World Bank Environmental Activities in Europe and Central Asia

Transcription

1 Overview Public Disclosure Authorized Public Disclosure Authorized World Bank Environmental Activities in Europe and Central Asia The Europe and Central Asia (ECA) Region comprises 28 countries, with all but Turkey in various stages of transition from centrally planned economies. Eight countries shortly will be joining the EU, while others still have a large unfinished reform agenda that encompasses profound and far reaching economic and social changes. Region-wide, the number of people living in poverty 1 is about one in five, or roughly 90 million, with rates varying significantly, from below 10 percent in countries in Central Europe to 68 percent in Tajikistan. Civil conflicts, natural disasters, refugees and ethnic problems are major complicating factors in Central Asia, the Balkans, and the Caucasus. Nonetheless, in most of the region, growth has resumed and a marketoriented framework has taken hold. The economic recovery is set to continue into 2003 and beyond, making the region one of the most economically dynamic in the world. Public Disclosure Authorized Public Disclosure Authorized The transformation from plan to market has played a key role in the past twelve years and has improved environmental management over the past decade. Progress has been made in tackling the legacy of environmental pollution created by the inefficiencies of the output-focused command economy that existed in the Soviet Union. Where substantial progress in industrial restructuring and realigning the public and private sectors to a market-based economy has occurred, pollution intensity has been reduced as industry modernizes, incorporates abatement techniques, and shifts to less-polluting sectors. Reforms have also resulted in the development of new ways to better safeguard the environment. Such reforms include the use of incentives to promote more efficient use of energy, water and sewerage services to broader policy changes such as freer trade, reducing agricultural subsidies, and promoting land reform and property rights since people take more care to ensure the sustainability of their own assets. Thus, in many countries in the region, economic growth already is accompanied by a heightened recognition that environmental considerations are critical to the 1 Poverty is defined as those with incomes less than $2 per day. 1

2 health and prosperity of people. Yet some serious environmental problems persist and concerted action is needed to ensure that the economic recovery now underway does not lead to a revival of the old environmental threats. Regional Differences The ECA region represents 17% of the world s land area, 8 % of the world population (about 500 million people, with 35 percent living in rural areas), 19% of the world s arable land, 23% of the world s forests and 12% of renewable freshwater resources. Protecting the environment depends to a large extent on the existence of strong legal and regulatory institutions, and management capacity. As such, one way to highlight regional environmental differences is by comparing the strength of institutions across countries. Based on this table, countries in ECA can be grouped into the following sub-regions in terms of their environmental performance: EU Accession Countries At the forefront of reform and change within the region are the eight EU accession countries (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia), which have finalized negotiations with respect to the EU Environmental Acquis. These countries are working hard to harmonize their legal and regulatory framework with those of EU environmental directives. New entrants will need help paying for the expensive environmental investments that the Accession process requires. Indeed, meeting these directives will cost the EU candidates, together with Bulgaria and Romania, about $100 billion over twenty years. South Eastern Europe and the Balkans After the EU accession countries, South Eastern European countries are performing the best in terms of environmental management, with Croatia in the forefront of reform. Areas for improvement include: strengthening capacity to enforce regulations and reaching agreement among government officials on the importance and urgency of environmental issues. Belarus, Moldova, Russia and Ukraine The Western CIS countries and Russia have made significant improvements in environmental management but there is still substantial scope for improvement and some danger of backsliding. Environmental laws and monitoring systems are in place and Ministries of Environment function fairly well. Enforcement of laws is inconsistent however, and there is a need for increased transparency and more meaningful public and civil society involvement in the environmental decision-making process. Greater cooperation between environmental authorities and other core ministries whose actions directly impact the environment (such as energy, water and transport) would also be useful. Central Asia and the Caucasus Central Asian countries, especially Tajikistan and Turkmenistan, rank the lowest in terms of environmental management capacity. These countries are the slower reformers and some of the poorest in the ECA region. A major effort will be needed to achieve the institutional reforms necessary for environmental sustainability. Areas for action include: improved monitoring and collection of environmental data and its use for decision-making; strengthening the Ministry of Environment s capacity for policy design and its ability to influence and work with other Ministries; setting up a modern, cost effective regulatory framework that relies on market incentives to promote compliance; facilitating the financing of environmental investments from 2

