Strategic Moves - Regional Environmental Center for Central and ...

150
C H A P T E R 7
F I N A N C I N G E N V I R O N M E N TA L I N F R A S T R U C T U R E I N V E S T M E N T S
S T R AT E G I C M O V E S
Future environmental improvements in Kosovo (as defined under UNSCR
1244) depend on the budget allocated to the Ministry of Environment and Spatial
Planning (MoESP) and on donor support. The priority project is the Air Quality
Monitoring Network, for which 30 percent of the costs (EUR 965,000 for the period
2008–2010) will be covered from the consolidated budget of Kosovo (as defined
under UNSCR 1244).
Foreseen expenditures in the field of environment for the years 2010 to 2012 in the
form of capital investments for approved projects total EUR 3.4 million, whereas investments
in new projects will total EUR 9.8 million. Currently projects worth EUR
24 million are being implemented with IPA co-financing for the closure of dumpsites
and for investment in water utilities (REC, PEIP Analytical Reports 2007–2009).
The Kosovo Environmental Action Plan (KEAP), listing all environment-related
priority goals for 2006 to 2010, is the main framework for all activities undertaken
for the purposes of environmental improvement and protection. The
KEAP stipulates a clear division of responsibilities between all stakeholders involved
in environmental decision making and provides guidelines for international
funding mechanisms and donor coordination. The KEAP is based on funding
from a variety of donors and participation from the government budget of between
5 and 20 percent. However, the share of funds currently dedicated to projects in the
field of environment from the government budget under the KEAP is not sufficient
to bring about significant environmental improvements (KEAP, 2006).
The Government of the former Yugoslav Republic of Macedonia commits the
biggest share of public resources for the environment — at least 88 percent of the
available funds — to the water and waste sectors through the competent line ministries.
Each year, environmental expenditures are allocated through its Environmental
Investment Programme (EIP) in the form of grants. Between 2004 and 2007,
the EIP approved financial support to 254 environmental projects, the majority of
which were in the areas of water and waste. The Ministry of Transport and Communications
(MTC) is responsible for communal infrastructure improvement and
continuously invests in water supply and sanitation projects co-financed by grants,
loans or the national budget with support from IFIs and bilateral donors (ADA,
2008c). Additionally, each line ministry has elaborated an annual investment programme
allocating funds for the preparation of environmental project documentation
and the construction of water supply and sanitation facilities. Water
management-related projects are also supported. The total environmental expenditures
of the EIP and the Ministry of Environment and Physical Planning amounted
to EUR 2.12 million in 2006; and to EUR 1.97 million in 2007. Total environmental
expenditures from the Ministry of Transport and Communications’ own
budgetary sources in relation to water supply and sanitation purposes amounted to
EUR 3.028 million in 2006, and EUR 3.725 million in 2007 (ADA, 2008d).
The National Environmental Investment Strategy (NEIS) was adopted recently for
the period 2009–2013 and is designed to set up a comprehensive system streamlining
the available national funds and leveraging the international financing sources towards
solving environmental problems in the fields of water, waste, air quality, energy and na-