UNITED NATIONS ENVIRONMENT PROGRAMME
GLOBAL ENVIRONMENT FACILITY (GEF) PDF BLOCK B REQUEST

Project Title:	Support to the National Plan of Action for the Protection of the Arctic Marine Environment from Anthropogenic Pollution in the Russian Federation.
GEF Implementing Agencies: 	United Nations Environment Programme (UNEP)
	in collaboration with World Bank.
Executing Agencies:	Advisory Committee on Protection of the Sea
	Russian Inter-Agency “Task Team for the preparation of the National Plan of Action for the Protection of the Marine Environment from Anthropogenic Pollution in the Arctic Region of the Russian Federation.”
	Requesting Country:	The Russian Federation
Eligibility:	The Russian Federation is eligible under paragraph 9(b) of the GEF Instrument. The proposed project is consistent with the relevant provisions of regional and global agreements relating to International Waters to which the Russian Federation is a signatory and/or contracting party
GEF Focal Areas:	International Waters with relevance to Biological Diversity
GEF Programming Framework:	Operational Programme #10 - Contaminants-Based Operational Programme

Estimated Total Project Costs:	[15 million US $]
PDF-B Funding:
	GEF:		306,000
	Co-financing:
		ACOPS	  33,000
		Canada	  50,000
		Denmark	  70,000
		Russian Federation	171,000
		Sweden	  70,000 (to be confirmed)
		U.S.A.	  80,000
	Total Co-financing	474,000
Total:			780,000

Block A Grant Awarded:	No
Operational Focal Point Endorsement:
Mr A.M. Amirkhanov, GEF Operational Focal Point, State Committee of the Russian Federation on Environmental Protection, 25 May 1999.

IA Contact:	Mr Ahmed Djoghlaf, Executive Co-ordinator, UNEP/GEF Co-ordination Office, UNEP, Nairobi, Tel: 254-2-624166; Fax: 254-2-623557; Email: Ahmed.Djoghlaf@unep.org

