European union strategy for the danube region eusdr a world bank perspective
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European Union Strategy for the Danube Region (EUSDR) -- A World Bank Perspective. High-level Meeting on Financing Belgrade, September 27 th , 2010. EU Strategy for the Danube Region. World Bank welcomes regional initiative and will endeavor to support

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European Union Strategy for the Danube Region (EUSDR) -- A World Bank Perspective

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European union strategy for the danube region eusdr a world bank perspective

European UnionStrategy for the Danube Region (EUSDR) --A World Bank Perspective

High-level Meeting on Financing

Belgrade, September 27th, 2010


Eu strategy for the danube region

EU Strategy for the Danube Region

  • World Bank welcomes regional initiative and will endeavor to support

  • Regional/ Trans-boundary programs tend to generate special benefits:

    • Better prioritization of investments (eg. trade)

    • Economies of scale (eg. power production)

    • Addresses connectivity (eg. transport)

    • Least-cost investments at regional scale

    • Reduces negative externalities (downstream effects)

    • Identifies win-win investments

    • Allows to integrate protection and productive uses

  • Builds mutual trust


Eu strategy for the danube region1

EU Strategy for the Danube Region

However, adds complexity (and implementation risk):

  • At end of day, country must confirm priority (Parliament, MoF, Sector Ministry, …) and commit its resources for investment and for recurrent budgets

  • Often mis-match between national and regional priorities (eg. wastewater vs. water supply; transport and navigation interests, etc.)

  • Need to synchronize implementation time-line between countries

     From “Strategy” to “Implementation Strategy”


Eu strategy for the danube region2

EU Strategy for the Danube Region

  • 2009 WB Independent Evaluation Report: “benefits can be reached if program well prepared and managed”

  • WB can contribute experience, eg. from

    • Greater Mekong Sub-Region: road transport, hydropower, power trade, fisheries and nature, flood management, labor mobility

    • Nile Basin: hydropower, irrigated agriculture, ecosystems

    • E Africa: Zambezi hydro, Regional Telecoms Facility

    • S and C America: trade, rivers and aquifers, etc.


Wb operational experiences

WB Operational Experiences

  • Over past decade fiscal absorption capacity was low

    • Finance is not limiting factor, implementation capacity is !

  • Need more robust prioritization of investments

    • Across national budget, among sectors (eg. road vs. shipping)

    • Strategic action plan with high-priority “next steps” (not: dream list)

  • Need more investment realism  “bankable” propositions

    • Cut costs, then cut them again

    • Rigorous economic and financial feasibility analysis

    • Proper safeguards: social and environmental

    • Procurement, designs, permits … adequate preparedness?

    • Financial and institutional sustainability – secure 100% O&M budget


How could wb collaborate

How could WB collaborate?

  • WB will be willing to collaborate at level of the initiative

    • Will consider making available staff resources and TA

  • WB can bring comprehensive set of capacity building and knowledge products :

    • Policy analysis and advice, Public Expenditure Reviews

    • Multi-stakeholder Dialogue platforms

    • Management and investment strategies

    • Analysis on trade-offs between “productive” and “protective” investments (nature values)

    • Robust planning under climate change scenarios (eg. work with Sava and International Danube River Commissions)

    • Support for fiscal and administrative reform


  • How could wb collaborate1

    How could WB collaborate?

    • WB ready to consider how its finance can further support EUSDR

       investment program is agreed through 5-year Country Strategic Partnership with MoF in lead

    • In most country programs, already substantial investment that would fit EUSDR

    • Blend of grant and loan most effective

    • WB is complementary to EIB and other financiers (eg. Roads packages in Serbia)


    How could wb collaborate strategic priorities

    How could WB collaborate? Strategic priorities

    • Support national development (based on CPS )

    • Assist country to meet EU acquis or prepare for EU accession, e.g.:

      • Croatia, BiH: Establish Pay Agencies to receive agricultural funds

      • Croatia, BiH: Strengthening for Natura 2000 and Water Management

      • Bulgaria, Croatia: strengthen implementation capacity in selected sectors

      • FYR Macedonia, Croatia and others: prepare for Environmental Chapter (especially Water Framework Directive)

      • Romania: Functional Review of sectors


    How could wb collaborate strategic priorities1

    How could WB collaborate? Strategic priorities

    • Make arrangements to help absorb Structural Funds and IPA funds, eg.

      • Poland: Odra Flood Protection (2007-2014): €505M -- 1/3 CEB, 1/3 EU Cohesion funds, 1/3 WB funds

      • BiH: Sava Navigation, Neretva River Basin Mgmt

      • Serbia: IPA 2011 R&D and Innovation Project ; Multi-donor TF

      • Etc.

    • EUSDR offers new framework and opportunity to achieve this


    European union strategy for the danube region eusdr a world bank perspective

    Thank you

    Hvala !


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