3 public and private sources and from financial institutions; and improving public access to information, including greater participation in key environmental decisions. The countries in the Caucasus, the Kyrgyz Republic and Uzbekistan are somewhat more advanced. Reasonable monitoring and many laws are in place or under discussion, but unenforceable. The environmental ministries tend to have professional staff but modest budgets. Key Environmental Challenges Most countries in ECA face common environmental issues, with some important sub-regional differences, such as in Central Asia, an arid region where the availability of water to support energy, irrigation and drinking needs remains a serious problem. Other environmental problems unique to certain countries include: war-related pollution hotspots in the Balkans and the high costs of meeting EU environmental directives for the accession countries. Globally, Russia particularly stands out: it is the world s third largest emitter of carbon dioxide and has 22% of the world s forests. The following are some of the most pressing environmental challenges facing countries ECA-wide: Access to high quality water supply and sanitation, particularly in rural areas ECA countries show high (91%) access to sources of improved water supply according to 2000 official data (World Development Indicators), comparable to other lower and middle income countries, and near the Millennium Development target indicator of 93%. However, there is a serious issue of water quality, which constitutes a major threat to health. Rural water supply is of particular concern. In Moldova s countryside, for example, 60% of samples do not meet water quality standards. For non-piped water, the range is 25% in Ukraine to 65% for Moldova. Moreover, it is poor people who most often lack access to adequate water supply and sanitation. For example, the lowest quintile in Kazakhstan, the Kyrgyz Republic and Uzbekistan, have virtually no access to piped water or flush toilets. In urban areas, sustainability of access is endangered by the deteriorating financial condition of municipal water and wastewater utilities, particularly in secondary towns. Energy efficiency Despite an increase of 21% in energy efficiency since 1992, the ECA region remains the least energy efficient in the world in terms of GDP per unit of energy used. An increase of 58% in efficiency is needed if the ECA region is to reach the same energy efficiency as other countries at similar levels of development in terms of PPP GDP per kg of oil equivalent. Russia and Kazakhstan in particular have tremendous scope for improving efficiency. Carbon dioxide and other emissions Carbon dioxide emissions in ECA represent 13% of global emissions although they have declined by 28% since Compared to the rest of the world, however, emissions are still high. A decrease of 174% is needed if the ECA region is to reach the same level of CO 2 per capita emissions as other countries at a similar level of development. Reductions in fossil fuel use, the main source of CO 2, and improvements in energy efficiency would also help to reduce other air pollutants such as SO 2, NO x, Total Suspended Particles (TSPs) and heavy metals, which pose a threat to health in some urban areas in ECA. 3

4 Hazardous and industrial pollution hotspots Environmental challenges from past liabilities remain an issue in highly polluting industries such as chemicals, petrochemicals, and metallurgy in many ECA countries. Potential oil spills and gas leaks from poorly maintained pipelines and construction of new lines, particularly in Russia and energy rich Azerbaijan and Kazakhstan, are also problematic. Sustainable forest management At 40%, ECA has more forested area than the world average of 30%. Furthermore, forest areas are increasing in absolute numbers in every country except Albania, according to official statistics. However, the extent of continuous old growth forests and the broad shade provided by big trees is declining. Illegal logging is also problematic for some countries in the region and the deposition of nitrogen acids and heavy metals exceeds critical levels in some areas. Biodiversity ECA contains nearly 100 distinct eco-regions, on the order of 15,000 vascular plant species and 1,600 vertebrate animal species. Globally significant ecosystems include South East Turkey, the Mediterranean and the Black Sea, the Volga and Danube delta wetlands, the Caucasus, Carpathian, Balkan, Altai and Tien Shen mountain ecosystems, the Karst ecosystems of the Northern Adriatic, the Lake Baikal area and the Russian Far East. Many of the ECA countries have a strong tradition of protected area management, and some have also incorporated the concept of landscape conservation into broader management of land, water and forest resources. However, the first years of transition saw a deterioration in the institutions and financing mechanisms for conservation management. Increased poverty also led to pressure on natural resources, particularly from poaching and illegal logging. Since 1990, it is estimated that Tajikistan and Armenia have both lost 10% of their forest cover and the population of the endangered Siberian tiger fell to about 200, one third of the level in the 1980s. Regional Seas The management of regional seas and rivers is an important challenge for virtually all countries in the region. In addition to the drying up of a large part of the Aral Sea, the Caspian Sea is threatened by pollution from the Volga and other rivers, pollution and accidental spills from the oil industry, uncontrolled poaching of sturgeon and concerns over the impact of the alien species Mnemiopsis leidyi. Regional agreements on management of the Caspian and the Aral Seas remain difficult, making Bank-assisted programs hard to implement. The Black Sea has experienced catastrophic decline in the past thirty years due to increased loads of nutrients from agricultural run-off and discharges of raw sewage and solid waste from cities, heavy metals and oil pollution. The experience of the Baltic Sea, where similar problems with pollution and oil spills are being tackled by regional cooperation, shows potential for development. Strategic Priorities and Actions ECA s Environment Strategy is shaped by the region s broader priorities to: facilitate EU accession for the fast-reforming countries of Central and Eastern Europe; reverse poverty and revive growth in the CIS; help bring peace and prosperity in the Balkans; and foster cooperation on regional and global environment issues. The Bank s regional environmental strategy focuses on addressing existing environmental issues and improving environmental protection to prevent future pollution and promote sustainable use of resources. The ultimate vision of the strategy is a region where, through better environmental 4

