Environmental Investment Centre (EIC) Rävala pst 8, TALLINN Tel: Fax:

2 Who is EIC? A foundation, legal body under private law Established by the Estonian Government, Ministry of Finance on Registered on

3 Objective of the EIC: Improved state of Environment Support for: liquidation of environmental damage related to the utilisation of natural resources; restoration of the state of the environment; assisting the natural renewal of renewable natural resources; researching the possibilities for additional supply of natural resources and recovery of waste; monitoring the environment ;

4 Objective of the EIC (continued) : implementation of environmental measures reducing pollution; organisation of environmental research and protection of natural objects; activity targeted to liquidation of pollution centres causing environmental pollution or to restoration of former state of environment; compensation of damage caused by species under protection.

5 Task of the EIC: to provide investments for international, national, regional and local programs and measures, which are in conformity with environmental strategy in the field of: environment protection; nature conservation; environmental and nature control;

6 Task of the EIC (continued) : elaboration and procurement of non-waste technology, equipment and other technical means; environmental and nature conservation training and educational work and in-service training and propaganda; solving other environmental problems of national and regional importance.

7 Structure of the EIC

8 Personnel of the EIC Director Assistant Programme Manager Programme Specialist ISPA Coordinator ISPA Project Coordinators (2 persons) ISPA Financial Manager Lawyer Technical Supervision Specialist Internal auditor Accountants (3 persons)

9 EIC means: the assets transferred to the Foundation upon establishment of the Foundation; appropriations from state budget; allocations from rural municipalities and city budgets; special allocations of governments, legal and natural persons of foreign countries and international organisations;

10 EIC means (continued) : grants; repayment of loans granted by the Foundation and related interest receipts; funds received in course of benefit events of the Foundation; other receivables.

11 Appropriations from State Budget (“Act on the Use of the Money Accruing from Exploitation of Environment” § 2, OJ I 1999, 54, 583, passed on 16 June 1999): 100% pollution charges; 50% packaging excise duties; 100% fee for mining rights at the deposits situated in trans- boundary water bodies and in economic zone; 30% fee for mining rights at the deposits of national importance; 100% fee for special use of water of trans-boundary water bodies; 50% fee for special use of water of the water bodies (except trans-boundary water bodies) and of groundwater layers;

12 Appropriations from State Budget (“Act on the Use of the Money Accruing from Exploitation of Environment” § 2, OJ I 1999, 54, 583, passed on 16 June 1999) (continued): 80% hunting fees; 100% price for the right of hunting for game; 100% fee for the right of fishing; 3,9%fee for the felling right of standing crop sold from the state forest for performing regeneration cutting; 3,9%income from selling the timber produced by a manager of state forest by way of regeneration cutting; 100%compensation for environmental damage

13 Selection of projects for the programme 1. Application for financing Applicant (e.g. municipality, private company, Ministry of Environment) shall fill in the application form established by EIC Applications related to nation-wide and regional projects shall be submitted directly to EIC Applications related to local projects to be carried out in a certain county shall be submitted to the environmental board of the county, where a list of local projects shall be completed, prioritised and then forwarded to EIC

14 Selection of projects for the programme (continued) 2. Appraisal of project proposals For reviewing the project proposals, the EIC forms a working group (expert group) for each environmental program Project proposals are reviewed once a year during the second half of the year After evaluation, projects considered as the most important on the basis of the evaluation criteria shall be included to the program The Director of EIC presents programmes prepared by working groups for approval to the Board of EIC The Board of EIC makes a decision on the financing of a programme or returns the programme to the Director of EIC for making amendments.

15 Financing procedure The Financing procedure (following the reimbursement principle): EIC notifies the Applicant that his/her project was approved and included to the programme EIC sends financing agreement (contract) to the Client Client returns fulfilled and signed contract to EIC, along with the required appendixes (project description, budget, copy of the contract between the client and employee, procurement summary) EIC signs the contract and makes advance payment (30%, 50% or >50%) to the Client The Client sends his invoices, progress reports and funding orders bearing the required signatures to the EIC EIC makes payments only for works completed

16 Funding of programmes in 2001 Name of the programmeVolume (EUR)Volume (EEK) Earth crust Environmental awareness Water protection Air pollution protection Technology Waste Management Nature protection Forestry Hunting Fishery County LIFE TOTAL