20 years of eib financing for a cleaner baltic … gdansk/presenta… · 20 years of eib financing...

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16 Oct. 2012 1 PURE Final Conference in Gdansk

20 YEARS OF EIB FINANCING FOR A

CLEANER BALTIC SEA

Marco Beros

Projects Directorate

EUROPEAN INVESTMENT BANK

PURE FINAL CONFERENCE IN GDANSK

Gdansk, October 16, 2012


CONTENTS

1. Brief Presentation of EIB

2. EIB Activity in the Water Sector

3. EIB Activity in Countries around the Baltic Sea

4. Case Study – St. Petersburg

5. Conclusion

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EIB Headquarters in Luxembourg



1.1 General

EU’s long-term lending bank set up in 1958 by the Treaty of Rome,

Shareholders: 27 Member States of the European Union,

Lends up to 50% of the project investment cost

Lending objectives:

Within the Union:

Convergence

Small medium and mid-cap enterprises (SMEs & midcaps)

Environmental sustainability

Knowledge Economy

Trans-European Networks (TENs)

Sustainable, competitive and secure energy

Outside the Union:

Private sector development

Infrastructure development

Security of energy supply

Environmental

sustainability

Support for EU presence in

Asia and Latin America via

Foreign Direct Investment

(FDI)

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0

50

100

150

200

250

300

350

400

450

500

EIB World

Bank

IADB ASDB IFC EBRD NIB AfDB


1.1 Key Lending Figures 2011 European Union: EUR 53.8bn

Partner countries: EUR 7.1bn

Total lending: EUR 60.9bn

Borrowings: EUR 76.0bn

Subscribed capital: EUR 232.4bn (at 01/04/2009)

Source: Standard & Poor’s;

Supranationals -Special Edition 2011

Data as of 31.12.2010

(World Bank, IFC as of 30.06.2011)

Gross outstanding loans,

equity investments and guarantees

Largest Supranational Lender



Delfland Waste Water Treatment Plant (NL) Water Treatment Plant in Krakow (Poland)

St. Petersburg Flood Barrier

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2.1 General

Largest source of loan financing to the sector,

The water sector represents only 5% of EIB’s total lending,

Total loan amount of EUR 26bn over the past 10 years, 90% of which for projects inside EU,

From 2002 to 2011, 288 major projects have been financed, 75% of which located within the EU,

On average, EIB lending represents 30% of project investment cost,

EIB lends to public or private utility companies, national or local authorities or directly for project finance deals.

EIB lending covers the whole water cycle (water resources, water supply, sanitation, flood protection)



2.2 EIB’s Water Sector Lending Policy

River basin approach (IWRM)

Sector development

Adaptation to climate change

Water efficiency

Development of new water supply

Wastewater and sanitation services

Research and Innovation

Maximise Added Value

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2.3 Implementing the Policy: Key Actions (1/2)

IWRM (Integrated Water Resources Management):

Promote IWRM + water services provision in a project

Support transboundary cooperation

Consolidation of institutional framework:

Support appropriate level of integration of utilities to improve efficiency and enhance borrowing capacity

Enhance financial sustainability (sustainable cost recovery)

Adaptation to climate change (CC):

Adaptation part of new lending priority in EIB CC Strategy

Promoters should consider adaptation in project design

EIB supports technical assistance (TA) with grants

Preparation, implementation of flood risk management projects



2.3 Implementing the Policy: Key Actions (2/2)

Water efficiency:

Support efficiency in: (i) use by consumers; (ii) allocation of resources; (iii) systems (losses); (iv) management of utilities

Promote principle of cost recovery in line with WFD

Support industries aiming at improving “water footprint”

Development of new water supply:

Demand side management and efficiency as 1st priority

Finance: (i) desalination with pre-requisites; (ii) dams, basin transfers and fossil water under strict conditions

Wastewater and sanitation services:

Always consider them when undertaking water supply projects

Sustainable cost recovery (incl. subsidies)

Sustainable financing (blend loans, grants)

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2.4 Key Figures (1) : Signed Loans in the Water Sector

Total amount (2007-11): EUR 16.1bn, i.e. average of EUR 3.2bn p.a.

2

0.3

2.9

0.1

3.7

0.4

1.9

0.5

3.6

0.7

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Bn. EUR per year

2007 2008 2009 2010 2011

EIB Loans to the water sector from 2007 to 2011

Partner Countries

EU 27

4.3

2.4

3.0

2.3

4.1



2.4 Key Figures (2): Breakdown by Region (2007-2011)

Amount of signed Projects in the Water Sector 2007 to 2011 (total

EUR 16.1 bn), Breakdown by Region

Asia & Latin America

0.5%ACP

2.5%

Mediterranean

4.9%

Eastern Neighbours,

Caucasus, Central Asia

0.5%

Candidates & Potential

Candidates

2.4%

South Africa

1.2%

EU 27

88.0%

Average loan amount:

EU 27 countries: EUR 121m,

Partner countries: EUR 47m

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3. EIB Activity in the Waste Water Sector in

countries around the Baltic Sea

July 2012 (hopefully …)


3. EIB Activity in countries around the Baltic Sea

3.1 General

EU Commission is signatory of HELCOM’s Baltic

Sea Action Plan and EIB as EU’s Bank is

therefore committed to support Helsinki

Convention objectives.

