-
PROJECT BRIEF FOR THE DANUBE
REGIONAL PROJECT (TRANCHE 2)








Strengthening the
Implementation Capacities for
Nutrient Reduction and
Transboundary Cooperation in
the Danube River Basin


MARCH 2003










International Commission for the

Protection of the Danube River



UNDP/GEF Assistance

PROJECT BRIEF

1. IDENTIFIERS
PROJECT NUMBER PIMS
2184
PROJECT NAME
Strengthening the Implementation Capacities for
Nutrient Reduction and Transboundary Cooperation in
the Danube River Basin (Tranche 2)
DURATION
3 years (December 2003 ­ November 2006)
IMPLEMENTING AGENCY
UNDP
EXECUTING AGENCY
UNOPS in cooperation with the ICPDR
REQUESTING COUNTRIES
Czech Republic, Slovakia, Hungary, Slovenia, Croatia,
Bosnia & Herzegovina, Serbia and Montenegro, Bulgaria,
Romania, Moldova, Ukraine
ELIGIBILITY
Eligible under para. 9(b) of GEF Instrument
PARTICIPATING COUNTRIES
Germany and Austria
GEF FOCAL AREA
International Waters
GEF PROGRAMMING FRAMEWORK
GEF Operational Strategy for International Waters /
Waterbody-Based Operational Programme (#8)

2. SUMMARY
The long-term development objective of the proposed Regional Project is to contribute to sustainable
human development in the DRB through reinforcing the capacities of the participating countries in
developing effective mechanisms for regional cooperation and coordination in order to ensure protection
of international waters, sustainable management of natural resources and biodiversity.
In this context, the proposed GEF Regional Project should support the ICPDR, its structures and the
participating countries in order to ensure an integrated and coherent implementation of the Strategic
Action Plan 1994 (revised 1999), the Common Platform, the ICPDR Joint Action Program (approved by
the ICPDR Plenary in November 2000) and related investment programs in line with the objectives of the
DRPC.
The overall objective of the Danube Regional Project is to complement the activities of the ICPDR
required to provide a regional approach and global significance to the development of national policies
and legislation and the definition of priority actions for nutrient reduction and pollution control with
particular attention to achieving sustainable transboundary ecological effects within the DRB and the
Black Sea area.
Taking into account the basic orientations of the Danube/Black Sea Basin Programmatic Approach, the
Danube Regional Project, in its Tranches 1 and 2, shall facilitate implementation of the Danube River
Protection Convention in providing a framework for coordination, dissemination and replication of
successful demonstration that will be developed through investment projects (World Bank-GEF Strategic
Partnership, EBRD, EU programmes for accession countries etc.).
Specific objective of Phase 2 of the Project, December 2003 ­ November 2006, is to set up institutional
and legal instruments at the national and regional level to assure nutrient reduction and sustainable
management of water bodies and ecological resources, involving all stakeholders and building up
adequate monitoring and information systems. To reach these goals and to secure the implementation and
consolidation of those basin-wide capacity-building activities, the Project has to build up on the results
achieved during the 1st Phase of the Project (December 2001 ­ November 2003).

Altogether 20 project components with 79 activities will be carried out during the 2nd Phase of the
Project. The following immediate objectives are designed to respond to the overall development objective:
(1)
Creation of sustainable ecological conditions for land use and water management;
(2)
Capacity building and reinforcement of transboundary cooperation for the improvement of water
quality and environmental standards in the Danube River Basin;
(3)
Strengthening of public involvement in environmental decision making and reinforcement of
community actions for pollution reduction and protection of ecosystems;
(4)
Reinforcement of monitoring, evaluation and information systems to control transboundary
pollution, and to reduce nutrients and harmful substances.

3. COSTS AND FINANCING (USD)


Project Tranche 1
Project Tranche 2
GEF
Project
5,000,000 USD
12,000,000 USD

PDF-B
350,000 USD


Subtotal GEF
5,350,000 USD
12,000,000 USD
Co-Financing
Government / ICPDR / others
6,600,000 USD
12,878,000 USD

Subtotal Co-financing
6,600,000 USD
12,878,000USD
Total Project Cost
11,950,000 USD
24,878,000USD

4. ASSOCIATED FINANCING
- Government

279,000,000 USD
- UNDP

1,069,000 USD
- Bilateral, EU and NGO

249,562,000 USD
Total Baseline Costs:

529,631,000 USD

5. GEF Operational Focal Point Endorsements (Annex 13)

Czech Republic


15 September, 2000
Slovakia
31
August,
2000
Hungary
30
August,
2000
Slovenia
29
August,
2000
Croatia 29
August,
2000
Bosnia & Herzegovina
1 September, 2000
Serbia & Montenegro

13 September, 2000
Bulgaria
1
September,
2000
Romania
30
August,
2000
Moldova
30
August,
2000
Ukraine
7
September,
2000
ICPDR President

15 September, 2000

6. Implementing Agency Contact

Mr. Nick Remple
UNDP Regional Bureau for Europe and CIS
Grösslingova 35
811 09 Bratislava, Slovakia
Tel: +421 2 59337-458 / Fax: +421 2 59337-450
nick.remple@undp.org
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
5
Preface
In May 2001, the GEF Council approved Tranche 1 to carry out the first phase of the UNDP/GEF Project
"Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation in
the Danube River Basin" known in short as the Danube Regional Project (DRP). Although the initial
Project Brief had been prepared in September 2000 with a total budget of 15 million USD, was endorsed
by all 11 requesting countries and cleared by GEFSEC, due to funding constraints, the DRP was split into
two parts (phases) to be funded by two separate tranches. Nevertheless, the overall development objective
as well as the immediate objective remained (and still remain) the same for both phases of the DRP.

Rationale for Receiving the Tranche 2 Funding
Because of the decision to split the DRP into 2 Phases, it is critical that the 2nd tranche of funding be made
available in time to assure continuity between the two phases. Phase 1 of the DRP began officially in
December 2001 and will be concluded by November 2003. As of February 2003, 16 of 20 components of
Phase 1 are under implementation with the remaining 4 in the process of being contracted. All Phase 1
activities should be concluded by Oct. 2003. In this context, Phase 1 was designed as the preparatory
phase to prepare concepts, methodologies, policies, capacity building etc. that will be implemented in
Phase 2. Therefore, to assure full project implementation and to achieve the ultimate goals of the Danube
Regional Project in its entirety (both Phases), this Project Brief for Phase 2 of the DRP is being submitted
for the remaining funding (2nd tranche).

Progress in the Implementation of Phase 1 of the DRP
The first year of implementation of the UNDP/GEF first phase (Dec. 2001-Nov. 2003) has been assessed
as "highly satisfactory" in the latest APR/PIR Review (Feb. 2003) involving key stakeholders of the DRP
(see Annex 14 for the full APR/PIR.) The DRP implementation is on target to deliver the expected
results of Phase 1. As an indication, Annex 15 contains a table developed to demonstrate progress and
results expected by the end of Phase 1. This table is based on the Objectives/Outputs/Success Criteria
table that formed part of the original Framework Brief ­ GEF Strategic Partnership on the Danube/Black
Sea Basin.
The outputs of these current Phase 1 activities will set the basis for full implementation in Phase 2 to
achieve the desired results of the DRP. Policies (agriculture, industry, wetland management etc.)
economic instruments, river basin management planning tools (related to WFD,) pilot activities etc. are
currently being prepared that will be operationalized in Phase 2. Concepts for improving ICPDR systems
(water quality, accident prevention and warning, emissions, etc.) are being developed and the information
system (DANUBIS) is being enhanced, whereas training needs are being assessed, prioritized and then
programmes developed as the basis for specific activities for improvement in Phase 2. Public participation
mechanisms are being developed or strengthened (Danube Environmental Forum), activities at the
grassroots level for pollution reduction are being prepared (Small Grants Programme) and public
awareness activities are being organized (DRB Communications Strategy.) Finally, appropriate
monitoring and evaluation systems are being designed and put in place such that progress can be measured
by the end of Phase 2.
Project implementation thus far has produced some lessons learned that reflect project progress (for
further information see section 4 of the APR/PIR in Annex 14). Excellent cooperation with the ICPDR
and its structures has been achieved at its different levels, Permanent Secretariat, Expert Groups, national
governments and their delegations etc. Commonly implemented activities are serving to improve
administrative and technical capacities at the national level based on guidelines and requirements set by
the ICPDR and the DRP. In this way, the DRP is playing a catalytic role for DRB countries to meet their
commitments to the DRPC and increasingly the EU WFD thereby facilitating enhancement of "good
governance" in some DRB countries.
The DRP has placed great effort to link global environmental issues to the EU Water Framework
Directive. This is beneficial, as the EU WFD provides the legislative framework for resolving

transboundary pollution problems. By grounding project activities and results within EU WFD
implementation, the DRP is helping to assure the sustainability of project results after 2006 (end of the
project.)
A particular focus of the DRP has been given to enhancing public participation in environmental decision-
making. An important lesson is the need to adopt public participation activities to specific levels of
activity (regional, sub-basin, national, local etc.) The DRP is supporting various activities at different
levels such as the Small Grants Programme (local, national and regional), public participation strategy for
the ICPDR (beginning at the regional level) as well as the enhancement of the DEF which can support all
levels of public participation.
Finally, given the great need for capacity building activities in the DRB, the DRP is supporting the
development of a training needs assessment to help identify and then prioritize training needs. Preliminary
results have indicated the need to focus training on improving the effectiveness of structures (e.g. the
Expert Groups of the ICPDR) as well as on technical capacities (as originally intended.)

Issues to Be Considered for Tranche 2
The implementation of Phase 1 thus far has identified important challenges that must be considered in the
implementation of Phase 2.
The DRP will continue to support the implementation of the EU WFD as it leads to the meeting of project
objectives. An ongoing challenge for Phase 2 implementation will be to assure that non-EU Accession
countries (Bosnia-Herzegovina, Croatia, Moldova, Serbia and Montenegro and Ukraine) can and will
participate in implementing the EU WFD and in particular project related activities. The DRP will
continue to work to strengthen these countries' abilities to participate on an equal basis within the regional
framework.
Another real challenge for Phase 2 will be to focus on priorities for capacity building. There is a serious
need and demand for capacity building activities in the DRB. Phase 2 will have to focus on the most
central needs within the ICPDR, the DEF and other key stakeholders that will lead to meeting the overall
project objectives.
The DRP will also have to work to ensure that Danube NGOs and NGO networks (DEF etc.) are
strengthened in their capacities to take action and mobilize support for pollution reduction. This is
essential for long-term environmental improvements and sustainability of cooperative efforts.

Short Description of the Project Brief

A. The original framework and text of the Project Brief-Tranche 2 (from May 2001)
Phase 2 of the DRP is an integral part of the whole DRP; the same analytical framework was used for the
preparation of the Project Brief for both phases. Besides this new preface and the new annexes already
mentioned, the original text of the project brief as developed and submitted in Sep. 2001 has been
principally retained to assure authenticity as this brief was already endorsed then by all DRB countries.
Revisions were therefore only made where necessary to reflect changing situations, lessons learned, new
institutional arrangements etc. from Phase 1 implementation. Further, lessons learned (section V-1))
developed in 2001 were kept, while new lessons learned from current implementation were also added
(section V-2.)

B. In addition, one new component has been added to strengthen public participation by enhancing
access to information. As public participation in environmental decision-making is a central objective of
the DRP and is essential for assuring the long-term sustainability of this GEF supported intervention, this
component has been included to this Project Brief (component 3.4) to strengthen mechanisms for the
public to have greater access to information to be able to address priority sources of pollution. Two
million USD is requested to support implementation of this component.
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
3
Table of Contents
I
Background Information.........................................................................................................................5
I - 1 Context of the Danube Regional Project ....................................................................................................5
I - 2 The Danube River Basin ..............................................................................................................................7
I - 3 Political, Demographic and Economic Issues.............................................................................................7
I - 4 Accidental Pollution in the Danube and the Tisza Sub-River Basin........................................................9
I - 5 Institutional and Legal Mechanisms and Investment Programs for Nutrient Reduction
in the Danube Countries ..............................................................................................................................10
I - 6 Mechanisms for Regional Cooperation for the Protection of Water and Ecological
Resources in the Danube River Basin.........................................................................................................15
I - 7 Cooperation between the ICPDR and the International Commission for the Protection
of the Black Sea (ICPBS) .............................................................................................................................16
II
Project Objectives ....................................................................................................................................18
III
Project description ...................................................................................................................................20
1.
Creation of sustainable ecological conditions for land use and water management..................................20
2.
Capacity building and reinforcement of transboundary cooperation for the
improvement of water quality and environmental standards in the Danube River Basin........................25
3 Strengthening of public involvement in environmental decision making and
reinforcement of community actions for pollution reduction and protection of
ecosystems ........................................................................................................................................................29
4. Reinforcement of monitoring, evaluation and information systems to control
transboundary pollution, and to reduce nutrients and harmful substances ..............................................33
IV
Sustainability and Participation .............................................................................................................36
V
Lessons Learned.......................................................................................................................................38
V - 1 Lessons Learned in Preparing the DRP .....................................................................................................38
V - 2 Lessons Learned During Implementation of Phase 1 of the DRP ............................................................39
VI
Project Budget and Financing ................................................................................................................41
VI - 1 GEF Budget Contribution ...........................................................................................................................41
VI - 2 Contributions from the ICPDR, participating countries and others:......................................................43
VI - 3 National Capital Investments and Development Costs (2001 ­ 2006)......................................................43
VI - 4 World Bank Partnership and UNDP (estimated 5 years period) .............................................................43
VI - 5 Investments from EU for environmental measures (accession countries) ...............................................44
VI - 6 Assistance from bilateral sources (estimated 2 to 4 years)........................................................................44
VI - 7 Assistance provided through private sector organizations (inter-national and Danube
NGOs for a 2 to 4 years period)...................................................................................................................44
VI - 8 Total contributions for environmental protection and nutrient reduction in the
Danube River Basin......................................................................................................................................44
VII Incremental Costs ....................................................................................................................................47
VIII Cost-effectiveness .....................................................................................................................................48
IX
Project Risks.............................................................................................................................................50
X
Institutional Frameworks and Implementation ....................................................................................52
X - 1 Institutional Arrangements .........................................................................................................................52
X - 2 Monitoring and Evaluation..........................................................................................................................53
X - 3 Implementation Schedule.............................................................................................................................54

Annexes
4
Project Brief / Danube Regional Project ­ Tranche 2
List of Abbreviations

APC/EG

Accident Prevention and Control Expert Group
APR

Annual Project/Program Report
AQC

Analytical Quality Control
BAT

Best Available Technology
BEP

Best Environmental Practices
BOD

Biological Oxygen Demand
COD

Chemical Oxygen Demand
DBAM

Danube Basin Alarm Model
DEF

Danube Environmental Forum
DEPA

Danish Environmental Protection Agency
DANUBIS
Danube Information System
DPRP

Danube Pollution Reduction Program
DRB

Danube River Basin
DRBM/EG
Danube River Basin Management Expert Group
DRP

Danube Regional Project
DRPC

Danube River Protection Convention
DWQM

Danube Water Quality Model
Euro
ECO/EG
Ecology Expert Group
EMIS/EG
Emission Expert Group
EPDRB

Environmental Program for the Danube River Basin
GEF

Global Environment Facility
GDP

Gross Domestic Product
GPA

Global Programme of Action
IAA

Implementing Agency Agreement
ICPDR

International Commission for the Protection of the Danube River
ICPBS

International Commission for the Protection of the Black Sea
IFI

International
Financing
Institution
IW

International
Waters
JAP

Joint
Action
Program
MLIM/EG
Monitoring Laboratory and Information Management Expert Group
MONERIS
Modeling Nutrient Emission in River System
M&E

Monitoring and Evaluation
MSP

Medium Sized Project
NGOs

Non Government Organisations
PIR

Project Implementation Review
PRP

Pollution Reduction Program
REC

Regional Environmental Center
S/EG

Strategic Expert Group
SAP

Strategic Action Plan
SIA

Significant Impact Area
STAP

Scientific and Technical Advisory Panel
TAR

Transboundary Analysis Report
UNDP

United Nations Development Program
UNIDO-TEST
United Nations Industrial Development Office - Transfer of Environmentally Sound
Technology to Reduce Transboundary Pollution in the Danube River Basin
UNOPS

