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








2007-004

Institutional Training and Capacity
Building in Support of Private Sector
Partnerships


Abstract: The Danube TEST project was designed and targeted to demonstrate how environmentally
sound technologies would not only aid in reducing point-source pollutants but would assist the associated
enterprises that adopted them in being more cost-effective and less wasteful. Although there are
capacities in Danubian countries to provide many of the services needed by industry to pursue the
simultaneous objectives of competitiveness enhancement, social responsibility and environmental
compliance, these capacities remain isolated in separate institutions and companies. The project aimed
to build the capacity of these national bodies to implement TEST tools and to advise on Best Available
Practices (BAP's) and Best Available Technologies (BAT's). National counterpart institutes in each
country worked to train their selected enterprises to implement and adopt of an appropriate suite of TEST
tools. The project provided them with direct experience in implementing TEST in selected demonstration
enterprises, then `marketed' these successful demonstrations and created a landscape where other
enterprises would be encouraged or even required to adopt the same tools and procedures. A strong
level of networking and cooperation has developed between the national counterpart institutions and this
has led to countries sharing their special expertise with each other and assisting each other in the
development of further TEST initiatives. The training and capacity building approach discussed above is a
means to strengthen of national institutions in cutting edge approaches to reducing industrial
environmental footprints.

David Vousden
DavidVousden@aol.com
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Institutional Training and Capacity Building in Support of Private
Sector Partnerships

Experience of the GEF - sponsored

GEF/UNDP: Transfer of Environmentally Sound Technology (TEST) to
Reduce Transboundary Pollution in the Danube River Basin
GEFID: 867, UNDP: RER/00/G35

PROJECT DESCRIPTION
were successful. Selected companies made

considerable investment into the adoption of
In the context of UNDP-GEF's ongoing Danube
cleaner production processes and
Regional Program, the GEF Transfer of
environmentally sound technology. Moreover,
Environmentally Sound Technologies (TEST)
the project left in place suitably trained and
project was implemented by UNDP and
capacity-built TEST focal institutions within each
executed by UNIDO during 2001-2004. The
country. They were able to continue to assist the
Development Objective of the TEST initiative
original 17 enterprises while promoting TEST
was twofold:
and delivering the TEST tools to other interested
companies, as well as offering their services as
S To improve industrial environmental
TEST Trainers to similar institutions in other
management by major industrial enterprises
countries.
in the Danube River Basin, resulting in major

reductions in pollutant loading and
Independent terminal evaluation of GEF TEST
consequently risk to the Danube River and
found the project to have been most notably
Black Sea aquatic environments.
successful and a very worthwhile example of a
S To build capacity in networks of national
GEF MSP investment, from which many
cleaner production institutions to advise the
valuable lessons and practices could be
enterprises in the five participating countries
captured. The Evaluation provided a number of
on how to implement the TEST approach.
recommendations, including the proposal that
serious consideration be given to further
This GEF Medium Sized Project was designed
investment to transfer these lessons and best
to demonstrate how environmentally sound
practices and to build on the substantial
technologies could not only aid in reducing
achievements of the TEST project, including
point-source pollutants but could also assist
expansion of the training and capacity building
enterprises to: be more cost-effective and less
within other Danube Basin countries as well as
wasteful, comply with environmental standards,
other important IW water-bodies (e.g. Caspian
and still maintain or enhance their competitive
Basin, Black Sea, etc).
position. The project targeted Bulgaria, Croatia,

