ReportNo. 12238-UA Ukraine Suggested Priorities for Environmental Protection and Natural Resource Public Disclosure Authorized ltvOAnagement (In TwoVolumes) Volume I Main Report June15, 1994 NaturalRe.urce Managem-ntDivision CountryDepartment IV Europeand CentralAsia Region FOR OFFICIAL USEONLY Public Disclosure Authorized Public Disclosure Authorized MICROGRAPHICS Report No: 12238 UA Type: SEC Documentof theWorld Bank Public Disclosure Authorized Thisdocument has a restricteddistribution and may be usedby recipients only in theperformance of theirofficial duties. Its contentsmay not otherwise be disclosedwithout World Bankauthorization CURRENCY EQUIVALENTSAND ACRONYMS Currency unit = Karbovanets, abbrev. krb US$1 = 47,000 krb (as of June 1', 1994) Rbl = 7 krb (as of June 6, 1994) WEIGHTS AND MEASURES b Billion person- 1 person receiving 1 rem, or 10 people bcm billion n3 rem receiving 0.1 rem, or 1,000 people Bq becquerel : decay of one nucleus per second receiving 0 C I rem cm centimeter PMIO Particulate matter below 10 microns Ci curie (3.7 x 10' Bq) ppm Part per millior GJ Gigajoule (0.948 x 106 Btu rem Roentgen equivalent man: the amount of or 238.8 x 103 kcal) ionizing radiation equivalent to biological effect GW Gigawatt of one roentgen of x or gamma rays ha Hectare(s) 1 rem = I mSv kcal Kilocalorie (3.968 Btu) Sv Siwvert (mSv = millisivert) : international kg Kilogram (2.2046 Ibs) measure of the biological equivalent of an km2 Square kilometer absorbed dose of radiation. m Meter I Sv = 100 rem m3 Cubic meter (35.3147 cubic feet) t Ton (metric) mg Milligram tpa Tons per annum MW Megawatt toe Ton of oil equivalent MWh Megawatt hour (860 x 103 kcal) (= 10 million kcal = 39.68 million Btu) ng Nanogram &g Microgram CHEMICALCOMPOUNDS AND TECHNICALTERMS AIP3 Aluminum fluoride NO, Nitrogen oxide BAP Benzo-a-pyrene 03 Ozone BOD Biochemical oxygen demand ODS Ozone Depleting Substances (BODs = over a 5 day period) PAH Polycyclic aromatic hydrocarbons Cd Cadmium Pb Lead Ce137 Cesium 137 pH Logarithmic indicator of acidity or alkalinity CFCs Chlorofluorocarbons Pu'39 Plutonium 239 cO Carbon monoxide so2 Sulfur dioxide CO2 Carson dioxide Sr9W Strontium 90 Cu Copper TSP Total Suspended Particles Hg Mercury VOCs Volatile Organic Compounds N Nitrogen Zn Zinc ABBREVIATIONS ANO)ACRONYMS CAC Command and Control MAC Maximum Acceptable Concentration CEE Central and Eastern Europe MAD Maximum Acceptable Discharge DPRA Department of Protected and MAE Maximum Acceptable Emissions Recreadienal Areas (MEl) MB Market Based EC European Community MEP Ministry for Environmental Protection ELA Environmental Impact Assessments MFO Ministry of Forestry ESP Electrostatic Precipitators MOA Ministry of Agriculture FGD Flue Gas Desulphurization MOH Ministry of Health FSU Former Soviet Union MOI Ministry of Industry GDP Gross Domestic Product NGO Non-Governmenxl Organization GEF Global Environmental Facility SPZ Sanitary Protection Zone Hydr6met Hydrometeorological Service UNCED UN Conference on Environment and IUCN Intetnational Union for Conservation Development of NAture and Natural Resources WHO World Health Organization FOR OFFICIAL USE ONLY TABLE OF CONTENTS EXECUTIVTE SUNIMARY. .... ... ............ ....... I. INTRODUCTION AND BACKGROUND ON UKRAINE ..- 1 A. Background . .......... ... ...... 1-1 B. The Difficuilt FCo(1nomiC Transition . 1-2 C. Background oni Health ...... ............... ........ ... I-51.... D. Practical Principles to Consider in Setting Environmental Policy ............... 1-6 E. Overview of Subsequent Chapters ........... .... 1-7 II. BACKGROUND ON POLLUTION PROBLENIS ......................... 11-l A. Urban Air Pollution ......................................... 11-1 B. Regional and Transboundar) Air Pollution Issues . II-8 C. Water Quality Issues ........................................ II-9 D. Priorities for Drinking Water and Wastewater Treatment ...... ...... 11-21 E. Hazardous and Solid Waste Management ...... I-27 F. Other Potential Hazards ..... 11-29 G. Suggested Priorities ....... ............ ................... II-31 III. BUILDING THE INSTITUTIONAL AND REGULATORYFRAMEWORK ... 111-1 A. The Legislative Mandate .. III-1 B. Institutional Issues and Needs .. III-3 C. Regulatory Instruments: Standards, Permits and Pollution Fees .. 111-13 D. The Enforcement Dilemma ................................... 111-18 E. Role of EIA ......................... III-20 F. Public Participation and Environmental Education. 111-22 G. Financing Mechanisms for Environmental Investments .. 