DRAFT GUIDANCE NOTE ON THE FRAMEWORK FOR FINANCIAL RESOURCE MOBILISATION FOR IMPLEMENTING THE STRATEGIC PLAN FOR THE BASEL CONVENTION

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1 BC Distr GENERAL UNEP/SBC/BUREAU/6/2/INF/4 9 October 2003 ENGLISH ONLY SECOND MEETING OF THE EXPANDED BUREAU OF THE SIXTH MEETING OF THE CONFERENCE OF THE PARTIES TO THE BASEL CONVENTION Geneva, 25 October 2003 Item 3 (b) of the provisional agenda DRAFT GUIDANCE NOTE ON THE FRAMEWORK FOR FINANCIAL RESOURCE MOBILISATION FOR IMPLEMENTING THE STRATEGIC PLAN FOR THE BASEL CONVENTION 1 The present document contains a draft Guidance Note on the framework for financial resource mobilization for implementing the strategic plan for the Basel Convention that was commissioned by the Government of Denmark and prepared by COWI Consult The document should be read in conjunction with document UNEP/SBC/BUREAU/6/2/3 2 The draft Guidance Note contains fact sheets on selected key bilateral funding sources These are based on available information on relevant web sites The Consultant would be pleased to include additional fact sheets on bilateral financing agencies or programmes Parties and others are therefore invited to provide relevant information on their bilateral assistance in the given format The Consultant will incorporate additional fact sheets into the final version of the Note Likewise, Parties and others are invited to provide revisions to the information provided in the existing fact sheets Parties are invited to send the information before 16 November 2003 to: COWI A/S Att Ms Helle Husum Parallelvej 2 DK-2800 Kongens Lyngby Denmark Tel Direct Fax hhu@cowidk UNEP/SBC/BUREAU/6/2/1 For reasons of economy, this document is printed in a limited number Delegates are kindly requested to bring their copies to meetings and not to request additional copies

2 Danish Environmental Protection Agency Financial Resource Mobilisation for Implementation of the Strategic Plan for the Basel Convention Part I - Draft Guidance Note October 2003

3 Danish Environmental Protection Agency Financial Resource Mobilisation for Implementation of the Strategic Plan for the Basel Convention Part I - Draft Guidance Note October 2003 Report no 58231_01 Issue no 1 Date of issue 8 October 2003 Prepared Checked Approved AEJ, BIM, EB, HHU APA HHU C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

4 3 Table of Contents Summary 5 1 Financial Resource Mobilisation for the Implementation of the Basel Convention 8 11 Background 8 12 Aim, Target Group and Structure 9 2 Resource Mobilisation for Waste Management General Strategic Approach to Environmental Financing Main Waste Management Actions and Drivers at Country Level Summary of Steps in Financial Resource Mobilisation Steps in Implementing the Basel Convention including Financial Resource Mobilisation Step 1: National Working Group Step 2: Baseline Step 3: Waste Management Options Step 4: Funding Possibilities Step 5: Strategy / Plan Step 6: Raising of National and International Funds Step 7: Implementation of Actions 22 3 Sources of Funding for Implementing the Basel Convention National Funding Sources in Overview Financing by Users Public Budgets Environmental Funds National NGOs 25 C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

5 4 315 Domestic Banks, Lending Institutions or Private Operators International Funding Sources in Overview International Development Banks International Development Funds International Commercial Banks Financial Mechanisms of the Basel Convention Multilateral grant donors International NGOs Bilateral Lending Facilities and Grant Donors Innovative Financing Partnership with Industry 30 4 About the Fact Sheets on Possible Funding Sources for Waste Management 32 C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

6 5 Background Summary In December 2002 the COP adopted a Strategic Plan for Implementation of the Basel Convention However, resources available from the Basel Convention for environmentally sound management of waste are limited Only USD 12 million has been allocated for activities of the Strategic Plan for If the objectives of the Convention are to be reached, funding is required from other funding sources The Strategic Plan therefore stresses that resource mobilisation is a key element for ensuring that identified priority activities can be undertaken Aim and target group Types of actions The aim of this note is to provide developing countries and countries with economies in transition with guidance on how to approach the issue of mobilising resources to assist them in implementing the Basel Convention The main target group is government ministries and other institutions responsible for the practical implementation of the provisions of the Basel Convention on a national level In order to implement the Basel Convention a Party is required to take action in a number of areas related to waste management These may include: Institutional and legal analyses; Waste management planning (preparation of waste inventory, identification of ESM options, assessment of transboundary movement of wastes, development of policy, strategy and plan to meet Basel Convention objectives); Implementation of waste management (establishment of institutional and legal frameworks, reduction of transboundary movements of hazardous waste, promotion and introduction of cleaner technologies, collection, recovery, storage and disposal of waste, awareness raising, etc) Quantification of BC goals and Party obligations Financial resource mobilisation deals with how to obtain sufficient funding for meeting a desired goal The goals of the Basel Convention cannot be specified in quantitative terms Similarly, it is not possible to determine precisely what the requirements are for a Party to implement the Basel Convention C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

7 6 Preparation of a national policy, strategy and action plan that define national targets is a useful instrument for a country to determine, which action to take and the corresponding funding requirements Only when this has been done is it possible to identify the most realistic and prospective sources of funding with a view to mobilising funds for implementation Steps in financial resource mobilisation This is illustrated in the figure below which describes a series of steps that characterise a typical resource mobilisation process Depending on the status on implementation, a country may opt to go through these steps, fully and/or partially, to implement the Basel Convention, including the mobilisation of funds for the purpose Steps in National Implementation of the Basel Convention, including Financial Resource Mobilisation A key message of the above figure is first of all that financial resource mobilisation should be seen as an integral part of implementing the Basel Convention and secondly that resource considerations should be made very early in the process to ensure realistic planning and implementation C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

8 7 Funding sources The funding sources to be considered are illustrated in the figure below They comprise national funds, Basel Convention funds and funds from international loan and grant agencies National funding plays an important role in resource mobilisation, possibly together with international sources in co-financing arrangements New and innovative forms of financing could also be considered Overview of Funding Sources for Implementation of the Basel Convention These funding sources are described in more detail in Chapter 3, and detailed fact sheet on international and bilateral funding sources are provided in Part II - Fact Sheets on Possible Funding Sources for Waste Management Use of guidance This guidance note describes how countries can undertake financial resource mobilisation Naturally, countries are not required to follow the steps suggested or the recommendations made Furthermore, the information on funding sources gives a static picture only New national financing modalities keep being developed, international funding agencies change strategies and focus and new, combined and innovative funding modalities emerge The guidance note should be read against this background C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

9 8 1 Financial Resource Mobilisation for the Implementation of the Basel Convention BC resources 11 Background At its 6th meeting in December 2002 the Conference of the Parties (COP) to the Basel Convention adopted a Strategic Plan for Implementation of the Basel Convention However, resources available from the Basel Convention for environmentally sound management of waste are limited Only USD 12 million has been allocated for activities of the Strategic Plan for In May 2003, 15 projects were selected for implementation and USD 800,000 out of the above amount was allocated for the purpose If the objectives of the Convention are to be reached, funding is required from other funding sources The Strategic Plan therefore stresses that resource mobilisation is a key element in ensuring that identified priority activities can be undertaken Mobilisation of financial resources Funding of national activities to implement the Basel Convention is provided by either national or international sources National sources of funding are normally mobilised as part of a political and economic prioritisation process Funding from international funding agencies is subject to similar prioritisation processes, relating to which countries to assist, what sectors to focus on and the types of assistance to be provided In order to mobilise funding for waste management actions it is therefore essential to recognise and understand: main drivers of action involved; the main driving forces underlying the prioritisation processes related to national and international funding; and the typical procedural and administrative framework (often referred to as "the project cycle") of the processes C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

10 9 Aim 12 Aim, Target Group and Structure This note provides developing countries and countries with economies in transition with guidance on how to approach the issue of mobilising resources to assist them in meeting the objectives of the Basel Convention The note aims to give an overview of a series of steps that would characterise a typical resource mobilisation process, and describes the activities that could suitably be undertaken in each step Target group Structure of note The main target group is government ministries and other institutions responsible for the practical implementation of the provisions of the Basel Convention in a national context The Basel Convention Regional Centres may also benefit from the guidance In addition to this introductory chapter the note contains three substance-related chapters: Chapter 2 provides an overview of the issues to be considered and steps involved in mobilising resources for Basel Convention related actions The overview is then followed by a more detailed elaboration of the steps Chapter 3 describes in overall terms the different types of national and international funding sources that may be considered in connection with resource mobilisation Part II - Fact Sheets on Possible Funding Sources for Waste Management contains fact sheets for selected international funding agencies and bilateral donors that may be approached in connection with resource mobilisation for implementation of the Basel Convention C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

11 10 2 Resource Mobilisation for Waste Management 21 General Strategic Approach to Environmental Financing Financial resource mobilisation for the waste sector deals with how to obtain a level of financing for the sector, which is sufficient to cover the costs of meeting the desired targets and to undertake actions to be implemented, including those required to meet the provisions of international environmental conventions This task has given rise to the development of environmental financing strategy methodologies to determine the costs of achieving goals, how these costs may be minimised, and the challenge of matching costs with available resources Lessons learnt Major lessons learnt from applying these methodologies at the country level are that: financing should be considered at an early stage in the planning process; and financing is an integral part of target-setting and policy-making This is important in relation to the implementation of the Basel Convention at national level Environmental financing strategy methodologies - an example An example of such a methodology, is the one developed under the auspices of the OECD EAP Task Force and the Environment for Europe Process, which addresses the financial issues related to achieving environmental goals, see Box 21 This guidance note is based on experience gained from developing and using the EFS described in the box and lessons learned from similar initiatives C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

12 11 Box 21 Environmental Financing Strategy (EFS) Methodology Environmental Financing Strategy - the concept An environmental financing strategy is a methodological framework for medium to longterm strategic balancing of: (1) environmental and service targets in the environmental sectors that require investment in heavy infrastructure with (2) funding available in the future for these sectors Shortcomings of traditional sector programmes Sector policies and programmes are typically based on a thorough analysis of the problems and the regulatory framework in the environmental sector concerned They identify long-term objectives and overall priorities In addition, sector policies and programmes often include a list of short-term measures proposed for immediate inclusion in the public budgets However, the task of translating these environmental objectives into time-bound and ranked targets has proven to be difficult Cost-benefit analyses have rarely been made to prioritise targets, and estimates on the cost of actions and related responsibilities for action have often been lacking Finally, analysing and documenting how the expenditures can be financed and how targets and related financing should be phased over time have rarely been carried out The EFS specifies expenditure needs and the supply of finance The EFS concept has been designed to address some of the shortcomings identified above The financing strategy is prepared by analysing the expenditure needs related to the environmental objectives stated in the sector programme and by comparing these with the available supply of finance FEASIBLE Model A computerised decision support tool, called FEASIBLE, supports the practical implementation of the above methodological framework The key feature of FEASIBLE is the use of generic expenditure functions These expenditure functions allow easy estimation of the funding needs of alternative service and environmental targets with a limited data collection effort Source: OECD (2003): Financing Strategies for Water and Environmental Infrastructure Waste related actions 22 Main Waste Management Actions and Drivers at Country Level In order to implement the Basel Convention a Party is required to take action in a number of areas related to waste management The most important of these are sought identified in Table 21, which also indicates the typical main drivers of action in a country It should be emphasised that the typology of actions used in the table is not synonymous with the "fields" and "clusters" used in the Action Table of the "Strategic Plan for the Implementation of the Basel Convention" Main drivers of action An important conclusion to be drawn from the table is that the public sector in a country is the main driver of action related to most institutional and regulatory initiatives as well as action concerning waste-related promotion, information, education and awareness-raising The more investment-heavy actions, principally the introduction of cleaner technologies, are primarily the responsibility of the owners of the production facilities that generate the waste C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

13 12 Table 21 Key Management Actions to Implement the Basel Convention and Main Drivers of Action Key Waste-related Actions Institutional and legal analyses Institutional analysis Legal analysis and drafting of legislation Waste management planning Preparation of waste inventory and identification of related environmentally sound management options Assessment of transboundary movement of hazardous and other wastes Development of policy, strategy and plan to meet waste management objectives Implementation of waste management Establishment of institutional and administrative frameworks and capacity for implementation of national legislation Reduction of transboundary movements of hazardous wastes, including adherence to the control system Promotion of cleaner technologies Introduction of cleaner technologies to minimise generation of hazardous wastes and other wastes Information, education and awarenessraising to support waste minimisation and environmentally sound management of wastes Establishment of waste management infrastructure (collection, recovery, storage and disposal, etc) 1) Drivers in brackets indicate typically less important actors Main Driver of Action in Party Countries 1) National and regional governments (District / Municipal authorities) National government National and regional governments (District / Municipal authorities) National and regional governments (District / Municipal authorities) National and regional governments (District / Municipal authorities) National and regional governments District / Municipal authorities National and regional governments District / Municipal authorities Production companies Power utilities National and regional governments Industry / trade organisations Production companies Production companies Waste management facilities and industry Power utilities Public procurement offices National and regional governments District / Municipal authorities Industry / trade organisations Environmental NGOs (Consumer organisations) National and regional governments Municipal authorities Production companies Waste management facilities and industry C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

14 13 23 Summary of Steps in Financial Resource Mobilisation Financial resource mobilisation should be seen as an integral part of implementing the Basel Convention, carried out through steps such as establishing country-specific obligations, determining status on implementation, developing a plan for the implementation of the Basel Convention, identifying financial resource requirements etc The steps involved in the process could be those shown in Figure 21 Figure 21 Steps in National Implementation of the Basel Convention, including Financial Resource Mobilisation C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

15 14 24 Steps in Implementing the Basel Convention including Financial Resource Mobilisation The steps in a country's implementation of the Basel Convention shown in Table 21 are described in more detail below Emphasis is given to the steps that are particularly important in relation to resource mobilisation 241 Step 1: National Working Group The responsibility for implementing international environmental conventions often rests with the environmental or resource ministry in a country Most countries already have an organisational body responsible for dealing with the Basel Convention issues However, if this is not the case, it is advisable that the relevant ministry be officially assigned the primary responsibility for dealing with the issues relating to the Basel Convention The ministry would be given the mandate to establish a national multistakeholder co-ordinating mechanism or Working Group for the purpose of dealing systematically with the implementation of Basel Convention, including Financial Resource Mobilisation The National Working Group would combine expertise on technical, financial and administrative aspects of waste management The national focal point could head the Working Group or equivalent body It is important that the Working Group be composed of representatives from all ministries and/or institutions and stakeholders involved in the management of hazardous and other wastes The responsible ministry would be expected to provide the Working Group with administrative support 242 Step 2: Baseline The basis (foundation) for planning a country's actions with a view to implementing the Basel Convention is to establish a baseline Firstly, the Working Group would have to determine, in precise terms, the country's obligations as a Party to the Basel Convention Once these have been established, a status on implementing the obligations should be made in order to determine which items are still outstanding Institutional and legal analyses would normally have to be made (if this has not already been done) to establish the frameworks within which the future implementation of the Convention should take place The analyses will typically identify areas that require action to support implementation The most fundamental element of the baseline is a detailed national waste inventory, including waste audits Some developing countries and countries with economies in transition have already received assistance to conduct detailed inventories, including waste audits, but in many countries a comprehensive waste inventory has not been made C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

16 Step 3: Waste Management Options The results of the institutional and legal analysis, as well as the waste inventory, will define a number of areas where future action is required These would include actions of the types indicated in Table 21 In each of the relevant areas concerned, waste management options to address the issues should be identified and related to the national situation The Basel Convention secretariat, UNEP, FAO, OECD and other organisations have compiled information and technical guidelines that make up a useful basis for identifying waste management options Examples of Basel Convention guidelines are the Technical Guidelines on the Identification and Management of Used Tyres (1999) and the Instruction Manual for Control System for Transboundary Movements of Hazardous Wastes and other Wastes (1998) Once identified, the costs of implementing the activities related to the options considered should be assessed at a level of detail that would allow preliminary considerations of priorities and needs for resource mobilisation 244 Step 4: Funding Possibilities As described in the introduction, the financial support and in-kind assistance presently available from the Basel Convention's own funds are far from sufficient to allow the Parties to take adequate action to meet the objectives of the Convention Funding must be obtained from other sources The Conventions own funds may primarily be used for capacity building, development of guidance and implementation tools, information dissemination, awareness-raising and education This section describes a proposed procedure to follow in order to identify funding possibilities Identifying funding possibilities Once the activities and management options for the implementation of the Basel Convention have been identified the following procedure may be followed: 1 Review management options and related finance requirements against possible funding sources; 2 Explore national funding possibilities with the ministries or other bodies concerned; 3 Contact the ministry or other agency responsible for coordination of assistance from bilateral donors and international funding agencies; 4 Contact the relevant international funding agencies to explore the potential for financial and/or technical assistance; This process is elaborated in the following C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

17 16 1 Review management options against possible funding sources The National Working Group on financial resource mobilisation will review the management options and their implementation costs against possible national and international funding sources, initially as a "desk review" This will most likely point to the most relevant and promising sources In certain cases co-financing would be needed and possible, here defined as combinations of national and international funding sources and/or the involvement of more than one international funding agency In undertaking this desk review a number of funding sources should be considered An overview of these are illustrated in Figure 22 and described in the following paragraphs Ongoing initiatives in the field of "innovative financing" and "partnership with industry", which are described in Chapter 3, could also be considered 2 Explore national funding possibilities with the ministries or other bodies concerned In cases where national funding sources are considered relevant, possibly in a co-financing arrangement with international agencies, these possibilities should be explored with the authorities concerned, industrial organisations, companies etc Use of public budgets and similar funding can lengthen the implementation process due to complex budget procedures 3 Contact agency responsible for co-ordination of international assistance Most countries have one ministry, which is responsible for the co-ordination of foreign assistance (foreign aid) In many countries it is the ministry of finance, the ministry of economy or a similar body Other, especially larger countries, have different ministries or bodies responsible for different types of assistance - often on a sector basis It is recommended to contact and liaise with the co-ordination body concerned to determine which funding opportunities would be the most promising, taking into account the discussions and negotiations regarding assistance that the coordination body holds with the bilateral or multilateral sources of assistance As above, the scope for co-financing should be explored 4 Contact relevant international funding agencies to explore the potential for assistance With regard to international funding agencies, informal contacts could be made at this point in time in order to investigate funding prospects, either to the local representation of the agencies concerned, if such exist, or to the agencies' headquarters If assistance is possible and realistic, information on the correct points of contacts and procedures for applying for assistance should be obtained C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