1.	Background and Context (Baseline Course of Action)

1.1	The Arctic Ocean is bordered by six states - Canada, Denmark (in right of Greenland), Iceland, Norway, the United States (in right of the State of Alaska) and the Russian Federation. Due to their proximity to the arctic basin, Finland and Sweden joined with these states in an agreement for an Arctic Environment Protection Strategy, concluded in Rovaniemi, Finland in 1991. One outgrowth of this agreement was the commissioning, by all eight states, of a comprehensive assessment of the State of the Arctic Marine Environment in 1993, published in summary form in 1997 under the title "State of the Arctic Environment Report". In 1998, all the supporting scientific and socio-economic assessments were published in a single volume entitled "AMAP Assessment Report: Arctic Pollution Issues".
1.2	The completion of these two authoritative documents only three years after the commencement of the Arctic Monitoring and Assessment Programme (AMAP) reflects the high level of commitment among the arctic nations to understanding Man's impact on conditions in the Arctic. The range of topics covered by the assessment include demographics, cultural heritage, fisheries, chemical contamination, radioactive contamination, threats of oil pollution, climate change, ozone depletion and the effects of increased solar irradiance, arctic haze, and acidification. 
1.3	 A Working Group on "Pollution in the Arctic Marine Environment" (PAME), established under the aegis of the Rovaniemi agreement was mandated  to identify and prioritize legislative, political, scientific and technical issues to be addressed by the arctic states. In accordance with the recommendations of the Global Programme of Action for the Protection of the Marine Environment from Land-Based activities, the PAME report advocates the preparation of a Regional Programme of Action for the Arctic (RPA - Arctic) and coherent National Action Programmes (NPAs). Preliminary definition and analyses of sources of degradation for the Arctic region of the Russian Federation were carried out by ACOPS and provided to PAME as input to the preparation of such a framework document laying out the preparatory steps required to initiate concrete actions, entitled “Regional Programme of Action for the Protection of the Arctic Marine Environment from Land-Based Activities", subsequently adopted by the Ministerial Conference of the Arctic Council in September 1998. Whilst this defines the framework and basis for future actions required to protect the Arctic from the adverse environmental consequences of land-based activities it defines neither the priorities, nor the costs of interventions of a remedial or mitigatory nature.  
1.4	Many of the known transboundary threats and impacts emanate from conditions in the Russian Federation (Annex 1 - Appendix 2 from the RPA-Arctic). Some of these are short-range and specific, such as the damage caused by metal smelting emissions from Norilsk and Nikel, especially the latter which is close to the Norwegian and Finnish borders of the Russian Federation. Two thirds of heavy metals in the atmosphere of the high Arctic originate from industrial activities on the Kola Peninsula, the Norilsk industrial complex, the Urals (outside the Arctic) and the Pechora Basin. Some contaminants pose threats to the entire Arctic such as radioactive wastes from both military and civilian activities in the Russian Federation. Similarly, the threats of regional and transboundary pollution from runoff are derived primarily from the Russian Federation which is drained by three of the four largest rivers (Yenisei, Ob, Lena and Mackenzie) discharging to the Arctic Ocean. 
1.5	 The intermediate range transboundary effects of activities in Russian Federation are therefore seen in the other arctic states, all of which are developed countries. However, because of the role of the Arctic Ocean in the global oceanic circulation, larger-scale, indeed global, transboundary effects may be manifested over longer (c. 1,000 yr.) time scales. The surface waters of the East Greenland Current, which continues as the West Greenland Current into Baffin Bay and then moves in a southerly direction along the eastern seaboard of North America, are supplied by the Arctic Ocean. This flow is augmented by the outflow from the Arctic through the Canadian Archipelago. More importantly, both the intermediate and deep waters of the Atlantic, including the Western Boundary Current, are partially supplied by surface flows from the Arctic that downwell and form waters at various depths in the vicinity of Iceland - the Greenland-Iceland overflow. The North Atlantic circulation is part of the global oceanic circulation as reflected by Stommel's "Tour de Force". Thus, purely from the perspectives of oceanic circulation and water quality the Arctic Basin has global significance invoking far ranging transboundary concerns. 
1.6 The Arctic Ocean is of global significance in terms of biological diversity since many of the marine species are endemic to this ocean. Well known examples of such species include the polar bear, narwhal, arctic char and walrus. A similar situation prevails for the adjacent land animals with reindeer/caribou, arctic fox and arctic hare being obvious examples. The terrestrial floral diversity is also unique particularly in the case of lichens with numerous species being endemic to the Arctic. The preservation of such species in the context of the maintenance of global biodiversity is thus of global interest and concern and contaminant levels in some Arctic birds and mammals exceed thresholds associated with reproductive, immunosuppressive, and neurobehavioural effects in laboratory animals. Eggshell thinning is known to occur in some Arctic predatory birds as a consequence of levels of DDE, whilst cadmium levels are high enough in some terrestrial vertebrates to pose a threat of kidney damage.
1.7 The present proposal is made against the background of previous multilateral co-operation in the Arctic, under the Rovaniemi agreement and more recently under the Arctic Council to which the same eight states are party. A whole-arctic assessment has been completed, and the causes of damage or threats have largely been identified providing guidance to the countries regarding individual actions required. The next step in the process is the preparation of National Action Plans, or National Programmes of Action, that take account inter alia of the issues and priorities identified through the previous arctic consultative processes. 
1.8 In August 1998, the Russian Federation established an Inter-Agency "Task Team for the Preparation of the National Programme of Action for the Protection of the Marine Environment from Land-Based Activities in the Arctic Region of the Russian Federation". The Task Team has been chaired by the Chairman of the State Committee for the Development of the North (Goskomsever). The Task Team includes, as members, senior representatives of the Ministry of Natural Resources, the State Committee for the Protection of the Environment and Natural Resources, the Ministry of Defence, the Ministry of Science, the Ministry of Economics, the Ministry for Emergencies and the Ministry of Food and Agriculture. The Task Team meetings are also attended by representatives of the indigenous peoples of the Russian arctic and of industrial combines, thereby widening the stakeholder community involvement.
1.9 In support of this Russian initiative three deputies of the State Duma of the Russian Federation (the Chairman of the Mandate Commission of the State Duma, the Chairman of the State Duma Committee for Problems of the North, and the Deputy Chairman of the Committee for Ecology of the State Duma) and the Advisory Committee on Protection of the Sea (ACOPS) concluded an agreement in February 1998 on "Collaboration for the Development and Implementation of the National Programme of Action for the Protection of the Marine Environment from Land-Based Activities in the Arctic Region of the Russian Federation". Part of this agreement supports the creation and utilization of an International Task Team to address relevant issues in the development of the National Action Programme.
1.10 In concert with the establishment of the Inter-Agency Task Team, in October 1998, a Conference of Official Representatives of the State Duma and the Government of the Russian Federation formulated and adopted a Resolution in relation to the development and elaboration of a National Plan of Action for the arctic marine environment. This is attached as Annex 2 to this proposal. Of the eight arctic states: Canada, Denmark, Iceland, Finland, Norway, Sweden, and the United States, consistent with their developed status, have the expertise and financial resources to undertake the preparation of National Action Plans. The Russian Federation, in contrast while having the necessary expertise, does not have the financial resources to cover the entire cost of developing its National Action Plan for the Arctic.
1.11 The project that will result from this PDF-B grant will provide a basis for the resolution of Russian national management problems regarding activities and contaminant sources affecting the arctic marine environment. Without the support provided by such a project, it will not be possible for the Russian Federation to undertake the far-ranging analyses required to develop an effective and operational plan of action to address both the national and transboundary effects of anthropogenic pollution. The execution of the project will serve to accelerate the satisfaction of Russian commitments to the Arctic Council and to the Global Programme of Action for the Protection of the Marine Environment from Land-Based Activities.
1.12 The GEF programming context for this proposal is Operational Program number 10 - the Contaminants-based Operational Program and more specifically that component dealing with Land-based activities demonstration activities which states: “Project preparation should include an analysis of the priority contaminants, the barrier being removed, and a strategy for implementing needed baseline and additional actions. These demonstration projects may be useful for testing strategies countries might wish to pursue under the Global Programme of Action for land-based activities that degrade marine waters.” (para 10.13, GEF Operational Programs.).

