Non Governmental Organisation (NGO) - independent, non-profit organisations pursuing a particular agenda or objective, e.g. environmental conservation, industry associations.

Non-Recourse Loans - a loan where the repayment is wholly dependent on the profitability of the project. 

Nuisance - covers a range of activities which may impact people or the environment. Odour and external safety are two common examples: If a smell is experienced as being unpleasant it is called a 'stench' or an 'odour'. Odour can lead to mental as well as physical effects. Unpleasant physical effects of odour are: nausea, vomiting, headaches, irritation of the eyes, nose and throat disturbances of sleep, breathing and appetite. Odour can be produced, for example, by: Agricultural manure; odour nuisance from traffic; odour nuisance from industrial sources.

External safety relates to the safety of people living in the neighbourhood of, and ecosystems nearby, industrial activities. The external safety aspects in the following situations may be considered: industrial complexes; nuclear installations; the transport of hazardous substances; storage of pesticides, etc.

Objectives - the status or situation to be achieved once a project has been completed. Objectives are often sector specific, region-specific, national or international, or a combination of these.

It is normal to distinguish:

1. Wider objectives - these are the status or situation to be achieved in a longer time frame; 
1. Immediate objectives - the status or situation to be achieved immediately once a project has been completed.

On-Lending - money is channelled through an intermediary lender. For example an IFI may make a single large loan for a specific sector (e.g. energy efficiency) which is then managed by a national bank and broken-up into a series of small loans which are agreed with specific industrial plants in the country or region.

Open Tender - a procedure where all suppliers interested in a contract can submit a tender.

Operation and Maintenance - refers to the routine costs of project implementation; abbreviated as O&M. It includes all the annual costs related to e.g. labour, material, energy, oil, spare parts etc.

Opportunity Costs - the benefit which is missed by using investment resources in a project instead of in their next best alternative use.

Options - a range of alternative courses of action that may be chosen and assessed against 'doing nothing' (see also: Project Appraisal)

Organisation for Economic Cooperation and Development (OECD) - a group of major industrial countries promoting growth and high employment among its members, fostering international trade and contributing to global economic development. It includes the Task Force Environment for Europe.

Output - the product or results of a project, also referred to as deliverables (see also: Logical Framework Approach).

Overheads - fixed costs borne by a project that do not vary with output over the short term e.g. costs for office space and support.

Ownership - claiming as one's own; experience shows that if people, or an organisation, have been involved in the development of a project they are more likely to be committed to its successful implementation.

Ozone - the ozone layer in the stratosphere contains only minute concentrations of ozone. Nevertheless, this ozone has an important function. It absorbs ultra-violet (UV) radiation from the sun, which is harmful to man, flora and fauna. As has become clear in recent years, the ozone layer is being depleted by a number of substances which are released into the atmosphere by human activities. A depletion in the ozone layer means that the amount of UV radiation reaching the earth's surface increases. A 10% decrease in the ozone content means a 15% increase in the effective dose of UV. The most important gases that contribute to the depletion of the ozone layer are: CFCs (chlorofluorocarbons); Halons (bromofluorocarbons) and some chlorinated hydrocarbons (tetrachloromethane and 1,1,1-trichloroethane).

Ozone also acts as a pollutant in the lowest parts of the atmosphere. It can contribute to acidification and higher incidence of respiratory diseases (e.g. asthma). (See also acidification).

Package - a loose term for a group of related items e.g. a work package would comprise a number of tasks. 'Packaged assistance' is used to describe a situation where a group of related projects are put together in order that their total cost reaches above the minimum threshold of a potential funder e.g. many IFIs will not consider lending less than 5 million ECU.

Participation - taking part in an activity. Public participation concerns informing, consulting and involving members of the public in decision-making.

Pay Back - (or 'pay back period') the period over which the revenue from a project equals the original investment. It is an approximate indicator of financial feasibility. 

Performance - carrying out an act or action (see also: Performance Measure).

Performance Indicators - a variable or variables that allow the verification of changes in the project or show results relative to specified targets.

Performance Measures - generally mean the same as 'indicators' and 'means of verification' (i.e. they specify how to quantify and then how to check the achievement of outputs or objectives) (see: Logical Frame Analysis).

Period of Grace - being allowed to wait for a period of time before money has to be paid. A way of softening a loan.

PERT Chart - a diagrammatic representation of project activities and tasks over the life of the project, with an indication of the resources involved at each stage (see also: GANTT Chart, Work Plan)

Phare Countries - countries in Central and Eastern Europe eligible to take part in the European Union's PhareProgramme. In September 1996 countries in the mainstream programmes were: Albania, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic, Slovenia

Phare Programme - The Phare Programme is a European Community initiative which supports the development of a larger democratic family of nations within a prosperous and stable Europe. Its aim is to help the countries of central Europe rejoin the mainstream of European development through future membership of the European Union.

Phare does this by providing grant finance to support its partner countries through the process of economic transformation and strengthening of democracy to the stage where they are ready to assume the obligations of membership of the European Union. Phare provides know-how from a wide range of non-commercial, public and private organisations to its partner countries. Phare acts as a powerful catalyst by unlocking funds for important projects from other donors through studies, capital grants, guarantee schemes and credit lines. It also invests directly in infrastructure, which will account for more Phare funds as the integration process progresses.

The mains priorities for Phare funding are common to all countries, and include restructuring of state enterprises including agriculture, private sector development, reform of institutions, legislation and public administration, reform of social services, employment, education and health, development of energy, transport and telecommunications infrastructure, and environment and nuclear safety. For countries that have signed Europe Agreements, Phare is the financial instrument of the European Union's pre-accession strategy which will lead them to full membership.

The Phare programme is the world's largest grant assistance effort for central and eastern Europe (see also: Tacis).

PIU - Project Implementation Unit; managing a sector programme or project of the Phare Programme in individual CEEC (See: PMU).

Planning Balance Sheet - a form of cost-benefit analysis that incorporates positive and negative factors that cannot readily be quantified.

PMU - Project Management Unit; managing a sector programme or project of the Phare Programme (See: PIU).

Polluter Pays Principle - the polluter should bear the costs of pollution prevention and control measures. This principle has been endorsed by OECD member countries but it has some clear difficulties for economies in transition.

