PROJECT SUMMARY
PROJECT IDENTIFIERS
1. Project name:
5. GEF Implementing Agency: UNDP
Transfer of Environmentally Sound Technology
(TEST) to Reduce Transboundary Pollution in the
Danube River Basin
2. Country or countries in which the project is 6. Country eligibility:
being implemented: Bulgaria, Croatia, Hungary, Eligible under para. 9(b) of GEF Instrument
Romania and Slovakia
3. GEF focal area(s):International Waters
7. Operational programme/Short-term measure:
Waterbody-Based (8) and Contaminant-based (10)
Operational Programs
4. Project linkage to national priorities, Strategic Action Plans, and programmes:
These countries signed the Danube River Protection Convention, which committed them to taking action to
reduce transboundary pollution. In addition these countries must meet EU water quality guidelines as part of
the accession process to the EU. Moreover, they have actively participated in UNDP/GEF programme (June
1997 to June 1999), that supported the revision of the Danube Strategic Action Plan (DSAP) as well as the
development of a Danube River Pollution Reduction Programme for reducing transboundary pollution both
within the Danube River Basin as well as to the Black Sea.
3. GEF national operational focal point and date of country endorsement:
Ministry of Environment and Water, Sofia, Bulgaria, 4 July 2000;
Ministry of Environmental Protection and Physical Planning, Zagreb, Croatia, 5 May 2000;
Ministry for Environment International Funding Department, Budapest, Hungary, 26 May 2000;
Ministry of Waters, Forests and Environmental, Bucharest, Romania, 12 June 2000; and
Ministry of the Environment, Bratislava, Slovak Republic, 2 June 2000.
PROJECT OBJECTIVES AND ACTIVITIES
9. Project rationale and objectives:
Indicators:
The objective of the project is to build capacity The specifics of the transboundary pollution problems in
in existing cleaner production institutions to the Danube River Basin and Black Sea originating from
apply the UNIDO Transfer of Environmentally the industrial plants in the five countries selected to
Sound Technology (TEST) procedure to participate in the TEST program are delineated in Annex
technology transfer to 20 pilot enterprises that A. Briefly summarized: Bulgaria -- 8 plants contributing
are contributing to transboundary pollution, to nutrient loadings of 50 tons/year or greater; Croatia--
primarily nutrients, in the Danube River Basin 3 plants contributing to nutrient loadings of 50 tons/year
and the Black Sea. The Transboundary Analysis or greater and 2 plants with other pollutant loading
2
10. Project outcomes:
Indicators:
Outputs would be: 1) Strengthened capacities to 1) Cleaner production centers supporting industries to
introduce Cleaner Technologies for pollution reduce pollution 2) reduction of Danube industrial hot
reduction 2) improved water quality.
spots.
11. Project activities to achieve outcomes:
Indicators:
There are three immediate objectives. One is to 1. quarterly reports from NCPC/PPCs; Report on
establish a TEST focal point in the NCPC/PPC Establishment, description of institutional arrangements,
(US$180,000). Two is that the 20 pilot national implementation plans prepared, endorsed by
enterprises in the five countries will be on their governments and participating industries.
way or even may have achieved within the 2. 20 pilot projects (enterprise strategy prepared,
lifetime of the project a significant reduction in financing obtained, implementation begun, investment
their discharge of transboundary negotiations underway.
pollution/nutrients into the Danube River and 3. Revised TEST manuals; five national workshops and
Black Sea. (US$2,380,000) The third is one regional seminar
dissemination of the 20 pilot enterprises to other
enterprises in the five countries as well as other
Danubian countries (US$100,000).
12. Estimated budget (in US$):
The total budget for the project is $US 2.4
million (plus 13 per cent overhead cost). The
amount requested from GEF is $US990,000
(including 10 per cent AOS). The remaining is
being requested from donors to the Industrial
Development Fund (IDF) of UNIDO. Two
donors have shown positive interest in partial
funding of the project.
INFORMATION ON INSTITUTION SUBMITTING PROJECT BRIEF
13. Information on project proposer:
The United Nations Industrial Development Organization (UNIDO) is the project proposer. UNIDO has in-
house capacity and historical experience (since 1996) in transferring technology to the industrial sector in
developing countries and countries in transition that cannot be matched by other technical assistance
organizations. Some of its relevant experience in the region are (1) National Cleaner Production Centers in
the Czech Republic, Hungary and Slovakia (1994/96 to present; $US 1.6 million); (2) Assistance to the
Ministry of Industry to Establish Cleaner Production at Two Polluting Plants at Copsa Mica in Romania
($US 0.3;1994-1996) (3) Promotion of Small and Medium Private Industries in Romania ($US 2.5
3
INFORMATION TO BE COMPLETED BY IMPLEMENTING AGENCY:
15. Project identification number:
16. Implementing Agency contact person:
Chris Briggs, GEF Regional Coordinator, RBEC
Tel. 1-212-906-5460; fax 1-212-906-5102
email: chris.briggs@undp.org
17. Project linkage to Implementing Agency programme(s):
The project supports implementation of the UNDP-GEF Danube Pollution Reduction Programme (PRP),
the anticipated Regional Danube project and the GEF Black Sea Basin programmatic approach to reduction
of transboundary pollution in the Danube River and Black Sea. The project design was based on reports by
the PRP as well as extensive consultation with PRP staff, Secretariat for the International Commission for
the Protection of the Danube River (ICPDR), Heads of Delegation and/or Country Programme
Coordinators (CPCs) for the Danube River Protection Convention (DRPC) and National Cleaner
Production or Pollution Prevention Centers in the five countries.