2.	Summary Project Objectives and Description

2.1 The project that will result from this project development facility grant will focus on, but not be confined to pre-investment studies of the identified priority hot-spots with significant transboundary consequences and formulation of a comprehensive National Plan of Action to meet the obligations of the Russian Federation in respect of pollution of the Russian Arctic from land-based anthropogenic sources. Elements of this National Plan of Action will include support to: the development of necessary legal instruments, standards, monitoring and enforcement mechanisms; development of appropriate policies regarding future development activities in the Russian Arctic; establishment and strengthening of institutional and economic mechanisms needed to strengthen protection of the Arctic marine environment from anthropogenic activities. Given the presumed importance of the investment component of the full project, it is anticipated that the World Bank will act as co-implementing agency of the full project. Discussions with the World Bank are on-going, and the final agreement is expected at a very early stage during PDF-B execution. Contacts are been taken with other financial institutions as a possible complement to or substitute of the World Bank participation. The role of the World Bank in the PDF-B phase should be to participate actively in the preparation of the hot-spot analysis, in the analysis of existing practices in the preparation of pre-investment studies, and in the development of guidelines for their future preparation. This will ensure the participation of the World Bank in the full project, particularly in the preparation of pre-investment studies and subsequent concrete investments.

2.2 The main activities of the full project will be:

a) Organisation of on-the-ground remedial action
		- preparation of pre-investment studies for 6-8 priority hot-spots;
		- organisation of concrete investment, on the basis of the pre-investment studies;

b) Legislation and policy reforms
		- implementation of appropriate policies regarding future development activities in the 
		  Russian Arctic;
		- development and implementation of the legislation relevant to the environmental 
		  protection of the Russian Arctic;

c) Institutional strengthening and capacity building
		- establishment and strengthening of institutional and economic mechanisms needed for 
		  the protection of the Arctic marine environment from anthropogenic activities;
		- enhancement of the existing capacity for environmental management in the Russian
		  Arctic. 

Pre-investment studies

2.3 Pre-investment studies can be defined as the set of measures necessary and sufficient for determining the possibility and expediency of capital investment in a given project. Such studies should include technical, economic, financial, social and other aspects and should be presented in such a way that will encourage potential partners to invest in the protection of the marine and coastal environment of the Arctic region of the Russian Federation. It is expected that new pre-investment studies will enhance chances for timely and efficient investment in the elimination of the environmental "hot spots".

