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Ukraine:Urban Infrastructure Project

ENVIRONMENTAL FRAMEWORKPOLICY

Final Report

Noivember 2005

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Ukraine:Urban Infrastructure Project

ENVIRONMENTAL FRAMEWORKPOLICY

Final Report

November 2005

Association - Industrial Waste Management Centre6 Bakulin Street

61166 Kharkiv UKRAINETel./Fax: +380 (57) 702 15 78

E-mail: akousine @ mail.ru

CONTENTS

PREAMBLE 2

I INTRODUCTION 5

2. REVIEW OF ENVIRONMENTAL POLICIES AND PROCEDURES OF 7

THE GOVERNMENT OF UKRAINE

2.1. Legal Framework 7

2.2. Characterisation of Environmental Law and its Separate Branches 8

3. REVIEW OF WORLD BANK EA POLICIES AND PROCEDURES 16

4. COMPARATIVE REVIEW OF UKRAINIAN AND WORLD BANK REQUIREMENTS ON 22

ENVIRONMENTAL ASSESSMENT

5. SPECIFIC FEATURES OF INVESTMENT PROJECT IDENTIFICATION AND 24

SELECTION IN UKRAINE

6. ENVIRONMENTAL SCREENING 26

7. ENVIRONMENTAL ASSESSMENT OF INVESTMENT PROJECTS 27

8. ENVIRONMENTAL MANAGEMENT PLAN 29

9. MONITORING PLAN 31

9.1. General Requirements to Environmental Monitoring 31

9.2. Development of Monitoring Plan 32

10. INSTITUTIONAL FRAMEWORK FOR ENVIRONMENTAL MANAGEMENT AND 41

ALLOCATION OF RELEVANT RESPONSIBILITIES

11. PUBLIC CONSULTATIONS AND INFORMATION DISCLOSURE 46

REFERENCES 49

ANNEXES

ANNEX 1: Tabular Information to Section 4 51

ANNEX 2: Implementation of the Integrated Environmental Permitting System 59

1

REAMBLE

owever young is Ukraine as a sovereign state, its national environmental policy has now

aken shape, being focused on the following priority objectives:

. g Ensuring the environmentally safe operation of nuclear facilities, the protection of

human health and environment, and mitigation of the effects of the Chernobyl disaster;

Improving drinking water quality;. . Improving the ecological state of rivers in Ukraine, in particular the Dnipro River;

Stabilising and improving the environmental situation in the urban and industrial

centres of the Donetsk-Dnipro region;Construction/upgrade of new and existing municipal wastewater treatment facilities;

Preventing pollution of the Black Sea and Azov Sea, and improving their ecological

state;Establishing a balanced natural resource use system and improving environmental

performance in industry, energy, construction, agriculture and transport;

Conservation of biological and landscape diversity, and expansion of nature reserves

and protected areas.

In 1998, these country's policy development priorities in the field of environment

protection, nature resource use and environmental safety were approved by the

Resolution of Verkhovna Rada (Parliament) of Ukraine [1].

In 1999, the progress and results of the state environmental policy implementation were

reported at the 6 UNECE Session in Geneva [2]. The report, presented by the Minister of

Environment Protection and Nuclear Safety, concentrated on the status of new

environmental legislation and identified key areas for its further improvement, including the

development and introduction of subordinate regulations required to facilitate the

implementation and enforcement of environmental legislation; updating of existing laws;

and harmonization of national environmental legislation with that of the EU. The

harmonization agenda was further confirmed at the 5 th Ministerial Conference

"Environment for Europe", held in Kyiv in 2003. There was a broad recognition of success

achieved in implementing the Environmental Management Development Programme in

Ukraine, focused on building the capacity for systemic management of environment;

integrating the environmental agenda into the economic policy reform; improving the

efficiency of pollution reduction measures; and enhancing the environmental investment

mechanism.

Significant advances have been made in integrating the environmental policy objectives

into the country's development strategy. A team of reputable scientists has formulated the

programme for moving towards the sustainable development [3], which includes specific

environmental objectives and priority steps that need to be taken in order to achieve them.

There is a clear recognition that the improvement of the state of environment can only be

. achieved if a systemic approach is taken to plan and implement environmental actions at

an industry/region/country level.

. The following priority steps are to be taken to ensure the conservation and sustainable

management of water resources:

, The enhancement of legal and regulatory framework for managing country's water

resources;

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The implementation of river basin management concept;The improvement of water supply and wastewater treatment capacity;The improvement of control over effluent discharges into water bodies;The closure and clean-up of waste disposal sites located within the boundaries ofwater protection zones.

Another priority area for action is improving the efficiency of the state environmental reviewI rocess through:

Enhancing the legal framework for environmental review of development projects andtechnological processes by providing specific guidelines on implementation;Applying the environmental review mechanism to investment programmes;Ensuring that the environmental review takes full account of economic, environmental,sanitary and technical aspects of any proposed/existing economic activity.

ast, but not least, the convergence towards the European system of environmentaltandards is seen as a prerequisite to effective international cooperation in the field of

environment protection, including cooperation with relevant international donors on thei plementation of environmental projects that involve the capacity building and technologylransfer in the field of waste management, wastewater treatment, and cleaner production.

I should be noted that foreign investment has been rather slow to come in all sectors oflJkraine's economy, including environment-related improvements. The data of the Task

orce for the Implementation of Environmental Action Plan for CEE countries [4] indicatehat between 1996 and 2001, Ukraine attracted about 3.595 billion Euro of foreignvestments in aggregate terms, or approximately 12 Euro per capita per year. Across theSU countries, per capita foreign investment values are lowest in Uzbekistan andajikistan (4 and 3 Euro per year, respectively), being highest in Kazakhstan and Lithuania100 and 1 18 Euro per year, respectively).

he data from the above source [4] suggest that environment-related foreign investmentIso remained low over the period under consideration (1996 through 2001), being atbout 35.7 million Euro per year. On the average, this accounts for about 7% of the totalnnual environmental expenditure.

n one hand, this situation can be attributed to the lack of political stability in Ukraine. Onhe other, the insufficient appreciation and justification of all environmental and economicspects at a very early stage is considered to be one of the main factors that may affecthe implementation of any investment project. The unfortunate fate of Kharkiv Solid WasteOanagement Project and Municipal Water Utility Development Project in Mariupol and<herson can be traced back to this factor.

Jkraine's investment needs are huge, especially in the light of its European integrationagenda, which implies a substantial process of convergence towards the European;tandards of life and environment quality. In order to minimize environmental risks andnaximize environmental benefits of any investment project, significant emphasis should be)laced on the provision and application of effective, high-standard, environmentalssessment and post-project monitoring procedures.

Jkrainian legal framework for environment protection and management includes specificaws and regulations pertaining to the environmental review [5] and environmental impact,ssessment [6]. Relevant World Bank's policies and procedures, adopted to ensure the

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environmental quality of its investment portfolio, are reflected in the Environmentallissessment Sourcebook [7].

1 he present Environmental Framework Policy for the proposed Urban InfrastructureF'roject is based on the comprehensive analysis of the environmental legislation of UkraineE nd relevant policies/procedures of the World Bank, that addresses and resolvesii consistencies in the two.

4

1 .INTRODUCTION

"he World Bank plans to provide financial assistance to the Government of Ukraine forI nancing a number of priority investment projects in the field of water supply, wastewatert eatment and municipal solid waste (MSW) management within the framework of UrbanI frastructure Project.

1 he investment component of this project aims to address the most urgent needs inrnunicipal water supply, wastewater collection/treatment, and MSW management sectors,i order to reduce risks to human health and environment, and improve operationalrierformance and energy efficiency of municipal utilities.

A common environmental policy framework is required to support the technical analysisind identification of investment projects. This document should reflect policies and

procedures, adopted by the World Bank and the Government of Ukraine, with respect tot e screening, environmental assessment and environmental management of anyi entified projects during their implementation and operation.

I view of the above, the present document provides a comparative analysis ofcnvironmental policies and procedures, adopted by the World Bank and the Government(if Ukraine, in order to identify and resolve any inconsistencies between them. It identifiest e areas which require the development of specific guidelines, designed to ensure thecompatibility of the World Bank and Ukrainian practices and procedures.

pecial focus is placed upon the issues relating to the screening of projects, content andcomposition of the environmental assessment (EA) documentation, information disclosure,EA report review and endorsement, public consultation, environmental managementr lanning, monitoring, and institutional capacity building.

11 works identified for support under the above referenced projects during the preparationof these projects have been screened and assessed in compliance with the policies of theWorld Bank and the Government of Ukraine. Details concerning these proposedi ivestments are provided in the respective Environmental Assessments (EAs) for eachsite. Each EA has an Environmental Management Plan (EMP) which includes mitigationE nd monitoring plans.

1 he Mitigation Plan included under the EMP provides a specific list of actions to be takent y identified parties in order to ensure that negative environmental impact is minimized.Each EMP also has a Monitoring Plan which specifies who when and how mitigations hould take place. The Monitoring Plan is a key document for supervision actions on thelart of the World Bank Supervision Team, the PIT-Kiev, contractors, and client utilities.Gertain areas of compliance identified in the Mitigation Plan, for example related to noisea nd dust reduction, are covered under the terms of contracts let for works under ther roject; the PIU-Kiev must ensure that these terms are present. Other areas ofcompliance require more technical monitoring, the nature of and responsible party forv fhich is specified in the Mitigation Plan.

Additional information is available on the World Bank website: www.WorldBank.orq.

P ny works that are subsequently identified for funding under these projects must bes milarly screened and assessed. The initially screening would be undertaken by WorldE ank Supervision Team in collaboration with the Ministry of Environment and the PIT-Kiev

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stablished under the State Committee. The preparation of EAs for such works would behe responsibility of the targeted utilities. Clearance would require non-objection by theNorld Bank.

n the context of this report, the Environmental Framework Policy is considered as theocument, specifying the functions and responsibilities of various organizations, involvedn the environmental review process and supervising the implementation of environmentallnanagement plan for any identified project.

rhe materials, presented in this report, have been provided to the Ministry for_nvironmental Protection of Ukraine for review and comment.

rhe paper on developing and formulating the Environmental Framework Policy has beenresented and discussed with various Ukrainian specialists during the conference

'Environmental Safety: Issues and Options for Addressing Them", and published in the,onference proceedings*.

I.B. Abramov, E.S. Artemova, A.K. Kuzin, E.B. Utkina, A.L. Shustov H International Scientific and Practicalonference "Environmental Safety: Issues and Options for Addressing Them", Collection of Scientific Papers in 2

Volumes. Vol. 1 / USRIEP. - Kharkiv: Rider, 2005. - P. 3-10.

6

REVIEW OF ENVIRONMENTAL POLICIES AND PROCEDURES OF THEGOVERNMENT OF UKRAINE

.1. Legal Framework

he development of Ukraine's environmental legislation as a specialized branch of lawegan in 1990 following the adoption of the Declaration of State Sovereignty of Ukraine.he Environmental Safety Section of this Declaration stipulates that Ukraine has the rightreely to choose and establish the rules and procedures of environment protection and*atural resource management within its jurisdiction. In 1991, the Verkhovna RadaParliament) of Ukraine adopted the Law on Environment Protection as the first piece of3nvironmental legislation, which set out the legal, economic, and social arrangementstertaining to the organization of environment protection activity in the interests of currentand future generations.

he Law on Environment Protection provided a framework for further development ofspecific branches of environmental law: land law, water law, forest law, mineral resourceaw, air protection law, animal/plant life protection law, etc.

rhe structure of environmental legislation of Ukraine is outlined below:

* General provisions and principles;. Land legislation;. Water legislation;* Forest legislation;. Mining legislation;* Wildlife legislation;. Air protection legislation;. Legislation on nature reserves and protected areas;. Environmental safety legislation.

The Constitution of Ukraine (1996) defines the underlying provisions of the nationalenvironmental legislation. The environmental dimension of the Constitution of Ukraine isarticulated, both directly and indirectly, in 15 of 159 Articles (Articles 3, 13, 14, 16, 49, 50,66, 85, 92, 106, 116, 119, 132, 138, and 142). These Articles define key environmentalrights and responsibilities of citizens, and relevant powers of state governance bodies,both legislative and executive. In other words, the Constitution of Ukraine has provided agood foundation for further development of the whole environmental law system, howevergeneral is the nature of its provisions with regard to the environment: ensuring theenvironmental safety; maintaining the ecological equilibrium; safeguarding the nature.Clearly, the achievement of these objectives is only possible if adequate mechanisms arein place to prevent and/or minimize any adverse human impacts that may present risk tothe environment.

The Constitution of Ukraine declares that each and every citizen has right to live in thesafe environment, and the state is responsible for maintaining ecological safety andbalance within the territory of Ukraine, and overcoming the aftermath of the Chernobylaccident.

The compliance control and enforcement of environmental legislation are exercised byrelevant executive authorities (Ministry for Environmental Protection, State Committee for

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orestry Management, State Committee for Land Management, State Committee forNater Management, State Committee for Fishery Management, and Ministry of

Agricultural Policy). Their key tasks are to:

Improve the efficiency of environmental control in order to ensure strict compliancewith existing environmental legislation;Ensure the continuous improvement of legislative and regulatory framework;Promote the introduction of up-to-date monitoring methods and techniques;Develop and enhance the methodological framework and guidance in the field ofenvironment protection.

rhese executive bodies have authority to exercise control over:

The use and protection of land and mineral resources (including groundwater sources);The use and protection of surface waters, marine environment and natural resourcessustained in the inland waters, territorial waters, continental shelf, and exclusive(marine) economic zone;The protection of ambient air;The protection of forest reserves and other plant life;The protection of wildlife and combating of illegal hunting;The use and conservation of nature reserves and protected areas;The management of hazardous substances (including toxic waste, both industrial andhousehold);The compliance with the radiation safety regulations;The compliance with the environmental laws and safety standards in moving thetransportation means and freight across the state border.

The hierarchy of legal and regulatory acts is presented below:

1. International conventions, treaties, protocols and agreements ratified by the VerkhovnaRada (see the list of 51 conventions in the Annex);

2. Laws of Ukraine;3. Subordinate legislative documents adopted by the Verkhovna Rada of Ukraine;4. Decrees issued by the President of Ukraine;5. Regulations issued by the Cabinet of Ministers of Ukraine;6. Mandatory regulations issued by the Ministry of Environment and other governmental

bodies of Ukraine;7. Sectoral regulations issued by the state governance bodies.

The environmental aspects of legal relationships are also regulated by relevant legalprovisions contained in other parts of the country's law (civil law, administrative law,criminal law, etc.). More specifically, these provisions specify the grounds and details ofpunitive actions/penalties of disciplinary, administrative, material and/or criminal nature,imposed on an environmental offender and related to the harm done by the offence,environmental risk, and severity of adverse impact produced.

2.2. Characterisation of Environmental Law and its Separate Branches

Currently, Ukraine's environmental legislation comprises over 400 legislative andregulatory documents, including about 80 Laws and Resolutions adopted by theVerkhovna Rada of Ukraine, about 40 Presidential Decrees, and about 250 Resolutions by

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t e Cabinet of Ministers of Ukraine. To ensure their implementation and enforcement,everal hundreds of specific regulatory documents (ministerial orders) have been issued

tiy relevant ministries and agencies.

1'he Law of Ukraine on Environment Protection was the first piece of framework legislation,toth chronologically and in terms of its 'cornerstone' significance. It was adopted on June'5, 1991.

he Preamble and Article 1 of this Law formulate the objectives and goals of the nationalenvironmental legislation, namely the pursue of environmental policy aiming to ensure theconservation of environment that is safe for living and non-living nature; the protection ofiuman life and health against negative effects arising from the pollution of environment;he achievement of harmonic interaction between the society and nature; the conservation,ustainable management and reproduction of natural resources. The key role ofnvironmental legislation is to facilitate the achievement of these objectives/goals throughhe effective regulation of societal relations with elements protected by the law (Article 5).hese include all components of the natural environment and the whole totality of natural

r esources.