Pollution - is defined as 'the direct or indirect introduction as a result of human activity, of substances, vibrations, heat or noise into the air, water or land which may be harmful to human health or the quality of the environment, result in damage to material property, or impair or interfere with amenities and other legitimate uses of the environment'. (source: Council Directive 96/61/EC of 24 September 1996 concerning integrated pollution prevention and control. Official Journal No. L 257/26)

Pollution by hazardous materials concerns a wide range of substances and their effects on man and ecosystems. Of the approximately 10 million known substances, about one hundred thousand are used commercially and several thousand are of importance to the environment. In the Netherlands a list of priority substances has been compiled, which contains substances potentially capable of causing serious damage to man and the environment and which occur in concentrations above the negligible risk level. The current list is shown in the table.
 
 

Pre-Feasibility Study - preliminary assessment of project viability that usually takes place in the Identification stage of the project cycle. Pre-feasibility studies generally cover the same subjects as feasibility studies, but do so in much less detail (see: Project Cycle; Feasibility Study).

Presentation - (a) the way the written project proposal is set out (b) introducing the proposal in a meeting with potential funders or stakeholders.

Presentation Skills - the skills required to 'sell' a project proposal to potential funders or stakeholders.

Prioritisation - the process of comparing projects, or parts of projects, and deciding their order of importance (see: Ranking).

Problems with Project Development - A number of problems with project development were encountered in the former centrally planned economies. In particular:

• some project developers had easy access to public money and little incentive to pursue cost-effective solutions 
• project identification was dominated by political priorities and concerns - alternatives and complementary approaches were rarely examined 
• the amount of time and money expended on preparation was limited, leading to problems at the implementation stage 
• implementation was often slow and interrupted because incomplete projects were started prematurely - severe and unexpected shortages of equipment and materials often occurred and delayed progress - many projects remained uncompleted 
• problems with operation and maintenance frequently led to further proposals for new investment - this being seen as the only solution to the mounting problems. 
• environmental problems were sometimes ignored for political or ideological reasons.

Procurement - the purchase of goods, equipment, services, etc.

Procurement Rules - regulations governing competitive bidding in the procurement process. Most funders have their own set of procurement rules which must be used.

Programme - at its simplest a programme is two or more related projects contributing to achieving the same wider objective. 

Programming Cycles - the means by which funders organise project development and implementation (see: Source Book 9.5).

Project - "The concept of 'project' means different things to different users, or reflects different frames of reference. In finance and budgeting terms it is an investment with a specified economic return. In economic analysis a project is a potential income generating activity....In management terms the project notion often connotes a particular organisational unit..."

Projects can be classified in different ways: by function (experiment, pilot, demonstration); by task; by the properties of an organisation; by the technology employed; by sector; by sources of inspiration; by funding

(Source: "The Project Orthodoxy in Development: Re-evaluating the Cutting Edge", E. Philip Morgan, Public Administration and Development, 1983)

Project Accounts - system for monitoring a project's financial results; i.e. its income and its costs

Project Appraisal - (= ex ante studies) a comprehensive and systematic review of all aspects of the project - technical, financial, economic, social, institutional, environmental - to determine whether an investment is viable and an investment should be made. The basic question in any appraisal is whether the project will work and whether it will contribute to the achievement of overall policy objectives.

The findings may be presented in an 'appraisal report' or 'project concept report'. 

Appraisal can be a controlling process or a force for improvement.

(Source: "The St Petersburg Guidelines on Environmental Funds in the Transition to a Market Economy", OED, 1995)

The aim is to ensure that the most effective projects are funded and that costly failures are avoided. Appraisal is a skilled task which has to take a comprehensive and detailed look at the technical, environmental, economic and financial aspects. Outside assistance may well be needed. 

The appraisal process compares options and checks the accuracy and completeness of information. The appraisal can be two stage process - first examining the broad principles and objectives, and then the details (see also: Project Concept Report; Appraisal)

Project-building - a popular term for the project development process - taking an idea and making it into a viable project (see also: Project Development).

Project-building Skills - the skills needed by the project developer in order to take a project through from the initial idea to a successful conclusion. The necessary skills include a good understanding of the whole project development process and its wider context, an ability to work in a multi-disciplinary context, good abilities in negotiating, presenting and communicating. A creative ability to see connections, to innovate and 'get things done'.

Project Concept Report - a term for an appraisal report in which the project is rigorously assessed. Technical, financial, economic, environmental and institutional factors are usually considered 

(see also: Project Appraisal).

Project Cycle - a useful tool for understanding the various stages that any project will probably go through. The same logic applies to simple project ideas within your own organisation and complex projects supported by a number of external funders.
 
 

The basic model includes the following stages:

1. Identification - ideas for potential projects are identified and explored 
2. Preparation - the project idea is carefully developed 
3. Appraisal - the proposed project is rigorously assessed and adjusted if necessary 
4. Funding - decision are taken about funding for the project and how it will be implemented 
5. Implementation and Monitoring - the project is carried-out and periodic checks made to ensure it is running according to plan 
6. Evaluation - the results of the project are assessed and new projects ideas may be generated.

Project Definition - (see: Project Identification).

Project Description - the document that describes a proposed project and which is used to generate initial interest from funders and serves as the basis for further, more detailed project preparation.

A project description will normally comprise, as a minimum: the objectives, background, activities and outputs, the timescale and the budget required.

Project Design - (see: Project Development).

Project Developer - the person or organisation mainly responsible for identifying and preparing a project. It often is the same person or organisation as the Project Sponsor or Project Proposer, but not always (see Project Proposer; Project Sponsor). 

Project Development - a term used to encompass the whole process of project identification and preparation (see also: Project-building).

Project Director - (see also: Project Manager) - the person responsible for the day to day management of a project.

Project Document - the project contract i.e. the contractual agreement on which the project is based.

Project Evaluation - to measure the extent to which a project has achieved its objectives (i.e. is the project successful?). This requires the establishment of baseline information and a choice of indicators. The project is evaluated against its objectives in terms of (a) performance (b) efficiency and (c) impact. Evaluation usually takes place at pre-defined stages while the project is being implemented (e.g. at the end of project phases) and once the project has been completed.