18 17 Overview of potential funding sources for BC implementation Funding of BC implementation activities may be obtained from different sources The sources can be divided into five main groups characterised by different providers of capital and different types of financing offered The five groups are illustrated in Figure 22 C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

19 18 Figure 22 Convention Overview of Funding Sources for Implementation of the Basel These funding sources are described in more detail in Chapter 3, and detailed fact sheets on international and bilateral funding sources are provided in Part II - Fact Sheets on Possible Funding Sources for Waste Management Overview of funding sources for individual BC-related actions The main and most realistic funding sources that may be drawn on for the individual types of action are suggested in Table 22 The intension of the table is to assist countries in focusing attention on the most relevant sources when seeking funding It must be underlined that the match between type of action and possible funding sources is only indicative The costs in undertaking actions may take the form of administrative costs (primarily manpower costs), investment costs and operating costs Although its is impossible to stringently characterise the funding sources by the type of funding offered, experience shows that grant donors typically cover administrative costs of softer actions and interventions while development banks and development funds finance investment costs Operating costs are rarely covered by international funding agencies and would typically have to be financed by national sources C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

20 19 Table 22 Possible Funding Sources for Main Waste Management Actions to Implement the Basel Convention Type of Action Institutional and Legal Analyses Institutional analysis Legal analysis and drafting of legislation Waste management planning Preparation of waste inventory and identification of related environmentally sound management options Assessment of transboundary movement of hazardous and other wastes Development of policy, strategy and plan to meet waste management objectives Implementation of waste management Establishment of institutional and administrative frameworks and capacity for implementation of national legislation Reduction of transboundary movements of hazardous wastes, including adherence to the control system Promotion of cleaner technologies Introduction of cleaner technologies to minimise generation of hazardous wastes and other wastes Most Relevant Funding Sources National public budgets Basel Convention funds Bilateral grant donors Multilateral grant donors National public budgets Basel Convention funds Bilateral grant donors Multilateral grant donors National public budgets Bilateral grant donors Multilateral grant donors Basel Convention funds (Environmental NGOs) National public budgets Basel Convention funds (Bilateral grant donors) (Multilateral grant donors) National public budgets Basel Convention funds Multilateral grant donors Bilateral grant donors National public budgets Multilateral grant donors Bilateral grant donors Basel Convention funds National public budgets Company self-financing (Multilateral grant donors) (Bilateral grant donors) (Basel Convention funds) Basel Convention funds National environmental funds National public budgets Industry / trade organisations Multilateral grant donors Bilateral grant donors Environmental NGOs Company self-financing International development banks and funds Bilateral lending agencies Commercial banks National environmental funds C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

21 20 Type of Action Information, education and awareness-raising in support of waste minimisation and environmentally sound management of wastes Establishment of waste management infrastructure (collection, recovery, storage and disposal, etc) Most Relevant Funding Sources Basel Convention funds National environmental funds National public budgets Multilateral grant donors Bilateral grant donors Environmental NGOs National Public budgets Company user charges International development funds and banks Bilateral grant donors and lending agencies Commercial banks 245 Step 5: Strategy / Plan A country may opt to develop a national strategy and/or action plan that defines and describes the country's strategy, commitments and the specific actions it intends to undertake in respect to the management of waste This should be done in a manner which is consistent with international best practices and in accordance with the provisions of the Basel Convention In order to be as realistic/accurate as possible, the action plan should take into account the availability of funding from potential national and international sources identified in the previously mentioned step 4, preferably after having made informal contact with said donors in order to gauge the possibilities of obtaining funding and other assistance This will entail prioritisation of management options to maximise impact in a short and longer-term perspective Otherwise the strategy / plan may end up being a wish list out of touch with reality Issues to consider when prioritising funding opportunities include: the priority that the funding sources give to the activities concerned; the extent of support received from the funding sources previously, especially in the field of environment; complementarity with related activities in the country; best mix of national and international funding sources C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

22 21 A key element of the plan is a financial resource mobilisation strategy, which may include the following: 1 List of actions to be undertaken in the short, medium and long term, distinguishing between the types of action included in Table 21 regarding: - institutional and legal analysis - waste management planning - implementation of waste management 2 Funding sources and type of funding for the actions listed in item 1, broken down by: - national and international sources; - type and conditions: grant, loan, mixed, interest rate, repayment, etc - responsibility for repayment of loans and possibly on-lending conditions to be imposed on beneficiary companies and organisations 3 Procedures and action to be taken to obtain funding 4 Addresses, tel etc of contact persons in funding agencies It is important that the action plan be prepared through a process which involves all relevant stakeholders in order to ensure full endorsement of the plan The aim is to secure commitment and active participation in the implementation of the plan 246 Step 6: Raising of National and International Funds Before any action can begin, the resources required will have to be procured More substantive dialogues should follow up on the informal contacts initially made, either directly, or through the local aid co-ordination body The aim would be to align expectations with the latest prospects and receive advice form the potential funding sources on how to proceed The Basel Secretariat and/or the Basel Convention Regional Centres can assist a country in preparing project documents and in managing the administrative procedures when applying for financial assistance from the likely funding sources The Secretariat has developed project proposal formats for applying for assistance from the Convention's own funds and could further assist in building strategic partnerships with funding agencies and coordinating the development of proposals In some cases, the Secretariat or the Regional Centres could submit proposals to donors on behalf of an applicant country or a group of countries C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

23 Step 7: Implementation of Actions When funding has been obtained, implementation of action can proceed For a number of actions, the implementation process may extend over one or more years It is therefore advisable to establish close contact with the funding agencies concerned and to maintain the dialogue on assistance beyond the requirements in terms of reporting for short-term projects for which assistance has been received C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

24 23 National/ international sources of finance National financing most important 3 Sources of Funding for Implementing the Basel Convention Funds to cover waste management initiatives may be sought from national or international sources of funding National sources include the public budget in the given country, financing by users, etc International sources include various United Nations organisations, global or regional development banks, bilateral assistance programmes, etc The funds available from international sources are limited and cannot cover all the financing needs of Parties National sources of finance therefore play a very important role In addition, in the case of international loan-based financing, the national entity that takes the loan will eventually have to repay the loan This may also be considered national financing In acknowledgement of the importance of national financing, a short overview of national funding sources is included below in Section 31 Next, an overview of international funding sources is presented in Section 32 This is supported by fact sheets for the most important international sources of funding presented in Part II - Fact Sheets on Possible Funding Sources for Waste Management 31 National Funding Sources in Overview National sources may be divided into the following groups: Financing by users; Public budgets; Environmental funds; NGOs; Domestic banks and lending institutions as well as private operators 311 Financing by Users Financing by the users of waste management services may either come from user charge payments or user self-financing User charge payments are a source of financing to sustain the provision of certain waste management services, for example, waste collection and treatment User self-finance describes the situation where waste generators (eg large in- C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

25 24 dustrial companies) invest in and operate their own recycling systems, treatment facilities, etc In most countries, financing from user charges is seen as the main source of finance for covering operating and maintenance costs associated with the provision of waste management services The practise in some countries is that investment costs should also be covered by user charges, whereas in other countries, public budgets are seen as a main source of finance for investments The legal and institutional framework governing user charge payments in the individual country is extremely important for determining the level of financing - and, hence, the targets that can be achieved For example, in some countries users may pay a fixed fee, whereas in other countries, payment is made according to actual use of the services User self-financing is used to varying degrees in the countries and is especially important when it comes to implementation of cleaner technologies and production processes since many companies may be willing to make investments that will subsequently reduce their operating costs and help develop and maintain a green image However, user self-financing may also be induced by legal requirements For example, companies may be required by law to set up systems for taking back a used product (eg batteries) 312 Public Budgets Financing may come from public budgets at various government levels (this may be federal, state, municipal, etc depending on the country in question) Public budgets may provide three relevant types of funding: Funding of the operating costs of running the administrative apparatus (ministries, etc); Subsidies for operation and maintenance of services to the population; Investment funding, which will typically take place within the framework of procedures for public investment planning and be included in public investment plans (PIP) or similar plans Public budget funding at the national level is most often agreed upon in a negotiating process between line ministries and the Ministry of Finance/Treasury and Ministry of Economic Development (or similar) concerning annual budgets and investment planning The financing is provided in the form of transfers (grants) from an annual budget Ultimately, the source of this financing is the taxpayers In developing and transition countries the funds available from the public budget are generally scarce and environmental concerns must compete with other pertinent issues such as health care, water supply, etc C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

26 Environmental Funds Some countries have established environmental funds The funds are typically public funding sources outside the regular public budget They primarily provide funding in the form grants and/or loans, sometimes including the use of revolving funds Environmental funds are the only source of national finance, which usually uses a formalised project-by-project application procedure Financing is usually allocated on the basis of certain overall priorities and on the quality of the application for funds 314 National NGOs National NGOs in developing and transition countries generally have very few financial resources of their own They are often dependent on financing from international NGOs and/or multilateral and bilateral grant institutions However, they may play an important part in providing in kind contributions for implementation of actions such as education, awareness raising and training 315 Domestic Banks, Lending Institutions or Private Operators These sources of finance may be willing to invest in infrastructure However, this will depend on the financial viability of doing so Hence, the future revenue from user charges (possibly combined with subsidies from the public budget) must be sufficient to ensure acceptable financial returns on the investment Domestic loan capital may be scarce (or very expensive) because of low creditworthiness of a country (banks must get capital from the international capital markets and may only be able to do so at high interest rates) Some banks have access to capital on better terms through credit lines from international development banks, see Section 321 below 32 International Funding Sources in Overview International sources of funding may be divided into the following main groups based on their different sources of capital and different types of financing provided: Global or regional banks and funds: International development banks; International development funds; International commercial banks Further: Financial Mechanisms of the Basel Convention; Multilateral grant donors; Bilateral lending facilities; Bilateral grant donors; International NGOs C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

27 International Development Banks It is common to distinguish between regional and global development banks While only countries in a specific region are eligible for financing from the regional development banks (eg Asia, Africa, Latin America etc), global development banks operate in all regions of the world Mode of operation Lending terms Criteria and access In principle, the development banks operate in a manner similar to that of commercial banks They get their capital on the international capital markets The difference is that they are established by a number of member countries that subscribe capital to the bank The bank is able to get international capital on favourable terms and pass these terms on to countries with low creditworthiness, which would not normally allow them to borrow capital on such terms Compared to commercial banks, development Banks have more elaborate procedures for loan approval, which means that the transaction costs of the loans are typically higher than for commercial loans The core business of the development banks is to provide loans for large investment projects 1 - often in a co-financing arrangement with other sources of finance When considering the lending terms, there are two key parameters: maturity and grace period Grace period refers to the initial period within which no payment for principal and/or interest is due Maturity denotes the period during which the loan must be repaid Development banks are generally able to provide more favourable terms (longer periods) than commercial banks Like the commercial banks, development banks also provide loans on the basic criteria that projects must be financially viable In addition, development banks are guided by priorities decided by the member countries concerning countries, sectors, themes, etc to be supported Development Banks typically provide lending for programmes and projects to countries based on country strategies outlining the priorities Country strategies are negotiated with the relevant authorities in the country concerned and take into account national policies and strategies Access to this type of funding is therefore, to a high degree, dependent on the ability to establish a national agenda on the issue in question Most development banks have local offices or missions in the larger recipient countries 322 International Development Funds International development funds comprise financing institutions that provide loans on concessional or "soft" terms This means that there is a grant element in the loan This may be through providing the loan with low or no interest and/or without the fees normally charged by banks International Development Funds comprise institutions/facilities such as IDA and EDF (see fact sheets in Part II- Fact Sheets on Possible Funding Sources for Waste Management) 1 adjustment loans C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

28 27 Mode of operation Development funds are established by a number of member countries that pledge and give donations to the fund These donations are the primary source of capital The funds are often managed by international development banks or have a link with these For example, the IDA and the IBRD are both World Bank institutions and the EDF is managed by the EIB The funding is intended for countries with very low creditworthiness These countries may not even be able to borrow from international development banks The financing is limited to the resources available in the particular fund and the operation is therefore a question of allocation of these scarce resources between the countries eligible for funding Lending terms Criteria and access Funds are mainly allocated to large investment projects The loans are provided at very favourable terms with low or no interest, small or no fees and with longer maturities and grace periods than development banks can offer Some development funds also provide funding in the form of grants The procedures for deciding on criteria and possible access to development funds are very similar to those used by development banks, see above 323 International Commercial Banks International commercial banks are lending institutions that provide capital on market terms Their capital comes from borrowings on international capital markets Their criteria for providing finance are focused on creditworthiness and financial viability of the project Most developing and transition countries will not be able (or cannot afford) to borrow from these banks because of low creditworthiness and high costs of borrowing (often very high interest rates) 324 Financial Mechanisms of the Basel Convention The Basel Convention has two financial mechanisms 2 the Trust Fund for the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (the Basel Convention Trust Fund); the Trust Fund to Assist Developing Countries and Other Countries in Need of Technical Assistance in the Implementation of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (the Technical Cooperation Trust Fund) The Basel Convention Trust Fund The Basel Convention Trust Fund provides financial support for the ordinary expenditures of the secretariat of the Basel Convention for which sustainable funding is required In accordance with the Terms of Reference of the Trust 2 The financial mechanisms of the Basel Convention were determined subsequent to the entry into force of the Convention at the First Conference of the Parties to the Basel Convention C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

29 28 Fund, the contributions by Parties to the Basel Convention Trust Fund are agreed based on the United Nations scale of assessment and are adjusted to take into account the difference between the membership of the United Nations and the Parties to the Basel Convention The Technical Cooperation Trust Fund - technical assistance activities - enlargement of the scope of the Fund The Technical Cooperation Trust Fund is a voluntary trust fund, which receives mainly earmarked contributions by donors for technical cooperation activities and for the facilitation of participation in the meetings of the Basel Convention Technical assistance activities include: Development of national legislation, regulations, and standards; Identification of main hazardous waste streams and preparation of national plans for the management of hazardous wastes; Ad hoc advice provided to Parties, non-parties, and others (eg, industry, universities); Providing information and documentation related to the Basel Convention; The COP 5 in 1999 decided, on an interim basis, to enlarge the scope of the Technical Cooperation Trust Fund to assist the Contraction Parties which are developing countries or countries with economies in transition in cases of emergency and compensation for damage resulting from incidents arising from transboundary movements of hazardous wastes and other wastes covered by the Basel Convention Funds may be used for the following purposes: Emergency assistance, including rapid assessment of the magnitude of damage occurred or damage that may occur, emergency measures to prevent or mitigate the damage and a clearing-house mechanism to help identify Parties and entities in a position to provide assistance; Compensation for damage to and re-instatement of the environment; Capacity building and transfer of technology and putting in place of measures to prevent accidents and damage to the environment caused by transboundary movement of hazardous wastes and other wastes and their disposal A set of interim guidelines on administration of the funds, including application procedures were approved by COP 6 - administration and procedures -budget and contributions The Technical Co-operation Trust Fund is administered by UNEP, in accordance with the financial regulations and rules of the United Nations, the general procedures governing the operations of the Environment Fund of the United Nations Environment Programme, and the terms of reference for the administration of this Trust Fund Figures from the Secretariat of the Basel Convention indicate that contributions amounts to approximately one quarter of the budget for the years The budget is approximately USD 46 million for 2003 and USD 53 million C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

30 29 dollars for 2004 For 2003, only 15 % of the budget has been paid as per 30 September 2003 Another mechanism of importance under the Convention is the facilitation by the Secretariat of bilateral assistance activities among Parties, including capacity building activities Significant funding for some of the Basel Convention Regional Centres is not channelled through the Technical Cooperation Trust Fund but provided on a bilateral basis Additional funds for projects implementing the Strategic Plan Finally, the COP 6 authorised, on an exceptional basis, the Executive Secretary to the Basel Convention in addition to the approved budget, to use USD 12 million in the period from the reserve and balance of the Basel Convention Trust Fund for activities to implement the Strategic Plan 325 Multilateral grant donors These organisations mainly include UN organisations providing grant funds The most important in relation to support for actions related to waste management are described in separate fact sheets in Part II - Fact Sheets on Possible Funding Sources for Waste Management Mode of operation Criteria and access Generally, these organisations are established to deal with specific issues, with global implications such as environmental issues, health, agriculture etc They often have multiple functions related to the particular issue covered of which support for projects in developing/transition countries is just one The funds for the grants provided come from donations from various governments and are often quite scarce Most often the type of support provided is technical assistance such as capacity building, training, information dissemination etc The multilateral donors have various criteria for support, which are often linked to strategic concerns and the prospects of replicability and sustainability since the funds available are limited Some donors rely on a country-programming approach to establish priorities and are often also represented locally or in the region Others have more limited funds and also a more centralised approach 326 International NGOs International NGOs obtain their funds from membership fees, etc from individuals, trusts and legacies, donations from corporations, and government and aid agencies These organisations are to a large degree dependent on the sources of finance mentioned above and have only limited funds, which could be called their own However, they can play an important role in relation to providing support to national NGOs and, in particular, in relation to projects focusing on awareness and education as well as small-scale, community based actions C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

31 Bilateral Lending Facilities and Grant Donors A number of countries are engaged in development assistance They apply a variety of modalities for providing bilateral assistance (assistance from one country to another) to developing and transition countries There are some similarities, however Mode of operation Terms and conditions Criteria and access Most countries have established national aid agencies, most often under the Ministry of Foreign Affairs or similar ministry Most countries provide assistance to the environment and some specifically to the waste sector Some countries have set up special facilities for environmental assistance through their Ministry of Environment The most common form of bilateral assistance is grant based However, many countries also have some kind of facility for loan-based finance In some countries this is placed within the aid agency, in other countries it is a separate institution The loan terms offered differ between countries It is common that bilateral assistance is based on a country and sector programming approach The aid agencies are usually well represented in the countries of operation through the embassy or similar representation Flexible facilities for small-scale projects, which is decentralised to the representation in the country concerned is often seen 328 Innovative Financing In recent years new approaches have been taken to finance environmental projects, often referred to as "innovative financing" Innovative financing strategies are designed to fill the finance gaps that traditional financing modalities cannot cover They typically combine grants from the public sector or international development funding sources with private sector investment in order to bring down the project costs, making the environmental projects more affordable for companies and users and the debt service more manageable Innovative financing for environmental projects in developing countries and countries with economies in transition typically falls in two main categories: grants to countries to establish revolving funds, and concessional lending There is considerable scope for developing these concepts and combining them to suit the needs of the Basel Convention Parties Experience from projects in related fields could serve as inspiration 329 Partnership with Industry The Basel Convention is in the process of exploring the possibility of developing partnerships with industry The objective is to launch initiatives and undertake activities to improve environmental performance of selected sectors in in- C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

