Environment in emerging and transition economies

Handbook for Appraisal of Environmental Projects Financed by Public Funds


The EAP Task Force has launched a new project on developing a Handbook for Appraisal of Environmental Projects Financed by Public Funds.

Objectives: The main objective of the Handbook is to provide domestic institutions managing public environmental expenditure in the CEE/NIS regions with practical guidance and tools for identification, appraisal, and financing of priority environmental investment projects. The project aims to extract the best available tools and practices by using hands-on expertise of internationally-recognized government authorities and implementing financing agencies. The project does not intend to deliver a complete, "ready-to-use" toolkit that could be directly applied by any environmental financing institution. Its intention rather is to provide a structure and a check-list for doing things right.

Target Audience: Apart from aiming to help managers of public environmental expenditure with the appraisal of environmental investment projects, the project also aims to provide Governments, and Ministries of Environment, in particular, with the right framework for designing public environmental expenditure programs and for supervising implementing agencies. Managers of technical assistance programs could also find this Handbook useful in designing and implementing institutional strengthening and training projects in the field of managing public environmental expenditure.

The Handbook will focus on appraising investment projects in the wastewater collection and treatment sector. It will not deal with project preparation and development. In addition, the Handbook will be supported by relevant software.

Implementation Issues: The project will be implemented through a co-operative effort of a team of international experts with practical experience in project appraisal and selection mainly from the CEE region. The project partners include representatives of the Polish National Fund for Environmental Protection and Water Management, the Polish EcoFund, the Slovenian Environmental Development Fund and the Austrian Federal Ministry of Agriculture, Forestry, Environment and Water Management.

The project is financially supported by the Governments of Austria and the United Kingdom. It will be managed by and implemented within the framework of the OECD EAP Task Force. The Handbook will be presented at the Kyiv "Environment for Europe" Ministerial Conference which will take place in May 2003.

Kick-off Project Workshop: The first, kick-off, expert meeting for launching the project was held on 26-27 September 2002 in Vienna, Austria. It was hosted by the Federal Ministry of Agriculture, Forestry, Environment and Water Management of Austria and Kommunalkredit Austria, AG.

The project partners discussed and agreed on the general scope, structure and the key building blocks of the Handbook (programming, project appraisal, implementation and post-implementation monitoring). The key characteristics of good practice for each stage of the appraisal cycle were discussed and the relevant practical experience of different countries and institutions was identified.

The first draft of the Handbook is expected to be ready at the end of 2002 and it will be discussed at a further expert meeting as well as at the next meeting of the NIS Environmental Finance Network in spring 2003.

Above Abstract in Russian

Vienna Meeting Documentations:

1. Terms of Reference for the Preparation of a Handbook for Appraisal of Environmental Projects Financed from Public Funds, 48K PDF (English)
2. Final Agenda - Venna meeting, 41K PDF (English)
3. List of Participants - Vienna meeting, 8K PDF (English)

Vienna Meeting Presentations:

1. OECD: Handbook for Appraisal of Environmental Projects Financed from Public Funds - Objectives, Scope and Structure, 43K PDF (English)
2. Austrian Ministry of Environment: Comments on the Handbook Structure, 428K PDF (English)
Polish EcoFund: Setting Multi-Year Priorities and Objectives, 83K PDF (English)
4. Polish National Fund: Programming and Setting of Rules of the Expenditure Programme, 94K PDF (English)
5. Slovenian Environmental Development Fund: Revenue Forecasting and Financial Planning in the Budget Cycle, 2.5Mo PDF (English)
6. Polish EcoFund: Project Identification - Water Protection Programmes, 111K PDF (English)
7. Austrian Ministry of Environment: Principles and Procedures for Outsourcing Selected Services to External Agents, 456K PDF (English)
8. Polish EcoFund: Project Cycle Framework, 172K PDF (English)
9. Polish EcoFund: Project Identification, 85K PDF (English)
10. Polish EcoFund: Project Preparation and Processing of Applications, 165K PDF (English)
Polish EcoFund: Eligibility Screening (Pre-Appraisal Stage), 129K PDF (English)
12. Kommunalkredit Austria AG, 2Mo PDF (English)
13. Kommunalkredit: Full Appraisal Process - Wastewater Management - Application Form, 1.4Mo PDF (English)
14. Polish National Fund: Appraisal Process 112K PDF (English)
15. Kommunalkredit: Full Project Appraisal - Appraisal Criteria and Ranking of Projects, 1.4Mo PDF (English)
16. Polish EcoFund: Project Appraisal and Comparison Criteria - Water Protection Projects, 121K PDF (English)
17. Austrian Ministry of Environment: Choice of the Form and Terms of Financing (Rate of Assistance), 350K PDF (English)
18. Polish National Fund: Selection of Projects for Financing and Financial Transfers, 16K PDF (English)
19. Slovenian Environmental Development Fund: Cash-Flow and Loan Portfolio Management, 2.7Mo PDF (English)
20. Polish EcoFund: Project Implementation and Post-Implementation Monitoring, 123K PDF (English)

For more information on the project, please contact :
Nelly Petkova (nelly.petkova@oecd.org)