The aim of evaluation is to provide feedback, possibly generating changes in the project implementation or new project ideas. It is vital that the basis for the evaluation is built in to the project proposal at the earliest possible stage. Log Frames are used increasingly as a basis for evaluation exercises.

(see also: Project Cycle; Ex Ante Evaluation; Ex Post Evaluation)

Project Framework - (see: Logical Framework Analysis).

Project Identification - the process of generating project ideas, then testing the options. These may be may be resource led, market based or need based.

From an IFI perspective this involves the identification of projects that appear suitable for support and to which there is a commitment by all sides. Identification may be on the initiative of a government agency, a local or foreign enterprise, an international or commercial financing institution or the IFI at its own initiative (see also: Project; Project Cycle).

Project Identification Sheet - sheet containing only the most basic information about a project.

Project Implementation - funds are disbursed and the project is carried out as planned and to the agreed timescale and budget (see also: Project Cycle).

Project Management - managing project implementation in line with the agreed work plan and budget.

Project Memorandum - another expression for 'project description'.

Project Monitoring - measuring how the project is being implemented and how it is operating - essential for evaluation and measuring performance. Reporting on costs, savings, other benefits, reporting to decision makers, may support generation of new projects. Continuous tracking of a project's progress through collection of specified variables.

Progress is monitored according to the planned methodology and timescale. Monitoring usually covers financial, technical and institutional aspects of the project - the use of resources, measurement of performance and outputs (see also: Project Cycle).

Project Negotiation/Presentation - The parties involved negotiate the detailed requirements for implementation. An agreement is reached and the legal obligations set out in a document

(see also: Project Cycle; Letter Contract; Loan Document).

Project Preparation - (project formulation/design) - serious consideration of a project and its technical, economic and financial feasibility, resulting in a detailed proposal capable of implementation (see also: Project Cycle).

Project Preparation Committee (PPC) - The PPC was set-up following the adoption of the Environmental Action Plan for Central and Eastern Europe (EAP) at the Lucerne 'Environment for Europe' conference in 1993. It is a networking mechanism involving bilateral funders (donors) and IFIs which coordinates and facilitates the financing of environmental investment projects in Central and Eastern Europe and the NIS.

The PPC deals with the identification and preparation of environmentally oriented investment projects. In some cases it also deals with non-investment projects which have a direct impact on priority environmental investments. This may include e.g. the development of environmental action plans or project identification activities. The PPC dies not generally deal with research projects or other projects which are not directly related to investments.

In a typical PPC project, a project proposer will already be in discussion with an IFI, or funder, but requires the involvement of a third party (funder or IFI) to enable project development. Therefore the normal routing of a project through the PPC is via one of its members i.e. an IFI or a funder. It should be realised that the PPC in principle does not review project proposals itself but only facilitates by bringing together funders and IFIs ('matching') once a project concept (initial project description) has been developed. The PPC will only exceptionally advise in the early stages of project preparation before an IFI or funder is involved.

Matching takes place through PPC meeting held twice a year and through informal meeting of PPC officers throughout the year. A third mechanism is through funder meeting for specific regions or sectors. The PPC Secretariat is located at the EBRD. PPC Officers are working at both EBRD and the World Bank (see Section 10.4 Contacts).

Project Preparation Facility (PPF) - (a) the World Bank's project preparation team; it may fund feasibility studies; 

(b) the Phare Project Preparation Facility (PPF) is one of the EC's initiatives to support the preparation and design of capital investments in environment in Central and Eastern European Countries. Two PPFs were successfully implemented in 1992 and 1994, and a new 15 million ECU PPF was launched in 1996 to continue this support.

Project Proposal - the structured document which presents a project idea and describes how it will be realised in practice. A proposal is usually the document submitted to potential funders for consideration.

Project Proposer - the person or organisation putting forward a project or supporting another organisation's project idea (see: Project Developer; Project Sponsor).

Project Screening - preliminary assessment of project ideas by applying agreed selection criteria; a form of appraisal.

Project Sponsor - the person or organisation putting forward a project or supporting another organisation's project idea (see also: Project Proposer; Project Developer).

Project Sustainability - means that the outputs established by a project (e.g. new activities, procedures, organisations, or the functioning of an installation) will continue to work for a length of time once the project has ended. For example if the output of a project is the construction of a waste incinerator, there must be available adequate funds, qualified staff, spare parts and consumables to ensure that it can be operated properly throughout its working life which may be 20 years or more.

Purpose - the reason for doing something, or the point of doing something.

Quasi Equity - forms of capital investment other than cash e.g. subordinated loans, redeemable preference shares.

Ranking - placing projects, objectives or activities, in order of value or priority according to agreed criteria (see: Prioritisation). 

Rapid Assessment - to obtain maximum knowledge with minimum time and resources. Often know as a 'quick and dirty' approach.

Reporting - the type, number and other characteristics of reports to be produced during the course of developing and implementing a project, or carrying out supporting studies. They provide the basis for monitoring and steering a project through its various stages.

Resources - the inputs needed to undertake a project, generally including funds, people, equipment, facilities, raw materials, and possibly physical elements such as land and water.

Restricted Tender - a procedure where only those suppliers who have been invited may submit a tender.

Results - the outputs of certain specified actions (see also: Log Frame Analysis).

Revenue - income (money) earned by a project. This income may be generated through sales or could be in the form of a revenue grant/subsidy by a funder.

Revenue Income - the income generated by the operation of a project through, for example, charges for services.

Revolving Funds - an ongoing credit facility comprising a fund from which money is lent, replenished through repayments and then re-lent, up to a defined limit. Revolving funds can offer very competitive borrowing rates, and they can be grown by returning the interest (over and above inflation) and the principal back into the fund.

Risks - where the number and type of possible future events exceeds the number of events that will actually occur, and some measure of probability can be attached to them (see: Log Frame Analysis).

Risk Assessment - the analysis of risks and assumptions for all the critical elements of a project; also known as 'risk analysis'.

Risk assessment includes the comparison of the risk associated with each project option. It involves identification of the risks, their likelihood of occurring, and their impact on each option, and how the risk may be managed . Risk assessment is part of the process of arriving at a preferred option. The simplest approach is brainstorming to produce a list of risks. Another useful approach is to look at what has happened with similar projects elsewhere. Finally, it is also possible to apply a range of statistical methods, however, it is often impossible to quantify all the parameters (see also: Sensitivity Analysis).