18. Date of submission of project brief:
20 January 2000; revised 6 April 2000; revised 2 June 2000; revised 12 July 2000.
PROJECT DESCRIPTION
1. PROJECT RATIONALE AND OBJECTIVES
The Danube River Protection Convention (DRPC), which came into force in 1998, commits countries
in the basin to taking action to reduce transboundary pollution in the Danube River and Black Sea. The
Transboundary Analysis (TDA) for the Danube River Basin (1999) identifies the major sources of
transboundary pollution, being agriculture, human settlements and industry whereas the Pollution
Reduction Programme (PRP) has recommended priority projects and measures to address these "hot
spots" of pollution. The TDA identified a total of 130 major industrial polluters in 11 countries.
Given the difficult transition that industry is undergoing in the region as well as the general lack of
knowledge of the potential uses of cleaner technologies in the respective industrial sectors, many
industries are not convinced that it is possible to reduce pollution and still remain financially viable.
The project's objective is to build capacity in existing cleaner production institutions to apply the
UNIDO Transfer of Environmentally Sound Technology (TEST) procedure to 20 pilot enterprises in
five countries that are contributing to transboundary pollution, primarily nutrients. The project will
enhance the skills of the institutions by training, advice and hands on experience with the pilot
4
a program of priority actions and studies in support of a new Environmental Programme for the
Danube River Basin (EPDRB). The countries also agreed to form a Task Force to oversee the
EPDRB. The Commission of the European Communities (CEC), in its role as G-24 Coordinator,
agreed to provide support and coordination for the Task Force. The main objective of the EPDRB has
been to strengthen the operational basis for environmental management in the Danube River Basin.
To secure the legal basis for protecting the water resources, the Danube River Basin countries and the
European Union signed the Convention on Cooperation for the Protection and Sustainable Use of the
Danube River (DRPC) in Sofia, on 29th of June 1994. The main objective of the Convention is that all
parties cooperate by taking all appropriate legal, administrative and technical measures to maintain and
improve the current environmental and water quality conditions of the Danube river and of the waters in
its catchment area. This includes among others the improvement and rational use of surface and
ground water, pollution reduction from point and non-point sources and loads to the Black Sea, as well
as accidental prevention and response measures.
The Convention entered into force on 22 of October 1998. Thus far it has been ratified by eleven
parties: ten Danubian countries (Austria, Bulgaria, Croatia, Czech Republic, Germany, Hungary,
Moldavia, Romania, Slovakia, Slovenia) and the European Union.
Water Quality in the Danube River
The TDA indicates that the following are the main problems that effect Danube water quality: high
loads of nutrients and eutrophication; contamination with hazardous substances, including oils;
microbiological contamination; contamination with substances causing heterotrophic growth and
oxygen depletion and competition for available water. The human activities contributing significantly to
these problems are human settlements, agriculture and industry.
The most recent information indicates that industry, atmospheric deposition, etc. cause about 20-30 per
cent of the problem of excessive nitrogen and phosphorus in the Danube. Old-fashioned fertilizer
factories are major dischargers of nitrogen and their outdoor piles and lagoons of phosphor-gypsum are
a special source of nutrient pollution. Even if production on these sites is reduced or stopped, the
gypsum stores will continue to be serious pollution sources in the future.
Industry and mining are responsible for most of the direct and indirect discharges of hazardous
substances into the Danube basin. Depending on the type of industry, the effluent might contain heavy
metals (smelting, electroplating, chlorine production, tanneries, metal processing, etc.), organic micro-
pollutants (pulp and paper, chemical, pharmaceuticals, etc.) or oil products and solvents (machine
production, oil refineries, etc.). Mining activities result in drainage water from the mines, run off from
tailings and from process water containing metals and sometimes-organic solvents. Data are available
on loading of hazardous pollutants from individual enterprises, but in most cases data are lacking or are
unreliable. Sewage is a main source of ammonia.
5
Industrial Polluters
In the frame of the UNDP/GEF Pollution Reduction Programme (PRP) in 1998/1999, country expert
teams, under the guidance of the respective country program coordinators, undertook a new,
comprehensive review of the sources of pollution and their effects on the Danube River Basin and
Black Sea. Each national team developed a national review for their respective countries based on a
common methodology. The results were then compiled and analyzed at the regional level in TDA.
Based on the TDA the ICPDR Emission Expert Group, 130 industrial enterprises of concern (known
as hot spots) within the Danube River Basin were identified (Table 1).
