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USAID/Lithuania Environment Program Review

By Giedra Gureviciute

U.S. Agency for International Development
Vilnius, Lithuania
May 2000

 

Table of Contents

  1. Introduction
  2. Environment Program
    1. Environmental Assessment, Monitoring, and Public Awareness
    2. Environmental Economics and Policy Project
    3. Environmental Action Program Support Project
    4. Environmental Improvements Waste Minimization Program
  3. Regional post-presence activities;
    1. EcoLinks
    2. Great Lakes/Baltic Sea Partnership
    3. Environmental Security
  4. Legacy of the program

  5. Acronyms
    References

 

I. INTRODUCTION

Lithuania's historic revolution in 1990 captured worldwide attention and inspired people everywhere. To support this revolution, the U.S. Government provided financial resources to assist Lithuania's transition to a democratic society and market-oriented economy. Today, the people of Lithuania and the United States are partners in building Lithuania's free-market economy and developing a democratic society prepared to meet the challenges of the 21st century.

This transition, however, has not been easy. Serious obstacles challenged Lithuania's desires to move to a market economy and reestablish a democratic form of government. With independence, Lithuania had to address issues ranging from creating ministries and governmental machinery to re-establishing the rule to law to privatizing state-owned enterprises. The new Government needed to focus on nuclear energy safety and reduce the effects of years of pollution and disregard for environmental health.

The United States Agency for International Development (USAID) has played a major role in the economic, political and social development of Lithuania since 1992. Initially, USAID’s program of activities was broad-based and designed to affect many segments of the transforming society. More than 55 projects were undertaken in ten strategic areas. Among other activities, USAID strengthened the energy sector by improving environmental regulation and reducing environmental hazards. USAID’s environmental projects provided examples of economically sound investments, and at the same time reduced industrial pollution.

In 1996, USAID reviewed the progress achieved and decided to sharpen the focus of its program. In partnership with the Lithuanian Government, Parliament, representatives of the business sector, and non-governmental leaders, USAID prepared a four-tiered strategy to: 1) strengthen fiscal and monetary reforms, 2) forge a more stable financial environment, 3) improve policy for sustained private sector growth, and 4) promote the development of civil society and non-governmental organizations. USAID also supported enterprise development and improved regional cooperation in environmental monitoring as special initiatives.

The Soviet legacy of pollution has left an ugly mark in the Baltic States. However, Lithuania has made much progress in environmental protection during the years since independence. This is especially true in the areas of pollution reduction, environmental management, environmental policy and legislation. An environmental protection program was one of the first USAID activities in Lithuania. It helped the country strengthen its environmental management and institutional capacity.

Lithuania was the first country in the former Soviet Union to declare its independence in 1990. Despite its earlier start, Lithuania has enjoyed less economic success as measured by GDP per capita than its Baltic neighbors, in part because outdated, inefficient industries represented Lithuania’s largest economic sector. During the period 1989-1994, production in Lithuania is estimated to have declined by 61 percent. Some signs of economic recovery began in 1995. As the Government of Lithuania wrestled with severe economic dislocation associated with economic reform, environmental priorities especially those requiring domestic investment were relegated to the background.

While the economic recession led to a general reduction in pollution from industrial production sources, Lithuania’s pollution problems remained serious, with both domestic and international consequences, particularly in respect of wastewater discharge in the Baltic Sea. An assessment of major environmental problems in 1995 noted the following:

Water Pollution: with only 30 percent of the wastewater discharges coming from industry, water pollution was not significantly influenced by the recession. surface water is polluted with nitrogen and phosphorus, heavy metals, oil products and phenol. in 1993, only 77 percent of wastewater discharged into surface water was treated.

Waste management: Some 200,000 tons of hazardous waste (including chemicals and heavy metals) are produced annually, but only a small part is treated while the remainder is stored at the source. Annually 1.5 million tons of solid waste is dumped into landfills, many of which pose a threat to surface and ground water because of poor landfill design and site selection.

Former military sites: Investigations revealed heavy contamination principally with oil products. In addition there is contamination with heavy metals, chemcials and radioactive substances.

