G l o b a l E n v i r o n m e n t F a c i l i t y
GEF/C.27/Inf.6
October 18, 2005
GEF Council
November 8-10, 2005
GEF DANUBE/BLACK SEA BASIN STRATEGIC PARTNERSHIP
INTERIM PROGRESS REPORT
Table of Contents
I.
Introduction......................................................................................................................... 1
II.
Background on the Strategic Partnership............................................................................ 2
III.
Progress in Meeting Objectives of the Strategic Partnership.............................................. 4
IV.
Progress with World Bank Investment Fund For Nutrient Reduction.............................. 10
V.
The Strategic Partnership and Adaptive Management: November 2004 Mid-Term
Stocktaking Meeting and Mid-Term Regional Project Evaluations ................................. 11
VI.
Mid-term Evaluations: Black Sea and Danube UNDP Regional Projects........................ 13
VII.
Results and Outcomes--Danube and Black Sea Nutrient-Related Environmental
Status
Improvements......................................................................................................... 15
Annex I.
Interim Progress Report
Annex II.
Interim Progress Report: Summary Report on Mid-term Evaluations and
Stocktaking
Meeting
I.
INTRODUCTION
1.
At its May 2001 meeting, the GEF Council approved Tranche I of the Danube/Black Sea
Basin Strategic Partnership on Nutrient Reduction (GEF/C.17/7) in the International Waters
Focal Area. Subsequently, Council approved remaining tranches of the regional components of
the partnership as well as remaining tranches of the pilot investment fund component. This
report represents an interim progress report on this Strategic Partnership at mid-term of
implementation as scheduled in the original document approved by Council.
2.
This progress report was produced by the 3 GEF Implementing Agencies following a
scheduled mid-term Partnership Stocktaking Meeting. The mid-term meeting was organized by
the 16 participating nations through their Danube and Black Sea regional conventions with
participation by the European Union, all 3 GEF Implementing Agencies, GEFSEC, the new GEF
office of Monitoring and Evaluation (OME) and other organizations working on the partnership.
The Stocktaking meeting (held in Bucharest, Romania, November, 2004) was programmed to
allow participating nations and organizations to review implementation progress, coordination
modalities, and identify mid-course corrections. Such a participative Stocktaking is consistent
with the adaptive management philosophy of the International Waters Focal Area.
3.
This Strategic Partnership represents a test, a new mechanism for harnessing interagency
collaboration to meet country-driven needs while streamlining the GEF project cycle and
facilitating more rapid disbursement for agreed priority investments. Pilot efforts like this
benefit from mid-course corrections, and this interim report to the GEF Council details progress
as well as recent actions Implementing Agencies have taken to improve implementation.
4.
This paper consists of a short summary of progress at mid-term in implementation of the
Strategic Partnership. Several annexes produced by the Implementing Agencies include the
details on achieving partnership objectives, positive environmental responses in the Danube
River and the Black Sea, and specific outcomes from the mid-term Stocktaking meeting. While
the series of GEF International Waters projects in the Danube/Black Sea basin since 1991 can
not take overall credit for the measurable improvement in water quality, the countries and
partners have underscored GEF's important catalytic role in bringing all 16 countries together to
focus on national actions needed for the transboundary water system and in calling for attention
as part of EU Accession on the needed transboundary reduction of nitrogen and phosphorus
pollution. In fact, the EU highlighted the Danube program as a model for transboundary waters
governance in its report to the U.N. Commission on Sustainable Development in April 2005.
5.
Nowhere on Earth have such demonstrable water quality and ecosystem improvements
been observed in a large river and adjacent sea as in the Danube River/Black Sea system over the
last decade. In particular, nowhere has such nitrogen and phosphorus pollution reduction been
achieved as to reverse the documented dead zone of oxygen depletion in the Black Sea. Data
included in Annex 1 show that nitrogen emissions have decreased about 20% and phosphorus
almost 50 % in the Danube Basin the last 15 years. The results also show that GEF-funded
demonstration investments are complementing those of the EU and calling attention to
mainstreaming agriculture sector and wetland restoration measures into policies on all levels in
order to sustain the improvements. Similar actions as those supported by this GEF partnership on
1
nutrient reduction are needed elsewhere in both GEF and non-GEF recipient nations to restore
and protect coastal waters as noted by the GEF-funded Global International Waters Assessment.
II. BACKGROUND ON THE STRATEGIC PARTNERSHIP
6.
The GEF has funded regional projects for addressing water quality in the Danube River
Basin and the Black Sea since early in GEF's pilot phase. The participating countries in the
regional projects responded to the GEF Operational Strategy for International Waters by
producing a Transboundary Diagnostic Analysis (TDA) and a Strategic Action Programme
(SAP) consisting of country-identified policy/legal/institutional reforms and investments needed
to address the top transboundary concerns identified in the TDAs. These equivalents of enabling
activity projects in the International Waters Focal Area matured to the point that the 16
collaborating nations in the Danube/Black Sea Basin agreed in 2000 to move to implementation
of those Action Programmes consistent with the GEF Operational Strategy. The Strategic
Partnership approved by Council in 2001 represents a pilot test of GEF's strategy to harness all
3 Implementing Agencies in working together according to their comparative advantages to help
the countries address key transboundary concerns---in this case pollution from the nutrients
nitrogen (N) and phosphorus (P) with subsequent eutrophication of the lower Danube and the
Black Sea that has created many environmental and water use problems.