32 31 dustry and enhance their contribution to sustainable development 3 This is to be attained through a structured dialogue among industry sectors and between industry and the Parties The initiative is not as such a means to provide funding for environmental action but an instrument for pro-active exchange of information, experience and know-how among concerned stakeholders The initiative will contribute to the prevention of waste generation without necessarily requiring any significant investment However, it will reduce the financial needs to achieve environmental sound management of hazardous and other wastes 3 See UNEP/CHW6/32/Add1 (October 2002): Partnership with Industry C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

33 32 4 About the Fact Sheets on Possible Funding Sources for Waste Management In addition to the Guidance Note, a set of fact sheets for important international sources of funding have been prepared The fact sheets are intended to provide key information about the financing institution or programme to a broad target group by providing an overview of: The strategies and priorities of the sources of funding with particular focus on regions/countries and waste-related issues: The main types of financing offered (some sub-programmes or specific small windows of financing may not be mentioned unless there is a specific waste-related reference): The key aspects in relation to access to funding seen from the point of view of the recipient countries The fact sheets are presented in Part II- Fact Sheets on Possible Funding Sources for Waste Management II of this report The fact sheets provide a snapshot of the situation as per September , however, priorities and modalities of the financing institutions change over time It is, therefore, advisable always to check with the web-sites of the financing institutions to get the latest information and to contact the institutions directly to discuss concrete projects and funding possibilities at an early stage The fact sheets are presented with reference to the categories presented in Chapter 3: International development banks; International development funds; Multilateral grant donors; and Bilateral financing institutions 4 The information provided in the fact sheets was collected from the web-sites of the relevant institutions Subsequently, the fact sheets were sent to the institutions for comments (As per 8 October 2003, comments have not yet been received) C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

34 33 For a quick overview, Annex 1 presents a table covering all the financing institutions (except bilateral) for which fact sheets have been elaborated as well as some additional sources with a more limited role in relation to financing of projects in the waste sector For the bilateral institutions, a selected number of fact sheets have been prepared Other bilateral financing agencies are invited to submit fact sheets for inclusion in the guidance note Furthermore, reference is made to the draft UNITAR/IOMC Guidance Note on Financial Resources Mobilisation 5, which contains a number of fact sheets for bilateral sources of funding 5 UNITAR/IOMC: "Financial Resource Mobilisation for the Sound Management of Chemicals", Working Draft, July 2001 C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Guidance Note_01_01_mstDOC

35 Danish Environmental Protection Agency Financial Resource Mobilisation for Implementation of the Strategic Plan for the Basel Convention Part II - Fact Sheets on Possible Funding Sources for Waste Management October 2003

36 2 Danish Environmental Protection Agency Financial Resource Mobilisation for Implementation of the Strategic Plan for the Basel Convention Part II - Fact Sheets on Possible Funding Sources for Waste Management October 2003 Report no Issue no 01 Date of issue 8 October 2003 Prepared Checked Approved AEJ, BIM, EB, HHU APA HHU C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

37 3 Table of Contents 1 Fact sheets on Possible Funding Sources for Waste Management 5 11 Introduction 5 12 International Development Banks Asian Development Bank (ADB) The Central American Bank for Economic Integration (CABEI) The Central American Bank for Economic Integration Council of Europe Development Bank (CEB) European Bank for Reconstruction and Development (EBRD) European Investment Bank (EIB) The Inter-American Development Bank International Bank for Reconstruction and Development (IBRD) Nordic Investment Bank International Development Funds International Development Association Multilateral Grant Donors (EU) The CARDS Programme European Development Fund (EDF) Instrument for Structural Policies for Pre-accession (ISPA) The MEDA Programme TACIS Multilateral Grant Donors (UN) United Nations Development Programme (UNDP) United Nations Environment Programme (UNEP) Multilateral Grant Donors (Other) Global Environment Facility (GEF) Bilateral Donors Canadian International Development Agency (CIDA) Danish International Development Assistance (Danida) Department for International Development (DFID) Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Direction Générale de la Coopération Internationale et du Développement (DGCID) Japan International Co-operation Agency (JICA) 62 C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

38 4 177 The US Agency for International Development (USAID) 64 Table of Appendices Appendix 1 List of International Financing Institutions C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

39 5 1 Fact sheets on Possible Funding Sources for Waste Management 11 Introduction In addition to the Guidance Note on Financial Resource Mobilisation for Implementation of the Strategic Plan for the Basel Convention (Part I), a set of fact sheets for important international sources of funding have been prepared The fact sheets are intended to provide key information about the financing institution or programme to a broad target group by providing an overview of: The strategies and priorities of the sources of funding with particular focus on regions/countries and waste-related issues: The main types of financing offered (some sub-programmes or specific small windows of financing may not be mentioned unless there is a specific waste-related reference): The key aspects in relation to access to funding seen from the point of view of the recipient countries The fact sheets provide a snapshot of the situation as per September , however, priorities and modalities of the financing institutions change over time It is, therefore, advisable always to check with the web-sites of the financing institutions to get the latest information and to contact the institutions directly to discuss concrete projects and funding possibilities at an early stage The fact sheets are presented with reference to the categories presented in Part I - Draft Guidance Note, Chapter 3: International development banks; International development funds; Multilateral grant donors; and Bilateral financing institutions 1 The information provided in the fact sheets was collected from the web-sites of the relevant institutions Subsequently, the fact sheets were sent to the institutions for comments (As per 8 October 2003, comments have not yet been received) C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

40 6 For a quick overview, Annex 1 presents a table covering all the financing institutions (except bilateral) for which fact sheets have been elaborated as well as some additional sources with a more limited role in relation to financing of projects in the waste sector For the bilateral institutions, a selected number of fact sheets have been prepared Other bilateral financing agencies are invited to submit fact sheets for inclusion in the guidance note Furthermore, reference is made to the draft UNITAR/IOMC Guidance Note on Financial Resources Mobilisation 2, which contains a number of fact sheets for bilateral sources of funding 2 UNITAR/IOMC: "Financial Resource Mobilisation for the Sound Management of Chemicals", Working Draft, July 2001 C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

41 7 12 International Development Banks 121 Asian Development Bank (ADB) 1 Introduction The Asian Development Bank is a lending institution for the developing countries in the Asian region In 2002, ADB approved 89 loans and four equity investments valued at USD 57 billion For technical assistance (TA) operations, ADB approved 324 TAs valued at USD 1787 million The Asian Development Fund (ADF) is ADB's "concessional" or "soft-loan" window and is funded by ADB's donor member countries At 31 December 2001, total contributed ADF resources amounted to US$1818 billion ADF has been replenished seven times and the current ADF period (ADF VIII) covers the period Support to Waste Related Sectors The overall objective of ADB is poverty reduction, focusing on promotion of pro-poor, sustainable economic growth, social development, and good governance The Bank's Poverty Reduction Strategy recognises that environmental sustainability is a prerequisite for pro-poor economic growth and efforts to reduce poverty Environmental sustainability is also one of three crosscutting themes of the Banks Long Term Strategic Framework (LTSF) The Bank has an environmental policy, documented in a policy paper from 2002 (available on the web-site) The Environment Policy is grounded in ADB's Poverty Reduction Strategy and LTSF The Policy emphasises a number of priority areas of which the ones below are the most relevant in relation to the waste sector: Environmental quality improvement, with a special focus on urban environment and health, encompassing support for environmental infrastructure, including waste management (solid, and hazardous waste) and support for industrial pollution projects Capacity building within environmental management, focusing on environmental planning and policy, data and information management, regulatory systems and environmental governance Playing a facilitating role in the context of multilateral environmental agreements (MEAs), including treaties, conventions, and protocols, particularly to support its regional cooperative efforts The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, and the Stockholm Convention on Persistent Organic Pollutants (POPs) are both mentioned among the MEAs, which are relevant for ADB support Of the total approved lending in 2002 (USD 56 billion), 45% or about USD 250 million was allocated for environmental protection projects In the planned allocations for 2003 environmental protection projects is allocated 8% of total lending The ADB is a member of the Global Environment Facility (GEF) The policy, adopted by GEF in May 1999 on Expanded Opportunities for Regional Development Banks, allows ADB to blend its own resources for sustainable development at the country level with GEF grant resources allocated to address global environmental issues The GEF is described in a separate fact sheet 3 Co-operation Countries and Regions The ADB provides support to its developing member countries, which are classified into three groups, which determine their eligibility for ordinary Bank funding and funding from ADF, respectively Group A includes countries with very low per capita GNP and limited debt-repayment capacity and are fully eligible C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

42 8 for ADF financing Group B includes lower middle-income countries at intermediate levels of economic development and with increasing capacity to service their debt and are eligible for limited amounts of ADF funding in particular circumstances Group C includes upper middle-income and high-income countries with relatively high debt-repayment capacity, which are only eligible for Bank funding Borrowers comprise the following countries: Group A: Bhutan, Cambodia, Lao, Maldives, Nepal, Kyrgyz Republic, Mongolia, Tajikistan, Kiribati, Samoa, Solomon Islands, Tuvalu, Vanuatu Group B: Cook Islands, Marshall Islands, Tonga, Bangladesh, Pakistan, Sri Lanka, Viet Nam, Indonesia Group C: Afghanistan, China, Fiji Islands, Hong Kong China, India, Kazakhstan, Korea, Malaysia, Micronesia, Myanmar, Nauru, Papua New Guinea, Philippines, Singapore, Taipei China, Thailand, Timor-Leste, Turkmenistan, Uzbekistan In addition, East Timor and Azerbaijan are new borrowers and are eligible for ADF funding 4 Organisations Supported The four categories of eligible borrowers are (i) a member country of the Bank; (ii) an agency, instrumentality, or political subdivision of a member country; (iii) an entity or enterprise operating in the territory of a member country; and (iv) an international or regional agency or entity concerned with the economic development of the region 5 Type of Financial Assistance Provided The ADB extends loans and equity investments to its developing member countries and provides technical assistance for the planning and execution of development projects and programs and for advisory services Most ADB financing is designed to support specific projects, but ADB also provides other lending modalities such as technical assistance loans; credit lines; program, sector, sector development program, and private sector loans Program loans are given by the Bank to assist in developing a sector (or subsector) as a whole and improving a sector's performance through appropriate policy and institutional improvements over the medium to long term Sector lending is for project-related investments The purpose of a sector loan is to assist in the development of a specific sector or subsector by financing a part of the investment in the sector A sector development program (SDP) is a combination of an investment (project or sector) and a policybased (program) loan as well as, where appropriate, attached technical assistance (TA) The SDP is not a separate lending modality, but represents a combination of policy and investment-based assistance Lending terms for ADB loans include a market-based interest rate, commitment fee and front-end fee The repayment term is based mainly on the economic life of the project The financial condition of the borrowing entity and the revenue-earning capacity of the project may also be taken into account Subject to these primary project considerations, the repayment period will depend on the debt-service capacity of the borrowing country The grace period will depend mainly on the time needed for the project to become operational but may be modified to reflect country considerations ADF loans carry very low interest rates For project loans (ie, other than quick-disbursing program loans) the terms are: 32-year repayment period including an 8-year grace period For quick-disbursing program loans the terms are: 24-year repayment period including an 8-year grace period There is no commitment fee associated with ADF-financed loans 6 Project Size and Co-financing Requirements C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

43 9 ADB actively promotes co-financing, defined as financing mobilised from sources other than the borrower or project sponsors to augment its own assistance, with funds from commercial financial institutions, official funding agencies and export credit agencies For every dollar lent by ADB in 2002, an additional 50 cents was mobilised through co-financing operations There is no information regarding specific minimum requirements as to project size The average project size in 2002 was USD 64 million for all lending types 7 Access to Assistance ADB formulates operational strategies for individual countries, including economic and policy analyses, and undertakes country performance reviews which provide a basis for policy dialogue with the governments of developing member countries ADB develops Country Strategy and Programs which include identification of individual technical assistance and loan projects and programs A project loan is normally not taken up for processing unless it forms part of the Bank's country assistance plan (CAP) for the DMC The Bank assists its DMCs in the formulation and, if necessary, reformulation of projects so that viable projects may eventually result The resident missions are responsible for country programming, project and technical assistance processing, and portfolio management and project administration and should be addressed to discuss any project ideas There are resident missions in 16 countries and one regional resident mission (contact details available on the web-site) 8 Other Information None 9 Contact Details Headquarters: 6 ADB Avenue, Mandaluyong City 0401 Metro Manila, Philippines Mailing Address: PO Box Manila, Philippines Tel: Fax: There are 24 other offices around the world The contact details can be found on the web-site 10 Information Sources Web-site: wwwadborg C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

44 The Central American Bank for Economic Integration (CABEI) 1 Introduction The Central American Bank for Economic Integration (CABEI) is the development bank of the region It was established to promote the integration and balanced economic and social development of the Central American countries To that end, it supports public and private programs and projects that generate productive employment and contribute to improving productivity and competitiveness, as well as raising the human development indices of the region From its founding through March 1999, CABEI has approved 1,763 loans for a total of US$5,2384 million, 85% of which have been disbursed 2 Support to Waste Related Sectors Infrastructure and environmental sustainability are among the priority areas of attention: Infrastructure: The construction, rehabilitation and modernization of the highway infrastructure and rural roads, which connect production centers and markets The elimination of obstacles to trade and competition in the transport sector and the development of energy production Environmental Sustainability: a) Participate in the CTO (Oxygen Transfer) market; b) Collaborate in programs, which mitigate climate change and promote clean production processes; and c) Contribute to energy conservation Under the heading of sustainable development, three areas of action are emphasised: Micro, Small and Medium Enterprises It provides credit and technical assistance through banks, finance companies or Non-government Organizations (NGOs) Environment It finances environmental projects, channeling resources from a special fund devoted to that purpose It promotes projects involving water shed management and protection, energy conservation and development of energy sources, climate change and bio-diversity, environmental education and legislation and others related to Sustainable Development Social Development It channels resources for programs targeted at poverty reduction, education, health care, integral rural development and housing, as well as providing financing for Municipalities 3 Co-operation Countries and Regions Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica 4 Organisations Supported Governments, Autonomous centralized and/or decentralized Institutions, Private Investors, Private Banks, State Banks, Financial Institutions, Micro, small and midsize enterprises (through Financial Intermediaries), Municipalities or Town Councils (through Financial Intermediaries), Service providing municipal enterprises, Community or development associations, Regional or Central American organizations, and Non Government Organizations C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

45 11 5 Type of Financial Assistance Provided CABEI provides the following main types of loans 6 Financial Intermediation through Commercial Banks and other Financial Intermediaries Both public and private banks and other intermediary institutions approved by the Bank s Credit Division can participate in this mechanism to intermediate its resources Acting as a second floor bank, CABEI provides resources to the participating financial intermediaries, and they, in turn, finance private sector projects 7 Co-financing When a financial intermediary is unable to provide total financing due to the project s size, limited borrowing capacity or legal constraints, CABEI can provide direct financing for private sector projects 8 Public Sector Financing Under this mechanism CABEI channels resources to projects carried out by the Central American governments or autonomous institutions The credit applications must be backed by a sovereign guarantee or the generic guarantee of the autonomous institution 9 Other Mechanisms CABEI is presently exploring the use of innovative financial mechanisms, in order to provide financial solutions adapted to the particular needs of each project According to the operative and financial structure of CABEI, the resources are channeled through different financial funds, including the following: The Ordinary Fund, which is used to take care of pre-investment requirements or investment in industrial, agricultural or service projects, among others, especially in the private productive sector The Central American Fund for Economic Integration, by means of which financing is provided to the governments, regional organizations, municipalities, autonomous institutions, and mixed economy businesses, to enable them to carry out transportation, telecommunications, energy, technical education, management of natural resources, storage, and basic, social, and tourism infrastructure projects The Financial Fund for Housing, by means of which resources are channeled to financial institutions for urban development and construction of housing projects The Special Fund for the Promotion of Central American Exports (FEPEX) and the Special Fund for the Strengthening of Central American Exports (FOEXCA), by means of which CABEI acts as a fiduciary to channel the resources from the European Union to strengthen the export capacity of the region The Fund for Technical Cooperation, by means of which resources are channeled for the development of studies and projects of great regional significance to support the Bank's credit activity The Regional Fund for the Conversion of External Debt, by means of which the exchange of debt for projects in areas that are priorities for social development, such as education, is facilitated The Central American Fund for the Environment, by means of which resources are captured and channelled for the protection of the environment and the rational use of the natural resources C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

46 12 10 Project Size and Co-financing Requirements For private sector loans: Up to 50% of the amount of the project is financed A minimum of 25% can be financed by the financial intermediary s own resources or with CABEI resources, and the remaining 25% must be provided by the investor For public sector projects up to 90% of the total amount of the investment can be financed In special cases, such as Social Development programs this percentage can be increased The percentage to be financed will be determined by CABEI, taking into account the debt capacity of the financial intermediary and the project with regard to the amount to be financed The amount of CABEI participation must be sufficient to ensure proper project execution with its own resources or those provided by CABEI Said financing will not exceed 75% of the total investment required for the project The portion of the credit that CABEI provides must be guaranteed by the intermediary itself and not by the user However the direct portion that CABEI provides must be guaranteed by the entity in charge of the project CABEI can share guarantees with the participating Financial Institutions 11 Access to Assistance To obtain intermediated credit, a client can: Go to a CABEI approved commercial bank in his/her country to request information about how to apply for credit with CABEI funds Alternately, the client can go to the Bank s offices in the given country to obtain information about available CABEI resources and be provided with the names of approved commercial banks To obtain direct/co-financed credit a client should go to the CABEI Office in his/her country of origin to obtain the eligibility requirements and the appropriate procedures for obtaining a loan For public sector financing: The application must be supported by a feasibility study carried out according to the guidelines established by CABEI, which can be obtained at the Regional Offices located in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica 12 Other Information None 13 Contact Details The Regional Offices represent the Central American Bank of Economic Integration in each of the five funding countries of the bank They are located in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica They maintain direct and permanent contact with clients, promoting and defining operational strategies for each country Additionally, they analyze credit for financial intermediaries and administer the credits in coordination with the Credit Division The contact details of each regional office is available on the web-site 14 Information Sources Web-site: C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