Air pollution: Emissions of pollutants into the air decreased as a result of the decline in industrial production and reduced energy and fuel consumption. However, pollution from cars, accounting for around 70 percent of air pollution in Lithuanian towns and cities, remained unchanged.

Pollution Regulatory System: The existing regulatory system combined pollution charges (an economic instrument used to reduce overall pollution) and source level emissions standards. This system was introduced in the Soviet Union in the 1980s to encourage state enterprises to be less polluting; however, these charges and standards had little effect due to the existence of soft budget constraints and absence of effective enforcement. Immediately after independence, Lithuania adopted the Soviet system with only minor changes. Policy makers recognized an important need to harmonize the mixed system with the efficiency demands of a market economy. For example, the rate levels bore little or no relation to the costs enterprises avoided by failing to reduce emissions.

In October 1995, Lithuania’s Ministry of Environmental Protection (now the Ministry of Environment) published a National Environmental Strategy with the objective of strengthening Lithuania’s institutional capacity to address its existing environmental concerns and problems effectively, and to ensure that the concept of environmentally sustainable development underpins Lithuania’s transition to a free market economy.

The Strategy identified priority actions designed to achieve long-term, sustainable development. The Government considered passing legislation that is consistent with a market economy as a matter of great priority and urgency. Also identified was the need for institutional and economic measures to encourage material and energy savings and reductions in emissions. The infrastructure for the dissemination of information on new technologies was also missing. The need for public and private sector funding mechanisms was emphasized, including the introduction of tariffs and the establishment of an environmental fund. Pollution prevention, waste reduction and waste treatment were likewise identified as priorities, together with the training of environmental experts and public participation. Overall, the Strategy anticipated harmonizing Lithuanian environmental standards with European Union standards. In 1998 Lithuania’s Ministry for Environment published a Strategy for Accession to the European Union, based on the 1995 Strategy.

USAID-funded environmental programs, initiated in 1992, focused on establishing democratic principles in government, and building capacity in the new Ministry of Environmental Protection. This report described the USAID environmental program in Lithuania, including its rationale, goals, key activities and results achieved.

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II.1 Environmental Assessment, Monitoring, and Public Awareness

Primary Lithuanian Counterpart: Lithuanian Ministry of Environment

Primary Technical Advisory Team: Environmental Protection Agency (EPA)

Background

This multi-faceted program was designed to promote:

  • Environmental policy reform; including related economic, legal, and regulatory reforms.
  • Strengthened environmental institutions through development of management tools such as risk and impact assessment.
  • Increased public awareness, access to information, and public participation in the government decision making process.

To achieve these objectives, technical assistance and training were provided to the Ministry of Environment (MoE) counterparts to overcome the legacy of decades of intensive industrialization and a command economy. At the same time, some demonstration projects were implemented to address high priority environmental problems in key geographic "hot spots" where large populations were seen to be at risk from exposure to pollutants.

Program Description

Hot Spots Demonstration Projects. Technical assistance, training and guidance were provided to address problems with hazardous waste and contaminated sites. Projects were designed to force working relationships across agencies to accomplish project goals, thus involving officials at national agencies and local governments.

Zokniai Military Base project: This project was developed in cooperation with the U.S. Air Force under the EU COM Military to Military Program for the Baltic Area. The project included the following activities:

  • Preparation of Wellhead Protection Plan and Water Supply Evaluation to prevent groundwater contamination
  • Development of Standard Operating Procedures to conduct groundwater sampling and related fieldwork
  • Waste Site Characterization Techniques and Technologies to identify and monitor groundwater contamination
  • Hazardous Materials Health and Safety Training to expand the capability of Lithuanian institutions to respond effectively to accidents involving hazardous materials, and to reduce the environmental impacts of a hazardous materials accident.

    Mazeikiai Oil Refinery project: This project provided technical support to analyze existing levels of pollution at the oil refinery and to identify environmental control options, particularly for air emissions. A facility review, characterizing major sources of pollutants and identifying pollution prevention opportunities, was completed. The MoE implemented a comprehensive training program for the refinery personnel, environmental monitoring staff and for other specialists.

