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

aged to provide significant benefits for project proponents, good-quality pre-feasibility
and feasibility studies, and, as a result, a strong project pipeline for future
funding. Factors assessed in project preparation studies included strategic longterm
development needs and priority investments; cost effectiveness and the efficiency
of investments; pollution reduction objectives; environmental impacts;
consumer affordability; the financial capacity of recipients; and the long-term sustainability
of operations (Presentation: Davies, 2008).
In 2008, the European Commission launched the Infrastructure Project Facility
(IPF) with the main aim of providing direct support to the development and
upgrading of infrastructure in the energy, transportation, environment and social
sectors, thus contributing to sustainable development in the region. The facility
ensures continuity with the EPPF and carries on the preparatory work initiated.
The IPF comprises two windows: a) the Technical Assistance Window, in
which grants are used to help prepare infrastructure investment projects to be financed
by IFI loans; and b) the Municipal Window, implementation support once
the project is formulated, in which grants are used to co-finance infrastructure investments
at municipal level, together with IFI loans (DABLAS, 2008).
The core result of the facility will include the achievement of high-quality investment
proposals for projects related to infrastructure remediation and upgrading
through the preparation of pre-feasibility studies, feasibility studies and financial
affordability analyses, completed designs, budget and financial plans, preparation
work for the tender process and supervision of implementation work. The transfer
of know-how and capacity building at national and local levels along with enhanced
collaboration with IFIs are also emphasised as intended results (IPF, 2008).
All IPA beneficiaries are, in principle, eligible for IPF financing. However, priority
will be given to potential candidate countries, as they are in greatest need of
support and are not eligible for Component III of the IPA. For potential candidate
countries, the IPF will help to enhance the complementarity between IPA grants
and IFI loans (IPF, 2007). The facility is designed on a multi-annual basis in line
with IPA programming and provides grants and loans for infrastructure investments
in the region, particularly in the environmental sector, for water supply, wastewater
treatment facilities, sewerage systems, solid waste management, hazardous waste
treatment facilities and emission control. All projects submitted to the facility
should be in accordance with national sector strategies and the EU environmental
acquis and included in the regional pipelines (Presentation: Gofas, 2008). The average
budget per project will be approximately EUR 500,000. Projects and project
budgets are reviewed on a case-by-case basis, and higher or lower levels of support
will be approved under specific circumstances.
Initially, EUR 16.2 million available from the CARDS programme were allocated
through the facility in 2008 and EUR 24 million through the Municipal
Window. In 2009, an additional EUR 16.2 million were channelled to the IPF.
The Specific Kosovo IPF Window received financing of EUR 25 million for municipal
infrastructure. In summary, up to 2009 the IPF instrument received funding
of EUR 83 million. In June 2008, the steering committee of the IPF approved
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 177