5 management, quality of life is improved, quality of growth is ensured and quality of the global commons is safeguarded. As part of its evolving approach, and in fulfillment of this strategy, the Bank firmly believes in using the seventh United Nations Millennium Development Goal on environmental sustainability as a framework to measure progress made on achieving its own environmental strategy for the ECA region. The environmental targets and indicators for MDG 7 are shown in Chart 1. To use the environment MDG to gauge results however, the Bank will help ECA countries collect high quality baseline data and work with partners to better define the environment MDG indicators. Chart 1: The Seventh Millennium Development Goal for Environmental Sustainability Targets and Indicators Target Indicators I. Halve, by 2015, the proportion of people without sustainable access to safe drinking water and basic sanitation access to basic sanitation II. Integrate the principles of sustainable development into country policies and programs and reverse the losses of environmental resources III. By 2020 to have achieved a significant improvement in the lives of at least 100 million slum dwellers Bank Lending 1. Proportion of population with sustainable access to an improved water source 2. Proportion of urban population with 3. Proportion of land area covered by forest 4. Ratio of area protected to maintain biological diversity to surface area 5. Energy use (kg oil equivalent) per $1 GDP (PPP) 6. Carbon dioxide emissions (per capita) 7. Proportion of population using solid fuels 8. Proportion of households with access to secure tenure As of May 2003, World Bank environmental lending for projects under implementation in the ECA region (excluding funds from the Global Environment Facility or GEF, which has its Secretariat housed in the WB) totaled US$ 1.7 billion. As illustrated in Chart 2, most lending has been in three categories: pollution management (29%), land management (24%) and water resources management (23%). Projects in the pipeline (2004 to 2006) currently total US$1.4 million. In addition to the above figures, current GEF lending for projects under implementation totals US$245.6 million. GEF funding has assisted ECA countries cease production of ozone-depleting substances, establish geothermal projects, and undertake biodiversity projects. GEF pipeline lending is currently US$138 million. There are also a number of planned Prototype Carbon Fund projects in ECA aimed at helping countries to take advantage of carbon trading mechanisms. 5

6 Chart 2 Thematic Breakdown of Environmental Lending for Projects Under Implementation (Total = US$ 1.7 billion, excluding GEF) Water Resources Mngt 23% Other Env & NRM 2% Biodiversity 2% Climate Change 12% Env Policy/Institutions 8% Pollution Mngt & Env Health 29% Land Mngt 24% Results on the Ground Following are examples of environmental advances in ECA due in part to joint actions taken by governments, in partnership with the World Bank, and in many instances with other donors. Investments in water supply infrastructure are benefiting the population of transition countries in ECA. Bank projects in the ECA transition countries under implementation have about 12 million direct beneficiaries. About 2.5 million additional people will directly benefit through the improved water services supported by Bank projects currently under preparation. Rural communities are becoming owners of their water supply systems and making decisions on their water services. 150 communities in rural areas of Kyrgyz Republic are taking responsibility for their water supply systems that will be rehabilitated with Bank support after a comprehensive reform of the rural water supply sector. About 300,000 beneficiaries will own, operate and maintain the community water systems. Water supply has served as a mechanism for post-conflict reconciliation. A post-conflict Bank operation in Bosnia-Herzegovina not only restored water supply services to over 800,000 people in war afflicted areas, but also reintegrated ethnically divided utilities that are now working as professional commercial enterprises. Safe drinking water has been brought to rural areas in Uzbekistan. Some 2 million rural people in the western part of the country (Karakalpakstan and Khorezm) now have safe and reliable water thanks to a US$75 million loan that financed additional trunkmains and household connections. The management of over 1 million hectares of land is being improved through ongoing forestry and biodiversity projects in the ECA region. 6

