68 



CapactttM and conatnidlan yMTS 



rMtmanl put* 



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 c^acty i* shown abov*. 



Total capacity 



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Hrst results already visible 



In 1991 five Finnish consulting finns together with local 

 experts carried out a study of the main environmental problems 

 in and around St. Petersburg in Karelia and in Estonia, also 

 considering the measures needed to reduce them. The study 

 found that there were some 60 significant problem areas. 

 Sixteen projects were selected as priority targets. Eight of 

 these are located in and around St. Petersburg, and four are 

 in Karelia. In Estonia four priority projects were chosea 



Several Finnish companies involved in environmental 

 technology are participating or plannmg to participate in 

 these projects. Commercial contracts signed by early 1992 

 included the following projects; 



• An experimental desulphuhzation process for the oil-shale 

 power plants m Narva, Estonia 



• Improved waste water treatment in Tallinn, Estonia 



• Supply of oil combatting equipment to St PeteisbuTg as part 

 of the region's hazardous waste management programme 



• Phase One of the desulphurization project for the 

 Kostamuksha mining plant m KareUa. 



The total estimated budget for the 16 projects is around 

 FIM 15 billion, with local currencies providing about FIM 9 

 billioiL Financmg in foreign cinrencies comes to arotmd 

 FIM 5 billion. The programme is expected to take about ten 

 years. 



As a result of the programme, sulphur deposition will 

 decrease by 10-20% in some areas of eastern and southern 

 Finland. 



For the whole of the Gulf of Finland, the point load will 

 decrease about 3 S% in the case of BODS, and about 45% 

 for phosphorus. 



Project financing 



The programme will be earned out on the basis of com- 

 mercial contracts between the companies and the plants 

 concerned. The projects will primarily be funded locally, 

 but they also mclude Western inputs, which may take the 

 form of technical consulting, contracting, direct equipment 

 deliveries, or training. 



The joint projects will be implemented using local la- 

 bour for the most part. The Finnish Government may pro- 

 vide budgeted supports for these environmental projects, 

 usually to a maximum of 50% of the Finnish costs of the 

 project Another form of aid is to grant interest subsidies on 

 loans. The Finnish Guarantee Board has been empowered to 

 grant guarantees for loans concerning environmental 

 projects. Aid meant for foreign companies or corporations 

 will be paid to the Finnish partner. 



Other Nordic financiers of environmental projects in 

 Finland's eastern neighbours are the Nordic Investment 

 Bank, the associated Nordic Environment Finance Corpora- 

 tion (NEFCO) and the Nordic Project Export Fund 

 (NOPEF). In addition, inquiries about financmg may also 

 be addressed to Finnish Export Credit Ltd., and the Firaush 

 Fund for Industrial Development Cooperation Ltd. 



International finaiKing for environmental projects m the 

 Baltic region may also be obtained from the World Bank, 

 the European Bank for Reconstruction and Development 

 (EBRD), and the European Investment Bank. 



