9
GLOBAL ENVIRONMENT FACILITY
PROPOSAL FOR PROJECT DEVELOPMENT FACILITY (PDF) BLOCK B GRANT
1.
/Country
/ Republic of Hungary2. / Focal Area: / International Waters, Nutrient Reduction
3. / Operational Program: / Strategic Partnership for Nutrient Reduction in the Danube River Basin and the Black Sea;
OP-8 Waterbody-Based Operational Program;
OP-10 Contaminant-Based Operational Program;
OP-12 Integrated Ecosystem Management
4. / Project Title: / Reduction of Nutrient Discharges
5. / Total Cost: / US$19million, including estimated US$9.7 million GEF funding
6. / PDF Request: / US$350,000
7. / In-kind contributions: / Municipalities of Budapest and Dunaújváros, and, the Danube-Dráva National Park Directorate (DDNPD) about US$ 45,750 for provision of office space, utilities, rent, security and ground maintenance, information and services. Additional contribution from Municipality of Budapest and Dunaújváros and DDNPD in the form of preliminary studies and designs is already committed for an estimated value of 140,000$.
8. / Requesting Agency: / Republic of Hungary, Ministry of Environment
9. / Executing Agency: / Municipalities of Budapest, Municipality of Dunaújváros and the DDNPD
10. / Block: / PDF Block B
11. / PDF Duration: / 9 months (September 2002 – May 2003)
12. / Project Duration: / 3 years
13. Project Objectives
The overall objective of the proposed project is to reduce the discharge of nutrients into the River Danube in the frame of three sub-projects. Through the sub-projects, -- improving the reduction of nutrients in effluent from wastewater treatment plants at Budapest and Dunaújváros and increasing the nutrient retention capacity at the Danube-Dráva National Park’s Gemenc and Béda-Karapancsa Region, -- the Regional Development Objective, i.e. to decrease nutrients in the River Danube and this way nutrient loads to the Black Sea, can be achieved.
The objectives of this Project go beyond EU and Hungarian legal requirements, and are clearly at the protection of the Black Sea under the Partnership Program.
The present facility, PDF Block B financial contribution will help to ensure proper project preparation and to elaborate an appropriate GEF application.
14. Global Significance
The Project would contribute to reversing the disruption of the ecological balance due to the eutrophication in large areas of the Black Sea, particularly the northern shallows, caused by the increased nutrient loads from agricultural, industrial and municipal sources along the coast and tributary rivers, particularly the Danube. Significant regional benefits will also accrue through improved catchment management, coastal water quality, thus the conditions for economically, environmentally and socially sustainable activities of local communities and for fisheries.
The aquatic habitats of the Danube River basin have suffered serious degradation of a major part of natural resources and the quality of the water bodies. Water resources of the basin are facing particularly acute problems generated as a result of pollution by nutrients, organic material, oil products and solid wastes.
The Environmental Action Plan (EAP) for Hungary identifies Budapest and Dunaújváros as principal sources of direct pollution of the Danube and particularly as dischargers of phosphorus and nitrogen compounds that are responsible for the stimulation of aquatic growth and for contributing to eutrophication of the Black Sea. Estimates show that the city of Budapest at the North-Budapest Wastewater Plant discharge about 2.000 t/yr of Total Kjeldahl Nitrogen (TKN) and 450 t/yr of total Phosphorus and the city of Dunaújváros about 50 t/yr of nitrogen measured as Total Kjeldahl Nitrogen (TKN) and 7 t/yr of total phosphorus into the Danube. A third area, the Danube-Dráva National Park’s Gemenc and Béda-Karapancsa region is identified by the EAP as an environmental sensitive area, where the protection of the Danube could be made through cost effective nutrient reduction measures by restoring its wetlands. Rough estimates suggest that about 12 million t Nitrogen from Ammonium and Nitrate, and about 19.000 t Phosphorus is carried through annually by the Danube in this region.
15. Background
The overall proposal has been prepared in the context of the Partnership Program and the further development of the Municipal Wastewater Projects. Hungary lies in the Middle Region of the Danube River Basin and was a founder member of the Danube Convention establishment on June 29, 1994. The Hungarian Government and the municipalities of Budapest and Dunaújváros are committed to reduce nutrient discharges in the Danube river basin. For this purpose, the government (Mr. Béla Túri-Kovács, Minister of Environment) sent to the World Bank (Mr. Roger Grawe, Country Director) an endorsement letter dated January 31, 2001 requesting assistance in the preparation of a project to reduce nutrient discharges and loads. The Hungarian Government is seeking support for this project under the World Bank-GEF Strategic Partnership for Nutrient Reduction in the Danube River Basin and the Black Sea. This preliminary concept note describes the objectives, main components and preparation-implementation arrangements for this possible project.
