20 YEARS OF EIB FINANCING FOR A CLEANER BALTIC SEA

Transcription

1 20 YEARS OF EIB FINANCING FOR A CLEANER BALTIC SEA Marco Beros Projects Directorate EUROPEAN INVESTMENT BANK PURE FINAL CONFERENCE IN GDANSK Gdansk, October 16, CONTENTS 1. Brief Presentation of EIB 2. EIB Activity in the Water Sector 3. EIB Activity in Countries around the Baltic Sea 4. Case Study St. Petersburg 5. Conclusion 2 1

2 1. Brief Presentation of EIB EIB Headquarters in Luxembourg 3 1. Brief Presentation of EIB 1.1 General EU s long-term lending bank set up in 1958 by the Treaty of Rome, Shareholders: 27 Member States of the European Union, Lends up to 50% of the project investment cost Lending objectives: Within the Union: Convergence Small medium and midcap enterprises (SMEs & midcaps) Environmental sustainability Knowledge Economy Trans-European Networks (TENs) Sustainable, competitive and secure energy Outside the Union: Private sector development Infrastructure development Security of energy supply Environmental sustainability Support for EU presence in Asia and Latin America via Foreign Direct Investment (FDI) 4 2

3 1. Brief Presentation of EIB 1.1 Key Lending Figures 2011 European Union: EUR 53.8bn Partner countries: EUR 7.1bn Total lending: EUR 60.9bn Borrowings: EUR 76.0bn Subscribed capital: EUR 232.4bn (at 01/04/2009) EIB World Bank Gross outstanding loans, equity investments and guarantees Largest Supranational Lender IADB ASDB IFC EBRD NIB AfDB Source: Standard & Poor s; Supranationals -Special Edition 2011 Data as of (World Bank, IFC as of ) 5 2. EIB Activity in the Water Sector Delfland Waste Water Treatment Plant (NL) Water Treatment Plant in Krakow (Poland) St. Petersburg Flood Barrier 6 3

4 2. EIB Activity in the Water Sector 2.1 General Largest source of loan financing to the sector, The water sector represents only 5% of EIB s total lending, Total loan amount of EUR 26bn over the past 10 years, 90% of which for projects inside EU, From 2002 to 2011, 288 major projects have been financed, 75% of which located within the EU, On average, EIB lending represents 30% of project investment cost, EIB lends to public or private utility companies, national or local authorities or directly for project finance deals. EIB lending covers the whole water cycle (water resources, water supply, sanitation, flood protection) 7 2. EIB Activity in the Water Sector 2.2 EIB s Water Sector Lending Policy River basin approach (IWRM) Sector development Adaptation to climate change Water efficiency Development of new water supply Wastewater and sanitation services Research and Innovation Maximise Added Value 8 4

5 2. EIB Activity in the Water Sector 2.3 Implementing the Policy: Key Actions (1/2) IWRM (Integrated Water Resources Management): Promote IWRM + water services provision in a project Support transboundary cooperation Consolidation of institutional framework: Support appropriate level of integration of utilities to improve efficiency and enhance borrowing capacity Enhance financial sustainability (sustainable cost recovery) Adaptation to climate change (CC): Adaptation part of new lending priority in EIB CC Strategy Promoters should consider adaptation in project design EIB supports technical assistance (TA) with grants Preparation, implementation of flood risk management projects 9 2. EIB Activity in the Water Sector 2.3 Implementing the Policy: Key Actions (2/2) Water efficiency: Support efficiency in: (i) use by consumers; (ii) allocation of resources; (iii) systems (losses); (iv) management of utilities Promote principle of cost recovery in line with WFD Support industries aiming at improving water footprint Development of new water supply: Demand side management and efficiency as 1 st priority Finance: (i) desalination with pre-requisites; (ii) dams, basin transfers and fossil water under strict conditions Wastewater and sanitation services: Always consider them when undertaking water supply projects Sustainable cost recovery (incl. subsidies) Sustainable financing (blend loans, grants) 10 5

6 2. EIB Activity in the Water Sector 2.4 Key Figures (1) : Signed Loans in the Water Sector Total amount ( ): EUR 16.1bn, i.e. average of EUR 3.2bn p.a. EIB Loans to the water sector from 2007 to 2011 Bn. EUR per year Partner Countries 1 EU EIB Activity in the Water Sector 2.4 Key Figures (2): Breakdown by Region ( ) Amount of signed Projects in the Water Sector 2007 to 2011 (total EUR 16.1 bn), Breakdown by Region South Africa 1.2% EU % Asia & Latin America 0.5% ACP 2.5% Eastern Neighbours, Mediterranean Caucasus, Central Asia 4.9% 0.5% Candidates & Potential Candidates 2.4% Average loan amount: EU 27 countries: EUR 121m, Partner countries: EUR 47m 12 6

