20 years of eib financing for a cleaner baltic … gdansk/presenta… · 20 years of eib financing...
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16 Oct. 2012 1 PURE Final Conference in Gdansk
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, 2012
16 Oct. 2012 2 PURE Final Conference in Gdansk
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
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1. Brief Presentation of EIB
EIB Headquarters in Luxembourg
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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 mid-cap 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)
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0
50
100
150
200
250
300
350
400
450
500
EIB World
Bank
IADB ASDB IFC EBRD NIB AfDB
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)
Source: Standard & Poor’s;
Supranationals -Special Edition 2011
Data as of 31.12.2010
(World Bank, IFC as of 30.06.2011)
Gross outstanding loans,
equity investments and guarantees
Largest Supranational Lender
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2. EIB Activity in the Water Sector
Delfland Waste Water Treatment Plant (NL) Water Treatment Plant in Krakow (Poland)
St. Petersburg Flood Barrier
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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)
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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
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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
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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 1st 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)
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2. EIB Activity in the Water Sector
2.4 Key Figures (1) : Signed Loans in the Water Sector
Total amount (2007-11): EUR 16.1bn, i.e. average of EUR 3.2bn p.a.
2
0.3
2.9
0.1
3.7
0.4
1.9
0.5
3.6
0.7
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Bn. EUR per year
2007 2008 2009 2010 2011
EIB Loans to the water sector from 2007 to 2011
Partner Countries
EU 27
4.3
2.4
3.0
2.3
4.1
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2. EIB Activity in the Water Sector
2.4 Key Figures (2): Breakdown by Region (2007-2011)
Amount of signed Projects in the Water Sector 2007 to 2011 (total
EUR 16.1 bn), Breakdown by Region
Asia & Latin America
0.5%ACP
2.5%
Mediterranean
4.9%
Eastern Neighbours,
Caucasus, Central Asia
0.5%
Candidates & Potential
Candidates
2.4%
South Africa
1.2%
EU 27
88.0%
Average loan amount:
EU 27 countries: EUR 121m,
Partner countries: EUR 47m
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3. EIB Activity in the Waste Water Sector in
countries around the Baltic Sea
July 2012 (hopefully …)
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3. 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.
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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 (2002 – 2011)
In million EUR
Signed loans Project cost
Estonia 2007 105 800
Latvia 1995 120 900
Lithuania 1995 113 900
Poland 1994 870 2200
Russian Fed. 2003 63 870
Sweden 1995 15 30
TOTAL 1380 5880
• No projects relevant for Baltic Sea in Denmark,
Germany, Finland in the past 10 years.
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4. Case Study – St. Petersburg
4. Case Study – St. Petersburg
Vodokanal’s Water Museum
Pumping Station URS 422
Under construction
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4. Case Study - St. Petersburg : General
4.1 Waste Water Collection
System
First sewers built at the end
of the 19th 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)
3 Catchment Areas in the City
Central WWTP
Northern WWTP
South Western WWTP
Northern
WWTP
Central
WWTP
Southern
WWTP
NEVA
BAY
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4. 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:
Ntot reduction: 75%
Annual Ntot in effluent 7.5mg/l:
full compliance with HELCOM*
2006 2009
UV Disinfection
on Sea Outfall
Ntot reduction: 65%
Annual Ntot in effluent 10.1mg/l:
no compliance with HELCOM*
*Helsinki Commission for the environmental protection of the Baltic Sea
2006
HELCOM* recommendation: 10mg/l
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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 (2010-2012):
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, …)
Sludge incinerator
Aeration Clarifiers
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4. Case Study - St. Petersburg : Projects
Completion of the Northern Tunnel Collector and new Pumping station URS 422 (8m³/s): transfer 200,000m³/d from Central to Northern WWTP (gravity or pumping)
Length: 24km, depth up to 80m, diameter: 4m
Connection of current direct discharges of untreated wastewater
Modernisation works in the Central WWTP and better nutrient removal through influent reduction
Central
WWTP
NEVA
BAY
Tunnel Collectors
Northern Tunnel
Collector
4.4 Northern Tunnel Collector (Works 2009-2012)
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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 240 25.0 Dec. 2003
Northern WWTP,
incinerator 70 20.0 Apr. 2005
Northern WWTP,
modernisation 60
17.5 Jun. 2009
Northern Tunnel Coll. 500
TOTAL 870 62.5 -
Other IFIs and Donors involved: EBRD, NIB, EU
Commission, SIDA, Finnfund, Swedfund, NDEP, John
Nurminen Foundation,…
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4. Case Study - St. Petersburg
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%)
4.6 Achievements Nutrient Discharge 1978 - 2009
Nitrogen: -54%
Phosphorus: -81%
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5. Conclusion
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5. 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).
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For more information please contact :
Marco Beros ([email protected] ),
Phone: +352 43 79 82748
EUROPEAN INVESTMENT BANK
http://www.eib.org/
THANK YOU FOR YOUR ATTENTION!