Report on Environmental Investments 2006

REPORT ON ENVIRONMENTAL INVESTMENTS

2006

Riga REPORT ON ENVIRONMENTAL INVESTMENTS 2006

CONTENTS

FOREWORD �� 3 Investments in Environmental Protection �� 4 ATTRACTION OF CO-FINANCING FOR ENVIRONMENTAL PROTECTION �� 8 Investments in development of water services infrastructure �� 10 Implementation of the projects co-financed by the Cohesion Fund ��11 Implementation of the ERDF co-financed projects �� 13 INVESTMENTS IN THE DEVELOPMENT Of Waste Management System �� 15 Implementation of the projects co-financed by the Cohesion Fund �� 17 Implementation of ERDF co-financed projects �� 18 Investments in NATURE Protection �� 19 Implementation of the ERDF co-financed projects �� 19 Implementation of LIFE co-financed projects �� 20 Implementation of INTERREG co-financed projects �� 23 INVESTMENTS IN THE Radiation Safety �� 23 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

FOREWORD

Analysing the current period of account it can be said that the environmental infrastructure of Latvia is being developed more and more rapidly and in high quality. Information provided on the accomplished measures and still designed and the financial means invested in order to ensure implementation of the environmental policy in 2006 is the evidence given in this report. In 2006 the Ministry of the Environment continued implementation of the environmental investment strategy by involving in the implementation of projects in the fields of environmental protection infrastructure, nature protection, radiation safety, development of environmental monitoring and capacity building of environmental protection institutions. In the same way as in the previous years, co-financing has been attracted from the European Union Cohesion Fund, European Regional Development Fund, EU Transition Facility programme, LIFE – Nature and INTERREG in order to implement the above mentioned projects. Totally in 2006 more than 53 million lats were invested in environmental protection projects. Up to now, this is the highest amount of financing invested in the environmental protection field within one year in Latvia during the time period from 1995 till 2006. Overall, 277 million lats have already been invested in the environmental protection in this more than ten years’ period, of which 100 million lats is foreign financial assistance. Notwithstanding the achievements, the Ministry of the Environment and its collaboration partners – municipalities – still face with the project cost increase. This is a significant problem which makes it difficult to implement investment projects. In order to cover the financial gap that has emerged due to rise in prices the Ministry of the Environment attracted 7.18 million euro from the EU Cohesion Fund co-financed projects in 2006. In addition, following a respective decree of the Cabinet of Ministers, an opportunity was also given to plan additional means to be received from the state budget for the implementation of several projects co-financed by the Cohesion Fund. In its turn, for the projects co-financed by the European Regional Development Fund, the aim of which is to remediate non-compliant municipal solid waste dump sites, as well as for the eco-tourism infrastructure development projects in the Natura 2000 territories, the state having undertaken extra obligations, additional 1.72 million lats were made available. Within its limits the Latvian Environmental Protection Fund has allocated financing as well in order to cover rise in prices of the projects co-financed by the European Regional Development Fund. Along with the implementation of the existing projects, in 2006 attention was paid to the attraction of financial resources to new measures as well. Among them, co-financing from the European Union funds, the International Atomic Energy Agency and the USA Energy Department was approved for environmental protection projects in the amount of 42.77 million euro. Substantiation was elaborated for environmental protection activities within the “State Strategic Reference Framework 2007–2013” under the operational programme “Infrastructure and Services”, for the implementation of which 549 million euro would be available from the Cohesion Fund and 243.69 million euro from the European Regional Development Fund. Most part of this financing – almost 563 million euro was foreseen for the improvement of water services quality. One of the determining factors for the acquisition of this financing would be the quality of respective projects. A commission established by the Ministry of the Environment for evaluation of construction projects of water services buildings, the conclusion of which is needed so that project applicants could qualify for the financing from the European Funds, already evaluated 98 preliminary ideas for water services infrastructure projects in 2006. To a great extent we can be satisfied with the achieved in the improvement of environmental infrastructure; however, there is still much to do. In this respect, crucial role will play not only the amount of available financing, but also the persistence and high professionalism of project developers and implementers. Without doubt, Latvian environmental specialists have force to work so that the quality of our state’s environment would be rapidly improved.

Minister for the Environment Raimonds Vējonis 3 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

Investments in Environmental Protection

In 2006 financing was invested in the environmental protection infrastructure and institutional capacity building projects, as well as in preparation of projects and in elimination of after-effects caused by accidents. With the attracted financing from the European Union (EU) funds, projects were implemented with the investment amount being 53.567 million lats. Most of the financing came from the EU funds – it was 51.6% of total investments, state budget financing was 22%, but financing from project owners was 26% of financing invested in the environmental protection (Figure 1).

EU funds’ co-financing

27.613 Financial means 14.051 of investment project owners

11.902 State budget

0.00 5.00 10.00 15.00 20.00 25.00 30.00

Figure 1. Investments in the environment according to the financing source, 2006, million VLL

In 2006 investments in the environmental protection reached the highest level (Figure 2). In the time period from 1995, 277.4 million lats have been invested in the environmental protection projects, of which 100.9 million lats are foreign financial assistance. 27% of foreign financial assistance was invested in 2006.

60.00

50.00

40.00

30.00

20.00

10.00

0.00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Foreign financial assistance State budget Financial means of investment project owners

Figure 2. Dynamics of the contribution by financing sources in the environmental sector, 1995-2006, million LVL

4 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

In 2006, in the environmental protection there were invested 27.613 million lats of the approved co-financing from the EU funds and programmes. Almost 77% of the financing was the Cohesion Fund co-financing, financing from the European Regional Development Fund (ERDF) comprised 18% of the EU fund financing part, Phare and Transition Facility – 3.4%, INTERREG – 0.01% and Solidarity Fund ~ 1.4% (Figure 3).