2.4 At present in the Russian Federation, there is no law laying out the requirements for pre-investment ecological studies. The practice for new projects and projects of significant expansion and reconstruction has been the ad-hoc preparation of, often insufficient, documentation on technical, financial and ecological aspects. Since the current system of preparation of pre-investment studies in the Russian Federation is not adequate, one of the specific objective of the PDF-B grant is to analyse selected pre-investment studies which were carried out in the Russian Federation in the last several years and which are relevant to the protection and development of the marine and coastal environment of the Arctic region. Such an analysis should indicate the weak points in the preparation of the pre-investment studies and what changes in the legal instruments and administrative procedure are to be made in order to improve the usability of the pre-investment studies. On the basis of such analysis, the guidelines for the preparation of pre-investment studies will be developed.

2.5 One of the activities to be implemented in the framework of the PDF B grant will be the identification of the list of environmental "hot-spots" in the Arctic region of the Russian Federation. Out of such a list, the high priority "hot-spots" will be identified and for those "hot-spots" pre-investment studies should be organised in order to eliminate them. It is expected that about 6 - 8 pre-investment studies could be prepared in the course of the full project. This methodology of identification of hot-spots, preparation of pre-investment studies for high priority hot-spots and subsequent investment in order to eliminate high priority hot-spots was successfully implemented in the Baltic Sea.

Implementation and Enforcement of the National Plan of Action

2.6 No amount of technical work will prove of much value unless a parallel work is made for a change in policies. ACOPS was chosen as the Executing Agency by the Russian Federation, amongst other reasons, because of its political networks across the globe which have the confidence of policymakers. Senior members of ACOPS in the Russian Federation are the senior policy makers in that country and a great deal of preparatory work was carried out prior to submitting the NPA Arctic to the international community at large.

2.7 The National Plan of Action for the Protection of the Marine Environment from Anthropogenic Pollution in the Arctic Region of the Russian Federation (NPA-Arctic) is the result of a five-year joint effort of the Russian Government, State Duma, Army and Navy, local governments, private sector and NGOs, with the assistance of ACOPS. The NPA-Arctic identifies 38 activities that should be implemented in the period from 1999 to 2001. 

2.8 The situation in the Russian Federation has been difficult for a number of years and the country is likely to continue to experience serious economic, social and political difficulties, which will be reflected in the fragility of the institutional framework. Notwithstanding this, the NPA-Arctic was prepared within a limited period of time and this is an indication of the priority given by the Russian Federation to issues related to the Arctic Environment.

2.9 In this respect, the partnership with ACOPS has proven to be very effective. In fact, following a workshop which ACOPS organised in the EU mission in Moscow the following year, the text of the NPA-Arctic was produced in just two years, ahead of all other circumpolar countries, the relevant government departments began to coordinate their work on Arctic issues, and after an absence of several years, Russia sent a minister to the Arctic Council meeting in September 1998, expressing its commitment to the NPA-Arctic vis-à-vis its western circumpolar partners. This is a positive indication of the level of support to the project within various sectors of the Russian Federation.