7.
There are 3 components of the Strategic Partnership:
(a)
The Danube Regional Project (DRP) implemented by UNDP. This is the third and
last in the series of GEF Danube Basin regional projects since 1991 with the 13
nations in the basin, including Austria and Germany. The project provides
technical assistance and capacity building for countries implementing the SAP
(now termed Joint Action Programme, JAP) for the Danube Basin with a focus on
nutrient reduction and was divided into 2 tranches by GEF in 2001 because of
resource limitations ($17 mil total). It focuses on policy/legal/institutional reforms
and includes associated finance for national projects for $1 billion in water quality
investments to accompany the reforms and involves the International Commission
for the Protection of the Danube River (ICPDR).
(b)
The Black Sea Ecosystem Recovery Regional Project (BSERP) implemented by
UNDP and UNEP. This is the third and final GEF regional project for the 6 Black
Sea littoral countries and it provides technical assistance and capacity building in
implementing the SAP with a focus on nutrient reduction. It was divided into 2
tranches by GEF in 2001 because of resource limitations ($10 mil total). It also
focuses on reforms; the UNEP element addresses regional legal frameworks for
pollution reduction and fisheries.
(c)
The Investment Fund for Nutrient Reduction (IFNR) implemented by the World
Bank. This test of innovative financing supports single country, single sector
investment sub-projects for nutrient reduction in the municipal, industrial, and
agriculture sectors as well as wetland/floodplain restoration. Council approved
funding in 3 tranches totaling $70 mil for the 6+ year implementation period.
Annex 1 describes modalities for the Fund in which concepts come on a rolling
2
basis consistent with Council-approved criteria, approval is delegated to the CEO,
and sub-project endorsement follows regular GEF processes.
The long-term objective of the Strategic Partnership is for all Danube/ Black Sea basin countries
to take measures to reduce nutrient pollution levels and other hazardous substances to such levels
necessary to permit Black Sea ecosystems to recover to similar conditions as those observed in
the 1960s. The intermediate objective of the Partnership includes the implementation of urgent
control measures by the 16 countries in the Danube/Black Sea basin to reduce discharges of
nitrogen and phosphorus to the Black Sea to levels at or below those observed in 1997. A key
aspect of the Partnership is to put in place sustainable governance and investment frameworks to
prevent the renewed ecosystem deterioration that might occur with the expected overall
economic improvement of the Black Sea Basin countries. Through the Partnership formulation
process, six objectives with indicators of success were adopted by the 16 nations for this
Strategic initiative for the six year duration of the Partnership. Section III reports on progress
toward those 6 partnership objectives while Annex 1 presents a more detailed summary.
Overview of the Danube/Black Sea Basin Strategic Partnership on Nutrient Reduction
FOUNDATIONAL WORK SAP IMPLEMENTATION - STRESS REDUCTION MEASURES
1991 2001 2001 - 2010
Black Sea Basin
Strategic Partnership on Nutrient Reduction
UNDP
Black Sea Basin Countries, the Danube and Black Sea Commissions,
Regional TDA-SAP
GEF, GEF IAs, EIB, EBRD, EU (Tacis, Phare, CASDE, SAPARD), others
foundational
Projects (4) in the Danube
and the Black Sea Basins
World Bank
UNDP
Partnership Investment Fund
Regional Projects within the framework
For Nutrient Reduction
of the Danube and Black Sea Commissions
In this initial phase, GEF joined forces
With related EU programs as a catalyst for
Demonstration Projects
Incorporation of nutrient reduction into
accelerated action. During this same period
Conventions
both the Danube and the Black Sea
Reforms, capacity building, replication
Conventions entered into force. As a result of
mechanisms
GEF action the main transboundary
concern nutrient over-enrichment, was
Sub-Projects
identified and agreed upon by the countries,
and specific Action Programs were endorsed
Dnipro River Basin
Agricultural reforms and practices
at interministerial level in all countries of the
SAP Implementation
Wetland restoration and/or construction
Black Sea Basin. This allowed the countries
Project
Tertiary waste water treatments
to move to the phase of stress reduction.
Clean technologies
Long Term Objective: Permit Black Sea ecosystems to recover to similar conditions as those
observed in 1960
Intermediate Objective: Maintain discharges of nitrogen and phosphorus at or below the levels
observed in 1997
3
III. PROGRESS IN MEETING OBJECTIVES OF THE STRATEGIC PARTNERSHIP
8.