47 The Central American Bank for Economic Integration 1 Introduction CABEI is a multilateral organisation established to promote the integration and balanced economic and social development of the Central American countries 2 Support to Waste Related Sectors Overview of priority sectors, which may be related to waste and indication of volume of financing to these sectors 3 Co-operation Countries and Regions List of the regions or countries in focus of the particular institution 4 Organisations Supported Governments, Autonomous centralised and/or decentralised Institutions, Private Investors, Private Banks, State Banks, Financial Institutions, Micro, small and mid-size enterprises (through Financial Intermediaries), Municipalities or Town Councils (through Financial Intermediaries), Service providing municipal enterprises, Community or development associations, Regional or Central American organisations, and Non Government Organisations 5 Type of Financial Assistance Provided Whether assistance is given as loans, grants, technical assistance or other Includes loan terms and costs Public sector financing: Under this mechanism CABEI channels resources to projects carried out by the Central American governments or autonomous institutions The credit applications must be backed by a sovereign guarantee or the generic guarantee of the autonomous institution 6 Project Size and Co-financing Requirements Maximum/minimum requirements with regard to project size/volume of support provided Requirements of co-financing and possible funding sources (other financial institutions or the recipient country itself) 7 Access to Assistance To obtain direct/co-financed credit a client should go to the CABEI Office in his/her country of origin to obtain the eligibility requirements and the appropriate procedures for obtaining a loan Public sector financing: The application must be supported by a feasibility study carried out according to the guidelines established by CABEI, which can be obtained at the Regional Offices located in Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica 8 Other Information Other possible requirements, issues & comments 9 Contact Details Address, phone number and fax 10 Information Sources Homepages, other C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

48 Council of Europe Development Bank (CEB) 1 Introduction The Bank provides loans to European countries for the financing of social projects, responds to emergency situations and aims to improve living conditions and social cohesion in the less advantaged regions of Europe In 2002, projects amounting to ECU 16 billion were approved 2 Support to Waste Related Sectors Protection of the environment is not a key priority, but is mentioned among other fields of action and constituted 13% (or ECU 2085 million) of projects approved in 2002 Social infrastructures related to protection of the environment, including treatment of solid waste, reduction and recycling of waste is specifically mentioned hereunder 3 Co-operation Countries and Regions Council of Europe Member States: Albania, Holy See, Poland, Belgium, Hungary, Portugal, Bulgaria, Iceland, Romania, Croatia, Italy, San-Marino, Cyprus, Latvia,, Czech Republic, Liechtenstein, Slovenia, Denmark, Lithuania, Spain, Estonia, Luxembourg, Sweden, Finland, Malta, Switzerland, France, Moldova, The former Yugoslav Republic of Macedonia, Germany, Netherlands, Turkey, Greece, and Norway 4 Organisations Supported Council of Europe member state governments and local authorities as well as other financing institutions are eligible No private person or enterprise is entitled to obtain a loan from the Bank Applications for loans should be submitted and approved by the relevant member state government 5 Type of Financial Assistance Provided The Bank provides: loans, paid over either directly to the borrowers responsible for implementation of the projects (states, local authorities), or to financial institutions in the case of projects grouping together several beneficiaries (SMPs) guarantees, within the framework of loan operations carried out by other financing sources Loans are provided with a market-based interest rate with up to 15 (exceptionally 20) years repayment period and up to five years grace period Loans are provided for two types of projects: individual projects characterised by a single borrower and a single project manager, sector-based multi-project programmes (SMPs), grouping together more than one project for operations in one or more of the Bank's fields of action 6 Project Size and Co-financing Requirements Financing is provided for up to 50% of the total investment 7 Access to Assistance The loan applications are presented by the member states Hence, borrowers first have to obtain approval of the project from the government of the country concerned The project is based on a presentation file (or feasibility report): this describes the project's socio-economic impact as well as its technical aspects and gives details of the cost of the projected investment, the C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

49 15 financing plan, the share of financing requested of the Bank, the procedures envisaged for monitoring the project and the guarantees provided The CEB's various departments can assist the applicant body in preparing the file, and in particular with: formulating the social needs and the purpose of the project; describing the elements to be included in the request for financing; formally drafting the file to be presented 8 Other Information Projects must be in accordance with council of Europe conventions 9 Contact Details The CEB has one central office and there are no offices in the member states 55, Avenue Kleber F Paris Cedex 16 France Tel: +33 (0) Fax: +33 (0) Information Sources Web-site: wwwcoebankorg C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

50 European Bank for Reconstruction and Development (EBRD) 1 Introduction The EBRD was established in 1991 to support central and eastern Europe and ex-soviet countries in the transition towards a market-based economy The purpose of the EBRD is to foster transition towards open market-oriented economies and to promote private and entrepreneurial initiatives in the central and eastern European countries EBRD provides loans, equities and guarantees for large projects in 27 countries from central Europe to central Asia 2 Support to Waste Related Sectors The Bank's environmental policy (second revision approved in April 2003) recognises that sustainable development is among the highest priorities of the EBRD's activities The policy also states that the EBRD will attach particular importance to promoting energy and resource efficiency, waste reduction, redevelopment of brownfield sites, renewable resources and resource recovery, recycling, and the use of cleaner production in the projects it finances Municipal and environmental infrastructure is among the sectors prioritised The EBRD has invested some EUR 15 billion in municipal and environmental infrastructure in 57 projects (as of December ) In 2002, the EBRD provided financing of more than EUR 558 million in support of 13 projects to improve municipal infrastructure and energy efficiency 3 Co-operation Countries and Regions Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Georgia, Hungary, Kazakhstan, Kyrgyz Republic, Latvia, Lithuania, FYR Macedonia, Moldova, Poland, Romania, Russia, Serbia and Montenegro, Slovak Republic, Slovenia, Tajikistan,, Turkmenistan, Ukraine and Uzbekistan 4 Organisations Supported The EBRD works primarily with the private sector It also works with publicly owned companies, to support privatisation, restructuring state-owned firms and improvement of municipal services 5 Type of Financial Assistance Provided The EBRD provides loans, equity investment, and guarantees directly for large projects Lending for large investment projects is provided with market-based interest rate, repayment period up to 15 years and grace period up to 3 years The EBRD also operates credit lines with financial intermediaries for smaller loan operations To give entrepreneurs and small firms greater access to finance, the EBRD supports financial intermediaries, such as local commercial banks, micro-business banks, equity funds and leasing facilities Investment criteria are consistent with EBRD policy, but financial intermediaries make independent decisions about which small and medium enterprises (SMEs) they fund 6 Project Size and Co-financing Requirements For large investment projects, the minimum lending amount is EUR 5 million The EBRD finances up to 35% of the total project cost and higher if there is a state guarantee The borrower is required to provide a minimum of 15% of the total investment C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

51 17 7 Access to Assistance A loan application must be submitted by the borrower to the head office or local offices The Bank prepares country strategies, which set the framework for the operations in each country The strategy defines the main areas prioritised and should be consulted in the process of preparing an application The application must be based on a business plan The Bank has a financing form on the web-site, which may be filled in with information about a prospective project and submitted for further consideration The EBRD can provide limited guidance and assistance to project preparation 8 Other Information None 9 Contact Details EBRD One Exchange Square London EC2A 2JN United Kingdom Switchboard tel: Central fax: The EBRD has local offices in a number of countries Contact details are available on the web-site 10 Information Sources Web-site: wwwebrdcom C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

52 European Investment Bank (EIB) 1 Introduction The EIB is the European Union's financing institution, providing loans to EU countries towards financing capital projects according with the objectives of the EU Outside the EU the EIB implements the financial components of agreements concluded under EU's development aid and cooperation policies 2 Support to Waste Related Sectors According to the Corporate Operational Plan for , lending activity is geared to five operational priorities, of which environmental protection and improving the quality of life is one The Bank has set the target of providing between a quarter and one third of individual loans within the European Union for projects safeguarding and improving the environment, with a similar percentage to be applied in the EU Accession Countries Where the environment is concerned, the EIB s objectives are to: Preserve, protect and improve the quality of the environment; Protect human health; Ensure the prudent and rational utilisation of natural resources; Promote measures at an international level to deal with regional or worldwide environmental problems In financing any investment, the EIB applies the core environmental management principles of prevention, precaution and the polluter pays, as called for in EU policy The EIB targets environmental projects in four main fields, of which one is natural environment and nature protection, including municipal and hazardous waste management and eco-efficiency in industrial processes and products (to conserve resources and minimise the generation of waste) Lending for projects that contribute towards safeguarding the environment and improving the quality of life, both within and outside the European Union, totalled some EUR 9 billion in 2001 Finance worth EUR 5617 million in all was provided for projects for solid and hazardous waste, with most activities in EU countries and accession countries In the Accession Countries, lending for projects to protect the environment and improve the quality of life came to EUR 484 million, representing about 20% of aggregate individual loans In the Euro- Mediterranean Partnership Countries, EUR 580 million devoted to financing the environment Following a resolution of the Stockholm European Council, the Bank is to finance environmental projects with a European dimension in the St Petersburg and Kaliningrad regions (Russia) under a new EUR 100 million financing facility coming under the "Northern Dimension Environmental Partnership" The EIB participates in the METAP programme (see Appendix 1) 3 Co-operation Countries and Regions The EIB directs the bulk of its activity (85%) towards promoting the European economy In addition, in the context of the EU s development aid and cooperation policies, it operates in over 150 countries outside the Union: in the countries seeking EU membership, the Balkans, the Mediterranean Partnership countries, Africa, the Caribbean and the Pacific as well as Asia and Latin America C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

53 19 4 Organisations Supported The EIB lends to: private or public companies public authorities commercial banks international or national development finance institutions 5 Type of Financial Assistance Provided The EIB provides long term loans (4 to 20 years) of two types: Individual loans for large capital investment projects and global loans for small and medium-sized operations Global loans are loans to other financial institutions (regional/national), which can subsequently lend for smaller operations The loans are provided with interest rates on market terms The repayment period may be up to 12 years for industrial projects, and 20 years for infrastructure projects, or more in exceptional cases Grace periods for capital repayment may be obtained for the construction phase of the project Generally, neither processing, commitment nor any other fees are charged For projects aiming to rectify environmental degradation in the Mediterranean Partner Countries, EIB's loans can receive a 3% interest subsidy financed from the EU budget 6 Project Size and Co-financing Requirements The EIB acts as a complementary source of finance Individual loans are provided for amounts over EUR 25 million and covering up to 50% of the investment costs Global loans are provided for amounts above 20,000 EUR and below 25 million There is an active liaison between the Bank and DG Environment of the European Commission and the EIB provides co-financing of environmental projects through various EU programmes, such as ISPA, the European Regional Development Fund and the Cohesion Fund 7 Access to Assistance There is no standard procedure, official application form, questionnaire or required documentation for a first presentation of a project to the Bank Initial contacts to discuss a proposed project can be in any form, by telephone, fax, or letter For such first contacts, the project promoter should provide sufficient information to allow verification of compliance of the investment with EIB s objectives and have a welldeveloped business plan It is desirable for projects to be presented to the Bank at the earliest possible stage, especially in the case of infrastructure schemes and projects mounted under public-private partnerships In all cases, the EIB gives promoters a rapid response based on its knowledge of each country s economic and financial context At this stage the Bank checks whether the project envisaged meets its fundamental criteria, notably regarding eligibility, scale, sources of additional finance and economic sector 8 Other Information None C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

54 20 9 Contact Details Information and Communications Department Secretariat General 100 boulevard Konrad Adenauer L-2950 Luxembourg Tel: Fax: Specific contact information for country or region-specific desk managers is provided on the web-site 10 Information Sources Web-site: wwweiborg C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

55 The Inter-American Development Bank 1 Introduction The Inter-American Development Bank provides financial assistance to help accelerate economic and social development in Latin America and the Caribbean In addition to the Bank, the IDB Group consists of the Inter-American Investment Corporation (IIC) and the Multilateral Investment Fund (MIF) The IIC, an autonomous affiliate of the Bank, was established to promote the economic development of the region by financing small and medium-scale private enterprises The MIF was created in 1992 to promote investment reforms and to stimulate private-sector development The Bank also has a Fund for Special Operations for lending on concessional terms for projects in countries classified as economically less developed Over the course of 2002, the IADB committed USD 455 billion in 86 loan operations Out of this, 24 loans totalling USD 406 million was from the Fund for Special Operations The Bank also financed 336 technical cooperation projects totalling USD 654 million 2 Support to Waste Related Sectors The IADB has committed to the Millennium Development Goals, agreed to by 189 nations in 2002 at the United Nations Millennium Summit The goals include ensuring environmental sustainability as one out of 7 main goals The Bank approved an environmental strategy in July 2003 The strategy emphasises three areas for Bank action, one of which is environment and social development In this area, health and environment, and, in particular, urban environment is highlighted The Bank has a Sustainable Development Department and a special section for urban environment and pollution control Environmental projects have accounted for 10 percent of total Bank lending in recent years, including financings for environmental health, control of industrial pollution, protection of natural resources, sustainable development, renewable energy, and institutional strengthening 3 Co-operation Countries and Regions All developing member countries in South America (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela), Central America (Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama) and Latin America (Bahamas, Barbados, Dominican Republic, Guyana, Haiti, Jamaica, Suriname, Trinidad and Tobago) as well as Mexico 4 Organisations Supported The Bank may make loans or provide loan guarantees to any member country, any political subdivision or government organisation unit thereof, any independent agency, semi-public enterprise, or private enterprise in the territory of a member country, regional organisations composed of member countries, and to the Caribbean Development Bank The political subdivisions of a country include states, provinces, and municipalities, and decentralised government organisations such as State banks, development corporations, public utility companies, universities, and the like, that are legally empowered to enter into loan contracts with the Bank Any company in which the government has a proprietary interest of more than 50% is considered to be a public sector company Private enterprises, in whatever their form of organisation, must have the legal capacity to enter into loan contracts with the Bank Among the private undertakings that may be eligible to become borrowers from the Bank are corporations, other commercial companies, cooperatives, foundations, and the like C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

56 22 The Bank provides technical assistance to its developing member countries, and sub-regional or regional technical cooperation The following institutions of the borrowing member countries of the Bank are eligible to receive technical assistance: National governments and their political subdivisions The rest of the public sector, nongovernmental organisations (NGOs), and private entities with the legal authority to borrow funds and receive technical assistance Regional and sub-regional organisations composed of member countries that are beneficiaries of Bank operations 5 Type of Financial Assistance Provided The Bank is authorised to assist in the financing of development projects in its regional developing member countries by means of the following types of operations: Loans; Technical cooperation; Assistance in obtaining additional external financing to meet project needs; Guarantees extended by the IDB for loans from other sources Loans are provided with interest rates on market terms for the following types of operations: Loans for Specific Projects are designed to finance one or more specific projects or subprojects Loans for Multiple Works Programs are designed to finance groups of similar works which are physically independent of each other Global Credit Loans are granted to intermediary financial institutions (IFIs) or similar agencies in the borrowing countries to enable them to on-lend to end-borrowers Sector Adjustment Loans provide flexible support for institutional and policy changes on the sector or subsector level The Project Preparation Facility provides funding for supplementary activities necessary to prepare a project Direct Lending to the Private Sector, without sovereign guarantees, in each instance with the concurrence of the government of the member country At the outset, this financing would be targeted exclusively towards infrastructure and public utility projects providing services usually performed by the public sector The Bank finances technical cooperation activities to transfer technical know-how and expertise for the purpose of supplementing and strengthening the technical capacity of entities in the developing member countries It may take one of the following forms: Technical cooperation with Non-Reimbursable Funding, which is a subsidy granted by the Bank to a developing member country to finance technical cooperation activities Technical cooperation with Contingent-Recovery Resources, whereby the Bank finances technical cooperation activities where there exists a reasonable possibility of a loan, in which case, the borrower is obligated to reimburse the funding received from the Bank Technical cooperation with Reimbursable Resources, which is a loan financed by the Bank to carry out technical cooperation activities The Bank can guarantee loans made by private financial sources to public and private sectors The Bank can provide guarantees with or without counter-guarantees of the borrowing country's government Guarantees to private sector lenders without government counter-guarantee of the borrowing country, in whose territory the project is to be carried out, will not exceed 25% of the total cost of the project or $75 million, whichever is less The guarantees could be used for any kind of investment project, although the initial emphasis in guarantee operations will be on infrastructure projects C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

57 23 6 Project Size and Co-financing Requirements No requirements specified 7 Access to Assistance The framework for the Bank's operations in each country is established in country papers (CP) whose objectives are to establish the Bank's operational strategy for the country and define the programming guidelines for the dialogue with the local authorities The CP analyses the strategy and the development and investment policies of each borrowing country; assesses its development needs and constraints and defines the Bank's objectives, including its general and sectoral strategy for the country The CP is the main instrument used by the Bank to define the financial assistance and technical cooperation it will be providing to its borrowing member countries The document includes the Operations Annex which identifies the projects to be considered by the Bank in the country during the following twelve months Project ideas should be referred to the relevant country office 8 Other Information None 9 Contact Details 1300 New York Avenue, NW Washington, DC United States of America Tel: (1) The Bank has a number of country offices (contact details available at web-site) 10 Information Sources Web-site: wwwiadborg C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