7 3. EIB Activity in the Waste Water Sector in countries around the Baltic Sea July 2012 (hopefully ) EIB Activity in countries around the Baltic Sea 3.1 General EU Commission is signatory of HELCOM s Baltic Sea Action Plan and EIB as EU s Bank is therefore committed to support Helsinki Convention objectives. EIB is also part of the Northern Dimension Environmental Partnership (NDEP) together with Russian Federation, EU Commission, EBRD, NIB, NEFCO, World Bank, etc. EIB has co-financed waste water projects in all countries of the Baltic Sea catchment area with the exception of Belarus. 14 7

8 3. EIB Activity in countries around the Baltic Sea 3.2 EIB Key Figures for waste water projects Country Year of first waste water project Total for past 10 years ( ) In million EUR Signed loans Project cost Estonia Latvia Lithuania Poland Russian Fed Sweden TOTAL No projects relevant for Baltic Sea in Denmark, Germany, Finland in the past 10 years Case Study St. Petersburg Pumping Station URS 422 Under construction Vodokanal s Water Museum 16 8

9 4. Case Study - St. Petersburg : General 4.1 Waste Water Collection System First sewers built at the end of the 19 th century, Combined system on 70% of the area (city), separate system in the suburbs (30%) Total: 8,000km, of which 220km tunnel collectors (DN 2000 to 4700), 15 to 80m deep, 120 pumping stations 5 catchment areas (3 in the city, 2 in the suburbs) Northern WWTP NEVA BAY Southern WWTP Central WWTP 3 Catchment Areas in the City Central WWTP Northern WWTP South Western WWTP Case Study - St. Petersburg : Projects 4.2 South Western WWTP (290,000m³/d) Works started 1987, abandoned 1991 Completion between 2003 and 2005 Incinerator commissioned in 2007 Nitrogen removal performance improvement: HELCOM* recommendation: 10mg/l UV Disinfection on Sea Outfall N tot reduction: 65% Annual N tot in effluent 10.1mg/l: no compliance with HELCOM* N tot reduction: 75% Annual N tot in effluent 7.5mg/l: full compliance with HELCOM* *Helsinki Commission for the environmental protection of the Baltic Sea 18 9

10 4. Case Study - St. Petersburg : Projects 4.3 Northern WWTP (600,000m³/d) Put in operation in 1987 Sludge incinerator commissioned in 2007 Objectives of the current works ( ): upgrade the plant for nutrient removal to meet the HELCOM Recommendation and Russian environmental legislation, rehabilitate/reconstruct facilities in poor condition (8 primary clarifiers, aeration tanks, air blowers,12 secondary clarifiers, new return sludge pumping station, ) Clarifiers Aeration Sludge incinerator Case Study - St. Petersburg : Projects 4.4 Northern Tunnel Collector (Works ) Completion of the Northern Northern Tunnel Collector Tunnel Collector and new Pumping station URS 422 (8m³/s): transfer 200,000m³/d from Central to Northern WWTP (gravity or pumping) NEVA BAY Length: 24km, depth up to 80m, diameter: 4m Connection of current direct discharges of untreated Central wastewater WWTP Modernisation works in the Central WWTP and better nutrient removal through influent reduction Tunnel Collectors 20 10

11 4. Case Study - St. Petersburg : Projects 4.5 Project Cost and Financing Data (in EUR million) Project Investment Cost EIB Loan Amount Signed Southern WWTP Dec Northern WWTP, incinerator Northern WWTP, modernisation Apr Northern Tunnel Coll Jun TOTAL Other IFIs and Donors involved: EBRD, NIB, EU Commission, SIDA, Finnfund, Swedfund, NDEP, John Nurminen Foundation, Case Study - St. Petersburg 4.6 Achievements St. Petersburg was the Baltic Sea s largest point source of pollution First WWTP in 1978, today 21 WWTP (total capacity 1.9m m³/d) 3 sludge incineration plants 91% of waste water is treated (Target for end of 2012: 95%) Nutrient Discharge Phosphorus: -81% Nitrogen: -54% 22 11

12 5. Conclusion Conclusion In the past 20 years EIB s partners have shown an impressive track record of reducing pollution to the Baltic Sea. However, much needs still to be done. The EIB is proud to have been contributing to these successes together with the Promoters, authorities and other financiers. Almost all completed projects are good examples of successful international cooperation, through blending of loans with grants (from EU and other donors)

13 THANK YOU FOR YOUR ATTENTION! For more information please contact : Marco Beros (m.beros@eib.org ), Phone: EUROPEAN INVESTMENT BANK