111-24 IV. STRENGTHENING AIR AND WATER REGULATORY PROGRAMS .. IV-1 A. Suggested Changes in the Air Quality Regulatory Program .. IV-1 B. Proposed Changes in the Water Quality Regulatory Program .. IV-12 C. Short Term Action Plans and Long Term Compliance Programs .. IV-17 V. ADDRESSING ENVAIRONMENTALPROBLEMS IN INDUSTRY . .. V-1 A. Background on the Industrial Sector .. V-1 B. Opportunities from the Economic Transition and Privatization .. V-2 C. Environmental Liability and Privatization .. V-4 D. Issues in The Metallurgical Industry .. V-9 E. Issues in the Chemical Industry .. V-20 VI. ADDRESSING ENVIRONMENTAL PROBLEMS IN THE ENERGY SECTOR .... VI-1 A. Issues in the Electric Power Industry: Investment M. -- s and Nuclear Power Safety .. VI-1 B. Air Pollution From Thermal Power Plants .. VI-5 C. Environmental Problems Related to Coal Production and Use ......... ..... VI-15 D. Environmental Considerations in Oil Refining .. VI-20 This documenthas a restricteddistribution and maybe usedby recipientsonly in theperformance of their officialduties. Its contentsmay not otherwise be disclosedwithout World Bank authorization. 4 VII. MAINAGINGTHE LEGACY OF CHERNOBYL ........................ Vll-1 A. OutstandingProblems at Unit 4 and in the 30 km Zone ................. V11-2 B. The Likely Long-TermHealth Impact .. .................... ...... VII-5 C. Resettlement,Agricultural Measures and Food Control ................. VII-12 D. Compensation .......................................... VIf-18 E. RecommendedFollow Up ActionsOutside the 30 Km Zone .... .......... VII-20 VIII. 'CONSERVINGRENEWABLE RESOURCES AND PROTECTING BIOLOGICAL DIVERSITY ...................... VIII-I A. Agriculture . ............................................ VIII-I B. Forestry . ............................................. VIII-10 C. The Protected Area Network ................................. VIII-15 D. Game Management ....................................... Vi11-26 IX. MEETINGINTERNATIONAL OBLIGATIONS ....................... IX-1 A. Overviewof RecentAgreements ................................. IX-1 B. European Protocolson TransboundaryPollution ....................... IX-2 C. Commitments Under the Montreal Protocol. .............. ............ IX-3 D. Reductionof CO2 and MethaneEmissions ........................... IX-7 X. SHORTTO MEDIUMTERM PRIORITIES...................... ..... X-1 MAPS 1 Sites of Industrial and Energy-RelatedPollution, IBRD 24250 2 Major ProtectedAreas, IBRD 24249 ANNEXES I Recommendationsfor TechnicalAssistance 2 General Information: PopulationDensity, Sourcesof Law, Energy Intensity And Data On Hazardousand General Air Pollutants 3 Overviewof PollutionProblems in SelectedOblasts, Cities and Plants 4 Data on the Steel and Chemical Industries 5 Data on the Electric Power Industry and Recommendationsfor Four Thermal Powc Plants 6 ProtectedAreas: Descriptionsand Related Information 7 Overviewof Water Quality Monitoring 8 Managementof Complex Air Quality Problems 9 SelectedInformation on US and EC Standards Acknowledgements This study is a result of the cooperativeefforts of Ukrainianand World Bankstaff, aided by environmentalauthorities and technicalexperts from several countries. The task managerfor the Bank was KathleenStephenson, and contributorsincluded: Don Theiler, Jack Broadbentand Lars Moseholm(air quality); Erik Borset, Howard Carter, and Eugene Stakhiv(water quality and wastewatertreatment); Roman Pyrih and Ray Pilcher (hazardouswaste); Al Hubbard (thermalpower industry);Nick Korens (chemicalindustry); Jean Raguin (steel indu,try); John Pesek (agriculture); Andrew Bond and Steve Berwick(biodiversity protection and nature reserve management);Anil Markandya(environmental economics); Jonathan Lash and Tatiana Zaharchenko(legislative and legal aspects); Tom Kearney, Ian Simm and Seth Rosen (institutionalneeds); Drs. Dan Hryhorczukand Barry Levy (epidemiologyand occupationalhealth); Dr. Terry Anderson(radiation epidemiology); and Bjorn Larsen and Bilal Rahill (issivesconcerning international agreements). Messrs. Ron Hoffer and Tom Pace of the US EnvironmentalProtection Agency (USEPA) kindly joined in the study missionsand contributedto water and air quality sectionsof the report. John Palmisanoprovided informationon market-basedregulatory approaches. E & E Corporationprovided additional commentson steel industryaspects. Anna Skliarenkoand Galina Voitsekhovskaya(World Bank Resident Mission)provided crucial support for the team visits. The study team would like to thank the former and current Ministersfor Environmental Protection,Yuri Scherbakand Yuri Kostenko,for their kind cooperationand that of their staff in the Ministry for EnvironmentalProtection (MEP). Specialthanks go to -iose staff who contributed heavilyto the swdy and participatedin related site visits: Vera Davydok, Sergei Michailov,Valeriy Osyka, Galina Shimanska,Natalya Simagina, Valeriy Sirenko, and Mikola Stetsenko. Many others at the local MEP brancheswere extremelyhelpful. They includethe managersand