Financing for projects

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• Financing for projects
• in environmental control
• waste management

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Ecological Policy

• The State Ecological Policy for years 2003-2006,
  considering the perspective of years 2007-2010,
  as resolved by Polish Parliament in 2003,
  includes assumption that the targets of
  ecological policy would not be possible without
  active participation of enterprises which, in
  addition to total citizens, are the main users of
  the environment.

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• The financing system for ecological projects is
  used in Poland for 15 years
• On 15 July 1989 the National Fund for
  Environmental Protection and Water Management
  (NFEPWM) was established currently, as
  understood from the Law on public finances, it is
  the state purposeful fund which provides
  financial support for pro-ecological task
  specified in the Law on Environmental Protection.
  Separate status of legal person is also assigned
  to each of sixteen Provincial Funds.

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This system includes the following elements
Financing system for ecological projects

• ecological purposeful funds, i.e. the funds for
  environmental protection and the fund for
  agricultural and forest land protection

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Financing system for ecological projects
This system includes the following elements

• state budget, budgets of provincial/district/comm
  une self-governments

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Financing system for ecological projects
This system includes the following elements

• non-commercial national financing institutions,
  e.g. foundations, including especially
  EkoFundusz Foundation which manages the means
  resulting from conversion of foreign debt to
  public finances to be used for environmental
  control in Poland (so called eco-conversion),

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Financing system for ecological projects
This system includes the following elements

• funds of European Union
• Structural Funds,
• Cohesion Fund.

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Financing system for ecological projects
This system includes the following elements

• foreign financial institutions and other support
  programs, e.g. World Bank S.A,, European Bank for
  Reconstruction and Development, GEF, Norwegian
  Financial Mechanism and Financial Mechanism of
  European Economic Area (EEA).

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Financing system for ecological projects
This system includes the following elements

• commercial institutions, including banks, which
  like e.g. Bank of Environmental Protections
  due to external support, provide credits and
  loans for pro-ecological purposes offering more
  beneficial conditions than those resulting from
  situation on financial market, other commercial
  institutions, especially banks, which grant
  credits for ecological projects on the conditions
  resulting from market competition.

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Financing system for ecological projects
This system includes the following elements

• other commercial financial institutions,
  especially banks, awarding loans for ecological
  purposes on the market conditions

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Activity of the NFEPWM

• National Fund for Environmental Protection and
  Water Management (NFEPWM) especially supports
  with financial means the capital investments and
  programs
• which were granted non-returnable EU means for
  environmental control and water management
• which aims to reach ecological effects specified
  in transition periods of Poland Accession Treaty
  to EU within the environment area.

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Means available after accession to EU

• Starting from the moment when Poland acceded to
  European Union, Polish entrepreneurs may apply
  for financial support from EU funds, especially
  the structural funds.
• The Ministry of Environmental Protection takes
  part in preparing projects from the sector
  intended to co-finance from the Cohesion Fund and
  from the European Regional Development Fund
  (ERDF).

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Action 2.4 Sectoral Operational Program
Improvement of the Competitiveness of
Enterprises.

• The National Fund for Environmental Protection
  and Water Management as Implementing Institution
• Action 2.4
• Support for projects covering adaptation of
  enterprises to the requirements of environmental
  control, co-financed from European Regional
  Development Fund

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Basic Information SOP-ICE Action 2.4
Beneficiaries SME and large companies
Implementing Institution National Fund for
Environmental Protection and Water Management
Intermediary Institution Ministry of
Environmental Protection Managing Institution
Ministry of Economy and Labour
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SOP-ICE Action 2.4

• within Sectoral Operational Program
• Improvement of Enterprise Competitive Power
• years 2004-2006 ,
• 18 March 2005, the time for Round I application
  submission elapsed they are currently evaluated
  
• Announcement of the next round and current
  information are available www.nfosigw.gov.pl.

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Regional Assistance

• The aim of regional assistance is to eliminate
  the differences in economic development between
  individual regions of European Union. It may be
  granted for new capital investments understood as
  investments related to establishing, extending or
  acquiring enterprise, as well as starting within
  an enterprise with activity covering essential
  modifications to production, product or
  production process, changes in products or
  services, including also the modifications in the
  method of rendering the services.

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Horizontal Assistance

• Within the Activity 2.4, the horizontal
  assistance may be granted to adapt some
  environmental standards, to use the best
  available techniques, or to investments leading
  to savings in energy consumption. As opposed to
  regional assistance, here the assistance may be
  directed to undertakings which are not new
  investments .