'-his framework Law defines the powers and responsibilities of legislative and executiveuthorities in the field of environment protection. Other provisions of the Law relate to theollowing issues:

Monitoring, forecasting, data accounting and disclosure of information;Environmental review;Setting standards and emission limit values;Control and supervision;Regulating the natural resource uses;Economic mechanism of pollution control;Environmental safety measures;Protected areas;Emergency situations;Dispute settlement and liability issues;International relations.

ome general provisions of this framework Law on Environment Protection were furtherlaborated in the Law of Ukraine "On Environmental Review" (1995) and specific sectionsf other key laws.

o facilitate the implementation of environmental laws, the Cabinet of Ministers of Ukraineas issued a number of subordinate regulations, detailing specific permitting, limit-settingnd monitoring procedures.

.2.1. Land Legislation

he key law regulating the land use and tenure arrangements is the Land Code of Ukraine1990, amended in 1992). It was adopted in order to facilitate the sustainable managementnd conservation of land resource, the development of land tenure arrangements thatnsure equitable access to land, the conservation and restoration of soil fertility, the

mprovement of environment, and the protection of land tenure rights.

9

he Land Code regulates various aspects of land tenure, and defines relevant powers andlesponsibilities of state authorities with regard to land. It contains provisions concerningand acquisition (withdrawal), rent collection, and land tenant rights/responsibilities.

greater level of detail with regard to land rent issues was provided in the special Law on-and Rent (1992, amended in 1996), which defines fee rates and collection procedures,3nd revenue administration rules.

.2.2. Water Legislation

.he legal framework for water management in Ukraine is provided in the Water Code1995) and other laws, designed to facilitate the conservation, sustainable and scientificallyustified use, and restoration of water resources; the protection of waters against pollution,ontamination and depletion; the prevention and mitigation of harmful effects of waters; themprovement of ecological state of water bodies; and the protection of water user's rights.

Nccording to the Water Code, the exclusive ownership of water resources (water bodies)ests with the people of Ukraine.

rhe Water Code defines the powers and responsibilities of legislative and executive3uthorities with regard to water resource management, and the arrangements for publiconsultation on water issues. It regulates a broad range of issues, from the setting of

;tandards and pollution/abstraction limits to the management of water uses and,onservation of waters. Also, it includes provisions that set a framework for water control,lnonitoring and inventorying, and provides the economic mechanism for water uselnanagement. The detailed implementation procedures are provided in the followingubordinate regulations: "On the Incorporation of Biotesting Methods into the Water

l uality Control System" (1992), "On the Procedure of Execution of State WaterIonitoring" (1996), "On the Procedure for Calculation and Setting Water Use Fees'including fees for water abstraction and wastewater discharge into water bodies), and "Onlater Fee Setting for Hydropower Sector and Water Transport (1999). Also, the Cabinetf Ministers of Ukraine approved the Procedure for Development and Approval of

I_mission Limit Values for a Range of Regulated Substances (1996), the Rules onI rotecting the Inland and Territorial Waters against Pollution and Contamination (1996),3nd the Rules on Protecting the Surface Waters against Pollution Carried with WastewaterDischarges (1999).

Iey existing environmental regulations and standards in the field of water resourcenanagement include:

The Resolution by the Cabinet of Ministers of Ukraine "On the Procedure ofDevelopment and Approval of Pollution Discharge Limits and the List of PollutingSubstances, for which the Discharge Limits are Set";The Order by the Ministry of Health of Ukraine "State Sanitary Rules and Norms:"Drinking Water. Hygienic Requirements to the Centrally Supplied Drinking WaterQuality"';The Order by the State Committee of Construction, Architecture and Housing Policy ofUkraine, approving the "Rules for Conducting the Inspection, Technical Assessment,and Certification of External Networks, Water Supply and Sewerage Facilities" and the"Regulation on the Safe and Reliable Operation of External Networks, Water Supplyand Sewerage Facilities";

10

The Order by the Ministry of Environment and Nuclear Safety of Ukraine "TheGuidance on the Procedure for Developing and Setting the Discharge Limit Values forPolluting Substances Released into Surface Waters with Effluent Discharges";State Standard GOST 17.1.3.03-77 "Environment Protection. Hydrosphere. The Rulesfor Selection and Assessment of Centralised Water Supply Sources";State Standard GOST 24481-80 "Drinking Water. Sampling";State Standard GOST 2874-82 "Drinking Water. Hygienic Requirements and QualityControl";State Construction Standard SNiP 2.04. 03-85 "Sewer System. External Networks andFacilities";State Sanitary Standard SanPiN 4630-88 "Sanitary Rules and Norms for GroundwaterProtection against Pollution";State Sanitary Standard SanPiN 4630-88 "Sanitary Rules and Norms for Surface WaterProtection against Pollution";State Sanitary Standard SanPiN 4631-88 "Sanitary Rules and Norms for Coastal WaterProtection against Pollution";Methodological Guidance Document KND 211.1.4.010-94 "Environment Protection andSustainable Use of Natural Resources. Environmental Quality Assessment of Surfaceand Estuarine Waters in Ukraine. Methodology";Methodological Guidance Document KND 211.1.4.046-95 "Biotesting andDetermination of Acute Toxicity Levels in Wastewater Discharged to Water Bodies.Methodology";State Standard DSTU 3041-95 "System of Standards in the Field of EnvironmentProtection and Sustainable Use of Resources. Hydrosphere. Water Protection andManagement. Terms and Definitions";

. State Standard DSTU 3812-98 " System of Standards in the Field of EnvironmentProtection and Sustainable Use of Resources. Operational Control of WastewaterDischarges from Wastewater Treatment Plants and Industries. General Provisions";

. State Standard DSTU 3831-98 "Environment Protection. Automatic Control Systemsfor Wastewater Discharges. Types and Key Requirements";State Standard DSTU 3928-99 "Environment Protection. Hydrosphere. WaterToxicology. Terms and Definitions";State Standard DSTU 3913-99 "Environment Protection and Sustainable Managementof Resources. Automatic Samplers for Averaged Sampling of Natural Waters andEffluents. General Technical Specification and Testing Techniques";State Standard DSTU 3920-99 "Environment Protection and Sustainable Managementof Resources. Automatic Samplers for Natural Waters and Effluents. General TechnicalSpecification and Testing Techniques";State Standard DSTU 3940-99 "Environment Protection and Sustainable Managementof Resources. Water Quality/Composition Analysers. General Technical Specificationand Testing Technique.

2.2.3. Forest Legislation

The forest resource use and management issues are regulated by the Forest Code ofUkraine (1994) and other legislative documents, designed to facilitate the improvedproductivity, protection and reproduction of forest resources; the enhancement of forestresource utility; and the adequate supply of forest resources to meet society's demandsthrough the scientifically sound and sustainable management of forests.

11

According to the Forest Code, the state holds the exclusive ownership of all forests in thecountry, implying that the state may grant a lease on forest land. This document definest e powers and responsibilities of various authorities in the field of forest management,Iublic participation arrangements, and relevant rights and responsibilities of forest users.

. he Code regulates specific issues relating to the organization of forest management, thelise of forest resources and forest land, the reproduction and productivity improvement,zind the protection of forests against pests and disease. It provides a legal framework fort e collection of user charges, and introduces the incentive mechanism to encouragei nproved conservation, sustainable management and reproduction of forests. A specialection of the Code focuses on issues relating to the organization of forest management

< nd maintenance of the State Forest Inventory. The Code specifies the dispute settlementprocedure and sanctions against breaches of forest legislation.

14ajor subordinate regulations designed to facilitate the implementation of the Forest Codei dclude: the Sanitary Rules for Forests in Ukraine; the Rules of Tree-Felling, Restockingcind Afforestation, the Procedure for Maintaining the State Forest Inventory and ForestF egistry, the Forest Management Regulation Procedure (detailing the calculationprocedures and fee rates for forest harvesting and evaluation of damage, andermitting/licensing procedures).

;.2.4. Mining Legislation

I i Ukraine, mining operations are regulated by the Mineral Resource Code of Ukraine( 994), the Mining Law of Ukraine (1999) and other relevant laws that provide a legalf amework for the sustainable integrated management of mineral resources and theirconservation, the protection of human safety, property and environment from the adverseinpacts of mining operations, and the protection of rights and legitimate interests ofcitizens and legal entities.

1 he Code declares that the exclusive right to use, possess and dispose of mineralr zsources rests with the people of Ukraine. It defines the competencies of legislative andE xecutive authorities with regard to the regulation of mining operations, and provides fort ie participation of the public in decision-making on mineral resource management. The(ode regulates various issues relating to the lease of mineral deposits (including licensingprocedures), defines the rights and responsibilities of mineral resource users, and sets outt e rent collection procedure. Specific sections of the Code contain detailed provisions ont e geological surveillance, mineral deposit inventorying, design/construction/operation ofn ines, conservation of mineral resources, state control and supervision of geologicals urveillance and mining operations. It sets out the dispute settlement procedures and the1i t of offences.

2.2.5. Wildlife Legislation

T he legal framework for protection, use and reproduction of wild animal world withinL kraine is provided in the Law of Ukraine on Animal World (1993, amended in 1996) ando her legislative documents, adopted in order to ensure the protection of wild animals vecies and improvement of their habitats, and conservation/maintenance of animals )ecies diversity in the natural environment, captive and semi-captive environment.

Tie Law provides definitions for those animal world features that constitute the naturalr source of national significance. According to the Law, the state represented by the

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erkhovna Rada of Ukraine holds the state ownership of country's animal world. There isa provision that enables the grant of property right, both collective and private, with regardlo certain animal world features. The Law specifies key requirements and principlesl elating to the organization of protection, sustainable management and reproduction ofnimal species, and relevant rights and responsibilities of citizens.

he Law defines various arrangements for management and use of animal world features,nd relevant user responsibilities. Specific sections of the Law focus on the issues relating

o the organization of animal world conservation, monitoring, accounting, inventorying andontrol.

he Law defines the list of offences and applicable disciplinary, administrative, civil andriminal sanctions.

, pecial guideline documents have been developed for regulatory authorities and naturel sers.

2.2.6. Air Protection Legislation

.rhe legal and institutional framework, and key environmental requirements in the field of;mbient air protection are defined in the Law of Ukraine on the Ambient Air Protection1992, amended in 2001).

.rhis Law aims to facilitate the maintenance and restoration of ambient air to its natural!tate, the provision of safe living conditions and environmental safety, and the preventionof harmful effects of ambient air on human health and environment.

The Law contains specific provisions on ambient air quality standards and emission limitalues, air protection measures (emission control, institutional/economic mechanism, basicequirements for industries, etc.). It defines and establishes the arrangements for airuality control and monitoring, and specifies offences punishable under the Law.

ey existing regulations and standards in the field of air protection include:

The Resolution by the Cabinet of Ministers of Ukraine, approving the "Regulation onthe Procedure for Determining the Level of Impacts on Ambient Air, Attributed toPhysical and Biological Factors";The Resolution by the Cabinet of Ministers of Ukraine, approving the "Regulation onthe Air Emission Permitting Regime for Stationary Sources";The Resolution by the Cabinet of Ministers of Ukraine, approving the "Regulation onthe Execution of State Control Functions in the Field of Ambient Air Protection";The Regulation on the Organisation and Implementation of Monitoring in the Field ofAmbient Air Protection;The Order by the Ministry for Environmental Protection and Nuclear Safety of Ukraine"On the Approval of Guidelines on the Preparation and Contents of a Site-Specific AirEmission Inventory Report";The Guidelines on Preparing the Inventory of Air Emissions and Sources;Maximum Admissible Concentrations (MACs) and 'Probable Safe Effect Levels' forPolluting Substances Present in the Ambient Air in the Populated Areas;The Calculation Methodology for Air Emissions from Motor Transport;The Set of Determination Techniques for Harmful Substances in Gaseous Matter;

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. The Guidelines on the Determination of Background Concentrations of Pollutants in theAmbient Air;

. State Standard DSTU 2608-94 "Gas Analysers for Air Quality Control. TechnicalSpecification and Testing Techniques";

. State Standard 2603-94 "Gas Analysers for Industrial Emission Control. TechnicalSpecification and Testing Techniques";

. State Standard DSTU 2501-94 "Gas Analysers for Control of Emissions from MobileSources. Technical Specification and Testing Techniques";Methodological Guidance Document KND 211.2.4.064-98 "Metrological Support. TheOrganisation and Implementation of Interlaboratory Quality Control Programme";Methodological Guidance Document KND 211.2.4.064-98 "Metrological Support.Industrial Emission Sampling".

.. 2.7. Legislation on Nature Reserves and Protected Areas

Jkraine's legislation relating to the nature reserves and protected areas comprises the' aw of Ukraine on Nature Reserves and Protected Areas in Ukraine (1992), the Law ofVkraine on the Exclusive (Marine) Economic Zone of Ukraine (1995), the Regulation on'he Red Data Book of Ukraine (1992) and other legislative and regulatory documents.

rhese laws and regulations establish the legal framework for the organization of naturerotection activities within the land and water areas subject to special protection. Theyontain detailed provisions with regard to classification, ownership and management

3rrangements, environmental requirements, and legal liability for a breach of law.

.2.8. Environmental Safety Legislation

This pool of environmental legislation comprises those laws that focus on the chemical andnuclear safety, and waste management. Major laws grouped into this category include: theaw on the Status and Social Protection of Citizens Affected as a Result of the Chernobyl

Accident (1 991), the Law on Pesticides and Agrochemicals (1995), the Law on Utilisationof Nuclear Power and Radiation Safety (1995), the Law on Management of RadioactiveWaste (1995), the Law on Civil Defence (1993), the Law on the State of Emergency1992), the Law on Protection of Human Health against the Impact of lonising Radiation1998), the Law on Waste (1998).

The list of key existing regulations relating the management of wastes and hazardoussubstances is provided below:

* The Resolution by the Cabinet of Ministers of Ukraine "General Requirements to theOrganisation of Recycling, Treatment, Disposal or Alternative Usage of Poor-Qualityand Dangerous Products Withdrawn from Circulation";

* The Order by the State Committee of Construction and Architecture of Ukraine "On theApproval of Technique for Inspection and Certification of Hydroengineering Facilities,

. Flow Diversion Systems and Industrial Waste Disposal Sites";* The Sanitary Rules Regulating Construction and Maintenance of Household Solid

Waste Disposal Sites (No. 2811-83);* State Sanitary Standard SanPiN 4015-85 "Guideline Levels of Toxic Substances in

Industrial Wastes Disposed Off-Site";* State Sanitary Standard SanPiN 3898-85 "Maximum Quantities of Toxic Industrial

Wastes Permitted for Disposal at the Household Solid Waste Disposal Sites";* State Sanitary Standard SanPiN 3210-85 "MAC Levels of Chemical Substances in

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Soil";State Sanitary Standard SanPiN 128-4433-87 "The Sanitary Guidelines on theAdmissible Concentrations of Chemical Substances in Soil";State Sanitary Standard SanPiN 2.2.7.029-99 "The Hygienic Requirements to theIndustrial Waste Management and Classification of Wastes by the Level of HealthHazard";State Construction Standard SNiP 2.01. 28-85 "Industrial Waste Treatment andDisposal Facilities. Key Design Provisions";Design Manual to the SNiP 2.01. 28-85 "Industrial Waste Treatment/Disposal FacilityDesign Manual";State Construction Standard SNiP 2.01. 29-85 "Key Requirements to the DesignDocumentation for Industrial Waste Treatment and Disposal Facilities";Methodological Guidance on the Assessment of Hazards Associated with ChemicalContamination of Soil";State Standard DSTU DK-005-96 'Waste Classification";State Standard DSTU 2195-99 (GOST 17.9. 02-99) "Environment Protection. WasteManagement. Technical Certificate of Waste. Contents, Composition, Layout, andAmendment Procedure";State Standard DSTU 3910-99 (GOST 17.9. 11-99) 'Waste Classification. TheProcedure of Waste Classification and Identification by Origin";State Standard DSTU 3911-99 (GOST 17.9. 01-99) "Environment Protection. WasteManagement. Waste Identification and Reporting. General Requirements";State Standard GOST 30333-95 "Material Safety Certificate. Key Provisions. SafetyProvisions for Production, Application, Storage, Transportation, Disposal".

t can be concluded that Ukraine has now achieved the stage where the core elements ofhe national environmental legislation are already in place, capable of ensuring thatenvironmental considerations are fully integrated into the country's economic developmentgenda.