0.374 Solidarity Fund

0.004 INTERREG

0.936 Phare/Transition Facility

5.061 ERDF

21.238 Cohesion Fund

0.000 5.000 10.000 15.000 20.000 25.000

Figure 3. Contribution of EU funds and programmes in environmental protection projects, 2006, million LVL

66% of the total investments in 2006 were invested in development of water services infrastructure, in municipal waste management ~15%, in development of environmental monitoring system ~ 1.6%, in nature protection ~ 0.5%, in radiation safety ~ 0.3%. Significant support was also to the preparation of projects – almost 16% of the invested financial means in the environmental protection (Figure 4).

0.164 0.866 8.497

0.272

8.227

35.540

Development of water services Waste management

Nature protection Development of environmental monitoring system

Radiation safety Technical assistance

Figure 4. Division of investments by the priority sectors, 2006, million LVL

Analysing investments in the environmental protection by planning regions, implementing waste management and water services development infrastructure projects co-financed by the Cohesion Fund, most investments, including financing from the state budget, the Cohesion Fund and project owners, was contributed in Riga planning region ~ 41%,

5 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

Latgale ~ 26%, Kurzeme ~19%, Vidzeme ~ 7.5% and Zemgale planning region ~ 7% of total investments (Figure 5). In total 37.764 million lats were invested in the infrastructure development projects co-financed by the Cohesion Fund.

9.733 15.468

2.708

7.031 2.824

Riga Vidzeme Kurzeme Zemgale Latgale

Figure 5. Total distribution of investments by planning regions, implementing projects co-financed by the Cohesion Fund, 2006, million LVL

Investment distribution was different, when implementing infrastructure projects co-financed by the ERDF in the fields of water services development andwaste management; the total amount invested totalling up to 5.624 million lats. Most financing was invested in Vidzeme planning region ~ 51%, in Latgale ~ 17.4%, in Kurzeme ~6.2%, in Riga ~ 13.4% and in Zemgale planning region ~ 12.1% of total investments (Figure 6).

0.977 0.752

0.681

0.346 2.869

Riga Vidzeme Kurzeme Zemgale Latgale

Figure 6. Total distribution of investments by planning regions, implementing projects co-financed by the ERDF, 2006, million LVL

6 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

In total 43.388 million lats were invested in water services development and waste management infrastructure projects in 2006. 37.4% of total infrastructure project investments were invested in Riga planning region, in Latgale planning region ~ 24.7%, in Kurzeme ~ 17%, in Vidzeme ~ 13.1% and in Zemgale planning region ~ 7.8% (Figure 7).

10.710 16.219

3.388

7.378 5.692

Riga Vidzeme Kurzeme Zemgale Latgale

Figure 7. Total distribution of investments by planning regions, implementing projects co-financed by the Cohesion Fund and the ERDF, 2006, million LVL

Total investments per inhabitant in Riga planning region were 14.8 lats, in Vidzeme – 23.2 lats, in Kurzeme – 23.8 lats, in Zemgale – 11.8 lats and in Latgale planning region – 29.5 lats (Figure 8).

29.5 30.0

23.2 23.8 25.0

20.0 14.8

15.0 11.8

10.0

5.0

0.0 Riga Vidzeme Kurzeme Zemgale Latgale

Figure 8. Investments per inhabitant in waste management and water services development infrastructure projects by the planning regions, implementing the EU co-financed projects, 2006, VLL

7 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

ATTRACTION OF CO-FINANCING FOR ENVIRONMENTAL PROTECTION

For the purpose of realisation of environmental protection projects, co-financing from the European Union funds as well as other international institutions was approved in the amount of 42.77 million euro in 2006 (Table 1). Financing was approved for 20 environmental protection projects in the fields of air protection, waste management and water services development, nature protection and radiation safety.

Approved Financing Project financing, sounce million EUR Treatment of the Ventspils Heat Supply System Cohesion Fund 34.605 Technical Assistance for Water Services Development Projects in Cohesion Fund 2.567 Latvia Municipal Solid Waste Management in North Vidzeme Region, Cohesion Fund 0.485 II phase Remediation of Amata Region Dumpsite “Konrādi” ERDF 0.278 Establishment of Separated Waste Collection Point (Composting ERDF 0.076 Field) in Aloja Establishment of Separated Waste Collection Points (Riga) ERDF 0.667 Establishment of Separated Waste Collection and Composting ERDF 0.211 System in Valka Establishment of Separated Waste Collection System and ERDF 0.187 Sorting Point in Malta Municipality Establishment of Separated Biologically Destructive Waste Collection Point and Supply of the Necessary Equipment in ERDF 0.136 Limbaži Establishment of Complex Solid Municipal Waste Collection ERDF 0.125 Container Points in Rēzekne City Establishment of Separated Waste Collection Points in Krāslava, ERDF 0.225 Līvāni, Preiļi Regions and Dagda City Establishment of Separated Waste Collection Points in Jelgava ERDF 0.248 City Water Services Development in Liezere Parish, Liezere and ERDF 0.180 Ozoli Villages Water Services Development in Andrupene Parish, Andrupene ERDF 0.248 and Mariampole Villages Renewal of Biological Diversity in the Military Site and Natura LIFE- Nature 0.453 2000 territory “Ādaži” Improvement of Biotope Management in the Natura 2000 LIFE- Nature 0.357 Territory – Vestiena Protected Landscape Countryside Ensuring of Decommissioning of Salaspils Nuclear Reactor IAEA 0.185 Establishment of Multifunctional Cyclotron centre IAEA Management of Radioactive Waste and Dismantling of the EU Transition 0.329 Reactor Facility Ensuring of Preparatory Works for Transportation of Spent USA Energy 1.209 Nuclear Fuel Department Total 42.770

