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).

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

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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)

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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

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The GEF/WB Partnership
• The GEF Council approves a $70 million
Grant Fund on a one time basis to finance
incremental costs for nutrient’s reduction
• Projects in Pollution Reduction Programs of
Danube and Black Sea Commissions
– Waste Water Treatment Plants
– Wetlands restoration
– Agriculture Reform
• About 5 million US$ per project

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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

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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

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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

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READY FOR QUESTIONS,
THANKS FOR YOUR
ATTENTION, … and
NOT FALLING ASLEEP!

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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

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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

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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

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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

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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