GEF PARTNERSHIP ON THE BLACK SEA - DANUBE BASIN

1. 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

3. 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

4. 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

5. 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)

6. 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)

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

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

9. 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

10. Partnership Investment Projects

11. 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

12. 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

13. 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

14. 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

15. 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

16. VARIOUS – Policy and legal reforms

17. ALL COUNTRIES – Awareness raising • Partnership Website: www.worldbank.org/blacksea-danube • 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

18. 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 Conclusions