INTERNATIONAL WATERS
EXPERIENCE NOTES
2
http://www.iwlearn.net/experience








2007-007

The Dnipro Agreement: Negotiations
and Technical Cooperation Surpassing
Expectations


Abstract: The concept for the Dnipro Basin Environment Programme (DBEP) was approved in December
1999. The project was established by the three riparian countries to develop a Transboundary Diagnostic
Analysis (TDA) for the Basin and to achieve agreement on a Strategic Action Programme (SAP) for
protection and recovery of the river and its tributaries. The DBEP project was implemented during a time
of considerable change in the region. In particular, the political and economic relationships between the
three former Soviet republics changed dramatically. A decision was reached prior to project launch that
the effort should proceed despite there being no legal basis in place for joint development and
implementation of a Dnipro Strategic Action Plan. Even without a formal legal basis, the DBEP created
and maintained strong country buy-in and ownership. The DBEP experience provides valuable lessons
for managing transboundary projects in areas facing political upheaval and shifting alliances. The
TDA/SAP development approach taken, including the gradual introduction of a legal framework, can be
replicated in cases where agreements at project commencement are not achievable. The Dnipro project
has demonstrated how GEF projects can proceed to build acceptance for TDA/SAP processes in the
absence of a convention or other legal structures in place, enabling a common understanding to be
forged concerning water quality issues, and paving the way towards negotiations on binding agreements.

Alan Fox
Alan.fox@transboundaryconsulting.com
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The Dnipro Agreement: Negotiations and Technical Cooperation
Surpassing Expectations

Experience of the GEF - sponsored

GEF/UNDP: Preparation of a Strategic Action Programme (SAP) for the
Dnipro River Basin and Development of SAP Implementation Mechanisms
GEFID: 460

PROJECT DESCRIPTION
capacity in the riparian countries to jointly

monitor and control pollution discharges into the
The Dnipro programme addresses significant
river.
transboundary environmental concerns in the

Dnipro Basin, a water-body shared by the
Conceived by the riparian countries in 1995, the
Republic of Belarus, the Russian Federation and
UNDP/GEF support project commenced in early
Ukraine. The UNDP/GEF involvement in the
2000. The period from conception to inception
Dnipro Basin is part of a wider involvement in
was spent in negotiations on project scope,
the region, centred on enhancement of water
activities and coordination between the three
quality in the Black Sea.
riparian governments together with supporting

agencies. The DBEP is notable for the
Progressive degradation of the Dnipro Basin
substantial contribution and coordinated effort of
ecosystem became apparent by the early 1990s,
a wide array of supporting agencies, including
especially in the middle and lower reaches of the
the UNDP, UN Industrial Development
Dnipro River. The key factors leading to this
Organization (UNIDO), the International Atomic
degradation include large-scale industrialization,
Energy Agency (IAEA), and the Canadian
uneven development of heavy and chemical
International Development Research Centre
industries, and unsustainable resource uses and
(IDRC). The IDRC participation built from
practices. The extent of disturbance to natural
Canadian efforts, since 1994, to assist Ukraine
ecosystems in the Basin has been profound,
with rehabilitation of the Dnipro River. During the
and in many cases irreversible. Pollution and ill-
6 yrs from 1994 ­ 2000, the IDRC invested $10
conceived development have also taken their toll
million in support of 70 research projects carried
on habitats and living conditions of the region's
out by local Ukrainian scientific institutions. The
human population.
involvement of multiple international sponsors

increased project complexity and presented
The concept for the Dnipro Basin Environment
management challenges, but also brought
Programme (DBEP) was approved in December
significant regional knowledge and technical
1999. The project was established by the three
expertise to the project effort.
riparian countries to develop a Transboundary

Diagnostic Analysis (TDA) for the Basin and to
THE EXPERIENCE
achieve agreement on a Strategic Action

Programme (SAP) for protection and recovery of
Addressing the Issue
the river and its tributaries. The focus of the