United Nations Office for Project Services
USAID

United State Agency for International Development
USD

United States Dollar
WPPCM

Water Pollution Prevention and Control Model

Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
5
I
Background Information
I - 1 Context of the Danube Regional Project
In the frame of the Environmental Program for the Danube River Basin (EPDRB) international support
was provided to facilitate the development and the implementation of the Danube River Protection
Convention (DRPC). Since 1992 the European Community has supported, in particular through its Phare
and Tacis programs and the UNDP/GEF, in particular through its Pollution Reduction Program (June 1997
to June 1999), the efforts of the Danube countries and of the Interim Commission for the Protection of the
Danube River to develop the necessary mechanisms for effective implementation of the Convention.
These mechanisms relate in particular to the development of a regional Strategic Action Plan (SAP) based
on national contributions, the elaboration of a Transboundary Analysis to define causes and effects of
transboundary pollution within the Danube River Basin and on the Black Sea. In the frame of the Danube
Pollution Reduction Program, based on the results of the Transboundary Analysis, an investment portfolio
has been developed with particular attention to nutrient reduction. All the measures, projects and programs
proposed to reduce emissions from both point and non-point sources of pollution will improve water
quality, considering a reduction of 50 % in Chemical Oxygen Demand (COD) emissions and 70 % in
Biological Oxygen Demand (BOD) emissions and other toxic elements and thus reduce transboundary
effects within the Danube River Basin. Once implemented, these measures will further substantially
contribute to reducing nutrient transport (Phosphorus by 27 % and Nitrogen by 14 %) to the Black Sea to
improve, over time, environmental status indicators of Black Sea ecosystems of the western shelf.
The International Commission for the Protection of the Danube River Basin (ICPDR) developed a first
Joint Action Programme (JAP) for the years 2001 - 2005, which was adopted at the ICPDR Plenary
Session in November 2000. The JAP deals i.a. with pollution from point and non-point sources, wetland
and floodplain restoration, priority substances, water quality standards, prevention of accidental pollution,
floods and river basin management.
In order to ensure efficient implementation of the Common Platform for Development of National Policies
and Actions for Pollution Reduction under the DRPC (Common Platform), the Pollution Reduction
Program and the JAP and to reinforce the appropriate development and application of policies, strategies
and legislation for transboundary pollution reduction at the national level, the current phase of GEF
assistance is complementing the activities of the ICPDR and the Black Sea PIU.
The new GEF assistance is within the frame of the Danube/Black Sea Basin Strategic Partnership (Annex
9) for the Danube and the Black Sea Basin. The Danube­Black Sea program is composed of three
complementary parts:
(i)
a series of country-related investment projects executed through the World Bank
Investment Fund for Nutrient Reduction with GEF financial support;
(ii) two Regional Projects for the Danube River Basin and the Black Sea respectively which are
subdivided into two Phases (December 2001- November 2003 and December 2003-
November 2006);
(iii) other GEF and donor interventions in the basin targeting reduction of nutrients and toxic
pollutants.
The GEF regional Danube/Black Sea Basin Strategic Partnership is providing assistance to the ICPDR and
the Black Sea PIU to reinforce their activities in terms of policy/legislative reforms and enforcement of
environmental regulations (with particular attention to the reduction of nutrients and toxic substances).
The regional projects, in their respective sphere of intervention and jointly, shall also assure a coherent
and coordinated approach and global significance of policy and legislative measures introduced at the
national level of the participating countries. Further, the GEF regional components of the Danube/Black
Sea Basin Strategic Partnership shall facilitate project implementation in providing a framework for
dissemination and replication of successful demonstration that will be developed through the
6
Project Brief / Danube Regional Project ­ Tranche 2
implementation of investment projects through the World Bank-GEF Investment Fund for Nutrient
Reduction.
In this context, the Danube Regional Project (DRP), which has been split in two implementation Phases,
has to be seen as an integral part of the Danube/Black Sea Basin Strategic Partnership and a logical
continuation of the GEF support for capacity building provided for a period of five years to the countries
of the DRB.
The 2nd Phase of the Project, December 2003 ­ November 2006, is to set up institutional and legal
instruments at the national and regional level to assure nutrient reduction and sustainable management of
water bodies and ecological resources, building up adequate monitoring and information systems,
involving all stakeholders. To reach these goals and to secure the implementation and consolidation of
those basin-wide capacity-building activities, the Project has to build up on the results being achieved
during the 1st Phase of the Project (December 2001 ­ November 2003). For the reason of continuity and
utmost utilization of available expertise, the Danube Regional Project has to take into account and build
on the existing mechanisms and structures, including:

the Common Platform (revised SAP), focusing on policies and strategies for water quality
control and pollution reduction with particular attention to transboundary issues and reduction of
nutrient transport to the Black Sea; regional policies and strategies have to be coordinated with
the development of national policies and legislation and implemented through national
investment programs;

the Transboundary Analysis Report (TAR) which identifies causes and effects of pollution with
particular attention to transboundary issues and nutrient transport to the Black Sea; the TAR
defines priorities for control and management strategies at the regional and national levels;

the Danube Pollution Reduction Program (DPRP), which, as part of the actual investment
program of the ICPDR. It is the operational basis for the promotion and monitoring of pollution
reduction measures in the DRB. A total of 421 projects for 5.66 billion USD, primarily
addressing hot spots have been identified for municipal, industrial and agricultural projects
which, once implemented, would decrease phosphorus and nitrogen loads to the Danube and
downstream to the Black Sea by 27 and 14 % respectively;

the ICPDR, its Permanent Secretariat and its Expert Groups are responsible for the
implementation of the DRPC with particular attention to emission control (EMIS/EG),
monitoring of water quality (MLIM/EG), warning and prevention of accidental pollution
(APC/EG), river basin management and implementation of EU Water Framework Directive
(RMB/EG), ecological status (ECO/EG) and strategic/administrative issues (S/EG). The Danube
Regional Project shall make use of these structures and instruments to pursue its objectives and
organize its activities;

the Joint Action Programme 2001-2005, prepared by the EMIS EG and approved by the ICPDR
at the Plenary Session in November 2000. The projects and strategic measures contained in the
Joint Action Programme are in most cases coherent with the projects in the Five Year Nutrient
Reduction Action Plan, where the total amount of investment for point sources reduction is 4.4
billion out of which 3.54 billion are earmarked as national contributions.

The Danube River Basin Management Planning process in support of EU Water Framework
Directive implementation for the DRB. The EU as well as ICPDR member countries have
agreed that the ICPDR is responsible for coordinating the development of the DRB Management
Plan (until 2009) as well as its implementation. The ICPDR RBM EG is responsible for
coordinating the technical work amongst the 13 participating countries and according to the
implementation time frame as set by the EU.

DABLAS Task Force, being coordinated by the EU, in order to identify, prioritize and then
facilitate funding for priority wastewater treatment facilities needed in the Danube and Black
Sea Basins in order for pollution reduction including nutrients.

Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
7
I - 2 The Danube River Basin
The Danube River is with a length of 2 780 km the second largest river in Europe and drains an area of
817 000 square km. This includes: all of Hungary, nearly all parts of Austria, Romania, Slovenia, Slovakia
and Serbia & Montenegro, significant parts of Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic,
Moldova and small parts of Germany and Ukraine. The Danube River discharges into the Black Sea
through a delta, which is the second largest natural wetland in Europe.
The catchment profile along the Danube is presented in the attached figure.
The Basin, with a total of about 817 000 km² is characterized by an aquatic ecosystem with numerous
important wetlands and floodplains. It is of high environmental as well as economic and social value. It
supports drinking water
supply, agriculture, industry,
fishing, tourism and The catchment profile along the Danube (in 1000 km2)
recreation, power generation,
subdivided over the 13 principal Danube countries
navigation, etc. A large
number of dams, dikes,
900
navigation locks and other
hydraulic structures have
800
Germany
Austria
Czech_Republic
Slovakia
Hungary
Slovenia
been built throughout the
700
Croatia
Serbia&Montenegro
Bosnia_Herzegovina
Bulgaria
Romania
Moldova
region. (Annex 7 - Maps:
Ukraine
600
Major Hydraulic Structures
in the Danube River Basin).
500
400
Utilizing water resources for
important economic activities
300
and the release of waste
200
water without adequate
100
treatment has resulted in
0
e
r
d

er
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e
r

Outflow
changes in the hydrological
Source
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quality and quantity have
been created, including significant environmental damage, with resulting impairment of public health and
quality of life.
Central and eastern European countries in particular, during the period of centralized planning system,
failed to develop adequate environmental protection policies and subsequent measures to fully respond to
water pollution and degradation of river ecosystems. The economic situation of the countries in transition,
most of which are accession countries to the European Union, does not allow them to fully respond to the
needs for environmental protection and the implementation of pollution control measures.
Appropriate water management concerns must be better integrated into municipal, industrial and
agricultural policies and legislation to assure sustainable human development and promotion of economic
activities. The Danube/Black Sea Basin Programmatic Approach shall assist countries in transition to
respond to the regional and global environmental concerns with particular attention to nutrient reduction
and the elimination of toxic substances in the water bodies.
I - 3 Political, Demographic and Economic Issues
The present population of the Danube River Basin is about 83 million inhabitants (16 % of the population
in Europe). Nearly 57 % of this population lives in increasingly growing urban areas. The share of the
population connected to public water supply varies from 29% in Moldova to 98 % in Germany, yielding
an average of 74%. The share of population branched to public sewer system varies from 14% in Moldova
to 89% in Germany ­ an average of 52%. Based on the national projection figures, the population of the
Danube River Basin can be expected to remain at its present level by the year 2020.
8
Project Brief / Danube Regional Project ­ Tranche 2
The analysis of economic disparities shows a clear trend of a west ­ east decline of the GDP from the
upstream countries such as Germany and Austria, with about 23,000 USD per capita and year (in 2001), to
the downstream countries among which Ukraine accounts for less than 1,000 USD per capita and year.
The middle and downstream
Danube countries in transition
are facing serious economic
The Danube Countries:
and financial problems in
GD
P pe r Capita in USD (2001)
responding to the objectives of
the Danube River Protection
Convention and implementing
25,000
GDP per Capita in USD
measures for pollution
reduction and for 20,000
)
D
environmental protection as
S
(U
required for the accession to
15,000
i
ta
the European Union. This
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r

c
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analysis also shows the need to
10,000
p
P
assist the countries in transition
D
G
and makes evident the
5,000
responsibilities of the
international community to
0
D
A
H
O
H
*
respond to the regional and
CZ
SK
HR
SL
Bi
YU
BG
RO
UA
MD
* estimation
global concerns of
environmental protection.
In general terms, the 13 DRB countries can be categorized and characterized as follows:
(i)
Germany and Austria
These two countries are members of the European Union and are located at the upper part of the DRB.
Compared to all other DRB countries, Germany and Austria have significantly higher economic
development levels, represented by a per capita income of about 23 000 USD per annum. In terms of
pollution reduction (COD, BOD, N and P) they have achieved high standards of emission reduction and
water pollution control. From 1990 to 1999 both countries have invested important amounts for the
installation of third stages and for the upgrading of municipal wastewater treatment plants.
In 1997 and 1998 (2 years) Germany invested more then 2.4 billion USD for pollution reduction measures
to respond to EU Water Directives and in particular the Nitrate Directive. Current investment in the water
sector in the German part of the Danube River Basin is at the level of about 1.5 billion USD per year of
which 1.2 billion USD is spent for communal wastewater treatment facilities (including 3rd stage for
nutrient removal). From 1993 to 1999 Austria invested about 780 million USD per year for municipal
wastewater treatment including nutrient removal facilities.
Concerning the ongoing projects indicated in the Nutrient Reduction Plan, further investments of 234
million USD for Germany and 264 million USD for Austria are foreseen for the period from 2000 to 2005.
Austria and Germany together hold around 17% of territory and 21 % of the population of the Danube
watershed. In terms of water flow of the Danube to the Black Sea Austria alone contributes more than
20%. Based on the DWQM, Germany and Austria contribute to nutrient loads reaching the Black Sea by
26.2% of Nitrogen and 15.3% of Phosphorus. Apart from the wastewater purification programme, Austria
is implementing a large program for environmentally friendly agriculture named ÖPUL. Essentially it is
aiming at extensive agricultural practices and reduction of nutrients load. Since 1995 this program is
running comprising around 90% of Austria's agricultural area and backed yearly by financial means in the
order of 650 million . In spite of these efforts in the agricultural sector neither country has yet met the
European emission standards (EU Nitrate Directive). However, one must bear in mind that changes in
agricultural practices and land management will ­ due to delay in runoff - take five or more years before
producing obvious effects in terms of nutrient reduction.
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
9

(ii)
Czech Republic, Slovakia, Hungary, Slovenia and Croatia
These countries are located in the central part of the DRB. They have to a great extent overcome the
former central state planning systems and have reached medium economic development levels reflected in
their annual GDP of between USD 4,000 and USD 9,000 per capita. The economic transition process has
caused significant reduction of industrial and agricultural production, thus temporarily reducing
production-related pollution loads. This has created an opportunity to establish and integrate
environmental objectives into industrial and agricultural policies and legislation in line with EU
guidelines. All of these countries, with the exception of Croatia, are in the process of accession to the EU
and are scheduled to officially join in 2004. Croatia is interested in joining the EU as soon as possible and
hopes to join the second tier group (including Bulgaria and Romania) which is currently looking towards
2007 for EU entry. The accession countries are receiving special financial and technical support from the
European Commission (ISPA, Phare and Sapard funds) to help them develop needed infrastructure and
meet environmental standards. The present Regional Project (in its two Phases) is assisting these countries
to develop adequate policies and legislation for emission control in line with EU standards and regulations
and with particular attention to nutrient reduction.

(iii)
Serbia and Montenegro and Bosnia and Herzegovina
These two countries, also located in the central Danube River Basin, are still in a challenging phase,
working to re-organize their political, legal, administrative and socio-economic structures in order to
comply with the requirements of the commencing process of economic liberalization and privatization as
well as of international normalization. With annual per-capita GDP of USD 1,100 (BiH) and USD 1,500
(Serbia & Montenegro), both countries are presently well below their pre-war levels.

(iv)
Romania and Bulgaria
Romania and Bulgaria are both located in the lower Danube River Basin and they are also both Black Sea
countries. They are in this sense, both polluters and victims of pollution to the Black Sea. Both countries
are still in a challenging period of political, social and economic transition. Romania and Bulgaria are both
in the process of EU Accession and have clear priorities in meeting the requirements for potential entry in
2007.

(v)
Moldova and Ukraine
These two countries are also located in the lower Danube River Basin. Ukraine is a Black Sea country that
both contributes to Black Sea pollution as well as suffers from the degradation of Black Sea ecosystems.
These countries are both polluters and victims of pollution to the Black Sea. Moldova and the Ukraine
face important economic problems and are both in phases of political and social transition. Whereas
environmental concerns are of high importance, the financial means for investments are very limited.
Particularly critical is also the fact, that their legal and administrative framework is still to a certain extent
determined by the former central planning structures and therefore are not yet in compliance with the
requirements of the process of economic liberalization and privatization.
It is obvious from this broad description of the DRB countries that there is a clear distinction in terms of
political, administrative and economic capability from the wealthy countries in the upper DRB, the mid-
income countries in the central DRB, down to the poorer countries in the lower part of the DRB.

I - 4 Accidental Pollution in the Danube and the Tisza Sub-River Basin
Since the DRPC entered into force, first concerns about contamination of ground and surface waters were
raised during the NATO intervention against Yugoslavia from March to June 1999. The bombing and
destruction of petrochemical plants and refineries led to contamination of channels and tributaries
emptying into the Danube River. Sampling and analysis have shown high levels of contamination with
10
Project Brief / Danube Regional Project ­ Tranche 2
heavy metals, in particular mercury, oil and petroleum products, volatile organic substances, PCBs, PAHs,
etc. However, one must bear in mind that the accumulation of toxic substances is not the effect of the
recent bombing of industrial installations only but also the result of years of inefficient treatment and
careless handling of wastes from industrial and mining activities.
In the beginning of the year 2000 two accidents occurred with disastrous environmental effects in the
upper Tisza Sub-River Basin where mining activities are carried out. Waste water containing cyanide and
heavy metals was accidentally discharged into receiving waters. Ecosystems where affected and large fish
kills of several hundred tons were reported. Drinking water supply for urban centers at the riverbanks and
fishing activities had to be suspended. Important economic losses were reported in tourism and fisheries.
The effects of the cyanide wave were reported over a stretch of 900 to 1000 km from the Tisza River to
the Danube and dangerous cyanide concentrations were still measured even downstream of the Iron Gate
dam.
In January 2001 a new pollution accident was reported from the upper Siret Sub-River Basin where waste
water containing cyanide was leaking from a chemical factory. This accident caused tons of killed fish and
transboundary pollution and dozens of people, in particular children, were hospitalized after eating
contaminated fish.
There are actually serious concerns over the possible accumulation of toxic substances in the sediments
and biota of the Iron Gate reservoirs. Preventive management programs have to be developed and
implemented in order to gradually clean up the sediments and assure the rehabilitation of ecosystems in
the central and lower part of the Danube River basin.

I - 5 Institutional and Legal Mechanisms and Investment Programs for
Nutrient Reduction in the Danube Countries
In the frame of the project preparation (PDF-Block B activities), specific subjects concerning the
institutional, legal and policy frame as well as national investment programs for nutrient reduction have
been studied and analyzed.

(i)
Inter ­ministerial coordination mechanisms
In the frame of the PDF-Block B activities, inter-ministerial mechanisms at the national level and concepts
of cooperation for pollution reduction, in particular nutrient reduction, have been analyzed. The diversity
of views and proposals for the implementation of EU Directives in the frame of the accession process
create an encouraging environment for the countries to create new inter-ministerial mechanisms or to
improve the existing structures with nutrient reduction and control responsibilities and the major demand,
in particular created by the EU WFD. Based on the finding of the national contributions, the Danube
countries can be classified in three groups.
The first group is made up of EU member countries, Germany and Austria, in which the existing national
inter-ministerial structures allow an effective performance of nutrient reduction and control tasks. In
Germany, the inter-ministerial cooperation takes place on both federal and state levels, covering
legislative procedures, implementation of EU-directives, and development of minimum requirements for
point sources for municipalities as well as for industrial branches. In Austria, the Ministry of Agriculture,
Forestry, Environment and Water Management provides the necessary structure to adequately implement
nutrient control and reduction measures.
The second group, made up of the Czech Republic, Hungary, Romania and Bulgaria includes countries
where specific mechanisms or inter-ministerial structures for nutrient reduction do not yet exist. However,
there are several relevant national inter-ministerial bodies with responsibilities for water pollution
abatement and environmental protection. Most of these structures also deal with diffuse sources of
pollution, the implementation of pollution reduction measures or approval of new investments in the water
sector.
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
11
Finally, in the remaining Danube countries, the inter-ministerial coordination of nutrient reduction and
control issues do not yet represent a high priority for the policy makers.
The Danube countries believe that cooperation between governments, local communities and Non-
Governmental Organizations (NGOs) in relation to nutrient reduction is very important. Nutrient reduction
issues are included directly or indirectly in the mandate and the responsibilities of the local authorities,
farm enterprises, industrial plants and environmental NGOs. In the frame of river basin organizations the
majority of the countries set good examples of cooperation between the government, inter-ministerial
bodies, local communities and NGOs.
The activities of the PDF-Block B investigation raised awareness and provided important legitimacy to the
concept of inter-ministerial mechanisms for nutrient reduction and helped move it into the mainstream of
policy debate for its implementation.
The DRP in Phase 1 is evaluating existing national inter-ministerial coordinating mechanisms, proposing
adequate structures and assisting governments in improving these mechanisms to assure effective co-
ordination with activities related to EU WFD and other projects development. The forthcoming Phase 2 of
the Danube Regional Project will build up on the achievements of Phase 1 and will reinforce national
initiatives and contribute towards the setting up of adequate nutrient reduction mechanisms at the national
and regional levels.

(ii)
Policies and legislation relating to nutrient control and reduction
After a critical period of transition, all DRB countries have in the meantime developed a comprehensive
hierarchic system of short, medium and long-term environmental policy objectives, strategies and
principles which usually reflect the key country-specific environmental problems and the sector priorities
on national and regional levels.
Despite the diversity of problems, interests and priorities across the DRB, the Danube countries share
certain values and principles relating to the environment, conservation of natural resources and nutrient
control and reduction. The most essential and commonly accepted principles are:
· the precautionary principle;
· best available technology (BAT)
· best environmental practice (BEP);
· control of pollution at the source;
· the "polluter pays" principle and the related "user pays" principle;
· the principle of integrated approach (e.g. River Basin Management approach) particularly
as outlined in the EU Water Framework Directive;
· the principle of shared responsibilities, respectively the principle of subsidiarity;
· the implementation of EU Directive 76/464/EEC on pollution caused by certain dangerous
substances.
None of the DRB countries currently has an explicitly formulated nutrient reduction program. Measures
and activities with relevance to nutrient reduction are usually sub-components of or are substantially
incorporated in other programs.
While Germany and Austria have legislation in compliance with "highest environmental standards" on
nutrients (e.g. EU Nitrate Directive), they have not yet fully implemented / enforced these legislation. The
adequacy of the legal framework for sound environmental management of water resources of the other
countries has to be viewed against the political, economic, administrative and social changes that have
taken place in the particular DRB countries during the previous years of transition.
Thus, the relevant legislation is in most DRB countries currently undergoing substantial reform and
modernization. Given the complexity of the task, the reform can be expected to take several years before
the relevant legislation has reached an acceptable level of compliance with international requirements.
12
Project Brief / Danube Regional Project ­ Tranche 2
Except for the two EC member states, Germany and Austria, all other DRB countries consider the
harmonization of national environment and water-related legislation with EU legislation as the most
essential prerequisite for long-term sustainable nutrient control and reduction in their countries. In EU
accession countries, this harmonization is incorporated in an ongoing programs and considered as a short-
term, respectively medium term task. However, for the final implementation of the Urban Waste Water
Treatment Directive, an adjustment period of approximately 10 to 15 years is considered to be necessary.
In other countries - Moldova, Ukraine and the war-impacted countries Croatia, Bosnia-Herzegovina and
Serbia and Montenegro - the status of the water sector legislation is still unsatisfactory.
From the point of view of nutrients, the most essential issue is the substantial transposition of:
· the new Directive 2000/60/EC of 22 December 2000 i.e. the Water Framework Directive (EU
WFD) concerning water policy which aims at a good status for all surface and groundwater within
(often transboundary) river basin districts (RBD). By December 2009, river basin management
plans must be prepared for each RBD; already by December 2012, all polluting discharges must be
controlled under a combined approach of best available techniques and emission limit values, as
well as by best environmental practice for diffuse pollution;
· the Council Directive 91/271/EEC of May 1991 concerning urban waste-water treatment;
· the Council Directive 91/676/EEC of 12 December 1991 concerning the protection of waters
against pollution caused by nitrates from agricultural sources.