Risk Management - Once the risks attaching to a particular project option have been identified, risk management attempts to reduce their effects. It does this by applying a range of management techniques. For example, it might be possible to take out insurance, to re-plan the project, to carry out further research or implement the project on a pilot basis, or allowance could be made in the budget in the form of contingencies. 

Scoping - a preliminary assessment to define the focus (range and depth of factors) of an environmental impact study (see also: Environmental Impact Assessment; Source Book 9.17).

Screening - an assessment whether an environmental impact analysis is needed for a particular project (see also: Environmental Impact Assessment; Source Book 9.17).

Sector Operations Policies - the analysis of sectors of the economy by IFIs which may determine the focus and priorities of their investments .

Sensitivity Analysis - used to test the project for changes in the assumed values of key variables.

It tries to identify the events which would have the greatest effect on the outcome of a project, and test the impact of events and changes that would make or break the project. 

Sensitivity analysis assesses how changes in the underlying assumptions might affect project outcomes. It takes the identified risks attaching to a project option and points out which of them should be addressed. The analysis can be quantitative or qualitative, but it is really only as good as the quality of the assumptions that are made (see also: Risk Assessment; Source Book 9.16)

Service Charges - handling charges often imposed by financing institutions to cover their administrative costs. 

Sewage - is liquid waste produced by towns and cities; it is often called municipal waste water. The most important groups of substances in municipal waste water are: Oxygen depleting substances; phosphates and nitrogen compounds; bacteria and viruses; heavy metals; organic micropollutants; and salts.

Sewerage - is the system of pipes (sewers) which collect sewage from households and which generally deliver this to a waste water treatment plant, or to a discharge point into a river or other water body.

Short-list - can be used to describe a step in project identification, or appraisal where the most promising (priority) projects on a long-list of projects are selected for further preparation (see also: long-list).

Small Credits - small loans given by banks, commonly through financial intermediaries.

Social Analysis - a systematic review of the groups and communities affected by a project, and how the costs and benefits of the project impact on each of them. It assesses the likely impact of the project on their way of life, which may also include cultural considerations.

Social Partners - representation of the employers and unions.

Soft Loan - a loan at interest below market rates (see also: loan).

Soft Project - a project which is not principally concerned with construction or equipment provision. 'Soft' projects include activities such as institutional strengthening, training, policy reform.

Sovereign Risk Guarantee - the government of a country guarantees the pay back of a loan; i.e. takes part in the credit risk and thus allows the project promoter to have access to capital at a price which otherwise would not have been available.

Stakeholders - people with an interest, or involvement in a project, and/or who are directly or indirectly affected by its results. It should be noted that not all stakeholders are necessarily in favour of a proposed project (See: Actors; Source Book 9.23).

Stakeholder Analysis - a systematic review of the stakeholders in a project, including an assessment of the costs and benefits, advantages and disadvantages for each group. 

Steering Committee - a group of official representatives guiding the project and approving documents; sometimes it is constituted as an Advisory Committee, which offers advice and guidance but has no executive role.

Strategic Framework - the overall aims (wider objectives) of a country's approach to the environment based on analysis of problems, and including a statement of priorities. This sets the context for programme and project development (see also: Strategy).

Strategy - a comprehensive set of objectives and plans for their achievement (Source: EU Tacis Guide). A strategy often sets the broad policy for a particular sector (e.g. waste management) or region (e.g. the 'Black Triangle' Region). (see also: Strategic Framework; Framework; Country Strategy).

Sub-Contractor - many projects are implemented by a company which then uses specific expertise, services or supplies from other companies or individuals. In such cases the managing company (the main or lead contractor) must establish legal agreements (contracts) with such companies or individuals providing expertise, services or supplies - these companies or individuals are known as 'sub-contractors' to the managing company. 

For example, a company managing a training project may use specialist trainers who work for other organisations. In this case the specialist trainers or their companies would be sub-contractors to the managing company. Although it depends on the individual sub-contract agreed, a sub-contractor is usually only responsible for the successful completion of the task they are given, whereas the managing company is responsible for the successful completion of the whole project. 

Subordinated Debt - where one debt is afforded a lower priority for repayment than another.

Subsidy - a transfer of money on terms which are more favourable that those prevailing on the market. Subsidies are usually given by a public agency to stimulate the recipient to make a greater effort and to commit more of their own money than would otherwise happen. Requiring the recipient to contribute gives them an interest in the project's success.

Grants and loans can both provide subsidy effects. For a loan the subsidy is the difference between the actual cost of the loan given and the same amount of money borrowed from a commercial bank/ institution. 

In a soft (or concessional) loan the subsidy is the cumulative difference in interest payments under the subsidised loan rate and what it would be under the market interest rate. The longer the repayment period the greater the subsidy. Operating interest subsidies requires considerable financial skill and can involve high administrative costs.

Sustainable - a project is sustainable when it can provide an acceptable amount of benefits to the target group during a sufficiently long period after the funder's assistance ceases (see also: Sustainable Economic Development).
 
 

Sustainable Development

Sustainable Development

There are many different definitions, but basically this is the concept whereby improvements in quality of life through economic development are not gained at the expense of the environment or of future generations.

"Continued economic and social development without detriment to the environment and the natural resources on which human activity and future development depend"

(Source: Directorate General XI of the European Commission).

"Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs"

(Source: UN World Commission on Environment and Development).

