A PowerPoint presentation by Manuel Marino, Lead Water and Sanitation Specialist, World Bank during the International Waters Workshop - A CEO Dialogue Jointly Organized by GEF and WFEO/FIDIC June 7-8, 200 in Washington, DC, USA. The slides highlight the following topics: (1) Purpose of the Partnership and the Investment Fund, (2) Impact of GEF grant funds, (3) Advances to date, (4) How they see the future

1. June, 2001 GEF Int. Waters. Washington1
The Danube River and Black Sea GEF Financed
Investment Program
PRESENTER: Manuel Marino, Lead Water and Sanitation Specialist,
World Bank
CONFERENCE: International Waters Workshop - A CEO Dialogue
Jointly Organized by GEF and WFEO/FIDIC
LOCATION: Washington, DC, USA
DATE: June 7-8, 2001
CONTACT: IW:LEARN
4211 N. Fairfax Dr.
Arlington, VA 22207 USA
Tel: +703-522-2190
Fax: +703-522-2191
info@iwlearn.org

2. The Danube River and Black Sea
GEF Financed
Investment Program
The GEF/WB Nutrient
Reductions Partnership.
The Investment Fund

3. June, 2001 GEF Int. Waters. Washington3
What Do I Want to Tell You in
10 minutes?
• The purpose of the Partnership and the
Investment Fund
• How we see the Impact of GEF grant funds
• Advances to date
• How we see the future

4. June, 2001 GEF Int. Waters. Washington4
The Environmental Challenge
• The Black Sea and the Danube River are facing a
Potential Ecological Disaster from Nutrification
– Ten fold drop in fish catches. From 26 to 6 viable species. Over
$300 million/year decline from mid 1980s to 1990.
– Loss of 10,000 km2
of ecologically most valuable algae beds. Bloom
of exotic species. Anchovy catches down 80% or 400,000 t/y
– Tourism revenue losses (400 million $/year) and poor environmental
conditions (over 20,000 water related illnesses).
• The severity of current degradation will be
aggravated with the economic recovery
• A regional solution is required
• Despite knowledge and awareness, lack of financial
resources to solve regional environmental problems
(mainly in Black Sea)

5. June, 2001 GEF Int. Waters. Washington5
The Solution Challenge:
Translate Theory and Planning into Action
Mobilize Investment Funds and Translate Regional
Priorities into National Investment Plans
• Strategic Intervention with Grants,
Externally Funded
• Develop Policies
– Nutrient’s market, cost sharing formulas, etc.
• Further Knowledge Development
– Monitoring and evaluation, New Emerging
Challenges
• Further Awareness. Public Outreach

6. June, 2001 GEF Int. Waters. Washington6
The GEF/WB Partnership
• The GEF Council approves a $70 million
Grant Fund in three tranches to finance
incremental costs for nutrient’s reduction
• Projects in Pollution Reduction Programs of
Danube and Black Sea Commissions
– Waste Water Treatment Plants
– Wetlands restoration
– Agriculture Reform
• About 5-7 million US$ per project

7. June, 2001 GEF Int. Waters. Washington7
The GEF Program
The Instrument to Pass from Planning
into Action
Priority Investment Projects
Identified by the Danube River
and Black Sea Regional Programs
Danube
Commission’s
Regional Project
Black Sea
Commission’s
Regional Project
GEF/WB Partnership
for Nutrient Reduction

8. June, 2001 GEF Int. Waters. Washington8
Characteristics of the
World Bank/GEF Partnership
• Predictable and easy access by countries to a
pre-approved envelope of GEF grant funds
• Grant funds used to attract co-financing
• Simple eligibility criteria responding to
regional priorities
• Streamlined processing by GEF
• Opportunistic/Competitive selection

9. June, 2001 GEF Int. Waters. Washington9
Impact of Declaring a GEF/
World Bank Partnership
• Sends signal to governments that grant
money is available
• GEF/Bank Partnership will help steer co-
financing by others to nutrient reduction
objectives of the Partnership
• Would catalyze private sector interest and
action
• A model arrangement with GEF; other
regions may follow

10. June, 2001 GEF Int. Waters. Washington10
Advances to Date
• Three Projects under Active Preparation
– Rostov Wastewater treatment
– Romania Agriculture Improvement
– Bulgaria Wetlands recovery
• Several Projects Identified
– Budapest, Sebastopol, Zagreb Wastewater
– Gemenc (Hu), Romania, wetlands
– Turkey agriculture
• Where is the Private Sector?

11. June, 2001 GEF Int. Waters. Washington11
How can we Attract Additional
Financing (Private Sector)?
• Consulting Companies
– Changing From Clients
to Partners
– Identifying Business
Opportunities
– Identifying reforms
needs that make trans-
boundary investments
sustainable
• Operators/Production
– Grants mobilized by the
credibility of GEF
intervention
– Investments feasible by
grant contribution
– Investments facilitated by
reduction of risks
– Investments accelerated by
reforms brought by GEF
Other you can Suggest?

12. June, 2001 GEF Int. Waters. Washington12
THANKS FOR YOUR
ATTENTION, READY FOR
QUESTIONS, … and
We have many questions too!

13. June, 2001 GEF Int. Waters. Washington13

14. June, 2001 GEF Int. Waters. Washington14
Substantial Progress by the Work
of the two Commissions
• There is an Assessment of the Situation
– Identified Possible projects
– Defined Regional Priorities
• Awareness has been Raised
– Mobilized support
– Mobilized funding
• Developed Cooperation among Countries
– Commission/Secretariat functioning and funded
– Pollution reduction targets established
• However, Limited Investments until Now

15. June, 2001 GEF Int. Waters. Washington15
Large Benefits of the Investment
Programme
• Total investments identified of 1.9 B$
• Very conservative cost-benefit analysis
yields a 23-76% ERR
• Needed to reverse degradation associated
to expected economic recovery
• Partnership would leverage additional
investments and help catalyze the Full
Investment Program

16. June, 2001 GEF Int. Waters. Washington16
Commitment from WB
Management
• Maintain Bank’s role in Regional Programs
• Support for awareness raising of Black
Sea/Danube problems
• Readiness to play a central role in a
Regional Investment Program
• Mandate to work with other IFIs and pass
on GEF funds when applicable

17. June, 2001 GEF Int. Waters. Washington17
World Bank’s Role
• Finance Priority investments at National Level
• Demonstrate to National Governments the Benefits
of Participating in Regional Programs
• Help seek international financing to support these
countries combat pollution in regional hot spots
• Together with the UNDP, the EU and other IFIs,
help develop the framework for a coordinated action
with other regional activities
The EU is the appropriate institution to play the
leading role in mobilizing political support

18. June, 2001 GEF Int. Waters. Washington18
Who adds what to the Partnership
• Political leadership: comes from the countries,
through both Commissions, and the EU
• Bank would:
– provide support in assessing investment priorities and
policy reforms as part of our country dialogue.
– directly finances high priority investments.
– convenes regional actors
– attracts and leverages other sources of financing.
• UNEP/UNDP would provide support to the
Commissions
• GEF would provide Grant funds and adm. budget
• Countries, Donors, IFIs would bring add. financing