15

REVIEW OF WORLD BANK EA POLICIES AND PROCEDURES

he World Bank has established its social and environmental safeguard policies in order torevent and mitigate potential adverse impacts associated with Bank's lending operationso people and their environment. The suite of Bank's Safeguard Policies comprises theollowing policy documents: OP 4.01: Environmental Assessment, OP 4.04: Natural-abitats, OP 4.36: Forests, OP 4.09: Pest Management, OP 4.12: InvoluntaryResettlement, OP 4.10: Indigenous Peoples, OPN 11.03: Cultural Property, OP 4.37:Safety of Dams, OP 7.50: Projects on International Waterways, and OP 7.60: Projects inDisputed Areas. The Table below provides a brief overview of these policies.

Policy Document Key Features

OP/BP/GP 4.01: * Potential environmental impacts of a project are identified at an

Environmental Assessment early stage of project processing;Operational Policy / Bank Procedure * EIA and Environmental Management Plan are required for

Good Practice) projects that are likely to have significant adverse environmentalimpacts and/or involve the resettlement of local communities;

* EIA is required to examine project alternatives (including the'without project' scenario);

* Disclosure of information and public consultation areprerequisites to the Bank appraisal of a proposed project

OP 4.04: * Prohibits Bank support for projects which would lead to the

Natural Habitats significant loss or degradation of any critical natural habitats

(Operational Policy) (exception: the absence of feasible project alternatives);* Requires to carry out a comprehensive cost/benefit analysis;* Requires to prepare the EIA and Environmental Management

Plan (Mitigation Plan)OP 4.36: * The Bank does not finance commercial harvesting operations in

Forests the areas that constitute critical forests or related critical natural

(Operational Policy) habitatsOP 4.09: * The Bank supports environmentally sound and integrated pest

Pest Management management;(Operational Policy) * The borrower is required to address pest management issues in

the context of the project's environmental assessment

OP 4.12: * The Policy is triggered in situations involving involuntary taking

Involuntary Resettlement of land and involuntary restrictions of access to legally

(Operational Policy) designated parks and protected areas;* It requires the active participation of displaced people in

resettlement planning and implementation;* It aims to improve or at least restore the incomes and living

standards of displaced persons after resettlement

OP 4.10: * The Policy aims to ensure that indigenous peoples participate in,

Indigenous Peoples and benefit from Bank-funded operations in a culturally

(Operational Policy) appropriate way; and that adverse impacts on them are avoided,or minimised and mitigated;

* The Policy applies to the proposed projects that are likely toaffect indigenous peoples;

* It requires the borrower to engage in the process of free, prior,and informed consultation with indigenous peoples and theircommunities

OPN 11.03: * The objective is to assist in the protection and conservation of

Cultural Property cultural properties encountered in the Bank-financed projects;

(Operational Policy Note, used as a * The policy seeks to ensure the preservation of cultural properties

guidance until OP 4.11 is issued by and avoid their elimination;the Bank * The Bank normally declines to finance projects that will

significantly damage non-replicable cultural property

OP/BP 4.37: * The Policy applies to large dams (15 m or more in height);

Safety of Dams * Requires the independent review of the investigation, design,

(Operational Policy/Bank Procedure) and construction of the dam and the start of operations, and

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Policy Document Key Featuresperiodic safety inspections of the dam after completion;

* Requires EIA and detailed plans for construction, operation and_____________________________ maintenance of the dam

0P/BP/GP 7.50: * The Policy applies to any river, canal, lake, or similar body ofF'rojects on International Waterways water that forms a boundary between, or any river or body of(Operational Policy/Bank Procedure/ surface water that flows through, two or more states; and to anyGood Practice) bay, gulf, strait, or channel bounded by two or more states;

* The Policy applies to hydroelectric, irrigation, flood control,navigation, drainage, water and sewerage, industrial, and similarprojects that involve the use or potential pollution of internationalwaterways;

* The Policy requires notification and consent of riparian parties,detailed maps, water resource surveys and feasibility studies forthe proposed projects affecting international waterways

OP/BP 7.60: * The Policy applies to projects sited in disputed areas;'rojects in Disputed Areas * The prior agreement of the governments concerned is a

(Dperational Policy/Bank Procedure) prerequisite to the Bank's support for the proposed project;* The Policy requires the detailed consideration of the nature of

the dispute at an early stage, to be described in all projectdocuments

he discussion below focuses on the key provisions of the above documents.

OP/BP 4.01: Environmental Assessment. The Bank requires environmental assessment(EA) of projects proposed for Bank financing to help ensure that they are environmentallyound and sustainable, and thus to improve decision_making. EA evaluates a project'sotential environmental risks and impacts in l1Or4WVof influence; examines projectliternatives; identifies ways of improving project selection, siting, planning, design, and

i plementation by preventing, minimizing, mitigating, or compensating for adversenvironmental impacts and enhancing positive impacts; and includes the process oflitigating and managing adverse environmental impacts throughout project

i nplementation.

.A takes into account the natural environment (air, water, and land); human health andafety; social aspects (involuntary resettlement, indigenous peoples, and culturalroperty); and transboundary and global environmental aspects. EA considers natural andocial aspects in an integrated way.

I also takes into account the variations in project and country conditions; the findings ofountry environmental studies; national environmental action plans; the country's overall;olicy framework, national legislation, and institutional capabilities related to thenvironment and social aspects; and obligations of the country, pertaining to projectctivities, under relevant international environmental treaties and agreements. The Bankoes not finance project activities that would contravene such country obligations, as

iientified during the EA.

. he borrower is responsible for carrying out the EA. For Category A projects, the borrowerr tains independent EA experts not affiliated with the project to carry out the EA. For

Gategory A projects that are highly risky or contentious or that involve serious andultidimensional environmental concerns, the borrower should normally also engage an

dvisory panel of independent, internationally recognized environmental specialists todvise on all aspects of the project relevant to the EA.

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epending on the project, a range of instruments can be used to satisfy the Bank's EAraquirement: environmental impact assessment (EIA), regional or sectoral EA,E nvironmental audit, hazard or risk assessment, and environmental management plan( EMP).

he Bank classifies the proposed project into one of four categories, depending on thet pe, location, sensitivity, and scale of the project and the nature and magnitude of itsr iotential environmental impacts. A proposed project is classified as Category A if it is likelyt. have significant adverse environmental impacts that are sensitive, diverse, orlinprecedented. A proposed project is classified as Category B if its potential adverseenvironmental impacts on human populations or environmentally important areas are less. dverse than those of Category A projects. A proposed project is classified as Category Ci it is likely to have minimal or no adverse environmental impacts. A proposed project islassified as Category Fl if it involves investment of Bank funds through a financial

iritermediary, in subprojects that may result in adverse environmental impacts.

Furthermore, specific EA procedures are applied to the following special project types:

) Sector Investment Loans;. ') Sector Restructurng Loans;§) Financial Intermediary Lending;. [) Emergency Recovery Projects.

hen the borrower has inadequate legal or technical capacity to carry out key EA-relatedunctions (such as review of EA, environmental monitoring, inspections, or management ofitigatory measures) for a proposed project, the project includes components to

trengthen that capacity.

or all Category A and B projects proposed for IBRD or IDA financing, during the EArocess, the borrower consults project-affected groups and local nongovemmentalrganizations (NGOs) about the project's environmental aspects and takes their views intoccount. The borrower initiates such consultations as early as possible. For a Category Aroject, the borrower provides for the initial consultation a summary of the proposedroject's objectives, description, and potential impacts; for consultation after the draft EAeport is prepared, the borrower provides a summary of the EA's conclusions.

uring project implementation, the borrower reports on (a) compliance with measuresgreed with the Bank on the basis of the findings and, results of the EA, includingmplementation of any EMP, as set out in the project documents; (b) the status of

itigatory measures; and (c) the findings of monitoring programs.

rhe Task Team (TT) ensures that environment-related covenants are included in thenonitoring system. During implementation, the TT supervises the project's environmentalaspects on the basis of the environmental provisions and the borrower's reportingarrangements agreed in the legal documents and described in other projectocumentation. The TT also ensures that supervision missions contain adequatenvironmental expertise.

he OP 4.01 document set contains three Annexes: Annex A defines key EA-relatederms, Annexes B and C discuss the content of EA reports and EMPs, respectively.

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P/BP 4.04: Natural Habitats: This policy document focuses on the natural habitat issuest rat may arise in a project proposed for Bank financing.

he World Bank promotes and supports natural habitat conservation and improved landl se by financing projects designed to integrate into national and regional development the:onservation of natural habitats and the maintenance of ecological functions. Furthermore,

I he Bank promotes the rehabilitation of degraded natural habitats. The Bank does notupport projects that, in the Bank's opinion, involve the significant conversion oregradation of critical natural habitats. In deciding whether to support a project withotential adverse impacts on a natural habitat, the Bank takes into account the borrower'sbility to implement the appropriate conservation and mitigation measures.

s part of the Environmental Assessment process (OP 4.01), the proposed project islassified into one of four Categories, depending on the scale and magnitude of itsotential environmental impacts.

atural habitat components of a project are linked as appropriate to the schedule ofmplementation for the project. The costs of conservation of any compensatory naturalabitats are included in the project's financing. Mechanisms to ensure adequate recurrent

,ost financing are incorporated into project design.

P/BP 7.50: Projects on International Waterways. A potential international water rightsssue is assessed as early as possible during project identification and described in allzroject documents starting with the Project Information Document (PID). At this stage, the3ank advises the state proposing the project on an international waterway (beneficiarytate) that, if it has not already done so, it should formally notify the other riparians of the

proposed project giving available details. The notification contains, to the extent available,sufficient technical specifications, information, and other data (Project Details) to enablehe other riparians to determine as accurately as possible whether the proposed projecthas potential for causing appreciable harm through water deprivation or pollution ortherwise. The other riparians are allowed a reasonable period, normally not exceeding six

months from the dispatch of the Project Details, to respond to the beneficiary state orBank. If the other riparians raise objections to the proposed project, the Bank inappropriate cases may appoint one or more independent experts to examine the issues inaccordance with a special Bank Procedure. The experts have no decision-making role inthe project's processing. Their technical opinion is submitted for the Bank's purposes only,and does not in any way determine the rights and obligations of the riparians.

The OP 7.50 policy applies to the following types of projects:

(a) hydroelectric, irrigation, flood control, navigation, drainage, water and sewerage,industrial, and similar projects that involve the use or potential pollution ofinternational waterways;

(b) detailed design and engineering studies of projects under para. (a) above, includingthose to be carried out by the Bank as executing agency or in any other capacity.

OPN 11.03: Management of Cultural Property in Bank-Financed Projects. The WorldBank's general policy regarding cultural properties is to assist in their preservation, and toseek to avoid their elimination. More specifically:

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The Bank normally declines to finance projects that will significantly damage non-replicable cultural property, and will assist only those projects that are sited or designedso as to prevent such damage;The Bank will assist in the protection and enhancement of cultural propertiesencountered in Bank-financed projects, rather than leaving that protection to chance.

Deviations from this policy may be justified only where expected project benefits are great,nd the loss of or damage to cultural property is judged by competent authorities to be

inavoidable, minor, or otherwise acceptable.

rhe management of cultural property of a country is the responsibility of the government.lowever, before proceeding with a project, Bank staff must (1) determine what is knownbout the cultural property aspects of the proposed project site. The government'sttention should be drawn specifically to that aspect and appropriate agencies, NGOs orlniversity departments should be consulted: (2) If there is any question of cultural propertyn the area, a brief reconnaissance survey should be undertaken in the field by a specialist.

: P/BP 4.12: Involuntary Resettlement. This policy is triggered in situations where a3ank-financed project involves the involuntary displacement of local inhabitants.

rhe planning of resettlement activities is an integral part of preparation for Bank-assistedrojects. During project identification, the task team (TT) identifies any potential involuntaryesettlement under the project.

Ns a condition of appraisal for projects involving involuntary resettlement, the borrowerubmits to the Bank a resettlement plan, a resettlement policy framework, or a processramework that conform with the requirements of OP 4.12. In the Project AppraisalDocument (PAD), the TT describes the resettlement issues, proposed resettlementnstrument and measures, and the borrower's commitment to and institutional and financialapacity for implementing the resettlement.

The implementation of the resettlement instrument is supervised throughout the projectife, and the requisite social, financial, legal, and technical experts are included inupervision missions. Supervision focuses on compliance with the legal instruments,ncluding the Project Implementation Plan and the resettlement instrument.

rhe implementation of resettlement activities is linked to the implementation of thenvestment component of the project to ensure that displacement or restriction of accessoes not occur before necessary measures for resettlement are in place. In particular,aking of land and related assets may take place only after compensation has been paidand, where applicable, resettlement sites and moving allowances have been provided tohe displaced persons.

Displaced persons may be classified in one of the following three groups:

a) those who have formal legal rights to land (including customary and traditional rightsrecognized under the laws of the country);

) those who do not have formal legal rights to land at the time the census begins buthave a claim to such land or assets-provided that such claims are recognized underthe laws of the country or become recognized through a process identified in theresettlement plan;

) those who have no recognizable legal right or claim to the land they are occupying.

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he full costs of resettlement activities necessary to achieve the objectives of the projectre included in the total costs of the project.

he Bank regularly supervises resettlement implementation to determine compliance withhe resettlement instrument. Upon completion of the project, the borrower undertakes anssessment to determine whether the objectives of the resettlement instrument have been

achieved. The assessment takes into account the baseline conditions and the results ofresettlement monitoring. If the assessment reveals that these objectives may not be-ealized, the borrower should propose follow-up measures that may serve as the basis forontinued Bank supervision, as the Bank deems appropriate.

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COMPARATIVE REVIEW OF UKRAINIAN AND WORLD BANK REQUIREMENTSON ENVIRONMENTAL ASSESSMENT

--he analysis of Ukrainian and World Bank requirements on the project's Environmentalssessment and Environmental Management Plan indicates that they are largely identical.

nvironmental Assessment:he World Bank's EA policy and procedure is generally compatible with the EIA systemnd practice established in Ukraine, both terminologically and methodologically.

ey common requirement, articulated in both systems, relates to the mandatory characterlf the environmental impact assessment as an integral part of project preparation, designand development for any project activity that involves a new construction and/or upgradelf an existing facility.

Natural Habitats:There are no significant differences in approaches towards the management and,onservation of natural habitats, adopted by the World Bank and Ukraine.

ey common provision of the World Bank policy and Ukrainian legislation relates toansuring the conservation of natural habitats as much as possible in their original shapeand form.

anagement of Cultural Heritage:rhere is close similarity in requirements and approaches adopted by the World Bank andJkraine with regard to the management of cultural heritage.

Key common requirement, set out in the Bank's policy and Ukrainian legislation, is toensure the preservation of cultural assets and historical heritage.

Involuntary Resettlement:There is no specific legislation regulating the management of involuntary resettlementissues as part of development projects in Ukraine, though these issues are addressed in anumber of state regulations.

There is a need in adopting a clearly defined legal and regulatory framework for theidentification of adequate compensation measures in projects involving involuntaryresettlement, to be compatible/consistent with the WB guidelines.

Projects on International Waterways:There are certain inconsistencies between the WB and Ukrainian systems andrequirements, relating to the planning/implementation of projects on internationalwaterways.

Water resources in Ukraine are managed according to the administrative boundaries,rather than on a river catchment basis.