Assessment of Environmental Monitoring Capabilities. The purpose of the project was to assist the Lithuanian Government to evaluate and improve its environmental air and water monitoring programs by providing information that could be used to make environmental decisions consistent with approved national environmental priorities. Activities included design of monitoring systems to ensure that data is collected, analyzed and disseminated to meet the needs of the Ministry for Environment for developing environmental policies.

Assistance was also provided to the Ministry to strengthen its institutional capacity to manage environmental monitoring and increase the Ministry’s data management capacity.

Regional Environmental Monitoring Project. This project was established to implement the recommendations of the monitoring assessment project. Under this project, review of the existing Baltic region air monitoring network design was completed. Specific recommendations were provided for upgrading the monitoring network. The Baltic Urban Air Monitoring Workshop was held in 1997. This was the first attempt to review Baltic states air quality monitoring networks with regard to European Union (EU) directives and to form recommendations on their design. Under this project, equipment and training were provided for air quality monitoring and for ground water and hazardous waste programs. A Baltic region forest health monitoring system was also initiated under this project, with essential equipment and training support. Lithuanian specialists also received training in U.S. under this project.

Environmental Education. The purpose of the project was to train Lithuanian and Latvian schoolteachers, teacher trainers, and educational organizations to develop their own environmental education programs and curriculum, utilizing an integrated hands-on approach to learning and teaching. Project activities included training in U.S. environmental education techniques provided by environmental educators from the U.S.-based Institute for Sustainable Communities.

Environmental Management Training. The purpose of this training was to strengthen the capacity of environmental authorities at the national and local level. Training topics included environmental assessment, environmental monitoring, and comparative risk assessment. Under this project the first workshop on Environmental Impact Assessment (EIA) was held in October 1993. This was the precursor of EIA activities and practices within Lithuania. Participants at the workshop were the key individuals who later developed the national EIA Law, adopted by the Lithuanian Parliament in 1996. A modified version of the EIA course was also developed for the Lithuanian banking community, to enable them to assess risks they could face in granting loans. Training included an overview of World Bank requirements related to environmental impact assessment. Other training courses included: Fate and Transport of Contaminants in the Subsurface Environment; Applied Ground Water Modeling; Air Quality Modeling; National Ground Water Action Plan Development; Surface Water Quality Modeling; Advanced Ground Water Investigations and Global Positioning System Training; Contracts and Grants Management Workshop.

Results

  • As a result of the Hot Spots projects, public education about wellhead protection was initiated in Lithuania. Under this project the Siauliai Wellhead Protection Plan was developed to serve as a national model.
  • A national monitoring program is in place and U.S.-styled standard operating procedures have been adapted for Lithuanian field conditions.
  • A Quality Assurance/Quality Control (QA/QC) system was implemented and unified within the framework of Lithuania’s environmental protection system, enabling the QA/QC system’s application by all Regional Departments. The Ministry for Environment’s Central Laboratory gained capacity to meet international standards and to seek formal accreditation.
  • Lithuanian capacity to respond to hazardous materials incidents was increased. Relationships and team work opportunities among the Lithuanian Ministry for Environment, the Lithuanian Geological Service, and Municipality managers were established that had not existed prior to the Hot Spots projects.
  • Assessment of environmental monitoring capabilities was implemented and substantial investment were made in new laboratory equipment and computerized data management systems.
  • Hardware and software to support Local Area Network (LAN), modern office automation technology, and environmental monitoring and enterprises statistics databases was provided together with training on system administration.
  • The Regional Environmental Monitoring project improved the quality assurance and quality control capabilities of the Ministry for Environment’s Central Laboratory. Equipment provided through the project enabled the Laboratory to meet international standards in performing air and water quality monitoring and analysis tasks. Under this project, additional monitoring equipment needs were identified that were later funded by the EU PHARE.
  • Lithuania’s ground water monitoring capabilities were upgraded. Ground-water sampling, aquifer testing and Global Positioning System equipment was provided to enable the collection of reliable and compatible data. The Ministry for Environment’s information management capabilities were significantly improved through the establishment of Local Area Networks. This activity was coordinated with other Baltic countries enabling the exchange of environmental data that ultimately led to data standardization within the region.
  • USEPA developed an air monitoring network design in collaboration with the EU. This design allowed preparation of the Lithuanian State Air Pollution Monitoring Development Strategy.

