CLEAN-UP OF ENVIRONMENTAL HOTSPOTS PROGRESS REPORT MAY Zrenjanin d i n

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1 UNITED NATIONS ENVIRONMENT PROGRAMME POST-CONFLICT ASSESSMENT UNIT UNITED NATIONS OFFICE FOR PROJECT SERVICES CLEAN-UP OF ENVIRONMENTAL HOTSPOTS PROGRESS REPORT MAY 2002 Subotica T Sombor V o Danube j Becej v Novi Sad Oil refinery isza o Zrenjanin d i n Sabac Loznica Beograd a Pancevo Industrial complex: - fertilizer plant - petrochimical plant - oil refinery Smederevo Pozarevac S E R B I A Cacak Morava Kragujevac Zastava car factory Bor Copper mine Negotim Priboj Pljevlja Tara Kolasin M O N T E N E G R O Podgorica Cetinje Prokuplje Novi Pazar K o Dakovica s Kraljevo FEDERAL REPUBLIC OF YUGOSLAVIA Krusevac Ibar S i tn ica Mitrovica o v Nis Leskovac Vranje o Pirot Prizren Project YUG/00/R71

2 Clean-up of Environmental Hotspots Project YUG 00-R71 1. Introduction Following the first year of implementation of the UNEP-led project Clean-up of Environmental Hotspots in the Federal Republic of Yugoslavia, it can be stated that work is moving forward at a swift pace with projects currently being implemented at all four hot spot sites (Bor, Kragujevac, Novi Sad and Pancevo). The financial support from donors currently stands at US$ 11,2 million, and this gives UNEP the means to implement most of the clean-up projects of highest priority in the FR of Yugoslavia during the year However, in order to address all the major environmental concerns identified by UNEP assessments, UNEP will actively continue the fund-raising throughout this second year of clean-up activities in the field. The Clean-up of Environmental Hotspots is also included in the OCHA consolidated inter-agency appeal for funding humanitarian assistance for the year Background In June 1999, the joint UNEP/UNCHS Balkans Task Force (BTF) was established to collect and analyse the consequences for the environment and human settlements of the military actions in the Balkans region. The work was presented in a report entitled The Kosovo Conflict - Consequences for the Environment and Human Settlements (October 1999). The report highlighted a number of important conclusions on the post conflict situation in the area and in particular singled out four heavily polluted environmental hot spots (Pancevo, Kragujevac, Novi Sad and Bor), for immediate humanitarian assistance. As the problems identified have important implications for human health and welfare, it was suggested that these problems would be addressed within the framework of humanitarian post-conflict assistance. In November 1999 the mentioned urgent environmental and human health problems were included in the OCHA consolidated interagency appeal for funding humanitarian assistance for the year Consequently the project has again been included in the appeals for 2001 and Reactions from a number of governments, the European Union and international organisations were encouraging, and thus UNEP was asked to carry out a detailed feasibility study, to clearly define the exact scientific and associated financial requirements required for the clean-up of the hot spots. Thus the original report was followed in February 2000 by a feasibility study, finalized in April 2000 that identified 27 clean-up projects to address the post-conflict environmental and humanitarian problems 1. 1 See: with UNEP Post-Conflict Assessment Unit carrying on the work of UNEP Balkans Unit Clean-up of Environmental Hotspots May

3 In order to elaborate in more detail the necessary action, a preparatory phase for the implementation of the most urgent priority projects was introduced. During the preparatory phase (August December 2000) the main achievements were the setting of priorities for the projects identified in the Feasibility Study as well as the preparation of the principal legal and technical project documentation in co-operation with the national and local partners. This phase also included extensive communication with donors and international community to raise funds for the Programme. UNEP has the overall responsibility of the project and will, in cooperation with the implementing agency United Nations Office for Project Services (UNOPS), coordinate all environmental projects and activities related to the humanitarian environmental clean-up projects identified in the UNEP/BTF Feasibility Study. Clean-up of Environmental Hotspots May