Overall, the three components of the Strategic Partnership Danube Regional Project
(DRP), Black Sea Ecosystem Recovery Project (BSERP) and the World Bank Investment Fund
for Nutrient Reduction (IFNR) - have made substantial progress towards achieving the
immediate and long-term objectives of the Strategic Partnership. With strong linkages to the EU
Water Framework Directive, the two UNDP-GEF projects have played a lead role in facilitating
nutrient-reduction related legal, policy and institutional reform in the basin and to mainstreaming
these strategies for transboundary pollution reduction into national strategies and plans. The
World Bank IFNR is in the process of financing 14 demonstration nutrient reduction investments
in 10 GEF-eligible countries totalling US $83.27 m. in GEF financing and US $496 m. in co-
financing (ratio 6:1). These projects have been projected to deliver estimated nitrogen emissions
reduction of over 5.936 kt/yr (one thousand metric tons per year) and phosphorus reduction of
over 0.443 kt/yr. Overall completed and ongoing nutrient reduction investments in the basin total
US $3.294 billion and represent total nitrogen and phosphorus emissions reductions of an
estimated 25.85 kt/yr and 4.131 kt/yr, or 6 % and 33%, respectively, of recent (2000-2002
average) estimates of N and P loads to the western Black Sea.
9.
These data also underscore significant progress towards achieving and even exceeding
(for P) the intermediate objective of stabilizing Black Sea nutrient loads at 1997 levels, the latter
estimated at 415 and 20 kt/yr for N and P respectively. With regard to the long-term objective,
both the Danube and Black Sea ecosystems are showing initial evidence of recovery; the benthic
hypoxia (oxygen depletion) observed over broad sections of the western Black Sea in the 1970's
and 80's has been virtually non-existent in recent years (Figure 1) and bottom-dwelling species
diversity has roughly doubled from 1980's levels. While the observed recovery is prompted by
the economic collapse in central/eastern Europe in the early nineties (dramatically reduced use of
fertilizers and closure of numerous livestock facilities), the large nutrient reductions achieved
through the investments and governance reforms promoted through EU Accession, the GEF
regional projects, and the Strategic Partnership are certainly helping to sustain the water quality
improvements.
10.
The following paragraphs summarize mid-term progress toward the six partnership
objectives. An estimate of level of accomplishment of the objective is provided as a percentage.
Partnership Objective 1: Legal, Policy and Institutional Reform for Nutrient Reduction
Progress Estimate: 100%
11.
Four countries in the DRB (CZ, SK, SI and HU) have recently become members of the
European Union and three more (RO, BG, HR) are in the accession process. With assistance
from DRP, they have (or are in the process) of implementing a wide range of reforms aimed at
environmental protection that will have a positive impact on the Partnership's nutrient reduction
objectives.
12.
With DRP support, all countries in the Danube River Basin and around the Black Sea
have implemented or are in the process of implementing one or more new policies and
legislation which support nutrient reduction; eight or 57% of the GEF-eligible countries have
4
introduced multiple measures. Three countries (CZ, SK, SI) have declared all surface water
resources sensitive, thus requiring N and P removal for wastewater plants in communities of over
10,000 inhabitants. Within the Danube River Basin, three countries have already imposed
voluntary bans on phosphorus-containing detergents (DE, AT and CZ). With the assistance of
the GEF DRP, the ICPDR is actively encouraging a wider introduction of such a ban.
13.
Within the DRB the non-accession countries (CS, BA, MD, UA) have expressed
willingness to comply with specific directives, most notably the Water Framework Directive
(WFD) and to cooperate with other countries within the frame of the ICPDR. The key relevant
directives under the WFD include the Nitrates Directive, Urban Wastewater Treatment Directive,
Integrated Pollution Prevention and Control Directive, and Common Agricultural Policy (CAP)
reform. A summary of key environment legislation and implementation in the Danube Black
Sea Basin is provided in Annex 1, Section 2.1.
Partnership Objective 2: Investments in Nutrient Reduction
Progress Estimate: 100%
14.
Significant investment opportunities for nutrient reduction have been identified and
carried out throughout the Danube and Black Sea basins; 100% (16 of 16) of the participating
countries have made one or more investments in nutrient reduction during the first 3 years and 10
countries have accessed the World Bank's IFNR. The GEF/World Bank IFNR has supported
identification and preparation of 14 demonstration investments in 10 eligible countries totalling
$83.27 m. in GEF financing and $496 m. in co-financing (ratio 6:1). These projects have been
projected to deliver estimated nitrogen reduction of over 5,936 t/yr and phosphorus reduction of
over 443 t/yr. The latter figures represent approximately 20% and 10% of projected total
nutrient and phosphorus reduction, respectively, of all investments in the region (see Table on
the next page and Annex 1, Table 5).
15.
This demonstrates the significant catalytic contribution of investments through the World
Bank IFNR to overall nutrient pollution reduction in the Danube/Black Sea basin. As shown in
the summary table below, investments leveraged by GEF through the Partnership Investment
Fund concentrate on non-EU member countries, and are focused on less well addressed nutrient
control measures including agricultural nutrient reduction, tertiary elements of wastewater
treatment (WWT), and wetland restoration. Non-GEF investments cover almost exclusively
baseline WWT, and are largely concentrated in (new and pre-existing) EU member countries.
This demonstrates the incremental and complementary nature of GEF/World Bank investments.
The GEF interventions have called attention to important agricultural sources of nutrient
pollution and the importance of removing embankments so that floodplains may function
properly in sequestering nutrient pollution. This now needs to be mainstreamed in policies at all
levels during the final 3 years of the Strategic Partnership so that water quality improvement
gains will not be lost as agricultural policies move intensive farming to Eastern Europe.