Hungary, Romania and Slovakia, selecting a
THE EXPERIENCE
total of 17 enterprises across these Danube

basin countries in which to demonstrate the
Issues and Challenges
TEST process and its tools. The project

successfully completed training, capacity
The Transboundary Analysis (TDA) for the
building and institutional strengthening for TEST
Danube River Basin (1999) identified the
procedures at both levels of the demonstration
following main problems that affect water quality
enterprises and of the national counterpart
use: high load of nutrients and eutrophication;
institutions (i.e., Cleaner Production Centres
contamination with hazardous substances,
(CPC's), Pollution Control Centres (PCC's) or
including oils; microbiological contamination;
similar bodies). One such institution in each of
contamination with substances causing
the 5 countries serviced the needs of
heterotrophic growth and oxygen depletion and
participating enterprises.
competition for available water. The human

activities contributing significantly to these
Actual demonstrations of the TEST approach
problems are human settlements, agriculture
(various options for environmental management
and industry.
and pollution reduction) within the 17 enterprises
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requirements as well as the Danube River
Up until the inception of the TEST initiative
Protection Convention requirements
within the Danube basin, there was a lack of

convincing practical demonstrations with private
UNIDO identified the National counterparts
sector enterprises that it is possible to comply
within each country based on their joint
with environmental norms and still advance their
programme with UNEP for the identification of
competitive positions. Danubian countries are
suitable institutes for the development of
capable of providing many services needed by
Cleaner Production Centres. These counterpart
industry to pursue the simultaneous objectives
institutes would deliver the necessary TEST
of competitiveness enhancement, social
products and training. These were either existing
responsibility and environmental compliance.
national CPCs (established by UNIDO and
However, such capacity remained isolated in
UNEP), PCCs or other appropriate institutes
separate institutions and companies. None
dealing with national pollution management and
provided an integrated service package for
control.
enterprises to pursue the three objectives

simultaneously.
The TEST approach uses a modular set of tools

could be targeted or enhanced to suit specific
The project aimed to build the capacity of these
enterprises. Training and delivery focussed on
national bodies to implement TEST tools and to
the following sequence of tools:
advise on Best Available Practices (BAP's) and
A. An Initial Review of Company Needs:*
Best Available Technologies (BAT's). One of the
primary challenges of the TEST Project was
Identifying which of the following modules
therefore institutional strengthening within each
need to be integrated into the specific
country to capture "under one roof"
enterprises' TEST programme
understanding of the TEST procedures and
B. Environmental Management Systems:
tools. Another challenge was train that body to
Practices and procedures to promote an
deliver these services as a marketable product
environmental policy within a company's
to appropriate enterprises.
overall quality management system

C. Cleaner Production Assessment:* An
Addressing the Issue
integrated preventive environmental strategy

applied to industrial processes, products and
130 industrial enterprises of concern (known as
services to increase overall efficiency and
hot spots) were identified within the Danube
reduce risks/impacts to humans and the
River Basin. Five countries were selected to
environment
participate in the TEST programme. All of these
D. Environmental Management Accounting:
target countries were in 1) Economic and
Identifying the financial impacts on improved
political transition, 2) Undergoing increasing
environmental performance (which can
industrial production and consumption, 3)
negative or positive)
Experiencing growing environmental pressure,
and 4) experiencing changing social conditions
E. Environmentally Sound Technology
and considerations. The main criteria for
Assessment:* Implementing best available
selecting these 5 countries were 1. They were
techniques and practices to improve
contributing the high nutrient loadings to the
environmental performance or meet
river basin, coupled with 2. The countries had
environmental norms
established Cleaner Production Centres or
F. Sustainable Enterprises Strategy (SES):
similar institutions in place.
Adoption of all of above into performance

objectives within an overall business
The aim of the TEST initiative was to work with
strategy so they are not `stand-alone' but
the selected pilot enterprises to:
form part of overall company policy

S Demonstrate the feasibility of achieving
* Each enterprise went through these 3
industrial compliance with environmental
modules. Selected enterprises did one or more
norms and social considerations while
other modules.
maintaining a company competitive edge
S Bringing the selected enterprises into
CPCs stressed that all modules are integrated
compliance with European Union Accession
and should be considered related to one
another.
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The Project worked with the national counterpart
Although companies were initially cautious about
institutes in each country to train their selected
the entire TEST approach they tended to be
enterprises to implement and adopt of an
more ready to cooperate if they had already had
appropriate suite of TEST tools. The final
some dealings with the counterpart institutes (in
module on SES was considered particularly
their roles as CPCs). After the initial review
important, as it integrates previous modules,
process, they were more aware of the tools and
environmental assessments and reviews into an
underlying rationale, and quickly understood the
overall corporate management and business
potential advantages to them: complying with
strategy. To ensure this vital TEST component
environmental norms, competing within a wider
was well understood, UNIDO delivered an SES
market, and reducing costs by decreasing
workshop for all national counterparts. National
unnecessary waste and discharges.
counterpart institutes also received training in