Ukraine is party to key intemational conventions, relating to the international waterwaysand transboundary water bodies, and has signed bilateral agreements with many adjacentcountries to regulate the management of shared water resources.

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. he detailed analysis and harmonisation of the WB and Ukrainian practices should beonducted on case-by-case basis, i.e. with respect to each specific project, located on an

i ternational waterway.

he summary table, reflecting the comparison of environmental requirements adopted bye Government of Ukraine and the World Bank, is presented in Annex 1.

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SPECIFIC FEATURES OF INVESTMENT PROJECT IDENTIFICATION ANDSELECTION IN UKRAINE

'his stage involves the stepwise multi-criteria analysis and screening of projects, which issed to eliminate from further consideration those projects that appear to be unsuitable,ither environmentally or economically. It is imperative that a proposed project should

r flect key national and international policies and strategies. It should also fit in with ther gional and sectoral strategies, and social development programmes.

Targeted programmes of action, adopted at various levels, represent an importanti strument of state governance, being geared towards specific needs that are consideredt be most urgent at a given time period. Therefore, a proposed project should be

nalysed in the context of relevant regional programmes in order to identify potentialynergies.

I Ukraine, the programme-based approach has become a common tool for addressing%arious environmental issues. The suite of existing environmental programmes includest e State Programme for Environment Protection and Rehabilitation in the Black Sea/Azov%Sea Basin [8] and the National Programme for Environmental Rehabilitation and Drinking\ Vater Quality Improvement in the Dnipro Basin [9], and environmental action plans for ther ver basins of Nistru, Southem Bug, Siversky Donets and Danube (within Ukraine) areow at various stages of development/endorsement. Altogether, these programmes coverver 90% of Ukraine's territory.

1'he development of these programmes involved a scoring exercise that was used torioritise pollution sources in terms of severity of their impact on the environment. These

E coring results provided a basis for the identification of priority projects.

I is important to note, however, that there is no or little comparability of prioritisationr sults produced under different programmes due to the lack of a unified scoringn ethodology and suite of criteria.

F'or example, the National State of the Environment Report for the Black Sea Basin [10]mprises the list of pollution hot spots, which were identified on the basis of the WHO

F 'apid Inventory Technique [11]. These hot spots were ranked in terms of their pollutionI ads and associated risks to human health and environment, and a suite of key indicators

nd simple scoring mechanism were used for selecting and prioritising investment projectsroposed for the abatement of major hot spots producing the highest pollution loads.

< limilar approach was employed by the EU Danube-Black Sea Task Force [12], where thereliminary screening of existing pollution sources was carried out on the basis ofumerical criteria (nutrient loadings released from a hot spot) in order to come to a

r ianageable number of larger hot spots for further detailed evaluation that focused onE.conomic issues and relevance to key national and intemational policy objectives.

1 he Hot Spot Identification and Evaluation Methodology, used in the preparation of theDnipro Basin Strategic Action Programme [13], shows a substantially greater level of detailiri the set-up of key indicators and evaluation criteria. The above methodology involves thef llowing steps:

. Step 1: Identification and Preliminary Screening of Hot Spots

. Step 2: Detailed Evaluation of Hot Spots (promoted from Step 1)

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Step 3: Prioritisation of Hot SpotsStep 4: Identification of Mitigation Measures and Associated Costs.

It is expected that multi-criteria analysis and ranking techniques will be further enhanced inrder to ensure that account is taken of cumulative and synergistic impacts of pollution

c ;ources, and provide a greater unification and compatibility of these techniques at theriational and international level.

) ks can be seen from the foregoing, the first step in project identification involves ther eview of existing environmental policies and strategies and prioritisation of pollutionources on the basis of unified techniques for multi-criteria analysis. Subsequent steps in

I iroject preparation cycle are linked with the environmental assessment, which looks intote environmental, social, technical issues of a proposed project and ensures that theiritigation is incorporated in the project design.

25

ENVIRONMENTAL SCREENING

rhe environmental screening of projects is conducted in order to determine the extent andype of environmental assessment, which is appropriate for a proposed project in terms ofhe type, location, sensitivity, and scale of the project and the nature and magnitude of itsotential environmental impacts. The screening process varies widely in the EA systems ofifferent countries and international agencies, though the approaches towards screeningre aligned along two main axes:

Preliminary (initial) assessment to make a decision on the type of EA required for aproposed project;Screening on the basis of lists of project/activity types that a likely to have significanteffects on the environment.

Jkraine has adopted the second approach, i.e. the decision whether full EIA is required fora proposed project is made by the responsible authority on the basis of list ofIrojects/activities that are likely to have significant environmental impacts, included intohe State Design and Construction Standard [6]. For example, the list of projects/activitiesubject to full EIA includes the following types of projects:

Waste management facilities for the collection, treatment, storage, transportation anddisposal of all waste types, both industrial and household;Sewer systems and wastewater treatment facilities;Water abstraction plants for surface water and groundwater sources.

eing easy to use, this approach lacks sufficient flexibility in determining the scale and;cope of proposed activity, and taking the account of local specific conditions existing inhe proposed activity location.

he World Bank uses the first approach, i.e. it screens each proposed project to determinehe appropriate extent and type of EA. It classifies the proposed project into one of fourategories, depending on the type, location, scale and significance of its potentialnvironmental impacts. It should be noted however that no quantifiable criteria arerovided in the definitions of each category, therefore the category boundaries are vague.

n order to ensure that the World Bank's environmental safeguards are met on the Bank-inanced projects in Ukraine, the national EIA system should be adjusted to incorporate thecreening procedure as defined in the Bank's OP 4.01. Where the potential impacts of aroposed project are not likely to extend beyond the borders of one Oblast, the screeningxercise would require the involvement of Oblast environmental authorities. If a proposedroject is likely to affect the interests of several Oblasts, consideration should be given to

he views of environmental authorities from these Oblasts and the Ministry fornvironmental Protection of Ukraine. The screening exercise should take account of the

iational List of Projects/Activities that are Likely to Have Significant Environmentalmpacts, provided in the State Design and Construction Standard of Ukraine [6].

26

ENVIRONMENTAL ASSESSMENT OF INVESTMENT PROJECTS

he Ukrainian EIA system demonstrates a high level of compatibility with the World Bankrocedures and requirements. There are only minor divergences in terminology, level ofetail involved in analysis of certain issues, institutional requirement, and stringency of

l ompliance requirements.

he high level of compatibility of Ukrainian EIA system with the World Bank's EA policy isIlustrated by the fact that they share common underlying principles:

. Preventative principle, aiming to identify and analyse the environmental effects of aproject before the decision is made as to whether the project development should go

ahead;* Comprehensive analysis, that takes into account the natural environment, human

health and safety, and social aspects;Principle of democracy, which ensures that all stakeholders and affected parties aredirectly involved in decision-making.

The steps involved in the Ukrainian EIA process and the World Bank EA process are verysimilar: environmental screening; scoping; considering alternative approaches; forecastingand determining the significance of likely environmental impacts; identifying mitigationmeasures designed to prevent, reduce, or compensate for adverse impacts; finalizing theenvironmental assessment document; consulting with the public to assess thecompleteness and quality of environmental assessment.

There are, however, some differences in the Ukrainian environmental legislation from whatthe World Bank considers the best practice. This concerns the approach to managing theinvoluntary resettlement as part of a development project. According to the Ukrainianlegislation, the human resettlement issue is addressed in the EIA process [6]. It is requiredto develop and adopt specific legislation and regulations, providing the legal, economic,and institutional arrangements for reseKtlement.

Similarly, there are differences in terminology and mechanisms relating to the

planning/implementation of projects on international waterways. The Ukrainian legislationlacks specific guidelines and framework procedures for managing the environmentalimpacts of projects located in the transboundary river basins. This issue is addressed oncase-by-case basis, which leads to lengthy negotiations with the riparian parties.

The issue of developing and adopting the legal framework and procedures regulating theplanning and implementation of projects located on the transboundary watercourses willneed to be addressed in the nearest future.

There is a space for additional inconsistencies that may arise from existing approach to

pollution control in Ukraine, which is based on the environmental quality standardsinherited from the old Soviet system. These standards are generally difficult to meet andcostly to enforce.

Ukraine has recently started to move towards the integrated permiKting system, where anintegrated permit is issued per industrial installation, covering all important environmentalimpacts (on releases to water, air, and soil), and permiKting assessment procedure is

based on use of the Best Available Techniques and compliance with environmental qualitystandards. A move towards the IPPC approach would involve substantial review and

27

eform of the national environmental legislation, training and strengthening the institutional,apacity of permitting and enforcement authorities. Annex 2 provides more detail on thisssue.

ocumenting and reporting the EA results is an essential step in the EA process. Thenain elements of the EA report include:

Legal context (overview of legislative and regulatory documents relevant to theproposed project);Description of the project and its alternatives (project objectives, alternative options forachieving them, key project characteristics, technology employed, waste managementissues);Characterization of existing environment and site setting (defining the area that is likelyto be affected by the proposed activity; describing the existing environmental conditionsand historical/cultural assets; and identifying the types of data and studies required forthe assessment of potential environmental impacts of proposed project);Characterisation of potential environmental impacts of proposed project (identificationand description of all major impacts, associated with the project activity, including theirphysical and social effects);Justification of selected project alternative (systematic comparison of projectalternatives on the basis of specified criteria).

dditionally, the World Bank's OP 4.01 stipulates the need to prepare and include theEnvironmental Management Plan (EMP) into the EA report. An EMP outlines mitigation,monitoring and institutional measures for avoiding or minimising adverse environmentaland/or social impacts during project implementation and operation.

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. ENVIRONMENTAL MANAGEMENT PLAN

he Bank's OP 4.01 [4] requires an EMP that consists of the set of mitigation, monitoring,nd institutional measures to be taken during implementation and operation to eliminatedverse environmental and social impacts, offset them, or reduce them to acceptable

I vels.

he EMP identifies mitigation, monitoring and institutional measures to be taken by theorrower for avoiding or minimizing adverse environmental impacts during projectplementation and operation, and specifies actions needed to implement such measures.ore specifically, the EMP covers the following issues: mitigation, monitoring, capacityevelopment and training, implementation schedule and cost estimates, and integration ofMP into the project cycle.

n 1997, Ukraine adopted the State Standard DSTU-ISO 14001-1997 "EnvironmentalManagement Systems. Composition and Description of System Elements. Application3uide" [15] and the State Standard DSTU-ISO 14004-1997 "Environmental Managementystems. General Guidelines on Principles, Systems and Supporting Techniques" [16],hich constitute the modified versions of ISO 14001 and ISO 14004 standards. Theseocuments set out the general principles and requirements for an environmentalnanagement system, and apply to those environmental aspects which the organizationas control and over which it can be expected to have an influence.

he EMS implementation process requires an organization to establish and maintain therocedures to identify and assess all environmental aspects of its activity, and evaluateompliance with all applicable legal requirements. The organization should establish and

maintain the programme for achieving its environmental objectives and targets (includinghe designation of responsibility at all levels of the organization), and resources required tochieve them. The organization should provide adequate resources for the implementationnd operation of its environmental management system, define roles and responsibilitiesnd identify training needs of its personnel. Also, the organization is required to establish

and maintain the environmental monitoring programme, covering key processes andactivities that may have significant impact on the environment.

As can be seen from the above, Ukraine has a comprehensive legal framework, systemand process for environmental management, that includes all internationally practicedelements. There is a need in synchronizing this system with the World Bank EA and othersafeguard practices, and fine-tuning the guidance on some innovative approachesadopted by the Bank. Consideration should be given to the provision of external monitoringprocedures, building the institutional capacity of relevant regulatory authorities, anddevelopment of procedures for identification of synergies with other mitigation plansrequired for the project (e.g. for involuntary resettlement, indigenous people, etc.).

Key EMP elements include:

* Brief description of potential environmental impacts that are likely to be significant;* Description of each planned mitigation measure with reference to the impact to which it

relates;* Description of monitoring and reporting arrangements;* Description of institutional arrangements, with the clear definition of responsibilities for

mitigation and monitoring; and identification of related capacity building needs;

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Description of public consultation arrangements, including the list of planned activities;feedback mechanisms; summaries of comments and responses received from keystakeholder groups; other supporting documentation reflecting the status ofdiscussion/agreement with governmental and non-governmental organisations;Implementation schedules and cost estimates for the proposed mitigation measures.

l tandard mitigation measures for civil works, associated with the rehabilitation of waterupply and sanitation systems, and improvement of solid waste management services,

include:

Prevention of accidents during construction: The contractors shall take allnecessary precautions for the types of civil works involved, especially in residentialareas and those with heavy traffic;Protection of vegetation cover: As a general principle, all vegetation destroyed andtrees that need to be cut will be properly restored/replanted;Dust: Dust generation, which is inevitable during any construction activity will beminimized through proper scheduling of transportation and other dust-generatingactivities, and providing protective cover for bulk materials, etc.;Traffic: It is required to use traffic routing and scheduling to avoid residential areas andbottlenecks to the maximum possible extent;Storage of excavated soil and construction materials: excavated soil and buildingmaterials will not be stored on agricultural land and near water bodies. Temporarystorage sites for excavated soil should be located as close as possible to theconstruction site;Impact on flora and fauna: The contractors shall take all necessary measures toprevent and avoid damage to flora and fauna, and ensure effective control of erosionduring construction;Noise: Noise effects should be minimized during construction by using proper modernequipment and mobile plant, and by limiting the operation of noisy equipment and plantto reasonable working hours (e.g.. from 8.00 a.m. to 5.00 p.m.).

rhe implementation costs associated with the planned mitigation measures are includednto the project budget. The implementation responsibility rests with the contractor, to be;upervised by the regional (Oblast) offices of the Ministry for Environmental Protection ofJkraine, local authorities, contracting agency, sanitary epidemiological service bodies,nd public.

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MONITORING PLAN

l .1. General Requirements to Environmental Monitoring

"his section describes the Monitoring Plan as a document which sets out the details of theost-decision monitoring of project throughout the project cycle and beyond.nvironmental monitoring provides information about key environmental aspects of theroject, particularly the environmental impacts of the project and the effectiveness ofitigation measures. Such information enables the borrower and the Bank to evaluate the

uccess of mitigation as part of project supervision, and allows corrective action to beaken when needed.

Xccording to the World Bank's Operational Policy on Environmental Assessment, theonitoring plan is an integral element of a project's Environmental Management Plan

,hich, in its tum, is to be developed in line with the Environmental Framework Policy)repared for the project.

rhe Monitoring Plan, which forms part of the project's EMP, enables the monitoring of: a)nvironmental impacts, associated with the project, b) implementation of mitigation

neasures designed to reduce these impacts; and c) results of implemented mitigationneasures.

vonitoring is an important project management tool for providing adequate and relevantnformation to decision-makers on various aspects of project implementation, including,ompliance with national environmental legislation and Bank's safeguard policies,)rogress in achieving environmental performance targets, and ability to meet key projectJeadlines. The monitoring programme should clearly indicate the linkages betweenmpacts identified in the EA report and indicators to be measured. The baselinenformation, collected and analysed as part of project's EA and EIA prior to the start of-onstruction activity, should form a basis for future monitoring assessment.

rhe monitoring plan should consist of the following elements:

* Key monitoring targets, including: a) quantifiable environmental improvements, orenvironmental quality objectives, that are expected to be achieved as a result ofproject implementation; and b) effects relating to the potentially significant impactsthat may result in the deterioration of environment and/or non-compliance withexisting environmental quality standards;

* Monitoring timeframe, showing the linkages between specific monitoring activitiesand project implementation phases;

* Identify key environmental performance indicators, both short-term and long-term,for measuring the progress towards the specified environmental quality objectives;

* Quantify key environmental improvement indicators;* Define the measurement/monitoring frequency;* Identify institutional responsibilities with regard to monitoring;* Identify key institutional issues and measures required to strengthen the capacity of

relevant institutions and agencies.

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3.2. Development of Monitoring Plan

The ultimate objective of proposed investment projects is to achieve a generalmprovement in public health and environmental conditions through low-cost andsustainable water supply and sanitation delivery services.