5
Project Distribution by Investment Type and GEF vs. Non-GEF Funding
(includes non-GEF investments through 2005 and WB IFNR only)
NON-GEF FUNDING
GEF WORLD BANK IFNR
FUNDING SOURCE
($M US)
($M US)
PROJECT TYPE
AUSTRIA-
NEW EU
NON-EU
NON-EU
NEW EU
GERMANY COUNTRIES COUNTRIES COUNTRIES COUNTRIES
WWT (MUNI,
608.3 690.74 0.73 264.35 92.5
INDUSTRY)
AGRICULTURE/LAND
- - -
205.5 -
USE
WETLANDS
19.5 1.65 - 13.3
-
TOTALS 627.8
692.39
0.73
483.15
92.5
16.
To date, a total of 211 investment projects (all financing sources), representing a
combined total investment of US$3,294 million and estimated N and P reductions of 25.85 and
4.131 kt/a respectively have been implemented or are scheduled for completion in the
Danube/Black Sea basin within the next few years: The following table summarizes the
timeframe and estimates provided by participating countries for their commitments to action.
Total
Nutrient Removal, t/a
No. of
Timeframe
Investment
Projects
MUSD
N P
World Bank - GEF IFNR
14 576 5,936 443
(imple., prep, pipeline)
Non-GEF Investments
Completed by Dec 2003
56
803
5,351
1,013
Completed in 2004 and 2005
35
475
4,552
836
Completed after 2005
106
1,440
10,013
1,839
Sub-totals, Non-GEF
197
2,718
19,916
3,688
Totals: 211
3,294
25,852
4,131
17.
Roughly half of these investments are situated within the DRB EU member countries:
Austria, Germany, Czech Republic, Hungary, Slovakia and Slovenia. Municipal sector projects
account for the majority of the fully financed projects, and national co-financing provided over
50% of total municipal investments; external sources of investment financing include EU, World
Bank, EIB, EBRD and others. 12 projects involved wetland restoration with associated nutrient
6
reduction and habitat protection, and another 13 projects totaling US $78 m. have been
undertaken in the industrial sector. The GEF-UNDP-UNIDO Danube TEST programme has also
been very effective at promoting nutrient and other pollution reduction through transfer of
cleaner production technologies/strategies, while simultaneously enhancing profitability and
reducing resource consumption. However, land use reform and agro-industrial improvements
are as of yet not significantly represented in the EU-funded investment project pipeline.
Investments in Russia and Ukraine have also considerably increased in recent years, with 9
municipal projects due for completion in 2006 in Russia and 46 smaller projects in Ukraine.
Partnership Objective 3: Sustainable Multi-Country Institutions and Development of
Indicators Progress Estimate: 50%
18.
The Danube River Protection Convention came into force on October 22, 1998. The
International Commission for the Protection of the Danube River (ICPDR), its Permanent
Secretariat (PS) and its various permanent and ad hoc Expert Groups have now been fully
operationalized entities for a number of years and are considered institutionally and financially
fully sustainable. All countries are current in their pledged contributions to the ICPDR except
Bosnia and Herzegovina which only recently joined (and ratified December 2004) and Ukraine
for which 2003, 2004 and 2005 payments remain due.
19.
The Bucharest Convention was signed in 1992 and came into force in 1994. The
Convention provided the framework for establishment of the Black Sea Commission, its
Permanent Secretariat and support structures including (7) Activity Centers and various
Advisory and Working Groups. Following a lengthy negotiation process, the Permanent
Secretariat of the Black Sea Commission was established on October 2000. Regular payments of
contributions to the Black Sea Commission by all countries and its associated financial and
institutional sustainability have faced some challenges historically but Ukraine has recently
cleared past arrears. As of this report, only one of the six countries party to the Bucharest
Convention, Georgia, is still behind in their dues (5 pending payments). A strategy for securing
continued country and other contributions to the BSC is presently under development.
20.
Both projects have initiated development of International Waters indicators following or
closely adapted from the GEF M & E Indicators framework issued by the GEF M&E Unit in
2002. The Joint Technical Working Group (JTWG), formed to facilitate implementation of the
Memorandum of Understanding between the BSC and ICPDR, has agreed upon ecological status
indicators and reporting formats, taking into account implementation of the EU WFD in coastal
waters.
21.
The Danube basin has a fully operational monitoring station network (TNMN) and
protocols in place as well as an emissions database (EMIS). The ICPDR closely monitors and
tracks progress in investments in stress reduction through the Joint Action Programme and
monitored by its Emissions Expert Group (EMIS EG).
22.
The current BSERP includes further development of a comprehensive monitoring
program based on relevant chemical and biological indicators, and establishment of an
emissions/state database for point and non-point pollution sources within the coastal zone; these
7
represent significant progress towards establishment of both stress reduction and environmental
status indicators in the Black Sea..
Partnership Objective 4: Incorporating Nutrients and Toxics Reduction into Conventions
and their Action Programs Progress Estimate: 50-75%
23.