Table 1. Approved foreign co-financing for the environmental protection projects, 2006, million EUR

8 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

One of the most financially spacious of the approved projects is the “Treatment of the Ventspils Heat Supply System”, where co-financing from the Cohesion Fund makes ~ 81% of the total foreign assistance allocated for the environmental projects in 2006. Financing was approved for preparation and implementation of water services development projects and infrastructure projects in the amount of 2.994 million euro or 7% of the foreign assistance allocated in 2006; for the development of separated waste collection system and improvement of municipal waste landfill infrastructure 2.638 million euro were approved, for nature protection – 0.81 million euro and radiation safety projects – 1.723 million euro (Figure 9).

2.638 0.810 1.723 34.605 2.994

Air protection Development of water services Waste management Nature protection Radiation safety

Figure 9. Distribution of the approved foreign co-financing according to the environmental field, 2006, million EUR

Financing was approved from the European Union funds (the Cohesion Fund, the ERDF, Life-Nature, EU Transition Facility), the International Atomic Energy Agency and the USA Energy Department (Figure 10). In 2006 financing from the EU funds and programmes was approved in the amount of 41.366 million euro or 97% of the total approved amount of foreign financing for the environmental protection projects.

0.810 0.329 1.209 0.185 2.580 37.657

Cohesion Fund ERDF LIFE-Nature IAEA EU Transition Facility USA Energy Department

Figure 10. Amount of foreign co-financing for the environmental protection, 2006, million EUR

9 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

Investments in development of water services infrastructure

In 2006 there were 35.535 million lats invested in the implementation of the European Union co-financed water services infrastructure projects. The Cohesion Fund contribution was 12.506 million lats, ERDF – 4.618 million lats, state budget – 8.679 million lats and financing of the project owners* – 9.361 million lats. The Solidarity Fund invested 0.374 million lats in the water services infrastructure for elimination of the aftereffects caused by the storm. Most of the financing was invested in Riga planning region – 15.951 million lats, in Kurzeme – 7.142 million lats, in Vidzeme – 4.883 million lats, in Latgale – 4.801 million lats and in Zemgale planning region – 2.758 million lats (Figure 11).

13.5% 44.9% 7.8%

20.1%

13.7%

Riga Vidzeme Kurzeme Zemgale Latgale

Figure 11. Investments in the development of water services system by planning regions, implementing projects co-financed by the EU, 2006, %

In its turn, investments per inhabitant in Riga planning region were 14.5 lats, in Kurzeme – 23.0 lats, in Vidzeme – 19.9 lats, in Latgale – 13.2 lats and in Zemgale planning region – 9.6 lats (Figure 12).

25.0 23.0 19.9

20.0 14.5 13.2 15.0 9.6 10.0

5.0

0.0 Riga Vidzeme Kurzeme Zemgale Latgale

Figure 12. Investments per inhabitant for the development of water services system by planning regions, implementing projects co-financed by the EU, 2006, LVL

10 *Financing from the owners of the ERDF co-financed projects is indicated if the project is fully completed and the exact contribution of project owners is known REPORT ON ENVIRONMENTAL INVESTMENTS 2006

In 2006 the Environmental Protection Fund supported 37 projects under the project guideline “Water Protection”, the total amount of which sums up to 0.507 million lats. The Fund has supported implementation of water services infrastructure projects by approving financing for coverage of cost increase of the ERDF national programme projects, water-body management project, as well as projects for power supply safety improvement for water services.

In 2006 the European Commission approved co-financing from the Cohesion Fund in the amount of 1.804 million lats as technical assistance for the development of water services projects in Latvia. There are two water services infrastructure development projects included in the national programme “Development of Water Services Infrastructure in the Agglomerations with Population Equivalent below 2000” of year 2006, with the approved ERDF co-financing in the amount of 0.3 million lats. These projects will be implemented in four settlements within two municipalities – in Liezere and Ozoli villages of Liezere parish, and in Andrupene and Mariampole villages of Andrupene parish.

Implementation of the projects co-financed by the Cohesion Fund In 2006 with the support of the Cohesion Fund water services infrastructure investment projects were implemented in 27 agglomerations with population equivalent above 2000 (Riga, Daugavpils, Liepāja, Jūrmala, Ventspils, Rēzekne, Jelgava, Ogre, Olaine, Jaunolaine, Salaspils, Ķekava, Ķegums, Lielvārde, Līvāni, Cesvaine, Dagda, Preiļi, Valmiera, Smiltene, Alūksne, Valka, Sigulda, Cēsis, Priekuļi, Limbaži, Salacgrīva). In the framework of these projects, accessibility to water services was increased by extending sewage networks by ~ 52 km and water supply networks by ~ 14 km, and the quality of the services was improved by reconstructing 20 km of sewage networks and 7 km of water supply networks. Construction of a new drinking water treatment plant and water reservoir was started in Rēzekne.

For the implementation of water services infrastructure projects 29.859 million lats were invested, of which the Cohesion Fund financing was 12.506 million lats, state budget subsidies were 8.159 million lats, and financing of investment project owners – 9.193 million lats (Figure 13).