4 2. Framework and Objectives The project started by UNEP in August 2000 is of a normative nature to set an example for clean-up action of serious environmental damage in the region of South-Eastern Europe. The clean-up operation in the Federal Republic of Yugoslavia can serve as a model project to set standards for future complicated environmental remediation in the region. Consequently, an integral part of the UNEP/UNOPS Clean-up Project is to create knowhow and prepare guidelines for the UN on the planning and management of UN emergency environmental response. Doing this, the Project should: Limit to/focus on the humanitarian approach Deliver the assistance as soon as possible Respect the national and local legislation and regulation Act in accordance with international standards on environmental management Apply clean technology principles Strengthen local and national capacities on environmental management Promote and support local solutions to identified problems Provide positive input to environmental awareness raising 3. Status report Project team and partners Many of the listed priority projects are complex and require extensive studies and engineering preparations as well as very specific skills in remediation. Therefore, first implementation phase works consisted of setting up the necessary project preparation and management team, organising the co-operation with international expert teams, as well as identifying potential companies for implementation. A part of launching the implementation phase consisted of setting up the Project Implementation Office (PIO) in Belgrade that became operational in January UNEP has two in-house experts working on the implementation activities, providing expertise in environmental policies and remediation techniques. In addition, UNEP has created a project expert network covering a wide range of environmental fields. UNEP has thus established the required mechanisms to provide technical support and is able to respond rapidly and adequately to emerging technical situations and related issues. UNEP team is the focal point for fund raising and communication with international community. The PIO, which is headed by a UNOPS Programme Manager, has in its service a technical expert team whose task is to guide the projects through the design, tendering and implementation phases. Each expert is assigned a specific project portfolio. Specific tasks include finalizing designs, preparation of tender documents, assisting in short listing, tender evaluation and contract negotiating, as well as monitoring of implementation. Several stakeholder workshops have been organized with clean-up partners in FRY, in order to assure the efficient implementation of remediation projects and engage local stakeholders in identifying their environmental priorities. In connection to these workshops, Memoranda of Understanding between UNEP, FRY authorities and local partners in Novi Sad, Pancevo and Kragujevac (including Municipalities and Site Owners) have been Clean-up of Environmental Hotspots May

5 prepared to ensure the commitment of all relevant stakeholders to the objectives of the project and to clarify their respective responsibilities. Main activities during 2001 During year 2001 the activities have concentrated on project preparation implementation and management. During project preparation the exact scope of the projects has been elaborated in the technical documentation. For the complex projects detailed background information has been elaborated (incl. further sampling) allowing the preparation of general design, feasibility design and final design. The project team, supported by an extensive UNEP expert network has been in charge of the technical preparations. Designs have been prepared in good collaboration with the Site Owners/Factories who are also responsible for obtaining the required licenses and permits. In addition, for each project, project specific agreements have been prepared and signed with the Site Owners, in order to clarify the work plan, responsibilities and efficient supervision of works. Following the normal UNOPS tendering procedure, implementation of high priority projects started in year 2001 at all four hotspots, i.e. in Pancevo, Novi Sad, Kragujevac and Bor The second central project component in 2001 consisted of fund raising activities. The funds currently available (see Budget table below) do not allow implementation of all priority projects identified in the UNEP/BTF Feasibility Study (April 2000). The feasibility study report identified a total of 27 clean-up projects, with high priority projects requiring an estimated USD million. However, with the current funding available, implementation of the most urgent clean-up projects is on-going (for project specific status, see Implementation status table). Budget Donors commitment in May 2002 Country Commitment Commitment in USD (approximate value) Denmark DKK Finland FIM France FF Germany DEM Ireland Euro IEP Luxembourg Euro The Netherlands NLG Norway NOK USD Euro Sweden SKR Switzerland CHF TOTAL (The commitments are paid in several instalments during The total value in dollars is subject to changes in exchange rates) Approximately 11.2 million USD Note: In addition, some donors (including e.g. Switzerland, the Czech Republic) are directly financing clean-up projects at the hotspots that are complementary to the ongoing UNEP clean-up activities. 2 In addition to this commitment, SDC (Swiss Agency for Development and Cooperation) is directly financing ongoing monitoring projects NS.5, PA.4, PA.10, PA.14 and first phase of PA.5 Clean-up of Environmental Hotspots May