In the Danube, specific country commitments to nutrient reduction are being prepared
within the framework of the revision of the ICPDR Joint Action Programme (JAP, the follow-up
to the GEF-supported SAP). Approval of the EU WFD Roof Report at the December 2004
Ministers Meeting confirms the commitment from the 13 Danube River Basin countries in
adopting binding actions in reducing pollution to the Danube River in support of the ICPDR's
JAP. In the context of legislative reform, the four recent EU member states (CZ, HU, SI, SK)
are projected to be in full compliance with the EU Nitrates Directive by 2008 (and Romania soon
thereafter); nevertheless, enforcement of policies and legislation remains a challenge in both the
accession and non-accession countries.
24.
With assistance from UNEP, the BSERP has supported development and negotiation of a
Land-Based Activities Protocol to the Bucharest Convention which is presently under
consideration by the Black Sea Commission and proposed for adoption as early as 2007; a Work
Program to Enhance Implementation of the Black Sea LBA Protocol has been developed and is
ready for implementation. Lastly, the BSERP has advanced the development and negotiation of
a regional fisheries convention for the Black Sea.
Partnership Objective 5: Implementing Agency and Partner Mainstreaming of Nutrient
Reduction Progress Estimate: 75%
25.
Each agency participating in the Partnership has taken a number of steps to mainstream
the objectives of the Partnership into its core programmes and activities. UNDP is
mainstreaming and promoting replication of Black Sea and Danube programmes through its
Bratislava Regional Service Centre; several UNDP Country Offices are supporting integrated
water resources management, river basin management, and EU WFD approximation processes in
a number of Danube/Black Sea basin programme countries as well as in countries outside the
Danube/Black Sea basin addressing similar water resources management challenges. UNDP's
Regional Bureau for Europe and the CIS (RBEC) is presently developing a new strategic
approach for its water governance practice in Europe/CIS, building on UNDP's extensive
experience through the GEF with promoting transboundary waters management in this region.
The strategy will include knowledge management, community and capacity development,
regional and national-level programme development, partnership development and resource
mobilization. As part of this mainstreaming, RBEC has committed to fund the UNDP-GEF
Regional Technical Advisor (RTA) for International Waters & Land Degradation, and has also
mobilized external resources (LEAD) for a Water Governance Advisor who will support
development and oversight of GEF IW portfolio in the region.
26.
World Bank lending, including GEF grant-funded operations, in a country are based on
country assistance strategies (CAS) that are prepared every three years in partnership with the
government and the Bank and in consultation with national stakeholders. CASs lay out the
country's priorities for investment and policy operations that it would like to accomplish with
8
World Bank assistance over the next three years. Black Sea / Danube pollution issues have been
well integrated in CASs for Black Sea/Danube countries since the start of the Partnership. In
summary, since 2000, ten out of twelve new CAS that were prepared in the Black Sea/Danube
countries included a discussion of projects to be implemented under the WB GEF Investment
Fund. A summary of the CASs prepared since 2001 and their integration of nutrient reduction
and water quality improvement objectives is provided in Annex 1, Section 2.4 and Table 10.
27.
The EU ISPA programme is a key mechanism in providing technical and financial
assistance for environmental infrastructure improvements, such as municipal wastewater
treatment; N and P removal is earmarked for each of the ISPA assisted municipal projects in
Bulgaria. The EIB and EBRD have also been instrumental in helping to promote investment in
nutrient reduction throughout the region; for example, EIB have extended several loans for
tertiary treatment of municipal wastewater in CZ, and EBRD is working with EU ISPA on
improvements to the municipal sector. Other relevant EU mainstreaming initiatives include
TACIS (MO, UK, Black Sea), PHARE (cross-border environmental issues between HU, SK,
BG, RO), CADSE (land use, river basin management, infrastructure in Danube tributaries) and
SAPARD (agricultural reform in new/accession countries).
28.
In 2001, the DABLAS Task Force was established by the Environment Ministers of the
Danube-Black Sea region together with the EU, to facilitate coordination and prioritization of
pollution reduction investments needs within the region. The TF identified 354 known/planned
investment projects as part of its 2004 assessment, including 191 municipal, 77 industrial, 32
agro-industrial, 40 wetland restoration and 14 land use projects. Such projects with nutrient
reduction now need to be mainstreamed in the DABLAS Task Force process.
Partnership Objective 6: Integrated Management of Land and Water Resources in Sub-
basins Progress Estimate: 50%
29.
Sub-basin river basin management programmes have been developed or are under
development in the Sava and Tisza River basins for more detailed implementation of basinwide
approaches. The linked GEF-UNDP Dnipro River Basin programme has prepared a
Transboundary Diagnostic Analysis, Strategic Action Programme and draft legal agreement.
The SAP is in the process of being adopted by each riparian country and is expected to be
designated as the `action programme' under the river basin `Agreement'. Nutrient and industrial
toxics pollution are included as priority issues and actions in the Dnipro TDA and SAP.
30.
The Danube Regional Project is providing input to assist countries in developing policies
aimed at Best Agricultural Practices and is supporting wetland managers in the basin with
evaluation of nutrient removal capacities in wetlands. Both the DRP and BSERP have
implemented small grants programmes targeting nutrient reduction in agriculture, land use,
industry and households; to date the DRP has supported 63 projects totalling $600k and the
BSERP has approved 17 projects totalling $320k.. These programmes are essential for
harnessing community participation as part of the water quality improvement process. Integrated
Coastal Zone Management policies for the Black Sea were developed in 1999 with GEF support
as well. Based on this, the BSERP has made significant progress in assisting the countries in
developing a regional Integrated Coastal Zone Management Strategy which was approved by the
BSC in November, 2004. UNDP is also supporting implementation or development of five
9
wetlands conservation projects in RO, HU, BG, SK (2) within the Danube/Black Sea basin under
the GEF Biodiversity focal area.