8.159 State budget

12.506

Cohesion Fund co-financing

Financial means of 9.193 investment project owners

0.000 2.000 4.000 6.000 8.000 10.000 12.000 14.000

Figure 13. Investments in the projects co-financed by the Cohesion Fund, 2006, million VLL

11 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

To implement technical assistance projects 8.207 million lats were invested, of which the Cohesion Fund financing was 5.528 million lats, state budget subsidies – 1.543 million lats and financial means of investment project owners – 1.136 million lats. In total 38.067 million lats were invested to implement water services development projects, both project preparation and capital investments projects. The Cohesion Fund contribution makes 18.034 million lats, state budget subsidies – 9.703 million lats and financial means of investment project owners – 10.329 million lats. If the distribution of investments by water services infrastructure projects is analysed then 64.3% of financing was invested in the agglomerations with population equivalent from 10 000 to 100 000, 32.3% – in the agglomerations with population equivalent above 100 000 and only 3.3% – in the agglomerations with population equivalent from 2000 to 10 000 – 19.204, 9.659 and 0.996 million lats respectively. Most of the financing in the infrastructure projects was invested in Riga planning region – 15.358 million lats, in Kurzeme – 6.432 million lats, in Latgale – 3.824 million lats, in Vidzeme – 2.168 million lats and in Zemgale planning region – 2.077 lats (Figure 14, Table 2). In Riga planning region projects were implemented in 12 agglomerations, in Kurzeme – 2, in Latgale – 5, in Vidzeme – 7 and in Zemgale planning region – in 1 agglomeration.

12.8% 51.4% 7.0%

21.5%

7.3%

Riga Vidzeme Kurzeme Zemgale Latgale

Figure 14. Total distribution of investments by planning regions, implementing projects co-financed by the Cohesion Fund, 2006, %

For its part, most investments per inhabitant for the development of water services infrastructure in 2006, when implementing the Cohesion Fund co-financed projects, was invested in Kurzeme planning region – 20.7 lats and least – in Zemgale planning region, i.e., 7.2 lats (Table 2).

Investments, Investments per Planning region million LVL inhabitant, LVL Riga planning region 15.358 14.0 Vidzeme planning region 2.168 8.8 Kurzeme planning region 6.432 20.7 Zemgale planning region 2.077 7.2 Latgale planning region 3.824 10.5

Table 2. Total investments in the development of water services by planning regions, implementing projects co-financed by the Cohesion Fund, 2006 12 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

Analysing investment in development of water services infrastructure distribution by the river basin districts, it can be seen that in 2006 by implementing of the Cohesion Fund co-financed projects, most financing was invested in the Daugava river basin district agglomerations, i.e., 50% of total investments. In the agglomerations of the Gauja river basin district – 10%, in the Venta river basin district – 22% and in the Lielupe river basin district – 18% of total financing in the agglomerations with population equivalent above 2000 was invested (Figure 15).

15.069 16.000

14.000

12.000

10.000 6.432 8.000 5.392 6.000 2.966 4.000

2.000

0.000 Daugava Gauja river Venta river Lielupe river river basin basin basin basin

Figure 15. Total investments when implementing the projects co-financed by the Cohesion Fund, in river basin districts, 2006, million LVL

In the agglomerations of the Daugava river basin district projects in 13 agglomerations were implemented, in the Gauja river basin district – in 8, in the Venta river basin district – in 2 and in the Lielupe river basin district – in 4 agglomerations with population equivalent above 2000.

Implementation of the ERDF co-financed projects There were 89 projects covering 127 agglomerations included in the ERDF national programme “Development of Water Services Infrastructure in the Agglomerations with Population Equivalent below 2000”. In 2006 there were 41 projects implemented under the programme: in Riga planning region – 3 out of 9 approved projects, in Vidzeme planning region – 18 out of 36 approved projects, in Kurzeme planning region – 3 out of 9 approved projects, in Latgale planning region – 9 out of 20 approved projects and in Zemgale planning region – 8 out of 15 approved projects. Since 2005 there have been 47 projects fully completed under the national programme, but partly completed – 38 projects. In 2006 when implementing the projects, 40 waste water treatment plants were reconstructed or built a new ones, 55 drinking water treatment plants were reconstructed or built a new ones in order to improve potable water quality, sewage networks in the length of ~ 19 km were extended, while water supply networks were extended by ~ 26 km, network reconstruction was carried out in the length of ~ 14 km and 36 km respectively.

For implementation of water services infrastructure projects 5.302 million lats were invested in 2006. The ERDF repayment requests were approved in the amount of 4.618 million lats, state budget subsidies – 0.520 million lats, financial means of project

13 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

owners* – 0.168 million lats. There were 2.715 million lats invested in Vidzeme planning region, in Latgale planning region – 0.977 million lats, in Zemgale – 0.681 million lats, in Riga planning region – 0.583 million lats and Kurzeme planning region – 0.346 lats (Figure 16).

12.8% 11.0%

18.4%

6.5% 51.2%

Riga Vidzeme Kurzeme Latgale Zemgale

Figure 16. Total distribution of investments by planning regions, implementing projects co-financed by the ERDF, 2006, million LVL

The highest amount of investments per inhabitant invested in the planning regions was in Vidzeme planning region and the least – in Riga planning region (Table 3).