6 These central project components have been accompanied by capacity building activities as well as constant stakeholder and donor communication. The capacity building activities implemented in connection with the clean-up activities have been chosen with the view to provide support for efficient implementation of the clean-up works. In addition, the objective is to support local stakeholders in areas that strengthen their capacity to identify their environmental priorities. Consequently the seminars and training activities aim at providing tools to the local and national stakeholders to address the identified problems and to integrate environmental considerations in general into their work and development plans 3. The workshop on environmental conventions organised in Belgrade on November 2001 invited high-level officials from the Federal authorities, as well as the environmental authorities from the Republic of Serbia and the Republic of Montenegro. The workshop gathered more than 160 local participants, and thus for UNEP it was a timely opportunity to integrate the FRY more fully into the work of some of today s most important treaties on the natural environment and industrial pollution. The most recent capacity building activities include the Workshop on Sustainable Consumption Opportunities organized March 2002 in Belgrade, as well as support to the LEAP process (Local Environmental Action Plan training/seminar) with first seminar organized in Bor, March Implementation status in May 2002 of the identified high priority projects 4 Description of project Description of works Implementation status NS.1: Remediation of free phase oil on the groundwater table NS 3: Preventing oil contaminated groundwater from reaching water supply infiltration galleries NS 4: Groundwater monitoring programme inside Novi Sad Oil Refinery NS 5: Groundwater monitoring programme outside Novi Sad Oil Refinery NS 7.1: Repair of the sewerage collector outside Novi Sad Oil Refinery PA 1: Remediation of EDC pollution at Pancevo PetroHemija a) Well installation, delimitation of free-phase oil b) Pilot/in-situ test, evaluat. of remediation techniques c) Design, tendering and implementation of full-scale remedial system Construction of a hydraulic barrier at the eastern border of Novi Sad refinery Establishment of monitoring wells, sampling of groundwater, analyses and reporting on the findings. Establishment of monitoring programme outside refinery, sampling and reporting a) Construction of a temporary by-pass canal b) Collector repair works a) Installation of extraction well, rehabilitation of EDC treatment facilities, urgency action (pump and treat) b) Delimitation, evaluation of remediation techniques c) Urgency action, EDC recovery a) On-going b) On-going, scheduled to be completed during May 2002 c) Design scheduled to be completed during June, Implementation scheduled for August/September 2002 Works completed, March 02 Barrier ready to be activated whenever required. Handover to City of Novi Sad, April 15, 2002 On-going Sampling & analysis on-going, Jan Dec. 02 On-going (Impl. by SDC) 5 Sampling & analysis on-going, Nov Dec. 02 a) Completed b) Works scheduled to be completed by August 02 a) Completed b) On-going, Works scheduled to be completed in June 02 c) On-going 3 Further information on some of the capacity building activities 4 Project codes follow the numbering used in UNEP/BTF Feasibility Study (April 2000), see also Attachment 5 Swiss Agency for Development and Cooperation Clean-up of Environmental Hotspots May