IV. PROGRESS WITH WORLD BANK INVESTMENT FUND FOR NUTRIENT REDUCTION
31.
The World Bank Investment Fund for Nutrient Reduction (IFNR) is an integral part of
the Partnership, focusing on key investments in the region and is actively engaging other
stakeholders, including national and local governments, EU assistance programmes1, and IFIs in
co-financing nutrient reduction centred interventions.
32.
14 countries2 of the Black Sea and Danube Basin are eligible for GEF funding under the
Investment Fund. These are, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Georgia,
Moldova, Romania, Russia, Serbia and Montenegro, Slovakia, Slovenia, Turkey and Ukraine.
The IF portfolio includes 14 projects in 10 of these countries. Six of these projects are under
implementation and the rest at various stages of preparation. Table 4 provides a list of these
projects together with information on the status of project processing, GEF grant funding and co-
financing, and estimated N and P pollution reduction.
33.
The portfolio is well diversified among eligible areas of investment that were specified in
the Partnership Framework Brief. Specifically, there are seven Agricultural Pollution Control
(APC) Projects (in Croatia, Moldova, Romania, Russia Krasnodar, Serbia, Turkey and Ukraine);
one wetland restoration project (in Bulgaria), one ICZM project (in Ukraine) and five municipal
wastewater treatment projects (in Hungary, Bosnia, Moldova, Russia Rostov and Ukraine). It
should also be noted that some of the projects include more than one eligible element. For
example, the Moldova APC Project and the Serbia Enterprise Pollution Reduction Project also
support investments for reducing nutrient discharges from agro-industrial enterprises, such as
slaughterhouses and meat-processing facilities, in addition to proper farm nutrient management.
Furthermore, the Hungary Nutrient Reduction Project will support the restoration of wetlands in
the Danube-Drava National Park Gernenc of the Beda-Karapancsa Region. This reflects the
flexible nature of the IFNR that allows for tailoring project interventions to each country's
specific conditions with respect to nutrient pollution reduction.
Table 1: Summary of GEF/World Bank Investment Fund For Nutrient Reduction
Project Status (#)
Funding (US$ million)
Co-financing ratio
Estimated N+P
(GEF:Other)
Reduction
(tons/yr)
GEF Grant
Co-Financing N
P
(*)
Under Implementation
37.87 79.74 1:2 1,359-
218-232
(6)
1,954
Under Preparation(3)
21.5 140 1:7
4,577+
225+
Pre-Pipeline (5)
23.9 273 1:11 tbd
tbd
TOTALS
83.3 492.7 1:6 5,936+
443+
1 E.g. PHARE, ISPA, CARDS, TACIS, CADSES
2 Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Georgia, Hungary, Moldova, Romania, Russia, Serbia and Montenegro, Slovakia,
Slovenia, Turkey and Ukraine
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V. THE STRATEGIC PARTNERSHIP AND ADAPTIVE MANAGEMENT: NOVEMBER 2004 MID-
TERM STOCKTAKING MEETING AND MID-TERM REGIONAL PROJECT EVALUATIONS
34.
The Strategic Partnership was designed with an adaptive management approach including
two key tools for mid-course corrections: a mid-term Partnership Stocktaking meeting with
funding programmed into the Danube Regional Project, and independent mid-term evaluations of
each of the UNDP projects.
35.
The overall goal of the Stocktaking Meeting was for all countries and partners to: (a)
review progress of key Objectives and associated Indicators of Success established for the
Strategic Partnership, (b) present and analyse the results so far obtained against the SP indicators
and (c) identify and analyse problems and bottlenecks that may hinder efficient project
implementation. The meeting adopted a set of mid-course corrective measures for all parties in
order to improve the implementation of the Partnership towards its Objectives and adopted
recommendations for further reinforcement of cooperation in the Danube Black Sea Region.
Many of the analytical materials and outcomes of this meeting were used in the development of
this Progress Report to the GEF Council on the Strategic Partnership.
36.
The Stocktaking meeting identified eight Partnership implementation issues; gaps have
been analyzed and solutions have been proposed to assure efficient implementation of the
Strategic Partnership in its last 3 years of funding from 2005 to 2007.
Table 2: Stocktaking Issues and Responses
Gap / Issue
Response
1 Inter-ministerial
- Using existing mechanisms for coordination when
coordinating mechanisms
appropriate,
- Organizing high level consultation meetings with
governments to obtain commitment to establishing such
mechanisms,
- Filling gaps where required in improving existing or in
creating new mechanisms.
2 Reporting on progress of
- All Strategic Partnership partners will revise current
Strategic Partnership
progress reports according to issues discussed and will
objectives
report tangible results on:
o Adopting and implementing nutrient and toxics
reduction policies and regulatory measures (national
level), including Convention Protocols/Annexes,
o Implementing nutrients and toxics pollution
reduction investment projects (completed, in
progress) and reporting on actual/projected
nutrient/toxics reductions,
o Development of International Waters process, stress
reduction and environmental status indicators,
o Donor partner (WB, UNDP, EU, etc.)