Investments per Planning region inhabitant, LVL Riga planning region 0.5 Vidzeme planning region 11.1 Kurzeme planning region 1.1 Zemgale planning region 2.7 Latgale planning region 2.4

Table 3. Investments per inhabitant for the development of water services by planning regions, implementing projects co-financed by the ERDF, 2006

Within the national programme “Development of Water Services Infrastructure in the Agglomerations with Population Equivalent below 2000” the ERDF repayments were 4.619 million lats, i.e., 27.9% of the approved ERDF co-financing. Most effective acquisition of the ERDF financing was in Vidzeme planning region – ERDF repayments amounted to 38% of the approved financing for the projects in Vidzeme planning region. In Latgale planning region the ERDF repayments were 27% in 2006, in Zemgale – 23%, in Riga – 20% and in Kurzeme planning region – 13% of the approved ERDF financing for the respective planning region projects. In 2006 the ERDF repayments correlated to the number of implemented projects – the higher number of implemented projects, the more ERDF repayments.

* Financing from the owners of the ERDF co-financed projects is indicated if the project is fully completed and the exact contribution of project owners is known

14 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

7.000 6.406

6.000

5.000

4.000 3.109 2.453 3.000 2.351 2.349 2.359

2.000 0.838 0.544 1.000 0.482 0.302

0.000 Riga Vidzeme Kurzeme Latgale Zemgale

Approved ERDF financing ERDF repayments

Figure 17. Acquisition of ERDF financing, 2006, million LVL

ERDF repayments in Vidzeme planning region reached 2.453 million lats, in Latgale planning region – 0.838 million lats, in Zemgale – 0.544 million lats, in Riga – 0.482 million lats and Kurzeme planning region – 0.302 lats (Figure 17).

INVESTMENTS IN THE DEVELOPMENT Of Waste Management System

In 2006 with the support of the European Union funds – the Cohesion Fund and the European Regional Development Fund, projects were implemented in the amount of 8.227 million lats, 3.183 million lats of which was the Cohesion Fund financing and the ERDF financing – 0.241 million lats*. Distribution of investments by planning regions, implementing the EU co-financed projects, is shown in Figure 18.

3.4% 9.8% 71.8% 7.3%

7.7%

Riga Vidzeme Kurzeme Zemgale Latgale

Figure 18. Total investments in the development of waste management system by planning regions, implementing projects co-financed by the EU, 2006, %

* The ERDF repayments in 2006.

15 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

Most of the financing was invested in Latgale planning region – 5.909 million lats, Vidzeme planning region – 0.809 million lats, Zemgale – 0.631 million lats, Kurzeme – 0.599 million lats and Riga planning region – 0.279 million lats. In Zemgale planning region investments were allocated for the construction of the hazardous waste landfill, but in other planning reģions financing was invested in municipal waste management, including in the remediation of non-compliant dump sites. Total investments in the development of waste management system per inhabitant in Latgale planning region – 16.3 lats, Vidzeme – 3.3 lats, Zemgale – 2.2 lats, Kurzeme – 1.9 lats and in Riga planning region – 0.3 lats (Figure 19).

18.0 16.3

16.0

14.0

12.0

10.0

8.0

6.0 3.3 2.2 4.0 1.9 0.3 2.0

0.0 Riga Vidzeme Kurzeme Zemgale Latgale

Figure 19. Investments per inhabitant in the development of waste management system by planning regions, implementing projects co-financed by the EU, 2006, LVL

In 2006 the Environmental Protection Fund supported development of waste management system by approving financing for implementation of projects in the amount of 0.935 million lats, of which 0.81 million lats were allocated to hazardous waste management. The Fund supported establishment of separated collection system, remediation of non-compliant dump sites by approving financing to cover rise in prices of the projects co-financed under the ERDF national programme, as well as for elimination of hazardous waste collected in situations caused by accidents and for elimination of non-liquid pesticides.

In 2006 the European Commission approved co-financing from the Cohesion Fund in the amount of 0.341 million lats for municipal solid waste management in North Vidzeme region, II stage of the project. In 2006 one dump site remediation project was included in the national programme “Remediation of Non-compliant Dump Sites”, with the approved ERDF co-financing in the amount of 0.278 million lats. In order to attract the ERDF co-financing, in 2006 the open tender – “Establishment of Separated Waste Collection Points” was announced, which resulted in 8 projects in 14 municipalities. For implementation of these projects, the ERDF co-financing was approved in the amount of 1.318 million lats.

16 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

Implementation of the projects co-financed by the Cohesion Fund In 2006, in the field of waste management seven waste management projects supported by the Cohesion Fund were either continued or commenced, of which six municipal waste management projects were implemented in five municipal waste management (MWM) regions – North Vidzeme, Liepāja, East Latgale, South Latgale and Maliena MWM regions, that comprises 33% of inhabitants of Latvia and covers 53% of the state territory. The hazardous waste landfill construction project was commenced as well. For the implementation of these projects 7.904 million lats were invested, of which the Cohesion Fund financing was 3.183 million lats, state budget were 1.215 million lats and resources of investment project owners – 3.507 million lats (Figure 20). In the development of municipal waste management system 7.273 million lats were invested, in the hazardous waste management – 0.631 million lats.

1.215 State budget

Cohesion Fund 3.183 co-financing

Financial means of investment project 3.507 owners

0.000 0.500 1.000 1.500 2.000 2.500 3.000 3.500 4.000

Figure 20. Investments in the projects co-financed by the Cohesion Fund, 2006, million VLL

In the frames of the project for North Vidzeme region landfill “Daibe”, II stage leachate treatment equipment was delivered and installed, in the frames of South Latgale and East Latgale MWM projects 36 dump sites were remediated in the area of ~ 42 ha, in the frames of South Latgale MWM project 26 dump sites in the area of ~31 ha and in East Latgale MWM project 10 dump sites in the area of ~ 11 ha respectively.