7 The Turkey Eastern Anatolia Watershed Rehabilitation Project, completed in 2002, resulted in the rehabilitation of 88 micro-catchments in 11 provinces, planting of 27,000 ha of trees for soil conservation purposes, restoration of about 20,000 ha of degraded rangeland and forest land with vegetation cover to support sustainable livestock production, development of over 14,000 ha of rainfed horticulture; and creation of over 12,000 hectares of small scale irrigation, reducing water conveyance losses. The Danube Delta Biodiversity Conservation Project has been successful in strengthening and enabling local institutions to monitor and manage protected areas effectively, by working with local community groups to ensure a sustainable use of resources and restore some wetlands to their original condition. Over 7,000 ha of abandoned polders have been ecologically restored, which is internationally recognized as the largest area ever successfully restored to its original condition. Improvements in farming practices achieved by the Poland Rural Environmental Protection project have led to less water pollution from manure. A total of 950 small and medium-sized sustainable farms were equipped with tanks for proper storage and handling of manure. Nutrient Management Plans were developed for 17,000 hectares of farmland, in addition to 370 Farm Management Plans. Progress is being made to clean up oil contaminated sites in Azerbaijan using bioremediation technology. The Urgent Environmental Investment Project has also assisted the Government to reorganize its environmental management system, and a number of regulations have been piloted to test institutional capacity. The project will also cleanup a site contaminated with mercury and address the problem of declining sturgeon stocks by constructing a new fingerling hatchery. Aral Sea. The GEF Aral Sea Water and Environment Project finances investments in wetland restoration, dam safety and water flow monitoring and the preparation of National and Regional Water and Salt Management Strategies. The studies are nearly completed, which will provide the technical and analytical basis for optimizing water, salt and energy management in the Aral Sea Basin. Pilot projects in dam and reservoir safety have been completed and work has begun on a study of how the Syr Darya river's cascades can be operated as an integrated system to minimize flood risks. Equipment and training have been given to the Kyrgyz Republic for carrying out hydrographic surveys and estimating sedimentation rates for reservoirs. Seventeen new transboundary water monitoring stations are operational and others are nearing completion. Progress has been made in strengthening environmental institutions. A World Bank administered Institutional Development Fund grant in Albania supported institutional capacity building for the Butrint National Park, a recently designated UNESCO world heritage site, containing one of the Mediterranean coast s greatest classical archeological and natural environmental sites. Butrint is now one of the country s largest tourist destinations. 7

8 Analytical and Advisory Activities The aim of analytical and advisory services is to support policy reform dialogue on environmental issues in ECA and to ensure the development of sound sector strategies, and the formulation and implementation of effective lending programs. Over the past year, the Bank has completed a number of important reports analyzing environmental issues in the ECA region, including: A Review of Environmental Assessment Systems: Russian and International Experience Belarus Environment Sector Strategy Coping with the Cold: Heating Strategies for Eastern Europe and Central Asia s Urban Poor Environmental Impact Assessment Systems in ECA Countries Irrigation in Central Asia: Social, Economic and Environmental Considerations Meeting the Environment Millennium Development Goal in Europe and Central Asia Meeting the EU Environmental Acquis: Cost Estimates for Accession Candidates Serbia and Montenegro Country Environmental Analysis Ukraine s Road to Effective Environmental Management: An Environmental Public Expenditure Review Water Resources Strategy for the Europe and Central Asia Region Biodiversity Strategy for the Europe and Central Asia Region In addition to preparing reports, the Bank has also been taking the initiative to ensure that environmental issues receive greater consideration during PRSP and CAS discussions. Efforts will continue in this area since environmental issues are not always given adequate attention when designing CAS and PRSP documents. Partners Various development partners, including International Financial Institutions (IFIs), bilateral donors, United Nations bodies and international donors are involved in supporting environmental activities in the ECA region. The World Bank Group aims to maintain strong relationships with its partners to ensure the exchange of knowledge and complementarity of its lending and analytical activities. Key partners include: Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), Department for International Development (UK), Nordic Development Fund, Governments of Switzerland, Canada, France, Germany, Italy, Japan, Netherlands, Russia, Sweden, Turkey, USA, European Commission, International Monetary Fund (IMF), Global Environmental Facility (GEF), Organization for Economic Cooperation and Development (OECD), Organization for Security and Cooperation in Europe (OSCE), United Nations Development Program (UNDP), United Nations Economic Commission for Europe (UNECE), United Nations Environment Program (UNEP), United Nations Educational, Scientific and Cultural Organization (UNESCO), World Health Organization (WHO), WWF Forest Alliance, Regional Environmental Center (REC) in Hungary. Project Listing Attached is a list of the Bank s completed, ongoing and pipeline ECA projects that have environmental benefits. 8