2.10 The main objectives of the PDF-B are:
a)	to review and evaluate system of environmental legislation and administrative arrangements at Federal and Regional levels in the Russian Federation, relevant to the Arctic region;
b)	to prepare proposals for new policy approaches to environmental protection and use of natural resources in the Arctic Region of the Russian Federation;
c)	to assess the primary air and water routes of pollutant transport from the identified sources to the Arctic Ocean;
d)	to analyse selected pre-investment studies which have been carried out in the Russian Federation over last several years and which are relevant to the protection and development of the marine and coastal environment of the Arctic region;
e)	to define procedures for comprehensively evaluating existing sources and activities in the Russian Federation contributing to the damage and threats to the arctic marine environment;
f)	to define a basis for priority-setting among the various stakeholders taking due account of the previous multilateral assessment of the state of the arctic marine environment; 
g)	to undertake a root-cause analysis for existing compromises of the arctic environment stemming from sources and activities in the Russian Federation;
h)	to identify, characterise and prioritise all existing sources and activities in the Russian Federation contributing to damage and significant threats to the arctic environment;
i)	to outline procedures for identifying options for intervention in relation to priority issues, their potential benefits and costs, and the balance of benefits and costs taking account of technical and socio-economic factors, and the associated technical and infrastructural requirements for their implementation;
j)	to define procedures for estimating the proportions of incremental costs potentially attributable to developed arctic countries and to the GEF;
k)	to examine and outline approaches to securing from national and international sources, the required support for the development of the capacity to implement identified priority interventions; and
l)	to prepare a GEF Project Brief specifying the procedures and mechanisms by which the full project will be executed, deliverables, incremental costs, and commitments of support from co-funding sources.
Indication of incremental costs for the full project
2.11 It is expected that the GEF eligible incremental costs of the full project will be approximately one third. Another third will be incremental costs to the other developed arctic states which it is anticipated will contribute proportionately to the project. The remaining third are wholly national costs. The breakdown of full project costing is presumed on the basis of co-financing available for PDF-B costs reflecting the commitment by the Russian Federation and developed arctic states to providing, or obtaining, appropriate co-financing for the full project execution. 
2.12 The breakdown of this preliminary assessment of incremental costs is based on the results of the previous assessment of the arctic marine environment conducted by the eight arctic states. From this assessment it is clear that not only is the Russian segment of the Arctic the largest (some 45% of the circumpolar arc being bordered by the Russian Federation) but that the legacy of damage and threats posed to the arctic is greatest from the Russian Federation.
2.13 The full project will also serve to fulfil the northern boundary responsibilities of the Russian Federation in respect to the Global Programme of Action for the Protection of the Marine Environment from Land-based Activities signed in 1995. Ultimately, the specification of a National Action Plan for the Protection of the Arctic will have to be combined with Action Plans addressing other Russian coastal regions, namely the Baltic Sea, the Bering Sea, the Black Sea,  the Caspian Sea, the Sea of Japan and the Sea of Okhotsk to constitute a comprehensive National Action Plan for the entire country.
Justification for the PDF-B Grant

2.14 This proposal is made on the basis of the assumption that effects within the Russian Federation of national actions are legitimately the responsibility of the Russian Federation to resolve within its existing, if limited, financial resource base. The costs of dealing with transboundary impacts in the Arctic region, pursuant to its global value as a unique environment and the concomitant global interest in its preservation, are incremental under the GEF definition. 
2.15 The full project will result in a National Programme of Action that will include a thorough analysis of costs and benefits of remedial actions addressing individual sources of degradation of the arctic environment and its associated freshwater sources within the Russian Federation. The project will cover existing degradation and threats posed to the arctic environment through the legacy of inadequately regulated activities that give rise to sources of hazardous contaminants that are transported either continuously, or as a result of episodic events.
2.16 The PDF-B Grant will be used to design the full project in a manner that ensures the most efficient process of applying management measures to resolve damage and threats to the arctic marine environment originating in the Russian Federation. This will, in turn, provide the GEF with greater insight into the nature of existing damage to the arctic marine environment caused by past activities in the Russian Federation and the potential threats posed by the continuation of existing practices or the introduction of new ones. The PDF-B will provide the necessary scoping for the full project and give an early indication of areas of difficulty and the nature and amount of resources needed to address these issues. Only on the basis of the scoping provided by the PDF-B can the effectiveness and value of the full project be evaluated.

3. 	Description of Proposed PDF-B Activities

3.1   Activity 1:  Project Steering Group

At the commencement of project planning, a Steering Group will be formed, under the Chairmanship of ACOPS, comprising: International Waters specialists from each of the three Implementing Agencies, and representatives of the Russian Inter-Agency Task Team, the Russian Duma and the International Task Team for the NPA-Arctic. The Russian Inter-Agency Task Team will advise the Steering Group on the quality of the reports produced by the various consultants and working groups and on the practicalities of mechanisms proposed for the execution of the full project. ACOPS will provide the Secretariat for the Steering Group that will meet once in October 1999 at the inception of the activity and again in January 2001 to finalize the project document. During the intervening period, the Steering Group will work through correspondence and periodic conference calls as required. The first Steering Group meeting will be held in London in October 1999 and will be of five working days duration. Its purpose will be to:
a)	confirm and document the scope of the PBF-B and identify a division of primary topics to be addressed during each of the Expert Workshops;
b)	finalize the timing and venues of each of the Expert Workshops;
c)	discuss and agree on the participants to be invited to the Expert Workshops on the basis of the expertise and representation required to address the relevant topics; and
d)	prepare a preliminary draft work plan and timetable for the full project.
3.2 Activity 2: Review and evaluation of relevant legislation and administrative arrangements at Federal and Regional levels