Regarding the particular issue of control, respectively the out-phasing of phosphate-containing detergents,
the current situation in the particular DRB countries indicates that there is a substantial potential for
phosphorus reduction in most DRB countries, therefore consultations with industry and other stakeholders
begun in Phase should be followed up on in Phase 2 with the goal of phasing out the use of phosphates in
detergents.

(iii)
Nutrient reduction programs 2000 ­ 2005 and related investments
Within the frame of further development of Five Year Nutrient Reduction Action Plan, both
structural/investment and legal/policy reforms projects that address nutrient reduction are being
introduced.

(a)
Point Source Projects and anticipated nutrient reduction
Within the elaboration of the PDF-B project all 13 DRB countries have provided draft national lists of
priority projects that are supposed to be ready for implementation in the coming 5-year period and can be
considered as a reasonable basis for the elaboration of comprehensive Nutrient Reduction Action Plans as
part of the ICPDR Joint Action Program.
According to the available data, the total investment required for the 245 priority point source projects for
all 13 DRB countries amounts to about 4,404 million.
The structure of the identified investment requirements by sector is as follows:
Municipal
Industrial
Agricultural
Wetlands
Total
No of Projects
157
44
21
23
245
Million
3,702
267
113
323
4,404
(%)-Structure

84% 6% 3% 7% 100

Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
13
The structure of the identified investment requirements by countries is as follows:

GER A CZ SK HUN SLO CRO B&H SM BUL RO MOL UA TOT
No
of
Proj. 11 4 12 20 24 24 11 12 40 21 25 31 10 245
Mill.
231 264 147 118 687 384 433 176 785 125 493 493 67 4,404
(%)
5 6 3 3 16 9 10 4 18 3 11 11 1 100
The anticipated composition of the funding of the identified priority projects across the DRB countries is
as follows:
Funding component
Million
(%) ­ Structure
National funding contribution
1,716
39 (%)
International loans:
1,163
26 (%)
International grants:
663
15 (%)
Not secured funding components:
862
20 (%)
Total: 4,404
100
(%)

According to the available data provided by the national reports, total pollution reduction as a result of the
implementation of the proposed priority point source projects including waste water from urban areas,
which are not connected to WWTP, is anticipated to be in the following ranges:
Municipal
Industrial
Agricultural
Wetlands
Total
No of Projects
157
44
21
23
245
N (t/y)
33 300
3 400
6 700
15 100
58 500
P (t/y)
5 500
3 700
1 100
1 800
12 100
BOD (t/y)
221 000
39 700
9 500
5 900
276 100
COD (t/y)
398 900
78 700
15 000
32 400
525 000

(b)
Nutrient reduction from agricultural non point sources of pollution
Based on the available data, the assessment of the anticipated nutrients reduction from agricultural non
point sources of pollution shows values ranging between 10 and 25 % for nitrogen and between 3 and 25
% for phosphorus.
To ensure significant nutrient loads reduction from diffuse sources of pollution, the Danube countries have
identified measures that primarily address:
(i)
policy and legislation-related actions: the improvement of national policies and legislation
regarding the utilization of fertilizers and livestock waste and approximation of national
legislation to relevant EU legislation and standards;
(ii)
institutional strengthening and capacity building: the elaboration and enforcement of guidance
on the application of the agro-environmental schemes and best environmental practice;
(iii)
raising public awareness and strengthening public participation in nutrient reduction
initiatives: the development of pilot projects for the implementation of alternative methods.

14
Project Brief / Danube Regional Project ­ Tranche 2
The estimates of the nitrogen and phosphorus reduction for point sources and non point sources as
presented in the national contributions are summarized below:
Country Nutrient
Anticipated national emission
loads
Expected
(DWQM 1994/98)
reductions
national load
Point Sources Non Point Sources*
reduction

N (t/y)
P (t/y)
N (%) P (%)
N (%)
P (%)
N (t/y) P (t/y)
Germany 68,000
3,700
6.0
2.0
10.0
3.0
10,891
185
Austria 77,000
3,800
5.1
10.6
10.0
3.0
11,650
518
Czech
Republic
15,000 1,100
7.3
5.6
10.0
3.0 2,591
95
Slovakia
30,000 1,700
8.6
8.6
15.0
10.0 7,074
318
Hungary 31,000
3,800
21.6
40.1
15.0
10.0
11,358
1,902
Slovenia
20,000 1,300
26.2
62.6
15.0
10.0 8,233
944
Croatia
23,000 2,200
6.6
10.9
15.0
10.0 4,959
459
Bosnia-Herzegovina 36,000 2,200
13.1
38.8
10.0
10.0 8,300
1,073
Serbia & Montenegro
72,000
7,000
9.4
69.5
10.0
10.0
13,993
5,563
Bulgaria
23,000 4,000
11.7
15.0
10.0
10.0 4,983
999
Romania
121,000 12,700
9.8
12.5
10.0
10.0 23,960
2,861
Moldova
8,000 1,400
86.3
64.6
5.0
5.0 7,298
975
Ukraine
28,000 4,000
1.7
1.6
10.0
5.0 3,286
265
Total
552,000
48,900
10.3
23.8
10.9
8.2
118,576 16,156
* Percentage for expected reduction of nutrient emissions from non-point sources has been estimated, taking
into account emission reduction to be expected following the implementation and compliance with new
policies and legislation in line with EU Directives.
The results in the table indicate that with the implementation of structural (projects) and non-structural
measures (policies and legislation), the total annual nutrient reduction will be about 119,000 tons for
nitrogen (22%) and 16,000 tons for phosphorus (33%). It can be further assumed that about half of the
nitrogen reduction will come from the rehabilitation of point sources (waste water treatment) and the other
part from nutrient reduction from diffuse sources, in particular from change of agricultural practices. The
GEF Regional Project (Phase 2) will continue to provide the necessary support to the ICPDR and the
participating countries to realize these goals and to contribute essentially to achieving the goal of holding
the Nitrogen and Phosphorus loads to the Black Sea at the 1997 level respectively further reducing them to
meet the objectives of the Memorandum of Understanding between the ICPDR and ICPBS.

(c)
Priority Municipal Projects
In 2001 the DABLAS Task Force was formed to implement the declaration on "Protection of Water and
Water related ecosystems in the wider Black Sea Region" and to provide a platform for co-operation and
to facilitate financial arrangements for the implementation of projects for pollution reduction and
rehabilitation of ecosystems in the wider Black Sea region.
In the Danube region, the selection of priority projects at a regional scale was carried out by the ICPDR.
The revision of lists of national projects of the Joint Action Programme and selection of municipal priority
projects has shown that among the 158 projects, 45 are fully funded with a total of 622 mil. EUR. The
investment need for the remaining 113 projects is 2,567 mil. EUR, of which 2,121 mil. EUR are not yet
secured.
The projects differ in size from >1,000,000 population equivalent (Belgrade, Bucharest, Budapest,
Sarajevo, Zagreb) to ca. 10,000 PE. Project preparedness is also highly variable, ranging from projects
that are missing <10% of the total investment demand, to projects that have outdated or non-existent plans
and no funding secured.

Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
15
Summary of Municipal Priority Projects
Country
Projects
Funding (mil. EUR)
Pollution Reduction (tons/a)
PE of
Fully
Total
Secured Not Secured
WWTP's
Total
Financed 158 pr.
113 pr.
113 pr.
158 proj.
BOD
COD
Total N
Total P
Bosnia & Herzeg.
6
0
145.2
0.6 144.6
1,680,000
15,190
26,559
3,727 593
Bulgaria 26
0
203.2
0
203.2 1,998,193
18,681
27,822 1,936 396
Croatia 15
0
217.0
0
217.0
2,576,800 7,198 15,302 4,820 983
Czech Republic
18
14
178.9
0
22.8
1,431,520
170
106
872
56
Hungary 17
9
879.7
105.5
631.8
4,964,765
34,792
66,198
6,001
1,447
Moldova 12
0
32.4
0.9
31.3
778,000
604
438
543
11
Romania 18
0
674.5
168.8
505.7 5,708,000 9,495
14,418 3.412 744
Serbia &
7 0
350.1
89.7
260.4
3,080,000
71,574
54,223
7,050
1,749
Montenegro
Slovak Republic
15
7
164.3
80.2
42.5 1,688,780
4,832 7,096 1,748 132
Slovenia 16
15
300.8
0
18.1
1,022,100 25,755 43,261 4,383 723
Ukraine 8
0
43.5
0.4
43.1 1,278,400
1,218 1,968 914 216
Totals 158

45
3,189
446
2,121
26,206,558 189,509 257,397 35,406 7,050


I - 6 Mechanisms for Regional Cooperation for the Protection of Water and
Ecological Resources in the Danube River Basin
(i)
The Danube River Protection Convention
The Danube River Protection Convention is a legally binding instrument, which provides a substantial
framework and a legal basis for cooperation between the contracting parties, including enforcement. The
main objective is the protection and sustainable use of ground and surface waters and ecological
resources, directed at basin-wide and sub-basin-wide cooperation with transboundary relevance. Joint
activities and actions are focused on coordination and enhancement of policies and strategies, while the
implementation of measures lies mainly with the executive tools at the national level. The Strategic
Action Plan provides guidance concerning policies and strategies in developing and supporting the
implementation measures for pollution reduction and sustainable management of water resources
enhancing the enforcement of the Danube River Protection Convention.
Twelve of the 13 DRB countries eligible to join the Danube River Protection Convention (DRPC), which
came into force in October 1998, have already ratified it, together with the European Commission.







16
Project Brief / Danube Regional Project ­ Tranche 2
(ii)
The International Commission for the Protection of the Danube River (ICPDR)
Recognizing individually and responding in common to the obligations of the DRPC, the Danube
countries have established the International Commission for the Protection of the Danube River to
strengthen regional
cooperation. It is the
Organisation Structure under the Danube River Protection Convention
institutional frame not only for
pollution control and the
CONFERENCE OF THE PARTIES
protection of water bodies but
International Commission
it also sets a common platform
for the Protection
Permanent Secretariat (PS)
of the Danube River
for sustainable use of
(ICPDR)
­ Supporting the ICPDR sessions
­ Supporting the Expert Groups (and PMTF)
ecological resources and
­ Implementation of Danube River Protection
­ Co-ordinating the work programme
Convention (DRPC)
­ Supporting project development and implementation
­ Decision making, management and coordi-
­ Maintenance of the Information System
coherent and integrated river
nation of regional cooperation
­ Approval of the budget and annual work
basin management. The
programme
UNDP/GEF
­ Follow up of activities and evaluation of re-
ad-hoc
sults from Expert Groups
Strategic Expert Group
Danube Regional Project
Commission has created
( S / EG )
­ Joint Action Programme
­ Creation of sustainable ecological conditions for land use and water
­ Strategic issues
management
­ Legal issues
several Expert Groups to
­ Capacity building and reinforcement of trans-boundary cooperation
­ Administrative and financial
issues
­ Strengthening public involvement in environmental decision making
­ Reinforcement of monitoring, evaluation and Information System
strengthen the proactive
participation of all Contracting
Ecology
Emissions
Monitoring, Laboratory
Accident Prevention &
Flood Protection
Parties and associated River Basin Mgmt
( RBM / EG )
( ECO / EG )
( EMIS / EG )
& Information Mgmt
Control ( APC / EG )
( FLOOD / EG )
( MLIM / EG )
countries in the design and ­Integrated river basin
­ Habitats and species
­ Emissions from point
­ Trans-National Monitoring
­ Accidental pollution
­ Preparation and
management
protection areas
sources
Network (TNMN)
incidents
Implementation of the
­ Implementation of EUWa-
­ Management of wetlands
­ Emissions from diffuse
­ Laboratory QualityAssu-
­ AEWS operations
Action plan for sustainable
terFramework Directive
and floodplains
sources
rance
­ Accident prevention
Flood protection
implementation of joint
­ Guidelines on BAT
measures for pollution
IHP Water Balance WG
reduction, including nutrients,
WG on Sava
GIS ESG
Econ ESG
Danube/ Black
EMIS MLIM
WG
­ Preparation
RBM Plan
Sea JTWG
JTWG
Inventories
of the Water Balance
and water management.

I - 7 Cooperation between the ICPDR and the International Commission for
the Protection of the Black Sea (ICPBS)
(i)
Findings of the Joint Ad-hoc Technical Working Group of the ICPDR and the ICPBS
In 1998, the ICPDR and the ICPBS established a joint Working Group, which analyzed the causes and the
effects of eutrophication in the Black Sea. In its findings, the Working Group indicated that the loads
entering the Black Sea from the Danube had fallen in recent years due to the collapse of the economy of
many transition countries formerly attached to the Soviet Block, the measures undertaken to reduce
nutrient discharges in the upper Danube countries, in particular Germany and Austria, and a decline in the
use of phosphate in detergent.
The Working Group concluded that in spite of the evidence of recovery in the Black Sea ecosystems, there
were still concerns that the nutrient discharges to the Black Sea ­ in line with the expected economic
growth ­ were likely to rise again unless action was taken to implement nutrient discharge control
measures as part of economic development strategies.
The Working Group went on to define the possible objectives and strategies, which are presently included
in the Memorandum of Understanding between the ICPDR and the ICPBS, as follows:

the long-term goal is defined as a recovery of the Black Sea ecosystems to conditions similar to
those in 1960;

as a mid-term goal, measures should be taken to prevent discharges of nutrients and hazardous
substances from exceeding the levels of 1997;

inputs of nutrients and hazardous substances should be assessed, monitoring and sampling
procedures should be determined, and the results should be reported.

Based on these results in order to facilitate and support the implementation of the Memorandum of
Understanding within the Phase 1 of DRP the Joint Danube/Black Sea Technical Working Group has been
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
17
revitalized. Both Commissions approved a new TOR and Work Program for the Group, focused on the
development of ecological status indicators for the Black Sea, on the development of a regional
monitoring program for the Black Sea and on updating of the assessment on point and non-point sources
of pollution and the ecological status of the Black Sea, including eutrophication (cause-effect analysis).

