Pollution Reduction Revolving Fund for the LMEs of East Asia by S. Adrian Ross Senior Programme Officer, PEMSEA GEF Third Biennial IW Conference June 2005

The East Asian Seas Marine Pollution Prevention and Management in the East Asian Seas (MPP-EAS) countries US$ 8 million Building Partnerships in Environmental Management for the Seas of East Asia (PEMSEA) countries US$ 16.2 million

Cavite Quang Nam Sukabumi Shihwa ICM Demonstration & Parallel Sites Xiamen Batangas Bay Bali Chonburi Danang Klang Nampo Sihanoukville Bataan Shihwa Lake Sukabumi Cavite Quang Nam PEMSEA ICM Demonstration and ICM Parallel sites

Bohai Sea Manila Bay Gulf of Thailand Gulf of Thailand Malacca Straits Malacca Straits Collaborative activities among various stakeholders to address cross- boundary, multi- jurisdictional issues related to environment and natural resource management Coastline: 8,791 km Sea Area: 547,084km 2 Population: 527 million Coastline: 8,791 km Sea Area: 547,084km 2 Population: 527 million Sub-regional Sea Areas / Pollution Hot Spots

EAS Congress 2003/ Putrajaya Declaration Ministerial forum Ministers of 12 PEMSEA participating countries signed the Putrajaya Declaration during the Ministerial Forum on the SDS-SEA on 12 December 2003 in Putrajaya Malaysia

Programme of Activities for SDS-SEA Implementation Institutional Arrangements  EAS Partnership Council  10 year framework of regional partnership programmes  Integrated implementation of international conventions  Regional Partnership Fund  PEMSEA Resource Facility  Monitoring, evaluation and info exchange  Tri-annual EAS Congress Response Programme  national coastal and ocean policies in 70% of countries by 2015  20% of coastlines covered by ICM by 2015  10-year framework of country programmes  Interagency and multi-sectoral coordinating mechanisms  Network of regional experts  Network of Local governments  Ecosystem-based management in major watersheds  Twinning and networking  Collaborative arrangements among research institutions, universities, private sector, NGOs (AOEs, etc.) Investment and Financing Programme  Financing and procurement policies and regulations  Investment opportunities for SMEs, private investors and PPP  Regional private sector advisory group  Pollution Reduction Investment Fund

Regional Implementing Mechanism for SDS-SEA Figure 2: Interim arrangement – a regional mechanism operating within the UN system EAS Partnership Council Provide policy and programme development guidance to SDS- SEA implementation Intergovernmental Session Technical Session Ministerial Forum Provide policy direction and commitments for improving and strengthening SDS-SEA implementation PEMSEA Resource Facility EAS Congress Monitoring/evaluation of SDS- SEA implementation, knowledge exchange, multi- stakeholder participation, ocean agenda, financing mechanisms; corporate responsibility; sectoral and cross-sectoral concerns GEF/UNDP Implementation of the SDS-SEA GEF/World Bank Pollution Reduction Investment Fund for LMEs of East Asia GEF/UNDP/IMO MSP on Public-Private Partnerships Other bilateral/multilateral projects with partners, on cost recovery basis Secretariat Services (country- financed) Technical Services (project financed ) Regional Partnership Fund Voluntary contributions of resources from countries, international agencies, donors, institutions and individuals

Strategic Partnership for the Implementation of SDS-SEA 1. GEF/UNDP Regional Project on Implementation of the SDS-SEA 2.GEF/World Bank Regional Project on Pollution Reduction Investment Fund for the LMEs of East Asia

Objective: To scale up investment in pollution control of land-based water pollution in coastal urban and peri- urban areas of East Asia. Two main subcomponents: 1. investment fund - grant financing to World Bank pollution reduction projects in the pipeline; 2. project preparation revolving fund - one or more regional (multi-national), national or sub-national revolving funds Pollution Reduction Investment Fund

Project on the Preparation of the Revolving Fund Investment Fund: e.g., Manila Bay direct linkage between WB loan and the implementation of Manila Bay Coastal Strategy one major watershed (Metro Manila) private sector investment in sewage treatment facilities (2007) partnerships and replication strategy

Financing Facilities for Environmental Project GEF/WB PROJECT PREPARATION REVOLVING FUND PEMSEA Private Sector Institutions Public Sector Institutions Donors (Bilateral, Multilateral) Private Firs Local Municipalities Community Groups Fully Developed Project Application Financing for Approved Projects Organizational & Technical Assistance Project Developers / Promoters Private Firms Local Municipalities Community Groups Technical Advice (Environmental/Sector Issues) Project Preparation Loan Application Project Preparation Loan Repayment of Project Preparation Loan Information About Available Financing

Demand analysis Implementation structure Regional revolving fund design Partnership arrangements Cost estimates Risk estimates PDF-B Project on the Preparation of the Revolving Fund

Public – Private Partnership Process MSP on Public-Private Partnerships in Environmental Investments Letter of Intent PFS, WTP Surveys & Stakeholder consultations Partnership Proposals MOA between public & private partners InvestorsRoundtable Expression of Interest Verification/Joint Venture Agreement