1. NDEP successful cooperation for better environment in the ND Area
ND Day, Brussels, 9 December 2015 T
Jaakko Henttonen
NDEP
European Bank for Reconstruction and Development 1

2. What is NDEP?
Multi-donor Fund set up in Mandate recently extended until 2022.
EBRD acts as Fund Manager. Other IFIs include NIB, NEFCO, EIB and KfW
Contributions are used as grants to finance loan- based concrete investment projects
Two windows of activities: - nuclear and environmental

3. NDEP Support Fund – December 2015
Environmental
Nuclear
€44m
European Union
€40m
€60m
Russia
France
Canada
€20m
€16m
Germany
€10m
€26.2m
Sweden
€19m
Finland
€2m UK
€25.2m
Denmark
€1m
€4.4m
Norway
€17.9m
Netherlands
Belgium
€0.5m
Belarus
€181.6m
€166.6m
€348.2m

4. NDEP projects in the Baltic & Barents Sea region
Baltic Sea
This is the area of operation of NDEP which stretches of the region of the Baltic and Barents seas area. The purpose of the Fund is to improve the ecological state of both Seas and to improve the health and living conditions of people in the ND area. The map shows the cities which are benefiting from NDEP investments. Starting from the north there is Murmansk (Lepse ship transportation + de-commissioning work in Adreeva Bay + plans for a water/ww project), a number of nuclear safety projects in Gremikha, Severodvinks and Archangelsk. Also wastewater treatment investments in Archangelsk ongoing. Further ww projects in Syktyvkar, Vologda, Petrozavodsk, Novgorod, Kaliningrad and St Petersburg. StP has been the flagship city for NDEP wwt investments (more about it later). We also have DH projects in Vologda, Kaliningrad and several other smaller cities. There are also three projects in Belarus signed and ready for implementation
● Vitebsk
● Grodno
● Brest

5. NDEP (1) Nuclear window Andreeva Bay
Decommissioning of buildings and transportation of SNF from 22,000 spent fuel assemblies
Lepse
Dismantling of the Lepse ship and removal of SNF
Papa class nuclear powered submarine reactors defueling
These are the main sectors supported by NDEP. We are looking for projects in the municipal sector to improve w/ww, solid waste management and also since recently (last couple of years) the donors are keen to improve energy efficiency. Typically we deal with a district heating companies where loans are for the supply side and ndep grants for the demand side measures whereby the residents have an opportunity to regulate their heat and hot water suppply

6. NDEP (2) Environmental window
Water and Wastewater treatment
Energy Efficiency and District Heating
Municipal Solild Waste Management
These are the main sectors supported by NDEP. We are looking for projects in the municipal sector to improve w/ww, solid waste management and also since recently (last couple of years) the donors are keen to improve energy efficiency. Typically we deal with a district heating companies where loans are for the supply side and ndep grants for the demand side measures whereby the residents have an opportunity to regulate their heat and hot water suppply

7. Projects Completed
Completion date 1
St Petersburg Southwest Wastewater Treatment Plant (NIB)
2005 2
Sosnovy Bor Water and Wastewater (NEFCO)
2013 3
St Petersburg Northern Sludge Incinerator (EBRD)
2011 4
St Petersburg Flood Protection Barrier (EBRD) 5
Vologda Water and Wastewater Services (EBRD) 6
Novgorod Water and Wastewater
(NIB)
2014 7
St Petersburg Ten Suburban Wastewater Treatment Plants (NEFCO) 8
Kaliningrad PIU NDF (EBRD) 9
PIU for Agricultural Waste in Leningrad Oblast (NEFCO

8. Expected completion date NDEP Grant disbursed ratio
Projects to be completed by 2015/2016
Expected completion date
NDEP Grant disbursed ratio 1
Archangelsk Municipal Services (EBRD)
2015
94% 2
Municipal Programme in Leningrad Oblast (NIB)
99% 3
Komi Syktyvkar Municipal Services (EBRD)
93% 4
Kaliningrad District Heating (EBRD)
91% 5
Pskov Water and Wastewater Services (EBRD) 6
Vologda District Heating (EBRD)
56% 7
Neva Programme Phase 1 (NIB)
2016
77% 8
Kaliningrad Water and Wastewater (EBRD)
92%

9. Projects to be completed by 2017/2022
Projects to be completed by 2017/2022
Expected completion
date
Country 1
Petrozavodsk Water and Wastewater (NEFCO)
2016
RUSSIA 2
Gatchina Wastewater Services (NEFCO)
2017 3
Vyborg Wastewater Services (NEFCO)
2022 4
Vitebsk Wastewater Services (EBRD)
2019
BELARUS 5
Grodno Wastewater Services (NIB) 6
Brest Wastewater Services (NIB) 7
Lida Wastewater Services (EBRD) 8
Polotsk Wastewater Services (EBRD) 9
Minsk District Heating (NEFCO)

10. Investment leverage of NDEP grants
NDEP grants of EUR 130m leverage:  425 MEUR of IFI loans  648 MEUR of national Russian & Belarusian budget funds  1.3 billion of EURO overall investment costs
NDEP grant of 1 EURO leverages:  3.3 EUR of IFI loan funds  Euro of national funds  100 Euro of overall investment

11. Environmental leverage of NDEP grants
The NDEP projects in Russia can deliver phosphorous reductions of 1,859 tonnes per year (30% of total P discharges by Russia).
For Belarus, NDEP projects can deliver phosporous reductions are 1,660 tonnes per year (21% of total P discharges by Belarus)
The costs of reducing one tonne of phosphorus load through NDEP in Russia and Belarus is around 20% of the cost incurred in Finland, Sweden or Germany.

12. Why is NDEP successful? LIGHT AND TRANSPARENT GOVERNANCE STRUCTURE
Rules of the Fund + Assembly + Steering Group
COOPERATION OF EQUAL PARTNERS
Donors (including Russia/Belarus) + IFIs + Clients
FOCUS ON PROJECTS AND HIGH STANDARDS
Project driven partnership with projects implemented to the highest international standards of the Implementing Agencies (EBRD, EIB, NIB, NEFCO, KfW)
three quarters of blcakl carb aemeissions come from coal fires boiles ion the barentys region – 80% come from the era boilers 1955 – falls on snow and

13. Why is NDEP needed?
Energy Efficiency investments in the Russian Euro-Arctic will produce environmental benefits when outdated heating facilities are modernized.
Black carbon is 2,000 times more dangerous to the Arctic ice than CO2. In Barents Euro-Arctic region 75% of black carbon emissions come from coal/mazut fired boilers.
There is still vast potential to improve water and wastewater treatment and solid waste management in north-west Russia (small municipalities) and in Belarus.
three quarters of blcakl carb aemeissions come from coal fires boiles ion the barentys region – 80% come from the era boilers 1955 – falls on snow and

14. For more on NDEP… Jaakko Henttonen NDEP Adviser
Please contact:
Jaakko Henttonen
NDEP Adviser
Contact via NDEP Secretariat
Ewa Manik
Associate Manager
EBRD, One Exchange Square, London EC2A 2JN
Tel , fax
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