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II.2 Environmental Economics and Policy Project

Primary Lithuanian Counterpart: Lithuanian Ministry of Environment

Primary Technical Advisory Team: Harvard Institute for International Development

Background

After independence, one of the goals of environmental policy in Lithuania was to strengthen skills in appropriate use of environmental economic incentives. As part of the USAID funded Central and East European Environmental Economic Project (C4EP), technical assistance was provided to the Lithuanian government on environmental economics and policy during 1993-1998. The project was implemented by Harvard Institute for International Development (HIID) and headed by a resident Environmental Policy Advisor. The assistance was focused to support the MoE in introducing and developing economic policy and fiscal reform elements in the national and environmental policy framework. The objectives of the program were to promote:

Policies to improve natural resource utilization, to foster waste minimization, and to achieve health risk reduction; and The application of flexible market-based instruments to provide both economic and environmental benefits.

Program description

Pollution Charge System. There were three main areas of support to Lithuania’s Ministry for Environment under this project:

  • Revision of the pollution charges system and development of a more appropriate institutional and rate structure for the revised system.
  • Using modern analytical tools, collaboration with the Kaunas Technological University to gather the data and estimate the rates necessary to achieve various levels of reductions of key air and water pollutants.
  • Assistance on the revision of the Pollution Charges Law that was amended in 1998 to include not only pollution charges, but also green product charges.

Lithuanian Environmental Investment Fund. Lithuania’s National Environmental Strategy noted that firms have great difficulty financing environmental investments. Add to this the weakness of the banking sector in Lithuania in 1995-1996, and it was not clear how firms could respond to a new law on pollution charges without access to financing.

The Ministry for Environment sought support from the EU PHARE program for the development of an institution dedicated to financing environmental projects. i.e., an environmental investment fund. EU PHARE consultants provided the initial technical assistance, but soon realized that a long-term technical advisor was required. This advisor, provided under USAID financing as part of the C4EP project, assisted with the development of the Lithuanian Environmental Investment Fund (LEIF). Key design components of the LEIF were established In collaboration with EU PHARE advisors. One major requirement was that Lithuanian banks would be used to evaluate the financial aspects of projects and to administer any loans. USAID assisted the MoE staff and other governmental officials develop an operational manual for the LEIF.

Center for Environmental Policy: The Center for Environmental Policy was established as a public organization on September 2, 1997, with the goals to serve as an independent think-tank on environmental issues to the MoE. The Center provides expertise in environmental law, environmental economics, environmental financing, environmental impact assessment, environmental education and public relations, environmental quality monitoring and environmental auditing and EU approximation.

Results

  • The Ministry for Environment drafted a revised law on pollution charges and submitted it to the government in 1997. The draft law stipulated that half the generated revenues be allocated to the Lithuanian Environmental Investment Fund (LEIF) established with USAID and EU PHARE support.
  • With assistance from USAID and EU Phare, the MoE established the LEIF. LEIF officially started its operations in 1998. USAID provided technical assistance to LEIF, which was initially capitalized by the EU Phare Program.
  • The Center for Environmental Policy was established to serve as an advisor to the MoE regarding environmental issues, including environmental aspects of EU accession.

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II.3 Environmental Action Program Support Project

Lithuanian Counterparts: Lithuanian Ministry of Environment

      Lithuanian Environmental Investment Fund

Vilkas Tannery in Kaunas

      Cement plant Akmenes Cementas

      Primary Technical Advisory Team: Chemonics

Background

The Environmental Action Program Support (EAPS) project in Lithuania was undertaken pursuant to U.S. Government commitments under the Environmental Action Program for Central and Eastern Europe, adopted in April 1993 in Lucerne, Switzerland. This program established a partnership of Central European and Western countries to develop policy and institutional reforms and implement priority investments aimed at addressing environmental risks to human health in the region. The EAPS project’s objectives:

  • Promoting the restructuring of the industrial sector by channeling public and private funds toward capital investments aimed at mitigating serious human health risks and environmental problems, including the fostering of alternative indigenous funding sources for environmental projects.
  • Developing the means necessary to ensure the sustainability of EAPS initiatives through training, improved production processes, and management methods (in the case of industrial concerns).