Sustainability Criteria

One way of assessing whether a project is sustainable is to check it against broad criteria, for example: 

1. Reduce use of finite energy and other resources especially those nearing exhaustion 
2. Reduce production or emissions of non-degradable wastes, especially where the environment has little or no capacity to contain them safely 
3. Keep the impact of economic and social activities within environmental carrying capacities at local, regional and global levels 
4. Substitute use of renewable resources for non-renewable resources 
5. Encourage and protect biological diversity at appropriate spatial scales 
6. Avoid irreversible loss or damage to features of the countryside which are naturally, aesthetically or culturally significant to current generations or may be for future ones 
7. Enhance the aesthetic and cultural quality and diversity of the countryside 
8. Increase people's opportunities to enjoy the countryside through a diversity of recreational pursuits 
9. Improve the quality of life by meeting people's needs for amenities and services 
10. Encourage activities which provide rural people with a greater choice of roles which fulfil their economic and social needs 
11. Enable people who are affected by management of the countryside to participate in decisions and their implementation 
12. Take account of the needs of people who are disadvantaged in their quality of life or in their opportunities for enjoying the countryside

Sustainability Indicators

Three types of indicator may be used:

1. State indicators - assess the underlying quality and sustainability of the environment 
2. Pressure indicators - measure the level of pressures affecting sustainability 
3. Response indicators - measure progress on agreed targets and actions designed to influence the pressures

SWOT Analysis - a technique for identifying the Strengths, Weaknesses, Opportunities and Threats of a situation as a basis for discussing project objectives. It can be applied to almost any set of circumstances from the strategic to the local level (see: Source Book 9.14).

Tacis - The Tacis Programme is a European Union initiative for the New Independent States and Mongolia which fosters the development of harmonious and prosperous economic and political links between the European Union and these partner countries. Its aim is to support the partner countries' initiatives to develop societies based on political freedoms and economic prosperity. 

Tacis does this by providing grant finance for know-how to support the process of transformation to market economies and democratic societies. In its first six years of operation, 1991-1996, Tacis has committed ECU 2807 million to launch more than 2.250 projects. 

Tacis works closely with the partner countries to determine how funds should be spent. This ensures that Tacis funding is relevant to each country's own reform policies and priorities. As part of a broader international effort, Tacis also works closely with other donors and international organisations. 

The main priorities for Tacis funding are public administration reform, restructuring of state enterprises and private sector development, transport and telecommunications infrastructures, energy, nuclear safety and environment, building an effective food production, processing and distribution system, developing social services and education (see also: Phare).

Tangible Benefits - the measurable positive changes brought about by implementing a project. They are the justification for the project, and include: savings made as a result of ceasing current activities; efficiency savings from improved systems; savings from centralising/concentrating activities; sales of equipment or assets; increases in productivity or output; changes resulting in improved income.

Targets - generally means the same as 'outputs' or 'results'. These need to be reached (e.g. 200 people to be trained in 12 months time) if objectives are to be achieved. Progress can be monitored against the defined targets.

Tasks - pieces or amounts of self-contained work set, or undertaken, and linked together within a project.

Technical Assistance - help provided specifically for institutional development, strengthening and capacity building, usually in terms of advice, guidance, studies, training, information, know how, and similar actions. 

Tender - (a) request written offers (proposals) to undertake specified work or supply goods or services at a specified price (b) the written offer (proposal) itself.

(see also: Procurement).

Tendering Procedure - a procedure for procuring services or goods in a transparent and fair manner. 

Terms of Reference (TOR) - task description for a services project, e.g. consultancy. It is the set of guidelines prepared by the organisation contracting out the work which establish the objectives, tasks, project approach, results expected, logistics, etc. (see also: Consultants; Feasibility Studies; Source Book 9.27)

Third party financing - (see: Co-financing)

Tied Aid - a term used to indicate where support is provided on condition that use is made of the funder's own resources e.g. a grant for hospital supplies is made on condition that they are purchased from the funder's country. 

Tied Assistance - a term used to indicate where support is provided on condition that use is made of the funder's own resources e.g. a grant for a training project is provided on condition that the consultants providing the training come from the funder's country.

Time Management - managing in line with an agreed timetable and project milestones (see also: GANNT Chart; PERT Chart; Critical Path Analysis).

Timing - (a) the time required for project preparation (b) when best to submit a project.

Time Value of Money - this is the phrase sometimes used to explain the idea that money has a different value at different stages in the project's implementation/ operation. This is a concept used extensively in Cost Benefit Analysis.

(a) Discount Rates

The discount rate can be set by the organisation providing the funding. They will normally choose a rate close to present and expected bank rates. This is usually between 10 and 20%, but can be as high as 30%. Alternatively you can set your own discount rate, and this is likely to be either (i) the interest you are having to pay to borrow money, or (ii) the return expected from a alternative proposal.

(b) Present Value

Is smaller the longer the time period and the higher the discount rate. You can look up present value in mathematical tables, and apply the formula PV=FV (1+i)^-n where PV = Present Value; FV = Future Value and i = discount rate

(c) Net Present Value

Converts all costs and savings over an agreed time period to their Present Value. The Net Present Value is the difference between the Present Value of savings and the Present Value of costs. The NPV must be positive if a project is to be considered worthwhile. 

Where the discount rate used is the market interest rate, a positive NPV means that the project could be financed by borrowing at market rates.

Where the discount rate used is the expected return from an alternative project, a positive NPV means that the project has a higher rate of return than the alternative.

(d) Internal Rate of Return

This is the discount rate at which the project's NPV equals zero. IRR is usually calculated by graphing the NPV against the discount rate and finding where NPV equals zero.

If the calculated IRR is the market interest rate, the project should be funded.

If the calculated IRR is the return expected from alternative proposals, then you would expect the project being evaluated to provide a higher yield.

(see also: Discounted Cash Flow; Discounting; Discount Rate; Net Present Value; Internal Rate of Return; Cost Benefit Analysis).

Trans-Border - a project crossing national boundaries; sometimes referred to as transboundary.

Transboundary - (see: Trans-Border).

Trust Fund - relatively small amounts of grant funds that banks may use for preparation of projects.

Verification - process of establishing or confirming the accuracy of something.

Vision - imaginative plan, foresight (see also: Mission)

Wider Objective - the status or situation to be achieved over the longer time frame and to which the project will contribute (e.g. sustainable water management in the year 2030).

Win-Win Project - a project which is economically attractive (e.g. makes an industrial process more efficient) and which also provides environmental benefits (e.g. by reducing environmental pollution).

With-Without Project Analysis - comparison of the net benefit with the project and the net benefit without the project. This is not the same as a 'before and after' comparison because even without the project the net benefit in the project area may change.

Work Package - a fairly self-contained group of tasks in a work programme (see also: Work Plan; GANTT Chart).