(ii)
Analysis of Point Sources and Non-Point Sources of Pollution with Particular Attention to
Nutrient Transport to the Black Sea
In the frame of the Pollution Reduction Program, over 500 hot spots were identified for the municipal,
industrial and agricultural sectors. The geographical distribution of hot spots in the Danube River Basin
indicates a clear concentration of municipal and agricultural hot spots in the upper Drava and Sava Sub-
river Basins, in the Lower Tisza and around Belgrade and in the central part of Bosnia-Herzegovina. In the
Carpathian Mountains of the upper Tisza and Prut Sub-river Basins, important mining and industrial hot
spots have been identified, from which recent accidents - the cyanide spill of Baia Mare and the sludge
containing heavy metals from Baia Borsa - have been reported. (Annex 7 ­ Maps: Distribution of Hot
Spots in the Danube Sub-River Basins).
Applying the Danube Water Quality Model (DWQM), the total nutrient transport from point and non-
point sources, to the Black
Sea was analyzed, indicating
Annual Nitrogen Load in the Danube (in kt/y), by countries
a total of 552 kilotons of
of origin, with a high estimate for the in stream
nitrogen and 48.9 kilotons of
denitrification (= removal rate)
phosphorus reaching
60
nitroge n (kt/a )
0
annually the Black Sea.
28 (5.1%)
Studies undertaken in the
8 (1.5%)
500
GERMANY
AUSTRIA
CZECH_RE
SLOVAKIA
frame of the Danube
HU NGARY
SLOVENIA
CROATIA
SERBIA_M
121
(22%)
Environmental Program
BOSN IA_H
BULGARIA
ROMANIA
MOLDOVA
400
UKRAINE
suggest that about half of the
23 (4.1%)
36 (6.5%)
nutrient discharged internally
300
72 (13.1%)
in the basin come from
23 (4.1%)
agriculture (diffuse sources
20 (3.5%)
31 (5.6%)
200
of pollution), slightly more
30 (5.4%)
15 (2.8%)
than one quarter from
77 (13.9%)
100
domestic sources, an
additional larger share comes
68 (12.3%)
0
n
r
a
r
r
e
r
v
a
a
r
v
e
es
ow
from industry and the
r
ce
n I
SM
a
is
r
de
u
r de
r
d
/
r
d
a t
r de
o
T
Dr
Sa
o
G
o
o
tfl
so
b
bo
CR
b
b
b
ou
A
H
o
on
O
-
t
O
D-
K
H
-
R
Ir
- BG
-
R
total
552 (100%)
-
S
remainder from
SM
SM
BG
/Aa
v
r
a
Mo
"background" sources.
18
Project Brief / Danube Regional Project ­ Tranche 2
II
Project Objectives
The long-term development objective of the Danube Regional Project is to contribute to sustainable
human development in the DRB through reinforcing the capacities of the participating countries in
developing effective mechanisms for regional cooperation and coordination in order to ensure protection
of international waters, sustainable management of natural resources and biodiversity.
In this context, the GEF Regional Project should support the ICPDR, its structures and the participating
countries in order to ensure an integrated and coherent implementation of the Strategic Action Plan 1994
(SAP 1994), the Common Platform and the forthcoming JAP and the related investment programs in line
with the objectives of the DRPC.
The overall objective of the Danube Regional Project is to complement the activities of the ICPDR
required to provide a regional approach and global significance to the development of national
policies and legislation and the definition of priority actions for nutrient reduction and pollution
control with particular attention to achieving sustainable transboundary ecological effects within
the DRB and the Black Sea area.
The specific objective of Phase 2 of the Project, December 2003 ­November 2006, is to set up
institutional and legal instruments at the national and regional level to assure nutrient reduction and
sustainable management of water bodies and ecological resources, involving all stakeholders and
building up adequate monitoring and information systems. To reach these goals and to secure the
implementation and consolidation of those basin-wide capacity-building activities, the Project has to
build up on the results achieved during the 1st Phase of the Project (December 2001 ­ November 2003).
During Phase 2, altogether 20 project components with 79 activities will be carried out.
Taking into account the basic orientations of the Danube/Black Sea Basin Programmatic Approach, the
Danube Regional Project shall reinforce the implementation of the Danube River Protection Convention in
providing a framework for coordination, dissemination and replication of successful demonstration that
will be developed through investment projects (World Bank-GEF Strategic Partnership, EBRD, EU
programmes for accession countries etc.).
The following immediate objectives are designed to respond to the overall development objective:
1) OBJECTIVE : Creation of sustainable ecological conditions for land use and water
management
Output : Nutrient reduction policies and legal instruments and measures for exacting compliance are
developed and implemented in all Danube River Basin countries with particular attention to the EU Water
Framework Directive, integrated river basin management, best agricultural and industrial practices,
appropriate land use and wetland management and economic instruments.
Approach : Supporting the ICPDR and the DRB countries in introducing and applying appropriate
policies, institutional and legal instruments in line with relevant EU directives to improve water
management and water quality control with particular attention to toxic substances and nutrient reduction
(e.g. agricultural, industrial, and municipal policy and legislative reforms, wetlands management) and in
developing mechanisms for exacting compliance with policies and legislation.
Assuring policy coherence to the guidelines of the Global Program of Action on Control of Land Based
Sources of Pollution, with particular emphasis on the strategic goals regarding mitigation of transboundary
effects and rehabilitation of the Black Sea.
2)
OBJECTIVE : Capacity building and reinforcement of transboundary cooperation for the
improvement of water quality and environmental standards in the DRB
Output : Institutional and organizational mechanisms for transboundary cooperation in pollution control
and nutrient reduction are developed and mechanism for improved water quality monitoring, emission
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
19
control, emergency warning and accidental prevention and information management are fully operational
at the regional and national level.
Approach : Supporting the ICPDR and its Expert Groups to improve their institutional, administrative and
technical capacities to assure basin wide harmonization of water quality regulatory standards including
specific provisions for nutrient reduction; to further develop specific regional information system and
mechanisms for transboundary pollution monitoring and evaluation considering EU regulations (WFD)
and GEF IW M&E indicators (process, stress reduction, environmental status). In this context, the Joint
Danube/Black Sea Working Group will be revitalized to assure follow-up of the implementation the
Memorandum of Understanding elaborated by the two Commissions. At the national level, Inter-
ministerial Committees, involving all technical, administrative and financial departments shall assure
adequate coordination and implementation of policies, legislation and projects for nutrient reduction and
pollution control. Organizing workshops and training courses on institutional, administrative,
technological and economic issues for individuals and participants from ministries, public authorities and
private institutions with responsibilities related to the use, control and impacts of nutrients in the DRB,
respectively their effects on the Black Sea.
A mid-term stocktaking meeting shall be organized to ensure coordination of the Danube Regional Project
with the Black Sea Regional Project and the World Bank Investment Fund.
3)
OBJECTIVE : Strengthening of public involvement in environmental decision making and
reinforcement of community actions for pollution reduction and protection of ecosystems
Output : Community based projects for nutrient reduction (Small Grants Program) are implemented in all
DRB countries and public concern and response to ecological issues has increased due to the organization
of awareness raising campaigns and the regular publishing of basin-wide and national information
material; the DEF Secretariat is efficiently operating using its own resources and supports national NGOs
in the Danube River Basin.
Approach : Continuing support to NGOs in professional, institutional, administrative and funding issues
to boost their capacities and to develop at the end of the Project sustainable mechanisms for active
participation in transboundary pollution control with particular attention to nutrients and certain toxic
substances. In this context, NGO activities will be reinforced through the implementation of a Small
Grants Program ("applied" awareness raising) providing financial support for community based nutrient
reduction projects identified during Phase 1. Concepts for awareness raising campaigns and information of
the public prepared also in Phase 1 of the Project shall now be implemented and cooperation with mass
media shall be reinforced.
4)
OBJECTIVE : Reinforcement of monitoring, evaluation and information systems to control
transboundary pollution, and to reduce nutrients and harmful substances
Output : A Danube Basin wide system for monitoring and evaluation of environmental impacts is
operational, using indicators for process, stress reduction and environmental status in line with EU and
international reporting requirements, allowing at the same time follow-up and evaluation of project
implementation results; special observations on nutrient removal from wetlands and accumulation of
heavy metals and other pollutants in sediments are available and economic instruments (pollution trading)
are analyzed.
Approach : Supporting the development and upgrading of monitoring and information systems, which are
of significant importance for transboundary cooperation in water quality and water management and of
common interest for the Danube and the Black Sea countries. Particular attention will be given to the
development and use of indicators (process, stress reduction and environmental status indicators) and
monitoring of project implementation activities. For this purpose special methodologies will be developed
for assessment of sediments (heavy metals, toxic substances) and nutrient removal capacities of wetlands.
Also economic mechanisms analyzed in Phase 1 of the Project will be disseminated.
20
Project Brief / Danube Regional Project ­ Tranche 2
III
Project description
The compilation of immediate objectives indicates the broad spectrum of 20 project components and 79
activities to be dealt with in the framework of the proposed Phase 2 of the Danube Regional Project in
order to fulfill its role as an integral part of the proposed Danube/Black Sea Basin Strategic Partnership.
In line with the immediate objectives, the particular 20 project components of the proposed Phase 2 of the
Danube Regional Project are grouped as follows:
1. Creation of sustainable ecological conditions for land use and water management;
2. Capacity building and reinforcement of transboundary cooperation for the improvement of
water quality and environmental standards in the Danube River Basin;
3. Strengthening of public involvement in environmental decision making awareness and
reinforcement of community actions for pollution reduction and protection of ecosystems;
4. Reinforcement of monitoring, evaluation and information systems to control transboundary
pollution, and to reduce nutrients and harmful substances.

1. Creation of sustainable ecological conditions for land use and water
management
In most central and downstream DRB countries, the development of water-related policies and legal
instruments are still in the phase of preparation and it is obvious that there are significant deficiencies in
the existing policy framework. Most of these countries are in the EU accession process and have to adjust
their legal frame to meet the EU directives and regulations and assure compliance. For issues that are of
common interest for the DRB countries and of special importance for water quality and water resource
management, particularly related to nutrients, eight project components have been identified to be carried
out in the frame of the present Regional Project.
1.1 Development and implementation of policy guidelines for river basin and water resources
management
Considering the DRPC´s mandate to assure sustainable water management in the DRB and taking into
account the central role of the river basin management in implementing the new EU Water Framework
Directive, there is a substantial need to facilitate the development of river basin management plans in the
Danube River Basin and in its sub-basin areas. These river basin management plans will have to deal with
nutrient reduction from point- and non-point sources.
This project output will assist the DRB countries in the development of common tools and in
implementation of common approaches, methodologies and guidelines for sub-basin management plans.
The project will assist in the implementation of EU Water Framework Directive in DRB in order to
implement a basin wide concept of River Basin management.
To assure efficient implementation of the EU Water Framework Directive and a coherent approach to
River Basin Management, the ICPDR has set up a specialized Expert Group to develop guidelines for the
elaboration of the River Basin Management Plans, their implementation and the development of
institutional and legal mechanisms.
During the Phase 1 of the Danube Project concepts and analytical material are being prepared, which later
during Phase 2 of the Project will be implemented in form of national contributions, pilot projects and
workshops on river basin management and implementation of the EU WFD.
The activities of the EG shall be supported by international expertise in order to develop standardized
methodologies and guidelines for sub-river basin management plans and a methodology for the
aggregation of the sub-river basin management plans to a basin wide management concept. This should
take into consideration EU-WFD and GEF IW strategies to develop guidelines for particular sub-river
basins to reinforce transboundary cooperation.
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
21
The main activities to be supported and carried out in Phase 2 in cooperation with the RBM Expert Group
can be summarized as follows:
·
Implementing common approaches and methodologies for pressure and impact analysis (at the
national level) (follow-up from Phase 1);
·
Applying the EU Guidelines for economic analysis and arrive at an comparative analysis for the
Danube River Basin (follow-up from Phase 1);
·
Developing RBM tools (mapping, GIS, remote sensing, etc.) and related data management
(follow-up from Phase 1)
·
Development of typology of surface waters and the relevant reference conditions and
implementation of ecological classification systems (follow-up from Phase 1);
·
Developing RBM Plan in a pilot project (Sava River Basin) and applying in test areas common
approaches, methodologies, standards and guidelines, providing feedback to the RMB EG and to
the European Commission Working Groups for the implementation of the WFD (follow-up of
Phase 1);
·
Assisting Danube River Basin countries in developing strategies to come in compliance with the
EU WFD, and in preparing the program of measures;
·
Assisting ICPDR in further development of the Danube River Basin Management Plan in line
with the requirements of the EU WFD;
·
Organizing workshops and training courses in order to produce the River Basin Management Plan
and to strengthen basin-wide cooperation (follow-up from Phase 1).
1.2 Reduction of nutrients and other harmful substances from agricultural point and non-point
sources through agricultural policy changes
According to the Transboundary Analysis (1999), it is assumed that about half of nutrients discharged in
the Danube Basin to the fine web of the river network come from agricultural non-point sources of
pollution. For the necessary nutrient pollution reduction from agricultural sources combination of different
policy measures is needed.
The Project Output 1.2 focuses on assisting the Danube River Basin (DRB) countries in designing new
agricultural point and non-point source pollution control policies and legislation towards sustainable land
use and agricultural practices ("sustainable agriculture") as well as compliance and enforcement plans in
line with the existing and emerging (driven by EU accession process) national legislation.
In Phase 1 of the Danube Regional Project (DRP), a first analysis is based on a revised "hot spot"
inventory of point and non-point sources of pollution from agriculture, taking into account the findings
and recommendations of the field-based demonstration programs conducted in Central and Eastern
European countries with the support of the EU and GEF.
The project will update the information on the use of agrochemicals and identify specific policy and legal
measures to assist the participating countries in meeting their obligations to reduce agricultural point and
non-point source pollution.
For EU accession countries, specific programs will be developed that will assist them in meeting their
obligations under the EU Water Framework Directive, as well as the requirements of the Nitrate Directive
(91/676/EEC).
In Phase 2 of the Project policy and legal recommendations will be worked out for DRB governments to
reinforce the introduction of "best agricultural practice" and to optimize the use of agrochemicals.
The main focus of this assistance is to identify for each DRB country the main administrative, institutional
and funding deficiencies and to develop priority reform measures for policies which are expected to best
support the integration of environmental concerns into farm management ("best agricultural practices"),
including improvements in the handling of manure and sludge from livestock operations, minimization of
22
Project Brief / Danube Regional Project ­ Tranche 2
use of chemical fertilizers and pesticides, promotion of improved tillage methods, management of restored
wetlands and creation of buffer zones as well as farmer education and outreach activities.
For this purpose, the following actions should be considered in Phase 2:
·
Reviewing the relevant legislation, existing policy programs and actual state of enforcement in the
DRB and formulating recommendations for the application of best agricultural practices (follow-
up from Phase 1);
·
Reviewing the inventory on important agrochemicals (nutrients etc.) and formulating
recommendations for their appropriate use to assure reduction of environmental impact (follow-up
from Phase 1);
·
Introducing or, where existing, further developing concepts for the application of best agricultural
practices in all DRB countries, by taking into account country-specific traditional, social and
economic issues, and the ECE recommendations (follow-up from Phase 1);
·
Discussing the new concepts for best agricultural practices with and disseminate results to
governments, farming communities and NGOs in the basin.
1.3 Development of pilot projects on reduction of nutrients and other harmful substances from
agricultural point and non-point sources
This pilot project component has to be considered as complementary to the above-described policy
component, it is particularly focusing on adequate handling of manure and on the practical introduction of
organic farming methods. Agricultural point sources (e.g. large pig farms), including inappropriate
handling of manure, are estimated to supply 2.5% and 6.8 %, respectively, of the nitrogen and phosphorus
reaching the Danube River Basin.
Through the Project Output 1.3 the DRP will assist the DRB countries (especially in the lower Danube
basin) with the development of low-input agriculture and with pilot programs for agricultural pollution
reduction, in line with existing and emerging (driven by EU accession process) national environmental
legislation.
It will help to introduce new relationships among national governments, local governments, agricultural
community and general public (different land-users) in order to improve management practices in
agriculture and to reduce nutrient loads.
Specific needs to improve agricultural practices and relevant sites for demonstration activities on manure
handling should be identified in practical concepts for each DRB country. Focus countries for pilot
projects (training and institutional development of best agricultural practice) should be Ukraine, Moldova,
Romania, Bulgaria, Serbia & Montenegro and Bosnia & Herzegovina.
Based on the analysis of agricultural "hot spots" and taking into account national concepts developed in
Phase 1, for practically introducing respectively expanding best agricultural practices in each DRB
country, Phase 2 will focus on the implementation of the prioritized pilot projects in particular in Ukraine,
Moldova, Romania, Bulgaria, Serbia & Montenegro and Bosnia & Herzegovina but will also strengthen
already existing initiatives in other DRB countries. It will provide demonstration and training to local
farmers on best manure handling and best agricultural practices, as well as stimulate the institutional
development of low input farming. In a concluding regional workshop, the experiences gained at local and
national level should be assessed and conclusions shared.
The following steps should lead to an efficient implementation of this project component in Phase 2:
·
Preparing and implementing for the central and lower DRB countries typical pilot projects
(especially in UA, MD, RO, BG, S-M and B-H) to train and support farmers in the application of
best agricultural practice (followed up from Phase 2);
·
Organizing a series of training and demonstration workshops to disseminate the results of the pilot
projects.

Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
23
1.4 Policy development for wetlands rehabilitation under the aspect of appropriate land use
In the case of conflicting possibilities for land use, priorities were in the past usually set on extension and
intensification of human settlement and economic activities, with the consequence that ecologically
sensitive areas/wetlands were steadily impacted in their function or completely disappeared.
The present project component shall address effects of transboundary pollution with particular attention to
nutrients and toxic substances in relation to typical situations of inappropriate land use resulting from
municipal settlement, agricultural activities, deforestation, hydraulic structures and their impact on
ecologically sensitive areas and wetlands. While targeting action at a high policy level, the output also is
directed towards demonstrating pragmatic implementation of appropriate land use management on the
ground in pilot activities. In Phase 1, based on case studies in the DRB, standardized concepts are being
developed for the rehabilitation of sensitive areas/wetlands, and for an integrated land use. In Phase 2,
these concepts and methodological approaches shall be discussed and required policy, legal and
institutional reforms shall be applied in the case study areas as models for integrated land use in the DRB.
Further, the reform models shall also be proposed to Governments and land development organizations for
adaptation of policies and practical implementation.
The main tasks of the proposed activity in Phase 2 can be summarized as follows:
· Developing alternative concepts and strategies for achieving integrated land use and management
in chosen wetland areas, including required actions and measures (regulatory and legal issues,
economic fines and incentives, compensation payments, etc) (follow-up from Phase 1);
· Securing governmental commitments to implement the newly proposed concepts for integrated
land use in the selected case study areas;
· Disseminating project results in the Danube river basin.
1.5 Industrial reform and development of policies and legislation for application of BAT (best
available techniques including cleaner technologies) towards reduction of nutrients (N and P)
and dangerous substances
Industrial reform is one of the most urgent and critical issues in most central and lower DRB countries.
Considering that industrial production in transition countries is actually very low, it is not surprising that
industry generates only respectively 5 and 8 % of nitrogen and phosphorus that enter the Danube River
Basin.
Taking into account the expected revitalization of industries, it is necessary to focus on industrial policies
and on a review of legislation in order to ensure that environmental considerations are adequately taken
into account and that mechanisms for compliance are put in place.
The project should also address the problem of industrial nutrient "hot spots" in relation to Significant
Impact Areas (SIA) as identified in the Transboundary Analysis, to determine transboundary nutrients and
toxics pollution from particular industries and identify possible solutions (BAT - best available techniques
including cleaner technologies, treatment process, etc.) to reduce the emissions. In this context, the project
output will assist the DRB countries in the development of new industrial nutrient/toxics pollution control
policies and legislation in line with existing and emerging (driven by the EU accession process) national
legislation. While Phase 1 of the Project is focusing on the identification of gaps and opportunities for
reforms and measures, Phase 2 will now develop pilot applications of BAT concepts in selected countries.
The subject of this component is closely related to the work of the EMIS/EG, therefore the project
component should closely cooperate with the UNIDO/GEF-TEST MSP to ensure that interventions at the
policy/legislative and at the technical (demonstration) levels are complementary.
The following steps should lead in Phase 2 to an efficient implementation of this project component:
· Identifying industrial hot spots having a significant impact on water resources (abstraction,
thermal pollution) and water quality; define SIA of industrial pollution (analyze cause-effect
relationship) (followed up from Phase 1);
24
Project Brief / Danube Regional Project ­ Tranche 2
· Comparing and identifying gaps between relevant EU and national legislation and follow up
Government measures for compliance (followed up from Phase 1);
· Developing necessary complementing policy and legal measures for the introduction of BAT
(taking into account regulatory and legal issues, awareness raising, financial fines and incentives,
etc) (followed up from Phase 1);
· Developing appropriate implementation concepts for a step-by-step introduction of BAT in
industrial sectors;
· Organizing workshops with participants from relevant ministries, industrial managers, banking
institutions, introducing information on best available technologies, financial support, etc.
(followed up from Phase 1).
1.6 Policy reform and legislation measures for the development of cost-covering concepts for
water and waste water tariffs, focusing on nutrient reduction and control of dangerous
substances
The funding of water sector-related investments and the cost coverage for the operation of WWTP in the
DRB countries largely depends on economically and socially acceptable water and waste water tariffs.
Policy and legislative measures shall be developed for interested DRB countries to assure the introduction
of economically and socially acceptable tariffs. This project component shall help to improve the
investment possibilities for reduction of nutrients and toxic substances.
Water and wastewater service tariffs have the potential to improve both water resource management
generally and protection of water bodies from nutrification and hazardous substances. They may be able
to make a substantial contribution towards increasing internal funds and releasing public budgets and
thereby facilitate the provision of baseline contributions for new investment projects in transboundary
nutrient reduction and pollution control. The realization of this potential depends on both a clear
understanding of economic instruments in general and a recognition of specific institutional, technical, and
financial conditions that apply in a given locality, basin, or country.
Phase 1 of the Project is being focused on assessment of presently existing tariffs for water and waste-
water services for reducing polluting effluents and on development of concepts for these economic tools.
Phase 2 will prepare and suggest guidelines for their introduction and set the basis for implementation
with national stakeholders. Phase 2 will develop and discuss with stakeholders respective economic
mechanisms and tariff models taking into social and economic conditions of Danube countries or groups
of countries.
Based on the results of the assessment of Water and Waste Water Tariffs, the following actions shall be
considered in Phase 2:
· Developing proposals for policy reforms and legislative measures required for the establishment
of cost - covering tariff models in line with the WFD and proposing recommendations for phased
implementation of tariff reforms;
· Organizing national workshops with participants from relevant ministries, municipalities and the
private sector (NGOs) on the introduction of economically and socially acceptable water and
waste water tariffs.
1.7 Implementation of effective systems of water pollution charges, fines and incentives, focusing
on nutrients and dangerous substances
Most DRB countries are not currently applying an effective system of fines for water pollution and
respective incentives in comparison to industrialized Western European countries. The basic idea is,
therefore, to assist the interested DRB countries to develop an effective system of fines and incentives to
promote rational utilization of water resources and to prevent or reduce effects of environmental pollution,
specifically nutrients and certain toxics. Within the broad framework of fines and incentives particular
attention should be given on discharges of nutrients and toxic pollutants with significant transboundary
effects.
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
25
The development and implementation of new effective system of waste-water charges, fines and
incentives in the EU accession countries shall take into account the implementation plans for all water
quality protection Directives and the policies and strategies that have been developed to reach the full
compliance with EU legislation.
Phase 1 of the Project is focusing on assessment of presently existing tariffs for water and waste-water
services and charges, fees, and incentives for reducing polluting effluents and on development of concepts
for these economic tools. Phase 2 will prepare and suggest guidelines for their introduction and set the
basis for implementation with national stakeholders.
Phase 2 will now prepare and discuss guidelines for the most appropriate charges, fines and incentives.
The main tasks of the proposed component in Phase 2 can be summarized as follows:
· Developing appropriate concepts for the introduction of balanced and effective systems of water
pollution charges, fines and incentives in the particular DRB countries;
· Organizing workshops on the application of appropriate water pollution charges, fines and
incentives, with participants from relevant ministries, municipalities and the private sector.
1.8 Recommendations for the reduction of phosphorus in detergents
The EU policies and legislation do not provide for phosphate detergents phase-out plans. The present
situation in the EU countries is based on voluntary arrangements set by the industry. Whereas Phase 1 of
the Project is assessing the country-specific situation including the reduction barriers and develop
proposals for accomplishing a voluntary agreement between ICPDR and the Detergent Industry.
Phase 2 will now periodically check the implementation of recommendations.
The basic idea of this project component in Phase 2 is to:
· Organizing two workshops (followed up from Phase 1);
· Monitoring and evaluating results at the national level.
The country-specific recommendations and implementation schedules should mostly be based on the
experiences from Western European countries and should take into account the institutional and especially
the economic capability of the particular DRB countries.