9 ANNEX 1 World Bank Environmental Projects in Europe and Central Asia (As of May 2003, millions of US$) Country Name FY Status Loan Amt ENV Amt ENV Total % Albania Agriculture Sector Adjustment Loan (ASAL) 1993 Completed Albania Durres Water Supply Rehabilitation 1994 Completed Albania Structural Adjustment Credit (SAC) 1999 Completed Total Compl Albania Forestry 1996 Implementation Albania Land Development 1998 Implementation Albania Irrigation And Drainage II 1999 Implementation Albania Fishery Development 2002 Implementation Albania Power Sector Rehabilitation And Restructuring 2002 Implementation Total Impl Albania Environment Cleanup 2004 Pipeline Albania Integrated Water / Ecosystem Management (GEF) 2004 Pipeline GEF Albania Karavastava 2004 Pipeline 1 GEF Albania Butrint Biodiversity 2004 Pipeline 1 GEF Albania Irrigation Pipeline Albania Natural Resource Management 2006 Pipeline Total Pipeline Total Aral Sea Aral Sea Water & Environment Management (GEF) 1998 Implementation GEF Total Armenia Irrigation Rehabilitation 1995 Completed Armenia Power Maintenance 1995 Completed Armenia Structural Adjustment Credit (SAC) Completed Total Comp Armenia Municipal Development 1998 Implementation Armenia Title Registration 1999 Implementation Armenia Irrigation Dam Safety 1999 Implementation Armenia Natural Resource Management 2002 Implementation Armenia Natural Resource Management (GEF) 2002 Implementation GEF Total Imple Armenia Municipal Water And Waste Water 2005 Pipeline Armenia Geothermal (GEF) 2006 Pipeline GEF Armenia Urban Heat 2007 Pipeline Total Pipeline Total Azerbaijan Farm Privatization 1997 Implementation Azerbaijan Urgent Environment Investment 1998 Implementation Azerbaijan Agriculture Development And Credit 1999 Implementation Azerbaijan Irrigation And Drainage Rehabilitation 2000 Implementation Total Imple Azerbaijan Irrigation Distribution System & Management Improvement 2003 Pipeline Azerbaijan Shah-Dag Rural Environment 2005 Pipeline Azerbaijan Shah Dag Rural Environment (GEF) 2006 Pipeline GEF Total Pipeline Total Belarus Forest Biodiversity (GEF) 1993 Completed GEF Belarus Forest Development 1994 Completed Belarus Ozone Depleting Substance (ODS) Phaseout (GEF) 1997 Completed GEF Total Comp Belarus Social Infrastructure Retrofit 2001 Implementation Belarus UNFCCC National Communication (GEF Enabling) 2001 Implementation GEF Total Imple Belarus Post Chernobyl Recovery 2005 Pipeline Total Pipeline Total Bosnia-Herzegovina Water, Sanitation & Urgent Works 1996 Completed Bosnia-Herzegovina Emergency District Heat Rehabilitation 1996 Completed Bosnia-Herzegovina Electric Power Reconstruction Completed Bosnia-Herzegovina Reconstruction Assistance - Republic Srpska 1998 Completed Bosnia-Herzegovina Emergency Gas Rehabilitation 1998 Completed

10 Bosnia-Herzegovina Forestry 1998 Completed Total Comp Bosnia-Herzegovina Solid Waste Management 2002 Implementation Total Imple Bosnia-Herzegovina Forest Development and Conservation TA 2003 Pipeline Bosnia-Herzegovina Bosnia Social development (Water Quality/Ecosystem) 2006 Pipeline TBD TBD GEF Total Pipeline Total Bulgaria Energy I 1993 Completed Bulgaria Environment Remediation Pilot 1998 Completed Bulgaria Agriculature Sector Adjustment Loan (ASAL) I 1999 Completed Bulgaria Financial Enterprise Sectoral Adjustment Loan (FESAL) Completed Bulgaria Agriculature Sector Adjustment Loan (ASAL) Completed Total Comp Bulgaria Environment Private Support Structural Adjustment Loan 2000 Implementation Bulgaria Registry and Cadastre 2001 Implementation Bulgaria Wetland Restoration (GEF) 2002 Implementation GEF Total Imple Bulgaria Pomoriisko Lake Conservation (GEF Medium Size) 2004 Pipeline GEF Bulgaria Forest Development (GEF) 2004 Pipeline GEF Bulgaria Forest Development 2005 Pipeline Total Pipeline Total Central Asia Central Asia Biodiversity (GEF) 1999 Implementation GEF Total Croatia Emergency Reconstruction 1994 Completed Croatia Highway Sector 1995 Completed Total Comple Croatia Coastal Forest Reconstruction 1997 Implementation Croatia Municipal Environment Infrastructure 1998 Implementation Croatia East Slavonia Reconstruction 1998 Implementation Croatia Kopacki Rit Wetlands (GEF Medium Size) 1999 Implementation GEF Croatia Karst Ecosystem Conservation (GEF) 2002 Implementation GEF Croatia Real Property Registry & Cadastre 2003 Implementation Total Imple Croatia Energy Efficiency (GEF) 2003 Pipeline GEF Croatia Energy Efficiency 2004 Pipeline Croatia Renewable Energy Restructuring (GEF) 2004 Pipeline GEF Croatia Coastal Cities Pollution Control 2005 Pipeline Croatia District Heat 2007 Pipeline Total Pipeline Total Cyprus Industrial Finance Restructure 1991 Completed Cyprus South East Coast Sewerage & Drainage 1992 Completed Total Comple Total Czech Republic Power & Environment Improvement 1992 Completed Czech Republic Biodiversity (GEF) 1994 Completed GEF Czech Republic ODS Phaseout (GEF) 1995 Completed GEF Czech Republic GHG - Kyjov Waste (GEF) 1999 Completed GEF Total Comple Total Estonia District Heat Rehabilitation 1994 Completed Estonia Haapsalu/Matsalu Bay 1995 Completed Estonia Agriculture 1996 Completed Total Comple Total Europe and Central Asia Lake Ohrid Conservation Albania/FYR Macedonia (GEF) 1998 Implementation GEF Europe and Central Asia Baltic Sea Region - Phase 1 (GEF) 2003 Implementation GEF Total Imple Total Georgia Municipal Infrastructure Rehabilitation 1995 Completed Georgia Oil Institution Building 1997 Completed Georgia Municipal Development 1998 Completed Georgia Structural Adjustment Credit Completed Georgia Energy Sectoral Adjustment Credit 1999 Completed