Program Description and Key Activities

This program included the following components:

  • Assistance to Akmene Cement plant on project preparation and packaging:
    USAID provided all funding for initial project identification, site evaluation, and technical and environmental audits in conjunction with a proposed EBRD restructuring project at Akmenes Cement.
  • Pollution Prevention Demonstration project at Vilkas Tannery:
    This project combined grants of equipment with technical assistance in feasibility evaluation and implementation to reduce heavy metal emissions at the Vilkas Tannery in Kaunas city. Alternative approaches were developed to reducing chromium, emissions through recycling, and other process alterations. In addition, facility management was advised about options to improve operations through more efficient production.
  • Development of the Lithuanian Environmental Investment Fund (LEIF):
    In coordination with another USAID project - C4EP, EAPS helped the MoE to develop the LEIF. The main goal of the LEIF is to provide low-interest loans for private and public sector projects that will have significant environmental benefits. The EU Phare program provided initial capital to the LEIF, while the USAID funded C4EP and EAPS projects assisted with technical advisors for capacity building issues. USAID assistance to the LEIF also included a series of training activities, to develop the skills necessary for efficient use of the funds available in the LEIF.
  • Development of the Lithuanian National Environmental Investment Strategy:
    Assistance was provided to the MoE and Organization for Economic Cooperation and Development in developing the Lithuanian National Environmental Investment Strategy.

Results

  • A high quality project package was prepared for Akmenes cement plant that has been used by foreign investors as a basis for restructuring the Akmene plant’s management and operations. The Akmenes Cement plant and the EBRD did not complete their negotiations regarding financing. However, the ultimate private sector investor in the Akmenes Cement plant implemented about 80 percent of the environmental recommendations provided in the USAID funded investment proposal.
  • After the LEIF was established, USAID provided an Environmental Project Consultant to assist the LEIF identify prospective applicants. The Consultant assisted prospective applicants prepare the financial elements of their requests for financing. The LEIF awarded its first financing in May 1999.
  • A demonstration pollution prevention project at Vilkas Tannery to assist the firm meet Municipal standards on heavy metal discharge. Chromium reduction treatment techniques are now applied to previously untreated wastewater streams, and the plant has reduced chromium effluent by over 70 percent. Vilkas Tannery was introduced to various waste minimization and tannery process improvements. These positive experiences were shared at the Technology Transfer Tannery Symposium, where over than 60 Lithuanian industry companies participating.
  • The Lithuanian National Environmental Investment Strategy was prepared under direction of the MoE.

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II.4 Environmental Improvements Waste Minimization PROGRAM

Lithuanian Counterparts:

Lithuanian Industry Plants:

  • Kedainiai State Chemical Plant
  • Joint Stock Company Achema
  • JSC Litoda
  • JSC Vilniaus Buitine Chemija
  • AB Plasta Plastics manufacturing Company
  • JSC Inkaras
  • JSC Akmenes Cementas
  • Pollution Prevention Center of Kaunas Technical University

Primary Advisory Team: World Environmental Center

Background

The World Environment Center (WEC) program was conducted from 1993 to 1998. It was designed to transfer U.S. private sector environmental expertise, technology, and skills to Lithuanian industry and government representatives.

The main objectives of the program were:

  • To reduce industrial and urban pollution
  • To improve management of solid, hazardous, and toxic wastes
  • To improve industrial health and safety practices, and
  • To increase energy efficiency.

WEC promotes pollution prevention and waste minimization by introducing "low-cost or no-cost" techniques to conduct environmental audits, make process changes, recycle and more efficiently use raw materials and natural resources, and calculate emissions reductions and cost savings.

Program Description

The project was begun in the early 1993 to introduce environmentally sound practices and technologies to Lithuanian industries to enable them to be more competitive in support of industry privatization initiatives. The key element of the program was one year in-depth waste minimization demonstrations at selected plants. Under this part of the program, training for plant managers, engineers, and local consultants on pollution prevention techniques was provided. Also, basic measurement, process, and control equipment and training operators were provided directly to the assisted plants.

