Financing and administration of the project

Sisukaart
 
  1. On April 24, 1998 the Estonian Ministry of Environment applied for assistance of the governments of the Nordic countries in the Sillamäe remediation project (estimated cost 20 million EUR);
  2. In October 1998 the Financial Ministry of the Republic of Estonia delivered an application about co-financing the remediation project of Sillamäe, costing 20 million EUR in the extent of 25% (5 million EUR) out of Phare LSIF funds; the price estimation of the project based on Swedish, German and East-European experience, considering the differences in the cost of living.
  3. The experience of Sillamäe International Expert Reference Group (SIERG) about restructuring the Ranstad (Sweden) tailing pond supported the calculations of Estonia. Representatives of Finland, Norway, Denmark and Estonia as well as NIB/NEFCO and the European Commission attended the meetings of financial donors on May 3 and 27, 1998 (presided by Harry Liiv and Allan Gromov) at the Ministry of Environment; Oct 6, 1999 (presided by Marko Tuurmann) at the National Library and on April 23, 1999 (presided by Harro Pitkänen, NEFCO) at the Ministry of Environment.

    The work of the designer was discussed, complemented and approved and the following financial scheme was developed:

    Cost of the project: 20 million EUR, financed with the help of:

    Phare LSIF
    5 million EUR
    Norway
    approx. 2 million EUR
    Sweden
    approx. 1 million EUR
    Denmark
    approx. 1 million EUR
    Finland
    approx. 1 million EUR
    NEFCO guarantee
    2 million EUR
    Estonia
    3 million EUR
    NIB loan to Estonia
    5 million EUR
     
  4. Information acquired and decisions adopted at the discussions:
    1. NEFCO would be the financial manager for directing the financial share of (IFI) Phare and donor countries to the project;
    2. The project management unit would be established to Ökosil Ltd. founded with the aim of restructuring the refusal depository in Sillamäe, NEFCO prepares the terms of reference of the management unit and the financial memorandum between all participants of the project;
    3. The information of construction companies of Estonia and price of building materials in East-Virumaa are considered for making preliminary calculations of all local works for the general budget of 20 million EUR;
    4. European supervision and quality requirements should be followed for carrying out the project; if Estonia lacks specific skilled know-how, the latter would be acquired from foreign countries;
    5. The Steering Group, consisting of the representatives of all donor countries and organizations would be established for financial supervision; the steering will adopt the budgets of the project management unit;
    6. According to the requirements of the European Commission the project should be launched in 1999; the rules of the European Commission (Decentralized Implementation System - DIS) should be applied for procurement, contracting and financing of the project.

  Projects
  The depository for radioactive tailings
  History of the project
  Financing and administration of the project
 
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