11 Total Comple Georgia Integrated Coastal Management 1999 Implementation Georgia Integrated Coastal Management (GEF) 1999 Implementation GEF Georgia Agriculture Research Extension and Training (GEF) 2000 Implementation GEF Georgia Energy Transit Institution Building 2001 Implementation Georgia Irrigation Drainage and Rehabilitation 2001 Implementation Georgia Protected Areas Development (GEF) 2001 Implementation GEF Georgia Forestry 2003 Implementation Total Imple Georgia Tbilisi Water Supply 2004 Pipeline Total Pipeline Total Hungary Energy Environment 1994 Completed Hungary Budapest Urban Transport 1995 Completed Hungary ODS Phaseout (GEF) 1996 Completed GEF Total Comple Hungary Municipal Wastewater 2000 Implementation Total Imple Hungary Small Hydro Power (GEF Medium Size) 2003 Pipeline GEF Hungary Black Sea Nutrient Reduction (GEF) 2004 Pipeline GEF Total Pipeline Total Kazakhstan Petroleum Technical Assistance 1994 Completed Kazakhstan Real Estate Registry Pilot 1997 Completed Total Comple Kazakhstan Irrigation & Drainage 1996 Implementation Kazakhstan Uzen Oil Field Rehabilitation 1997 Implementation Kazakhstan Atyrau Pilot Water 1999 Implementation Kazakhstan Syr Darya Control/Northern Aral Sea 2001 Implementation Total Imple Kazakhstan Nura River Cleanup 2003 Pipeline Kazakhstan Drylands Management Project (GEF) 2003 Pipeline GEF Kazakhstan North East Kazakh Water Supply and Sanitation (Vodocanal) 2004 Pipeline Kazakhstan Agriculture Support Services 2005 Pipeline Kazakhstan UST-Kamenogorsk Environment Remediation 2006 Pipeline Kazakhstan Urban Water Supply Pipeline Kazakhstan Forest Rehabilitation 2007 Pipeline Total Pipeline Total Kyrgyz Republic Kyrgyz - Telecommunications Reform 1994 Completed Kyrgyz Republic APEAC 1995 Completed Kyrgyz Republic Sheep & Wool Improvement 1996 Completed Total Comple Kyrgyz Republic Power & Districti Heat 1996 Implementation Kyrgyz Republic Irrigation Rehabilitation 1998 Implementation Kyrgyz Republic Agricultural Support Services 1998 Implementation Kyrgyz Republic Flood Emergency 1999 Implementation Kyrgyz Republic Land Registration 2000 Implementation Kyrgyz Republic Power Supplement 1998 Pipeline Total Pipeline Total Latvia Jelgava District Heat 1995 Completed Latvia Liepaja Environment 1995 Completed Latvia Municipal Services Development 1996 Completed Total Comple Latvia Solid Waste Management 1998 Implementation Latvia Solid Waste Management (GEF) 1998 Implementation GEF Latvia Education Improvmt 1999 Implementation Latvia Liepaja Soid Waste Management 2001 Implementation Total Imple Total Lithuania Klaipeda Environment 1995 Completed Lithuania Klaipeda Geothermal 1996 Completed Lithuania Siauliai Environment 1996 Completed Lithuania Klaipeda Geothermal (GEF) 1996 Completed GEF

