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

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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
EUR 2.35 million for energy efficiency projects (REC, PEIP Analytical Reports,
2007–2009). Croatian Waters is responsible for providing assistance in project
preparation and IPA applications in the water sector.
Between 2007 and 2009, EUR 21.5 million were disbursed for the remediation
of official landfills; EUR 14.3 million were allocated for the remediation and
closure of illegal dumpsites; and EUR 53.4 million for the remediation of hotspots.
Between 2009 and 2011, the EPEEF will give EUR 51.5 million to support investments
for the establishment and construction of RWMCs (REC, PEIP Analytical
Reports, 2007–2009).
The authorities in Kosovo (as defined under UNSCR 1244) are investigating
the possibility of establishing an environmental fund and the government is in the
process of developing the first draft of the law on establishing the fund, which
would probably be managed initially by the Ministry of Environment and Spatial
Planning and later transformed into an independent body. The EC CARDS project
assisted in developing an appropriate frame for the structure of the fund (REC,
PEIP Analytical Reports, 2007–2009). No investments are planned utilising this
fund. Anther reason for the slow progress in terms of establishing the fund is the
pending permission of the IMF. The budget allocated for environment in 2010 by
the Ministry of Environment and Spatial Planning has not yet been approved because
the government is experiencing difficulties in assessing capital investments
in the environmental sector (REC survey, 2009).
The Fund for Environmental and Nature Protection and Promotion of the former
Yugoslav Republic of Macedonia was established in 1998. Between 1998
and 2001, USAID technical assistance was provided to the fund with the aim of developing
an effective, transparent financing institution capable of providing grant
and loan finance to local administrations and industry in order to facilitate pollution
prevention and environmental protection. From its creation, the fund was exposed
to highly variable political and economic conditions, resulting in frequent
changes of leadership and the lack of a long-term strategy for its operations. The
general perception of the fund by other stakeholders was that it lacked clearly defined
priorities and transparent financing strategies and procedures, and that it was
exposed to political influences affecting project selection procedures. As a consequence,
based on the recommendations of the IMF, the fund ceased operations
under the new Law on Environment. Environmental investments are now administered
through an environmental investment programme integrated within the
structure of the Ministry of Environment and Physical Planning as the Department
for Sustainable Development and Investments (ADA, 2008d). The ministry
continues to collect charges and to provide limited financial assistance in the form
of grants to NGOs, public enterprises and local authorities. The Macedonian environmental
fund thus became a political hostage and can serve as an example of
how not to manage an environmental fund.
For more than five years the Ministry of Tourism and Environment of Montenegro
has been considering the possibility of introducing an eco-revolving fund
for financing environmental investment projects by public utilities at the municipal