The current system of legislative and regulatory legal acts in the field of environmental protection, environmental safety, and nature management includes more than 5,000 (!) legal acts of all types as of June 1, 1998. Despite this there is no specific legislation for the Arctic region or for the Arctic marine environment, and the necessity for the development of such a body of legislation is not fully appreciated. Many of the existing legal acts contradict rather than complement each other. The purpose of this activity is to undertake a critical evaluation of the existing legislative framework and to elaborate proposals for change.

The objective of this activity is to prepare a review of the system of environmental legislation in the Russian Federation, with the aim of assessing their applicability to Arctic environmental protection; identify new legislation at federal and regional levels, and new departmental and regional standards, taking into account specificity of environmental conditions in Arctic; assess the capacity of local environmental protection and law enforcement bodies in the Arctic Region of the Russian Federation; identify appropriate economic measures that will assist in environmental protection; and prepare proposals for new policy approaches to environmental protection and use of natural resources in the Arctic Region of the Russian Federation, including proposals for enhanced public and indigenous peoples participation in environmental decision making.

This activity will be undertaken by a small working group, established under the co-ordination of the  State Committee for the Development of the North (Goskomsever), with participation of the representatives of State Duma and several Federal Ministries. Preparation of the draft review and recommendations will be undertaken by two Russian and one international consultant and the draft review will be submitted to the Inter-Agency Task Team for consideration and approval. 

3.3	Activity 3:  Expert Workshop on Methodology and Policy Considerations

An Expert Workshop will be convened to define the scope of the sources and activities to be dealt with in the GEF project and the nature of the analysis of scales of effect that will lead to the identification of incremental responsibilities. This Workshop will be attended by technical and policy experts from the Russian Federation, several technical and policy experts from other arctic states and a few relevant international experts. It will also be attended by individuals previously involved in GEF Transboundary Diagnostic Analyses to ensure that the scope of such analyses is considered in the discussion. The Workshop will be convened for 6 days in Moscow in November 1999 and would have up to 30 participants including selected members of the Steering Group. The purpose of this Workshop will be to:
a)	define the types of activity and source to be included in the scope of the characterisation of hot-spots in the Russian Arctic;
b)	define the scales of adverse effect that are required to determine incremental responsibilities beyond those of the Russian Federation, specifically at regional (arctic) and global scales;
c)	outline methodology for assessing incrementality of effects on the arctic environment from sources and activities within the Russian Federation;
d)	specify any other requirements from policy perspectives that will need to be satisfied in the analysis of hot-spots; 
e)	establish a basis for characterisation and prioritisation among sources and activities in relation to their effects on local and regional and international scales;
f)	specify procedures, providing examples, for the preparation of a root-cause analysis; and
g)	prepare a scoping document for guiding the discussions and work during the subsequent Expert Workshop on  the Identification and Characterisation of Hot-Spots.

3.4   Activity 4:  Analysis of pollutant transport mechanisms and zones of impact

Transport of pollutants through the atmosphere and by river flow, results in zones of impact that may be traced over substantial distances. Specific sources of large-scale releases (into the atmosphere) and discharges (into water bodies) into the Arctic are of different kinds of pollutants such as heavy metals (nickel, copper, lead, cadmium, mercury, etc.) and persistent organic pollutants (POPs of different origin, PCBs, benzopyrenes, dioxins, etc.). Sources will be identified through: assessment of the data on pollutant discharges and releases from particular enterprises (source approach); and assessment of the data on the levels of environmental pollution and ecosystem degradation (target approach). For each identified source the temporal distribution and composition of releases and discharges will be studied. Data for atmospheric transport in the arctic region are few and will require careful analysis in order to identify the need for appropriate remedial actions at source.

River runoff plays the leading role in contamination of the Arctic Ocean. Due to the huge catchment area in the Russsian Federation (75 percent of the entire area of the country) and large water volume (70 percent of the total river runoff in the country), most of the organic matter, nitrogen, phosphorus, iron, silicon compounds, petroleum, and pesticides from the Russian territory ultimately arrive in the Arctic Ocean via river runoff. The relevant data will be carefully evaluated and where possible correlation made between contamination in zones of impact and particular sources. The outputs of this activity will include: a list of the major sources of pollution relevant to the Russian Arctic and an assessment of primary air and water routes of pollutant transport from the identified sources to the Arctic Ocean.