DBEP was on information gathering, strategic
The DBEP project was implemented during a
planning and capacity building. Expectations
time of considerable change in the region. In
were that the project would aid in understanding
particular, the political and economic
the status, causes and impacts of pollution along
relationships between the three former Soviet
the Dnipro and would achieve agreement on the
republics changed dramatically. The redefinition
steps to be taken to better manage the river
of regional relationships heightened the
system, ensure long term human and ecosystem
challenge of achieving transboundary
health, and sustainable use of the resource.
agreements for the clean up and protection of
Success was to be measured through the
the Dnipro.
achievement of multi-country agreements,

enhanced information sharing on the condition
A decision was reached prior to project launch
and stresses of the river basin, and an improved
that the effort should proceed despite there
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being no legal basis in place for joint
Dnipro River Declaration of 2007 is the best
development and implementation of a Dnipro
evidence of the mentioned above. The formal
Strategic Action Plan. Expectations were that
joint approval of the SAP by Ukrainian and
such an agreement could be negotiated during
Belarus Governments is a significant
project implementation. More than 3 years after
achievement for the countries and UNDP/GEF,
project commencement, the Kyiv Declaration on
and a validation of the project strategy.
Cooperation in the Dnipro Basin was signed at

the 5th Pan-European meeting of European
Even without a formal legal basis, the DBEP
Environment Ministers in Kyiv (May 2003). The
created and maintained strong country buy-in
Kyiv declaration signalled a "readiness" to
and ownership. Local beneficiaries and experts
prepare an international agreement to serve as
have indicated they viewed it to be one the most
the main organisational mechanism for ensuring
successful internationally funded projects they
"stable international cooperation" amongst the
were aware of, especially because of its strong
Dnipro Basin countries, and to define "general
emphasis on using and developing expertise
principles, goals, objectives and commitments of
within the Basin countries. As a direct result of
the signatories in the sphere of Dnipro basin
the DBEP findings and recommendations, the
environmental rehabilitation". 4 years later, and
Basin countries have been expanding their
2 years beyond project completion, the Dnipro
national budgets to improve Dnipro river water
countries are still discussing how to proceed
quality. In particular, Ukraine's budget for water
with the international agreement. Initially, Russia
quality related investments and control
indicated its interest to delay the agreement
measures along the Dnipro and its tributaries
pending further consideration of the financial
increased threefold from 2001 - 2005. Ukrainian
implications. Then, during June, 2007, the three
Cabinet of Ministers has adopted (at the end of
environmental ministers from Russia, Belarus
2007) the principally new Conception on
and Ukraine planned to sign a "Ministerial
Ukrainian Environmental Policy and at present
Declaration on Further Development of
initiated the development of the same name
Cooperation on the Protection of the Dnipro
programmed National Strategy.
River Basin", including joint Ministerial approval

of the Dnipro SAP. Unfortunately, the signing of
The project had a modest impact on national
the Declaration has been refused by the
environmental legislation. Belarus drafted a new
Russian government, therefore new Declaration
law for Environmental Impact Assessment (EIA)
was signed on 17 July 2007 by Ministers on
in the aftermath of an EIA review conducted
environmental protection of Ukraine and
through the DBEP. In addition the main
Belarus. This event couldn't be overestimated
elements of the Programme of Transboundary
with achieving the main result: Ukraine and
Monitoring developed during the DBEP have
Belarus officially adopted SAP and confirmed
now been adopted by the Belarus Programme
their joint course on establishment of Dnipro
on Development of National Monitoring System.
basin international institutional management
And while the legal reforms underway in Ukraine
mechanisms. Belarusian and Ukrainian
may be as much a result of its EU harmonisation
Ministers have invited Russian Federation to be
focus, it too benefited from the DBEP
a party to the mentioned Declaration as well as
environmental policy review and
perspective Agreement too.
recommendations, especially after entering of

