Lessons learned from networking: Northern Dimension Foundation (Kaliningrad, Russia) and Sustainable Sweden Southeast AB (Kalmar, Sweden) Presentation by Lina Kramen, NDF Workshop: Sustainable Baltic Sea as a business model DG Regio/Tillväxtverket/Sida/Region Skåne Conference: ”Smart specialisation and growth in the Baltic Sea Region”, 5-6 April 2011 In my presentation I would like to share with you our experiences of networking and becoming an important link in this network by virtue of our fruitful cooperation with Sustainable Southeast Sweden AB.

Kaliningrad Region is the most western point of the Russian Federation situated on the coast of the Baltic Sea surrounded by EU-member countries http://eur-lex.europa.eu/LexUriServ/site/en/com/2001/com2001_0026en01.pdf

Kaliningrad Oblast, Russia, in transboundary regional cooperation Euroregion Baltic (DK/LT/LV/PL/RU/SE) Euroregion Saule (LT/LV/RU) Euroregion Nemunas (BY/LT/PL/RU) Euroregion Sheshupe (LT/PL/RU/SE) Euroregion Lyna-Lava (PL/RU) As the major subject of our conference is the Baltic Sea Region within the framework of the European Union’s contributions to regional growth I would also like to mention that though Kaliningrad region is the part of a non-EU member country it is also an integral part of five Euroregions

Who we are? Northern Dimension Foundation was founded as a Non-profit Foundation for Project Preparation and Implementation within the Northern Dimension Environmental Partnership in Kaliningrad in 2006. Northern Dimension Foundation was founded as a Non-profit Foundation for Project Preparation and Implementation within the Northern Dimension Environmental Partnership in Kaliningrad in 2006 on the joint decision taken by the Ministry of Finance of Russia, the Government of Kaliningrad Oblast, the City Hall of Kaliningrad and international financial institutions, such as Northern Dimension Environmental Partnership and European Bank for Reconstruction and Development. We are working for encouraging Russian and foreign investments for project implementation in Kaliningrad Region as well assisting to municipal, regional and federal executive authorities and structures in project preparation and implementation in the environmental sphere.

What we do? Implementation of investment projects under Kaliningrad Water and Environmental Services Rehabilitation Programme that has been developed and is financed by: EBRD and NIB (international loans), DEPA, NDEP, NEFCO and SIDA (grant funds), The Government of the Russian Federation The Government of Kaliningrad region, Kaliningrad City Administration Project organizations MUE KH Vodokanal (Water and Waste water) and MUE Kaliningradteploset (District Heating). Project assistance and coordination in the exchange projects in the waste water treatment sector financed by Baltic Sea Unit, SIDA. Kaliningrad Water and Environmental Services Rehabilitation Programme is based on the Northern Dimension Environmental Partnership Project of the same name that has been underway in Kaliningrad since 1999 and at present consists of two components: water and waste water component and district heating component.

Initiative: Northern Dimension Foundation (Kaliningrad, Russia) Financial support: Baltic Sea Unit, SIDA and Swedish Trade Council Since wastewater treatment as well as water supply is one of the most urgent environmental problems in Kaliningrad Oblast and still remains unaddressed in many smaller settlements of the region in 2008 NDF asked BSU for assistance in finding relevant Swedish stakeholders for implementation of the projects in this sphere. During October 2008-2009, the Swedish Trade Council performed a mapping of potential partners while we selected those municipalities where Wastewater treatment plants were planned to be constructed in the nearest future. The target group in these municipalities are administration officers and employers of Water Management Companies. As a result we found Ozerki and Znamensk rural settlements to match SSSE and its member municipality Vimmerby. In June 2009 we decided to initiate cooperation.

Project: Knowledge transfer within waste water treatment between Kaliningrad and Southeast Sweden (2009-2010)

Overall project objective To create the basis for long term cooperation and experience exchange between Russian and Swedish partners.

Project participants From Swedish side: Sustainable Sweden Southeast AB – project owner and co-ordinator Vimmerby municipality Vatten och samhällsteknik AB From Russian side: Northern Dimension Foundation – local project co-ordinator Znamensk Rural Settlement Adminstration Ozerki Rural Settlement Administration Possibility for the representatives of Russian municipal administrations to make a contact not only with their colleagues from Swedish municipality but also with the technical specialists working in WWT sector in Sweden.

Project activities Technical visits Workshops E-mail correspondence

Problems and challenges Frequent personnel rotations in local municipal administrations Low administrative and technical competence Limited possibilities for decision-making Limited local budgets (strong dependence on Oblast/federal level), lack of knowledge about possibilities for investment attraction Poorly developed technical infrastructure Lack of experience in project cooperation with foreign partners Not always clear understanding of project objectives

Project outcomes Increased awareness about rational water use and sustainable processes for waste water treatment Enhanced knowledge about modern WWT solutions applicable for local conditions Finding ideas for a new sustainable investment planning New knowledge about administration and economic organisation of the waste water treatment sector in Sweden giving inspiration to initiate local reforms

Project outcomes Improved competence in the WWT sphere Gained opportunity to develop established contacts Improved skills of working with foreign partners in the sphere of environmental project cooperation Contributing to stronger environmental cooperation in the Baltic Sea region covering the area of a non-EU member.

Moreover… Cooperation between Russian and Swedish partners also developed into networking through two project coordination entities - Sustainable Sweden Southeast AB (Kalmar, Sweden) and Northern Dimension Foundation (Kaliningrad, Russia).

Background In June 2010 Northern Dimension Foundation launched an information campaign within the framework of the international tender for supply of technological equipment for Kaliningrad Waste Water Treatment Plant being under construction. The contact with Sustainable Southeast AB allowed us to attract Swedish companies to participate in the tender.

Networking scheme As a result the following networking scheme appeared and in November 2010 we assisted in signing the contract between MUE KH “Vodokanal” of Kaliningrad and Purac Läckeby Water AB for the amount of about 2 million euro. The contract is financed by SIDA grant funds. Moreover, at present we are in the process of evaluation of some more tenders financed by NDEP and SIDA grant funds and in the nearest future hope to have a pleasure to announce some more contracts awarded.

Benefits for all parties involved A new business opportunity for Swedish enterprises resulting in a commercial profit Introducing Swedish products and technical solutions to a new market Experience of working in a different business environment Stronger competitive capacity

Benefits for all parties involved Higher professional competence, possibilities for learning and information exchange Ensuring Kaliningrad WWTP good performance by installation of modern and high quality equipment Higher investment potential and thus possibilities for economic growth for Kaliningrad region Improving waste water treatment in Kaliningrad city and thus contributing to a better environment in the Baltic Sea Region in a long-term perspective.

Lessons learned Networking, making new contacts, developing strategic partnerships and cooperation Continuous learning and competence upgrading Necessity of a more open perspective-oriented approach Developing flexibility in project management Improving our role as an intermediary facilitating communication between the parties involved

Future Developing our contact network further Further cooperation in environmental and business spheres Finding new investment possibilities for Kaliningrad Region Initiating new projects Continuing putting the environmental issues high on agenda on the regional and local administrative levels

Thank you for attention. Our contact details: Thank you for attention! Our contact details: Northern Dimension Foundation tel. +7 4012 34 77 51 Basseynaya 53, fax. +7 4012 34 77 50 236010 Kaliningrad ndf.office@kaliningrad.ru Russia