7 PA 4: Groundwater Monitoring programme on HIP PetroHemija site PA 5: Remediation of mercury contamination at Pancevo PetroHemija PA 6: Repair of the Waste Water Treatment Plant at Pancevo PetroHemija PA 10: Groundwater Monitoring programme on NIS Oil Refinery site PA 11: Construction of concrete basin for oil sludge to provide additional storage facilities at Pancevo Oil Refinery PA 12: Remediation of pretreatment facilities at Pancevo Oil Refinery PA 13.1: Remediation of Pancevo wastewater canal (Phase 1: Preparation of technical documentation) PA 14: Groundwater and health monitoring outside Pancevo industrial complex KR 1: Removal of PCBcontaminated concrete at Zastava factory in Kragujevac KR 2: Cleaning of the water pits and decontamination of water in the Paint hall of Zastava KR 5: Transportation and treatment of hazardous waste B.1: Remedial actions concerning the PCB contamination at the transformer station site in Bor. Establishment of a monitoring programme for groundwater at the petrochemical plant a) Removal of Hgcontaminated soil, safe temporary disposal b) Delimitation, evaluating remediation techniques a) Repair, exchange and installation of new equipment b.1) Emptying and cleaning of bio-filter b.2) Rehabilitation of bio-filter Establishment of monitoring programme for groundwater at NIS Oil Refinery Pancevo Construction of a concrete basin of approximately 1700m3 a) Remediation of pretreatment unit (PA.12.1) b) Remediation of connection pipeline to waste-water treatment plant (PA.12.2) a) Field investigations and waste characterization b) Preparation of general design and final design, including feasibility study for works, treatment or/and disposal Establishment/up-grading of monitoring programme in the area south of Pancevo (groundwater, vegetation, urine) sampling, reporting Removal of PCBcontaminated concrete, adding a new concrete layer, covering with epoxy and antistatic material Construction of water treatment plant, with decontamination of water in the pits and removal of contaminated sludge and material from pits. UN-approved packing, transport abroad, treatment and disposal of hazardous waste Assessing feasible options, and, if required, implementing remediation measures to ensure sufficient environmental quality of site On-going (Impl. by SDC) Sampling and analysis ongoing, Oct. 01- Dec. 02 a) Completed (Impl. by SDC) b) On-going, feasibility study, risk assessment expected by early 2002 a) On-going b.1) Completed b.2) On-going On-going (Impl. by SDC) Sampling and analysis ongoing, Nov. 01- Dec. 02 On-going, Works scheduled to be completed by June 02 a) Design on-going b) Design on-going. Works expected to start in May/June 02 a) Completed b) On-going On-going (Impl. by SDC) Sampling and analysis ongoing, March 01- Dec. 02 Substantially completed in April Outstanding works scheduled to be completed in May 02 Completed. Certificate of Final completion issued in April On-going (packing completed) Transport & treatment expected to start in July 2002 after completion of Notification procedure regarding KR.1 and KR2 HW Completed (No remedial action recommended at defined site). Clean-up of Environmental Hotspots May

8 Priority activities for 2002 During year 2002 the project activities of UNEP Cleanup of Environmental Hotspots will focus on the following key areas: Firstly, the required technical preparations should be completed for all high priority projects. Following the tendering phase (including identification of suitable companies, short listing and evaluation of companies, contracting), implementation of chosen remediation works will be executed. The high priority projects should be implemented (managed, supervised, reviewed) and completed by the end of 2002 reaching the identified goals of risk reduction, environmental remediation and providing a positive input to sustainable development at the four hotspots. Secondly, the fund rasing activities will continue, with the objective of allowing remediation of the Pancevo wastewater canal (PA.13.2) and potential further remediation of EDC contamination (PA.2-4) to be addressed. The remediation of Pancevo wastewater canal must be preceded by remediation of wastewater treatment facilities (see Implementation status table, on-going projects PA.6 and PA.12) including a commitment by local as well as Federal and Republican environmental stakeholders to prepare a wastewater treatment strategy for the industrial complex as well as to identify a location for a safe disposal site. In addition, potential further remediation of mercury contamination may increase the need for funding (PA.5-second phase). Concerning Novi Sad the further fund raising activities will continue, with the objective of allowing groundwater remediation (incl. NS.1 for status see table above), repair of the sewerage system and removal/remediation of contaminated soil (NS.6, NS.7.2). Thirdly, in addition to the actual clean-up operations, the UNEP clean-up project continues during year 2002 to support local and national stakeholders on relevant environmental issues through workshops and training activities. The topics include environmental mitigation measures, hazardous waste management, local environmental management (including local environmental action plans), environmental management systems, cleaner production and sustainable consumption, foreign direct investments and environment as well as regional and international environmental cooperation. In order to ensure efficient Implementation of the Clean-up Programme in 2002, the following issues are of key importance: Reporting and communicating with local partners to provide them with accurate and timely information about the status and scope of projects. Ensuring that all relevant information is available to the Clean-up Programme from the clean-up partners in order to plan and implement the projects in an efficient and costeffective manner Continuous cooperation with key authorities in the FRY and Serbian Government with support to strengthening of the environmental authorities. Efficient coordination of the UNEP clean-up activities with other national and/or international partners interested in carrying out environmental risk reduction and remediation measures at the hotspots. 4. Prioritisation Regarding the great number of problems identified during the UNEP/BTF Feasibility Study, April 2000 (see project list attached) at the four hot spots, and as resources for the Clean-up of Environmental Hotspots May