Ukraine into the WTO. In Russia, progress on
RESULTS AND LEARNING
environmental legislation remains slowed by

continuing structural changes. However an
The lack of a formal legal basis made
important milestone was recently achieved when
information sharing and inter-ministerial
the Russian Federation adopted its new Water
coordination difficult during the first several
Code in January of 2007 which specifically
years of the DBEP, until the Kyiv Declaration on
adopted the underlying principles of basin
Cooperation in 2003. Nevertheless, the decision
management advocated during the term of the
to proceed has paid dividends, as imminent
DBEP.
bilateral SAP approval sets the stage for a new

era in environmental cooperation in the Basin,
There is more work to be done, as legislation
serving to invigorate ongoing negotiations
and regulatory controls in all three countries
towards a future agreement on the creation of a
remain unclear with respect to environmental
Basin Commission for the Dnipro River. The
liability, and the implementation of
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environmental impact assessment requirements
recognizing the often slow process of achieving
remains inconsistent. One of the future tasks
high level government approvals.
currently being developed for a subsequent
phase of the DBEP is to monitor changes in

SIGNIFICANCE
environmental legislation leading to its
harmonization among the three countries and

with that of the EU.
The Dnipro SAP presents a milestone in

cooperation amongst the Dnipro countries in the
The Dnipro SAP includes a well-developed set
post-soviet era. The river is central to the
of expectations for regional action. While the
Ukrainian and Byelorussia societies, and to the
timetables are imprecise, the expected actions
southwest Russian region. Its cleanup will
are appropriate to the water resource and
remain important for national and regional
region. The SAP document includes a Priority
environmental protection programmes, and
Investment Portfolio, together with the
suggests that the regional coordination
framework for a regional monitoring programme
measures established through DBEP can be
and environmental database, the latter of which
sustainable.
is expected to be approved by separate

ministerial initiatives. In addition the SAP
The desire of the Dnipro countries to continue
specifically identifies the need to address
expanding their joint efforts to improve the
industrial chemical pollution as a high regional
quality of the Dnipro river, and to focus on
priority.
industrial pollution sources, is significant during

this period of slow economic recovery. There is
Within the industrial pollution sector, there are a
now a window of opportunity to establish
variety of national and international
regional institutions and put in place
organizations focusing on major pollution
environmental controls and incentive
sources and large scale industrial complexes.
programmes that can ensure long-term recovery
Still to be addressed within the Basin, however,
and protection of basin water quality and
are the many smaller industries that discharge
biodiversity.
effluents through the municipal waste facilities

(Vodokanals). A PDF B Project development
The Dnipro effort has wider significance with
phase is nearing completion for a follow-on Full-
respect to the continuing international efforts to
Size Project, addressing the problems of cleaner
restore the water quality in the Black Sea. In
production and effluent pre-treatment for smaller
tandem with the legal structures in place for
and in many cases privatized industries that
managing Danube water quality, the Dnipro
discharge into the Dnipro through the
Agreement will set the stage for coordinated
Vodokanals. This new project, entitled:
protection efforts on both of the major rivers
Implementation of the Dnipro Basin Action
flowing into the Black Sea.
Program for the reduction of persistent toxic

pollution will also address issues of sustainable
The Dnipro project has demonstrated how GEF
financing mechanisms and legal and regulatory
projects can proceed to build acceptance for
requirements.
TDA/SAP processes in the absence of a

convention or other legal structures in place,
REPLICATION
enabling a common understanding to be forged

concerning water quality issues, and paving the
The DBEP experience provides valuable
way towards negotiations on binding
lessons for managing transboundary projects in
agreements.
areas facing political upheaval and shifting

REFERENCES
alliances. The TDA/SAP development approach

taken, including the gradual introduction of a
legal framework, can be replicated in cases
Additional information on the Dnipro Project is
where agreements at project commencement
available at the project web site:
are not achievable. The key is to ensure that
http://www.dnipro-gef.net
country buy-in and ownership of the project are

KEYWORDS
maintained throughout. Flexibility will also need

to be built into project time schedules,
S Dnipro River
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S Strategic Action Programme
S Transboundary Diagnostic Analysis
S Persistent Toxic Pollution

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