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
BOX 22: Case study — Project in SEE financed by the WB
Inland Waters, Croatia
The project will help to increase the service coverage of water supply and wastewater collection and treatment
in inland Croatia. It is in line with the country’s goal to achieve compliance with EU directives and to provide goodquality
water and wastewater treatment.
Technical assistance (EUR 5 million) — (i) EU accession support will include: the institutional strengthening of
Croatian Waters and the Ministry of Agriculture, Forestry and Water Management, and the preparation of engineering
studies and designs to be financed by the EU and other sources; (ii) project implementation support will
include consultancy services and training necessary for project implementation; and (iii) the institutional strengthening
of utilities will be used by the project beneficiary utilities and provide consultancy services and training for
utilities to increase efficiency and improve services.
Investments (EUR 100 million) — Three sets of proposed utility investments will increase water supply coverage and
improve water supply services; increase sewerage coverage and improve wastewater collection services; improve the
treatment of collected wastewater in accordance with international standards; and enhance flood protection measures
in the central Posavina area, which includes the Lonjsko Polje flood protection area (a Ramsar wetland site).
S T R AT E G I C M O V E S
• A key challenge in the implementation of the IPA is capacity to absorb funds
— that is, to set up the necessary institutions; to prepare the required project
documentation, including feasibility studies; and to provide co-financing. The
staffing and administrative capacities of project proponents are often inadequate,
and in some cases the number of employees involved in project preparation,
and their expertise, has been underestimated.
• Assistance from international bilateral donors plays an important role in the
transfer of know-how, institution strengthening, capacity building and the cofinancing
of infrastructure projects.
• The largest share of IFI funding has been concentrated in transport and municipal
infrastructure, and to a lesser extent in water and the environment.
Project preparation facilities
Project preparation facilities (PPFs) are instruments used by the EC and IFIs to
provide support to infrastructure improvements. Usually, these facilities fund technical
assistance for the preparation of sound infrastructure projects over a defined
period of time (two to three years in general). The PPFs are designed to support the
development of an appropriate pipeline of bankable projects and to promote cofinancing
opportunities between local governments, the EC, and bilateral and multilateral
donors. The specific objectives of PPFs include supporting the achievement
of national priority development goals; elaborating effective strategic plans in different
sectors, often followed by more detailed investment strategies; and increasing
the effectiveness of development assistance channelled to beneficiary countries.
Technical assistance is given for making an assessment of urgent country needs in