COMFAR (Computer Model for Feasibility
The lessons learned from this exercise in
Analysis and Reporting), software developed by
relation to institutional training and capacity
UNIDO to aid their analysis of investments in
building:
both new projects and expansion/rehabilitation

of existing enterprises.
A. The modular approach adopted for the

TEST process was enormously valuable.
RESULTS AND LEARNING
This allows companies to select (with

assistance and advice) those tools that were
A total of 90 persons within counterpart institutes
most appropriate to their needs. Companies
(or individual consultants) were trained in TEST
with some environmentally sound policies
procedures through 622 days of training. The
can merely plug in the more advanced tools.
Project was responsible for creating 8 new jobs
Where CPCs enhanced the TEST package
to support the TEST process within participating
with modules in their own areas of expertise,
countries. Although some CPCs had experience
such as energy efficiency and energy
with individual TEST tools already, every one of
auditing. Thus, the modular approach was
the 5 counterpart institutes developed a new
quite appropriate.
suite of skills to deliver to industry. Notably,

1691 person-days of training raised capacity for
B. Pre-existing relations with CPC enhanced
a total of 380 enterprise employees.
companies' positive reactions. Initial caution

about TEST evolved into more positive
National counterparts received high quality
reactions when enterprises had met
training in TEST and associated products. They
previously with their CPC. They became
could then market and deliver this expertise
more supportive and enthusiastic once
within a context of growing demand. This
internal problems were identified in relation
training and capacity building were provided
to pollution discharges and wastes, then
through real `shop-floor' experiences within
linked to improved market competition and
industrial enterprises. Clearly this created a `win-
compliance via the Initial Review and the
win' situation for these counterpart institutes.
Environmental Management Accounting
The Project provided them with direct
process.
experience in implementing TEST in selected

demonstration enterprises, then `marketed'
C. The technological transformation of
these successful demonstrations and created a
enterprises to environmentally sound
landscape where other enterprises would be
technologies must also account for
encouraged or even required to adopt the same
economic and social considerations. Failing
tools and procedures. The CPCs then found
to take into account these two factors
themselves in great demand due to their unique
usually prevents the implementation of the
knowledge and were therefore able to become
transformation. In particular, if employees
cost-effective businesses in their own right. By
are not failure involved in both in design and
the end of the project, the CPCs and PCCs were
implementation of the transformation, then
in an advantageous position to sell their services
negative effects on employment will prevent
professionally, offering industry very effective,
significant technology transformation.
modular packages delivering cleaner and more

cost-effective production.
D. CPCs provide valuable valuable service

through independent advice, assessments
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and opinions on BATs and BAPs.
well as to countries in the basins of the Black
Commercial companies are biased in trying
and Caspian seas.
to sell their environmentally-friendly

technology and innovative techniques. They
In replicating these early TEST initiatives it
will always maintain that their products are
would be advisable to take note of the following
best and the companies need a reliable.
challenges and potential improvements that
Thus, CPCs can provide a more impartial
relate to training and capacity building:
source of advice.
S A lead-in time is very important, through a