<ey performance indicators for this type of projects can be grouped into two categories:eneric indicators applied to all projects, governed by the joint Environmental Framework

Policy; and specific indicators, reflecting specific features of each project, includingocation, water supply source, type of service etc.

Generic overall performance indicators include the number of population connected tocontinuous and improved water supply/sanitation services, with stability (improvement) ofgeneral environmental and sanitary situation in the region being a prerequisite.

Other overall performance indicators relate to the environmental effects of proposeddevelopment, considered most likely to arise after the completion of implementation phaseof an investment project.

Short-term (intermediate) performance indicators for monitoring include impact indicatorsthat relate to the short-term environmental impacts associated with the construction phase.These environmental impacts may include visual landscape impacts ofconstruction/rehabilitation activity, air and soil contamination in the project area, wastegeneration and disposal, noise and vibration effects. Other potential environmentalimpacts of this type include changes in local hydrogeology in the locations of pump houseconstruction and pipe laying/relaying activity, and other physical effects.

The list of potential environmental disturbances (and short-term environmental impacts),which need to be addressed in the environmental management plan and monitoringprogramme, along with admissible levels of these impacts (which can be used asperformance targets for key impact indicators), is reflected in the Statement ofEnvironmental Consequences of a Proposed Project. According to the Ukrainianlegislation, this Statement forms a part of the Environmental Impact Assessment report,which should be prepared for a proposed project and submitted, along with the projectdesign documentation, for the State Environmental Review procedure (the Law of Ukraine"On the State Environmental Review" No. 45/95-VR of 09.02.1995, and the "Approval andState Environmental Review Procedure for Investmnent and Construction Projects",approved by the Resolution of the Cabinet of Ministers of Ukraine No. 483 of 11.03.2002.

The potential environmental impacts may vary from project to project, therefore specificindicators will be required for each project type to ensure that these impacts areadequately addressed in a project's Environmental Management Plan.

9.2.1. Water Supply Rehabilitation Projects

The ultimate objective of investment projects of this type is to develop a sustainablesystem for the provision of good quality drinking water to the service population.

In order to be able to measure the success in achieving this objective, the followingperformance indicators can be recommended:

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Percentage of population connected to centralized water supply service.Number of noncompliant samples (i.e. samples that do not meet drinking water qualitystandards due to elevated levels of chemical, bacteriological, or radionuclidecontamination), collected from the distribution system.

in Ukraine, drinking water quality regulation is based upon the following guidelineJocuments:

State Standard DSTU 2874-82: "Drinking Water. Hygienic Requirements and WaterQuality Control": this State Standard specifies the list of 28 water quality parametersthat have to be monitored.State Sanitary Norms and Rules SanPiN 383-96 "Drinking Water. Hygienic QualityRequirements to the Centrally Supplied Drinking Water": this document specifies acomprehensive list of 55 parameters, which have to be introduced into the mandatorymonitoring programme in a phased manner from 2005 onwards.

* State Regulation DR-97 "Permissible Levels of Caesium-137 and Strontium-90Radionuclides in Food Products and Drinking Water".

* Radiation Safety Norms NRBU-97: this regulatory documents sets out the admissiblelevels of human exposure to radiation, and provides methodological guidance on theregulation of radioactive contaminant levels in drinking water.

Intermediate performance indicators can be used to measure the progress towards thespecified project objective. These can be based on actual water quality determinationsmade in the process of implementing improvements in existing water supply system.

Other useful performance indicators relate to proactive leakage control in the whole watersupply system. Water leaks may significantly affect the hydrological regime in the projectarea, resulting in the elevation of groundwater levels, groundwater contamination,landslipping and subsidence.

These processes need to be carefully monitored, with a special focus on those areaswhere-they are considered to have been triggered by leaks from water distribution mains.It is essential to continue a periodic monitoring programme for groundwater levels in theproject area after the completion of construction activity, as part of post-project monitoring.

Leaking pipelines may also be a factor that contributes to the contamination of drinkingwater supplies, giving rise to water-borne disease outbreaks, as was the case in the townof Sukhodolsk (Luhansk Oblast), where the hepatitis A outbreak was recorded in 2003.

Another group of intermediate performance indicators for monitoring and evaluation mayinclude impact indicators that relate to the control of construction/reconstruction activityeffects on the environment, including potential pollution releases, noise and vibration,waste generation and management.

The proposed monitoring parameters for water supply rehabilitation projects are providedin Table 9.1.

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Table 9.1. Monitoring Parameters for Water Supply Rehabilitation Projects

Project I I I ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Institutional| Project Monitoring Parameter Monitonng Monitoring Technique Monitoring Frequency Responsibility forPhase _______ _j Location j[I Mntrn

Target Performance Indicators

Percentage of population Contractor/SupervisorConstruction Human Monitoring report by a municipal utility's , SanitarySupervision connecte to upgrade water settlement laboratory Monthly Epidemiological

supply service Service

Instrumented measurements in accordance In accordance with the Operationwith the Operation Rules for Centralised Rules for Centralised Water Supply

Percentage of water losses due Within a water Water Supply and Sewerage Systems and Sewerage Systems (approved

Operation to leaks in the distribution distribution (approved by the State Municipal Utility by the State Municipal Utility Operating Agencysystem system Management Committee of Ukraine Order Management Committee of

No. 30 of 05.07.95); visual inspection, public Ukraine Order No. 30 of 05.07.95)complaints and Operational Schedule

Intermediate Performance Indicators

Drinking water qualityparameters, set out in the State Within a water Instrumented measurements (physical, Contractor/Supervisor

Construction SaiaySadadDaPN supply system, in chemical, bacteriological, radiological ., SanitaryConsupervion / a3n8t3-9gY6 "Da.ndkirngDWSaatner.N accordane sste; nparameters) in accordance with the DSanPiN Daily or weekly during construction Sanical

Hygienic Requirements to the the Water Quality 39 ServiceCentrally Supplied Drinking Control Plan 383-96

WatereAir emissions (dust, nitrogendioxide, carbon oxide, carbon Instrumented measurements in accordance Contractor, Sanitary

dioxide, iron oxide, manganese, with the Guideline Document RD 52.04.186-89 I dance with the State Epidemiological

Construction nickel oxide, chromium (6+), Construction site "Air Pollution Control Manual" and the SanitaccrydRules with the97 StrAte Service, localConstruction fluorides, xylene, phenol, glycol, and surroundings Technique for Determination of Emission Sanitary Rules (DSP 201-97) for Air environmental

butyl aceluoe, acetat e, ethyi- Loads from Mobile Sources (the R Ministry of Protection in the Populated Areas authorities,cellulose, acetone, Transport, 1993) ~~~~~~~~~~~~Supervisor

cyclohexanone, solvent, whitespirit

Contractor, SanitaryInstrumented measurements in accordance In accordance with the Regulation Epidemiological

Constructon Soil contaminabon by fuel/oils Construction site with the Regulation on Land Monitoring on Land Monitoring (approved by Service, localand paints (approved by the Cabinet of Ministers of the Cabinet of Ministers of Ukraine environmental

Ukraine Resolution No.661 of 20.06.1993) Resolution No.661 of 20.06.1993) authorities,Supervisor

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Project Monitoring ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~InstitutionalPhasec Monitoring Parameter Monitoiong Monitoring Technique Monitoring Frequency Responsibility for

Phase Location ~~~~~~~~~~~~~~~~~~~~~~~~~~MonitoringAcoustic measurements in accordance with the In accordance with the State Contractor, Sanitary

Contrutin steState Standard GOST 20444-85 "Noise. Traffic Sanitary Rules for Urban Planning EpidemiologicalConstruction Noise and vibration andstrructiongsit Flows in Populated Areas. Technique for and Development (approved by the Service,

and surrundings Determination of Noise Levels"; Ministry of Health of Ukraine Order Environmental_____________________ ____________public/personnel complaints No. 173 of 19.06.96) inspectorate

Construction Waste generation and Construction site Visual inspection, waste inventory, evidence Continuous daily control Constructionmanagement and surroundings from landfill operator ________________contractor, supervisor

Construction IWater leaks from the distribution disthinbuwte Water meters to meter production/distribution Contractor, supervisor,Supervision system systemuio input and customer metering Wekycustomers

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.2.2. Wastewater System Rehabilitation Projects

The major objective of projects included in this group is to reduce pollution load entering areceiving water body with effluent discharges. Other objectives include the reduction in theevels of groundwater and soil contamination through improved control of leaks from sewerines.

These indicators constitute the target, or long-term environmental performance indicatorsor this type of projects. Other indicators in this group relate to the improvement in quality

Df final effluent discharged into a receiving water body after treatment, and percentagereduction in leakage from sewers.

rhe short-term, or intermediate, performance indicators are to be identified as part ofanvironmental assessment (and EIA) to reflect and mitigate the most significantanvironmental impacts in order to ensure compliance with existing environmental andhealth legislation of Ukraine.

ore specifically, this group of indicators should reflect all aspects of waste management,ncluding the efficiency of sludge treatment process at a wastewater treatment plant.

Similar to the water supply rehabilitation projects, the suite of indicators for wastewatertreatment improvements should include impact indicators that relate to the control ofconstruction/reconstruction activity effects on the environment, including potential pollutionreleases, noise and vibration, waste generation and management.

The proposed monitoring parameters for wastewater treatment rehabilitation projects areprovided in Table 9.2.

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Table 9.2. Monitoring Parameters for Wastewater System Rehabilitation Projects

Project ~ ~ ~ ~ ~ ~ IMonitoxing 1InstitutionalPhase Monitoring Parameter Location Monitoring Technique | Monitoring Frequency I Responsibility for

ase § X Locabon X l l ~~~~~~~~~~~~~~~~~~~~~~Monitoring

Target Performance IndicatorsInstrumented measurements (physical,chemical, bacteriological, radiological Contractor, local

Discharge outfall parameters) in accordance with the Unified environmentalConstruction / Pollution load carried with (pror to the Inter-Ministerial Regulation on the Organisation Daily authorities, local

Supervision effluent discharges (pnorge and Implementation of State Water Monitoring water managementdischarge) (approved by the Ministry of Environment and authorities,

Natural Resources of Ukraine Order No. 485 of supervisor24.12.2001)

Instrumented measurements in accordance

Percentage of sewage flow with the Operation Rules for Centralised Contractor, SanitaryConstruction lossdetolasi teswrWithin a sewer Water Supply and Sewerage Systems Daily during construction EpidemiologicalSupervision losses due to leaks in the sewer system (approved by the State Municipal Utility Service

system Management Committee of Ukraine Order

No. 30 of 05.07.95)Instrumented measurements (physical,chemical, bacteriological, radiological Contractor, local

Groundwater contamination by Control boreholes parameters) in accordance with the Unified environmentalConstructon oil products, sewage grease, in the vicinity of Inter-Ministerial Regulation on the Organisabon Daily during construction and authorities, local

Supervision bacterdological contamination sewer collectors and Implementation of State Water Monitoring operation water management(approved by the Ministry of Environment and authorities,Natural Resources of Ukraine Order No. 485 of supervisor

24.12.2001) .. .Contractor, Sanitary

Soil contamination by oil Cotrol pots In Instrumented measurements in accordance EpidemiologicalConstruction / products and sewage grease in the vicinity of with the Regulation on Land Monitoring Monthly during construction Service, local

Supervision th oain fswrcletr ee olcos (approved by the Cabinet of Ministers of environmentalthe locations of sewer collectors sewer collectors Ukraine Resolubon No. 661 of 20.06.1993) authorities,

Supervisor

Intermediate Performance Indicators

Air emissions (dust, nitrogen Instrumented measurements in accordance Contractor, Sanitary

dioxide, carbon oxide, carbon with the Guideline Document RD 52.04.186-89 In accordance with the State Epidemiological

Constructon dioxide, iron oxide, manganese, Construction site "Air Pollution Control Manual" and the Sanitary Rules (DSP 201-97) for Air Service, localnickel oxide, chromium (6+), and surroundings Technique for Determination of Emission Protection in the Populated Areas environmental

fluorides, xylene, phenol, glycol, Loads from Mobile Sources (the RF Ministry of P authorities,

___________ butyl acetate, ethyl acetate, ethyl- _ _Transport, 1993) Supervisor

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o0'v.ilf rt'e7t:f,' w: -tl hP lny

Project Monitoririg InstitutionalPhase Monitoring Parameter Location Monitoring Technique Monitoring Frequency Responsibility for

_________________________ ____________________________ ~~ ~~Monitoringcellulose, acetone,

cydohexanone, solvent, whitespirt

Acoustic measurements in accordance with the In accordance with the State Contractor, SanitaryCos o se State Standard GOST 20444-85 "Noise. Traffic Sanitary Rules for Urban Planning Epidemiological

Construction Noise and vibration Constructon site Flows in Populated Areas. Technique for and Development (approved by the Service,Determination of Noise Levels"; Ministry of Health of Ukraine Order Environmental

public/personnel complaints No. 173 of 19.06.96) InspectorateContractor, Sanitary

Instrumented measurements in accordance In accordance with the Regulation EpidemiologicalConstruction Soil contamination by fuel/oils Construction site with the Regulation on Land Monitoring on Land Monitoring (approved by Service, localand paints (approved by the Cabinet of Ministers of the Cabinet of Ministers of Ukraine environmental

Ukraine Resolution No. 661 of 20.06.1993) Resolution No.661 of 20.06.1993) authorities,Supervisor

Construcbon Waste generation and Construction site Visual inspection, waste inventory, evidence CnuosdiyctrlConstructionConstruction W management and surroundings from landfill operator Continuous daily control contractor, suervisorConstruction / Surplus activated sludge Construction site Visual inspecton, waste inventory, evidence ConstructionSupervision generation and management and surroundings from landfill operator Y contractor, supervisor

Contractor, SanitaryEpidemiological

Construcion waste generated in wastewater WwTP site Visual inspection, waste inventory, evidence Continuous daily control Service, localSupervision traretpoesfrom landfill operator environmentaltreatment process . atoiisauthorities,

Supervisor

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.2.3. Solid Waste Management Projects

Ior this type of projects, the major objective is to achieve a general improvement in theublic health and environmental conditions through the provision of sustainable andnvironmentally sound waste management services. The sustainable element to this goalas many dimensions, including an integrated approach where several wastenanagement options are used together to maximize waste recovery (including recyclingind energy-from-waste incineration) and minimize void and space requirement for wastendfilling.

Nith regard to waste landfilling, which is likely to remain a dominating option for wastenanagement in Ukraine in the foreseeable future, the improved standard of design andperation is required to ensure that the environmental impacts of landfilling are effectivelyinimized or mitigated, including improved control of leachate and landfill gas, and landfill

estoration after the completion of filling phase.

nvironmental performance indicators for this type of projects are closely linked to keygnvironmental impacts, identified in the EIA. The list of proposed monitoring parameters isrovided in Table 9.3.

here instrumental, or laboratory, measurements are involved in the monitoringprogramme, it is imperative that they are undertaken by an accredited laboratory with theuse of standard methods.

Aso, proper consideration should be given to data management issues and reportingrocedures to ensure that information is provided in the correct form and at the right time.