The Project -- a potentially eligible proposal for the Partnership GEF Grant funds -- uses a multi-focal area approach, including investments in advanced wastewater treatment of domestic discharges and restoration of wetlands to recover their function as nutrient traps. The project is intended to respond to regional priorities in accordance with the Strategic Action Plan for the Danube River Basin; it has secured financing for baseline non-incremental costs; it will demonstrate pilot experience to test impact through several forms of intervention that would be replicated in other Hungarian river basins as a river basin intervention to reduce the discharge of nutrients from land and local community based sources; and it has Government and local municipality commitment to policy reforms, institutional strengthening and operational development.
The General Assembly of Budapest Municipality has discussed and approved the Project preparation of the Extension of the North-Budapest Wastewater Treatment Plant on their session of the 28th of February 2002. The Municipality of Budapest engaged a Hungarian consultant to elaborate “The Long-term comprehensive plan for wastewater collection and treatment in Budapest”.
The document includes the following main subjects:
I. Evaluation of the present situation
II. Terms of development
III. Objectives and priorities
IV. Detailed plan for the catchment areas
V. Preparation and tasks for development
VI. Cost estimation and scheduling
Aim of the long-term plan is to reach 100 % wastewater treatment in the area of Budapest by the year of 2010.
The project is also consistent with the Bank Group Country Assistance Strategy (CAS) to improve environmental standards and promote sustainable growth and prevention of transboundary pollution in the region. The primary objectives of the CAS are however to help Hungary sustain recent economic recovery and to support the country’s efforts to join the EU. The objectives of this project go beyond EU and Hungarian legal requirements, the Hungarian efforts are clearly aimed at the Black Sea protection under the Danube Programme.
The Government of Hungary has proposed this project for GEF financing following a process of project identification, analysis, and priority setting carried out in cooperation with the Danube Commission. Several possible projects initially identified were evaluated on the basis of: (i) importance as nutrient pollution hot spots or areas with higher potential retention capacity for diffuse pollution; (ii) preparedness for participation in the Project; (iii) willingness for taking policy/institutional strengthening measures; and (iv) funds that would be available for counterpart funds. Using this criteria, Budapest and Dunaújváros (as municipal wastewater treatment components) and the Danube-Dráva National Park’s Gemenc and Béda-Karapancsa Region (as a flood area revitalization-wetland restoration component) have been selected as the interventions that have the highest priorities for large nutrient reduction potential in Hungary.
The City of Budapest is by far the most important point source polluters and nutrient discharge volume in Hungary. Apart from Budapest, only two other cities Dunaújváros and Szolnok, still do not have a nutrient reduction phase in their wastewater treatment facilities discharging effluents into the Danube and Tisza rivers respectively. Dunaújváros is prepared for and willing to participate in the Project and, as Budapest, has secured financing for the baseline investments, to cover part of the incremental costs to be incurred under this project and to the operational expenses associated to it. The Danube-Dráva National Park’s Gemenc, Béda-Karapancsa Region Wetland, lies close to the southern border of the country, where the Danube exits Hungary. According to available information, because of its characteristics and its location, it is an area with the largest nutrient retention potential in Hungary and capable of eliminating large amount of nutrients coming from agricultural and other diffuse sources.
16. Project Description
As mentioned before, the project comprises four components: (i) nutrient reduction in wastewater discharges from a large city (Budapest); (ii) nutrient reduction in wastewater discharges from a medium-size city (Dunajuvaros); (iii) nutrient reduction in the Danube river load by improving the trapping capacity of a restored wetland (Gemenc and Béda-Karapancsa Region); and (iv) replication and dissemination. Main content of these four components is described below.
Component 1. Municipal Wastewater Treatment for the Municipality of Budapest
Proposed investments will include a chemical mixer and handling equipment, laboratory instruments and operation control system (computer hardware and software), for reducing nitrogen and phosphorus. In addition, the existing SEDIPAC primary settlers will be modified into DENSADEG systems, anoxic sections and a selector system inserted in the aeration tanks, aeration capacity increased and the secondary clarifiers extended.
The expected result of these investments (nutrient removal phase) can be characterized as follows:
Parameter Unit Treated wastewater Remarks
BOD5 mg/l 15 Value in COD: 40 mg/l approx.
TSS mg/l 27 With assumption 50 mg/l instead of
the regulations (OVH-National Water Authority)100 mg/l
TN (Total N) mg/l 10
TP (Total P) mg/l 1,25
After the implementation of the nutrient removal phase the discharges of TN and TP from the North-Pest WWTP will be reduced to about TN 1.000 t/yr and TP 150 t/yr.