12 Lithuania Energy Efficiency/Housing 1997 Completed Lithuania Vilnius District Heat 2002 Completed Total Comple Lithuania Municipal Development 1999 Implementation Lithuania Klaipeda Port 2000 Implementation Lithuania Education Imprvement 2002 Implementation Total Imple Lithuania Vilnius Heat Demand Management (GEF) 2003 Pipeline GEF Total Pipeline 10 5 Total Macedonia, FYR Water Utility Improvement 2001 Completed Total Comple Macedonia, FYR Mini-Hydropower Project (GEF Medium SIze) 2000 Implementation GEF Macedonia, FYR Biodiversity Strategy (GEF ENABLING) 2001 Implementation GEF Macedonia, FYR Power 1998 Implementation Macedonia, FYR Irrigation Rehabilitation 1998 Implementation Total Imple Macedonia, FYR Geothermal 2005 Pipeline 0.8 GEF Total Pipeline 0.8 Total Moldova Energy 1996 Completed Total Comple Moldova First Cadastre 1998 Implementation Moldova Country Biodiversity Priorities (Ii) (GEF Enabling) 2001 Implementation GEF Moldova Biodiversity Conservation (GEF Medium Size) 2002 Implementation GEF Moldova POPs Action Plan (GEF ENABLING) 2003 Implementation GEF Total Imple Moldova Water Supply and Sanitation 2003 Pipeline Moldova Agriculture Pollution Control GEF 2004 Pipeline GEF Moldova Environment Protect (GEF) 2006 Pipeline GEF Total Pipeline Total Poland Energy Restructuring Development 1990 Completed Poland Heat Supply Restructuring 1991 Completed Poland Forest Biodiversity (GEF) 1992 Completed GEF Poland Forestry Development 1994 Completed Poland Katowice Heat Supply 1995 Completed Poland ODS Phaseout (GEF) 1997 Completed GEF Poland Hard Coal Sectoral Adjustment Loan 1999 Completed Poland Coal Adjustment Completed Total Comple Poland Coal To Gas Conversion (GEF) 1995 Implementation GEF Poland Bielsko-Biala Water 1996 Implementation Poland Power Transmission 1996 Implementation Poland Flood Emergency 1998 Implementation Poland Geothermal And Environment (Podhale) 2000 Implementation Poland Rural Environemnt Protection 2000 Implementation Poland Geothermal & Environment (Podhale) (GEF) 2000 Implementation GEF Poland Rural Environment Protection (GEF) 2000 Implementation GEF Poland Krakow Enrgy Efficiency 2001 Implementation Total Imple Poland Biecz Biomass (GEF Medium Size) 2003 Pipeline GEF Poland Krakow Energy Efficiency (GEF) 2003 Pipeline GEF Poland Coal Sectoral Adjusment Loan I 2004 Pipeline Poland Stargard Geothermal (GEF) 2005 Pipeline GEF Total Pipeline Total Regional Baltic Sea 2 (GEF) 2006 Pipeline 5 GEF Total 5 Romania Danube Delta Biodiversity (GEF) 1995 Completed GEF Romania Bucharest Water Supply 1997 Completed Total Comple Romania Petrol Sector Rehabilitation 1994 Implementation Romania Second Roads 1997 Implementation Romania General Cadastre 1998 Implementation Romania Biodiversity Conservation Management (GEF) 1999 Implementation GEF

13 Romania Mine Closure 2000 Implementation Romania Agriculture Pollution Control (GEF) 2002 Implementation GEF Romania Forest Development 2003 Implementation Romania Energy Efficiency (GEF) 2003 Implementation GEF Total Imple Romania Irrigation Rehabilitation 2004 Pipeline Romania Hazardous Mitigation 2004 Pipeline Romania Hazard Mitigation (GEF) 2004 Pipeline GEF Total Pipeline Total Russian Federation Oil Rehabiliation 1993 Completed Russian Federation Oil Rehabilitation Completed Russian Federation Energy Efficiency 1995 Completed Russian Federation Emergency Oil Spill Recocery & Mitigation 1995 Completed Russian Federation Coal 1996 Completed Russian Federation GHG Red In Natural Gas (GEF) 1996 Completed GEF Russian Federation Coal Sectoral Adjustment Loan Completed Total Comple Russian Federation Land Reform Implementation Support 1994 Implementation Russian Federation Environment Management 1995 Implementation Russian Federation Housing 1995 Implementation Russian Federation Enterprise Housing Divst 1996 Implementation Russian Federation Community Social Infrastructure 1996 Implementation Russian Federation ODS Consumption Phaseout - 3 Tranches (GEF) 1996 Implementation GEF Russian Federation Special Initiative For ODS Production Shutdown 1996 Implementation GEF Russian Federation Biodiversity Conservation (GEF) 1996 Implementation GEF Russian Federation Sustainable Forestry Pilot 2000 Implementation Russian Federation Coal/Forestry Guarantee Facility 2001 Implementation Russian Federation Municipal Water & Waste Water 2001 Implementation Russian Federation Municipal Heating 2001 Implementation Russian Federation Khabarovsk Habitat Conservation (GEF Medium Size) 2002 Implementation GEF Total Imple Russian Federation Stavropol Geothermal (GEF Med Sz) 2004 Pipeline GEF Russian Federation Krasnodar Agriculture Pollution GEF 2004 Pipeline GEF Russian Federation Primorsky Habitat Conservation (GEF Medium Size) 2004 Pipeline GEF Russian Federation Rostov Nutrient Discharge & Methane Reduction (GEF) 2005 Pipeline GEF Russian Federation Fire Management Amur (GEF) 2005 Pipeline GEF Russian Federation Karelia Rehabilitation Heat (GEF) 2006 Pipeline 2 GEF Total Pipeline Total Serbia & Montenegro Montenegro Environment Infrastructure 2002 Implementation Total Imple. 0 0 Serbia & Montenegro Real Estate Cadastre 2004 Pipeline Serbia & Montenegro Environment (Montenegro) 2004 Pipeline Serbia & Montenegro Energy Efficiency 2004 Pipeline Total Pipeline Total Slovak Republic Biodiversity (GEF) 1994 Completed GEF Total Comple. 0 0 Slovak Republic Conservation CEE Grasslands (GEF Medium Size) 2000 Implementation GEF Total Imple Slovak Republic Industrial Cogenation (GEF) 2004 Pipeline GEF Slovak Republic Trvdosin Geothermal (GEF Medium Size) 2004 Pipeline GEF Total Pipeline Total Slovenia Environment 1996 Completed Slovenia ODS Phaseout (GEF) 1996 Completed GEF Total Comple Slovenia Real Estate Registry 1999 Implementation Total Imple Total Tajikistan IB Technical Assistance 1996 Completed Tajikistan Emergency Flood Assistance 1999 Completed Total Comple Tajikistan Farm Privatization Support 1999 Implementation Tajikistan Rural Infrastructure Rehabilitation 2000 Implementation