2. Capacity building and reinforcement of transboundary cooperation for
the improvement of water quality and environmental standards in the
Danube River Basin
One of the essential and positive results of the previous GEF Pollution Reduction Programme was the
successful support provided for institutional strengthening and capacity building of government, local
administration and the private sector (NGOs) in the participating DRB countries.
In order to ensure efficient implementation of the ICPDR policies and related Investment Program defined
under the DRPC, it is recommended that national capacities of the central and the sub-ordinate national
level should be reinforced. In this context, exchange of information, reinforcement of environment
research and standardization of methods and parameters are essential to strengthen regional cooperation
and joint decision making in implementing the SAP.
The respective project components defined in the frame of the present Regional Project (Phases 1 and 2)
are primarily designed to support the ICPDR in establishing an appropriate Management and Information
System, and in establishing appropriate indicators for evaluation and monitoring of program and project
implementation (process, status and stress reduction). Secondly, the Expert Groups established under the
ICPDR should be supported in carrying out the particular tasks and activities clearly dealing with nutrient
reduction and transboundary issues, which might not be adequately covered without GEF assistance.
26
Project Brief / Danube Regional Project ­ Tranche 2
At the national level "Inter-ministerial Committees", which have been set up during the 1st Phase of the
Project involving all technical, financial and administrative departments, will assure adequate coordination
and implementation of policies, legislation and projects for nutrient reduction and pollution control.
2.1 Setting up of "Inter-ministerial Committees" for development, implementation and follow-up
of national policies legislation and projects for nutrient reduction and pollution control
This project component is being finalized in the 1st phase of the project
2.2 Development of operational tools for monitoring, laboratory and information management
and for emission analysis from point and non-point sources of pollution with particular
attention to nutrients and toxic substances
This project output will assist DRB countries to develop, upgrade and reinforce capacities of tools for
emission control and monitoring of water quality, laboratory and information management.
The models and applications supported mostly with data from the TNMN and Emission Inventory are
essential tools for a profound assessment of environmental stress and impact, in particular transboundary
nutrient and toxic pollutant flows as well as an assessment of the expected effects of nutrient and other
pollution reduction measures. The present nutrient reduction plans can be adjusted and the implementation
of policy measures can be focused on specific areas or sectors.
To assure the coherence and viability of data collection in all Danube countries, it would be necessary to
provide training and additional laboratory and monitoring tools, including development of SOPs and
preparation of reference materials. Particular attention should be given to those countries that still need to
be brought to the same operational level (Ukraine, Moldova) and are not yet integrated in the MLIM and
EMIS systems (Bosnia-Herzegovina, Serbia & Montenegro).
Phase 1 of the Project is preparing for the upgrading of existing operational tools, while Phase 2 will
secure their effective application and the DRB-wide data availability.
In this project component, particular attention should be given to the results of the Joint Danube Survey
(JDS), which was carried in 2001-2002 and provided comparable biological and chemical characteristic
data along the Danube in the main river bed as well as in the major tributaries. In addition to the
comparable data sets the JDS was the most comprehensive survey covering wide range of chemical
pollutants, aquatic flora and fauna and biological indicators. It also provided the appropriate data and
information necessary for the ecological and chemical surface water status characterization in line with the
EU Water Framework Directive.
Further assistance is proposed in Phase 2 to strengthen other activities in the MLIM/EG and the EMIS/EG,
with particular attention to the following nutrient/pollution reduction and transboundary issues:
· Harmonizing water quality standards (finalize classification schemes) and quality assurance for
nutrients and toxic substances (follow-up from Phase 1);
· Further development of databases for EMIS / MLIM in order to assess environmental stress and
impacts (follow-up from Phase 1);
· Optimizing TNMN and identifying sources and amounts of transboundary pollution for substances
on the list of EU and DRPC priority substances; (follow-up from Phase 1)
· Organizing workshops to support strengthening of operational tools for monitoring, laboratory and
information management and for emission analysis from point and non-point sources of pollution
(follow-up from Phase 1)
In this context, consultation and working meetings of the Expert Groups for specific issues should be
arranged in cooperation with international consultants specialized in the respective field of work..

Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
27
2.3 Improvement of procedures and tools for accidental emergency response with particular
attention to transboundary emergency situations
The accidental pollution of the Tisza and the Siret rivers from mining and industrial (chemical plant)
activities in 2000 and the effects of NATO intervention in Yugoslavia in late nineties, the bombing of
petrochemical and other industrial complexes in the Danube River Basin, led to a contamination of ground
water and rivers with toxic substances (PCBs, PAHs, cyanide, etc.), the accumulation of heavy metals in
sediments and to a destruction of ecosystems (fish kill). Hence, urgent support is needed to improve
preventive and emergency response measures.
The subject of this project component is to support development activities for accident emergency
warning and prevention of accidental pollution. The experience from the accidental pollution events
indicates that the basically established APC/EG needs substantial improvement before it can become a
satisfactory tool for adequate management of transboundary contamination from catastrophic events.
During Phase 1 of the Project, the operational bases of the alarm system are being upgraded and
preventive policy measures recommended. During Phase 2, the practical application of the alarm system
will be further extended in the DRB.
In this context, technical assistance and reinforcement of operational conditions are required in Phase 2
for:
· Reinforcing operational conditions in the national alert centers (PIACs) and geographical
extension of the AEWS in Bosnia-Herzegovina and Serbia & Montenegro1) (follow-up from
Phase 1);
· Support to completing and prioritisation of the Inventory of old contaminated sites in potentially
flooded areas in the Danube River Basin (follow-up from Phase 1);
· Support to upgrade of the ARS Inventory providing the detailed analysis, distribution on sub-basin
and industry branches and implementation of the check-lists (follow-up from Phase 1);
· Maintaining and calibrating of the Danube Basin Alarm Model (DBAM), to predict the
propagation of the accidental pollution and evaluate temporal, spatial and magnitude
characteristics in the Danube river system and to the Black Sea (follow-up from Phase 1);
· Organization of workshops to reinforce cooperation in accident and emergency/warning and
development of preventive measures (follow-up from Phase 1).
2.4 Support for reinforcement of ICPDR Information and Monitoring System (DANUBIS)
The Danube Information System (DANUBIS) has been developed with the financial support from the
Austrian Government (computer equipment and software) and from the Austrian Environmental Trust
Fund, administered by UNOPS (concept and development of the Information System). The system is
presently installed at the Permanent Secretariat of the ICPDR (Vienna International Center) and fully
operational.
Further professional/technical and financial support is needed for the build-up and extension of DANUBIS
to assure adequate administration of the information and reporting obligations under the DRPC. A new
interactive web-site is to be adapted ensuring a smooth flow of textual and geographic information
between the national level and the central unit at the ICPDR Secretariat. It will facilitate permanent
monitoring and exchange of information on pollution control and nutrient reduction measures and to
disseminate information to the public on policy and legal matters related to nutrient reduction: GEF
nutrient reduction policies, relevant EU guidelines and directives, other information from international
initiatives/conventions concerning land based sources of pollution, agricultural practices, fertilizer
application, phosphate free detergents, etc.

1 The Serbia and Montenegro is situated in an extremely important geographical position in the center of the Danube River Basin
where the most important tributaries, Tisza, Sava and Drava are joining the Danube. During the accidental pollution the AEWS
has also informed Serbia and Montenegro (former FR of Yugoslavia) and cooperated with its technical staff to monitor the
effects of accidental pollution. The UNEP Balkan Task Force and the EU-Baia Mare Task Force have closely cooperated with
Yugoslavian authorities in the assessment of accidental pollution and the design of emergency measures.
28
Project Brief / Danube Regional Project ­ Tranche 2
While during Phase 1 of the Project, the DANUBIS website extension became fully operational; in Phase
2 the interactive website will be further developed with particular attention to permanent updating and
basin wide maintenance of the system.
This would require in Phase 2:
· Further development of ICPDR Information System and ensure that it is used by its expert groups
and other operational bodies (follow-up from Phase 1);
· Reinforcement of the DANUBIS through the implementation of an interactive web-site to integrate
further textual, numerical and digital mapping information and to fulfill all requirements of the
work of the nutrient reduction program, respectively the work of the ICPDR and the GEF Project
(communication, monitoring, public information, etc.) (follow-up from Phase 1);
· Launching training at the national level and organize a series of workshops in order to train and
assist future users in the best use of the tools made available by the system (follow-up from Phase
1).
It should be noted that the ICPDR assure regular maintenance and up-dating of the information with
particular attention the Data Base developed within the frame of the previous GEF project (Danube
Pollution Reduction Program).
2.5 Implementation of the Memorandum of Understanding between the ICPDR and the ICPBS
relating to discharges of nutrients and hazardous substances to the Black Sea
This component implies assisting the ICPBS and the ICPDR in further implementing the Memorandum of
Understanding (MoU), identifying appropriate modalities for the implementation and developing of a
monitoring system for commonly agreed process, stress reduction and environmental status indicators for
the Black Sea. Further, coordination of activities of the DRP, the BSERP and the World Bank IF will be
enhanced by a mid-term Danube-Black Sea Stock-taking meeting early in Phase 2.
During Phase 1 of the Project, a joint working program was worked out and approved, during Phase 2 the
work program and in particular the monitoring and evaluation systems will be implemented and follow up
actions defined.
The main tasks for the implementation of the MoU in Phase 2 can be summarized as follows:
· Develop joint work program for MOU implementation (followed up from Phase 1)
· Define and agree on status indicators to monitor nutrient transport from the Danube and the change
of ecosystems in the Black Sea (followed up from Phase 1)
· Define and establish reporting procedures (followed up from Phase 1)
· Re-establish and organize regular meetings of the Joint Danube-Black Sea WG to evaluate progress
of nutrient reduction and recovery of the Black Sea ecosystems(followed up from Phase 1).
· Facilitate coordination of the Danube Regional Project with the Black Sea Regional Project and the
World Bank Investment Fund.
2.6 Training and consultation workshops for resource management and pollution control with
particular attention to nutrient reduction and transboundary issues
In order to assure sustainability of appropriate resource management and pollution control and to assure
the same level of understanding throughout the Danube River Basin, it is necessary to provide training.
Training is needed both to increase technical skills for pollution reduction and in particular for the
implementation of the EU Water Framework Directive as well as to further develop the effectiveness of
key institutions (ICPDR etc.) This could include the fields of environmental analysis and planning,
management and impact assessment for nutrient reduction and control of toxic substances through
workshops, consultation meetings and study tours for participants from government, local administration,
NGOs and other stakeholder from the private sector (professional associations, opinion leaders, etc.).
Besides this, additional materials and equipment should be supplied and technical assistance should be
provided where necessary. During Phase 1 of the Project, a needs assessment is being conducted, the
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
29
various training programs are being prioritized and then worked out and trainers are being trained,
whereas during Phase 2 training programmes will be implemented and evaluated.
Besides the workshops on policy development and legislation to be organized in the frame of each of the
above-described project components, training courses may be provided in the following areas:
· Improving the Effectiveness and Efficiency of Transboundary Institutions (e.g. ICPDR, DEF etc.)
· Enhancing capacities to carry out appropriate public participation processes, multi-stakeholder
forums, etc.
· Policy development and legal frame for transboundary cooperation in nutrient reduction and
control of toxic substances (follow-up from Phase 1);
· Technical and legal issues of river basin planning and transboundary water resources management
related to the new EU Water Framework Directive with a view to ensuring effective nutrient
reduction (follow-up from Phase 1);
· Technical and legal issues (land reclamation) of wetland restoration and management to assure
nutrient removal (follow-up from Phase 1);
· Innovative technologies for municipal and industrial waste water treatment; using best available
technology (follow-up from Phase 1);
· Technical and legal issues of management and control of use of fertilizers and manure (follow-up
from Phase 1);
· Preparation of documents for nutrient reduction projects with international co-funding and
application of GEF criteria concerning incremental cost calculation, considering the experiences
from the World Bank IF supported projects (follow-up from Phase 1);
· Monitoring and evaluation of results of training, capacity building and replicability (follow-up
from Phase 1).
The last training course should also focus on methodology and standards for economic and financial
analysis of bankable projects with international co-funding; and in particular on identification and
documentation of nutrient reduction projects according to GEF requirements and guidelines regarding
baseline / incremental cost, transboundary effects, etc.
The proposed training courses should be organized with the assistance of experienced international
consultants in a series of three-to-five-days workshops and where appropriate, should also be run in the
national languages at least once in each Project Phase (i.e. twice during the total project period of 5 years).
Regional Workshops designed to reinforce transboundary cooperation should be attended by at least two
or three participants from each DRB country. One essential task will be to prepare, prior to the workshops,
adequate documents and case study materials for dissemination among the participants.