9 implementation of mitigation measures are scarce, a prioritisation process has been undertaken to define the most urgent projects. The following criteria have been used for an overall assessment and prioritisation of the different impact mitigation measures: (a) (b) (c) (d) (e) Urgency of impact mitigation Relevance for a large number of people and/or a large area Relevance for humans and/or the environment over a long period of time Environmental return Sustainability Due to the multiple interconnections of several projects (some being preconditions for other projects) a step-wise approach on some of the most severe and extensive projects has been adopted. This prioritisation process will continue, taking into account latest developments at the sites as well as the availability of remediation resources. However, it must be noted, that these criteria cannot have the same weight in the decision process. Environmental returns cannot be regarded as the main criterion, if there is an acute health risk for a great number of people. In addition it is important to bear in mind that within its mandate UNEP only addresses war-related and humanitarian problems. Sometimes the most sustainable solutions are not outlined or recommended, as they are far too expensive at present. Clean-up of Environmental Hotspots May

10 Project list of the FEASIBILITY STUDY (April 2000) on the environmental projects tackling the humanitarian risks caused by the Kosovo Conflict at the environmental hot spots : Novi Sad, Pancevo, Bor and Kragujevac UNEP/BTF International Environment House 1219 Geneva Tel. (41 22) Fax (41 22) Clean-up of Environmental Hotspots 9

11 A. Novi Sad Objective Partner organisations Protection of groundwater, particularly drinking water Preventing pollution to reach Danube system Reducing health risk to refinery workers Public Water Works Authority Municipality of Novi Sad Public Health Institute, Novi Sad Institute Jaroslav Cerni NIS Oil Refinery Issue Description of project No Duration Priority Groundwater contamination (on site) I) Remediation of free phase oil on the groundwater table II) Preventing oil contaminated groundwater at the oil refinery to reach the Danube river and thereby the infiltration galleries III) Preventing oil contaminated groundwater at the oil refinery to reach the infiltration galleries IV) Groundwater monitoring programme on the oil refinery NS.1 NS.2 NS.3 NS.4 30 months 30 months 30 months 30 months Groundwater contamination (off site) Groundwater monitoring programme outside the refinery NS.5 2 years 1 Soil contamination Remediation of highly contaminated soil NS.6 2 years * detailed mapping of soil contamination * excavation of seriously contaminated soil * soil remediation * refilling of excavated areas Alt I: High priority areas addressed Alt II: High and medium priority areas addressed 1 2 Leaking oil sewerage system Repair of the pipeline system for oil-wastewater *preparation and planning * cleaning and inspection of pipelines * repair and replacement of pipelines NS.7 6 months Clean-up of Environmental Hotspots 10

12 B. Pancevo Objective Partner organisations Protection of Danube system from critical pollution Reducing health risk to factory workers Protection of groundwater, particularly drinking water HIP Petrochemical Plant NIS Oil Refinery Public Health Institute Municipality of Pancevo Petrochemical plant Issue Description of project No Duration Priority EDC-contamination (of soil and groundwater) Groundwater contamination (on site) Mercury contamination (of soil and groundwater) Wastewater treatment Possible leakage from sludge dump with toxic waste I)Delimitation of the pollution and evaluating remediation techniques II) Remediation of EDC contaminated soil III) Remediation of EDC contaminated groundwater Groundwater monitoring programme on the petrochemical plant Remediation of highly contaminated soil I) Delimitation of the pollution and evaluating suitable remediation techniques for remaining contaminated areas II) Remediation of contaminated soil Cleaning and repair of the wastewater treatment plant * cleaning and repair of concrete structures * cleaning and revitalisation of the biological trickling filter * repair and replacement of process equipment I) Assessment of safety of the sludge dump and recommendations for action II) Monitoring programme PA.1 PA.2 PA.3 3 months 30 months 30 months PA.4 30 months 1 PA months 1 PA months 1 PA.7 6 months 2 years 2 Clean-up of Environmental Hotspots 11

