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
FIGURE 18: Bilateral ODA environmental infrastructure allocations to SEE countries (2005–2007)
USD
million
70
60
50
40
30
20
10
0
Source: Authors’ calculation based on OECD data
S T R AT E G I C M O V E S
2005 2006 2007
ply and sanitation and waste management investments grew from USD 49 million
in 2004 to almost USD 63 million in 2007, an increase of 22 percent in two years.
The following countries provide bilateral ODA grant support to SEE countries
for environmental infrastructure projects (listed in order of importance): Germany,
Austria, Japan, Norway, Sweden, Switzerland, the Netherlands, Italy, Luxembourg,
Spain, the United Kingdom, the United States and Greece. Around half of the assistance
to environmental infrastructure was provided by Germany.
The majority of donor institutions are assisting in water-related issues and contributing
to waste sector projects. Technical assistance for project preparation is provided
by most countries. Financing is channelled in the form of grants, except for Kf W,
which also offers loans. A maximum size of eligible project is set by only a few donor
organisations: in general project size is flexible. A co-financing requirement in the
form of own contribution was highlighted by Austria and Germany; however, most
donor institutions require some form of financial commitment by project proponents.
IFI financing
In the context of this publication, international financing institutions are international
banks providing financial assistance to countries with economies in
transition. The financial support is provided in the form of soft loans with pay-