Table 1. Major Manufacturing Discharges identified by the GEF Danube River Basin Pollution
Reduction Programme, 1998
ISIC
Bosnia
Bulgaria
Croatia
Czech
Hungary
Romania
Slovak.
Slovenia
Ukraine
Yugo-
Total
Code
Herzegov.
Rep.
Rep.
slavia
311 Food &
5
14
2
5
5
31
313 Beverages
321 Textiles
2
1
3
323 Leather
1
2
1
1
1
6
331 Wood
1
1
2
1
5
processing
332 Furniture
1
1
341 Paper
1
1
3
3
2
5
2
1
18
351 Ind.
2
2
1
3
23
6
2
39
Chem. &
Fertilizers
352 Other
2
2
3
7
chemicals
353 Petrol.
1
1
2
Ref.
371 Iron
1
1
2
5
9
372 Non-
1
1
1
3
ferrous
381 Metals
2
2
Oth. Major
1
1
1
1
4
6
contributing to nutrient loadings of 50 tons/year and 12 plants with other pollutant loadings affecting a
SIA in a neighboring country and Slovakia-- 2 plants contributing to nutrient loadings of 50 tons/year
or greater and 10 plants with other pollutant loadings affecting a SIA in a neighboring country.
The major polluting industrial sectors in terms of enterprises are food, paper, chemicals and iron.
Together these four subsectors account for more than 75 percent of the significant industrial pollutant
discharges.
Thus despite the period of transition in most of Central and Eastern Europe that has lead to a
significant decrease in the level of industrial and agricultural activity, industrial pollution still remains a
significant problem to be addressed by Danubian Countries. More importantly, as the economies in the
region recover and industrial production increases, industrial pollution will significantly increase unless
the source of pollution is adequately addressed beforehand.
3. EXPECTED PROJECT OUTCOMES
At the end of the 36 months project period, the following specific situation is anticipated:
3. All enterprises participating in the full programme would have prepared a Sustainable
Enterprise Strategy (SES) that combines the essential elements of business plans, social action
commitments and negotiated environmental compliance schedules. The SESs will explain how
the enterprises, as required by the Convention, would implement best available techniques and
best environmental practices needed to integrate successfully ESTs into their production
processes;
b. Environmentally sound technology options (some combination of advanced process, pretreatment and
final pollution control technologies) successfully identified for three-quarters of the the 20 enterprises.
These options would bring these enterprises into compliance with environmental norms of the EU and
the Convention;
c. Significant (at least 30 per cent) pollutant reductions, with an emphasis on nutrients, in at least one-
half of the participating enterprises and some pollutant reductions in the other one-half as a result of
implementing only cleaner production (process change) measures;
d. As a result of training courses provided by international experts, hands on experience working with
international experts when they advise the 20 enterprises and a study tour, capacity is built in networks
of national institutions to advise the some of the 73 remaining industrial hot spots in the five
participating countries on how to implement the TEST procedure.
e. A TEST management toolkit (technical manuals on enterprise viability, cleaner production, industrial
management, environmentally sound technology assessment, sustainable enterprises strategy,
environmental management systems and investment negotiations as well as 20 case studies and
7
The strategy to achieve the project objectives consists of three elements: establishing a TEST
focal point/network in each of the five countries, applying the TEST procedure to a selected set of
enterprises in the five countries and introducing the TEST procedure in the other countries that are
signatories to the Convention.
Establishment of TEST focal points includes the following activities: US$ 180,000
3. Setting up the TEST focal point in the National Cleaner Production Centers (NCPC) or
Pollution Prevention Centers (PPCs). These units are already functioning and have the
necessary management and office support facilities to carry out the project (See annex B for
detailed information about the history and achievements of each center);
(b) Identifying the most appropriate institutions/experts to support the NCPC/PCPs in carrying out the
project based on advice from UNIDO Headquarters staff, UNIDO national focal points in each
country, Secretariat for the International Commission for the Protection of the Danube River
(ICDRPC) and country counterparts for the DRPC; and
3. ŠIntroducing the focal points to the TEST programme, installing an information management
system (with a linkage to the ICPDR Information System) and preparing an implementation
schedule for application of TEST to selected enterprises.
Application of the TEST procedure to 20 enterprises: US$2,100,000
(a) Selecting enterprises and securing their commitment to participate in TEST programme;
(b) Training of the TEST teams in the analytical techniques (enterprise viability survey, cleaner
production, industrial management, environmentally sound technology (EST) selection, sustainable
enterprise strategy, environmental management systems and investment promotion) that constitute
the TEST (Annex C for additional information);
(c) Applying the TEST procedure to the 20 enterprises in order to identify the least cost solution for
complying not only with water related environmental norms, but also with other environmental
norms as required by EC Directive on Integrated Pollution Prevention and Control. The TEST
procedure introduces enterprises to a sequential series of analytical techniques for two reasons.
One is that the sequential application of these techniques has the greatest potential for identifying
the least cost path to compliance with environmental norms. The other is that application of
cleaner production and industrial management measures has often changed the perspective of the
type of EST needed to come into compliance with environmental norms. The change is usually a
less costly configuration of EST than originally envisaged before the application of the TEST
procedure.