1.4% 8.3% 74.8% 7.6%

8.0%

Riga Vidzeme Kurzeme Zemgale Latgale

Figure 21. Total distribution of investments by planning regions, implementing projects co-financed by the Cohesion Fund, 2006, % 17 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

Within the Cohesion Fund co-financed projects in the development of waste management system most financing was invested in Latgale planning region – 5.909 million lats, in Vidzeme planning region – 0.655 million lats, in Kurzeme – 0.599 million lats, in Zemgale – 0.631 million lats and in Riga planning region – 0.110 lats (Figure 21).

During implementation of municipal waste management projects, financing was invested in four planning regions – Riga planning region, Vidzeme, Kurzeme and Latgale planning region. Most of the financing in municipal waste management under the projects co-financed by the Cohesion Fund was invested in Latgale planning region and least financing was invested in Riga planning region – 21% of investments in the North Vidzeme MWM regional project. Respectively, most of the financing per inhabitant, i.e., 16.3 lats was invested in Latgale planning region, in Vidzeme – 2.7 lats, in Kurzeme – 1.9 lats, and in Riga planning region – 0.1 lats, (Table 4).

Investments, Investments per Planning region million LVL inhabitant, LVL Riga planning region 0.110 0.10 Vidzeme planning region 0.655 2.70 Kurzeme planning region 0.599 1.90 Latgale planning region 5.909 16.30

Table 4. Investments by planning regions, implementing municipal waste management projects co- financed by the Cohesion Fund

Implementation of ERDF co-financed projects Within the national programme “Remediation of Non-compliant Dump Sites” 16 dump sites were remediated in the area of ~ 16 ha in 2006, i.e., 43% of the planned amount. In Riga planning region 13 out of 25 dump sites included in the National programme were remediated, in Vidzeme planning region – 3 out of 22 dump sites included in the national programme. Remediation under this programme shall be continued in 20 non-compliant municipal solid waste dump sites.

3.086 3.500

3.000

2.500 1.982

2.000 1.104 1.500

1.000 0.241 0.115 0.126 0.500

0.000 Vidzeme Riga In total

Approved ERDF financing ERDF repayments

Figure 22. Acquisition of ERDF financing, 2006, million LVL

18 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

In total for the implementation of the national programme, i.e., for remediation of 47 non-compliant dump sites financing from the ERDF was approved in the amount of 3.085 million lats. Till the end of 2006 the ERDF repayments amounted to 0.241 million lats or 7.8% of the approved financing. In Vidzeme planning region the ERDF repayments were 0.115 million lats, i.e, 10.4%, in Riga planning region – 0.126 million lats or 6.4% (Figure 22).

Investments in NATURE Protection

In 2006 nature protection projects were implemented with the financial support of the European Regional Development Fund, the LIFE programme, the European Community initiative – INTERREG and the Latvian Environmental Protection Fund.

In 2006 within the programme “LIFE-Nature” the European Commission allocated financing for 2 nature protection projects in the amount of 0.809 million euro. Financing was allocated for the projects “Renewal of Biological Diversity in the Military Site and Natura 2000 territory “Ādaži”” (0.452 million euro) and “Improvement of Biotope Management in the Natura 2000 Territory – Vestiena Protected Landscape Countryside” (0.357million euro).

The Environmental Protection Fund supported nature protection measures by allocating financing for fish protection, implementation of management plans for protected areas and improvement of administrative capacity of nature protection institutions according to the conditions of the project guidelines “Nature Protection and Biological Diversity”. In the frames of the project guidelines “Nature Protection and Biological Diversity” 39 projects were supported and compensations were paid out for damages caused by migrating non-game birds. In total projects in the amount of 0.529 million lats were supported, of which 0.140 million lats were paid out in compensations for damages caused by migrating non-game birds.

The Environmental Protection Fund allocated financing in the amount of 0.96 million lats for Nature Protection Board, Gauja National Park Administration, Ķemeri National Park Administration, Slītere National Park Administration, Teichi Nature Reserve Administration, North Vidzeme Biosphere Reserve Administration, state agency ”National Botanic Garden”, state agency “Latvian Nature Museum” for preservation of plant species collections and fixed collections, implementation of management plans and improvement of administrative capacity for nature protection institutions, as well as for fish protection measures. In total 1.489 million lats were allocated fromthe LEPF resources for nature protection and preservation of biological diversity, excepting educational and publishing measures.

Implementation of the ERDF co-financed projects 5 of 7 projects included in the ERDF National programme “Development of Eco-tourism Infrastructure in the Potential Natura 2000 Territories” have been already implemented. With the ERDF support the administration building “Meža māja” of Ķemeri National Park

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was reconstructed, where an information centre and a nature school were established, the former Embūte mansion building was reconstructed (430 m2), an information point and accommodation place were established and furnished in Teichi Nature Reserve (583m2), a visitor centre and environmental inquiry zone were established in Krustkalni Nature Reserve (0.6 ha) near the administration building of Teichi Nature Reserve, 5 parking lots were facilitated, 9 eco-tourism routes were equipped with signs and information boards, panoramic perspectives were improved in the territory of 16.3 ha, panoramic towers were constructed in Krustkalni Nature Reserve and in the specially protected nature territory “The Venta Valley” in Kuldīga, a crossing over the Venta was constructed.

For implementation of projects 2.371 million lats were available from the ERDF. Till the end of 2006 the ERDF repayments were 0.201 million lats or 8.5% of the available ERDF financing, besides, financing requests were submitted, but not paid yet in the amount of 0.308 million lats or 13% of the available ERDF financing. In total repayments already done and financing requests submitted totalled up to 21.5% of the available ERDF financing (Figure 23) since in several projects co-financed by the ERDF repayment is foreseen after the project is completed.