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Types of projects in 2.4.1 (IPPC)
 

• Support will be granted to projects focused on
  adapting to BAT and those which are the
  conditions for getting the Integrated Permission
• modifications to technology leading to
  elimination of harmful effects and nuisance by
  preventing environmental emissions,
• modifications to technology aiming at reduced
  demand for energy, water and raw materials, with
  special attention drawn to the use of waste heat
  and elimination of waste generation,

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Types of projects in 2.4.1 (IPPC)

• modifications to technology to limit emissions of
  some substances and energy to the level specified
  in national and union regulations and in BAT
  reference documents ,
• investments in equipment limiting environmental
  pollutant emissions (so called pipe-end
  equipment) which need to be used to meet
  continuously more and more stringent emission
  standards or limit emission quantities describing
  BAT, when emission reductions attainable by
  technology changes and operational actions are
  not sufficient .

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Types of projects in 2.4.4(waste)

•      Within this sub-action, support will be
  given to the following investments in enterprises
  generating wastes or in companies with capital
  relations with such enterprises, established to
  ensure proper waste management within specific
  capital group
• construction, extension or modernization of
  installation to recover industrial waste or to
  render it harmless, with special attention paid
  to facilities which could render services,
  according to national, regional, district and
  commune plans of waste management, for those
  located close to business units which could not
  avoid generation of wastes
• construction, extension or modernization of
  installation and equipment to recover wastes, and
  especially to recycle wastes or make them
  harmless for packaging wastes, including
  hazardous substances generated in a given
  enterprise or a group of enterprises

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Types of projects in 2.4.4(waste)

• construction, extension or modernization of
  installation to convert wastes to make them
  easier for storage and transportation and to
  prepare them for recovery or making them
  harmless
• construction, extension or modernization of
  installation to collect wastes or to store them
  temporarily, especially in case of hazardous
  waste
• construction, extension or modernization of
  installation and equipment to reduce the volume
  of generated waste and equipment ensuring proper
  waste registration

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Frequently asked questions to 2.4.4. SOP-ICE

• Industrial wastes are those other than
  municipal ones generated as a result of economic
  activity.
• Position of Intermediary Institution Ministry
  of Environmental Protection
• beneficiaries of the Sub-action 2.4.4 may be the
  enterprises generating waste as the side-effect
  of the production process
• beneficiaries may not be entities dealing with
  processing/recycling of wastes generated by other
  works only .

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Action 2.4 SOP-ICE

• Total allocation of means
• Financial support from European Regional
  Development Fund 155.4 million
• Local public financial support (NFEPWM) 51.8
  million
• Total public financial support 207.2 million
  
• Private funds 303.9 million
• The support will be granted with due allowance
  of regulations on structural funds and the rules
  of granting public support.

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Ministry of Economy and Labour SOP-ICE Action
2.2.1.

• Support for enterprises making new capital
  investments consisting in creating or expanding
  enterprise, both from production and service
  sectors, and in starting with activity, within
  the enterprise, covering essential modifications
  to production, product or production process, and
  also support for creating new jobs related to new
  investments.

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Polish Agency for Enterprise Development SOP-ICE
Action 2.3.

• Improving competitive power of small and medium
  businesses via capital investments
• Projects supported within the activity include
  investments specified in the Ordinance 70/2001
  and the Ordinance 364/2004.
• Especially, the following types of projects are
  supported
• modernization actions at small and medium
  businesses which lead to introducing essential
  change in product or production process ,
• implementation of common investment projects
  undertaken by enterprises ,
• purchase of research/development work results or
  industrial rights by enterprises.

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SOP-ICE Action 2.3.

• implementation and commercialization of
  innovative technologies and products,
• implementation and use of e-business technologies
  ,
• adaptation of technologies and products to the
  requirements of EU directives, especially the
  unified standards and legislation for work safety
  and hygiene.
• The types of economic activities for which no
  support may be given within the Activity 2.3 were
  specified in the ordinance on the financial
  assistance granted by PAED within SOP-ICE .

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New sources to finance development of Poland

• In October 2004, Polish Government signed two
  agreements which allow to make use of two
  financial instruments
• Norwegian Financial Mechanism
• Financial Mechanism of European Economic Area
  (EEA)
• The amount of 533.51 million will be
  accessible in years 2004-2009
• The donors are three countries of EFTA (European
  Free Trade Association) Norway, Iceland,
  Lichtenstein.