The application of the TEST procedure is uniquely different from earlier and currently on-going
technical cooperation programs addressing industrial pollution in the Danube River Basin in two
8
(a) Preparing informational material for the TEST procedure. The informational material would
include the TEST manual along with case studies;
(b) Hosting national seminars in each of the five countries;
(c) Offering a one-day assessment at polluting enterprises to show them the potential benefits of
applying the TEST procedure at their enterprises;
(d) Introducing the TEST procedure to the six other Danubian countries in a regional
workshop.
Implementing the TEST procedure will draw on several analytical methods that have been
developed/applied by UNIDO in other technical cooperation projects. These include those for
enterprise viability (Manual on Diagnostic and Industrial Restructuring), cleaner production, (Audit
and Reduction Manual for Industrial Emissions and Wastes), industrial management (Manual on
Diagnostic and Industrial Restructuring), environmentally sound technology assessment (A Interactive
Eco-Investment Decision Support Software and Manual on Technology Negotiation), environmental
management systems (ISO 14000 and Eco-Management and Audit Scheme) and investment promotion
(Investment Promotion Services/Agencies).
Immediate Objectives
Locations
Index Measure
Outputs
Establishing the TEST
Bulgaria, Croatia,
Annual activity
Organization of TEST focal
focal points
Hungary, Romania,
Quarterly activity
points; training of team;
Slovakia
reports from
information management
NCPC/PPCs
system and implementation
schedule
Applying TEST
Bulgaria, Croatia,
20 pilot projects
Pilot enterprises selected;
approach to 20
Hungary, Romania,
viability assessment; cleaner
enterprises
Slovakia
production assessment;
industrial management
assessment; EST
identification; sustainable
enterprise strategy;
environmental management
system; investment
promotion package
Disseminating results
Bulgaria, Croatia,
Revised TEST
National seminars held in
to other enterprises and
Czech Republic,
manual and case
five countries; revised
countries
Hungary, Moldavia,
studies; five
TEST manual with country
Romania, Slovakia and
country workshops case studies; 10 enterprises
Slovenia
and one regional
in each country offered one
seminar;
day seminar; regional
assessment reports
seminar; teams identified in
9
being undertaken by five cleaner production/pollution prevention centers set up either by
UNIDO/UNEP or USAID/World Environment Center. The centers are currently working with industry
in these five countries to implement cleaner production measures, which reduce pollution discharge, but
usually not to the extent necessary to comply with environmental norms. The TEST programme will
enhance the capacity of these centers to assist enterprises to comply with environmental norms and at
the same time address issues of enterprise competitiveness and social responsibility.
Three major risks could reduce the effectiveness of the TEST programme. One is that the
environmental authorities may not enforce environmental norms that are necessary to protect water
quality in the Danube River. If they fail to enforce norms, there may not be sufficient incentives for
enterprises to participate in the TEST programme. The risk is there, but it is acceptable because the
national governments are signatories to the Convention and there are numerous environmental action
groups in these countries monitoring the progress in implementing the requirements of the Convention.
Furthermore, countries that plan to enter the EU must comply with water quality standards. This will
be an additional incentive to implement pollution reduction programs. The second is that
environmentally sound technology options (combination of process and pollution control technologies)
identified for some of the 20 plants may be too costly. If implemented by these enterprises, they would
no longer be profitable operations. The risk is acceptable because there is considerable evidence that
compliance with environmental regulations is not excessive (in the range of two to four per cent of
production costs). The third is that financing may not be available for the enterprises to implement EST
options. This risk is acceptable both because there are number of programs providing financial support
for environmental projects and the enterprises themselves have to begin to address environmental
compliance with their own resources if they are to remain in operation.
One minor risk is that some of the participating enterprises may drop out of the TEST programme,
diminishing the number of completed plant demonstrations undertaken by this project. This has
happened in the case of the PHARE programme on Clean Technology with one plant. This risk can be
monitored and probably avoided by the NCPC/PPCs maintaining a continuous dialogue with the
enterprises about their concerns with project activities.
6. STAKEHOLDER INVOLVEMENT AND SOCIAL ASSESSMENT
As explained above (section 5), UNIDO has designed the TEST programme for the Danube River
Basin in close association with the PRP and the ICPDR Secretariat and its country representatives as
well as NCPCs or PPCs in each of the five countries. All parties have reviewed the draft project
document and their comments have been taken into account. In addition, UNIDO has received official
country requests from the UNIDO national focal points in each of the five participating countries.
UNIDO will keep the Secretariat of the ICPDR informed on a regular basis about the activities of the
TEST programme for the Danube River Basin
10
compliance with norms for nutrient and toxic pollutant discharge into the Danube River Basin and
Black Sea. Without the project, the additional capacity to assist enterprises to comply with
environmental norms would not be available on such accessible terms.
The funding requested from GEF is additional because without the GEF support there would not be an
application of the TEST concept in the five countries. International funding for NCPC/PCPs has ended
for four out of the five countries (only Hungary is still being supported by the UNIDO/UNEP
programme). The four centers are continuing their work in cleaner production with their own resources
and fees for service. However, they do not have the capacity or incentive to offer a newer, more
comprehensive service without initial support and experience in its application.