`mainstreaming' of nutrient and toxics reduction
11
Gap / Issue
Response
commitments into their regular programmes,
o Reinforcing stakeholder involvement.
3 Sustainability of
- Accepting flexibility in payment of contribution
commissions /
(engagement of counties to meet their commitments before
functioning of secretariats
the end of the project),
- Broadening indicators for commitment taking into account
proactive cooperation of countries in expert group meetings,
participation in regional workshops, timely responding to
reporting requirements under the convention and
cooperation in GEF activities.
4 Partnership coordination
- Organizing coordination meetings: Project and task
managers from IAs, EC, WB, UNDP UNEP, Commission
Secretariats,
- Reinforcing inter-focal area cooperation / project
coordination: full scale annual meeting of all relevant GEF
projects (IW, LD, BD, POPs) working in the Danube and
Black Sea basin area,
- Establishing permanent dialogue between DRP, BSERP and
WB IF projects.
5 Replication
- Engaging the EU in continued financing of the pollution
control measures after the Strategic Partnership programme
will phase out as one of the important replication
mechanisms (one of the first issues to be discussed at the
partnership coordination meeting).
6 Public involvement &
- Developing communication and public participation
communication
strategies by the BSERP based on Danube experience to
strengthen public participation and broader stakeholder
involvement in Black Sea countries.
7 Indicators for monitoring
- Reviewing and revising when necessary the process
of progress in
indicators of the project log frames.
implementation of
Strategic Partnership
projects / Investment
Fund
8 Process, stress reduction
- Further reviewing and applying process, stress reduction
and environmental status
and environmental status indicators in the frame of the
indicators for the BSC
BSERP together with the BSC, including the need for
national process indicators (e.g. policy / legal / institutional
reforms which the countries would enact), before the end of
the project.
12
VI. MID-TERM EVALUATIONS: BLACK SEA AND DANUBE UNDP REGIONAL PROJECTS
37.
The UNDP Black Sea and Danube Regional Projects underwent independent mid-term
evaluations as per standard GEF and UNDP M&E procedures. The results and recommendations
of these MTEs are summarized below and further detail can be found in Annex 2. The
recommendations have been discussed with the respective project steering committees and have
been incorporated into the respective 2005-2007 work plans for each project.
38.
Key recommendations from the mid-term evaluation of the Danube project included:
a)
DRP to identify and promote agro-environmental support mechanisms under the
Common Agricultural Policy (CAP) and the SAPARD program
b)
In the work on wetlands rehabilitation and appropriate land use, attention should
also be paid to mixed-use opportunities and compensation issues, recognizing that
wetlands rehabilitation can restrict economic opportunities for landowner
c)
The current and proposed activities under industrial pollution control are not
aimed specifically at the DRP's central focus - nutrient reduction, and they fail to account
for efforts already underway in the EU accession states to transpose EU industrial
pollution legislation. MTE suggested a narrowing of the scope, to specifically focus on
nutrient loading, and the major industrial point sources within the Danube basin that
contribute significant nutrient and phosphorous loading (e.g. large scale agriculture, food
processing, pulp and paper, detergents).
d)
High priority should be placed on the planned workshop to discuss with industry
the phase out of phosphate detergents
e)
The inter-ministerial committee development effort is an important output,
requiring attention and financing still during the 2nd phase, and special emphasis needs to
be placed on engaging agricultural interests.
f)
Within the river basin planning efforts there should be room to engage with
spatial and regional planners in the countries to consider how economic development
aims and environmental protection aims can be reconciled.
g)
Consideration should be given to how the DRP can increase assistance to the
ICPDR and DABLAS task force in the prioritization, pre-feasibility preparation, and
dissemination of information on investment projects for nutrient reduction.
h)
Opportunities exist with current technologies to make the DRP and ICPDR web
sites more interactive and user friendly.
i)
Public awareness raising is an important objective during Phase 2. It is
recommended that a media package gets developed to help local efforts in each
participating country.
13
j)
For the new member states and accession countries, they are wrestling with public
access and reporting requirements across dozens of new statutes. Establishing the proper
mechanisms both legal and practical, to meet these obligations presents a real challenge
for participating countries that the project can help to meet.
39.
Key recommendations from the mid-term evaluation of the Black Sea project included:
a)
Revise elements of planned activities on ICZM, agriculture, industry and
municipal sectors to focus on legislative and regulatory reforms to improve water
resource protection, (harmonized with the WFD), and establish ICZM, (harmonized with
the European Marine Strategy).
b)
The development of ICZM strategies should drive the BSERP effort to promote
inter-ministerial coordination in each participating country
c)
Recognizing the extensive support offered to Romania and Bulgaria, and
increasingly Turkey, for approximation of the EU Environmental Acquis, the BSERP
should focus special attention on regulatory reform / capacity building in the non-
accession states (Georgia, Russia, Ukraine).
d)
The BSERP should assist the BSC to become a more effective and sustainable
organization, including providing funding for a management review of the BSC and its
subsidiary bodies.
e)
The BSERP should strengthen public awareness efforts and revamp the BSERP
communications plan.
f)
Project outputs related to fisheries should be reviewed, and a decision made by
the BSERP SC on whether to continue providing technical assistance. The decision
should depend on expectations for BSC approval of a new Black Sea Fisheries
Convention in 2005.
g)
Investment program development should be done in close coordination with the
WB IFNR, and should focus on small and medium investments in coastal areas.
h)
Project activities related to shipping and electronic ship tracking systems are
outside of the main focus of the BSERP, and should be discontinued.
i)
The research program planned for the 2nd phase should proceed as planned; and
the call for proposals for the second tranche of small grants (5.3) should proceed as
conceived, with continuing focus on agriculture, and wetlands.