58 International Bank for Reconstruction and Development (IBRD) 1 Introduction The IBRD is one among several World Bank organisations It is a lending institution providing low-interest loans to higher-income developing countries - some of which can borrow from commercial sources, but generally only at very high interest rates In fiscal 2002 IBRD provided loans totalling USD 115 billion in support of 96 projects in 40 countries 2 Support to Waste Related Sectors The World Bank has committed to the Millennium Development Goals, agreed to by 189 nations in 2002 at the United Nations Millennium Summit The goals include ensuring environmental sustainability as one out of 7 main goals In 2001, the World Bank endorsed an Environment Strategy to guide the Bank's actions in the environment area, particularly over the next five years The strategy sets out three overall objectives: 1) improving the quality of life, 2) improving the quality of growth, and 3) protecting the quality of the regional and global commons Some overall sectoral priorities are also emphasised These include, among others, environmental health and urban environment Under the latter, waste management, particularly industrial and hospital waste, is mentioned The environment strategy includes regional strategies, where the priorities under each of the overall objectives are indicated The table below highlights the waste related priorities mentioned for each region Region East Asia and Pacific Europe and Central Asia Latin America and the Caribbean Middle East and North Africa South Asia Sub-Saharan Africa Waste related priorities mentioned in the strategy Pollution management (water/air), ODS and POPs Health threats from toxic substances, ODS Health (solid and hazardous waste, toxic substances), clean production, ODS Agricultural pollution/soil contamination Urban pollution (waste management) Health (solid waste), ODS Health (disposal and management of hazardous waste), urban development There is no indicative budget for future activities within the environmental sector However, since 1990, WB lending to environmental projects has increased substantially (from almost zero to about USD 7 billion in 2000) In 2002, projects approved by IBRD for urban development and natural resource management constituted 12% of the total and a total lending amount of USD 14 billion 3 Co-operation Countries and Regions Eligibility for IBRD loans is determined on the basis of the creditworthiness of the country and a maximum per capita income Exceptionally, other factors (such as size) may determine access to IBRD loans As of mid 2003, the countries eligible for IBRD loans are those with a per capita income of less than USD 5,185 Information on countries eligible can be found on the web-site C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

59 25 4 Organisations Supported The IBRD may lend to (a) a member country; (b) a political subdivision of a member; and (c) any business, industrial, and agricultural enterprise in the territories of a member The IBRD generally prefers to lend directly to the entity responsible for the implementation and operation of the project for which the loan is made In this way, the Bank is better able to monitor the project's implementation efficiently and suggest corrective steps when there are shortcomings in project implementation If the member in whose territories the project is located is not itself the borrower, the member must guarantee the payment of the principal and interest and other charges on the loan Regional Organisations as Borrowers IBRD may finance a project to be carried out by an enterprise owned jointly by two or more member countries or by public or private entities of such members In this type of lending, IBRD requires either joint and several guarantees or several guarantees from the members in whose territories the project is located, as long as these guarantees together cover the total amount of the principal and interest and other charges on the loan 5 Type of Financial Assistance Provided The IBRD offers two basic types of loans: investment loans for goods, works, and services, and adjustment loans, which provide quick-disbursing financing to support policy and institutional reforms Regarding investment loans, the following types of loans are available: Adaptable Program Loans (APLs) are designed to provide funding for a long-term development program through a series of operations Authority for approval is with the Executive Directors for the first loan of each program and the long-term program agreement Emergency Recovery Loans are made to restore assets and productivity immediately after a major emergency (such as war, civil disturbance, or natural disaster) that seriously disrupts a member country's economy Financial Intermediary Loans support the development of financial institutions and provide funds to be channelled through intermediaries for general credit or for the development of specific sectors or subsectors Learning and Innovation Loans (LILs) are designed to support small, time-sensitive programs to build capacity, pilot promising initiatives, or to experiment with and develop locally-based models prior to large scale interventions LILs are modest in size with each loan not exceeding $5 million Approvals of LILs are at the management level rather than at the Executive Director level Sector Investment and Maintenance Loans are designed to bring investments, policies and performance in specific sectors or subsectors in line with agreed economic priorities Specific Investment Loans fund the creation of new productive assets or economic, social and institutional infrastructure or their rehabilitation to full capacity Technical Assistance Loans are designed to strengthen capacity in entities concerned with policies, strategies, and institutional reforms in such areas as public enterprise reform and divestiture, civil service and judicial reform, government budgetary management and the formulation of economic policy The Bank essentially facilitates access to capital in larger volumes, on better terms, with longer maturities, and in a more sustainable manner than the market provides Countries that borrow from IBRD have more time to repay than if they borrowed from a commercial bank 15 to 20 years with a three-to-five-year grace period before repayment of principal begins A limited number of grants are available through the Bank, either funded directly or managed through partnerships The 2003 budget is USD 157 million, covering 48 grant programs The World Bank also C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

60 26 administers some 850 donor trust funds disbursing more than USD 1 billion a year In the environmental sector, the most important programme is the Global Environment Facility, which is described in a separate fact sheet 6 Project size and Co-financing Requirements The IBRD does not operate with specific minimum or maximum requirements for project size or cofinancing 7 Access to Assistance IBRD assistance to countries takes place within the framework of the World Bank country assistance strategy for the given country, which defines the level and composition of assistance to be provided Country assistance strategies usually cover a three-year period and are publicly available on the web-site, pending the borrowing government s consent Project ideas should be discussed with the local World Bank representation for the given country for possible inclusion in the portfolio 8 Other Information None 9 Contact Details The World Bank 1818 H Street, NW Washington, DC USA tel: (202) fax: (202) For contacting more than 100 local representations in member countries refer to web-site 10 Information Sources Web-site: wwwworldbankorg C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

61 Nordic Investment Bank 1 Introduction The NIB is a multilateral financing institution owned by the five Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden) The NIB offers its clients loans and guarantees on market terms The NIB finances projects which are of mutual interest for the Nordic countries and for the borrower 2 Support to Waste Related Sectors The environment, including waste management, is a priority sector Specifically, it is part of the strategy of the NIB to play an important role in the financing of environmental improvement investments in the Nordic countries and in the Baltic Sea and Barents Sea regions The environmental policy of the NIB may be down-loaded from the web-site During the period , the Bank has granted environmental loans totalling EUR 36 billion In 2002, infrastructure for environmental protection, which includes waste management among other areas, accounted for 12% of loans outstanding 3 Co-operation Countries and Regions NIB operates within the Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden) in all emerging market countries, but priority is given to investments in the neighbouring areas to the Nordic region The NIB is authorised to provide special environmental investment loans to environmental projects in these areas, ie Poland, the Kaliningrad area, Estonia, Latvia, Lithuania and North West Russia (St Petersburg, the Leningrad area, the Karelian Republic and the Barents region) 4 Organisations Supported Public and private organisations 5 Type of Financial Assistance Provided The NIB provides medium to long term investment loans and guarantees Loans are provided with marketbased interest rates, a repayment period up to 20 years Environmental loans are generally given special treatment, for example longer repayment periods, than other loans In the neighbouring regions to the Nordic countries, the NIB has actively supported the development of national institutions to act as intermediaries for projects concerning the environment This means that part of the lending for environmental purposes, including waste management, is channelled through these local institutions - often as smaller loans 6 Project Size and Co-financing Requirements Loans are provided for up to 50% of the total project cost 7 Access to Assistance The applicant should submit a loan application including project business plan and feasibility study NIB provides guidance and, in some cases, assistance to borrowers in project preparation The application can be submitted to the head office or the local offices (see below) 8 Other Information None C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

62 28 9 Contact Details Fabianinkatu 34 PO Box 249 FIN Helsinki Finland Tel: Fax: NIB has local offices in some countries Details are available on the web-site 10 Information Sources Web-site: wwwnibankorg C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

63 29 13 International Development Funds 131 International Development Association 1 Introduction The International Development Association, IDA, is the World Bank s concessional lending window It provides long-term loans at zero interest to the poorest of the developing countries IDA credits and grants make up about one-quarter of the World Bank s financial assistance In fiscal 2002 IDA provided $81 billion in financing for 133 projects in 62 low-income countries IDA is financed by a partnership of donors, who come together every three years to decide on the amount of new resources required to fund IDA s future lending program and to discuss lending policies and priorities The most recent replenishment of the IDA trust fund meant $23 billion to poor countries over the three-year period which began on July 1, Support to Waste Related Sectors The IDA lends, on average, about $6-7 billion a year for different types of development projects, especially those that address peoples' basic needs, such as primary education, basic health services, and clean water and sanitation In 2002, projects approved by IDA for urban development and environmental & natural resource management constituted a total lending amount of USD 083 billion, which was equal to 10% of the total lending amount The World Bank, including the IDA, has committed to the Millennium Development Goals, agreed to by 189 nations in 2002 at the United Nations Millennium Summit The goals include ensuring environmental sustainability as one out of 7 main goals In 2001, the World Bank endorsed an Environment Strategy to guide the Bank's actions in the environment area, particularly over the next five years The strategy sets out three overall objectives: 1) improving the quality of life, 2) improving the quality of growth, and 3) protecting the quality of the regional and global commons Some overall sectoral priorities are also emphasised These include, among others, environmental health and urban environment Under the latter, waste management, particularly industrial and hospital waste, is mentioned The environment strategy includes regional strategies, where the priorities under each of the overall objectives are indicated The table below highlights the waste related priorities mentioned for each region Region East Asia and Pacific Europe and Central Asia Latin America and the Caribbean Middle East and North Africa South Asia Sub-Saharan Africa Waste related priorities mentioned in the strategy Pollution management (water/air), ODS and POPs Health threats from toxic substances, ODS Health (solid and hazardous waste, toxic substances), clean production, ODS Agricultural pollution/soil contamination Urban pollution (waste management) Health (solid waste), ODS Health (disposal and management of hazardous waste), urban development 3 Co-operation Countries and Regions C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

64 30 Three criteria are used to determine which countries are eligible to borrow IDA resources: Relative poverty, defined as per capita gross national income below an established threshold, currently US$875 Lack of creditworthiness to borrow on market terms and therefore a need for concessional resources to finance the country's development program Good policy performance, defined as the implementation of economic and social policies that promote growth and poverty reduction As per 2003, 81 countries are eligible to borrow from IDA Some countries, such as India and Indonesia, are eligible for IDA due to their low per capita incomes, but are also creditworthy for some IBRD borrowing These countries are known as "Blend" borrowers Information on current eligible countries can be found on the web-site Since most of IDA's resources are donated by member governments, the amount of funds available for lending is virtually fixed once donations are pledged IDA therefore must allocate resources among eligible borrowing countries Lending allocations are determined on a three-year rolling basis and are revised every year when the World Bank assesses the quality of each borrower's policy performance resulting in a performance rating of each borrower The allocation of IDA's resources is determined primarily by each borrower's rating, but per capita income is also a determinant, with the poorest of the eligible countries receiving higher allocations for a given performance level Finally, for borrowers that are eligible for both IDA and IBRD funds ("Blend countries"), allocations must take into account those countries' creditworthiness for and access to other sources of funds as well as their ability to use IDA resources effectively to tackle poverty 4 Organisations Supported The IDA may lend to (a) member country; (b) the government of a territory included within IDA's membership; (c) a political subdivision of any of the foregoing; (d) a public or private entity in the territories of a member or members; or (e) a public international or regional organisation IDA normally makes credits to member countries only, whether the member itself or another entity is responsible for project implementation 5 Type of Financial Assistance Provided The IDA provides interest-free loans (credits) typically with 20, 35 or 40 years to repay and a 10-year grace period There is no interest charge, but credits do carry a small service charge of 075 percent on disbursed balances While the bulk of IDA financing over 70 percent in the financial year 2002 is for investment projects, IDA also provides adjustment credits (non-project) The IDA also provides grants In 2002, the donor countries decided that more of the money should be provided as grants Going forward, 18 to 21 percent of IDA resources will be used for grants 6 Project Size and Co-financing Requirements The IDA does not operate with specific minimum or maximum requirements for project size or cofinancing 7 Access to Assistance Reference should be made to the World Bank country assistance strategy, which defines the level and composition of assistance to be provided to the country in question based on needs and on portfolio performance Country assistance strategies usually cover a three-year period and are publicly available on C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

65 31 the web-site, pending the borrowing government s consent Project proposals should be referred to the relevant local World Bank representation 8 Other Information None 9 Contact Details The World Bank 1818 H Street, NW Washington, DC USA tel: (202) fax: (202) For contacting more than 100 offices in member countries refer to web-site 10 Information Sources Web-site: wwwworldbankorg C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

66 32 14 Multilateral Grant Donors (EU) 141 The CARDS Programme 1 Introduction The CARDS programme (Community Assistance for Reconstruction, development and Stabilisation) is an EU programme to promote stability and peace in the Western Balkans through grant support to investment and institution building The programme underpins the Stabilisation and Association Process which is intended to help the region to secure political and economic stabilisation while also developing closer associations between the Western Balkans and the EU, opening a road towards eventual EU membership once the conditions have been met The budget allocation for the programme in is EUR 465 billion 2 Support to Waste Related Sectors The environment is listed among sectors supported Within this sector, the focus is on harmonisation to EU law, institution building and reduction of environmental health risks In 2003, about 7% of assistance focused on the environment sector 3 Co-operation Countries and Regions Albania, Bosnia and Herzegovina, Croatia, Serbia, Montenegro and the former Yugoslav Republic of Macedonia 4 Organisations Supported Assistance can be provided to the State, entities under United Nations jurisdiction and administration, federal, regional and local bodies, public and semi-public bodies, the social partners, organisations providing support to businesses, cooperatives, mutual societies, associations, foundations and nongovernmental organisations 5 Type of Financial Assistance Provided Assistance is given in the form of grants 6 Project Size and Co-financing Requirements There is no specific requirement specified, but it is emphasised that co-financing should be sought whenever possible 7 Access to Assistance The framework for CARDS assistance is provided in country strategic papers, indicative programmes and annual action programmes The Country Strategy Paper provides the strategic framework in which EC assistance will be provided in the period It sets out EU co-operation objectives, policy response, and priority fields of cooperation based on an assessment of the partner country s policy agenda and political and socio-economic situation The multi-annual indicative programme highlights programme objectives, expected results and conditionality in the priority fields of co-operation for period Annual action programmes sets out the projects to be supported and the funding available, within the guidelines defined by the indicative programme C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

67 33 Project ideas should be presented to the relevant EU delegation or to the agency in charge of programme management (see below) for possible inclusion in the programme 8 Other Information None 9 Contact Details DG External Relations is responsible for political direction and for multi-annual programming (Indicative Programmes) European Union assistance in Albania, Bosnia and Herzegovina and Croatia managed by the European Union's Delegations in those countries The European Agency for Reconstruction is responsible for assistance in Serbia and Montenegro, and the former Yugoslav Republic of Macedonia The EuropeAid Co-operation Office manages all regional programmes EuropeAid Co-operation Office Rue de la Loi 41, Office 4/ Brussels, Belgium Directorate General for External Relations Rue de la Loi, Brussels, Belgium European Agency for Reconstruction Egnatia 4, Thessaloniki 54626, Greece Tel Fax The contact details for the EU delegations can be found on the web-site of the Directorate General for External Relations 10 Information Sources Web-sites: EuropeAid Co-operation Office: Directorate General for External Relations: European Agency for Reconstruction: C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

68 European Development Fund (EDF) 1 Introduction The European Development Fund is the principal financial instrument of the EU policy of development aid to African, Caribbean and Pacific (ACP) States The EDF is funded by the Member States, covered by its own financial rules and managed by a specific committee The Member States decide the EDF budget via agreements that are subsequently ratified by the national parliament of each Member State Each EDF is concluded for a period of around five years The ninth EDF ( ), based on the Cotonou Agreement, has been allocated EUR 135 billion over a period of five years In addition, the unexpended balances transferred from previous EDFs total EUR 99 billion 2 Support to Waste Related Sectors The central objectives for EU-ACP cooperation are poverty reduction, sustainable development and progressive integration of ACP countries into the world economy The strategic framework for country cooperation strategies sets out five objectives, of which the promotion of environmental sustainability is one Under the EU's policy for integration of the environmental dimension in developing countries, a number of issues eligible for aid and assistance are mentioned, including the following waste-related concerns: Global environmental issues (climate change, desertification, biological diversity, etc); Transboundary issues (air, water and soil pollution); Urban environment problems (waste, noise and air pollution, water quality, etc); Sustainable production and use of chemical products; Environmental problems related to industrial activities; Sustainable patterns of production and consumption The following types of project activities are supported: pilot projects in the field; schemes to build up the institutional and operational capacities of actors in the development process (governments, civil society, NGOs, etc); drawing up of policies, plans, strategies and programmes for sustainable development; formulation of guidelines, operating manuals and instruments aimed at promoting sustainable development (databases on the Internet); support for the development and application of environment assessment tools; inventory, accounting and statistical work to improve the quality of environmental data; making local populations and key actors in the development process aware of sustainable development issues; promotion of trade in environment-friendly products; support for multilateral processes In 1999, only a small proportion of aid to ACP States was allocated to environmental projects - approximately 25% or EUR 83 million Out of the EUR 135 billion under the 9 th EDF, EUR 10 billion in the form of grants are allocated to support in accordance with national indicative programmes, EUR 13 billion to regional cooperation, and EUR 22 billion to private sector investment financing schemes 3 Co-operation Countries and Regions The 77 ACP States which participate in the Cotonou agreement as per August 2003 are as follows: South Africa (not fully), Antigua and Barbuda, the Bahamas, Barbados, Belize, Botswana, Cameroon, Congo (Brazzaville), the Cook Islands, the Ivory Coast, Dominica, the Dominican Republic, Fiji, Gabon, Ghana, C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

69 35 Grenada, Guyana, Jamaica, Kenya, the Marshall Islands, Mauritius, Micronesia (Federated States of), Namibia, Nauru, Nigeria, Niue, Palau, Papua New Guinea, St Kitts and Nevis, St Lucia, St Vincent and the Grenadines, Senegal, the Seychelles, Surinam, Swaziland, Tonga, Trinidad and Tobago, Zimbabwe The least-developed ACP states which, in certain cases, benefit from special treatment: Angola, Benin, Burkina Faso, Burundi, Republic of Cape Verde, Central African Republic, Chad, the Comoros, Democratic Republic of the Congo, Djibouti, Ethiopia, Eritrea, the Gambia, Guinea, Guinea-Bissau, Equatorial Guinea, Haiti, Kiribati, Lesotho, Liberia, Malawi, Mali, Mauritania, Madagascar, Mozambique, Niger, Rwanda, Samoa, São Tome and Principe, Sierra Leone, the Solomon Islands, Somalia, Sudan, Tanzania, Tuvalu, Togo, Uganda, Vanuatu, Zambia 4 Organisations Supported The following entities are eligible for support: ACP states regional or inter-state bodies to which one or more ACP states belong and which are authorised by those states joint bodies set up by the ACP states and the EU to pursue certain specific objectives Subject to agreement from the ACP State/States, the following bodies are also eligible: national or regional public or semi-public agencies, departments or local authorities of the ACP states and, in particular, their financial institutions and development banks companies, firms and other private organisations and private operators of ACP states enterprises of a EU Member State 5 Type of Financial Assistance Provided The EDF consists of several instruments: Budgetary support Projects and programme grants Credit lines, guarantee schemes and equity participation for the private sector 6 Project Size and Co-financing Requirements At the request of the ACP States, EDF resources may be applied to co-financing It is emphasised that special consideration shall be given to the possibility of co-financing in cases where Community participation will encourage the participation of other sources of finance and where such financing may lead to an advantageous financial package for the ACP State concerned Co-financing may be in the form of joint or parallel financing 7 Access to Assistance The programming for grant assistance to individual countries (EUR 10 billion in the 9 th EDF) consists of the preparation of a national indicative programme for each country describing the focal sector(s) on which support should be concentrated; the most appropriate measures and operations for attaining the objectives and targets in the focal sector(s); and the resources reserved for projects and programmes outside the focal sector(s) The programme is founded on a Country Support Strategy (CSS) based on the country s own medium-term development objectives and strategies and an indication from the Community of the indicative programmable financial allocation from which the country may benefit The latter is based on a combined assessment of needs and performance of the country in question The programming for regional assistance (EUR 13 billion in the 9 th EDF) follows a similar procedure C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