Work Plan - a detailed plan setting out how a project will be carried-out. It will normally comprise the elements referred to in Source Book 9.24 

(see also: Activity; Task; Work Package; GANTT and PERT Charts; Critical-Path Analysis; Milestone; Resources)
 
 

This lists some useful further reading for advice on selected topics.

The list details some of the publications used in writing this Manual. There is a great deal of literature available but, unfortunately, much of it is difficult to read; much of it is written from the perspective of the potential funder.

Many of these publications, in turn, suggest further sources of reading and provide details of useful contacts. 
 

FURTHER READING

1) Alternative Sources of Finance for Small and Medium-sized Projects in Central and Eastern Europe and the former Soviet Union - EBRD, March 1996 

2) Annotated Glossary of Terms Used in the Economic Analysis of Agricultural Projects, taken from J. Price Gittinger, Economic Analysis of Agricultural Projects, The World Bank, 1994 

3) Assessment of G-24 Assistance to the Countries of Central and Eastern Europe in the Environment Sector - PA Consulting Group for the European Commission, February 1993 

4) Case Study of Environmental Expenditure and Investment in Six Selected CEEC, Final Report, COWIconsult, September 1995 

5) Dictionary of Ecology and Environment, third edition, 1995, edited and published by Peter H. Collin 

6) Dictionary of Economics - G. Bannock & W. Manser, 1995 

7) Dictionary of Environment and Sustainable Development - A. Gilpin, 1996 

8) Dictionary of Finance - G. Bannock, R.E. Baxter, E. Davis, 1992 

9) Directory of Funding Sources for Environmental NGOs. Jerome Simpson and Christophe Jourdin - Regional Environmental Centre, Szentendre, January 1997. 

10) Economic Appraisal of Environmental Projects and Policies - OECD, 1995 

11) Economics of Project Analysis - A Practitioner's Guide. William A. Ward, Barry J. Deren, Emmanuel H. D'Silva, Economic Development Institute of The World Bank, Washington, USA, 1991 

12) Effectiveness of International Financial Instruments for Environmental Investment in CEEC: Recipients' Perspectives, Final Report. Bundesministerium für Umwelt, Österreich; UK Department of the Environment, Band 37/1995 

13) 'Environment for Europe', Third Ministerial Conference, 23-25 October 1995, Sofia - Conference Proceedings and Papers 

14) Environment to the year 2000; progress and strategy paper, European Commission, Directorate General for External Economic relations, Phare, (Lead author: Julian Wilson) 

15) Environmental Assessment - Practice Advice Note No. 13, The Royal Town Planning Institute, September 1995 

16) Environmental Assessment Sourcebook. Volume I - Policies, Procedures, and Cross-Sectoral Issues, World Bank Technical Paper Number 139, The World Bank, Washington, USA, 1991 

17) Environmental Assessment Sourcebook. Volume II - Sectoral Guidelines, World Bank Technical Paper Number 140, The World Bank, Washington, USA, 1991 

18) Environmental Assessment Sourcebook. Volume III - Guidelines for Environmental Assessment of Energy and Industry Projects, World Bank Technical Paper Number 154, The World Bank, Washington, USA, 1991 

19) (The) Environmental Challenge for Central and Eastern European Economies in Transition. Edited by B. Moldan and J. Klarer. C John Wiley & Sons Ltd., London, 1997 

20) Environmental Funds in Economies in Transition, Centre for Cooperation with the Economies in Transition, OECD, 1995 

21) Environmental Impact Assessment - European Commission Directorate General IB D4, June 1996 

22) Environmental Procedures, European Bank for Reconstruction and Development, 1992 

23) Environmental Support to the Baltic States, Poland and Western Russia - C. Berg. Swedish Environmental Protection Agency 

24) Facilitating Foreign Investment - Government Institutions to Screen, Monitor, and Service Investment from Abroad. Louis T. Wells, Jr. and Alvin G. Wint, Foreign Investment Advisory Service Occasional Paper 2. World Bank, Washington, USA, 1991 

25) Financing Environmental Quality in Central and Eastern Europe; An Assessment of International Support. International Institute for Applied Systems Analysis, Laxenburg, Austria, 1995 

26) Financing with the EBRD: A guide for companies and entrepreneurs considering financing projects or investing in the countries of Central and Eastern Europe and the CIS - EBRD, March 1996 

27) Guide: The Environmental Action Programme for Central and Eastern Europe - European Union Tacis Programme, March 1996 

28) Guide to Energy Efficiency Bankable Proposals - European Commission Directorate General for Energy - DGXVI (THERMIE and SYNERGY Programmes) and EBRD, 1997. 

29) Guide to Project Management (British Standard BS 6079:1996), British Standards Institution. 

30) Guide to the Preparation of Project Proposals - IUCN for the Bulgarian Ministry of Environment 

31) Guidelines for Project Appraisal; an introduction to the principles financial, economic and social cost-benefit analysis for developing countries. Kuyvenhoven, A. and L. Mennes. 1985. Government Printing Office, The Hague. 

32) Guidelines to Investors in Environmental Projects, produced by Ernst and Young Bulgaria, jointly published by PharePMU and the Bulgarian Ministry of Environment, 1996 

33) Handbook on Consulting Services, A Guide for the World Bank Staff, Procurement Policy and Coordination Unit Operations Policy Department, The World Bank, 1994 

34) International Financing Institutions' Project Cycle Conceptual Paper - Environment for Europe Task Force for the Implementation of the Environmental Action Programme for Central and Eastern Europe Project Preparation Committee, PPC Officers at EBRD and the World Bank, May 1995 (PPC/TF(95)3) 

35) Managing projects in Developing Countries. Editor John Cusworth, Tom R Franks, 1995 

36) Manual Project Cycle Management; integrated approach and logical framework, Commission of the European Communities, Evaluation Unit methods and instruments for project cycle management, no 1, February 1993 

37) Operational Strategy of the Global Environment Facility - The Global Environment Facility, 1996 

38) Preparation of Environmental Projects in Bulgaria - G. Chabrzyk for the Bulgarian Ministry of Environment, 1995 

39) Priority Environmental Projects - Project Preparation Unit, Bulgarian Ministry of Environment, October 1995 

40) Procurement Policies and Rules for projects financed by the European Bank for Reconstruction and Development, London, UK, January 1992 (rev. August 1994). 