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• Strategy of National Fund for Environmental
  Protection and Water Management on years
  2003-2007

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Strategic targets in the field of waste
management and land protection

• waste prevention and reduction of quantity and
  harmfulness of waste by development and
  implementation of waste-free and low-waste
  technologies ensuring minimization of waste
  volumes generated in production processes ,
• reuse of waste by material and power recycling
  (introduction of selective waste collection,
  waste segregation, construction of waste
  recovery, creating markets for products
  manufactured from secondary materials),

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Strategic targets in the field of waste
management and land protection

• optimization of final waste disposal , i.e.
  storage of such wastes only, which may not be
  used in another way ,
• execution of repair actions, i.e. degraded land
  reclamation.

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National Waste Management Plan

• Waste management and execution of National Waste
  Management Plan resolved by Council of Ministers
  in 2002

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National Waste Management Plan

• Capital expenditures for projects specified in
  the National Waste Management Plan equal to PLN
  11.8 billion, including
• PLN 8.8 billion in municipal sector,
• PLN 2.0 billion in economy sector,
• PLN 1.0 billion in hazardous waste management .

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Priority Programs (1)

• Protection of lands and waters by preventing
  waste generation, by waste management and
  degraded land reclamation.
• Reclamation of lands degraded by army and
  industry, including bio-reclamation of areas
  polluted with oil derivatives ,
• Liquidation of inactive hazardous waste disposal
  sites ,
• Management of municipal wastes and municipal
  sewage sludge,

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Priority Programs(2)

• continuation of Program No. 3
• Management of packaging and post-use waste ,
• Management of hazardous waste and making it
  harmless ,
• Management of industrial waste and waste from
  power plants introducing technologies which
  reduce the quantity of waste from industrial
  plants ,
• Making harmless the wastes generated due to
  operation of transport means ,
• Management and making harmless the substances
  which reduce ozone layer.

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Forms of financial support

• loans,
• payment loans ,
• redemptions ,
• credits granted by banks from National Fund ,
• additional funds to support preferential
  interests of credits and loans ,
• subventions .

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Additional funds granted by NFEPWM must not
exceed

• 80 of capital costs of a project,
• and in case a project is financed by NFEPWM and
  non-returnable foreign means
• 80 of difference between capital expenditure
  for the project and the additional financing by
  foreign funds .
• NOTE
• The value of financing, in a form of loan, must
  not be lower than PLN 300,000 excluding projects
  with financial support within Sectoral
  Operational Program Improvement of the
  Competitiveness of Enterprises.

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Conditions for financial support for undertaking
using the means from product-related fees

• Capital investments related to
• recovery and recycling of packaging waste ,
• recovery and recycling of post-use waste created
  from Ni-Cd batteries and galvanic batteries ,
• recovery and recycling of post-use waste created
  from cooling and air-conditioning equipment ,
• recovery and recycling of post-use waste created
  from vehicle tyres ,
• collection and regeneration of spent oils ,
• recovery and recycling of post-use waste created
  from discharge lamps.

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Conditions for financial support for undertaking
using the means from product-related fees

• Total amount of financing from NFEPWM is 80 or
  capital expenditures,
• Loan amount at interest rate of 0.1 s.r.w. bill
  rediscount rate up to 50 of project capital
  costs, however not more than PLN 1 million
• Waiting period max. 18 months from the last
  payment,
• Credit period max. 10 years,
• The redemption amount cannot be higher than 30
  of the loan granted.

Zgodnie z Rozporzadzeniem Ministra Srodowiska i
decyzja Zarzadu NFOSiGW
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Subventions from product-related fees

• Subventions, according to the Ordinance of the
  Minister of Environmental Protection, may be
  granted for
• Pilot undertakings related to implementation of
  technical progress and new technologies with high
  risk level or those of experimental nature,
• Monitoring of recovery and recycling system for
  packaging and post-use waste,
• Collection and recycling of post-use waste for
  entrepreneurs and collecting units exceeding the
  required levels of recovery and recycling,
• Ecological education on selective collection and
  recycling of packaging and post-use waste
  specified in the law.

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• National Fund for Environmental Protection and
  Water Management
• www.nfosigw.gov.pl
• Tel. [phone]