70 36 Three EU entities of the EU Commission are involved: The Directorate General for External Relations and the Directorate General for Development are responsible for the programming of external assistance The EuropeAid Co-operation Office, a department of the Commission, is responsible for project cycle management of the individual activities to be undertaken under the programmes - from identification to evaluation Both national and regional strategy papers and indicative programmes can be downloaded from the websites of DG External Relations and DG Development Project ideas should be discussed with the EC delegation in the relevant country for inclusion in indicative programmes 8 Other Information None 9 Contact Details EuropeAid Co-operation Office Directorate Africa, Caribbean and Pacific Rue de la Loi 41, Office 4/ Brussels, Belgium Directorate General for External Relations Rue de la Loi, Brussels Directorate General for Development development@ceceuint Mailing address not available on website The EC has delegations in a number of EC countries The contact details can be found on the web-site of the Directorate General for External Relations 10 Information Sources Web-sites: EuropeAid Co-operation Office: Directorate General for External Relations: Directorate General for Development: C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

71 Instrument for Structural Policies for Pre-accession (ISPA) 1 Introduction ISPA is one of the three EU financial instruments (with Phare and Sapard) to assist the candidate countries (except Malta, Cyprus and Turkey) in the preparation for accession to the EU Over the period from 2000 to 2006, a total of EUR 104 billion a year (at 1999 prices) will be made available for infrastructure projects in the field of environment and transport 2 Support to Waste Related Sectors ISPA concentrates on assisting the candidate countries in the implementation of the investment heavy EU directives, ie directives that are costly to implement Within waste management, the following Directives are mentioned in various ISPA documents: The Waste Framework Directive The Landfill Directive The Municipal Waste Incineration Directives The Hazardous Waste Incineration Directive The Packaging Waste Directive Priority would be given to projects which: Comply with an investment-heavy directive: such as the draft landfill Directive, hazardous waste management Directives, incineration Directives; Have an important effect on human health: eg uncontrolled landfills leaching into water supplies or polluting emissions to air or uncontrolled hazardous waste disposals; Ηelp to prevent damage in environmental sensitive zones The following pre-requisites for ISPA eligibility are mentioned: Will operate in an adequate administrative and institutional framework; Fit into a waste management plan in the terms of the waste framework Directive; The polluter pays principle should be fully observed In , approved environmental projects constituted 4314% of all approved projects and represented a total ISPA contribution of EUR 244 billion Out of this group, 1588% of the contributions were dedicated to the waste sector amounting to a total of EUR 387 million 3 Co-operation Countries and Regions Bulgaria, Czech Republic, Estonia, Hungary, Lithuania, Latvia, Poland, Romania, Slovakia, and Slovenia 4 Organisations Supported Assistance is provided to the national authorities in the accession countries In each country, a central entity is designated as the authority through which funds are channelled and has the overall responsibility for the management of the funds The implementing agencies supported are restricted to those operating within an administrative legal framework This means that they can be public bodies (national authorities, local authorities) or public-private partnerships There are special principles and requirements which must be followed in case of support to public-private partnerships 5 Type of Financial Assistance Provided Financial assistance is provided in the form of grants for large investment projects C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

72 38 A small part of ISPA's budget may also be used to fund preparatory studies and technical assistance A clear link has to be shown between measures of these kinds and the projects funded by ISPA 6 Project Size and Co-financing Requirements For investment projects, a co-financing of minimum 25% is required and only projects with a cost above EUR 5 million can be supported The requirement to co-financing can be reduced to 15% in special cases The combined assistance from ISPA and other EU assistance must not exceed 90% of the total cost 7 Access to Assistance For each country a national ISPA strategy for each sector is prepared The strategy provides the framework for project identification and set out the criteria to be used to select and appraise proposed projects The strategies are based on the overall accession documents: Accession Partnerships and the national programmes for the adoption of the aquis Each country has appointed a national ISPA co-ordinator Via the co-ordinator, the countries can propose projects, which are part of the sector strategy Applications must be sent to the ISPA Directorate of DG Regional Policy (see below) The application then needs approval from EU Commission and the ISPA Management Committee There is an ISPA Manual providing detailed information on policies and procedures It can be downloaded from the web-site of DG Regional Policy 8 Other Information ISPA represents an intermediate stage between EU's aid to third countries and the Cohesion Fund providing financial support to EU member states and is due to change over time, resembling more closely the Cohesion Fund as actual accession comes nearer This move will entail an increasing decentralisation in procedures for implementation 9 Contact Details The DG Enlargement is responsible for co-ordinating the accession negotiations between the EU and the candidate countries The DG Regional Policy is responsible for EU management of ISPA Directorate General for Regional Policy Directorate F: ISPA and pre-accession measures Rue de la Loi 200 B-1049 Brussels Tel: (+32) Fax: (+32) Contact information for EU delegations in candidate countries and the national ISPA co-ordinators can be found on the DG Regional Policy web-site 10 Information Sources Web-site of DG Regional Policy: C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

73 The MEDA Programme 1 Introduction The Euro-Mediterranean Partnership was launched at the 1995 Barcelona Conference between the European Union and it s 12 Mediterranean Partners (called the Barcelona Process) The MEDA programme is the principal financial instrument of the European Union for the implementation of the Euro- Mediterranean Partnership The Programme offers technical and financial support measures to accompany the reform of economic and social structures in the Mediterranean partner countries The first phase of the MEDA programme was the period of where the programme accounted for EUR 34 billion On November 2000 a new regulation establishing MEDA II for the period of was adopted The funding of the second phase amounts to EUR 535 billion 2 Support to Waste Related Sectors Sustainable rural development and environment is one among five sectors of co-operation Within this area, specific objectives for natural resource management are to support the governments of the MEDA countries in managing their environmental and coastal resources, and to help them integrate current resource management practices into their development policies At the level of regional cooperation, the Short and Medium-Term Priority Environmental Action Programme (SMAP) is a framework programme of action for the protection of the Mediterranean environment under the Euro-Mediterranean Partnership The SMAP Partners have agreed on five priority fields of action, including integrated waste management and hot spots (polluted areas and threatened components of biodiversity) Within these two areas, priorities are: Preparation and implementation of national plans, data bases and pilot projects for the integrated management of (a) municipal waste, (b) industrial waste, and (c) hazardous waste Preparation of guidelines for more effective waste management Establishment of comparable statistical methodologies and national waste inventories Identification of waste disposal methods and sites presenting a risk for the environment and setting up infrastructures and taking measures to tackle these problems Launching of initiatives to promote waste reduction, re-use and recycling Reinforcement of local management capacity and promotion of pilot initiatives to tackle systematically waste from tourism-related activities Preparation of national guidelines for the disposal of dredging spoils and used oils Establishment of emergency environmental plans for the integrated management of highly polluted Mediterranean urban areas Development and implementation of specific emergency programmes to reduce highly polluting emissions in industrial areas Setting up and implementation of management plans, pilot projects and demonstration actions to secure the future of the most valuable and threatened natural resources 3 Co-operation Countries and Regions The EU's 12 partners are: Morocco, Algeria, Tunisia (Maghreb); Egypt, Israel, Jordan, the Palestinian Authority, Lebanon, Syria (Mashrek); Turkey, Cyprus and Malta; Libya currently has observer status at certain meetings C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

74 40 4 Organisations Supported The programme may apply to States, their local and regional authorities as well as actors of their civil society 5 Type of Financial Assistance Provided Assistance is provided in the form of grants The MEDA programme includes a special instrument whereby EIB loans to the partner countries within the environment can be given an interest rate subsidy (see also fact sheet on EIB) 6 Project Size and Co-financing Requirements There are no specific requirements, however, co-financing is encouraged 7 Access to Assistance The co-operation framework is described in indicative programmes and financing plans The national and regional indicative programmes define the main goals, guidelines and priority sectors of Community support in the fields concerned based on the priorities determined with the Mediterranean partners The financing plans are drawn up at national and regional level and are based on the indicative programmes These plans contain a list of the projects for financing and are generally adopted annually Project ideas should be discussed with the EC delegation in the relevant country for inclusion in the relevant programmes 8 Other Information None 9 Contact Details DG External Relations is responsible for political direction and for multi-annual programming (Indicative Programmes), while EuropeAid Co-operation Office is responsible for managing the project cycle and annual financing plans EuropeAid Co-operation Office Directorate "Europe, Caucasus, Central Asia" Rue de la Loi 41, Office 4/ Brussels, Belgium Directorate General for External Relations Directorate "Eastern Europe, Caucasus and Central Asian Republics" Rue de la Loi, Brussels The EC has delegations in most partner countries The contact details can be found on the web-site of the Directorate General for External Relations 10 Information Sources Web-sites: EuropeAid Co-operation Office: Directorate General for External Relations: C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

75 TACIS 1 Introduction Launched by the EC in 1991, the Tacis Programme provides grant-financed technical assistance to 13 countries of Eastern Europe and Central Asia, and mainly aims at enhancing the transition process in these countries In the first eight years of its operating, TACIS committed a total of Euro 4,226 million of funding to projects and environment and nuclear safety received 20% of the funds A Council Regulation (No 99/2000) was adopted in January 2000 providing a new framework for the TACIS programme TACIS has special sub-programmes for multi-country activities These are comprised by the Tacis Regional Cooperation Strategy Paper and Indicative Programme which was adopted by the European Commission on 11 April Support to Waste Related Sectors The new regulation from 2000 states that TACIS is to provide assistance totalling EUR 3138 billion until the end of 2006 and to focus on 6 areas of co-operation, of which one is promotion of environmental protection and management of natural resources According to the new regulation, a maximum of three areas of co-operation should be identified for each country In addition, nuclear safety is mentioned as a separate area of concern to be targeted where relevant The following sub-components are mentioned under promotion of environmental protection and management of natural resources: development of sustainable environmental policies and practises promotion of harmonisation of environmental standards with European Union norms improvement of energy technologies in supply and end use promotion of sustainable use and management of natural resources, including energy saving, efficient energy usage and improvement of environmental infrastructure For nuclear safety, the priorities are: Promotion of an effective safety culture, support to the establishment of strategies for the management of spent fuel, decommissioning and waste management, contribution to international initiatives The regulation specifies three areas for particular attention One of these areas is "the need to reduce environmental risks and pollution, including transboundary pollution" Further, environmental infrastructure and networks is mentioned as one out of three priority sectors for TACIS investment financing For Regional Cooperation, Sustainable management of natural resources has been selected as one out of three priority themes for , focusing mainly on water, while also supporting biodiversity, forest resources and climate change Several of the programmes established may be relevant for waste related funding: The Municipal Investment Support Programme offers support in the traditional feasibility studies, where closely linked with an investment The programme is in operation in the Russian Federation only with a budget of EUR 3 million The Tacis Cross-border Cooperation Programme supports actions on the borders between the Russian Federation, Ukraine, Belarus and Moldova with their central European neighbours and the European Union The Tacis Small Project Facility is part of this Programme: it promotes integration at local level C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

76 42 (local trade, economic cooperation, environment, tourism and agriculture), by means of grants up to a maximum value of EUR 200,000 The Tacis Bistro facility is designed to respond quickly to requests for support for small scale projects within the country programmes in Russia, Ukraine, Georgia, Armenia and Kazakhstan As a rule, projects last no more than nine months and are funded up to EUR 100, Co-operation Countries and Regions The following countries are eligible for TACIS support: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgystan, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan Russia and Ukraine are the main beneficiaries, receiving 50% and 20% of the funds, respectively, in the period Organisations Supported TACIS co-operation takes place at the government level, however, private organisations can also benefit from the support Direct funding of equity and stakes in individual companies is excluded 5 Type of Financial Assistance Provided Assistance is provided in the form of grants for technical assistance and for investment financing According to the new regulation, max20% of the annual budget can be allocated to investment financing 6 Project Size and Co-financing Requirements The new regulation focuses on maximisation of impact through a limited number of projects of sufficient scale (according to the TACIS web-site: projects of at least EUR 2 million in Russia and Ukraine and EUR 1 million in the other partner countries) Co-financing is encouraged - but there is no specific requirement 7 Access to Assistance The framework for TACIS assistance is provided in the Partnership and Co-operation Agreements (PCAs), National Country Programmes and regional programmes The PCAs are legal frameworks setting out the political, economic and trade relationships between the European Union and the partner countries Each PCA is a ten-year bilateral treaty signed and ratified by the EU and the individual state, formalising the EU s relationship with the country concerned Within this, the Tacis programme acts as the instrument of cooperation to reach the joint political goals The national country programmes include indicative programmes, valid 3-4 years, which identify priorities and areas of co-operation as well as annual or biannual action programmes setting out the projects to be supported and the funding available, within the guidelines defined by the indicative programme Project ideas should be discussed with the EC delegation in the relevant country for inclusion in action programmes The regional programmes are based on indicative and action programmes as well However, several of them can offer funds for smaller projects on a flexible basis Details on access to these programmes can be found on the web-site The Bistro facilities are managed by the European Commission's Delegations in Moscow, Kiev, Tbilisi and Almaty (Bishkek) C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

77 43 8 Other Information None 9 Contact Details Since January 2001 DG External Relations has been responsible for political direction and for multi-annual programming (Indicative Programmes), while EuropeAid Co-operation Office is responsible for managing the project cycle and Annual Programmes EuropeAid Co-operation Office Directorate "Europe, Caucasus, Central Asia" Rue de la Loi 41, Office 4/ Brussels, Belgium Directorate General for External Relations Directorate "Eastern Europe, Caucasus and Central Asian Republics" Rue de la Loi, Brussels The EC has delegations in a number of EC countries The contact details can be found on the web-site of the Directorate General for External Relations 10 Information Sources Web-sites: EuropeAid Co-operation Office: Directorate General for External Relations: C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

78 44 15 Multilateral Grant Donors (UN) 151 United Nations Development Programme (UNDP) 1 Introduction The United Nations Development Programme (UNDP) provides grant funding for economic and social development Funds come from the voluntary contributions of Member States of the United Nations and affiliated agencies, who have committed themselves to providing approximately USD 1 billion yearly to UNDP's regular resources Other funding arrangements, including cost-sharing, provide approximately USD 1 billion in additional resources each year 2 Support to Waste Related Sectors The UNDP has committed to the Millennium Development Goals, agreed in 2002 at the United Nations Millennium Summit The goals include ensuring environmental sustainability as one out of 7 main goals The UNDP offers grant funding for technical assistance in six areas of practice, including energy and environment The major areas of support include national strategic, policy and regulatory frameworks for environmentally sustainable development; national and local-level capacity development to support participatory approaches to environmental management; and helping countries to meet their commitments under the global environmental conventions on biodiversity, climate change and desertification For 2002, estimated total programme expenditures within the energy and environment sector were USD 298 and constituted 1611% of total expenditure The UNDP is the implementing agency in relation to a number of trust funds and facilities In relation to environment and the waste sector, the following are the most important: The Global Environment Facility (GEF) is described in a separate fact sheet The Public-Private Partnerships for the Urban Environment Facility (PPPUE) is a multi-partner and multi-donor facility The PPPUE focuses on the overarching goal of developing tripartite partnerships (government, business, civil society) to improve the access of the urban poor to basic urban services, including solid waste management Under the facility, innovative partnership grants support projects activities in one or more of the following areas: Establishing adequate policy, legal and institutional frameworks for public private partnership development at the local level, eg review of legislation, support to policy development Building local capacity for public private partnerships, eg training on PPP, local strategy development, tools and manuals Designing and implementing innovative partnership arrangements Specific activities may cover advisory inputs into project identification, evaluation and financing; local legal frameworks, contractual arrangements and business plan development The Thematic Trust Fund on Environment is a UNDP trust fund focusing on three priority service lines: Integrating environmental management concerns into national development frameworks, strengthening local environmental governance, and addressing global and regional environmental problems Resources under the TTF will focus on low-income countries, the Least Developed Countries and the Africa region, while a small proportion of the resources will be used to fund global and regional initiatives The funding target for the Environment TTF is USD 60 million over a period of three years ( ) 3 Co-operation Countries and Regions C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

79 45 The UNDP works with developing and transition countries globally and has offices in 166 countries 4 Organisations Supported UNDP projects may be executed in the following ways: (a) National execution This refers to management by a governmental entity and is the norm; (b) Execution by a United Nations agency or multilateral development bank; (c) Execution by an NGO; or (d) Direct execution This refers to cases where management is by UNDP itself; it is permitted only in exceptional circumstances 5 Type of Financial Assistance Provided Assistance is provided in the form of grants 6 Project Size and Co-financing Requirements There is no official maximum size of project The UNDP encourages cost-sharing contributions but there is not a specific requirement 7 Access to Assistance UNDP assistance is programmed through a country cooperation framework (CCF) This is developed within the framework of the dialogue between the UN system and the national authorities in the countries This dialogue results in a common country assessment (CCA), and a United Nations Development Assistance Framework (UNDAF), which is a strategic framework for the country-level activities of the entire United Nations system The UNDP's CCF sets out the key results, the strategies through which the results will be achieved, and how they will be assessed Once a CCF is approved, UNDP resources are assigned, and individual programmes and projects are formulated Project proposals should be referred to the relevant country office for possible inclusion in the programme of support 8 Other Information None 9 Contact Details United Nations Development Programme Bureau for Development Policy (BDP) 304 East 45th Street New York, NY USA Tel: +1 (212) Fax: +1 (212) Information on the contact details for the country offices in 166 countries can be found on the web-site 10 Information Sources Web-site: wwwundporg C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