The establishment of the self-sustaining Pollution Prevention Center (PPC) at Kaunas Technical University with trained experts, analytical equipment and a technical library was the final phase of the project.

Results

  • A total of thirteen waste minimization projects were completed at seven Lithuanian enterprises.
  • The assisted Companies reviewed program results at the Results Seminar which was attended by 60 Lithuanian plants. Companies demonstrated economic and environmental benefits of waste minimization projects and reported total savings of $437,000 on investments of $111,000 with an average payback period of less than three months.
  • As a result of the program, air pollution emissions in Lithuania were reduced by 130 tons/per year, wastewater discharges by 115,000 cubic meters/per year, and more than 4,500 tons of fuel oil and an undetermined amount of raw materials were saved.
  • The PPC assists industrial enterprises in developing and implementing waste minimization programs. The PPC also provides consultations and training for in-plant personnel. As an affiliate of the Institute for Environmental Engineering at Kaunas Technical University, the PPC has the status of a research organization that ensures that they do research to keep abreast of the latest developments in the environment sector.

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III. Regional post-presence Activities

The USAID Mission office in Vilnius closes in September 2000; however, some regional activities will continue to be implemented. There are three initiatives that are in this category. They include: EcoLinks, Great Lakes/Baltic Partnership, and Environmental Security, as described below:

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EcoLinks Program

USAID’s regional environment program, EcoLinks, was initiated in 1998 to establish technology links between public and private sector enterprises and technology partners. These technology partners must be located in the United States, Central and Eastern Europe, or the New Independent States and must provide practical, market-based solutions to industrial and urban environmental problems in the region.

Small grants of up to $5,000 are available to meet intermediate short-term needs, such as establishing initial business contacts to facilitate technology transfers. Challenge Grants of up to $50,000 for a one-year grant are available on a competitive basis to support activities that address priority environmental problems. Work is coordinated by the EcoLinks Regional Program office in Budapest, Hungary.

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Great Lakes/Baltic Sea Partnership

This program involves a partnership between several countries in the Baltic Region, including Lithuania, and the United States. In both the U.S. and Europe, environmental managers are using watershed management approaches to protect and improve water quality in their surface and ground water resources.

A Water Framework Directive under development for the European Union has spurred the interest of Baltic countries aspiring to meet the Directive in watershed management. The partnership includes two primary components: watershed management capacity-building, and a fellowship program. The program is implemented by the USEPA.

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Environmental Security

The U.S. Department of Defense, USEPA and responsible Lithuanian environmental and defense organizations are cooperating in defense/ environmental activities to promote environmental health and prosperity in the Baltic region and to facilitate greater coordination between military and civilian sectors. This cooperation recognizes the vital connection between the environment, economic growth, and political stability. The program includes the establishment of a Regional Defense Environmental Training Center at the General Ramanauskas advanced Military Training Center in Nemencine, and the development of a pilot Military Base Environmental Management Plan.

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IV. LEGACY OF THE PROGRAM

Lithuania has made irreversible progress towards the establishment of a democratic society and market-oriented economy. Economic reform has taken place within a democratic framework that inspires good governance, strengthens the rule of law, and encourages active participation by civil society. Progress in economic and political reform will facilitate Lithuania's accession to membership in the EU.

Lithuania’s future is bright. The long-term challenge for Lithuania is to sustain a pattern of growth and development that will allow its people to achieve their dreams and provide for greater opportunities. Foreign private investments are increasing, and many of the basic laws, policies, and institutions necessary for future economic growth are in place. However, the transition is not complete. Lithuania needs to implement important economic and democratic reforms so as to preserve the gains made and to ensure a positive direction for the future.

The goal of USAID is to have U.S. relations with Lithuania evolve from one of donor/recipient to one of a long-term sustainable partnership at all levels - among individuals, institutions, and leaders. To achieve the goal of a truly sustainable partnership, there is still work to be done, building on the successes and lessons learned over the past nine years.