Component 2. Municipal Wastewater Treatment for the Municipality of Dunaújváros
To improve the efficiency of the plantto increase its nutrient removal capacity, the following actions have been proposed:
· test the new plant, to find parameters for the optimal operation,
· upgrading the wastewater treatment technology (more effective chemical treatment, secondary settling, biological P-removal, secondary denitrification),
· upgrading the sludge treatment technology (thickening and dewatering, disposal with slurry deposit re-cultivation).
As for the possibilities of upgrading concerns, the following additional structures and equipments are suggested by the studies and discussions already carried out:
· feed control of liquid Fe3SO4 to improve efficiency of chemical P-removal
· portioning of cation-activated polyelectrolit by INTER-DOS 3K-2000 equipment
· secondary clarification by DYNASAND type filters
· activated sludge regenerating aerobic tank for biological P-removal
· anaerobic tanks for simultaneous denitrification.
The expected results of these additional investments are:
Nutrient Effluent / Unit / Minimum / Average / MaximumNitrogen / mg/l / 3 / 8 / 10
kg/d / 60 / 100 / 150
Phosphorous / mg/l / 0,4 / 0,6 / 1
kg/d / 4 / 8 / 15
In this case the total yearly average nutrient effluent is expected to be about TN 14 t/yr and TP 4 t/yr, which represents an additional reduction of about TN 150 t/yr, TP 40 t/yr.
Component 3. Danube-Dráva-National Park, Gemenc and Béda-Krapancsa Region Wetland Restoration/Flood Area Rehabilitation
The area of the Gemenc and Béda-Krapancsa Region includes floodplains and side branches, covering altogether 20,000 hectares. As a result of floodland restoration in the target areas, the drying of the wetland habitat will be stopped and its degradation reversed. Through the general improvement of this vast natural ecosystem with adequate vegetation, its nutrient reduction capacity will increase. The areas and water bodies to be rehabilitated are listed below:
„Bátai-Duna” water system / 1800 ha„Veránka” water system, „Rezéti-Duna” / 1100 ha
„Fekete-erdei” water system, „Grébeci-Duna” / 520 ha
„Buvat” water system / 400 ha
Water system at the Sió-canal / 800 ha
„Gemenc” water system / 1400 ha
„Kerülő-Duna” water system / 640 ha
„Báli” water system / 290 ha
„Móricz-Duna” water system / 360 ha
„Nagy-Pandur” water system / 1200 ha
„Béda” water system / 2500 ha
Through the planed investments and the proposed hydrological interventions in the target areas, the nutrient reduction capacity of the floodland is estimated at 650 t N and 100 t P per year.
Component 4. Replication
The project will fund the establishment of a monitoring system to evaluate (in terms of nutrient reduction) its results and the efficiency of the proposed measures, as well as its dissemination to facilitate the replication of the project findings in other areas of Hungary and in the upper Danube region. Hungarian authorities plan to replicate the program in other river of the Danube basin through seminars and information sharing. The project will facilitate the execution of the mutual international obligations of the region. This component will be fully funded by the proposed GEF grant.
The project is fully coordinated with the UNDP/GEF Danube Regional Project (DRP) from the time it was identified. This project responds to one of the priority areas identified by the Danube Commission. As indicated in the proposal, the project will include a monitoring component that will provide important data for the overall monitoring exercise to be carried out under DRP. During the preparation phase that now starts, the Hungarian institutions in charge of project implementation, as part of their regular involvement with the Danube Commission, will coordinate the design of this component to assure comparability and validity of the data produced under the monitoring component of the proposed project. Similarly, full coordination of the project with other aspects of the DRP, like public participation and land use in wetland areas, will be assured through this mechanism. Indeed, the project expects to not only contribute to the overall exercise in the Danube and Black Sea, but also to benefit from the ongoing activities under the guidance of the Danube Commission. The mechanisms for such coordination will be fully determined during the preparation phase that now begins and described with detail in the project documents.
17. Description of proposed Project Preparation Activities and PDF Request:
The Government of Hungary herewith submits a request for a Project Development Facility (PDF) Block B Grant in the amount of US$ 350,000 for further and detailed analysis needed for the preparation of the Project. The PDF Grant would be used to partially finance the costs of consulting services for the analysis of alternatives, economic and financial analysis and final designs. Government and municipal funds will be used to cover tax related expenses for these activities, additional preparation activities (see annex 2) and for awareness raising, training, and environmental and social assessment.