EIB is also part of the Northern Dimension

Environmental Partnership (NDEP) together with

Russian Federation, EU Commission, EBRD, NIB,

NEFCO, World Bank, etc.

EIB has co-financed waste water projects in all

countries of the Baltic Sea catchment area with

the exception of Belarus.

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3. EIB Activity in countries around the Baltic Sea

3.2 EIB Key Figures for waste water projects

Country Year of first

waste water

project

Total for past 10 years (2002 – 2011)

In million EUR

Signed loans Project cost

Estonia 2007 105 800

Latvia 1995 120 900

Lithuania 1995 113 900

Poland 1994 870 2200

Russian Fed. 2003 63 870

Sweden 1995 15 30

TOTAL 1380 5880

• No projects relevant for Baltic Sea in Denmark,

Germany, Finland in the past 10 years.




Vodokanal’s Water Museum

Pumping Station URS 422

Under construction

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4. Case Study - St. Petersburg : General

4.1 Waste Water Collection

System

First sewers built at the end

of the 19th century,

Combined system on 70% of

the area (city), separate

system in the suburbs (30%)

Total: 8,000km, of which

220km tunnel collectors (DN

2000 to 4700), 15 to 80m

deep, 120 pumping stations

5 catchment areas (3 in the

city, 2 in the suburbs)

3 Catchment Areas in the City

Central WWTP

Northern WWTP

South Western WWTP

Northern

WWTP

Central

WWTP

Southern

WWTP

NEVA

BAY


4. Case Study - St. Petersburg : Projects

4.2 South Western WWTP (290,000m³/d)

Works started 1987, abandoned 1991

Completion between 2003 and 2005

Incinerator commissioned in 2007

Nitrogen removal performance improvement:

Ntot reduction: 75%

Annual Ntot in effluent 7.5mg/l:

full compliance with HELCOM*

2006 2009

UV Disinfection

on Sea Outfall

Ntot reduction: 65%

Annual Ntot in effluent 10.1mg/l:

no compliance with HELCOM*

*Helsinki Commission for the environmental protection of the Baltic Sea

2006

HELCOM* recommendation: 10mg/l

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4.3 Northern WWTP (600,000m³/d)

Put in operation in 1987

Sludge incinerator commissioned in 2007

Objectives of the current works (2010-2012):

upgrade the plant for nutrient removal to meet the HELCOM

Recommendation and Russian environmental legislation,

rehabilitate/reconstruct facilities in poor condition (8 primary

clarifiers, aeration tanks, air blowers,12 secondary clarifiers,

new return sludge pumping station, …)

Sludge incinerator

Aeration Clarifiers



Completion of the Northern Tunnel Collector and new Pumping station URS 422 (8m³/s): transfer 200,000m³/d from Central to Northern WWTP (gravity or pumping)

Length: 24km, depth up to 80m, diameter: 4m

Connection of current direct discharges of untreated wastewater

Modernisation works in the Central WWTP and better nutrient removal through influent reduction

Central

WWTP

NEVA

BAY

Tunnel Collectors

Northern Tunnel

Collector

4.4 Northern Tunnel Collector (Works 2009-2012)

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4.5 Project Cost and Financing Data (in EUR million)

Project Investment

Cost

EIB Loan

Amount Signed

Southern WWTP 240 25.0 Dec. 2003

Northern WWTP,

incinerator 70 20.0 Apr. 2005

Northern WWTP,

modernisation 60

17.5 Jun. 2009

Northern Tunnel Coll. 500

TOTAL 870 62.5 -

Other IFIs and Donors involved: EBRD, NIB, EU

Commission, SIDA, Finnfund, Swedfund, NDEP, John

Nurminen Foundation,…


4. Case Study - St. Petersburg

St. Petersburg was the

Baltic Sea’s largest point

source of pollution

First WWTP in 1978,

today 21 WWTP (total

capacity 1.9m m³/d)

3 sludge incineration

plants

91% of waste water is

treated (Target for end

of 2012: 95%)

4.6 Achievements Nutrient Discharge 1978 - 2009

Nitrogen: -54%

Phosphorus: -81%

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5. Conclusion


5. Conclusion

In the past 20 years EIB’s partners have

shown an impressive track record of reducing

pollution to the Baltic Sea. However, much

needs still to be done.

The EIB is proud to have been contributing to

these successes together with the Promoters,

authorities and other financiers.

Almost all completed projects are good

examples of successful international

cooperation, through blending of loans with

grants (from EU and other donors).

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For more information please contact :

Marco Beros ([email protected] ),

Phone: +352 43 79 82748

EUROPEAN INVESTMENT BANK

http://www.eib.org/

THANK YOU FOR YOUR ATTENTION!

mailto:[email protected]

http://www.eib.org/

20 years of eib financing for a cleaner baltic … gdansk/presenta… · 20 years of eib financing...

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