3 Strengthening of public involvement in environmental decision making
and reinforcement of community actions for pollution reduction and
protection of ecosystems
The overall focus of the components under Objective 3 is to increase public participation in environmental
decision-making. Phase 2 of the Danube Regional Project will focus on implementing the awareness
raising, community involvement and NGO institutional development support that has been planned and is
being developed in Phase 1. In addition to those components that were originally planned for, an
additional component is planned in order to improve public participation by better access to information
for addressing priority sources of pollution. This new component (3.4) is based on the results and
methodological approach developed during the UNDP/GEF Medium Sized Project "Building of
Environmental Citizenship to Support Transboundary Pollution Reduction in the Danube."
30
Project Brief / Danube Regional Project ­ Tranche 2
All activities outlined in the previous chapter on institutional strengthening and capacity building
contribute to awareness raising in a broader sense. The publication through the mass media and through
ICPDR publications (Danube Watch etc.) of the results of ICPDR´s and its Expert Groups´ activities, in
particular the results of workshops and consultation meetings, constitute an excellent opportunity to raise
public awareness. These actions of awareness raising should primarily address representatives from
central and local governments and from administration and - to a lesser extent - from the private sector.
The present GEF Danube Regional Project has a wide spectrum and geographical outreach for public
participation activities which is central to the long term sustainability and effectiveness of Danube River
Basin cooperation. The objective of the Danube Regional Project, with its components in support of
Objective 3, is to enhance awareness raising in the civil society and the reinforcement of the participation
of NGOs and other interested parties in water management and pollution reduction (nutrients and toxic
substances) with particular attention to transboundary cooperation and river basin management. This can
best be achieved through practical measures and the support of community-based activities for rational
resources management, transboundary cooperation and pollution control with particular attention to
nutrient reduction. Financial support should be provided to assist the implementation of community-based
demonstration projects in various Danube River Basin countries (Small Grants Program).
Cooperation of the civil society and in particular of local NGOs is essential to achieving the objectives and
goals of the ICPDR and the new Danube Regional Project. Particular attention will therefore be given to
the reinforcement of the Danube Environmental Forum (DEF), which is the umbrella organization of the
NGOs in the Danube River Basin as well as to increase DEF's capacities to take action for pollution
reduction and control. Within the frame of the present project component, the support for awareness
raising and public participation should be extended (i.e. make each project more relevant), and linked with
the reinforcement of NGO activities and should focus on concrete demonstration measures of pollution
control, nutrient reduction and transboundary cooperation.
In this context, the following project components have been identified as particularly important for
achieving the objective:
3.1 Support for institutional development of NGOs and community involvement
This should come in the form of technical/professional assistance and financial support for the Danube
Environmental Forum (DEF) and for national NGOs working on transboundary pollution issues and
nutrient reduction. Phase 1 of the Project is providing the support to make the DEF network (Secretariat,
national focal points, national members etc.) fully operational and to prepare programs for training and
awareness raising (publications), as well as specific activities (public participation) which will be
implemented during Phase 2 of the Project:
· Continuing support and development of the DEF network i.e. the DEF Secretariat for
operation, communication and information management (which should be operating at the end
of the Project period on a self-supported basis);
· Organizing consultation meetings and training workshops on nutrients and toxics issues;
· Publishing special NGO publications in national languages on nutrients and toxic substances;
· Organizing of training courses for the development of NGO activities and cooperation in
national projects (nutrient reduction) and the processes of public participation in the frame of
the WFD.
3.2 Applied awareness raising through community based "Small Grant Programme"
It is important and necessary to provide administrative, professional and financial support for the
implementation of the GEF-Small Grants Programme (SGP).
During Phase 1 of the Project the Small Grants Programme is being prepared and individual project
proposals and applications from NGOs have been received. These projects will be implemented during
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
31
Phase 2 with the financial support from the GEF Small Grants Programme taking into account the
following steps:
· Implementing a region-wide granting program focusing on demonstration activities and
awareness campaigns for sustainable land management and pollution reduction (nutrients and
toxic substances) in the agricultural, industrial and municipal sectors (follow up from Phase 1);
· Implementing a national granting program at the local and national level in terms of small scale
community based investment projects for pollution control, rehabilitation of wetlands, best
agricultural practices, reduction of use of fertilizers, manure management, improvement of
village sewer systems, etc. (follow up from Phase 1)
Based on previous experience, the responsibility for the design of the SGP and good performance, this
project component will be implemented, with technical and policy guidance from the ICPDR, by the
Regional Environmental Center (REC) in Hungary. Through its national offices, the REC will organize
and follow-up the implementation of selected projects for nutrient reduction and awareness raising and
provide at the end of the project an evaluation report concerning performance, replicability and
environmental impact of measures.
3.3 Organization of public awareness-raising campaigns on nutrient reduction and control of
toxic substances
The practical awareness and daily sensitivity of the general public on pollution problems and their
transboundary impacts is still very low in most DRB countries. The many new local NGO small grants
projects organized within this GEF Project frame (component 3.3.(i) )can have a double impact and
become more relevant for the public's opinion-making at national and regional scale if they will be
complemented by public nation-wide campaigns. Therefore, the GEF Project aims at raising awareness on
accidental pollution prevention and nutrient reduction in daily life through media activities and
campaigning. During Phase 1 of the Project public awareness raising activities including campaigns are
being identified and designed (within the DRB Communications Strategy that should provide cohesive
guidance to future DRB public awareness and communication activities including communication
structures and mechanisms ) and periodicals and other information materials will be published. In Phase 2
these activities will be reinforced, public awareness campaigns will be organized, capacities for
communication will be enhanced (including training of trainers) and periodicals (e.g. Danube Watch) and
information materials will be published.
The Project will therefore focus on:
· Conceptualization and implementation of communication activities including public awareness
raising campaigns on nutrient issues (as identified in the DRB Communications Strategy);
· Development and production of materials for public press and mass media on nutrients and
toxics;
· Capacity building to support the communication structures and mechanisms within the ICPDR,
national governments, NGOs and other key stakeholders;
· Support to the publication of scientific documents and regular papers or special issues on water
management and pollution reduction with particular attention to nutrient issues and Black Sea
recovery.
3.4 Enhancing Support of Public Participation in Addressing Priority Sources of Pollution ("hot
spots") through Improved Access to Information in the Frame of the EU Water Framework
Directive
An additional component in the frame of the Danube Regional Project will strengthen and enhance the
GEF priority of community involvement and reinforce the capacities of the ICPDR to implement the
elements on public participation in the EU WFD. The component, to be implemented in 2003-2006,
would build national capacity in interested CEE Danube countries on implementation of public access to
information on Danube pollution and thereby support public participation in decision making on hot spot
32
Project Brief / Danube Regional Project ­ Tranche 2
cleanup and prevention. It would focus on government officials and also include citizens, communities
and NGOs, specifically including capacity building to enable changed attitudes and behavior as well
concrete efforts to implement and facilitate access to information. Given their involvement in the pilot
project that is the basis for this new component, Resources for the Future (RFF), New York University
(NYU) and the Regional Environmental Center for Central and Eastern Europe (REC) are foreseen as
cooperating partners.
The project component would develop specific solutions at the national and local levels and promote
mutual learning at the river basin level and provide exposure to relevant experience in other countries in
the region and elsewhere through targeted training and technical assistance. Specific activities and outputs
consistent with effective implementation of the Aarhus Convention, the EU Water Framework Directive,
other relevant EU legislation and national legislation will be developed in partnership with participating
countries in the early months of the project, following a careful diagnostic process.
Joint activities will include:
· In-region plenary meetings including participants from all countries to set a harmonized approach,
plan joint activities, and share experience;
· Joint capacity building workshops on issues of public access to information concerning water
management and pollution control;
· Development of best practices methods and supporting written materials of potentially region-
wide application;
· Examination, through research, written analyses and joint study tours, of options and models from
EU, CEE countries and the United States, including both mature and developing systems for
effective public involvement in water pollution reduction, hot spots control and identification of
specific approaches for public access to information on pressure and impact analysis that can be
adapted to the particular circumstances of participating countries.
Country-specific capacity building activities tailored to the needs of individual participating countries will
include some or all of the following:
· Capacity building workshops for government officials and NGOs at national, regional and local
levels, conducted in national languages;
· Development of specific legal, regulatory, policy, institutional and/or practical measures to
increase public access to information and related public participation in hot spot control ;
development of guidance manuals for public officials; citizen manuals; drafting or commenting on
new legislation, regulations, institutional arrangements and/or policies;
· Technical assistance in response to country requests to help develop options for or to assist in
crafting these measures;
· Field testing of proposed measures and approaches at specific hot spots through small pilot
projects combined with local capacity building/training sessions and workshops.
Major outputs that will support increased public participation for hot spots control will include:
· Strengthened capacity of governmental officials to implement public involvement and of national
NGOs to become more effectively involved in implementation of the EU WFD;
· Strengthened cooperation between government officials, NGOs and other stakeholders;
· Country-specific measures and practical arrangements supporting NGOs ,citizens and
communities involvement in water resources management and pollution control, including the
development of:
o Regulatory and/or policy proposals other relevant instruments such as guidance documents,
user manuals, and other aids that assure that government officials understand and can carry
out their obligations under public access to information requirements;
o Citizen guides on public access to information;
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
33
o Improved mechanisms for passive and/or active dissemination of government-held informa-
tion to members of the public, such as websites, information offices, and public docket
rooms;
· Country-specific strategies for effectively implementing and sustaining public involvement over
the long-term;
· Increased sustainability of the pollution reduction initiatives and results of the DRP generally.


4. Reinforcement of monitoring, evaluation and information systems to
control transboundary pollution, and to reduce nutrients and harmful
substances
The development and the upgrading the monitoring and information systems is of significant importance
for transboundary cooperation in water quality and water management, and of common interest for the
Danube and the Black Sea countries. Particular attention will be given to the development of indicators
(process, stress reduction and environmental status indicators) to monitor progress of project
implementation. For this purpose, special methodologies will be developed to assess sediments (heavy
metals, toxic substances) and nutrient removal capacities of wetlands. Also economic mechanisms will be
analyzed to encourage investments in nutrient reduction measures.
Within the frame of Phase 2 of the Project, the following activities will be carried out responding to
specific issues regarding monitoring and evaluation and providing special knowledge on pollution in
sediments, wetlands nutrient removal capacities and economic instruments for nutrient reduction:
4.1 Development of indicators for project monitoring and impact evaluation
To assure efficient monitoring and evaluation of project implementation, and to document project and
program achievements, it is necessary - in line with EU and the existing international requirements - to
establish an operational system of indicators (process, stress reduction and environmental status) under the
ICPDR. The new EU Water Framework Directive criteria for the assessment of the ecological status of the
rivers and for monitoring the achievement of good ecological status will have to be incorporated. Within
Phase 1 of the Project, a Monitoring and Evaluation system is being designed and relevant process and
impact indicators are being developed; theses mechanisms for control and evaluation will be established
and made operational during Phase 2 of the Project.
The following tasks should therefore be carried out in Phase 2 under this component:
· Establishing a system for M&E in using specific indicators for process (legal and institutional
frame), stress reduction (emissions, water abstractions and hydromorpological changes) and
environmental status (water quality, ecological status and recovery of ecosystems) to
demonstrate results of program (JAP) and project implementation and to evaluate environmental
effects of implementation of policies and regulations (nutrient reduction) (follow-up from
Phase 1);
· Development of indicators for project evaluation with particular attention to process indicators
(DRPC+WFD) and GEF project evaluation (follow-up from Phase 1);
· Assessing and reviewing the monitoring networks for surface waters and developing an
approach to adapt the monitoring programmes to requirements of the WFD (follow-up from
Phase 1);
· Implementing ecological status assessment in line with requirements of EU WFD using specific
bio-indicators to demonstrate effects of pollution /nutrient reduction in water-bodies and
ecosystems (follow-up from Phase 1);
· Preparing a manual on the use and application of monitoring and impact indicators.
34
Project Brief / Danube Regional Project ­ Tranche 2
4.2 Analysis of sediments in the Iron Gate reservoir and impact assessment of heavy metals and
other dangerous substances on the Danube and the Black Sea ecosystems
In the frame of the UNEP-Habitat-Balkan Task Force/ICPDR Expert Mission to Yugoslavia in August
1999, a first sampling of sediments in the Iron Gate was carried out to analyze heavy metals and other
toxic substances as a consequence of NATO air strikes on industrial and other targets in the Danube River
Basin. The present project component should extend the first analysis and provide a complete coverage of
the quality analysis of the sediments of the Iron Gate including toxic substances (heavy metals) and
phosphorus. Based on the results of the analysis, adequate measures should be developed to undertake
precautionary measures to prevent future deterioration of water quality in the Danube and negatives
effects on the Black Sea ecosystems. This component is limited to the GEF Phase 2 Project.
This study should be carried out as a special activity of the MLIM/EG and should cover the following
tasks:
· Collecting and reviewing the existing data and information on present situation (especially
heavy metals, nutrients, silicates and other dangerous substances);
· Assessing the main types and quantities of dangerous substances;
· Assessing the potential environmental impacts on the Danube and the Black Sea;
· Forecasting development for a period of 20 years;
· Discussing possible precautionary and rehabilitation measures for the Danube and the Black
Sea;
· Preparing recommendations for dealing with this problem in the forthcoming decade (measures
to be included in the Joint Action Program of the ICPDR);
· Proposing further monitoring programs.
4.3 Monitoring and assessment of nutrient removal capacities of riverine wetlands
In the frame of the Pollution Reduction Program, the rehabilitation and management of about 600.000
hectares of wetlands and floodplains in the DRB have been proposed. In the World Bank-GEF Strategic
Partnership, the restoration or creation of wetlands is one of the types of projects eligible for funding. It is
generally recognized that the removal capacity varies considerably according to water flow, concentration,
loads and natural conditions of the wetlands.
In the frame of the GEF Phase 1 and 2 of the Project, a quantified approach could be made for the DRB
wetlands to better assess their removal capacities and the possibilities in wetland management to optimize
such processes, while still giving priority to the ecological needs of these ecosystems. These results will
considerably improve and disseminate world-wide the knowledge about nutrient removal through
wetlands rehabilitation and would define the technical and economic parameters for efficient wetlands
management while still considering other benefits (biodiversity, water purification etc.) and giving priority
to the ecological needs of these ecosystems.
This proposed project component, which would support a larger GEF need in the frame of Targeted
Research is being covered in Phase 1 preparatory tasks and will now in Phase 2 provide the actual removal
observation programme and management guidance:
· Implementing the observation program to assess the annual removal capacity (tons of N and P
and of other harmful substances per ha) for each category of wetland for a period of 20 years (3
years covered by the present project);
· Assessing the possibilities for a follow-up financing of the observation programme after 2006;
· Evaluating the aggregated removal capacities/potentials of nutrient & other harmful substances
for the wetlands proposed for restoration (DPRP), taking into account the results of other
investment and observation programs (including Danube Partnership, "Lower Danube Green
Corridor");
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
35
· Developing optimized wetland management programs to assure ecologically acceptable nutrient
removal in the Danube River Basin;
· Preparing the Danube Wetlands Restoration and Management Agreement with action plan for
endorsement by DRB governments

4.4 Danube Basin study on pollution trading and corresponding economic instruments for
nutrient reduction

This project component is being completed in the Phase 1


36
Project Brief / Danube Regional Project ­ Tranche 2
IV
Sustainability and Participation
The Danube Regional Project (Phases 1 and 2) has to be seen as a logical continuation of the GEF
assistance to the Danube Environmental Program. The Danube Pollution Reduction Program has
established the necessary conditions for the ICPDR and for the DRB countries to assure efficient
implementation of policies and measures for pollution reduction and resource management. The proposed
Phase 2 of the Danube Regional Project can build on a very favorable framework for sustainability and
participation already reinforced in Phase 1, and on the findings and recommendations of:
· the SAP 1994 as the agreed-upon policy document of the EPDRB focusing on policies and
strategies for pollution control and resource management,
· the Common Platform for the Development of National Policies and Actions for Pollution
Reduction under the DRPC, representing a summary of policies and actions developed in the
frame of the Pollution Reduction Program,
· the Danube Pollution Reduction Program (DPRP) and the Inventory of Investment Projects
(Database) providing the operational basis for promoting investments for pollution reduction
measures
· results of the Danube-Black Sea Task Force (DABLAS) Working Group on Project
Prioritization "Prioritisation of Municipal Investment Projects in the Danube River Basin",
revising the lists of national projects of the ICPDR Joint Action Programme and selection of
municipal priority projects.
Institutional capacities and arrangements: With its entry into force on 22 October 1998, the Danube
River Protection Convention (DRPC), to which the ECE-Convention for the Protection and Use of
Transboundary Waters (Helsinki Convention 1992) is the framework, became the overall legal instrument
for cooperation and transboundary water management in the Danube River Basin. Since mid-1999 all
bodies of the ICPDR, the Expert Groups and the ICPDR Permanent Secretariat have been fully
operational. The primary objective of the Danube Regional Project is to support the ICPDR in order to
achieve a well-balanced integrated implementation of the Common Platform, the PRP and the JAP. It is
assured that there is a full developed and functioning institutional framework for project performance.
Within the Phase 1 of the DRP the institutional framework of the ICPDR and all participating Danube
countries have been further reinforced and appropriate arrangements in particular with ICPDR Expert
Groups were developed. As the ICPDR is permanently sustained via financial contributions of the member
states, the GEF intervention would further support and strengthen the ICPDR and its Expert Groups to
improve technical and management capacities for the implementation of nutrient reduction measures
identified in the Pollution Reduction Program.
The participation of the contracting parties including the European Community, and the cooperating
country Bosnia-Herzegovina is assured in the DRB through the work of ICPDR-Standing Working Group
and the through the Conference of Parties, which is the highest body for the implementation of the Danube
River Protection Convention.
Government commitment: All countries in the DRB have actively participated in the frame of the
elaboration of the Pollution Reduction Program and have provided all necessary information for the
preparation of the present Project Brief (PDF-Block B activities) and thus demonstrated their interest in
and commitment to pollution control, nutrient reduction and sustainable water management. Further, it
should be noticed that central and downstream Danube countries are actually preparing for accession to
the European Union and are therefore committed to applying the European water directives and guidelines
for pollution reduction with particular attention to the EU Nitrate Directive, the Urban Waste Water
Directive and the implementation of the new EU Water Framework Directive. Especially the EU WFD in
the Phase1 of the DRP has already provided very good platform for mobilizing all national governments
towards participation and coordination of their efforts within ICPDR.
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
37
Legal Frame: The Danube River Protection Convention is a legally binding instrument, which provides a
solid framework and a legal basis for cooperation, including enforcement. The International Commission
for the Protection of the Danube River (ICPDR) has been established according to the Danube River
Protection Convention provision (Art.18) and has its seat in Vienna, Austria. The ICPDR and its bodies
are responsible for the implementation of the Danube River Protection Convention.
Stakeholder participation: The development of NGOs and the re-establishment of the Danube
Environmental Forum as an umbrella organization for all Danube NGOs was an essential contribution of
the previous GEF assistance to assure public participation in the planning and plan implementation
processes. Further, the previous GEF Small Grants Program has facilitated the implementation of
community-based projects in the middle and lower Danube countries. Since the Danube Regional Project
is in the 1st phase providing support for strengthening and reinforcement of the DEF capacities, it is
assured that the existing structures of local NGOs and the DEF will play an important role in the
implementation of the GEF Danube Regional Project and in the development and application of new
policies and regulation to improve water quality and to assure rational use of resources.
38
Project Brief / Danube Regional Project ­ Tranche 2
V
Lessons Learned
V - 1 Lessons Learned in Preparing the DRP
Key lessons learned in previous DRB project activities were determined in the process of preparing the
overall Danube Regional Project in 2000-2001 and are included in this section.
Some important lessons have been learned from a range of GEF and other environmental planning
projects in the Danube region, and especially from the GEF-supported Danube Pollution Reduction
Program (DPRP), which was completed in June 1999. In the frame of this project, the Danube countries
cooperating under the DRPC have achieved important results in terms of capacity building and
institutional strengthening. The planning process in elaborating the Transboundary Analysis and in
revising the SAP, which involved stakeholders from the local governments, scientific institutions and
NGOs had created a high momentum in adopting GEF operational principles for the protection of
international waters and ecosystems. Further, the interaction with other organization, in particular the EU
Phare and Tacis, the World Bank, the EBRD, etc., and joint actions with the Black Sea Programme have
set new standards for regional cooperation. These positive achievements will be consolidated in
implementing the Danube / Black Sea Basin Strategic Partnership.
The first phase of the DPRP indicated how time consuming and difficult it is to set up institutional
structures, information networks and to introduce new approaches of planning in countries that are in a
continuous process of political and economic transition. Based on this experience, it is recommended that
­ wherever possible - the newly created institutional settings, networks and methodological tools should
be reinforced through the Danube Regional Project. Special emphasis should be put on the maximum
utilization of the participatory approach that is now fully understood and accepted by the participating
countries.
In many transition countries, the policy and legal frame is presently being reviewed and adjusted, focusing
in particular on unclear land ownership and uncontrolled resource management (forestry, mining, etc.),
which lead to environmental degradation and damage. In many countries, compliance with environmental
laws and regulations is not controlled and is consequently very low. This is partially due to structural and
organizational weaknesses and more to budgetary limitations.
Inter-ministerial coordination is another common and serious problem for project implementation when
coordinating structures are missing at national levels. The involvement and cooperation of all relevant
governmental bodies, in particular the Ministry of Finance, Ministry of Agriculture, of Land Reform, of
Foreign Affairs, etc. is essential in the early project preparation phase.
Another lesson learned is that project activities conducted by international expert teams without close
integration and cooperation with experts from the relevant Danube countries are often not recognized. In
the frame of the Environmental Program for the Danube River Basin (EU Phare) many project
components have failed to be sufficiently coordinated with the ICPDR and its Expert Groups and thus did
not respond to the expressed needs of the beneficiaries. It is therefore recommended that all project
components should be carried out under the guidance of the ICPDR and in close cooperation with its
expert bodies and that highly qualified national experts/consultants ­ available in all DRB countries ­
should be contracted.
A particular feature impacting basin-wide project activities is that of the disparities between the DRB
countries, which have clearly different institutional, administrative and economic capabilities and are
confronted with qualitatively different requirements. Particular attention should be paid on the one hand to
the EU accession countries that have reached a high level of competence and organization and, on the
other hand, to the central Danube Basin countries as Bosnia-Herzegovina and Serbia & Montenegro,
which have been affected by the war and political instability.
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
39
In this context, IW: Learn, a distance education programme whose purpose is to improve the global
management of transboundary water systems, will contribute to improve regional cooperation and
capacity building. Following the experience gained in the DPRP, IW: LEARN should be connected to the
Danube Information System (DANUBIS) and used as an interactive conference capacity across and within
GEF international waters projects for sharing information and learning related to nutrient reduction and
river basin and coastal zones management. Training courses started during the DPRP will be revitalized
and continued to enhance technical knowledge for water managers in nutrient reduction and sustainable
management of water resources and ecosystems in the Danube River Basin.