14 Tajikistan Pamir Private Power 2002 Implementation Total Imple Tajikistan Community Watershed Development 2004 Pipeline Tajikistan Cmmunity Orienhted Watershed Development (GEF) 2004 Pipeline GEF Tajikistan Dashtidzhum Biodiversity Conservation (GEF Medium Size) 2004 Pipeline GEF Total Pipeline Total Turkey Ankara Sewerage 1990 Completed Turkey Bursa Water & Sanitation 1993 Completed Turkey East Anatolia Watershed 1993 Completed Turkey In Situ Generation Conservation (GEF) 1993 Completed GEF Turkey ODS Phase-Out 1994 Completed Turkey Antalya Water Supply 1995 Completed Turkey Baku-Ceyhan Oil Export Pipe Technical Assistance 1997 Completed Total Comple Turkey ODS Phaseout Implementation Turkey National Transmission Grid 1998 Implementation Turkey Cesme Water Supply & Sewerage 1998 Implementation Turkey Privatization Of Irrigation 1998 Implementation Turkey Emergency Flood Recovery 1999 Implementation Turkey Marmara Earthquake Emergency Reconstruction 2000 Implementation Turkey Biodiv/Natural Resource Management (GEF) 2000 Implementation GEF Turkey ARIP 2002 Implementation Total Imple Turkey Renew Energy 2003 Pipeline Turkey Community Development & Heritage 2003 Pipeline Turkey Agriculture Pollution Control (GEF) 2003 Pipeline GEF Turkey Watershed Rehabilitation 2004 Pipeline Turkey Seismic Risk Mitigation 2005 Pipeline Turkey Forest Management 2005 Pipeline Turkey Agriculture 2006 Pipeline Total Pipeline Total Turkmenistan Water Supply And Sanitation 1997 Completed Total Ukraine Biodiversity Prot (GEF) 1993 Completed GEF Ukraine Danube Delta Biodiversity (GEF) 1995 Completed GEF Ukraine Coal Pilot 1996 Completed Ukraine Agriculture Sectoral Adjustment Credit 1997 Completed Ukraine Sevastopol Heat Supply Improvement 2001 Completed Total Comple Ukraine Kiev District Heat Implementation Ukraine ODS Phase-Out (GEF) 1998 Implementation GEF Ukraine Kiev PB Energy Efficiency 2000 Implementation Ukraine Lviv Water and Waste Water 2001 Implementation Ukraine Country Biodiversity Priorities (II) (GEF Enabling) 2001 Implementation GEF Ukraine Azov-Blk Sea Corridor Biodiversity Conservation (GEF) 2002 Implementation GEF Total Imple Ukraine Intercoastal Zone Management 2005 Pipeline 5 GEF

15 Ukraine PAL Pipeline Ukraine Environment Pollution 2006 Pipeline Total Pipeline Total Uzbekistan Cotton Sub-Sector Improvement 1995 Completed Uzbekistan Pilot Water Supply 1997 Completed Total Comple Uzbekistan Rural Water Supply & Sanitation 1998 Implementation Uzbekistan Tashkent Solid Waste 1998 Implementation Total Imple Uzbekistan Drainage 2004 Pipeline Uzbekistan Karshi Pumping Cascade 2004 Pipeline Total Pipeline Total Country Loan Amount Env. Amount Albania Aral Sea Armenia Azerbaijan Belarus Bosnia, Herzegovina Bulgaria Central Asia Croatia Cyprus Czech Repbulic Estonia Europe and Central Asia Georgia Hungary Kazakhstan Kyrgyz Republic Latvia Lithuania Macedonia, FYR Moldova Poland Regional 5 0 Romania Russian Federation Serbia and Montenegro Slovak Republic Slovenia Tajikistan Turkey Turkmenistan Ukraine Uzbekistan Total ECA Region