41) Programs in Industrial Countries to Promote Foreign Direct Investment in Developing Countries. Thérese J. Bélot and Dale R. Weigel, Foreign Investment Advisory Service Occasional Paper 3. World Bank, Washington, USA, 1992 

42) Project Cycle. Warren C. Baum, International Bank for Reconstruction and Development/The World Bank, Washington, USA, 1982 

43) St Petersburg Guidelines on Environmental Funds in the Transition to a Market Economy - OECD, 1995 (OCDE/GD(95)108)
 
 

This lists suggests a number of contacts for advice on project preparation and funding at:

• some of the bilateral and international agencies; 
• National Environmental Funds (and related Funds) in Central and Eastern Europe

You can add your own contacts and complete the missing information.

Note: At the time of writing (July 1997) complete information was not available on the contact details of all countries giving assistance, nor all Environment Funds. 
 

BILATERAL AND INTERNATIONAL AGENCIES

AUSTRIA
Gerhard Omersu
Ministry of the Environment, Youth and Family Affairs
Stubenbastei 5, 1010 Vienna
Austria
Tel: + 43 1 515 22 1611
Fax: + 43 1 515 22 7626

CANADA
Daniele Rondeau (Ukraine)
Thenbe Kananga (Russia)
Canadian International Development Agency
Place du Centre
Promenade du Portage, Hull
Quebec KIA O64
Canada
Tel: + 1 819 997 5456
Fax: + 1 819 953 5469

DENMARK
Karsten Skov
Danish Environmental Protection Agency
Division for Eastern Europe
Strandgade 29 
DK-1401 Copenhagen K
Denmark
Tel: + 45 32 66 01 00
Fax: + 45 32 66 04 79

FINLAND
Jaakko Henttonen
Project Director
Ministry of Environment
Ratakatu 3, 00120 Helsinki
Finland
Tel: + 35 80 9 1991 9505
Fax: + 35 80 9 1991 9515

FRANCE
Andre Yatchinovsky
Ministry of Environment
20 Avenue de Segur
75302 Paris 07 SP
France
Tel: +33 1 42 19 17 76
Fax: +33 1 42 19 17 72

GERMANY
Rolf Huchthausen
Uwe Tager
Federal Ministry of Environment of Germany
Bernkasteler Strasse 8
Postfach 12 06 29
53048 Bonn
Germany
Tel: +49 228 30 52 376
Fax: +49 228 30 53 338

NETHERLANDS
Reginald Hernaus
Ministry of Housing, Spatial Planning and the Environment
PO Box 30945, 2500 GX The Hague
Netherlands
Tel: +31 70 33 94 679
Fax: +31 70 33 91 306
Kerst Doornhof
Senter (Ministry of Economic Affairs)
PO Box 30782, 2500 GS
The Hague
Netherlands
Tel: +31 70 361 0404
Fax: +31 70 361 4430 

NORWAY
Paul Hofseth
Ministry of the Environment
PO Box 8013, Dep Oslo
0030 Oslo
Norway
Tel: + 47 22 24 59 60
Fax: + 47 22 24 95 61

SWEDEN
Marianne Tegman
Swedish International Development Co-operation Agency (SIDA)
S-105 25 Stockholm
Sweden
Tel: + 46 8 698 5106
Fax: + 46 8 21 4529

SWITZERLAND
Federal Office of Environment, Forests and Landscape
Hallwylstrasse 4
3003 Berne
Switzerland
Tel: + 41 31 322 93 86
Fax: + 41 31 351 31 87

UNITED KINGDOM
Jaime Reynolds
Department of the Environment
Romney House, Room A2.09
43 Marsham Street
London SW1P 3PY
U.K.
Tel: + 44 171 276 8450
Fax: + 44 171 276 8897
Heidi Jones
Stephen Lowe
Department of the Environment
Romney House, Room A2.08
43 Marsham Street
London SW1P 3PY
U.K.
Tel: + 44 171 276 8735
Tel: + 44 171 276 8655
Fax: + 44 171 276 8897

UNITED STATES
Melody Bacha
United States Agency for International Development (USAID), Room 4440
2301 C Street NW
Washington DC 20523
USA
Tel: + 1 202 647 7315
Fax: + 1 202 647 6962
 

Contacts in Other Organisations

European Union
Ben Griepink
European Commission
DG1/L3 (Phare),
Rue de la Loi 200
B-1049 Brussels 
Belgium
Tel: + 32 2 29 50 990
Fax: + 32 2 29 57 502

Phare Information Unit
European Commission
DG1 A/F6
1049 Brussels
Belgium
Tel: + 32 2 299 1444
Fax: + 32 2 299 1777

Note. A separate Address Book giving EU contact points in all Pharecountries is available.

Hans-Jorn Hansen
Tacis Information Unit
European Commission
DGI/A (Tacis)
Rue de la Loi 200
B-1049 Brussels 
Belgium
Tel: + 32 2 295 1545
Fax: + 32 2 296 8024

Note. A separate Address Book giving EU contact points in all Tacis countries is available.

Timo Makela
European Commission
DGXI/A/4 (Environment)
Rue de la Loi 200
B-1049 Brussels
Belgium
Tel: + 32 2 296 9517
Fax: + 32 2 299 4123 

European Bank for Reconstruction and Development

Peter Coveliers
PPC Secretary, 
EBRD
One Exchange Square
London ED2A 2EH
Tel: + 44 171 338 6555
Fax: + 44 171 338 6964

Koen Peters
PPC Officer
EBRD
One Exchange Square
London ED2A 2EH
Tel: + 44 171 338 6129
Fax: + 44 171 338 6964

Johan Bastin 
Municipal and Environmental Infrastructure
EBRD
One Exchange Square
London EC2A 2EH
United Kingdom
Tel: +44 171 338 6340 / 338 6694
Fax: +44 171 338 6964

Bernard Jamet
Energy Efficiency
EBRD
One Exchange Square
London EC2A 2EH
United Kingdom
Tel: +44 171 338 7155
Fax: +44 171 338 6942

EBRD General Enquiries
Tel: + 44 171 338 7236/7931
Fax: + 44 171 338 6690

Note: The EBRD has local offices in most CEEC.