Cost recovery from the project beneficiaries (enterprises assisted) would be introduced in the pilot
phase of the project, but would not be high enough to cover the full costs of services delivered by the
NCPC/PCPs and international experts. All enterprises that participate in the pilot phase would be
requested to pay approximately 10 percent of the costs of the service. Thereafter, the NCPC/PPCs
should move rapidly to full cost pricing of the TEST service as they have already done in many cases
for CP services. This is feasible as each of the proposed countries aspires to entry to the EU and will
have to finance a majority of the needed investments themselves.
INCREMENTAL COST MATRIX
Activity Number
Baseline
Alternative
Incremental
(Alt-Base)
1. Focal Points
Established in
NCP/PPCs
Global Benefits
Capacities needed to
Capacities needed to
Networks in five countries
address both
address both
to provide integrated
competitiveness and
competitiveness and
package of services needed
environmental issues
environmental issues
to achieve compliance with
remain isolated in
recognized and linked
environmental norms
separate institutions and
among institutions and
companies
companies
Domestic Benefits
Lack of appreciation by
Appreciation by service
NCPC/PPCs have a new
service institutions of
institutions of the cost-
service to market to
the cost-effectiveness for effectiveness for
industrial clients
enterprises in providing
enterprises in providing
them an integrated
them an integrated
package of services
package of services
Costs
US$ 180,000
(GEF) US$ 100,000
11
Domestic Benefits
Lack of practical
Practical
EST options for organic
demonstrations that
demonstrations that
pollutant reduction under
enterprises can reduce
enterprises can reduce
active investment
organic pollutants to the
pollutants to the degree
negotiation in at least one-
degree required by
required by
half of 20 enterprises and a
environmental
environmental
significant pollutant
regulations and still
regulations and still
reduction (at least 40
remain competitive
remain competitive
percent) in at least three
quarters of 20 enterprises
at the end of the project
Costs
US$2,100,000
(GEF) US$ 800,000
(IDF)US$1,300,000
3. Dissemination of the
TEST results to other
enterprises and other
countries
Global benefits
Lack of a toolkit for
Toolkit available to
TEST management toolkit
industry that would
industry that would
(technical manuals and
allow it to reduce
describe how to reduce
enterprises reports) for
nutrient and toxic
nutrient and toxic
nutrient and toxics
pollutants as required by
pollutants as required by reduction available to
environmental
environmental
enterprises
regulations and still
regulations and still
remain competitive
remain competitive
Domestic benefits
Lack of understanding
Understanding on the
TEST management toolkit
on the part of industry
part of industry that it
(technical manuals and
that it can reduce
can reduce organic
enterprise reports) for
organic pollutants as
pollutants as required by organic pollutant reduction
required by
environmental
available to enterprises
environmental
regulations and still
regulations and still
remain competitive
remain competitive
Costs
0
US$100,000
(GEF) US$ 0.0
(IDF) US$100,000
Global Environmental
Most of the 100
Most of the 100
At least 20 of the 130
Benefits
enterprises in the five
enterprises in the five
enterprises are committed
countries remain
countries are aware that
to implementing the TEST
unconvinced that they
they can reduce nutrient
procedure by the end of the
can reduce nutrient and
and toxic pollutants as
project
toxic pollutants as
required by
required by
environmental
environmental
regulations and still
regulations and still
remain competitive
12
BUDGET
Full funding of the project is US$2,380,000 for five countries. Full financing requires donors to the
UNIDO Industrial Development Fund to provide support for US$1,480,000 needed for the project in
addition to the US$ 900,000 (plus 10 per cent AOS) from the GEF. Two donors ( the Governments of
Austria and Switzerland) are currently considering the project, but their deliberations will not be
completed before Autumn 2000. The ratio of co-financing to funding requested from GEF is
approximately 1.6:1.
Component
GEF
Other sources
Project total
Project Preparation
25,000*
25,000*
Personnel:
International Experts:
220,000
402,000
622,000
National Experts/Support
520,000
710,000
1,230,000
Staff:
Subcontracts:
25,000
25,000
Training:
100,000
200,000
300,000
Equipment:
20,000
20,000
Travel/Evaluation mission(s):
60,000
115,000
175,000
Miscellaneous:
8,000
8,000
Project Total (PDF excluded):
900,000
1,480,000
2,380,000
Support Costs
90,000
Total GEF
990,000
* Costs for UNIDO staff in preparing GEF submission as well as project document requesting funds
from other sources (not included in the project total).
