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

The EFRS is largely funded via the state budget, but it can also obtain funds
from foreign and international sources, such as IFI loan and soft loan schemes.
Starting from 2008, fund revenues are secured through fees for the use of natural
resources and for environmental impacts; the RS budget; fees levied on polluters;
and grants (ADA, 2008j). Funds are allocated through loans, subsidies, financial
help and donations. Since money is allocated to the EFRS from water fees (15 percent
of total revenues), the Ministry of Water Management, Forestry and Agriculture
requires the EFRS to dedicate those funds to water protection activities.
At the time of writing there are no employees under the EFFBiH; the documents
regulating the work of the EFFBiH still remain at draft level, and their adoption is
not expected in the near future. Initial funding was received for the establishment of
the EFFBiH and additional revenues (water charges) were allocated from 2006. Unspent
finances are expected to be accumulated under the EFFBiH and directed to
environmental projects after the fund becomes operational (ADA, 2008i). There
have been no environmental expenditures to date. Various IFIs have a keen interest
in the actual establishment and stable functioning of the EFFBiH according to the
best available practice, helping both entity funds to apply jointly for IPA and bilateral
donor funding. At present, the status of the fund appears complex and the decision
to start operation could depend on strong external technical assistance to build up the
foundation for a solid environmental institution in FBiH.
Croatia’s Environmental Protection and Energy Efficiency Fund (EPEEF),
which is an extra-budgetary fund, became operational in 2004. A tool for implementing
environmental policy and financing environmental programmes, at present
it focuses primarily on co-financing municipal projects in waste. The fund’s
resources come from earmarked charges levied on environmental polluters and
users; charges for industrial waste and motor vehicle charges; budget transfers; and
revenues from international bilateral and multilateral cooperation in the field of
environment (ADA, 2008k). Fund resources are allocated through grants, soft
loans, subsidised interest rates and loans from commercial banks, and are used primarily
to finance programmes and projects in accordance with the National Environmental
Protection Strategy and National Environmental Action Plan, strategic
energy documents, and other related strategies and regulations. Financing is directed
to general environmental protection, the sustainable use of natural resources,
waste management (65 percent of overall expenditures in 2005–2008), and support
for energy efficiency and renewable energy sources.
The EPEEF is responsible for the promotion and establishment of cooperation
with international and domestic financial institutions. Jointly with the Croatian
Bank for Reconstruction and Development (HBOR), the fund supports the Loan
Programme for the Financing of Environmental Protection, Energy Efficiency and
Renewable Energy Sources. The fund is also involved in managing EU assistance
to Croatia and is currently implementing a project for developing waste management
infrastructure under the IPA 2007–2009 Environmental Protection Operational
Programme (EPOP). In 2006, the EPEEF disbursed a total of EUR 102
million, of which EUR 100 million was allocated for environmental projects, and
C H A P T E R 7
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