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-1\ ' !1, ,~~~~~~~~~~~~~~~~~~~~r-, * s'vowsrh f)Q/j;,

Table 9.3. Monitoring Parameters for Solid Waste Management Projects

Project Phase Monitoring Parameter I Monitoring Location Monitoring Technique Monioring Fequency Institutional Responsibility

Target Performance Indicators

Construction and Within the area of humanContractor, Sanitary EpidemiologicalSupervision Number of illegal dumps settlement Regular inspection Monthly Service, local environmental

authorities, supervisor

Construction and Sanitary state of access Access road and Contractor, Sanitary Epidemiological

Supervision road(s) to landfill site(s) surrounding area Regular inspecton Weekly Service, local environmental______________ ______________________ ________________________ ~~~~~~authorities, supervisor

Regular inspection ~~~~~~Contractor, Sanitary EpidemiologicalConstruction and Sanitary state of collection Container sites and Regular inspecton, Daily during construction and Service, local environmental

Supervision points (container sites) surroundings instrumented measurements operation authorities, housing maintenancewhere necessary ~~~~~~~~~~~~units, public

Constructon and Daily durng constructon and Contractor, Sanitary Epidemiological

Supervision Level of collection service Container sites Regular inspection operabon Service, local environmentall_ supervision_ stabons_Transfer_station_sitesRegularinspectionoperabon authorities, public

Construction and Staterofnm astentalerfansfer LandfillDsitesaRegulariinspectionWeely during construction and Contractor, Sanitary EpidemiologicalConstruction and Trst e owsteransf Tansfer staton sites Regular inspection operation puircce, Sanvironmentalsupervisbon stationdfillsitessurroundingsoperb authorities,

ConstruGfion and Environmental perFommance Weekly dudng construction and Contractor, Sanitary EpidemiologicalConsupervion and sanfary landfilltoperar Landflty sites aRegular inspection eWeekly duringaon Service, local environmentalSupervision ofsanitanrylabond cll ourrouerator operabon authorities

Constnjcfion nd Progressie restorafio of Landfillsftes and Mothl constructionn andoContractor,ct SanitaryarEpidemioologicaIsupervision landfill sites surroundinigs Monthlynspcduopring n Service, local environmental

Construction and rogressive restoation of Landfil sites and Regulr inspection opeationaauthoritie

Environmental performance Contractor, Sanitary EpidemiologicalConstruction and of waste Facility sites and Regular inspecfon Weekldy during construction and Service, local environmentalSupervision incineration/recycling surroundings operation authorities

facilities _ ..

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l0. INSTITUTIONAL FRAMEWORK FOR ENVIRONMENTAL MANAGEMENT ANDALLOCATION OF RELEVANT RESPONSIBILITIES

At the national level, the institutional responsibilities for managing the environmentprotection and urban infrastructure development projects are shared among threegovernmental bodies, operating in accordance with their respective mandates andcompetences. These bodies include:

* Ministry of Finance of Ukraine (President of Ukraine Decree "On the Statute of theMinistry of Finance of Ukraine" No. 1081/99 of 26 August 1999);

• Ministry for Environmental Protection of Ukraine (President of Ukraine Decree "On theStatute of the Ministry for Environmental Protection of Ukraine" No. 317/2004 of06.03.2004);

* State Housing and Municipal Service Committee of Ukraine (President of UkraineDecree "On the Statute of the State Housing and Municipal Service Committee ofUkraine" No. 280/2004 of 05.03.2004).

This section describes key tasks and responsibilities of these governmental bodies.

The Ministry for Environmental Protection of Ukraine is a central executive authority withthe mandate to protect the natural environment; ensure the environmental safety; managethe nature reserves and protected areas; and coordinate the hydrometeorological serviceactivities.

Key tasks of the Ministry for Environmental Protection of Ukraine are to:

* Facilitate the implementation of the state policy in the field of environment protection,sustainable use, reproduction, and protection of natural resources (land, surfacewaters, atmospheric air, forests, fauna, flora, and biological stocks sustained in theterritorial waters, continental shelf, and exclusive (marine) economic zone of Ukraine);monitor the state of environment, management of waste, hazardous chemicalsubstances, pesticides, and agrochemicals; carry out the environmental and radiationsafety monitoring (within the scope of its competence in case of the latter); manage thenature reserves and protected areas; and coordinate the hydrometeorological serviceactivities;

* Provide overall management and regulation in the field of environment protection,sustainable use of natural resources (except for mineral resources); ensure theenvironmental and radiation safety (within the scope of its competence in case of thelatter); organise, protect and maintain nature reserve areas and national ecologicalnetwork;

* Control, on behalf of the state, compliance with the provisions of the national legislationrelating to environment protection, sustainable use of natural resources (except formineral resources), waste management, environmental and radiation safety (within thescope of its competence in case of the latter).

To fulfil these tasks, the Ministry for Environmental Protection:

1. Prepares proposals on the development and implementation of the state nationalprogrammes of action in the field of environment protection, sustainable managementand restoration of natural resources, provision of environmental and radiation safety

41

(within the scope of its competence in case of the latter), and operation ofhydrometeorological service;

2. Takes part in the preparation of the national socio-economic development strategy;3. Organises and executes the State Environmental Review procedure in accordance with

the existing legislation;4. Organises, within the scope of its competence, the monitoring of natural environment;

facilitates the development and operation of the environmental informationmanagement systems;

; Manages the state inventory activities for plant and animal life; takes part in thepreparation and maintenance of the state water inventory;

* Contributes to the development and enhancement of state accounting and statisticreporting system within the scope of its competence;

7. Coordinates the land acquisition procedure for development projects, including thoseprojects that are likely to have significant environmental impacts;

3. Ensures the conservation of biological and landscape diversity; manages and facilitatesthe development of nature reserves, protected areas, and national ecological network;maintains the Red Data Book and Green Data Book of Ukraine;

3 Facilitates and promotes the international cooperation in the field of environmentprotection, sustainable use of natural resources, environmental and radiation (withinthe scope of their competence) safety; takes part in the preparation andimplementation of the international agreements; represents and protects the nationalinterests of Ukraine in the relevant intemational organisations; coordinates activities ofother executive authorities in order to meet international commitments of Ukraine in thefield of environment protection;

0.Coordinates activities relating to the mobilisation of international technical assistancefor various projects in the field of environment protection, conservation and restorationof natural resources, improvement of environmental and radiation (within the scope oftheir competence) safety; development of national nature reserve and ecologicalnetwork capacity; and hydrometeorological service operation;

1 . Undertakes a variety of publishing activities within its competence.

The Ministry of Finance of Ukraine is responsible for the development and implementationf a coherent national financial, budgetary and tax policy, tailored to facilitate the

achievement of specified socio-economic development objectives; and coordination ofrelevant activities of other central government agencies.

Key tasks of the Ministry of Finance of Ukraine are to:

Facilitate the development and implementation of a common national financial,budgetary and tax policy;

a Review, in cooperation with other executive bodies, country's currenteconomic/financial situation and trends;

a Develop the country's external and internal borrowing strategy, and debt servicing andrepayment plan;

. Consolidate financial resources required to address country's socio-economicdevelopment priorities;Ensure the efficient and appropriate use of budget funds; and exercise the statefinancial control functions within the scope of its competence;

* Enhance and strengthen the financial and budgetary planning procedures; fund releaseprocedures; and budgetary control procedures;

. Inform the public on the country's economic and fiscal priorities.

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o fulfil these tasks, the Ministry of Finance of Ukraine:

1 Takes part in the elaboration of country's socio-economic development indicators andobjectives, both short-term and long-term;

* Takes part in the planning and implementation of measures relating to theimprovement of financial performance and restructuring of country's economy;

3 Takes part in the preparation of state national programmes; releases funds earmarkedfor these programmes in accordance with the approved procedure;

* Takes part in the development of measures relating to the formulation andimplementation of country's proactive investment policy; releases funds earmarked fornational investment projects and economic development programmes;

;. Takes part in the formulation of country's monetary and credit policy;*. Cooperates, within the scope of its competence, with the international financial

institutions and, on the Cabinet of Ministers authorization, negotiates with theseorganizations the terms and conditions of loan agreements endorsed by the VerkhovnaRada of Ukraine;

7 Prepares proposals aiming to enhance currency, financial, credit, tax and customsrelations with other countries; takes part in developing measures on increasing thecurrency capacity of Ukraine and ensuring the prudent use of country's foreigncurrency resources; reviews the financial terms and implications of proposedinternational agreements and, upon the Cabinet of Ministers authorization, negotiatesbilateral agreements with other countries relating to the tax regime;

3. Drafts, on behalf of the Cabinet of Ministers of Ukraine, the programmes of sovereign-guaranteed borrowing operations; takes part in organizational activities relating to theattraction of foreign loan funds to Ukraine in accordance with existing legislation;

3 Exercises, within its competence, control over appropriate disbursement of budgetfunds; takes part in the execution of control functions designed to protect the statecorporate governance interests in accordance with existing legislation;

O.Takes action, according to existing procedure, to limit or withdraw budget funding forindustries or organizations, found to be engaged in misappropriate use of these funds,or failed to duly report on the use of such funds over a previous reporting period; andwithhold the amount of inappropriately used funds from the accounts of theseindustries or organizations.

rhe State Housing and Municipal Service Committee of Ukraine is a central executive)ody whose activity is controlled and coordinated by the Cabinet of Ministers of Ukraine.Key tasks of the State Housing and Municipal Service Committee are to:

Take part in the formulation and implementation of the state housing policy andmunicipal service infrastructure development policy;Regulate the operation of centralized water supply/sanitation and heating services;Manage the operations in housing, water supply and sanitation sectors; and providethe intersectoral coordination on issues relating to the provision and operation ofhousing and municipal services.

To fulfil these tasks, the State Housing and Municipal Service Committee:

. Prepares proposals with regard to the formulation and implementation of the statehousing policy and municipal service infrastructure development policy;

2. Takes part in drafting and updating the State Socio-Economic DevelopmentProgramme and the Programme of Action of the Cabinet of Ministers of Ukraine;

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x Organizes, within the scope of its competence, the development and implementation ofstate and regional programmes in the field of housing and municipal utilitymanagement;

i. Facilitates, in accordance with existing legislation, the progress of municipal sectorreform;

. Regulates the operation of centralized water supply, sanitation and heating services;* Endorses, in accordance with existing procedure, the municipal infrastructure

development/rehabilitation programmes, financed from the state capital investmentbudget;

. Approves, in accordance with existing procedure, various service regulationmethodologies, including normative consumption and loss rates for resources involvedin the operation of municipal services, and normative operation/maintenance cost ratesfor municipal utilities;

, Defines, within the scope of its competence, the tariff setting procedure for municipalservices;

! Takes part in the formulation and implementation of decentralization measures in themunicipal sector; promotes the development of competitive market environment in thesector;

l 0. Provides the methodological support and assistance on waste management andcleanup strategies;

11. Procures the design and development of energy-saving technologies/equipment; andwater/heat metering equipment;

12. Facilitates and promotes, within the scope of its competence, international cooperation;takes part in the development, negotiation and signing of sectoral internationalagreements;

13.Takes action, in accordance with existing legislation, to mobilize technical and financialassistance for improving the sustainability of municipal services;

14. Undertakes internal financial control of public utilities accountable to the Committee;15. Undertakes a variety of publishing activities within its competence.

The details of review and endorsement procedure for the Environmental Assessmentreport are discussed below.

In Ukraine, the EIA development and review process, and arrangements for publicconsultation and information disclosure are governed by the following laws andregulations:

* The Law of Ukraine "On the Environmental Review" (No. 45-95-VR of 09.02.1995);. The Resolution by the Cabinet of Ministers of Ukraine "On the Submission Procedure

for the State Environmental Review" (No. 870 of 31.10.1995);* The Order by the Ministry for Environmental Protection of Ukraine "On the Approval of

Regulation on Involvement of the Public in Decision-Making on Environmental Issues"(No. 168 of 18.12.2003);

* The Order by the Ministry for Environmental Protection of Ukraine "On the Approval ofRegulation on Disclosure of Environmental Information" (No. 169 of 18.12.2003);

* State Construction Standard DBN A.2.2-1-2003 "Contents and Composition ofEnvironmental Impact Assessment (EIA) Documentation for Development Projects.Key Design Provisions".

The project proponent (Borrower) designates a contractor to perform the environmentalassessment on the basis of tender procedure. According to the Ukrainian legislation, theenvironmental assessment study in the territory of Ukraine can only be conducted by a

44

pecialized organisation that holds a license for the provision of environmentalassessment services.

--he results and findings of environmental assessment are discussed and agreed with allI takeholder groups (regional and local offices of the Ministry for Environmental Protectionf Ukraine, state Oblast administrations and local self-governance bodies, public groupsind non-governmental organisations) in accordance with the legally defined procedure."he involvement and endorsement of the Ministry for Environmental Protection is required

r major interregional projects.

The environmental monitoring is carried out by the specially authorized governmentalorganizations in accordance with the Resolution of the Cabinet of Ministers of Ukraine'The Regulation on the State Environmental Monitoring System" (No. 391 of 30 March

998).

he environmental control functions are exercised by the State Environmentalnspectorate on the basis of the Resolution of the Cabinet of Ministers of Ukraine No.520 of 17 November 2001. The provisions for the public environmental control are setut in the Order by the Ministry of Environment and Natural Resources of Ukraine No. 88f 27 February 2002.

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1. PUBLIC CONSULTATIONS AND INFORMATION DISCLOSURE

'ublic consultations serve as a tool for coordination of interests of various public groups inhe framework of environmental assessment procedure.

'ublic participation can be described as a continuous process of interaction between theitizens and Institution, responsible for decision-making. In particular:

1. Necessary conditions have to be created in order to make a clear and full pictureabout the mechanisms and procedures for discovering and resolving environmentalproblems as well as for incorporation of environmental needs in their activities bythe corresponding institutions and organizations.

2. Public must have a full access to information on the process of development andimplementation of the project, plan or program, policy formation or assessmentprocedure.

3. All interested citizens must have a possibility to express their opinion on the needsand preferences, connected with resource usage issues, solution alternatives andproject management system, as well as to make announcements/provideinformation in connection with decision to be taken.

ccording to the Ukrainian legislation (the Resolution of the Cabinet of Ministers ofkraine No. 1378 of 15 October 2004 "Some Details Relating to the Public Involvement in

he Formulation and Implementation of State Policies"), the public has to be consulted oney issues pertaining to the country's socio-economic development strategy and/orffecting the vital interests of the general public. The public consultation is mandatoryhere the following issues are involved:

Draft laws and regulations, relating to the rights, freedoms and legal interests ofcitizens;Draft national and regional programmes of economic, social and cultural development;and/or decisions relating to the progress of their implementation;Annual expenditure reports furnished by the authority responsible for the use andmanagement of the State Budget funds;Information about the activities of the Cabinet of Ministers of Ukraine, central and localexecutive authorities.

In reality, the degree of public participation in decision-making process can be different. Ithould be noted though, that it is no optimal level of public participation for every possiblecenario. Selection of such level in each separate case depends on the nature of theroject, character and scale of its influence on the environment, legal requirements as wells the level of public concern, democratic traditions of the region and other issues of theocial-ecologic nature.

,s a rule, for the projects, causing serious public concem, it is expedient to build programsf participation, depending on the level of partnership. For the projects, causing public

i terest of a lesser extent, it is often possible to limit activities to providing information andr naking consultations. So that, public importance of the project is one of significant factors,etermining preferable level of participation. Determining the degree of public importance

i one of significant public participation tasks on the early stages of EA procedure. Majority

46

cIf existent public participation programs in this framework are at the level of informing,riaking consultations, or in some cases, accounting for public opinion.

(ne of the common tasks to be resolved during the EA procedure - informing of theF ublic. This is usually done through publications in press, radio- and TV- broadcasts,cistribution of information bulletins, printed materials and analytical brochures. During the: rocess of publication preparation local conditions, level of public preparedness, specificscf social and ethnic groups, etc. should be taken into account. However, in the case of aI rge-scale project, having the potential for causing public concern, making all the aboverlay not be enough. Such measures, as conducting information seminars, organization ofsite visits, etc. may prove to be useful.

1 he responsibilities associated with the organization of public consultation events as partcf the environmental assessment process can be allocated between the EA consultant, ther roject proponent, and relevant executive authority.