IMPLEMENTATION PLAN
DURATION OF PROJECT (IN MONTHS):
ACTIVITIES
PROJECTS-MONTHS
I. Establish Focal Point Within NCPC/PPCs
1. Institutional arrangements specified
1
2. Trained TEST teams
2
3. Information system functioning
3
4. Implementation Schedule
4
II. Application of TEST procedure to 20
enterprises
1. Pilot enterprises selected
4-5
2. Viability assessments
6-9
3. Cleaner Production assessments
9-14
13
5.TEST teams identified and trained for four 33-36
countries
PUBLIC INVOLVEMENT PLAN
1. Stakeholder Identification
There are two major groups of stakeholders who will be involved in the project. The first group is the
host institutions that will house the TEST programme and be its manager. These institutions are the
Clean Industry Center (CIC) in Bulgaria, the Croatian National Cleaner Production Center (Cro CPC),
National Cleaner Production Center of Hungary (HCPC), Pollution Prevention Centre (PPC) of
Romania and Slovak Cleaner Production Centre (SCPC). Annex C briefly describes for each host
institution its history, organizational structure, in-plant assessments conducted, training programs,
information dissemination activities and policy dialogue with government. All five host institutions were
consulted in the design of the TEST programme for the Danube and have agreed to be the host
institution.
The second group is a subset of the 130 industrial enterprises identified by the TDA as being major
contributors to water pollution in the Danube River and Black Sea. The subset of 79 plants located in
the five countries is contributing to transboundary nutrient loadings and/or toxic pollutant loadings.
Additional information about the plants is given in Annex A as well as briefly summarized earlier in
this document.
Other important stakeholders are the ICPDR and its Secretariat, the country programme coordinators
for the Convention, and relevant country NGOs working within the Danube Environment Forum.
Another set of stakeholders is investment banks that can utilize the SESs prepared by this project. The
World Bank will be implementing the Danube/Black Sea Partnership Programme with up to 60 million
USD for investment projects. The EBRD is also investigating the establishment of a Danube Credit
Facility or something similar as a mechanism to fund projects.
2. Information dissemination and consultation
UNIDO has consulted with and drawn on the work of the PRP, particularly the SAP, the reports from
the national planning workshops in each country, "Causal Chain Analysis for the Middle and Lower
Danube Countries and the inventory of pollution sources. In addition it consulted with the five
NCPC/PPCs in the design of the project. It presented a draft project document to the ICPDR and
country programme coordinators for the Convention at the final workshop for the Pollution Reduction
Programme at Hernstein in May 1999
3. Stakeholder participation
14
The most important social issue that the project will have to confront is the fact that enterprise
modernization strategies recommended by the TEST procedure will most likely involved some reduction
in the workforce of the enterprises. These reductions have occurred with most modernization efforts,
whether just to improve the competitive position of enterprises or to address a host of issues including
compliance with environmental norms.
The TEST procedure to this issue is to deal with it in as transparent way as possible and to assist
redundant workers in finding alternative sources of income or employment. The NCPC/PPCs will
request each enterprise involved in the project to set up a team to implement the TEST procedure. Each
team will have a union representative. The TEST procedure calls for the preparation of a Sustainable
Enterprise Strategy, one component of which is a social action plan on how to assist workers who are
made redundant as a result of technological modernization. Previous UNIDO projects in the region
(Poland and Romania) on industrial restructuring and modernization have developed social actions
plans which have been remarkably successful in addressing the problem of redundant workers.
MONITORING AND EVALUATION PLAN
An Annual Project Report (APR) will be prepared for this project. In addition, a Tripartite Review will
be conducted with UNDP, the executing agency and the participating governments. The project will
also participate in the GEF Project Implementation Review (PIR). Finally, an independent (external)
evaluation will be conducted upon completion of the project. These measures will ensure that the
project is monitored and evaluated in accordance with relevant UNDP and GEF procedures.
PROJECT CHECKLIST
Project activity category
International Waters
Water body: xxx
Integrated land and water:
Contaminant: xxx
Technical Services
Institution Building: xxx
Investments:
Policy advice: xxx
Targeted research:
Technical/management advice: xxx
Technology transfer: xxx
Awareness/information/training: xxx
15
or its equivalent (Bulgaria, Croatia, Czech Republic, Romania and Slovakia). The other is that there is
a significant number of polluting industrial enterprises (at least five) to participate in the first phase of
the TEST programme. The Czech Republic was not included because the National Review identifying
a few industrial hot spots and they have begun implementation of pollution reduction measures at these
hot spots.
The TEST focal points in each country will be an operating entity within a UNIDO/UNEP
National Cleaner Production Centre, (Hungary and Slovakia), a USAID/ World Environment Centre
Pollution Prevention Centre (Bulgaria and Romania) or a UNIDO funded cleaner production project
(Croatia). All of these centers have an established track record, as documented below, in providing
cleaner production services (in-plant demonstrations, training, information and policy advice) to
industry. All of the centers have the necessary office facilities and equipment that will be needed by
the project.
Bulgaria
Organizational structure
The Clean Industry Center (CIC) was established as a separate operational unit of the Bulgarian
Industrial Association in September 1995 according to the cooperation agreement concluded with the
World Environment Center. The Association is the major business association in Bulgaria. It
represents companies, entrepreneurs and employers of the state, private, cooperative and municipal
sectors. The activities and objectives of the Associations' Environmental Policy are directly connected
with the efforts of the industry achieve sustainable development, minimize their impact on the
environment and raise overall production efficiency. In this respect the CIC implements a diverse range
of activities and services, including quality and environmental management systems.