80 United Nations Environment Programme (UNEP) 1 Introduction UNEP is the focal point for the environment within the United Nations system UNEP acts as a catalyst, advocate, educator and facilitator to promote the wise use and sustainable development of the global environment The aim of the mandate is that UNEP would keep the world environment situation under review and ensure that emerging environmental issues of international significance receive consideration by Governments UNEP also hosts several environmental convention secretariats including the Basel Convention on the Transboundary Movement of Hazardous Wastes and the Stockholm Convention on Persistent Organic Pollutants (POPs) The Division of Environmental Policy Implementation (DEPI) functions as a focal point for UNEP in coordination of technical assistance support for various policy implementation initiatives in developing countries and countries with economies in transition 2 Support to Waste Related Sectors Five sectors are prioritised: Water, clean and renewable energy, health and the environment, sustainable agriculture, and biodiversity In relation to health and environment, chemicals and hazardous waste is a special focus area Projects supported include technical assistance and capacity building for: Environmental policy development and use of regulatory, economic and other incentives and instruments to ensure compliance with national objectives in the context of global trends and multilateral environmental agreements Ensuring compliance with and enforcement of established national, regional and international environmental policy instruments, particularly legally-binding instruments Particular emphasis is placed on illegal trade in violation of international environmental instruments Environmental law, development of legal instruments and implementation of international environmental conventions Assistance is provided in the form of organisation of activities in environmental awareness raising, education, training, institution building, compiling training manuals, organising education workshops and providing legal advisory services The Environment Fund is the main mechanism for financing core UNEP activities This funding base, which is not tied to specific programmes and projects, remains UNEP s top priority In addition to the Environment Fund, the total UNEP operational budget includes additional resources from UNEP trust funds and trust fund support, counterpart (earmarked) contributions and the UN Regular Budget The total UNEP biennial budget exceeded $200 million The Environment Fund budget for biennium is US$1199 million UNEP is an implementing agency for the Global Environment Facility This facility is described in a separate fact sheet 3 Co-operation Countries and Regions Projects implemented are often of an international or regional character and involving developing or transition countries 4 Organisations Supported UNEP stakeholders are often representative groups such as scientists, government-designated experts, focal points or other United Nations agencies NGOs and other major groups (such as scientific and professional C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

81 47 associations, service clubs, community-based organisations, consumer unions and environmental citizen's organisations) are key stakeholders 5 Type of Financial Assistance Provided Funding is in the form of grants 6 Project Size and Co-financing Requirements No requirements specified 7 Access to Assistance The UNEP plans the allocation of resources each biennium This involves developing or revisiting the Medium Term Plan (duration 4 years), based on which policy directives are applied, priorities set and estimates made of resource allocation Proposals should be addressed to the UNEP headquarters for possible inclusion in the programme UNEP programmes are increasingly implemented through the six regional offices of DRC located in Africa, Asia and the Pacific, Europe, Latin America and the Carribean, North America and West Asia Contact information on web-site under Division of Regional Co-operation 8 Other Information None 9 Contact Details United Nations Environment Programme United Nations Avenue, Gigiri PO Box 30552, Nairobi, Kenya Tel: (254-2) Fax: (254-2) /90 10 Information Sources Web-site: wwwuneporg C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

82 48 16 Multilateral Grant Donors (Other) 161 Global Environment Facility (GEF) 1 Introduction The GEF is a financial mechanism structured as a trust fund that operates in collaboration and partnership with the three implementing agencies (UNDP, UNEP, and the World Bank) for the purpose of achieving global environmental benefits The IBRD is trustee and administers the trust fund The Global Environment Facility (GEF) provides grant funding for projects and programs within six areas: Biodiversity loss, climate change, degradation of international waters, ozone depletion, land degradation, and persistent organic pollutants (POPs) GEF is also the designated financial mechanism for international agreements on biodiversity, climate change, and persistent organic pollutants By 2002, the GEF has allocated USD 4 billion in grants to support more than 1,000 projects in over 140 developing nations and countries with economies in transition 2 Support to Waste Related Sectors The GEF funds projects that reflect national/regional priorities and have the support of the country or countries involved in six focal areas: Biodiversity, climate change, international waters, ozone depleting substances, land degradation, and persistent organic pollutants The table below indicates the level of funding (allocations) in 2002 Area POP ODS Int Waters Climate Change Biodiversity Multiple Allocation (USD million) To guide operations, the GEF has developed operational programs for a number of specific areas The waste related programmes are the Contaminant-Based Operational Programme under International Waters, and the Operational Program for Reducing and Eliminating Releases of Persistent Organic Pollutants (draft) In the Contaminant-Based Operational Program, four components characterise the range of projects in this operational program One includes a set of limited demonstration projects for addressing land-based activities while others include projects related to contaminants released from ships, persistent toxic substances such as persistent organic pollutants (POPs), and targeted regional or global projects useful in setting priorities for possible GEF interventions, meeting the technical needs of projects in this focal area, or distilling lessons learned from experience The GEF is committing $250 million from 2003 to 2006 to help developing countries tackle persistent organic pollutants The POP operational program is expected to focus on: (a) Development and strengthening of capacity, aimed at enabling the recipient country to fulfil its obligations under the convention These country specific enabling activities will be eligible for full funding of agreed costs These may include action plans, inventories, institutional/regulatory strengthening, etc (b) On the ground interventions, aimed at implementing specific phase-out and remediation measures at national and/or regional level, and including components of targeted capacity building Full Projects and Medium Size Projects eligible for funding will be focused on the following: Develop and/or strengthen the C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

83 49 capacity of developing countries and countries with economies in transition, promote the access to, and transfer of, clean and environmentally sound alternative technologies/products/practices, facilitate the environmentally sound disposal of stockpiles of obsolete POPs, and facilitate the identification and remediation of sites affected by POPs There is no program for ozone depletion, where the GEF, in partnership with the Montreal Protocol of the Vienna Convention on Ozone Layer Depleting Substances, funds projects that enable the Russian Federation and nations in Eastern Europe and Central Asia to phase out their use of ozone destroying chemicals 3 Co-operation Countries and Regions Country eligibility to receive funding is determined in two ways Developing countries that have ratified the relevant treaty are eligible to propose biodiversity and climate change projects Other countries, primarily those with economies in transition, are eligible if the country is a party to the appropriate treaty and is eligible to borrow from the World Bank (IBRD and/or IDA) or receive technical assistance grants from UNDP 4 Organisations Supported The Implementing Agencies may make arrangements for GEF project preparation and execution by multilateral development banks, specialised agencies and programs of the United Nations, other international organisations, bilateral development agencies, national institutions non-governmental organisations, private sector entities and academic institutions 5 Type of Financial Assistance Provided Assistance is generally provided in the form of grants Other forms may be used, however, this requires special authorisation from the GEF Council 6 Project Size and Co-financing Requirements Four main categories of GEF grant financing are available: 1 Full-Sized Project funding 2 Medium-Sized Project funding (GEF grants up to USD 1 million) 3 Expedited Enabling Activity grants 4 Project Preparation Grants There are three categories of project preparation grants: PDF Block A (up to $25,000); PDF Block B (up to $350,000); and Block C (up to $1 million) GEF emphasises its catalytic role and seeks to leverage additional financing from other sources However, there is no specific requirement to co-financing 7 Access to Assistance All three implementing organisations can serve as an entry to proposing projects for GEF assistance In general, the local office of the relevant organisation should be contacted and they will advise on the eligibility of the proposal and on the options for the different types of grants The contact details for the local offices can be found on the web-sites of the respective implementing agencies A number of guidance documents on the GEF project cycle and for the application procedures for various types of grants are available on the web-sites as well It is worth to consider the division of responsibilities between the three organisations The UNDP plays the primary role in ensuring the development and management of capacity building programs and technical C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

84 50 assistance projects The UNEP plays the primary role in catalysing the development of scientific and technical analysis and in advancing environmental management in GEF-financed activities The World Bank will play the primary role in ensuring the development and management of investment projects In addition, four Regional Development Banks (African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, and Inter-American Development Bank) and three UN Specialised Agencies (FAO, UNIDO and IFAD) have access to PDF-B resources for preparing and executing GEF projects 8 Other Information GEF funds the "incremental" or additional costs associated with transforming a project with national benefits into one with global environmental benefits Ie the GEF grants cover the difference or "increment" between a less costly, more polluting option and a costlier, more environmentally friendly option The process of determining incremental costs can be complicated Simplified guidelines for calculating incremental costs are being developed by the secretariat Until the simplified guidelines are available, there are GEF documents available on the web-site 9 Contact Details GEF Secretariat: 1818 H Street, NW, MSN G Washington, DC USA Telephone: (202) Fax: (202) / Implementing agencies: Global Environment Facility Coordination Team Environment Department The World Bank 1818 H Street, NW Washington, DC USA Tel: Fax: The United Nations Development Programme (UNDP) - Global Environment Facility (GEF) Unit (UNDP-GEF) 304 East 45th Street 9th Floor New York, NY Tel: Fax: UNEP Division of Global Environment Facility Coordination PO Box Nairobi, Kenya Tel: [254 2] Fax: [254 2] /623696/ Information Sources Web-sites: GEF GEF World Bank GEF UNDP GEF UNEP wwwgefweborg GlobalEnvironmentFacility C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

85 51 17 Bilateral Donors 171 Canadian International Development Agency (CIDA) 1 Introduction The Canadian International Development Agency is responsible for Canada's Official Development Assistance (ODA) program based on the Government's foreign policy The mandate of Canada's ODA isdefined as: "The purpose of Canada's ODA is to support sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and prosperous world" In the financial year , CIDA disbursed about CAD 126 billion in bilateral assistance 2 Support to Waste Related Sectors Support to the environment to help developing countries to protect their environment and to contribute to addressing global and regional environmental issues is one among six overall priorities for the operations of CIDA In the Report on Plans and Priorities for , the key target under environmental sustainability is to work towards achieving the targets of the MDGs on Environmental Sustainability in collaboration with the international development community, ie: Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources; halve, by 2015, the proportion of people without sustainable access to safe drinking water; achieve, by 2020, significant improvement in the lives of at least 100 million slum dwellers129 The priorities for the next three years towards achieving environmental sustainability are: build partners' capacities to address global, regional and national environmental issues such as desertification, biodiversity, and climate change; support and promote environmental and broader socio-economic policy dialogue and programming that directly address environmental issues According to CIDA's Statistical Report on Official Development Assistance for the Fiscal Year , 449% of disbursements were allocated to general environmental protection 3 Co-operation Countries and Regions CIDA supports projects in more than 150 countries around the world in the following regions: South and Central America, Africa and the Middle East, Central and Eastern Europe and Asia A list of eligible countries is available on the web-site 4 Organisations Supported CIDA supports government institutions and NGOs (Canadian and foreign) as well as the private sector 5 Type of Financial Assistance Provided Assistance is provided in the form of grants C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

86 52 6 Project Size and Co-financing Requirements No requirements specified 7 Access to Assistance Bilateral development assistance is planned and delivered within the general policy context provided by Canada's ODA Policy Framework and CIDA's Development Policy Base and within the general operational context provided by CIDA's Regulatory Environment and the three key Agency Program Management Frameworks described in Part I, - Draft Guidance Note, Chapter 3 There are now two principal programming mechanisms within the bilateral program branches as described below A The Bilateral Directed Mechanism The traditional country programming approach is referred to as the "Bilateral Directed Mechanism" and is the chief mechanism for delivering the assistance programmes The programming takes a point of departure in bringing Recipient Country/Region development needs, CIDA program objectives and Canadian capabilities together through the preparation, negotiation and approval of a Country/Regional Programming Framework The cycle continues through the project identification process which leads to further activities as a potential project is analyzed, its feasibility assessed, a design prepared, approval sought, agreements reached, etc B The Bilateral Responsive Mechanism The unsolicited proposal mechanism was established in 1996 and is referred to as the "Bilateral Responsive Mechanism" Under this mechanism, unsolicited proposals can be submitted to Bilateral country and regional program units by either the Canadian for-profit (private) sector, the Canadian not-for-profit sector or by a consortium involving both All projects must have an identified "Recipient Country Partner" The Recipient Country Partner can not be a development assistance project entity (eg a local entity which has been substantially created and primarily funded through CIDA development assistance funds) or a part or subsidiary of a Canadian company, university, etc Proposals are required to meet the following five basic criteria: Development impact of the project must prevail; There must be conformity with the CIDA Country/Regional Programming Framework (C/RPF) where one exists; No profit may be associated with the contribution agreement; A general ceiling of $50 million per contribution will apply; and, Cost-sharing and leveraging will be taken into account in the approval process A guide to the bilateral responsive mechanism is available on the web-site of CIDA 8 Other Information None 9 Contact Details Canadian International Development Agency 200 Promenade du Portage Gatineau, Quebec Canada K1A 0G4 Tel: (819) C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

87 53 Toll free: Fax: (819) Information Sources Web-site: wwwacdi-cidagcca/ C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

88 Danish International Development Assistance (Danida) 1 Introduction The Danish International Development Assistance (DANIDA) is responsible for administration of the Danish bilateral assistance In 2002 the Danish assistance to developing countries amounted to DKK 1286 billion (including assistance to multilateral grant donors) In 2003, the budget is DKK 1283 billion 2 Support to Waste Related Sectors The environment is one among three major cross-cutting issues in Danish development policy In 2003, it is planned that DKK 17 billion will be allocated to environmental projects or projects with related environmental aspects Danida has a special facility for environmental support called MIFRESTA Under MIFRESTA, support is provided for selected countries (see below) and for global environmental programmes, especially programmes for support to implementation of international environmental agreements 3 Co-operation Countries and Regions According to Danish development policy, the Denmark's bilateral development cooperation will be concentrated on fifteen programme countries These are: Bangladesh, Benin, Bolivia, Burkina Faso, Egypt, Ghana, Kenya, Mozambique, Nepal, Nicaragua, Tanzania, Uganda, Vietnam, and Zambia Under the MIFRESTA facility, support is targeted at Botswana, Cambodia, Malaysia, Mozambique, Namibia, South Africa, Tanzania, Thailand and Vietnam In addition, limited funds will be available for non-co-operation countries 4 Organisations Supported No information provided on type of organisation supported 5 Type of Financial Assistance Provided Assistance is given in the form of grants 6 Project Size and Co-financing Requirements No requirements specified 7 Access to Assistance Danida elaborates country strategies for all co-operation countries providing the priorities and strategies for Danida support to the countries Strategies are elaborated based on nationally defined policy frameworks for poverty strategies, which form key entry points for Danish development assistance The country strategies are available on the web-site 8 Other Information None 9 Contact Details Udenrigsministeriet Asiatisk Plads 2 C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

89 55 DK-1448 København K Denmark Tel: +45/ Fax: +45/ Information Sources Web-site: wwwumdk C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

90 Department for International Development (DFID) 1 Introduction The Department for International Development is a United Kingdom Government department responsible for the bilateral assistance of the United Kingdom The overall policy direction is provided by the government of the day through DFID's Secretary of State DFID's mandate is given in the International Development act (2002), gives the Secretary of State the specific remit of promoting development and reducing poverty The budget of DFID in the financial year 2002/03 was over EUR 3 billion and it is projected to increase to over EUR 4 million in 2005/06 Approximately half of the budget is used to contribute to various multilateral agencies (including the EU) and the other half for bilateral assistance 2 Support to Waste Related Sectors The overall framework of DFID developmental policy is set out in the 1997 White Paper 'Eliminating World Poverty: A challenge for the 21st Century', and expanded upon by the 2000 White Paper 'Eliminating World Poverty: Making Globalisation Work for the Poor' The commitment to the Millennium Development Goals is confirmed in these white papers, which includes a key policy commitment to tackling global environmental problems In this area, the specific commitments are to: Work to reduce the contribution made by developed countries to global environmental degradation Work with developing countries to ensure that their poverty reduction strategies reflect the need to manage environmental resources sustainably, and strengthen their capacity to participate in international negotiations DFID has a department dealing with infrastructure and urban development The Urbanisation section of this department has a knowledge and research programme with three themes: (i) Increase the access of low income households and the poor to adequate, safe and secure shelter, (ii) Improve the access of low income households and the poor to improved urban services, and (iii) Enhance the effectiveness of city and municipal planning and management DFID provides specialist advice on all aspects of environmental engineering through the department This advice covers a broad range of issues encompassing water resources management, waste management, pollution control cleaner technology and production, and the environmental assessment, management and monitoring of infrastructure and urban development programmes 3 Co-operation Countries and Regions DFID s assistance is concentrated in the poorest countries of sub-saharan Africa and Asia, but also contributes to poverty reduction and sustainable development in middle-income countries, including those in Latin America and Eastern Europe 4 Organisations Supported Assistance is provided to Government bodies, NGOs and, through some specific programmes, to the private sector 5 Type of Financial Assistance Provided Assistance is provided in the form of grants C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

91 57 6 Project Size and Co-financing Requirements No requirements specified 7 Access to Assistance Since 1997 the Department for International Development (DFID) has published Country Strategy Papers to set out the aims for contributing to the achievement of the Millennium Development Goals (MDGs) in various countries The Country Strategy Papers are prepared for all countries in which development assistance programmes exist, and are normally produced every three years DFID has recently designed the second-generation Country Assistance Plans In the majority of the countries in which DFID works there are nationally owned and administered plans to reduce poverty The Country Assistance Plans set out in detail how DFID will work as part of the international development effort to support these strategies The plans will incorporate analysis of each country s potential for political, social, and economic change The new generation of Country Assistance Plans will be gradually rolled out from mid 2002 Draft Plans will be made available on the DFID website and interested parties will be invited to offer their comments An indicative timetable of forthcoming Plans will shortly be made available through this page In addition to the assistance supplied through the country programming process, DFID has a number of funds and facilities providing funding for various purposes, some of these are called Challenge Funds These are a relatively new way of providing support to initiatives in or for developing countries They work by supporting enterprises and projects that contribute to the development process For Challenge Funds, it is up to the bidder to come up with a concept for evaluation by an independent panel Detailed proposals are then invited from a short-list, with cost-sharing grants awarded to those initiatives that best meet the Fund's objectives A list of the funds and the particular terms and conditions is available at the web-site 8 Other Information None 9 Contact Details DFID has headquarters in London and East Kilbride, offices in many developing countries, and staff based in British embassies and high commissions around the world (contact details available at web-site) DFID, 1 Palace Street, London SW1E 5HE DFID, Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA United Kingdom Tel: +44 (0) Fax: +44 (0) Information Sources Website: wwwdfidgovuk C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