V - 2 Lessons Learned During Implementation of Phase 1 of the DRP
Some further lessons have been learned based on experience gained in the implementation of Phase 1 of
the DRP to date (also contained within the APR/PIR in Annex 14.)
The establishment of intensive cooperation with the ICPDR and its structures (co-executing agency and
primary beneficiary) and improving administrative and technical capacities to cooperate enhances the
effectiveness of project implementation. The ICPDR was formed to implement the Danube River
Protection Convention (DRPC) and is, since 2000, the platform for coordinating the implementation of the
EU WFD in the DRB.
By proactively working together with the ICPDR at various levels, i.e. the Secretariat, the respective
ICPDR Expert Groups and respective National Governments, the GEF project has established excellent
cooperation. The project participates, together with relevant contractors where appropriate, in all Expert
Groups Meetings organized by the ICPDR (currently 5 Expert Groups and 2 Expert Sub-groups meeting 2
to 3 times per year.) In this way the DRP has a full overview and understanding and can thereby provide
the best assistance and input into the further development of the work. Further, these commonly
implemented activities serve to improve administrative and technical capacities at the National level based
on guidelines and requirements set by the ICPDR and the DRP. In this way, the GEF project plays a
catalytic role in stimulating DRB countries to meet their commitments to the DRPC and increasingly the
WFD. This encourages national governments to develop appropriate structures for regional cooperation
that is thereby facilitating the strengthening of good governance in the Danube River Basin.
A key lesson learned is the benefit of a close link between global environmental objectives and an
appropriate legislative framework, in this case the EU Water Framework Directive (WFD.) The EU WFD
represents, perhaps, the most comprehensive water legislation in the world. It provides an excellent basis
for the implementation of the DRP given commonly shared principles such as a basin-wide holistic
approach, ecosystem management etc. By linking project activities closely with the WFD
implementation, the DRP is both increasing the ability to meet global environmental objectives in the
frame of the project, but is also establishing the basis for the sustainability of project results as well as the
mechanisms for ongoing improvements after the life of the project.
The DRP has put a large emphasis on supporting increased public participation in DRB cooperation. An
important lesson learned is that it is critical to focus on developing appropriate public participation
mechanisms and strategies given specific level of activity (regional, national, sub-basin, local.) The DRP
is developing grassroots level (bottoms-up) activities via the Small Grants Programme, as well as is
supporting the development of the Danube Environmental Forum (DEF) which, as a regional network is
capable of working at all levels, sub-basin, national or local levels through its constituent members. The
provisions of the WFD provide an opportunity, based on legislative requirements, to enhance public
participation within the frame of the ICPDR and its parties for the first time. This will occur concretely by
incorporating adequate public participation activities and mechanisms into the process for developing the
Danube River Basin Management Plan. Emphasis here will be first at the regional (ICPDR or top) level.
However, guidance will also be developed, to assist national governments to incorporate public
participation in river basin management at the sub-basin, national and local levels. In addition to the
40
Project Brief / Danube Regional Project ­ Tranche 2
above-mentioned activities, there are considerations to develop a specific project component to improve
access to information for key stakeholders and to enhance their abilities to address priority sources of
pollution (hot spots) in the DRB.
By first undertaking a training needs assessment, the DRP learned that training activities should build
both institutional capacities (ICPDR, DEF etc.) as well as strengthen technical capacities (nutrient
reduction, wetland rehabilitation, reduction of toxic substances etc.) to assure increase of knowledge and
capacity to act for water management and pollution control. The training needs assessment also serves as
the basis to prioritize training needs given limited resources (human and financial.)
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
41
VI
Project Budget and Financing
VI - 1 GEF Budget Contribution
The total financial requirements for the performance of the proposed Phase 2 of the Danube Regional
Project are USD 12.0 million. According to the provisional estimates the allocation of the budget by cost
categories is anticipated as follows:
BUDGET OF THE DRP BY COST CATEGORIES
USD
Percentage
Permanent professional project staff
930,000
7.75
Project Support Staff
506,250
4.22
Subcontractors / International consultants
1,746,000
14.55
National consultants from the DRB countries
1,480,000
12.33
Workshops, training courses, meetings
2,414,660
20.12
"GEF- Small Grants Program"
1,800,000
15.00
Awareness raising and public information material
555,000
4.63
Investment for nutrient monitoring/information
880,010
7.33
Organizational support for DEF and NGOs
300,000
2.50
Project operational costs
499,192
4.16
UNOPS/ICPDR Support cost
888,888
7.41
Total
12,000,000
100 %

The allocation of the budget by the main project components according to the budget proposal (Annex 4)
is as follows:

BUDGET BY MAIN PROJECT COMPONENTS
USD
Percentage
(1) Creation of sustainable ecological conditions
3,184,750
26.54
(2) Capacity building and reinforcement of transboundary cooperation
1,814,130
15.12
(3) Strengthening of public involvement and community actions
5,390,832
44.92
(4) Reinforcement of monitoring, evaluation and info systems
721,400
6.01

UNOPS/ICPDR Support cost
888,888
7.41

Total
12,000,000
100%

From the GEF budget contributions 26.54 % is earmarked for the development of policies and legal
instruments for nutrient reduction and will be invested directly in supporting the work at the national level.
15.12 % of the budget is aimed at strengthening regional cooperation for implementing the ICPDR
policies and related investment programs (JAP) and at reinforcing monitoring and information capacities.
In both first project components a total of 11.78 % is allocated for training courses and preparation of
workshops.
The budgetary allotment for awareness raising and NGO activities is 44.92 % out of which one third is
earmarked the Small Grants Program, and one third for public participation and activities to support
access to information. 6.01 % of the GEF budget is earmarked for strengthening monitoring, evaluation
and information systems and 7.41 % are support cost for the implementing agency (UNOPS).
42
Project Brief / Danube Regional Project ­ Tranche 2


Project Budget
Detailed Budget by Project Components
Baseline

GEF
Partic. Dan.
Costs
and Assigned Baseline Costs (USD)
Countries
1
Creation of sustainable ecological conditions for land use and water management

General project costs
965,580

600,000
1.1 Development
and
implementation of policy guidelines for river basin management 461,000
1,802,920
33,630,000
1.2 Reduction of nutrients and harmful substances from agricultural point and non-
297,250

25,110,000
point sources through agricultural policy changes
1.3 Development of pilot projects on reduction of nutrients and other harmful
756,000

25,180,000
substances from agricultural point and non-point sources
1.4 Policy development for wetland rehabilit. under the aspect of appropriate land use
190,800

14,150,000
1.5 Industrial reform and development of policies and legislation for applicat. of BAT
329,700

24,190,000
1.6 Policy reform and legislation measures for the development of cost-covering
171,700

11,570,000
concepts for water and waste water tariffs
1.7 Implementation of effective systems of water pollution charges, fines and
204,700

7,025,000
incentives, focusing on nutrients and dangerous substances
1.8 Recommendations for the reduction of phosphorus in detergents
73,600

5,640,000
Subtotal
3,450,330 1,802,920
147,095,000
2
Capacity building and reinforcement of transboundary cooperation

General project costs
481,784

3,600,000
2.1 Development of operat. tools for monitoring, laboratory and information manage-
318,230 1,622,628
33,480,000
ment and for emission analysis from point and non-point sources of pollution
2.2 Improvement of procedures and tools for accidental emergency response with
257,680 1,135,840
23,436,000
particular attention to transboundary emergency situations
2.3 Support for reinforcement of ICPDR Information System (DANUBIS) 377,900
1,784,891
36,828,000
2.4 Implementation of the "Memorandum of Understanding" btw. the ICPDR and the
28,800 324,526
6,696,000
ICPBS relating to discharges of nutrients and hazard. Substances to the Black Sea
2.5 Training and consultation workshops for resource management and pollution
382,200 540,876
217,860,000
control with particular attention to nutrient reduction and transboundary issues
Subtotal
1,846,594 5,408,761
321,900,000
3
Strengthening of public involvement in env. decision making and reinforcement of community actions
General
project
costs
690,164

15,150,000
3.1 Support for institutional development of NGOs and community involvement 384,000
216,350
3,820,000
3.2 Applied awareness raising through community based "Small Grant Program"
2,133,000
86,962
13,530,000
3.3 Awareness raising campaigns on nutrient reduction & control of toxic substances
949,800
324,526
116,200
3.4 Public Participation / Access to Information
1,767,000
2,978,000
0
Subtotal
5,923,964 3,605,838
32,616,200
4
Reinforcement of monitoring, evaluation and information systems to control transboundary pollution, and to reduce
nutrients and harmful substances
General
project
costs
299,962


4.1 Development of indicators for project monitoring and impact evaluation
108,150
206,048
2,790,000
4.2 Analysis of sediments in the Iron Gate reservoir and impact assessment of heavy
158,000 556,330
7,533,000
metals and other substances on the Danube and the Black Sea ecosystems
4.3 Monitoring and assessment of nutrient removal capacities of riverine wetlands 213,000
741,773
10,164,000
4.4 Danube Basin study on pollution trading and corresponding economic instruments
0 556,330
7,533,000
for nutrient reduction
Subtotal
779,112 2,060,481
28,020,000
PROJECT
TOTAL
12,000,000
12,878,000
529,631,200

Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
43
VI - 2 Contributions from the ICPDR, participating countries and others:
Total ICPDR and Danube country contributions :
12,878,000 USD
o The ICPDR, Permanent Secretariat will facilitate overall project
implementation with an annual operational budget of 800,000 USD for a
period of 3 years :
2,400,000 USD
o The ICPDR Expert Groups will assure the implementation of project
components. The cost for experts, operation, participation and communication
can be estimated at 1,200,000 USD per year, for a period of 3 years :
3,600,000 USD
o The participating countries will contribute in the frame of joint activities
under the DRPC to project implementation through financial and in kind
contributions (experts, equipment, operational cost), estimated at 130,000 USD
per country and year, for 13 countries and 3 years :
5,070,000 USD
o Others (national and international institutions, NGO, bilateral donors) :
1,808,000 USD

VI - 3 National Capital Investments and Development Costs (2001 ­ 2006)
The Joint Action Program (JAP) has been developed under the ICPDR, and is in most cases coherent with
the Five-Year Nutrient Reduction Action Plan prepared in the frame of the PDF-Block B activities (see
Annex 8-3). The following costs for policy and legislation development and for capital investments for
municipal and industrial waste water treatment and wetland restoration have been identified :
Total capital investments2)

4.40 billion
o Assured national funding
1.72 billion
o Assured international loans

1.16 billion
o Expected grants (national and EU)
0.66 billion
o Additional funding to be raised
0.86 billion
Total cost for non-structural measures
0.51 billion
It should be noted that from the planned investments of 4.40 billion , about 3.54 billion have been
made available from national funding sources, whereas 0.86 billion remain to be raised. 510,989,000
are estimated for developing adequate monitoring and enforcement systems in the frame of the EU
accession process3) and are considered as non-structural investments to be mobilized by all Danube
countries.
VI - 4 World Bank Partnership and UNDP (estimated 5 years period)
W.B. Nutrient reduction projects

o Loans
210,000,000 USD
280,000,000 USD
o GEF Grants
70,000,000 USD
UNDP country programs (2 to 4 years)
1,069,000 USD


2 ) 4.0 billion USD, respectively 3.22 billion USD available and 0.78 billion USD to be raised
3 ) Sector Case Study, WRc, Report CO 3291/2, 1993
44
Project Brief / Danube Regional Project ­ Tranche 2
VI - 5 Investments from EU for environmental measures (accession countries)
The following investment from the EU is for a period of seven years to assist accession countries to im-
prove environmental management and to build or modernize waste water treatment plants and other tech-
nical structures; it can be assumed that about half of the Phare money is earmarked for non-structural
measures:
Total investment for a period of 7 years 4)
13.5 billion
o EU Stability Pact for South-eastern Europe (Danube countries)
3.0 billion
o Phare for environmental protection (Danube countries)
5.3 billion
o ISPA funds for environment and infrastructure (Danube countries)
3.5 billion
o SAPARD funds for agricultural sector (Danube countries)
1.7 billion

VI - 6 Assistance from bilateral sources (estimated 2 to 4 years)
o USAID (amount allocated for environmental/sustainable development
projects in 2000 out of which 120.000.000 for structural projects)
162,000,000 USD
o Danish Environmental Protection Agency (DEPA)
not available
o Netherlands (Wetlands Ukraine)

VI - 7 Assistance provided through private sector organizations (inter-
national and Danube NGOs for a 2 to 4 years period)
Total Investments (estimated 2 to 4 years period)
29,437,800 USD
o Regional Environmental Center (REC): support for national NGO activities
(environmental, sustainable development, awareness raising)
22,500,000 USD
o World Wide Fund for Nature (WWF): Implementation of environmental
projects in cooperation with governments and national NGOs
5,800,000 USD
o Danube national NGOs (ECCG-Romania, Distelverein-Austria)
1,137,000 USD

VI - 8 Total contributions for environmental protection and nutrient
reduction in the Danube River Basin
The total allocations earmarked for pollution control and nutrient reduction in the Danube River Basin fall
into two categories:
1. Non-structural projects (estimation for 3 years period): Total expenditures for the reinforcement
of legislation and institutional mechanisms for transboundary cooperation and nutrient reduction are
estimated at 529,631,000 USD for a period of 3 years (2003-2006):
· GEF UNDP: Danube Regional Project Phase 2 (3 years)
12,000,000 USD
· ICPDR and participating countries for Danube Regional Project (3 years)
12,878,000 USD
· National investments for monitoring and enforcement systems (3 years)
279,000,000 USD
· International private organizations and NGOs (2 to 4 years)
17,662,000 USD
· Bilateral Assistance (USAID) and UNDP (3 years)
26,269,000 USD
· EU program for Danube accession countries, 2 years period
206,700,000 USD
(10 % of Phare program is estimated for non structural measures)

4 ) 12.28 billion USD, applied exchange rate : 1 = 0.91 USD

Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
45
The GEF budget and the contributions from the ICPDR and the participating countries are considered
as "incremental" costs for the overall development and implementation of new policies and
legislation in line with GEF operational principles for international waters and with EU environmental
directives. The non-structural "baseline" cost is estimated at 529.631 million USD, out of which the
Danube countries will contribute 52.8 % and the EU in the frame of the Phare program 39.1 %.
NGOs will provide 3.3 % of the total costs. However, it has to be taken into account that the actual
figures are incomplete and that real bilateral and NGO contributions in the coming 2 to 5 years will be
a great deal higher than indicated.
Summary of capital investments by country and expected nutrient reduction (5 years programme)
Country
Funding Scheme ()
Expected Reduction
(t/y)
Assured Funding Funds to be raised
Total Investments
N
P
Germany 231,000,000
231,000,000
4,091
74
Austria 264,000,000

264,000,000
3,950
404
Czech Republic
104,000,000
43,000,000
147,000,000
1,091
62
Slovakia 54,000,000
65,000,000 118,000,000
2,574
147
Hungary 682,000,000
5,000,000 687,000,000
6,708
1,522
Croatia 12,000,000
421,000,000 433,000,000
5,233
814
Slovenia 382,000,000
2,000,000 384,000,000
1,509
239
Bosnia & Herzegovina
176,000,000
176,000,000
4,700
853
Serbia & Montenegro
785,000,000
785,000,000
6,793
4,850
Bulgaria 37,000,000
88,000,000 125,000,000
2,683
599
Romania 493,000,000
493,000,000
11,860
1,591
Moldova 493,000,000
493,000,000
6,901
905
Ukraine 5,000,000
62,000,000
67,000,000
486
65
TOTAL 3,542,000,000
862,000,000 4,404,000,000
58,579
12,138

2. Structural projects (estimation for 3 years period ­ 2003 to 2006) : Investment figures as
presented in the previous chapters VI-3, VI-4 and VI-5 have been theoretically adjusted to a 3 years
period to demonstrate the capital investments during the project period (7.62 billion USD). During the
project implementation period, the following investments for waste water treatment facilities, wetland
restoration, the reduction of pollution from agricultural non-point sources, etc. could be expected:
· GEF World Bank Partnership Program (loans and GRF grants)
168,000,000 USD
· Bilateral Assistance (estimation)
120,000,000 USD
· Joint Action Program (assured funds from Danube countries)
1,932,800,000 USD
· EU program for Danube accession countries, 3-year period (ISPA, 5,400,000,000 USD
SAPARD, Stability Pact, 90% Phare for structural measures)
In the frame of the ICPDR Joint Action Program (5-Year Nutrient Reduction Plan), the Danube coun-
tries contribute from own resources and internal loans for an estimated 3 years period 25.3 % to fi-
nance structural projects (municipal and industrial waste water treatment plants, wetlands restoration,
agricultural projects etc.).
The EU provides the biggest share of 70.8 % of investments to support national efforts of EU acces-
sion countries. The contribution of the World Bank Partnership represents 2.2 % of investments for
structural projects and is complementary to the UNDP/GEF Danube Regional Project. Other contri-
butions, e.g. from the EBRD or the EIB, are not taken into account.
46
Project Brief / Danube Regional Project ­ Tranche 2

Summary of investments for reinforcement of legislation and institutional mechanisms (non-structural
projects / programs) by country and expected nutrient reduction (5 years programme)
Country
Funding Scheme (USD)
Expected
Reduction (t/y)
Governments UNDP USAID
EU
NGO
Total
N
P
Germany 51,290,900
51,290,900
6,800
111
Austria 43,400,000
1,583,300
44,983,300 7,700
114
Czech Republic
15,781,800
95,000
2,455,000
14,681,900
2,983,300
35,997,000 1,500
33
Slovakia 29,309,100
125,000
5,454,000
27,266,400
2,983,300
65,137,800 4,500
170
Hungary 57,490,900
5,454,000
53,484,000
2,741,700 119,170,600 4,650
380
Croatia 9,581,800
3,954,000
8,914,000
2,741,700
25,191,500 3,000
130
Slovenia 18,036,400
80,000
2,455,000
16,779,300
2,741,700
40,092,400 3,450
220
Bosnia & Herzegovina
16,345,500
3,954,000
15,206,200
2,500,000
38,005,700 3,600
220
Serbia & Montenegro
50,727,300
2,455,000
47,191,800
2,741,700 103,115,800 7,200
700
Bulgaria 21,981,800
3,954,000
20,449,800
3,466,700
49,852,300 2,300
400
Romania 127,381,800 6,955,000 118,503,800
3,503,700 256,344,300 12,100
1,270
Moldova 6,200,000
2,455,000
5,767,900
483,300
14,906,200 397
70
Ukraine 17,472,700
769,000
2,455,000
16,254,900
966,600
37,918,200 2,800
200
TOTAL 465,000,000
1,069,000
42,000,000
344,500,000 29,437,000 882,006,000 59,997 4,018

Total Expected Nutrient Reduction from Capital Investments and
118,576 tons N/y = 22 %
Investments for Non-structural Projects
16,156 tons P/y = 33 %


Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
47
VII Incremental Costs
The description and calculation of baseline and incremental costs can adequately be done for technical
investment projects designed for the protection and management of international waters, respectively the
conservation of biodiversity. In these cases it is possible to determine for each expected output and for
each activity the respective baseline and incremental costs and analyze the resulting domestic and global
benefits.
In the case of the Danube Regional Project, "incremental" costs are considered to be the GEF project cost
of 12,000,000 USD. The special contributions of the ICPDR, participating countries and institutions for
implementing the DRPC, which amount to 12,878,000USD, are considered as "incremental" co-financing
costs. The Project, with a total financial support of 24,878,000 USD will reinforce - in addition to the
investments described under "baseline" cost - the capacities of the ICPDR and the participating countries
to address adequately the problem of nutrient reduction. "Incremental" costs are specially defined to
strengthen transboundary cooperation under the DRPC for the development of national policies and
legislation and the identification of jointly implemented priority actions for nutrient reduction leading to
the restoration of the Black Sea ecosystems.
For the definition of "baseline" costs directly related to the development of adequate monitoring and
enforcement systems at the national level, the results of the WRc Sector Case Study from 19935) have
been taken into account. According to this report, the present systems of monitoring are budget
inadequate, staff resources are overstretched and laboratory facilities overloaded. The report estimates the
annual cost of compliance for Bulgaria 10 million , Hungary 12 million , Romania 28 million and
Slovakia 6 million based on per capita cost of 1.16 at 1990 prices. Based on this information, the total
cost for compliance, also for those Danube countries, which are not yet in the approximation process but
which are undertaking special efforts to upgrade their legislation and mechanisms for compliance with
international and EU standards has been estimated at 279,000,000 USD for the 3 years period 2003-2006.
Other "baseline" costs, with a total of 250,631 million USD, but only indirectly related with project
activities, can be identified in relation to non-structural projects for the development of policies,
legislation, institutional mechanisms and enforcement systems, which are financed in the frame of
technical assistance projects from bilateral and international sources :
· Bilateral Assistance (USAID) and UNDP and others
26,269,000 USD
· International private organizations and NGOs
17,662,000 USD
· EU program for Danube accession countries, 5 years period
206,700,000 USD
(10 % of the Phare Program is estimated for non structural measures)
Considering that the approximation process of the Danube countries will take between 10 and 20 years,
including the introduction of new environmental standards in line with international and EU directives, the
"incremental" support of the Project will enhance the process with particular attention to nutrient reduc-
tion and will considerably accelerate the development and implementation of policies, regulations and
adequate monitoring and enforcement systems for nutrient emissions and reduction of nutrient loads dis-
charged into the Black Sea.
Structural projects concerning actually planned investments in waste water treatment facilities, wetland
restoration, agricultural pilot projects and other environmental measures, contributing mostly to pollution
reduction from point sources or in-stream pollution reduction, amount to 12.6 billion USD. To
demonstrate the capital investments during the project period, investment figures as presented in chapters
VI-3, VI-4 and VI-5 of the Project Brief have been theoretically adjusted, indicating an amount of 7.6
billion USD for a period of 3 years. These capital investments are not contributing to project
implementation and therefore are not considered as baseline cost.

5 ) Sector Case Study, WRc, Report CO 3291/2, 1993

48
Project Brief / Danube Regional Project ­ Tranche 2
VIII Cost-effectiveness
Taking into account the social and economic development which will take place in the coming 10 to 20
years in the Danube transition countries and considering the EU approximation process and the need to
adapt environmental standards to international and EU directives, it is evident that investments in envi-
ronmental protection and management of resources are necessary to assure a sustainable development in
the countries of the Danube River Basin.
It is to be expected that most Danube countries - mainly those in transition ­ will in the next five to seven
years see their GDP grow at an annual rate of 2 to 4 % ending up in five years from now at 10 to 20 %
above its current level. This economic growth will be the result of economic recovery in transition
countries and new investments in industry, agriculture and services. The development and implementation
of adequate environmental standards and mechanisms for compliance is, therefore, essential to assure
sustainable development in the region.
The implementation of projects for waste water treatment in the urban and industrial sectors (including
agro-industries) is part of national investment programs for pollution reduction from point sources,
summarized in the Five-Year Nutrient Reduction Action Plan and the Joint Action Plan of the ICPDR
respectively. According to these documents, capital investments will be about 4.4 billion (4.0 billion
USD). Considering EU engagements for accession countries and other multilateral and bilateral assistance
in the form of soft loans and grants (World Bank/GEF), the additional financial assistance for
implementation of structural projects will be 9.4 billion USD. These investments will lead to an annual
reduction of 58,600 tons of nitrogen and 12,100 tons of phosphorus representing 10.6 % and 24.8 %
respectively of the total nutrient loads discharged into the Black Sea.
Non-point sources of pollution in relation to land use and agricultural activities represent about half of all
nutrients, in particular nitrogen, discharged into the Black Sea. It is assumed that through the development
and implementation of policies, legislation and mechanism for compliance, nutrient emissions from non-
point sources (land use and agriculture) can be considerably reduced. The actual estimations in the Five-
Year Nutrient Reduction Action Plan show that development and implementation of appropriate policies
and legislation will lead to a reduction of about 60,000 tons of nitrogen and 4,000 tons of phosphorus,
representing 10.9 % and 8.2 % respectively of total nutrient loads discharged into the Black Sea.
The corresponding investments in the period from 2001 to 2006 for the development of new policies, leg-
islation and monitoring and enforcements systems in line with international and EU directives are 913.9
million USD, out of which the major part ­ 465.0 million USD or 50.9 % ­ is considered as national con-
tributions and part of direct baseline costs. 344.5 million USD or 37.7 % is provided from the EU Phare
program to the accession countries and 72.5 million USD or 7.9 % is provided in the frame of interna-
tional, bilateral and non-governmental assistance. These investments for technical assistance are also base-
line cost but only indirectly related to project implementation measures.
Considering the GEF/ICPDR project costs of 11.95 million USD for the 1st period of 2 years (December
2001 ­ November 2003) and taking into account additional investments of 24.878 million USD in the 2nd
Phase of the project (December 2003 to November 2006), in the particular sector of nutrient reduction and
restoration of the Black Sea ecosystems, the benefits for nutrient reduction from non-point sources of
pollution - 10.9 % for nitrogen and 8.2 % for phosphorus - can be calculated as representing 20 % of the
value for capital investments for nutrient reduction in point sources projects of the Five Year Nutrient
Reduction Action Plan, which is equal to 800.0 million USD for the total period of 5 years6).
The cost-effectiveness of this Project lies in the opportunity to improve water quality in general and to
reduce transboundary nutrient loads in particular, thus contributing to the rehabilitation of the Black Sea

6 ) The Pollution Reduction Program Report, GEF/Environmental Program for the DRB, June 1999 indicates in its methodological approach that
20 % of investments in WWTP are specified for nutrient reduction. Considering a total investments in the 5-YNRAP of 4.4 billion = 4.0 billion
USD, 20 % of the investment = 800.0 million USD would be needed for pollution reduction from point sources. This amount is considered as the
comparative benefit for removal of nutrient also from non-point sources of pollution.
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
49
ecosystems. Considering incremental cost of 11.95 million USD for the 1st Phase of the Project, the
benefits of the Project, at a cost-effectiveness ratio of 1:27 for the first two years period and of 1:22 for the
full fives years period, are considerable in terms of its contribution to reducing and mitigating serious
damage to regional and globally important waters and ecosystems.

50
Project Brief / Danube Regional Project ­ Tranche 2
IX
Project Risks
The success of two Regional Projects for the Danube and the Black Sea depends ultimately upon the po-
litical willingness and the financial and technical means of the contracting parties and participating coun-
tries to cooperate. This willingness depends not only on issues related to national or international security
but also on changing political and economic conditions of the countries involved. Risks for the perform-
ance of the Danube Regional Project might be occurring in the following fields:

(i)
Commitment of the UNDP/GEF
Taking into account that the submission of the Strategic Partnership Programme for Nutrient Reduction in
the Black Sea and the Danube Basin to the GEF Council in November 2000 was deferred due to resources
constraints, the first Project Brief was prepared in September 2000 with a total budget of 15 million USD,
which had to be split in two phases. The GEF Council approved Phase 1 of the Project with a budget of
5,350,000 USD in May 2001. The 2nd tranche for DRP should be approved by the GEF Council in May
2003. The present Project Brief with a budget of 12 million USD covers the 2nd Phase of the Project from
December 2003 to November 2006. The approval of these funds is essential to assure the continuation of
the activities initiated in the 1st Phase of the project and to achieve the overall goals of the entire DRP.

(ii)
Commitment of participating countries
At the institutional level the conditions for the implementation of the Danube Regional Project are already
set-up through the structures of the ICPDR, which have already been successfully utilized in the frame of
the Pollution Reduction Program and further reinforced in 1st phase of DRP. Taking into account that
financial inputs from the participating countries are relatively small, there are probably no significant risks
for project performance. All Danube countries are prepared to deliver in-kind contributions in the frame of
the ICPDR Expert Groups and experience has shown that special in-kind contributions to the project
implementation are also voluntarily made available.
Considering political and administrative constraints and slow decision-making process, a certain risk can
be expected for the actual implementation of the findings and recommendations of the project, especially
regarding the issues of policy reforms and changes of legislation. Also administrative obstacles might
hamper the implementation of measures for exacting compliance.

(iii)
Methodological approach
The methodological approach as applied for the implementation of the proposed project components is in
line with the work program of the ICPDR and corresponds to national standards. It is therefore unlikely to
expect major problems. However, as mentioned in point (i), the overall goals of the project will only be
achieved if the funding for the 2nd Phase of the GEF assistance will be made available in time.
For project implementation the choice of qualified experts is an essential prerequisite. Experts and
consultants should be familiar with the social and economic conditions in the Danube River Basin and in
the participating countries, knowledgeable about modern planning methodology and the efficient
organization of consultation meetings and workshops.
The scope for the organization of workshops and awareness building activities should be clearly defined
from the beginning and accepted by the participating countries; this should include the precise definition
and agreement for the selection of participants, which is a joint responsibility of the stakeholders involved.
The same agreements have to be reached for the identification of sub-contractors and national consultants,
which should respond to defined levels of professional standards and be acceptable to the ICPDR and the
Executing Agency.
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
51

(iv)
Delivery of counterpart contribution and availability of information
Considering administrative and financial constraints, participating countries might not be able to provide
in time necessary data for the proposed project components and administrative support for meetings and
workshops.
Hence, requests for counterpart contribution are to be precisely defined and timely delivery has to be
agreed upon. The type of analysis and information needed has to be clearly identified in order to assure the
timely availability of precise and viable information.
52
Project Brief / Danube Regional Project ­ Tranche 2
X
Institutional Frameworks and Implementation
X - 1 Institutional Arrangements
Taking into account that there was a successful GEF project in operation for 6 years, which resulted in a
revised SAP (Common Platform for Development of National Policies and Actions for Pollution
Reduction under the DRPC), and a Pollution Reduction Program for the DRB, it is proposed to make
utmost use of institutional mechanisms and structures which are already operational.
In this context the International Commission for the Protection of the Danube River (ICPDR) has become
the responsible organization for project implementation in cooperation with UNOPS as executing agency.
A Project Manager, using the existing ICPDR structures, shall establish close cooperation with all
participating countries, organize efficiently the planning process and assure timely execution of all project
components.
The ICPDR Steering Group (SG) should guides the implementation of the Danube Regional Project and
assures engagement and cooperation at the national level. For this purpose the ICPDR SG should meet:
· at the beginning of Phase 2 of the Project to review and define scope, planning approach and
work program of the project;
· during project implementation, Steering Group meetings should be held twice a year, to review
and assess the progress, to evaluate completed project components and to make
recommendations for the continuation and/or adjustment of activities;
· at the end of Phase 2 of the Project to assess and approve the final results at a joint review
meeting and to re-examine the planned activities of the 2nd Phase of the Project.
Regarding the elaboration of detailed scope of work and actual performance of the various project
components it is proposed to use further the professional competence and country specific experience of
the existing Expert Groups
established under the ICPDR :
Institutional Arrangements
EMIS, MLIM, AEPC, RBM EG
and the ECO EG.
ICPDR
UNDP / GEF
WB Partnership
EU
At the central level, the Project
Germany
Manager, in cooperation with
Austria
the ICPDR Executive Secretary
ICPDR Steering
Czech Republic
Group
ICPBS
and following the directives of
Slovakia
the ICPDR Steering Group, will
have the mandate to organize
Hungary
ICPDR Permanent
Joint
Black Sea
and coordinate the planning
Slovenia
Secretariat (PS )
D-BS
PIU
process and implementation
TWG
Croatia
activities and to assure, with Serbia & Montenegro
Danube Regional
Black Sea Regional
UNOPS administrative support,
Bulgaria
Project
Project
proper management of the GEF
Romania
project funds.
Moldova
ICPDR - International Commission for the Protection of the Danube River
ICPBS - International Commission for the Protection of the Black Sea
"Inter-Ministerial Co-ordination
Ukraine
Black Sea PIU - Black Sea Programme Implementation Unit
Joint D-BS TWG - Joint Danube - Black Sea Technical Working Group
Mechanisms", which have been European Commission
UNDP/GEF - United Nations Development Programme/Global Environment Facility
put in place at the national level
WB - World Bank
Bosnia i Herzegovina
in Phase 1 of the Project will
assure that all technical, financial and administrative departments are involved to facilitate and coordinate
the implementation of policies, legislation and projects for nutrient reduction and pollution control.
At the regional level, a Joint Danube Basin-Black Sea Technical Working Group (DB-BS/WG) shall
further assure proper coordination of activities between the Danube Project, the Black Sea Project and the
Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation
53
World Bank Partnership Programme. Besides this coordinating role of project activities, the DB-BS/WG
shall also follow-up the implementation of the Memorandum of Understanding for the Protection of the
Black Sea agreed upon by the two Commissions. The Joint DB-BS Technical Working Group shall meet
at least twice a year after the respective Steering Group meetings of the two Commissions.
Coordination with the Black Sea Regional Project and the World Bank Investment Fund will be ensured
through mid-term stocktaking meeting.
According to the broad spectrum of activities it is envisaged that most of the particular project
components should be carried out by consultant services (on the basis of sub-contracts for international
consulting companies and individual consultants from the DRB countries). Objectives, scope and terms of
reference will have to be defined in close co-operation with the respective Expert Groups of the ICPDR
and approved by the Steering Group Meeting.
In this case the project personnel employed on a fixed term basis and located in the offices of the ICPDR
Permanent Secretariat can be restricted to:
· one Project Manager, specialist in environmental policy, with particular experience in
institutional arrangements and water pollution legislation and knowledge of EU environmental
directives and guidelines and nutrient issues;
· one specialist for awareness raising, organization of training courses and follow up of NGO
activities, in particular implementation of the Small Grants Program;
· one project administrator, with particular experience in budgeting, follow-up of expenditures and
establishment of contracts;
· one technical expert for information management
· one administrative project assistant/secretary (support staff).
For specific tasks, conceptualization of activities and evaluation of results, highly specialized international
consultants shall be assigned.

X - 2 Monitoring and Evaluation
Project objectives, activities outputs and emerging issues will be regularly reviewed and evaluated by the
competent bodies of the executing and implementing agencies (UNDP/GEF and UNOPS) and the
ICPDR.
During the 1st Phase of the Project, a Monitoring and Evaluation System is being developed and
indicators for pollution reduction (process and stress indicators) and environmental status indicators are
being defined. Progress indicators for project implementation are defined in the Logical Frame Matrix and
will be revised at the initial stage of Phase 2 of the Project to relate to specific activities and outputs of
project components. In both project phases 200,000.00 USD, representing 1.2 % of the project budget is
earmarked for the development of indicators for project monitoring and impact evaluation.
The annual review will focus on performance (effectiveness, efficiency and timeliness) and evaluate the
results in applying the defined progress indicators. At the ICPDR Steering Group Meeting, the Project will
submit and present an consolidated APR/PIR (Annual Project Report/ Project Implementation Review) in
line with UNDP and GEF requirements and also participate in the Tripartite Reviews (TRPs) each year.
The project will be subject to an external Project Performance Review in the middle and at the at the end
of the three-years project period. On these occasions an independent consultant team shall make an overall
assessment of the project advancement and prepare an independent evaluation. During this mid term
review the team should pay particular attention to formulating recommendations for adjustments of
procedures and activities of the 2nd Project Phase as needed.
The ICPDR Steering Group should meet after the external reviews to evaluate project performance and
endorse or make recommendations for the continuation and/or adjustment of activities after the 1st Project
54
Project Brief / Danube Regional Project ­ Tranche 2
Phase and after the mid-term evaluation of the 2nd Phase and should assess and approve the results of the
joint review meeting.
At the end of the 2nd project period, the project team, in cooperation with the ICPDR Permanent
Secretariat, shall prepare a Project Performance Evaluation Report, which should be endorsed by the
ICPDR Ordinary Meeting.

X - 3 Implementation Schedule
A provisional implementation schedule for the proposed Phase 2 Danube Regional Project is presented in
Annex 5.
The project is supposed to start in December 2003 and will have a total duration of 36 months. This
period includes a project mobilization phase of two months for reviewing the institutional structures and
for the organizational preparation of project activities (writing TOR, hiring of consultants, organizing
workshops, etc).
Each project component has a consolidation phase of two to three months at the end of Phase 1 as well as
at the end of Phase 2 of the Project. This arrangement facilitates the transition of the activities between
Phase 1 and 2 of the Project. For the handing over of project results and operational tools to national teams
and/or to the ICPDR Expert Groups to a period of four months is foreseen to assure sustainability of new
mechanisms for nutrient reduction and sustainable management of water resources.


Project Brief / Danube Regional Project
Annexes

ANNEXES

ANNEX 1
Incremental Cost Analysis and Matrix ­ Project Tranche 2

ANNEX 2
Logical Frame Matrix ­ Tranche 2
(Objectives, Results, Activities)

ANNEX 3
External Reviews and Response

ANNEX 4
Project Budget ­ Project Tranche 2

ANNEX 5
Project Implementation Schedule ­ Project Tranche 2

ANNEX 6
Assessment of Nutrient Emissions and Loads Discharged into
the Black Sea

ANNEX 7
Thematic Maps

ANNEX 8
Summary Reports on National Contributions in Support of
the Project Brief

ANNEX 9
Danube / Black Sea Basin Strategic Partnership

ANNEX 10
Relevance of the GPA for Land-Based Sources of Pollution in
the frame of the DRPC

ANNEX 11
Causes and Effects of Eutrophication in the Black Sea

ANNEX 12
Evaluation of the UNDP/GEF Pollution Reduction
Programme

ANNEX 13
Endorsement Letters

ANNEX 14
Danube Regional Project ­Phase 1: APR 2003

ANNEX 15
Danube Regional Project ­Phase 1: Objectives / Success
Criteria / Progress


Project Brief / Danube Regional Project

Annexes


Document Outline