As a rule, public consultation procedures in the framework of EA process are conducted int No steps:

E) first step - public hearing procedure "Declaration of intent", e.g. discussion of thefollowing issues:

- planned activities or the project under development;- project proposals;- preceding environmental conditions data;- definition of a group of questions, regarding EA, which are of interest to the

public;

t) subsequent steps (second, early - third step) - public hearing of EA materials, wherethe following issues are discussed:

- current condition of project implementation;- results of study of the current environmental condition of the area, where the

activity is planned;- discussion of the possible alternatives;- expected environmental impacts as a result of implementation of alternative

solutions;- potential mitigation methods and reduction of negative impacts on the

environment;- results of interaction with public on this stage of EA.

a he following participants are normally present on public hearings:

. investor;

. representatives of project organizations;

. experts, conducting environmental assessment;

. specialists from scientific institutions;

. representatives of the state administration on the area of planned activity;

. deputies of local government institutions;

. representatives of trade-union organizations, public organizations and political parties;

. representatives of religious confessions;

. local citizens;

. representatives of other interested parties.

47

earing procedures are recorded, in particular, such details are recorded:

| protocol number, date and place, where it was carried out, number of participants;| family names of the chairman and the secretary, list of participating officials;

. agenda of public hearings;* names of documents, which are discussed during hearings;

list of questions and remarks of citizens and grounded responses to these questions;. concise contents of the report.

he information dissemination issue in the EA process is normally dealt with through theublications in printed media; preparation of specialized television and radio programmes;istribution of leaflets, bulletins and brochures. Being aware that the information

r quirements can be different, careful consideration should be given to local specificonditions, level of public awareness on certain specific issues, and information needs ofarious social and ethnic groups. Where a major project is likely to give rise to public

concerns, a special consultation strategy may be required, which includes informationorkshops, visits to similar project sites etc. The EA report, both draft and final, is to beubmitted to the relevant regional authorities (the relevant Oblast Department ofnvironment and Natural Resources), which have their own public relations units that

r iaintain various feedback arrangements for their own needs. These arrangements can bemployed to ensure that NGO representatives and other stakeholders have access to theA report, provide their comments on the draft EA report, and receive responses to theirncerns.

he interested (affected) parties include the public organizations, community groups,roject proponent representatives, and general public living in the project area, that are

Ik ely to be affected by any potential impact of the proposed activity.

I accordance with the Ukrainian legislation, participation of NGO's in the project andublic participation can also be viewed as a kind of environmental review, taking placehen ecological substantiation of any sphere of activity is necessary and conducted on the

iritiative of public organizations or other units. Other ecological examinations can beconducted on the initiative of the interested physical and legal persons on the contractualbasis with specialized ecologic-expert groups.

Conclusions of public or other (non-governmental) environmental review haver ncommendatory character and can be taken into account when carrying out a stateenvironmental review, as well as in decision-making process regarding the object underr eview.

AIso, in accordance with the Ukrainian legislation, citizens have the right to obtain from theState trustworthy and full information on the condition of the environment, in particular,a out the projects, implementation of which can influence the condition of thee vironment.

Thus, in the framework of the project it is necessary to organize access to information ona tivity, connected with project implementation, for all interested parties, includingg vernmental and public organizations.

48

i~~~~~~~~~~~~~~~~~~~~~~ I

iEFERENCES:

. The Resolution of Verkhovna Rada of Ukraine "On that State Policy DevelopmentPriorities in the Field of Environment Protection, Nature Resource Use andEnvironmental Safety. Information Bulletin of Verkhovna Rada, 1998, No. 38-39, p.248.

. V.Ya. Shevchuk. The Efficiency of the State Environmental Policy. Geneva, 1999. 16 p.

. The Strategy for Moving towards the Sustainable Development in the Context ofUkraine's European Integration Agenda / Edited by E.V. Sobotovich, Member of theNational Academy of Sciences of Ukraine. K.: Salyutis, 2005. 44 p.

Trends in Environmental Expenditure and International Commitments for theEnvironment in Eastern Europe, Caucasus and Central Asia in 1996-2001. FifthEuropean Ministerial Conference "Environment for Europe". Kyiv, Ukraine, 2003. 73 p.

The Law of Ukraine "On the Environmental Review". Information Bulletin of VerkhovnaRada, 1995, No. 8, p.54.

. The State Construction Standard of Ukraine. Design Phase. The Composition andContent of Environmental Impact Assessment (EIA) of Proposed DevelopmentProjects. DBN A.2.2-1-2003. State Committee of Ukraine for Construction andArchitecture. K., 2004.

Environmental Assessment Sourcebook. Volume I. Policies, Procedures, and Cross-Sectoral Issues. Environmental Department. World Bank Technical Paper No. 139. TheWorld Bank. Washington D.C., 1991.

The Law of Ukraine "On the Approval of the State Programme for EnvironmentProtection and Rehabilitation in the Black Sea/Azov Sea Basin" of 22.03.2001.

The National Programme for Environmental Rehabilitation and Drinking Water QualityImprovement in the Dnipro Basin. Kyiv, 2001. 260 p.

0.The National State of the Environment Report for the Black Sea Basin for 1996-2000.Odessa: "Astroprint", 2002. 80 p.

1.Assessment of Sources of Air, Water and Land Pollution. A Guide to Rapid SourceInventory Techniques and their Use in Formulating Environmental Control Strategies.In Two Parts. World Health Organisation. Geneva, 1993.

12. Prioritisation of Water Sector Investment Projects in the Danube River Basin, Volume1. Summary Report. Working Group on Prioritisation / EU DABLAS Task Force. 2003.

13.Romanenko V.D., Afanasiev S.A., Vasenko A.G., Osadchy V.I., Andreichenko Yu.l.,Nabivanets Yu.B. Identification and Evaluation of Water Pollution Sources (Hot Spots)in the Dnipro Basin within Ukraine / Edited by A.A. Galyapa. Kyiv:PolygraphConsulting, 2003. 282 p.

14. World Bank OP 4.01 "Environmental Assessment". World Bank. January 1999.

49

15.The State Standard DSTU-ISO 14001-1997 "Environmental Management Systems.Composition and Description of System Elements. Application Guide". K.: StateCommittee of Ukraine for Standardisation, 1997.

16. The State Standard DSTU-ISO 14004-1997 "Environmental Management Systems.General Guidelines on Principles, Systems and Supporting Techniques". K.: StateCommittee of Ukraine for Standardisation, 1997.

50

I

r - t

NNEX I

51

* z ^r

TABULAR INFORMATION TO SECTION 4:COMPARATIVE REVIEW OF UKRAINIAN AND WORLD BANK REQUIREMENTS ON ENVIRONMENTAL ASSESSMENT

World Bank EA Requirements T Ukrainian EA Requirements | Findin s/ConclusionsEnvironmental Assessment

The World Bank's environmental assessment policy and Key legal document governing the EA process in Ukraine is The World Bank's EA policy and procedure isrecommended processing are described in Operational the Law of Ukraine "On Environment Protection"(No. 1264-XII generally compatible with the EIA system andPolicy (OP)/Bank Procedure (BP) 4.01: Environmental of 25.06.1991). practice established in Ukraine, both terminologicallyAssessment. and methodologically.The EA-related provisions are set out in the following articles

BP 4.01: The Environmental assessment (EA) for a of the Law: Key common requirement, articulated in bothproposed Bank-financed operation is the responsibility of the systems, relates to the mandatory character of theborrower. Bank staff assist the borrower, as appropriate. The Article 6. The State Environmental Programmes. environmental impact assessment as an integral partRegion coordinates Bank review of EA in consultation with Article 9. The Environmental Rights of a Citizen of Ukraine. of project preparation, design and development forits Regional environment sector unit (RESU) and, as Article 15. The Powers of Local Councils in the Field of any project activity that involves a new constructionnecessary, with the support of the Environment Department Environment Protection. and/or upgrade of an existing facility.(ENV). Article 16. The Powers of Community Groups in the Field ofEnvironment Protection.

OP 4.01 (with Annexes A, B, C): The Bank requires Article 27. The Sites/Operations Subject to the Mandatoryenvironmental assessment (EA) of projects proposed for Environmental Review.Bank financing to help ensure that they are environmentally Article 28. The State Environmental Review.sound and sustainable, and thus to improve decision Article 29. The Mandatory Character of the Statemaking. Environmental Review Conclusions.

Article 30. The Public Environmental Review.This policy plays a critical role in terms of ensuring that Article 51. The Environmental Requirements to the Siting,potential adverse impacts, associated with Bank's lending Design, Construction, Upgrade, Commissioning andoperations, are properly identified, avoided, and mitigated. Operation of a Proposed Facility.The Bank undertakes environmental screening of each Article 56. The Environmental Safety of Transportation Meansproposed project to determine the appropriate extent and and Other Mobile Equipment.type of EA. Article 58. The Environmental Safety Requirements to the

Military and Defence Sites.EA is initiated as early as possible in project processing and Article 66. The Prevention of Accidents and Mitigation of theiris integrated closely with the economic, financial, Adverse Environmental Consequences.institutional, social, and technical analyses of a proposed Article 68. The Liability for Breach of Environmental Law.project.

Other laws and regulations relevant to the environmentalThe Bank undertakes environmental screening of each assessment include:proposed project to determine the appropriate extent andtype of EA. The Bank classifies the proposed project into * The Law of Ukraine "On Environmental Review" (No. 45-one of four categories, depending on the type, location, 95-VR of 09.02.1995)sensitivity, and scale of the project and the nature and * The Law of Ukraine "On Environmental Audit" (No. 1862-magnitude of its potential environmental impacts. IV of 24.06.2004)

* The Cabinet of Ministers of Ukraine Resolution 'On theCategory A. A proposed project is classified as Category A Submission Procedure for the State Environmentalif it is likely to have significant adverse environmental

52

World Bank EA Requirements Ukrainian EA Requirements Findings/Conclusionsimpacts that are sensitive, diverse, or unprecedented. Review" (No. 870 of 31.10.1995)Examples of major types of these impacts include direct * The Ministry for Environmental Protection of Ukraineemissions that are likely to lead to the deterioration of air, Order 'On the Approval of the Regulation on thewater or soil quality; large-scale physical transformation; Participation of the Public in Decision Making onlarge-scale logging; major mining; quantifiable change of Environmental Matters" (No. 168 of 18.12.2003)hydrological regime; operations that involve the use and * The Ministry for Environmental Protection of Ukrainemanagement of hazardous substances in significant Order "On the Approval of the Regulation on the Provisionquantities, etc. These impacts may affect an area broader of Environmental Information" (No. 169 of 18.12.2003)than the sites or facilities subject to physical works. EA for a * State Standard DSTU ISO 14001 'EnvironmentalCategory A project examines the project's potential negative Management System. Application Guidelines and Manual"and positive environmental impacts, compares them with * State Design/Construction Standard DBN A.2.2-1-2003those of feasible altematives (including the "without project" "The Structure and Content of EIA Study in the Designsituation), and recommends any measures needed to and Construction of New Developments. Basic Designprevent, minimize, mitigate, or compensate for adverse Principles"impacts and improve environmental performance. For aCategnry A project, the borrower is responsible for preparing Key relevant intemational conventions, ratified by Ukraine:an EIA report.

* Convention on Access to Information, Public ParticipationCategory B. A proposed project is classified as Category B in Decision-Making and Access to Justice inif its potential adverse environmental impacts are less Environmental Matters (ratified by the Law of Ukraine No.adverse than those of Category A projects. These impacts 832- XIV of 06.07.1999)are site-specific; few if any of them are irreversible; and in * Convention on Environmental Impact Assessment in amost cases mitigation measures can be designed more Transboundary Context (ratified by the Law of Ukraine No.readily than for Category A projects. Operations that involve 534-XIV of 19.03.1999)the restoration/upgrade and maintenance of existing facilitiesare normally included into Category B. The scope of EA for aCategory B project may vary from project to project, but it isnarrower than that of Category A EA. Like Category A EA, itexamines the project's potential negative and positiveenvironmental impacts and recommends any measuresneeded to prevent, minimize, mitigate, or compensate foradverse impacts and improve environmental performance.

Category C. A proposed project is classified as Category Cif it is likely to have minimal or no adverse environmentalimpacts. Possible types of Category C projects includeeducation, family planning, healthcare, institutional capacitybuilding, human resource development. Beyond screening,no further EA action is required for a Category C project.

Category Fl: A proposed project is classified as Category Flif it involves investment of Bank funds through a financialintermediary, in subprojects that may result in adverseenvironmental impacts.

53

I~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ .P _t t 1. -u I . ,

Worldf Bank EAFcur nts Ulkialleiln EA-Requirements FidnsConclusions_

Natural HabitatsThe World Bank approach towards natural habitats is set out The Law of Ukraine "On Nature Reserves and Protected There are no significant differences in approachesin the OP/BP 4.04: Natural Habitats. Areas in Ukraine" (No. 2456-XII of 16.06.1992) is a key legal towards the management and conservation of natural

document that sets out the legal framework for the habitats, adopted by the World Bank and Ukraine.The Bank does not support projects that, in the Bank's management and conservation of natural habitats.opinion, involve the significant conversion or degradation of Key common provision of the World Bank policy andcritical natural habitats, which are to be identified as part of The following articles of the Law define the relevant legal and Ukrainian legislation relates to ensuring thethe environmental assessment project. Also, the Bank does economic mechanisms: conservation of natural habitats as much as possiblenot support projects involving the significant conversion of in their original shape and form.natural habitats unless there are no feasible alternatives for Article 8. Major Tools for the Conservation of Natural Habitatsthe project and its siting, and comprehensive analysis and Protected Areas.demonstrates that overall benefits from the project Article 10. Citizen's Rights with Regard to the Conservationsubstantially outweigh the environmental costs. If the and Management of Natural Habitats and Protected Areas.environmental assessment indicates that a project would Article 16. Protection Requirements Applied to the Naturalsignificantly convert or degrade natural habitats, the project Habitats and Nature Reserves.includes mitigation measures acceptable to the Bank. Such Article 40. Basic Requirements to the Protection Regime to bemitigation measures include, as appropriate, minimizing Maintained in the Nature Reserves and Protected Areas.habitat loss, and establishing and maintaining an Article 44. Economic Mechanism for Supporting theecologically similar protected area. Management and Operation of Nature Reserves and

Protected Areas.The Bank supports the protection, maintenance, and Article 45. Economic Justification and Feasibility Assessmentrehabilitation of natural habitats, which are essential for of Nature Reserves and Protected Areas.sustainable long-term development. The Bank supports, and Article 48. Financing the Nature Reserves throughexpects borrowers to apply, a precautionary approach to Environmental Funds.natural resource management to ensure opportunities for Article 65. Specific Implementation Features of the Civilenvironmentally sustainable development. This policy seeks Liability Regime.to ensure that the Bank-supported projects would not lead tothe significant conversion (loss) or degradation of natural The Law specifies provisions relating to the regulation of anyhabitats. planned or existing activity within the boundaries of a

biosphere reserve, national park, regional park, protectedarea, natural sanctuary, botanical gardens, dendrologicalparks, zoological parks and landscape art features.

Other relevant laws and regulations include:

* The Law of Ukraine "On the State Programme for theDevelopment of the National Ecological Network in 2000-2015" (No. 1989-l1l of 21.09.2000)

* The Law of Ukraine "On Animal World" (No. 2894-l1l of13.12.2001)

* The Law of Ukraine "On Plant World" (No. 591-XIV of09.04.1999)

54

Worid Bank EA Kequirements Ukrainian EA Requirements Findings/Conclusions* The Law of Ukraine 'On the Red Data Book of Ukraine"

(No. 3055-l1l of 07.02.2002)* The Verkhovna Rada of Ukraine Resolution 'National

Development Strategy for Nature Reserves andProtected Areas" (No. 177/94-VR of 22.09.1994)

* The Cabinet of Ministers of Ukraine Resolution "TheConcept of Biodiversity Conservation in Ukraine" (No.439 of 12.05.1997)

Relevant international conventions and agreements, ratified byUkraine:

* Convention on Biological Diversity (ratified by the Law ofUkraine No. 257/94-VR of 29.11.1994)

* Convention on the Conservation of European Wildlife andNatural Habitats (ratified by the Law of Ukraine No.436/96-VR of 29.10.1996)

* Convention on Wetlands of International ImportanceEspecially as Waterfowl Habitat (ratified by the Law ofUkraine No. 435/96-VR of 29.10.1996)

* Convention on the Conservation of Migratory Species ofWild Animals (ratified by the Law of Ukraine No. 535-XIVof 19.031999)

* Agreement on Conservation of Bats in Europe (ratified bythe Law of Ukraine No. 662-XIV of 14.05.1999).