92 Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH 1 Introduction The Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH is a government-owned corporation for international cooperation of Germany In more than 130 developing or transition countries, GTZ is supporting c 2,700 development projects and programmes, chiefly under commissions from the German Federal Government GTZ was founded in 1975 as a corporation under private law The German Federal Ministry for Economic Cooperation and Development (BMZ) is its main financing organisation GTZ also undertakes commissions for other government departments, for governments of other countries, for international clients such as the European Commission, the United Nations or the World Bank, as well as for private-sector corporations GTZ operates on a public-benefit basis Any surpluses are exclusively re-channelled into its own development cooperation projects 2 Support to Waste Related Sectors The GTZ works with hazardous waste management, municipal waste management, and waste management policy 3 Co-operation Countries and Regions Latin America and the Caribbean: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic Ecuador, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, and Venezuela Africa: Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Côte d Ivoire, Democratic Republic of Congo, Eritrea, Ethiopia, Gabon, Ghana, Guinea, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Namibia, Niger, Nigeria, Republic of Congo, Rwanda, Senegal, Sierra Leone, Somalia, South Africa, Swaziland, Tanzania, Togo, Uganda, Zambia, and Zimbabwe Near and Middle East and the Maghreb: Algeria, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Palestinian Territories, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates, Yemen Mediterranean Region, Europe, Central Asian Countries: Afghanistan, Albania, Armenia, Azerbaijan, Belgium, Bosnia-Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Georgia, Hungary, Kazakhstan, Kosovo, Kyrgyz Republic, Latvia, Lithuania, Montenegro, Pakistan, Poland, Romania, Russian Federation, Serbia and Montenegro, Slovakia, Slovenia, Tajikistan, Turkey, Turkmenistan, Ukraine, and Uzbekistan, 4 Organisations Supported In the waste sector, GTZ's partners are municipal administrations, local and regional associations, and national, federal or regional authorities and ministries with full or partial responsibility for waste management GTZ project partners in the industrial waste management sector are public institutions, industrial associations and chambers, and the industries themselves 5 Type of Financial Assistance Provided In the field of international cooperation, GTZ provides technical assistance, ie transfer and mobilisation of knowledge and skills with the aim to improve capacity of partner organisations 6 Project Size and Co-financing Requirements No requirements specified C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

93 59 7 Access to Assistance The GTZ does not allocate resources - it carries out projects financed by various donors, especially the German Federal Ministry for Economic Co-operation and Development (BMZ) who is by far the largest source of revenue for GTZ However, there is a dialogue between GTZ and BMZ at the Federal level as well as between GTZ local offices in partner countries and BMZ It is therefore advisable to contact GTZ local offices to discuss project ideas 8 Other Information None 9 Contact Details Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dag-Hammarskjöld-Weg Eschborn Germany Telephone +49 (0) Telefax +49 (0) The contact details for the 63 field offices can be found on the web-site 10 Information Sources Web-site: wwwgtzde C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

94 Direction Générale de la Coopération Internationale et du Développement (DGCID) 1 Introduction The DGCID is under the Ministry of Foreign Affairs of France and is responsible for the grant-based bilateral assistance for co-operation and development The DGCID provides project assistance and technical assistance, which is provided in a number of sectors In addition, support is provided for universities and scientific co-operation, audiovisual communication, cultural co-operation and promotion of the French language as well as support for NGOs The DGCID is separate from the Agence Francaise de Développement (AFD), which is the institution responsible for the bilateral lending facilities of France, which are available to public and private organisations The AFD offers loans on both concessional and market terms as well as assistance for project preparation 2 Support to Waste Related Sectors The total budget of DGCID in 2002 was EUR 143 billion Out of this total, approximately 30% was allocated for development project support and technical assistance Support for sustainable development and management of natural resources is one among a number of key priorities for the technical assistance operations of DGCID 3 Co-operation Countries and Regions Sub-Saharan Africa is prioritised and received 46% of DGCID funds in 2002 Other regions supported include: The Maghreb (12%), Central and Eastern Europe (11%), South and Southeast Asia (7%), South America (7%), Near and Middle East (6%), Northern and Western Europe (5%), Far East and Oceania (4%) and North America (2%) 4 Organisations Supported Governments and NGOs 5 Type of Financial Assistance Provided Assistance is provided in the form of grants 6 Project Size and Co-financing Requirements No requirements specified 7 Access to Assistance The DGCID is overall responsible for the country programming setting out the priorities for French bilateral assistance at the country level This is co-ordinated with other French ministries as well as recipient countries The three-year country strategies are available in French on the web-site of the DGCID French bilateral lending assistance provided through AFD is also directed by the country programmes 8 Other Information None 9 Contact Details 244, boulevard Saint-Germain Paris 07SP C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

95 61 France Tel: (33) Or: 20, rue Monsieur ou 57, boulevard des Invalides Paris 07SP France Tel: (33) Information Sources Web-site: wwwdiplomatiegouvfr C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

96 Japan International Co-operation Agency (JICA) 1 Introduction JICA is responsible for the grant aid and the technical cooperation aspect of Japan's ODA programs that are aimed at the transfer of technology and knowledge that can serve the socioeconomic development of the developing countries JICA carries out a variety of programs to support the nation building of developing countries through such technical cooperation Japan also provides assistance in the form of bilateral loans, generally known as "Yen Loan" The Overseas Economic Cooperation Fund (OECF) is in charge of bilateral loans The total official development assistance of Japan amounted to USD 9704 billion in 2001 Out of this, about half was provided in the form of bilateral grants 2 Support to Waste Related Sectors Japan's ODA Charter (1992) emphasises three basic ideals underlying the provision of aid, of which one is the conservation of the environment The Millennium Development Goals are incorporated into the mission of JICA and further interpreted in country and sector programs In relation to Goal 7 concerning environmental sustainability, JICA is strengthening its cooperation by concentrating efforts into several new fields over and above its previous involvement (pollution control, forestry, living environments, etc) The new fields include measures against global warming, measures against acid rain, and measures against desertification and conservation of biodiversity In the financial year 2001, JICA support for the environment sector comprised 203% of total support 3 Co-operation Countries and Regions Assistance is provided to a number of countries (152 in 2001) in Asia, the Middle East, the Americas, Oceania, and Europe Countries eligible for grant aid are those that qualify for financing from IDA (see separate fact sheet) 4 Organisations Supported No information on type of organisation supported 5 Type of Financial Assistance Provided Both technical co-operation and grant aid is given in the form of bilateral grants 6 Project Size and Co-financing Requirements No requirements specified 7 Access to Assistance JICA operates under the policies defined by the Japanese Government and according to a country-specific and issue-specific approach, which involves the formulation of plans for specific countries and issues and presents a new framework for the comprehensive coordination of cooperation projects in a manner transcending project types and sectors 8 Other Information None C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

97 63 9 Contact Details Japan International Cooperation Agency 6-13F, Shinjuku Maynds Tower 1-1, Yoyogi 2-chome, Shibuya-ku, Tokyo Japan Tel: /5312/5313/5314 JICA has overseas offices in a number of countries Their contact details can be found on the web-site 10 Information Sources Website: C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

98 177 The US Agency for International Development (USAID) 1 Introduction The US Agency for International Development (USAID) is the principal agency for providing foreign assistance from the United States to developing and transitional countries The source of funding is the US Federal budget 2 Support to Waste Related Sectors Environment is one of many areas of operation Under environment, support is given to pollution prevention and cleaner production, which co-ordinated with assistance to the health sector Under the strategy for "Making Cities Work", USAID also provides support to urban programs aiming to increase investment in basic urban infrastructure, housing and services, generate increased economic opportunity in cities, promote safe, healthy urban environments, and help city governments more effectively respond to the needs of the urban poor (see In the financial year 2001, the USAID committed approximately USD 1 billion for urban projects, out of which about 10% went to environmental projects 3 Co-operation Countries and Regions Countries in four regions of the world: Africa, Asia & the Near East, Europe & Eurasia, Latin America & the Caribbean 4 Organisations Supported No information provided on type of organisations supported 5 Type of Financial Assistance Provided Assistance is provided in the form of grants 6 Project Size and Co-financing Requirements No requirements specified 7 Access to Assistance Every three years USAID publishes a strategic plan that identifies strategic development goals and outlines their linkages with US national security interests, with the last being in 2000 USAID and the State Department are producing a joint strategic plan for FY 2004 to 2009 Each fiscal year the Agency submits its budget justification to the Congress for appropriation The Congressional Budget Justification (CBJ) reflects the Administration's program and budget request for bilateral foreign economic assistance appropriations on a country-by-country level Project ideas should conform with the priorities in the strategic plan and CBJ It is suggested to contact the local office of USAID to discuss project ideas at an early stage 8 Other Information None 9 Contact Details Ronald Reagan Building, 1300 Pennsylvania Avenue, NW, C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

99 Washington, DC United States Tel: Addresses of field offices in various countries and a complete telephone directory are available on the web site 10 Information Sources Web-site: wwwusaidgov C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

100 Appendix 1 List of International Financing Institutions C:\Documents and Settings\ms\Local Settings\Temporary Internet Files\OLK5F\58231_BC Fact Sheets_01_01DOC

101 Development Banks Name of institution African Development Bank wwwafdborg Arab Bank for Economic Development in Africa ( BADEA ) wwwbadeaorg Asian Development Bank wwwadborg Black Sea Trade and Development Bank wwwbstdbgr Caribbean Development Bank (CDB) wwwcaribankorg Central American Bank for Economic Integration wwwbcieorg Council of Europe Development Bank wwwcoebankorg Development Bank of Southern Africa (DBSA) European Bank for Reconstruction and Development (EBRD) wwwebrdcom European Investment Bank (EIB) wwweiborg Inter-American Development Bank wwwiadborg Key Information Regional (53 African countries) Loans and equity investments Operations cover all major sectors So far, the environment sector has not received any funds In 2002, the health sector received USD million Regional (Africa) Loans (maximum 15 million USD per project) and technical assistance in the form of grants The total approved financing in 2001 amounted to USD million distributed on five projects Regional (Asia) Loans, equity, and grants Promoting sustainable development and environmental protection is a key strategic development objective Thirteen loans with major environmental objectives totalling about USD 700 million were approved in 2002 Regional (Black Sea Region) Loans, equity investments; and guarantees The environment is not priority sector Since the establishment in 1999, the Bank has approved operations totalling USD 500 million Regional (Caribbean countries) loans, equity finance, and grants Waste management and environmental protection is mentioned among a number of fields of operation In 2002, the Bank approved loans amounting to a total of USD 89 million Regional (Central America - Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica) Direct loans as well as loans through financial intermediaries (local banks) Environmental sustainability is one among 4 priority sectors for the period Approved projects : USD 35 billion Regional (Europe) Loans Social projects in less advantaged regions of Europe Protection of the environment is not a key priority, but is mentioned among other fields of action and constituted 13% of projects approved in 2002 ECU 16 billion approved for project financing in 2002 Regional (Southern Africa) Loans for investment in infrastructure Municipal infrastructure - incl waste - is among the focus areas Regional (27 countries from central Europe to central Asia) Loans, equities and guarantees, and credit lines with financial intermediaries for smaller loan operations Works primarily with the private sector and with publicly owned companies, to support privatisation, restructuring state-owned firms and improvement of municipal services Municipal and environmental infrastructure is among the sectors prioritised The EBRD has invested EUR 15 billion in municipal and environmental infrastructure in 57 projects (as of December ) Global, but with focus on EU countries and EU development aid partner countries (African, Caribbean, Pacific) Environment is an area of special interest Out of the EUR 179 billion approved for environmental lending in , about EUR 560 million concerned the waste sector Regional (Latin America and the Caribbean) Loans and technical assistance Environmental area has high priority: Environmental health, control of industrial pollution, protection of natural resources, sustainable development, renewable energy, and institutional strengthening Loan commitments in 2002 USD 455 billion Technical cooperation projects totalling USD 654 million Fact sheet No No Yes No No Yes Yes Yes Yes Yes Yes

102 Development Banks continued Name of institution Key Information Fact sheet International Bank for Reconstruction and Development (IBRD) wwwworldbankorg Nordic Environment Finance Corporation (NEFCO) Nordic Investment Bank (NIB) wwwnibint North-American Development Bank (NADB) wwwnadbankorg Global World Bank lending institution Low-interest loans to higher-income developing countries Environment sector is among the key priorities USD 14 billion lending approved in 2002 for urban development and natural resource management Regional (Central and Eastern Europe and focus on Nordic Region) Loan financing for environmental projects based on co-operation between local and Nordic enterprises with transboundary effects which also benefit the Nordic region In 2001, 9 projects were approved Global (but focus on Nordic area) Loan financing for investment projects and project exports, High priority is given to investments furthering economic co-operation within the Nordic area Priority for environmental loans in the Baltic states, Poland and Northwest Russia In 2002, international loans agreed amounted to ECU 5182 million, of which about ECU 80 million was to the environmental sector Regional (along the US-Mexico border in both countries) Investment loans, grants for TA and project development Environmental infrastructure projects, including waste management From 1993 to 2003, the NADB has authorized just under US$531 million in loans and/or grant resources to partially finance 59 infrastructure projects Yes No Yes No Development Funds Name of institution African Development Fund (AFD) wwwafdborg Asian Development Fund wwwadborg International Development Association ( IDA) wwwworldbankorg Nordic Development Fund wwwndffi Nordic Environmental Development Fund wwwnefcoorg Key Information Regional (low-income African countries) Development finance on concessional terms (no interest) The environment sector has received very limited funds In 2002, the health sector received USD 100 million Regional (Asia), targeted at low-income countries in the region Special fund administered by the Asian Development Bank For project loans, the terms are: 32-year maturity including an 8-year grace period, 1-15 % interest charge There is no commitment fee Overall priorities are similar to those of the Asian Development Bank In November 2000, donors to the ADF recommended USD 5645 billion as the level of ADF operations for the four-year period Global World Bank s concessional lending window (one-quarter of the World Bank s financial assistance) Long-term loans at zero interest to the poorest of the developing countries USD 083 billion lending approved in 2002 for urban development and environmental & natural resource management Global Long-term credits on concessional terms to poor developing countries In 2002, the NDF signed 10 agreements amounting to a total value of EUR 684 million There is no specific sector focus Historically, 10% of funds have been allocated to environment and multi-sector projects Regional (Central and Eastern Europe and focus on Nordic Region) Grants for the procurement of goods or services (cash subsidies) or to reduce the borrower s debt service costs The maximum grant is one-third of the total project cost During 2001, 7 projects were approved under the fund Fact sheet No No ref Asian Dev Bank Yes No No

103 Multilateral Grant Donors EU Name of institution Key Information Fact sheet Asia Pro Eco europeaid/projects/asia-pro-eco/ index_enhtm CARDS europeaid/projects/cards/index_ enhtm European Development Fund (EDF) Instrument for Structural Policies for Pre-Accession (ISPA) enlargement/pas/ispa/ MEDA europeaid/projects/med/index_ enhtm PHARE enlargement/pas/phare/ TACIS europeaid/projects/tacis/index_ enhtm Regional (Asia) EU programme Grants for technical assistance and policy projects within environment Waste management is among areas of particular interest Budget is EUR 823 million for five years Regional (Western Balkans) EU programme Grants Support to investment and institution building The environment is listed among sectors supported The focus is on harmonization to EU law, institution building and reduction of environmental health risks Budget is EUR 465 billion In 2003, about 7% of assistance focused on the environment sector Global, focus on African, Caribbean and Pacific (ACP) States EU programme Grants and investment loan facility for the private sector Promoting environmental sustainability is one among five general aims for EU development co-operation and environment is also prioritised as a cross-cutting issue EUR 138 billion contribution for the fund for the period , out of which EUR 10 billion is earmarked for grants for ACP States Regional (EU candidate countries) EU programme Grants Infrastructure projects in the field of environment and transport Budget for 2000 to 2006 is EUR million a year (at 1999 prices) Regional (EUs 12 Mediterranean partner countries) EU programme Grants Objectives and priorities derived from 1995 Barcelona Declaration Sustainable rural development and environment is one among 5 prioritised areas of intervention Budget for amounts to EUR 535 billion Regional (EU candidate countries - Central Europe) EU programme Grants Institution building and acquis-related investment (around 70%) Phare does not support environment-related investments, which can be financed under ISPA Regional (13 countries in Eastern Europe/Central Asia) EU programme Grants Budget for is Euro 3,138 million In previous years, environment and nuclear safety received 20% of the funds The Northern Dimension is an initiative operating under TACIS, among other EU programmes It addresses the specific challenges of the Baltic Sea region, Arctic Sea region and North West Russia with the environment as one out of 7 areas of cooperation No Yes Yes Yes Yes No Yes

104 Multilateral Grant Donors UN Name of institution Food And Agriculture Organization Of The United Nations (FAO) wwwfaoorg International Labour Organisation (ILO) wwwiloorg United Nations Development Programme (UNDP) wwwundporg United Nations Environment Programme (UNEP) wwwuneporg United Nations Industrial Development Organisation (UNIDO) wwwunidoorg United Nations Institute for Training and Research (UNITAR) wwwunitarorg Key Information Global Specialised UN agency (lead agency for agriculture, forestry, fisheries and rural development) Assistance to developing countries through a wide range of technical assistance projects FAO has a department for sustainable development conducting various activities related to agriculture, food production and environment Global Specialised UN agency Promotion of social justice and human and labour rights Development of employers and workers organizations, incl training and advisory services The ILO Global Programme on Safety, Health and the Environment, including a small programme of technical assistance The funds in the TA programme are provided by a number of bilateral donors Global Energy and environment is one out of six priority sectors Assistance to capacity building, policy advice and pilot projects Implements the small grants programme funded by the GEF - providing smallscale assistance to NGOs Total funding in 2002 was about USD 18 billion with 1611% on energy and environment Global Specialised UN agency Grant assistance to developing countries within the field of the environment through the environmental fund Five sectors are prioritised: Water, clean and renewable energy, health and the environment, sustainable agriculture, biodiversity The Environment Fund budget for biennium is USD 1199 million Global Specialised UN agency Generates and disseminates knowledge relating to industrial matters and seeks to support industrial development in developing countries limited project activities within the field of environmental management and waste/chemicals Global Enhance the effectiveness of the UN through appropriate training and research Training and Capacity Building Programmes in Chemicals and Waste Management (CWM) offers some programmes and services to strengthen the foundations for chemicals and waste management at the country level, and assist countries in implementing national priorities and relevant international agreements Fact sheet No No Yes Yes No No

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