivers –17 countries –13 capital cities –160 million persons –Intensively cultivated agricultural land Main sources and loads of nutrients –International rivers (229,000 t/y N; 40,000 t/y P) –Domestic and industrial point sources (148,000 t/y N; 8,700 t/y P) –National rivers (15,000 t/y N; 2,700 t/y P)

GEF SUPPORT Preparation work ( completed):  Environmental Program for the Danube  Black Sea Environment Program Transboundary Diagnostic Analysis Strategic Action Plans Implementation Process:  WB: Investment Fund for Nutrient Reduction (US$70M)  UNDP/UNEP: regional capacity building projects (US$25M)  EBRD: Slovenia Pollution Reduction Project (US$10M)  UNIDO: Transfer of Env. Sound Technology (US$1M)  UNDP: Building Env. Citizenship in the Danube (US$ 0.75M)

World Bank Standard Operations Practice Country Team with Government Country Team with Government CAS PROJECT GOV. CONTRI- BUTION LOAN PROJECT GOV. CONTRI- BUTION LOAN PROJECT GOV. CONTRI- BUTION LOAN PROJECT GOV. CONTRI- BUTION LOAN

Partnership Operations Practice GEF PROJECT GOV. GRANT Country Team with Government CAS Country Team with Government CAS PROJECT GOV. LOAN PROJECT GOV. LOAN PROJECT GOV. LOAN Regional Program Coordinator DONORGRANT DONOR

Value-added of GEF Partnership US$95M over several tranches will leverage US$180M of donor funds Catalytic effect: DABLAS as channel of donor funds –US$235million/year of EU ISPA and associated country funds to municipal hotspots in five accession countries over 4 years Countries have access to international best practice and expertise

Partnership Investment Projects Title GEF Grant Co-Funding Leveraged Ratio (GEF:Other) Under Implementation Bulgaria Wetlands Restoration and Nutrient Reduction : 0.8 Romania Agricultural Pollution Control : 2.0 Under Preparation Croatia Nutrient Reduction : 2.0 Hungary Nutrient Reduction : 2.0 Moldova Agricultural Pollution Control : 8.0 Moldova Rural Investment Support Services and APC : 6.0 Russia Krasnodar Agricultural Pollution Control : 1.4 Russia Rostov Reduction of Nutrient Discharges and Methane Emissions : 2.2 Slovenia Pollution Reduction (EBRD) : 4.5 Turkey Watershed Rehabilitation and APC : 8.8 Ukraine Integrated Coastal Zone Management : 2.0 Ukraine Azov Black Sea Corridor Biodiversity Conservation - APC Comp : 10 Total : 3.4

Case studies of different uses of GEF grant TURKEY - Integrated approach to agricultural pollution control SLOVENIA - Financial intermediation for reduced hazardous discharges UKRAINE - Inclusion of environment on the agenda of cash strapped local governments ROMANIA – Health benefits help leverage local contributions for nutrient reduction VARIOUS - Policy and legal revisions ALL - Awareness Raising

TURKEY – Integrated approach to agricultural pollution control Weak government approach to reducing NPS nutrient pollution: –No concerted effort –Lack laboratory capacity –Lack coordination among relevant agencies But, good experience with watershed rehabilitation: –Participatory approach addressing land degradation in upper watersheds and cross sectoral cooperation among rural services agencies. GEF funds used to: –Build capacity –Extend cooperation to environmental agencies –Enable extension of the successful integrated microcatchment management approach to lower watersheds in the Black Sea region

SLOVENIA – Financial intermediation for investments leading to reduced discharges High risk loans for small/medium municipalities and industries for improved production and treatment technologies –Financial Intermediaries do not have capacity for environmental assessment of sub-projects GEF grant provides: –Incentive for FIs to engage in such activities –US$45million to government from EBRD for on- lending to fund subprojects

UKRAINE – Inclusion of environment in cash-strapped local government’s agenda Difficult economic conditions and pressing social problems –environment not a priority on local policy makers’ agendas GEF grant funds: –investments in environmental rehabilitation financially feasible –triggered policy reforms leading to reduction of wastewater spills in the Black Sea

ROMANIA – Health benefits help leverage local contributions for nutrient reduction Health effects and nutrient leakages to the groundwater due to poor manure management GEF funds leveraged in-kind and cash contribution (appr. US$ 3 million) : –Central Government –USAID –Farmers –Calarasi county government

VARIOUS – Policy and legal reforms CountryPolicy / Legal Reform Moldova, Romania, Turkey Harmonization with EU Dangerous Substances Directive (Tur. and Mol. only) and Nitrates Directive Adoption of Code of Good Agricultural Practices Moldova Development of Water Quality Management Plan for Moldova –Ukraine Dnister River Basin Russia Phase-out of phosphate containing detergent use in households in Rostov City Ukraine Development of a Coastal Zone Management Plan and associated policy and legal framework

ALL COUNTRIES – Awareness raising Partnership Website: Regional Workshop on Agricultural Pollution Control – Good Practices (Poland, Sept. 2002) Distance Learning Network for the Black Sea/Danube Basin for efficient exchange of experiences/dissemination of information –First module: Network for Environmentally Friendly Agriculture in the Danube/Black Sea Basin

Conclusions Catalytic effect demonstrated Many successes already achieved Creative, innovative technologies, management practices and financing schemes Project pipeline robust: governments and donors on board Likely reduction in nutrients significant