European Investment Bank

Peter Carter
EIB
100 Boulevard Konrad Adenauer
L-2950 Luxembourg
Tel: + 352 43 79 2485
Fax: + 352 43 79 2492

The World Bank (including the Global Environment Facility)

Ralph Braccio
PPC Officer
The World Bank
1818 H Street, NW
Washington, DC 20433
USA
Tel: + 1 202 458 5497
Fax: + 1 202 477 0711

Peter Kalas
The World Bank
1818 H Street, NW
Washington, DC 20433
USA
Tel: + 1 202 458 5647
Fax: + 1 202 477 0711

Note. The World Bank has local offices in many CEEC.

International Finance Corporation

Jerome Esmay
IFC
1850 "I" Street NW
Room I -10145
Washington DC
USA
Tel: + 1 202 473 7954
Fax: 1 202 670 9495

Nordic Environment Finance Corporation

Harro Pitkänen
NEFCO
PO Box 249, Helsinki, FIN-00171
Finland
Tel: + 358 0 1800 344
Fax: + 358 0 630 976

Regional Environmental Centre for Central and Eastern Europe

Head Office
Ady Endre Ut 9-11
2000 Szentendre
Hungary
Tel: + 36 26 311 199
Fax: + 36 26 311 294

Note. The Regional Environment Centre has local offices in most Central and Eastern European Countries.

Japanese Special Fund

(Co-sponsored by the Regional Environmental Centre for Central and Eastern Europe)

Seiichi Mimura
Japanese Special Fund
Ady Endre Ut 9-11
2000 Szentendre
Hungary
Tel: + 36 26 311 199
Fax: + 36 26 311 294

Nordic Investment Bank

Nils Lindstedt
Nordic Investment Bank
PO Box 249
FIN-00171
Finland
Tel: + 358 0 18001
Fax: + 358 0 6221504

NATIONAL ENVIRONMENTAL FUNDS IN CENTRAL AND EASTERN EUROPE

National Environmental Protection Fund of Bulgaria

Mrs. Evdokia Maneva
Minister
Ministry of Environment and Water
67 W. Gladstone St.
1000 Sofia, Bulgaria
Tel: (359) 2 88 25 77
Fax: (359) 2 80 32 24

Bulgarian Trust Eco-Fund (Bulgaria's "Debt-for-Environment Swap" Fund)
Mr. Dimiter Nenkov
Executive Director
National Trust Eco-Fund
67B Shipchenski Prohod Boulevard
1113 Sofia, Bulgaria
Tel: (359) 2 973 36 37, 973 38 16
Fax: (359) 2 973 38 18

Czech State Environmental Fund

Mr. Ales Vychodil
President
Czech State Environmental Fund
Kaplanova 1931 / 1
148 Praha 4, Czech Republic
Tel: (420 2) 793 6588
Fax: (420 2) 793 6585

Estonian Environmental Fund

Mr. Peep Pobbul
Managing Director
Estonian Environmental Fund
Ravala pst. 8-C 109 p/k 36
EE-0001 Tallinn, Estonia
Tel: (372) 646 6583
Fax: (372) 646 6584

Hungarian Central Environmental Protection Fund

Mr. Laszlo Kiss
Head of Central Environmental Protection Fund Secretariat
Ministry of Environment and Regional Policy
Fo u. 44-50
Budapest, H-1011 Hungary
Tel: (36 1) 457 3042
Fax: (36 1) 457 3413

Latvian Environmental Investment Fund

Ms. Indra Samite
Director
Latvian Environmental Investment Fund
Pels iela 17
LV 1050 Riga, Latvia
Tel: (371) 7 222 427
Fax: (371) 7 221 729

Latvian Environmental Protection Fund

Mr. Janis Brunienieks
Director
Latvian Environmental Protection Fund
17 Pils str.
LV-1050, Riga, Latvia
Tel: (371) 7 222 427
Fax: (371) 7 221 729

Lithuanian Environmental Investment Fund

Mr. Zilvinas Martinkus
Director
Lithuanian Environmental Investment Fund
Lukiskiu str. 5-201
LT 2600 Vilnius, Lithuania
Tel: (370 2) 250 966
Fax: (370 2) 224 535

Polish National Fund for Environmental Protection and Water Management

Mr. Jozef Zegar
President
National Fund for Environmental Protection and Water Management
ul. Konstruktorska 3A
00-673 Warszawa, Poland
Tel: (48) 22 49 38 46
Fax: (48) 22 49 72 72

Polish EcoFund (Poland's "Debt-for-Environment Swap" Fund)

Mr. Maciej Nowicki
EcoFund President
ul. Belwederska 18a
00-762 Warszawa, Poland
Tel: (48) 22 400-901
Fax: (48) 22 400-942
E-mail: ekofund@waw.pdi.net

(Poland has 49 provincial environmental funds, of which two of the larger are listed below.)

Katowice Provincial Fund for Environmental Protection

Mr. Jerzy Swaton
President of the Management Board
Katowice Provincial Fund for Environmental Protection
ul. Powstancow 41a
40-024 Katowice, Poland
Tel: (48-3) 155-4790
Fax: (48-3) 155-1789

Krakow Provincial Fund for Environmental Protection

Mr. Krzysztof Bolek
President of the Management Board
Krakow Provincial Fund for Environmental Protection
ul. Garbarska 18
31-131 Krakow, Poland
Tel: (48-12) 22-94-99
Tel/Fax: (48-12) 22-96-60

Piotrków Trybunalski Provincial Fund for Environmental Protection

Mr. Jan Olech
President of the Management Board
ul. Prónicha 25
97-300 Piotrków Trybunalski
Tel: 48 44 47 42 01
Fax: 48 44 47 57 82

Slovak State Environmental Fund

Mr. Pavol Mertus
Director
State Environmental Fund
Karloveska 2
842-18 Bratislava, Slovakia
Tel: (421)7 724-909
Fax: (421)7 728-206

Slovenian Environmental Development Fund

Mr. Ljubo Zuzek
Director
Environmental Development Fund
Trg republike 3
1000 Ljubljana, Slovenia
Tel: (386) 61 125 51 78
Fax: (386) 61 125 20 91