8.5% 78.5% 13.0%

ERDF repayments Submitted financing requests Financing requests not submitted

Figure 23. Realisation of the ERDF financing, %

Implementation of LIFE co-financed projects In 2006 under the LIFE programme 8 nature protection projects were implemented – “Protection of Wetlands in Kemeri National Park”, “Environmental Management of the Lubāns Wetland Complex”, “Restoration of Latvian Floodplain Meadows for Protection of EU Priority Species and Biotopes”, “Implementation of the Mire Habitat Management Plan in Latvia”, “Protection and Management of the Northern Gauja Valley”, “Pape Lake – Protection and Development”, “The Protected Sea Territories in the Eastern Part of the Baltic Sea”, “Protection and Management of Coastal Habitats in Latvia”.

For protection of wetlands in Ķemeri National Park, reconstruction of Starpiņupe floodgate was completed, 1.4 km of the former sandpit road dam were renewed and

20 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

three smaller dams with culverts (in the length of 40, 40 and 60 m), 61 peat dams on melioration ditches were built. In Dunduri meadows near the renewed Slampe river a view-tower was constructed with a platform at the height of 5.5 m, the Kaņieris artificial islands were re-built, vegetation survey was performed in the sample-yards in meadows and preliminary survey was carried out in Ķemeri moorland.

Within the project “Environmental Management of the Lubāns Wetland Complex” a technical design was elaborated for construction of a culvert-regulator on the Pededze channel connection with Vecpededze, a hydro-point has been reconstructed in Kalngals, fish migration channels established in Lake Lubāns, a dam has been constructed on the Sala swamp bypass channel and 9 wooden dams in the Klajotne swamp. Duck nesting islands have been cleared from bushes in Orenīši ponds in the area of 5 ha. Monitoring on improvement of water bird nesting conditions was carried out, as well as monitoring of klānu meadow management and monitoring of high and transitional swamp hydrological condition restoration. A brochure was published – “Protection of Natural Values in the Lubāns Wetland Complex”.

In order to encourage restoration of floodplain meadows for preservation of the European Union species and biotopes, nature management plans were developed for the territories such as “Pededze Lower Reaches”, “Burga Meadows”, “Seda Swamp”, “Rūja Floodplain”, “Lielupe Floodplain Meadows”, “Svēte Floodplain”, “Raķupe Valley” and “Durbe Lake Meadows”. Till the end of 2006 contracts were signed for restoration of 3,795 ha of floodplain meadows, works were fully completed in the area of 1,942 ha. Land owners were educated on organisation of nature friendly eco-tourism in the specially protected nature territories, four informative brochures were published – “Natura 2000 Territories Near Lake Burtnieks”, “Upper Reaches of the Užava”, “Dviete Floodplain”, “Sita and Pededze Floodplain of Mugurve Meadow”, nine information boards were erected in nature, that popularize the idea of nature protection and inform about the natural values of the territory and nature friendly ways of management. In the frames of the project “Restoration of Floodplain Meadows for the European Union Species and Biotopes” analysis of legal acts was carried out as well, recommendations were elaborated for improvement of the basis of legal acts for restoration and management of floodplain meadows.

Within implementation of the mire habitat management plan, swamp management measures were commenced for Cena mooreland, Stikli swamps, Klāņu swamp and Veseta flood-land swamp. In Cena mooreland 180 peat dams and smaller dams were constructed, a swamp plank-way was completed. Forest management was carried out in 4 existing and perspective wood grouse mating-places at Stikli and Klāņi swamp nature reserves. In the regular observation places of the overgrowing part of Veseta flood-land swamp bushes were hewn out in order to detain overgrowing of the swamp by birch-trees and reeds. Hydrologic investigations were continued, which indicated that after construction of the dams in Cena moorland immediate improvement of hydrologic regime was observed. Brochures were elaborated on values of Cena moorland and Klāņi swamp, swamp development process, species and biotopes, impacts on swamps and swamp management measures and a swamp guide on swamp biotopes and species was published as well.

21 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

In the frames of the project “The Northern Gauja Valley Protection and Management” 25 microreserves were established in the area of 44 ha. For grassland renewal in Valka and Zvārtava parishes 2 new grassland management sample territories were established, in Vireši and Gaujiena parishes establishment of two nature pathways was commenced. In total till the end of 2006 there were 270 ha of grassland biotopes renewed; forest management measures were carried out in the area of ~ 300 ha, and dams were established on melioration ditches as well in order to ensure the necessary hydrologic regime in two wood grouse mating-places. Seminars took place in order to inform the society on forest and meadow biotope management; shooting of the film was finished on the protected landscape countryside “The Northern Gauja”.

A management plan was elaborated for Pape Nature Park, which was given to municipalities for confirmation, meadow pasture efficiency was studied, bird nesting places were inspected in the park and elaboration of guidelines for nesting bird monitoring programme was commenced. A bird observation tower was constructed in Priediengals, Pape village, and seven new resting-places were established. Elaboration of a technical design was commenced for culvert restoration on Paurupe, Līgupe and Pape channels. In order to reduce overgrowing of Pape Lake and to encourage water exchange in the lake, as well as to restore appropriate habitats for nesting and migrating birds, 100 ha of reeds were mown down. The big herbivorous animal pastureland was managed in the Pape polder territory and in the east part of the lake. At present 31 horses and 41 wild oxen live in the park territory, whose total pastureland area comprises approximately 426 ha.