For the implementation of this activity a small working group will be established, under the co-ordination of the  State Committee for the Development of the North (Goskomsever), with participation of the representatives of State Duma and several Federal Ministries. Preparation of a draft analysis will be undertaken by three Russian and two international consultants. The draft analysis will be presented to the Inter-Agency Task Team meeting for consideration. 

3.5   Activity 5:  First Expert Workshop on the Identification and Characterisation of Hot-Spots

A first Expert Workshop on Identification and Characterisation of Hot-Spots will be convened in Moscow in January 2000. This Workshop will be convened to define the methods for identifying sources and human activities in the Russian Arctic, including within major arctic drainage basins, in the context of the severity and distance of adverse effects. These methods must be devised in a manner that enables the allocation of priorities to individual hot-spots in terms of the scales and severity of their effects. Guidelines for the application of the selected method(s) would be prepared to allow assessments of individual hot-spots to be carried out as a demonstration of their practicality and utility. The output from the Workshop will constitute a blueprint for the scope, content and modus operandi for the identification, characterisation and prioritisation of hot-spots in the Russian Arctic in a manner that fully fulfils the needs of not only the Russian Federation but those of the other Arctic States. Participation in this Workshop will be largely drawn from technical experts familiar with the Arctic, especially the Russian Arctic, with the involvement of a few policy experts drawn from the Russian Federation and the arctic community (i.e., from the member states of the Arctic Council) and representatives of relevant NGOs. Total participation in each Workshop would be approximately 30 individuals, largely drawn from the Russian Federation but including some external experts and a small number of members of the Steering Group. 
The first Workshop will be of five working days duration and its purpose will be to:
a)	define the range of activities and sources constituting hot-spots of concern in the Russian Arctic;
b)	specify criteria required to characterise these sources and activities in relation to the severity of adverse effects at local, regional (i.e., Arctic) and global scales in sufficient detail to allow discrimination between national responsibilities and incremental responsibilities at both the regional (i.e., Arctic) and global levels;
c)	define procedures for rigorous characterisation of all hot-spots within the Russian Arctic that could be applied in a uniform and coherent manner to permit both the setting of priorities and the identification of incrementality; and
d)	develop procedures, with examples, for root-cause analysis of a selected range of contemporary sources and activities resulting in damage or posing threats to the Arctic as a means of providing a basis for evaluating options for intervention.

3.6	Activity 6:  Intersessional Technical Evaluations of Hot-Spots

A number of Russian expert consultants, working with the assistance of two part-time international consultants will undertake the technical evaluations required to implement the assessment of sources and activities as defined by the First Expert Workshop on the Identification and Characterisation of Hot-Spots. The consultants’ task will be to prepare a catalogue of sources and activities with specification of character and relative priorities as a working paper for adoption at the Second Expert Workshop (Activity 8). It is estimated that up to 8 months will be required for this work to be completed.

3.7   Activity 7:  Analysis of the existing practice in preparation of pre-investment studies in the Russian Federation and development of guidelines for their future preparation

There are number of environmental hot-spots that require investment in order to eliminate their negative consequences on the environment. For such hot-spots it will be necessary to prepare pre-investment studies, which will identify the investments needed to mitigate the identified environmental problems. Such studies will include technical, economic, financial, social and environmental components that should have adequate content and should be presented in such a manner as to encourage potential partners to invest in the protection of the marine and coastal environment of the Arctic region of the Russian Federation. 

The specific objective of this activity is to analyse selected pre-investment studies which have been carried out in the Russian Federation over the last several years and which are relevant to the protection and development of the marine and coastal environment of the Arctic region. Such an analysis should indicate the weak points in the preparation of previous pre-investment studies and propose changes in the legal instruments and administrative procedures required to improve the utility and acceptability of future pre-investment studies. On the basis of this analysis guidelines for the preparation of future pre-investment studies will be developed.