13 Refinery Issue Description of project No Duration Priority Soil contamination Groundwater contamination (on site) Ponded oil and oil derivatives at the soil surface Wastewater pre-treatment and leaking sewerage system Remediation of highly contaminated soil * detailed mapping of soil contamination * excavation of seriously contaminated soil * soil remediation * refilling of excavated areas Alt I: High priority areas addressed Alt II: High and medium priority areas addressed Alt III: High, medium and low priority areas addressed I) Remediation of free phase oil on the groundwater table II) Groundwater monitoring programme on the oil refinery PA.8 2 years PA.9 30 months PA months Construction of a concrete basin for oil sludge PA weeks 1 Cleaning and repair of sewer-pipelines and oil-separators * cleaning and inspection of pipelines * repair and replacement of pipelines * cleaning and repair of-oil separators PA months 1 Wastewater canal Issue Description of project No Duration Priority Highly contaminated canal, open to the Danube Preventing the release of EDC and sediment-associated pollutants into the Danube river system. Closing of the canal with temporary dam, dredging of sediment and disposal of waste at secured waste disposal site (incl. construction of hazardous waste disposal site) or on-site treatment of sediment PA months 1-2 Groundwater contamination downstream from Pancevo industrial complex Issue Description of project No Duration Priority Risk for contamination of potable water supply Groundwater monitoring programme outside the industrial complex PA.14 2 years 1 Clean-up of Environmental Hotspots 12

14 C. Bor Objective Partner organisations Reducing health risks for factory workers Preventing immediate risk from storage of hazardous waste RTB Coppar Mining and Refining Company Municipality of Bor Issue Description of project No Duration Priority PCB oil leakages and disposal of contaminated waste SO2-emissions due to electricity shortage Remedial actions concerning the PCB and dioxin contamination at the transformer station I) Removal and disposal of damaged capacitors and highly contaminated soil II) Remediation of contaminated concrete floor III) Covering of the dump sites with a protective layer SO2-emissions have been reduced by local efforts to pre-conflict levels -> NO BTF-project proposal. B.1 10 weeks 1-2 Clean-up of Environmental Hotspots 13

15 D. Kragujevac Objective Partner organisations Reducing health risks for factory workers Preventing pollution to the Lepenica river system Preventing immediate risk from storage of hazardous waste Zastava Automobili Public Health Institute The Faculty of Science, Institute of Chemistry and Institute of Biology Issue Description of project No Duration Priority PCB-contaminated floor in the paint Removal of PCB-contaminated concrete, adding a new layer of concrete KR weeks 1 hall PCB-contaminated water/ sediment in pits in the paint hall Cleaning of the water pits and decontamination of the water KR.2 20 weeks 1 PCB-leakage with risk of Survey and monitoring on the extent of contamination of soils, surface and KR contamination to river Lepenica and agricultural fields groundwater in the surroundings of Zastava car factory (co-ordinated with existing SDR programme) months PCB-contaminated floor at the power Removal of PCB-contaminated concrete and sand, adding a new layer of KR.4 6 weeks 2 station concrete PCB and PCDD/F-containing waste Transportation and treatment of PCB and PCDD/F-containing waste abroad KR months 1 Clean-up of Environmental Hotspots 14

16 Project Office Address: Cara Dušana 266 Zemun/Belgrade Contact: Roeland KORTAS Programme Manager Tel /Fax ( ) ;