40.
At the interagency level, it has also been agreed that, based on experience in the current
Partnership, the GEF International Waters Task Force (IWTF) will be fully involved with all
14
future Strategic Partnerships during formulation and annual PIR reviews, and that mid-term
progress reports on all Strategic Partnerships will be provided to Council. GEF's new Office of
Monitoring and Evluation will fund and participate in the Mid-term Review that will be the
subject of the Stocktaking.
VII. RESULTS AND OUTCOMES--DANUBE AND BLACK SEA NUTRIENT-RELATED
ENVIRONMENTAL STATUS IMPROVEMENTS
41.
The excessive nutrient pollution loading has resulted in large scale eutrophication of tens
of thousands of square kilometres of waters observed in the western Black Sea. The depletion of
oxygen in the lowere levels of the sea observed in the seventies and eighties has been virtually
eliminated, with oxygen levels at or near saturation in most areas during recent years (Figures 1
& 2). Very long lasting calm and warm weather periods can lead to the development of strong
pycnoclines and stagnation in shallow shelf water areas that are strongly influenced by the
Danube discharge,. This resulted in short-term low oxygen conditions near the bottom in
September, 2001 creatign a temporary setback in the decade long improvement in the Black Sea..
42.
Despite this one setback , the frequency of algae blooms as observed with ocean colour
satellites has decreased markedly compared to levels in the 1980's, and surface chlorophyll
concentrations have also shown measurable decreases. The number of benthic species observed
in the early 2000s was 1.5x - 2x higher than levels found in the late 1980s, but still more than
1.5x lower than conditions in the 1960s. The gradual recurrence in the western Black Sea of
Phyllophora, a flagship species which once supported a highly productive ecosystem of over 200
species, was confirmed during a survey cruise of the area in September 2004. Fish stocks in the
western Black Sea have not yet shown signs of recovery even as oxygen levels have rebounded.
The unintentional introduction of the comb jelly Mnemiopsis Ledyi in the 1980's, which
seriously disrupted the Black Sea fisheries, has been curtailed significantly with the subsequent
(also unintentional) introduction of Beroe ovata, a Mnemiopsis predator. .Still, Mnemiopsis may
remain an important impediment to full ecosystem recovery, and the adaptive management
principles accompanying projects in the GEF International Water Focal Area will need to be
utilized after GEF assistance in this Strategic Partnership ends.
43.
Most of the upper reaches of the Danube are no longer considered `at risk' (of not
achieving good ecological status under the EU Water Framework Directive) for hazardous
substances, nutrients and organic loads. The middle and lower reaches of the Danube are still
classified to be `at risk' for hazardous substances and nutrient pollution and from organics to a
lesser degree. For example, cadmium and lead concentrations exceed target values in locations
downstream from Danube River kilo-meter 1071, and the basin is still considered to be at risk for
impacts from hydro-morphological alterations (dams).
44.
Many of the observed positive environmental trends in both the Black Sea and the
Danube stem to a significant degree from the impacts of the economic downturn following the
collapse of the former Soviet Union and associated reductions in fertilizer use and livestock and
industrial emissions. See Figure 3 in Annex 1 for the data related to reduction in fertilizer
application in Eastern Danube Countries while similar levels continue to be used in upstream
nations. At the same time, through the series of regional GEF projects since 1991 and country
15
commitments to improved water quality, and now this Strategic Partnership, the collective efforts
of the governments and agency partners are having a demonstrable effect on reducing total
pollution emissions. In fact, investments under the GEF/World Bank's IFNR represent 20% and
10% of estimated total annual N and P reductions, respectively, from cumulative existing and
planned investments. Coincident with the recovery of economies in the region there is risk that
pollution discharges will again increase, particularly from agricultural nutrient sources. This
underscores the need for continued investment, implementation of agreed nutrient reduction
policy and regulatory reforms, effective implementation of the EU Water Framework Directive,
and close attention to the impact of the EU's Common Agricultural Policy, if the intermediate
target of maintaining Black Sea nutrient loads at mid-1990's levels is to be maintained.
Danube
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Figure 1:
Concentration of dissolved oxygen (expressed as % of saturation value) near
the bottom on the Romanian shelf of the W. Black Sea Sept 1996, Sept 1999 and Sept 2003
(compiled in the daNUbs project from data collected by RMRI) (Roof Report)
16
Sudden collapse and uncertain recovery of the
Black Sea NW Shelf benthic system
Summer benthic hypoxia
1973
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1996
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17