Other relevant lessons are reflected below under
PDF phase or initial project development
6. Replication as advisory notes specifically to
process, to allow stakeholders to get to
guide future TEST initiatives.
know each other and to develop working

relationships. Existing CPCs were functional
REPLICATION
in 3 countries but other appropriate

institutions had to be identified elsewhere. In
This is one of the most replicable of GEF's
one of the remaining countries, two
initiatives. It provides very clear lessons, best
institutions were selected and later rejected
practices, and highly successful demonstrations
after unsatisfactory delivery before an
of processes leading to stress reduction and
appropriate counterpart was found. This led
inevitable environmental status improvements.
to delays in project delivery within that

country.
A number of the CPCs have already been

S It's better to put CPCs in place BEFORE
approached by the original demonstration
attempting to deliver TEST tools and
enterprises to provide further assistance and
processes to the private sector. The CPCs
upgrading which the companies will now pay
them for directly (as opposed to using GEF
represent a valuable national `sustainability'
funds). The CPCs are also being approached by
and `replicability' component. Once they
new enterprises with a view to contracting them
have received sufficient training, they can
to carry out various levels and stages of TEST
continue to provide TEST facilities to any
procedures within their companies, particularly
private sector interest. An assessment of
in order to meet the ISO 14000 and IPPC
capacity building existing institutions to
(Integrated Pollution Prevention and Control)
become CPCs was sustainable whereas
requirements. Training and capacity building
establishing entirely new institutions was
within individual enterprises has proved to be
not. Therefore projects that enhance existing
very valuable from the replication point-of-view:
capacity rather than create new CPC
Trained personnel have been seen to move up
institutions are more likely to be sustained.
through the company to very senior posts

S TEST training is a dynamic and on-going
carrying their ideas and support for TEST with
them. Some have moved to other companies
process. Companies should be reviewed
and carry their new experience and knowledge
and reassessed for TEST-related efficiency
with them to raise awareness of TEST tools and
and sustainability. The established CPCs
processes within their new company.
would be well suited to developing and

undertaking this assessment process.
Furthermore, a strong level of networking and

cooperation has developed between the national
S CPCs with TEST experience can be used to
counterpart institutions and this has led to
build capacity within new or less
countries sharing their special expertise with
experienced institutes.
each other and assisting each other in the

development of further TEST initiatives.
Some level of post-project assessment would be

valuable to determine how sustainable the TEST
Such further TEST initiatives are currently under
process has been both within the companies
implementation or being developed. This
and at the national level. CPCs have a
includes a follow-up to the Danube TEST pilot
potentially valuable role to play in this
project that aims to extend delivery of the TEST
assessment process, which could actually go
process to other Danube river basin countries as
beyond just assessment and review by actively
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encouraging the enterprises to continue and
S Industrial Environmental Management
expand on their TEST-related demonstrations.
S Private Sector Partnerships


SIGNIFICANCE
The Global Environment Facility (GEF)

International Waters Experience Notes series
This TEST initiative is of enormous significance
helps the transboundary water management
to transboundary waters management as well as
(TWM) community share its practical
to the overall control of land-based sources of
experiences to promote better TWM.
pollution, integrated water resources
Experiences include successful practices,
management and coastal area management per
approaches, strategies, lessons, methodologies,
se. The training and capacity building approach
etc., that emerge in the context of TWM.
discussed above is a means to strengthen of

national institutions in cutting edge approaches
To obtain current IW Experience Notes or to
to reducing industrial environmental footprints.
contribute your own, please visit
As such, it represents a major advance toward
http://www.iwlearn.net/experience or email
sustainable pollution reduction within river
info@iwlearn.net.
basins and other transboundary waterbodies.

REFERENCES

Website for the Transfer of Environmentally
Sound Technology in the Danube River Basin:
www.unido.org/doc/26190

Contact Information:

Roberta De Palma, Project Director
depalma.roberta@gmail.com

Pablo Huidobro
p.huidobro@unido.org

Publications:


Productivity and Environmental
Performance: An Integrated Approach.
Know-how and experience from the UNIDO
project "Transfer of Environmentally Sound
Technology (TEST) in the Danube River
basin (Authors: Roberta De Palma, Vladimir
Dobes)

Introducing Environmental Management
Accounting at Enterprise Level. Methodology
and Case Studies from Central and Eastern
Europe. (Authors: Roberta de Palma, Maria
Csutora).

Danube TEST Project Terminal Evaluation
http://www.iwlearn.net/iw-
projects/Msp_112799491541/test-terminal-
evaluation.pdf/view

KEYWORDS

S Environmentally Sound Technology
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