In plant assessments
The Center has completed the following activities: (a) waste minimization/cleaner production programs
have been undertaken at the Lead and Zinc Complex, Verila, Neftochim, Sofarma; (b) implementation
of ISO 14001, including management training and consultation and environmental review including
mass balances have been undertaken at Biovet Peshter; (c) feasibility studies have been prepared for
Sevlievo and Sevco tannery integrated WWTP; (d) environment site assessment (past contamination)
under the privatization legal procedure have been prepared for MDK Pirdop Union Minier, Lead and
Zinc Complex, Kardjaly; and (e) technical services including gas leakage measurements and consequent
losses have been conducted for Neftochim.
Training
The Center has organized a series of seminars for the main industrialized areas in Bulgaria; for a whole
16
The CIC facilitates the dialog among Industry, government and society, by encouraging, strengthening
and supporting the capabilities of the various industrial sectors in the formulation and implementation
of their own environmental policies. Two assessments have been produced on the industrial
restructuring and environmental performance of the Bulgarian industry and submitted to the Ministry of
Industry and Ministry of Environment. CIC is a leading party in the official adoption of ISO 140001 as
an official Bulgarian Standard.
Croatia
Organizational Structure
The Croatian National Cleaner Production Center (Cro CPC) has been hosted by APO - Hazardous
Waste Management Agency, Zagreb since its inception in 1997. Its staff consists of two full time
professionals including the director and part time clerical support as provided by host institution. The
counterpart to the Centre is the Czech National Cleaner Production Centre.
In-plant assessments
During the first long-term training, 11 CP demonstration projects in 9 industrial companies were
undertaken. Participating companies represent various industrial sectors: chemical, food processing,
pharmaceutical, cosmetics and detergents, ceramics, electronics and adhesive tapes production. During
the second long term training, nine industrial companies are participating: food processing, chemical,
pharmaceutical, shipyards and thermal power plant. Ten in-plant assessments have been initiated as
part of the training.
Training
Since 1997 two long-term interactive "train the trainer" training courses have been organized.
Long-term training consists of three five-day workshops. Between the workshops the participants
undertake demonstration projects in their enterprises. Outputs of first training were 32 experts awarded
the professional development certificate in Environmental Management and Cleaner Production, and 11
CP demonstration projects completed in 9 companies. The second training course, which started in
December 1998, will be completed in October 1999. In this course, 26 experts in CP and
Environmental Management will be trained and 10 CP case studies will be completed.
Information dissemination
Information dissemination is performed through long-term training and promotional seminars. Besides
two long-term training, seven branch and five regional promotional seminars have been organized by
Cro CPC and the Croatian Chamber of Industry. Introductory and promotional presentations have
17
Organizational structure
The National Cleaner Production Centre of Hungary (HCPC) started its operation in May 1997. It is
located in its host institution, the Budapest University of Economic Science, and cooperates with a
number of national institutions involved in CP in Hungary. The office consists of five staff members,
including the director. The office staff works together with 8-10 national experts. The HCPC affiliate
(regional sub-centre) opened in Györ in June 1998. The counterpart to the Centre is STENUM,
Graz/Austria.
In-plant assessments
Five workshops have already been completed in two regional CP projects in Salgotarjan and Dorog
with 12 participating companies altogether. These projects are based on the Ökoprofit methodology,
which has been developed by STENUM, and are carried out in close cooperation with the two
municipalities. HCPC staff members are taking part in a CP-EMS project in a Hungarian brewery.
Training
In September 1998, the staff of the Centre and seven national experts took part in an in-depth CP
training, which was organized by STENUM in Graz/Austria. Six national experts have recently been
trained in Ökoprofit programs. Preparatory work is under way for further training programs. CP has
been included in the curriculum of environment management courses at the University of Economics.
One of the main tasks of the new regional centre in Györ will be to extend the training capacities of the
HCPC.
Information dissemination
The director and the staff of the centre have organized or participated in various CP awareness
seminars in Hungary. The HCPC and partners were present at an international fair in Budapest in May
1998. Several presentations at various conferences have been made. The HCPC has set up an Internet
database on cleaner technologies. The HCPC has been requested to organize the European Cleaner
Production Round Table in 1999.
Policy dialogue
The HCPC is participating in the establishment of a national accreditation body for EMS (environment
management systems) and is member of the National Accreditation Committee. Also, the NCPC is
taking part in the development of economic and legal conditions in order to promote the CP concept,
e.g. creation of an environmental insurance system for companies, where the fee is based on the
environmental performance of the company. The director and staff members are taking part in the
project initiated by the Hungarian Academy of Sciences to develop the environmental strategy for the
EU accession.
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The PPC has undertaken three CP demonstration projects in the leather sector, which included
equipment and training in monitoring and analysis of wastewater discharge. The PPC has undertaken
eight CP projects in companies from different industrial sectors (metal finishing, steel processing,
metallurgy, wood processing, leather work), which included training in CP principles and were
continued by the companies which implemented a series of CP projects. In addition, the PPC has
undertaken six energy conservation demonstration projects, which included training in the use of
analytical equipment.
