1. GEF PARTNERSHIP ON
THE BLACK SEA -
DANUBE BASIN
An example of GEF leveraging
regional stakeholder support for the
clean-up of a common water body

3. The Black Sea
• Connected to the Mediterranean Sea by narrow
(700m) and shallow (70m) Bosphorus Strait
• Depth exceeds 2km
• Replenishment of bottom waters can take
hundreds of years
• Largest natural anoxic basin in the world due
to bacteria at bottom
• Virtually dead below a depth of about 180m
• Surface waters support rich and diverse
marine life
• Supports livelihoods of millions through
fisheries, tourism and transportation route

4. Degradation of the Black Sea
• Catastrophic decline of ecosystem in
recent three decades due to:
– increased loads of nutrients from rivers
– raw sewage, heavy metals, solid waste
from coastal cities and oil spills
– overexploitation of fish stocks
– invasion of alien species Mnemiopsis leidyi
• Serious consequences for biodiversity,
public health, fisheries, tourism and
amenity values

5. The Black Sea Basin
• Almost 1/3 of the entire land area of
continental Europe drains into the Black Sea
– Danube, Dnieper, and Don Rivers
– 17 countries
– 13 capital cities
– 160 million persons
– Intensively cultivated agricultural land
• Main sources and loads of nutrients
– International rivers (229,000 t/y N; 40,000 t/y P)
– Domestic and industrial point sources (148,000 t/y
N; 8,700 t/y P)
– National rivers (15,000 t/y N; 2,700 t/y P)

6. GEF SUPPORT
• Preparation work (completed):
Environmental Program for the Danube
Black Sea Environment Program
Transboundary Diagnostic Analysis
Strategic Action Plans
• Implementation Process:
WB: Investment Fund for Nutrient Reduction (US$70M)
UNDP/UNEP: regional capacity building projects (US$25M)
EBRD: Slovenia Pollution Reduction Project (US$10M)
UNIDO: Transfer of Env. Sound Technology (US$1M)
UNDP: Building Env. Citizenship in the Danube (US$ 0.75M)

7. World Bank Standard
Operations Practice
Country Team with
Government
Country Team with
Government
CAS CAS
PROJECT
GOV.
CONTRI-
BUTION
LOAN
PROJECT
GOV.
CONTRI-
BUTION
LOAN
PROJECT
GOV.
CONTRI-
BUTION
LOAN
PROJECT
GOV.
CONTRI-
BUTION
LOAN

8. Partnership Operations Practice
GEF
PROJECT
GOV.
GRANT
Country Team with
Government
CAS
Country Team with
Government
CAS
PROJECT
GOV.
LOAN
PROJECT
GOV.
LOAN
PROJECT
GOV.
LOAN
Regional
Program
Coordinator
DONORGRANT
DONOR

9. Value-added of GEF
Partnership
• US$95M over several tranches will
leverage US$180M of donor funds
• Catalytic effect: DABLAS as channel of
donor funds
– US$235million/year of EU ISPA and associated
country funds to municipal hotspots in five
accession countries over 4 years
• Countries have access to international
best practice and expertise

10. Partnership Investment Projects
Title GEF
Grant
Co-Funding
Leveraged
Ratio
(GEF:Other)
Under Implementation
Bulgaria Wetlands Restoration and Nutrient Reduction 7.50 6.00 1 : 0.8
Romania Agricultural Pollution Control 5.15 5.65 1 : 2.0
Under Preparation
Croatia Nutrient Reduction 4.00 8.00 1 : 2.0
Hungary Nutrient Reduction 9.70 19.00 1 : 2.0
Moldova Agricultural Pollution Control 5.00 40.00 1 : 8.0
Moldova Rural Investment Support Services and APC 2.00 12.00 1 : 6.0
Russia Krasnodar Agricultural Pollution Control 5.00 7.00 1 : 1.4
Russia Rostov Reduction of Nutrient Discharges and Methane
Emissions
10.00 21.80 1 : 2.2
Slovenia Pollution Reduction (EBRD) 10.00 45.00 1 : 4.5
Turkey Watershed Rehabilitation and APC 6.00 53.00 1 : 8.8
Ukraine Integrated Coastal Zone Management 4.00 8.00 1 : 2.0
Ukraine Azov Black Sea Corridor Biodiversity Conservation - APC
Comp.
0.84 8.44 1 : 10

11. Case studies of different uses
of GEF grant
• TURKEY - Integrated approach to agricultural
pollution control
• SLOVENIA - Financial intermediation for
reduced hazardous discharges
• UKRAINE - Inclusion of environment on the
agenda of cash strapped local governments
• ROMANIA – Health benefits help leverage
local contributions for nutrient reduction
• VARIOUS - Policy and legal revisions
• ALL - Awareness Raising

12. TURKEY – Integrated approach to
agricultural pollution control
• Weak government approach to reducing NPS nutrient pollution:
– No concerted effort
– Lack laboratory capacity
– Lack coordination among relevant agencies
• But, good experience with watershed rehabilitation:
– Participatory approach addressing land degradation in upper watersheds
and cross sectoral cooperation among rural services agencies.
• GEF funds used to:
– Build capacity
– Extend cooperation to environmental agencies
– Enable extension of the successful integrated microcatchment
management approach to lower watersheds in the Black Sea region

13. SLOVENIA – Financial
intermediation for investments
leading to reduced discharges
• High risk loans for small/medium
municipalities and industries for improved
production and treatment technologies
– Financial Intermediaries do not have capacity for
environmental assessment of sub-projects
• GEF grant provides:
– Incentive for FIs to engage in such activities
– US$45million to government from EBRD for on-
lending to fund subprojects

14. UKRAINE – Inclusion of
environment in cash-strapped local
government’s agenda
• Difficult economic conditions and pressing
social problems
– environment not a priority on local policy makers’
agendas
• GEF grant funds:
– investments in environmental rehabilitation
financially feasible
– triggered policy reforms leading to reduction of
wastewater spills in the Black Sea

15. ROMANIA – Health benefits help
leverage local contributions for
nutrient reduction
• Health effects and nutrient leakages to the
groundwater due to poor manure
management
• GEF funds leveraged in-kind and cash
contribution (appr. US$ 3 million) :
– Central Government
– USAID
– Farmers
– Calarasi county government

16. VARIOUS – Policy and legal
reforms
Country Policy / Legal Reform
Moldova,
Romania,
Turkey
Harmonization with EU Dangerous Substances
Directive (Tur. and Mol. only) and Nitrates Directive
Adoption of Code of Good Agricultural Practices
Moldova Development of Water Quality Management Plan
for Moldova –Ukraine Dnister River Basin
Russia Phase-out of phosphate containing detergent use in
households in Rostov City
Ukraine Development of a Coastal Zone Management Plan
and associated policy and legal framework

17. ALL COUNTRIES –
Awareness raising
• Partnership Website:
www.worldbank.org/blacksea-danube
• Regional Workshop on Agricultural Pollution
Control – Good Practices (Poland, Sept.
2002)
• Distance Learning Network for the Black
Sea/Danube Basin for efficient exchange of
experiences/dissemination of information
– First module: Network for Environmentally Friendly
Agriculture in the Danube/Black Sea Basin

18. Conclusions
• Catalytic effect demonstrated
• Many successes already achieved
• Creative, innovative technologies, management
practices and financing schemes
• Project pipeline
robust: governments
and donors on
board
• Likely reduction in
nutrients significant
1350
1400
1450
1500
1550
1600
1650
1700
1750
1800
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Baseline
Partnership
Programme