Within the Project “The Protected Sea Territories in the Eastern Part of the Baltic Sea” for the territories where management plans would be developed, guidelines for evaluation of species and biotopes, a concept for development management plans and Access data base structure were elaborated. For development of management plans stocktaking and threat evaluation was carried out. Samples of benthos were gathered and stocktaking of fish population was completed in Irbe strait, stocktaking of warm water ichthyo-cenosis was performed and samples of benthos were gathered in Nida- Pērkone territory, along with warm water ichthyo-cenosis stocktaking, autumn water birds were counted in Riga Bay west seacoast, in Ainaži-Tūja territory autumn water birds were counted as well. For bird stocktaking the necessary inventory was acquired. Work was commenced on analyses of pollution impact assessment; first data were obtained on bird species perished in by-catch, and modelling of sediment flow thrown out in sea dump sites was commenced as well.

The project “Protection and Management of Coastal Habitats in Latvia” was implemented. The coastal habitats map and functional zoning was completed, plicate rose was hewn out at Ziemupe restricted area in the area of 20 ha, stockyard of 5.5 ha and a shelter were set up at Daugavgrīva restricted area where one cow with a calf (Highlander) and one bull (Galloway) were let in, 21 ha of Randu meadows were managed which would be continued in cooperation with Salacgriva municipality. Large-scale society information measures were carried out – 64 information boards were erected in places where the territory was improved for protection of European significance biotopes against the

22 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

ill-disposed visitor impact, and 136 boards with information on biotopes of European significance as well as 400 signs “Natura 2000 – Protected Nature Territory of European Significance” were put up. Within the project 20 information sheets were issued, e.g., “Pāvilosta – the City of Grey Dunes”, “Užava Nature Reserve”, “Biotopes of the Natura 2000 Seacoast Places”, “Coastal Birds”, “North Vidzeme Seacoast”, “Unknown species at the seacoast” etc., 7 brochures were published and 2 films were shot.

Implementation of INTERREG co-financed projects In 2006, 3 nature protection projects were implemented with the support of INTERREG – “Seacoast Sustainability as a Challenge”, “The North Livonia Coastal Region Initiative for the Transboundary Socio-Economic Development” and “Tuned Management and Monitoring of the Transboundary Protected Areas in North-Livonia as a Support for Local Development”. For the implementation of the European Community initiative INTERREG projects in total 30 525 lats were invested, of which the state budget financing was 26 693 lats, the EU financing – 3 832 lats.

In the frames of the project “Seacoast Sustainability as a Challenge” 15 seminars took place with the aim to establish a non-governmental support system for the environmental management in North Vidzeme biosphere reserve, 18 environmental guides were trained, in order to gain experience 3 experience exchange trips to Hiuma and Vilsande in Estonia and in Wadensee in Germany were organised. A building of the Salaca river basin biologic diversity centre was renovated. In North Livonia seacoast region an eco- tourism pathway was constructed in Janīšu-Dainas swamp, regional tourism portal was improved, informative material on the region was prepared as well. In its turn, in the frames of the project “Tuned Management and Monitoring of the Transboundary Protected Areas in North-Livonia as a Support for Local Development” an international seminar was organised in Estonia on animal rehabilitation issues and rehabilitation centres in Nigula and Keila were visited.

In North Vidzeme Biosphere Reserve a project financed by the UN Development Programme (UNDP/GEF) was implemented – “Protection of Biological Diversity in North Vidzeme Biosphere Reserve”. First micro-grant projects were commenced within the project in 2006. The tourism infrastructure project in Burtnieki and Randi meadows was completed, a tower and a pathway were constructed, mowing works were performed in Burtnieki Lake, approximately 10 ha of salmon-type fish spawning place was restored in the Salaca, elaboration of an ecologic landscape plan in the biosphere reserve was commenced.

INVESTMENTS IN THE Radiation Safety

In 2006 the Environmental Protection Fund allocated 0.2 million lats for the implementation of the Project “Development of the Feasibility Study and Preliminary Design for the Construction of the National Cyclotron and Radionuclide Production Unit in the Territory of Salaspils Nuclear Reactor” under the environmental investment sub-programme “Protection Against Ionising Radiation and Nuclear Safety”. A preliminary design, recommended as the bases for the elaboration of the technical

23 REPORT ON ENVIRONMENTAL INVESTMENTS 2006

design was elaborated in the framework of the project, a concept for establishment of a National Cyclotron centre was elaborated and approved under the order No.668 of the Cabinet of Ministers of the Republic of Latvia, a feasibility appraisal was carried out in order to select the form of public-private partnership, selection criteria for cyclotron suppliers were developed and elaboration of the concession assignment conditions was commenced.

An agreement was concluded with the company “Majak” from the Russian Federation regarding commencement of preparatory works for transportation of spent nuclear fuel to the Russian Federation. While implementing projects concerning the improvement of radiation safety and nuclear safety, as well as increasing the institutional capacity of the Hazardous Waste Management State Agency, in 2006 the project “Management of Radioactive Waste and Dismantling of the Reactor” financed by the EU Transition Facility programme was continued, which would result in the increased capacity of the Hazardous Waste Management Agency and strengthened management of radioactive waste, as well as encouraged dismantling of Salaspils Nuclear Reactor.

0.231 0.850

0.130

EU Transition Facility IAEA USA Energy Department

Figure 24. International assistance in the radiation safety field, 2006, million LVL

In 2006 Latvia attracted financing in the amount of 1.211 million lats from the foreign cooperation partners in the radiation safety field. Allocation of financing was approved by the International Atomic Energy Agency (0.130 million lats), the European Union (0.231 million lats), and the USA Energy Department (0.85 million lats) (Figure 24).