Training
The PPC has organized 11 workshops for the management staff of industrial plants. The plants
included the main industries in Romania, including oil processing, chemicals, ferrous and non-ferrous
metals, leather tanning and pulp and paper. The workshops covered CP, energy conservation and EMS.
Information Dissemination
The PPC has written and distributed manuals on waste minimization (more than 200 copies), energy
conservation (more than 300 copies) and EMS (more than 150 copies). The PPC has published a report
that describes CP projects undertaken in Romania, Bulgaria, Czech Republic and Slovakia.
Policy Dialogue
The PPC has proposed to the local Environmental Protection Agencies to make an inventory of
pollution sources and to encourage industry to adopt CP measures. The first phase of this inventory will
focus on major cities. In addition there are several joint activities with the Ministry of Waters, Forests
and Environment Protection, the Ministry of Industry and the Ministry of Public Health.
Slovakia
Organizational structure
The Slovak Cleaner Production Centre (SCPC) is an independent not-for-profit non-governmental
organization operating since 1995 as a civic association affiliated with the Slovak University of
Technology in Bratislava. At its inception, the Centre received funds within the framework of the
Slovak-Norwegian Cleaner Production Programme and later also from other sources. The Centre is a
member of the PREPARE core group working in the European Union in the area of CP, and of the
International Network of Environmental Management. The Centre represents Slovakia in activities of
ISO TC 207 -Environmental Management. Methods applied by the Centre were based and developed
upon the experience of the counterpart institution STENUM, the Norwegian approach and the Center's
own experience. The focus is on small and medium enterprises.
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In November 1995, 11 Slovak experts participated in a five-day workshop on EMS organized by
STENUM. During the demonstration projects in Martin and Trnava, ten consultants received in-depth
training in CP. In total the Centre has trained 260 national CP experts, consultants and managers. In
1997 the SCPC created a Club of national CP experts and managers. In October 1997 a long-term
training course on EMS and CP was started. In 1998 the EMS+CP course focused on training of 20
national experts and implementation of EMS+CP in four national companies, to meet the demands of
ISO 14000. New projects, integrating CP, EMS and a health and safety management system were
started as well. In October 1998 a joint training with Regional Training Centre for Basel Convention
was held for government representatives of 20 CEE and NIS countries.
Information dissemination
In its four years of operation, the SCPC has organized 32 CP workshops and introductory seminars for
participants from industry, services, municipalities and research and development institutions. It has
published a 28-page brochure on the Slovak CP programme, three newsletters and 33 articles in
bulletins and newspapers and has received press and radio coverage. The first conference on CP in
Slovakia was held in June 1996. At that time, the Club of Cleaner Production Experts and Managers
was formed. In September 1996, in cooperation with SUSTAIN Austria, the SCPC organized the
second Slovak Cleaner Production Conference and a conference on the Glass Industry and the
Environment. During the last two years, activities and results of the Centre were presented at 29
national conferences and seminars and 10 international events.
Policy Dialogue
SCPC has prepared several reports for the Government and the Ministry of Economy, the most
important ones being cleaner technologies in Slovak industry and development of biotechnologies. In
addition, it has proposed that the Ministry of Economy should include CP in its document on industrial
policy in the Slovak. This proposal was approved by the country's Parliament. Several joint activities
with the Ministry of Environment and the Agency for Environment Protection were undertaken.
ANNEX C: TEST PROCEDURE
The TEST procedure starts with enterprise viability assessment, which determines whether the
enterprise has the potential to remain in business for more than five years given its market position
included in the project because new investment in the plant, which would include investment in EST,
and costs of production (Figure C.1). If the answer is negative, an enterprise would no longer be would
not be warranted. If the answer is positive, then the enterprise would proceed with a clean production
assessment because this assessment would identify pollutant reduction measures that an enterprise
could undertake within its own financial resources. If these CP measures are implemented, which would
demonstrate an enterprise's commitment to environmental improvement, then an industrial management
assessment is undertaken. If the plant implements the measures recommended in this assessment, then
20
environmental compliance schedule if the strategy is near a successful finalization (agreement with
labour unions and environmental authorities), an enterprise would enter into the last two steps of the
TEST procedure.
Figure: C.1 Test
Procedure
Enterprise Selected
No
Yes
Viability Assessment
No
Yes
Cleaner Production Assessment
No
Yes
Industrial Management Assessment
No
Yes
Environmentally Sound Technology
No
Assessment
Yes
Sustainable Enterprise Strategy
No
Yes
Environmental Management System
No
Yes
Investment Negotiation
No
It would formalize an environmental management system for its operations as most of the preparatory
work for setting up the system would have already been done in undertaking the earlier steps. And, it
would begin the process of investment negotiation, which move in the direction of finding a strategic
partner to bring into its operations or in the direction of approaching major lending institutions, such as
the World Bank and EBRD. If the former direction is envisaged (making a business alliance), the