Three environmental program activities that will continue as sustainable legacy activities are the Center for Environmental Policy, the Lithuanian Environmental Investment Fund, and the Pollution Prevention Center.

Center for Environmental Policy

No follow-on projects were originally envisioned under the Center for Environmental Policy (CEP) project; however, the USAID Mission Director and Lithuania’s Deputy Minister of Environment wanted to devise a sustainable way to continue the work in environmental economics begun by HIID. Once the idea to establish the CEP was developed, it had only one year of continued USAID funding in the form of contracts.

For the first year, USAID funding accounted for approximately 80 percent of the total budget. Eighteen months after its establishment, the CEP was completely self-sustaining. It had funding from a number of sources, both domestic and foreign, to implement a projects in environmental economics, environmental policy, legislative drafting, and EU harmonization. It also received funding to provide expert technical advice in environmental areas such as solid waste, water and air pollution. Funding comes directly from the MoE or through the MoE from foreign donors such as the Danish EPA, EU Phare and the World Bank. The prospects for continued long-term sustainability of the CEP are good as long as its founders continue to actively solicit and win contract work from both foreign donors and the MoE.

The Lithuanian Environmental Investment Fund (LEIF), with initial funding from EU/PHARE, was established by the MoE to provide financial support for eligible low- to medium-cost environmental protection projects. The main goal of the LEIF is to provide low-interest loans for public and private sector projects which will have significant environmental benefits. The LEIF was set up as a revolving fund with the intention that it would be sustainable over time. The interest earned on the loans should be sufficient to cover the operating costs of the Fund so that all of the principal will go back into the Fund for future loans.

Pollution Prevention Center

Since USAID funding to the PPC ceased in December 1998, the Center has been fully self-financing. Over 80 percent of their funding comes from foreign sources for the implementation of projects of a contract basis, primarily from Scandinavian countries who have a long history of economic ties and an environmental interest in the Baltics. Kaunas Technical University continues to cover the PPC’s rent and utilities in exchange for courses taught by the PPC Director.

In the future, the PPC is likely to change its name to the National Cleaner Production Center and become affiliated with the United Nations International Development Organization (UNIDO) network of Cleaner Production Centers. This name change is significant because it implies a countrywide focus and emphasizes the European approach to waste minimization through cleaner production projects. Affiliation with UNIDO will give the PPC access to other Cleaner Production Centers and other UN programs.

The prospects for long-term sustainability are very positive. The Director of the PPC has demonstrated his ability to integrate programs and adapt the services provided to the needs of Lithuanian businesses. As the country moves towards EU harmonization, demand for environmental services should increase and the percentage of funding from local sources should increase.

Conclusion

The partnership between Lithuania and the United States will continue well beyond the active presence of the USAID office in Lithuania. Both partners are committed to supporting this continuing relationship at the highest levels. The conclusion of the U.S. bilateral assistance program is a clear demonstration of the U.S. Government's confidence that Lithuania has irreversibly passed through the threshold leading to a market-economy and a democratic society.

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Acronyms

CEP Center for Environmental Policy

C4EP Central and Eastern European Environmental Economic Project

EAPS Environmental Action Program Support Project

EIA Environmental Impact Assessment

EPA Environmental protection Agency

EU European Union

GDP Growth Domestic Product

HIID Harvard Institute for International Development

LAN Local Area Network

MoE Ministry of Environment

PPC Pollution prevention Center

QA/QC Quality Assurance/Quality Control

UNIDO United Nations International Development Organization

USAID United States Agency for International Development

USEPA United States Environmental Protection Agency

WEC World Environmental Center

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References

  1. Chemonics, The Environmental Action Program Support Project, Final report to USAID, 1998.
  2. WEC, Economic and Environmental Benefits of Industrial Waste Minimization In Estonia, Latvia and Lithuania, 1995.
  3. Lithuanian National Environmental Strategy, Vilnius, 1995.
  4. HIID, The Central and Eastern Europe Environmental Economics and Policy Project, Final Report to USAID, 1998.
  5. U.S. EPA Draft Final Report to USAID, 2000.

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Last Updated on: June 25, 2009