Management of Cultural PropertyThe World Bank's policy with regard to cultural resources is Key legal document regulating the management of cultural There is a close similarity in requirements andreflected in the Operational Policy Note OPN 11.03, which is property is the Law of Ukraine "On Protection of Cultural approaches adopted by the World Bank and Ukraineused until OP 4.11 document is issued. Heritage' (No. 1805-Ill of 08.06.2000). with regard to the management of cultural property.

The World Bank's general policy regarding cultural This Law deals with legal, institutional, social and economic Key common requirement, set out in the Bank'sissues relating to the management and preservation of policy and Ukrainian legislation, is to ensure theproperties is to assist in their preservation, and to seek to cultural assets, and protection of traditional cultural preservation of cultural assets and historical heritage.avoid their elimination. Specifically: environment in the interests of present and future generations.

a) The Bank normally declines to finance projects that will Cultural assets located within Ukraine are protected by thesignificanktnommally damageclinresptficabe cultural prorty state. Their protection is declared as one of priority tasks ofsignificantly damage non-replicable cultural property, state and local governments.and will assist only those projects that are sited ordesigned so as to prevent such damage. Key articles of the Law that cover a range of major technical

b) The Bank will assist in the protection and enhancement and economic issues include:of cultural properties encountered in Bank-financedprojects, rather than leaving that protection to chance. Article 19. Pecuniary Valuation of a Cultural Asset.In some cases, the project is best relocated in order that Article 22. Prohibition of Demolition, Modification, Substitution

55

World Bank EA Requirements Ukrainian EA Requirements Findings/Conclusionssites and structures can be preserved, studied, and of a Cultural Asset, and Relocation Procedure.restored intact in situ. In other cases, structures can be Article 24. Maintenance and Management of Cultural Assets.relocated, preserved, studied, and restored on altemate Article 29. Responsibilities of Natural Persons and Legalsites. Often, scientific study, selective salvage, and Entities, whose Activities May Affect the State of a Culturalmuseum preservation before destruction is all that is Asset.necessary. Most such projects should include the Article 30. Prohibition of Activities that Pose a Threat to atraining and strengthening of institutions entrusted with Cultural Asset.safeguarding a nation's cultural patrimony. Such Article 32. Protection Zones for Cultural assets and Historicalactivities should be directly included in the scope of the Areas.project, rather than being postponed for some possiblefuture action, and the costs are to be intemalised incomputing overall project costs.

c) Deviations from this policy may be justified only whereexpected project benefits are great, and the loss of ordamage to cultural property is judged by competentauthorities to be unavoidable, minor, or otherwiseacceptable. Specific details of the justification should bediscussed in project documents.

d) This policy pertains to any project in which the Bank isinvolved, irrespective of whether the Bank is itselffinancing the part of the project that may affect culturalproperty.

Involuntary ResettlementThe World Bank's Operational Policy 4.12: Involuntary Ukrainian law does not provide a legally defined framework for There is no specific legislation for the managementResettlement aims to address and mitigate risks associated the planning and management of resettlement issues of involuntary resettlement issues as part ofwith involuntary resettlement under development projects. associated with development projects. The involuntary development projects in Ukraine, though these

resettlement issues are dealt with on an individual project issues are addressed in a number of stateThe planning of resettlement activities is an integral part of basis, where an implementing agency negotiates the terms, regulations.preparation for Bank-assisted projects. During project timetable, and compensation rates with persons/communitiesidentification, the task team (TT) identifies any potential affected by a proposed project activity, and reaches an There needs to emerge a clearly defined legal andinvoluntary resettlement under the project. Throughout amicable agreement with each affected person/household. regulatory framework for the setting of adequateproject processing, the TT consults the regional social compensation measures in projects involvingdevelopment unit, Legal Vice Presidency (LEG) and, as Key legal document regulating housing/settlement issues in involuntary resettlement, to be compatible/consistentnecessary, the Resettlement Committee. Ukraine is the Housing Code of the Ukrainian SSR (No. 5464- with the WB guidelines.

X of 30.06.1983). It contains the requirement for the provisionWhen a proposed project is likely to involve involuntary of altemative housing for tenants forced to vacate their houseresettlement, the TT informs the borrower of the provisions due to its capital repair.of OP/BP 4.12. The TT and borrower staff:

After the Chemobyl accident, a number of laws anda) assess the nature and magnitude of the likely regulations have been adopted in Ukraine in order to provide

displacement; a legal framework for the involuntary resettlement from theb) explore all viable altemative project designs to avoid, areas affected by radioactive contamination.

where feasible, or minimize displacement;c) assess the legal framework covering resettlement and

56

i iorid tanh iA Kequirements Ukrainian EA Requirements Findings/Conclusionsthe policies of the government and implementingagencies (identifying any inconsistencies between suchpolicies and the Bank's policy);

d) review past borrower and likely implementing agencies'experience with similar operations;

e) discuss with the agencies responsible for resettlementthe policies and institutional, legal, and consultativearrangements for resettlement, including measures toaddress any inconsistencies between government orimplementing agency policies and Bank policy;

f) discuss any technical assistance to be provided to theborrower. _

.

Projects on International WaterwaysThe planning and implementation of projects on international In Ukraine, water management issues are govemed by the There are certain inconsistencies between the WBwater;ways are governed by the World Bank's OP/BP 7.50: Water Code of Ukraine (No. 213-95NR of 06.06.1995). and Ukrainian systems and requirements, relating toProjects on International Waterways. the planning/implementation of projects onKey articles relevant to the implementation of water projects intemational waterways.Recognizing that the cooperation and goodwill of riparians is include:essential for the efficient use and protection of a waterway, At present, water resources in Ukraine are managedthe Bank applies this policy to the projects located on Article 11. Participation of Citizens and Public Groups in according to the administrative boundaries, ratherintemational waterways (any river, canal, lake, or similar Activities Relating to the Management, Protection and than on a river catchment basis.body of water that forms a boundary between, or any river or Restoration of Water Resources.body of surface water that flows through, two or more states; Article 22. Environmental Review. The Environmental Framework Policy for theany bay, gulf, strait, or channei bounded by two or more Article 86. Use and Management of Land under the Water of proposed projects should be consistent with thestates or, if within one state, recognized as a necessary Rivers, Lakes, Reservoirs, Seas and other Bodies of Water. relevant WB policy and procedures.channel of communication between the open sea and other Article 87. Water Protection Zones.states-and any river flowing into such waters). Article 96. The Siting, Design, Construction, Upgrade, and Ukraine is party to key international conventions,Commissioning of Facilities that May Affect the State of relating to the intemational waterways andThe Bank requires the potential borrower to formally notify Waters. transboundary water bodies, and has signed bilateralthe other riparians of the proposed project and its details. Article 97. The Siting, Design, Construction, Upgrade, and agreements with many adjacent countries to regulateThe exceptions to notification requirement include projects Commissioning of Facilities that May Affect the State of the management of shared water resources.that will not adversely change the quality or quantity of water Waters Designated for Fisheries.flows to the other riparians; and projects that will not be Article 98. The Prohibition of Activities that Affect ten State of The detailed analysis and harmonisation of the WBadversely affected by the other riparians' possible water use. Waters. and Ukrainian practices should be conducted onArticle 110. Liability for a Breach of Water Law. case-by-case basis, i.e. with respect to each specificArticle 111. Compensation of Damage Inflicted as a Result of project, located on an international waterway.a Breach of Water Law.

Other relevant laws and regulations include:

* The Cabinet of Ministers of Ukraine Resolution "TheEnvironment Protection and Rehabilitation Concept forthe Black Sea and the Sea of Azov" (No. 1057 of10.07.1998)

57

World Bank EA Requirements Ukrainian EA Requirements Findings/Conclusions* The Cabinet of Ministers of Ukraine Resolution "The

State Programme for the Protection and Rehabilitation ofthe Black Sea and the Sea of Azov' (No. 2333-l1l of22.03.2001)

* The Verkhovna Rada of Ukraine Resolution "NationalProgramme for Environmental Rehabilitation and DrinkingWater Quality Improvement in the Dnipro Basin" (No.123/97-VR of 27.02.1997)

* The Law of Ukraine "On Environmental Review' (No. 45-95-VR of 09.02.1995).

International documents, ratified by Ukraine:

* Convention on the Protection and Use of TransboundaryWaters and International Lakes (ratified by the Law ofUkraine No. 801-XIV of 01.07.1999)

* Convention on Environmental Impact Assessment in aTransboundary Context (ratified by the Law of UkraineNo. 534-XIV of 19.03.1999.

58

NNEX 2

59

- -

MPLEMENTATION OF A SYSTEM FOR INTEGRATED ENVIRONMENTALERMITTING

urrent Situation (Water Protection)

,urrently effluent discharges into surface water bodies in Ukraine are regulated by theRules for surface water protection from pollution with wastewaters", enacted in April 1999CMU, 1999), "Sanitary rules and regulations for surface water protection from pollution",nacted in July 1988 (USSR Ministry of Health, 1988a) and "Sanitary rules and regulationsr protection of coastal sea waters from pollution in the areas of municipal water use",nacted in July 1988 (USSR Ministry of Health, 1988b).

ccording to these rules, discharge of wastewaters into water bodies is allowed only afterbtaining a permit for "special water-use". The degree to which discharged wastewatersI ave to be treated (purified) is determined by the Maximum Allowable Discharge (MAD)r orms for polluting substances. These norms are normally imposed in order to graduallyi nprove surface water quality and meet the sanitary-hygienic requirements in proximity towater-intake structures (CMU, 1999).

tlorms (MACs or EALs) for the water chemical composition and its properties in watertodies are set depending on the category of water-use.

Water bodies of the first category are the water bodies, used as the source for centralizedc r non-centralized economic-potable water supply as well as for water supply of food-rocessing industry enterprises.

ater bodies of the second category are the water bodies, used for cultural andc ammunity purposes, recreation, sport and water bodies, located inside settlement borders( JSSR Ministry of Health, 1988a).

c )-called Emission Limit Values (ELVs) are calculated in order to meet the MaximumA lowable Concentrations (MACs) in the receiving media. ELVs constitute the basic permitr quirements. However, compliance with ELVs is not always technically feasible ande onomically substantiated. Environmental permits do not consider the possible transfer ofp llution from one medium to another as a result of pollution control implementation. Also,tt e possibility of abating or preventing pollution at a least cost is not taken into account.

Generally, the system for issuing environmental permits in Ukraine can be characterizedb the following features:

- mainly end-of-pipe oriented controls;- focus on single media;

- opaqueness to the public (OECD, 2003).

C rrently the Government of Ukraine is considering the possibility of substantialre ormation of its Environmental Permitting system. The leading role in the process ofd velopment of a new system was taken by Branch of Atmosphere Protection of theM nistry for Environmental Protection. New, technology-oriented approach toer vironmental permitting is declared in the law "On the atmosphere protection" (2001) ands bsequent Regulations of the Cabinet of Ministers of Ukraine (OECD, 2005a).

60

The System of Integrated Environmental Permitting

The system of integrated permitting implies that emissions into all media (air, water andland) as well as various other possible environmental effects should be considered jointlyin order to achieve a certain level of protection for the environment as a whole.

There are basically two complementary approaches to determination of Emission LimitingValues (ELVs): the technique-based approach and the environmental quality-basedapproach.

The approach, currently employed in Ukraine is the environmental quality approach, whichses modelling techniques to calculate the ELVs, providing compliance with environmental

quality objectives and quality standards based on the assimilative capacity of the receivingmedium.

rhe technique-based approach is oriented at setting ELVs, corresponding to the technicalolutions, that can deliver a higher level of environmental performance, e.g. that ensure

the adoption of best technical means for reducing the environmental impacts ofnstallation, with provisions for the economic availability.

, t present, the EU uses a combined approach to setting ELV's as part of its integratedermitting system. A combined approach recognizes that the technique-based approach

and the environmental quality approach are not mutually exclusive and can be used,oncurrently, e.g. that ELVs for industrial installations be calculated based on a combinedassessment of environmental quality objectives and the current state of technology for'educing harmful releases (OECD, 2005b).

lECD manual "Integrated Environmental Permitting Guidelines for Countries of EastemEurope, Caucasus and Central Asia (EECCA)"(OECD 2005b) suggests, that the followingnulti-step process should be applied by permitting authority when using the combinedapproach:

- Assess the BAT-based ELVs proposed by the operator in the permit application;- Consider whether applicable statutory ELVs are defined in the legislation and, if so,

ELVs in the permit must comply with such fixed ELVs;- Calculate the ELVs, required to ensure compliance with corresponding EQSs;- Set ELVs in the permit. If it is not possible to achieve an EQS even using BATs at a

certain installation, then either measures should be taken to reduce discharges fromother installations in the area to achieve overall compliance with the EQS, or thepermit should be refused.

he process of Transition to the New System

ccording to OECD (2005b), the basic steps to be taken in order to introduce BAT-basedi itegrated permitting system should include:

- Determination of the scope of the integrated permitting system (includesestablishing of a list of industrial sectors and the minimum size, in terms of

61

production capacity or the output, of installations to be controlled within the newsystem;

- -Development of timing for introduction of the integrated permitting system forindustry through setting priorities among the industrial sectors in order to establish amulti-stage process of transition to the new regime. This includes establishingdifferent compliance deadlines for new and existing installations;

- Making amendments in the primary environmental legislation to introduce the newsystem, develop a law on integrated permitting and implement regulations for it;

- Management of the transition through effective stakeholder cooperation under theaegis of the Ministry for Environment Protection;

- Designation of competent permitting authorities at appropriate administrative levels,their connection with environmental enforcement agencies, and coordinationbetween the processes of permitting and environmental assessment;

- Institutional capacity building, e.g. addressing the needs for financial and humanresources under the new conditions, development of permitting procedures, BATrecommendations and training programs.

The EU experience suggests, that the preparatory phase of the introduction of thentegrated permitting system (until the issuance of first integrated permits in higher priority3ectors) may last for 5 - 6 years, and the full transition to the new permitting system mayrequire up to 15 years.

ransition to the integrated environmental permitting system is necessitated by the needor creation of more efficient environment protection system, requires conducting a series

Df measures, including scientific, administrative, institutional and legal components andsorresponds to the concept of sustainable development of the state.

62

EFERENCE LIST (SECTION 6)

MU - Cabinet of Ministers of Ukraine. Regulation No 465. On approval of rules forurface water protection from pollution with wastewaters. Kyiv. March 25, 1999.

CECD. Organization for Economic Co-operation and Development. EAP Task Force.Review of Environmental Permitting Systems in Eastern Europe, Caucasus and Central

Asia. April, 2003.

)ECD. Environment Directorate. Environment Policy Committee. Approach to the,7troduction of Integrated Environmental Permitting in Ukraine. Case Study. April 08,005a.

)ECD. EAP Task Force. Integrated Environmental Permitting Guidelines for Countries ofEastern Europe, Caucasus and Central Asia (EECCA). 2005b.

IJSSR Ministry of Health. Sanitary rules and regulations for surface water protection frompollution. Official edition. Moscow, 1988a.

l ISSR Ministry of Health. Sanitary rules and regulations for sea coastal waters protectiontom pollution in the areas of municipal water use. Official edition. Moscow, 1988b.

Glossary (Section 6):

EAL - Estimated allowable level;

E LV - Emission limiting value;

rlAC - maximal allowable concentrations of substances are such concentrations, thatt ese substances do not impose any direct or indirect influence on human health (both -ir nmediate and cumulative effects) and do not lead to deterioration of hygienic conditionsc water usage;

AD - maximal allowable discharge

ECD - Organization for economic cooperation and development.

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