For the implementation of this activity a small working group will be established, under the co-ordination of the State Committee for the Development of the North (Goskomsever), with participation of the representatives of State Duma and several Federal Ministries. Actual work will be done by two Russian and two international consultants. The draft analysis and guidelines will be submitted to the Inter-Agency Task Team for consideration for adoption and application during the execution of the full project. 
3.8   Activity 8:  Second Expert Workshop on the Identification and Characterisation of Hot- Spots

The Second Expert Workshop will be required to review, revise and adopt the products of the consultants’ work, presented in the form of a working paper, in the context of guidance prepared at the First Expert Workshop. This provides a basis for widespread acceptance among Russian and international experts of the assessment prepared as part of this PDF-B. The Second Workshop will be held in Moscow in October 2000 for five working days and its purpose will be to:
a)	adopt the specification, characterisation and prioritisation of current Russian sources and activities, based on the working paper submitted by the technical consultants, contributing to damage or threats to the arctic environment;
b)	evaluate the specification of the proportions of damage and threat attributed to national, regional and  global scales and specify an agreed procedure for discriminating incremental components of the costs of intervention to obviate, reduce or prevent arctic environmental degradation;
c)	undertake a root-cause analysis for a selected range of contemporary sources and activities resulting in damage or posing threats to the Arctic as a means of providing a basis for evaluating options for intervention; and
d)	draw up guidelines by which such procedures could be applied to the entire Russian Arctic.
The requirement for two Workshops is mandated by the requirement for the considerable intersessional work to be carried out by Russian and other expert consultants between the two Workshops. This will enable the entire specification of hot-spots to be completed in a thorough and comprehensive manner that would not be possible on the basis of a single Workshop.

3.9   Activity 9:  Finalisation of the GEF Project Brief and Final Steering Group Meeting

Following completion of the substantive activities ACOPS will prepare, in close collaboration with the UNEP/GEF Co-ordination Office, a first draft of the GEF Project brief for consideration by the Russian Inter-Agency Task Team and other involved agencies. This draft will then be considered and finalised during a final meeting of the Steering Group convened in London for 5 days in January 2001. The final project document will conform to the GEF format and requirements. It is estimated that the final project will be of the order of 15 Million US $ and will take 36 months to complete.
4. 	Eligibility
The Russian Federation is eligible for GEF assistance under paragraph 9(b) of the GEF Instrument.
5.	National Level Support
5.1 National support for PDF-B activities has been included in the proposal in the form of in-kind and financial contributions. Purely national support has been augmented by contributions from the other developed arctic states to ensure an equitable balance between Russian and GEF funding. The same approach, but with rather more discernment in the actual proportions of incremental costs attributable to the other arctic countries and GEF, will be adopted in the preparation of the full project brief.
5.2 The present proposal has been formulated in support of the resolution in relation to a National Plan of Action for the arctic marine environment formulated and adopted in October 1998, at a Conference of Official Representatives of the State Duma and the Government of the Russian Federation (Annex 2).

6. 	Outputs of the PDF-B

a)	Reports of the two Steering Group meetings, the Expert Workshop on Methodology and Policy Considerations and the two Expert Workshops on the Identification and Characterisation of Hot-Spots;
b)	Review of relevant legislation and administrative arrangements at Federal and Provincial level together with recommendations for change;
c)	Complete scoping of the project with guidelines and procedures for the thorough development of pre-investment studies for priority transboundary hot-spot remedial measures;
d)	A preliminary root-cause analysis for compromises to the arctic environment stemming from sources and activities in the Russian Federation;
e)	Identification of options for intervention selected on the basis of the root-cause analysis;
f)	Definition of procedures to be used for the evaluation of intervention options taking full account of their net benefits and efficacy; 
g)	Criteria for determination of incremental costs attributable at the regional (i.e., Arctic) and global levels to provide a basis for the division of costs and an itemisation of appropriate co-funding from national sources and from the other arctic states; 
h)	Priority listing of Russian hot-spots and agreed list of those for which pre-investment studies will be undertaken; 
i)	A review or pollutant transport mechanisms and zones of impact; and
j)	A GEF Project Brief.
7.	Special Features - Aspects of the analysis for particular attention

7.1 This project addresses environmental degradation of national and regional scope resulting from national activities within the Russian Federation affecting the arctic regional marine environment. Its purpose is to promote preventative and corrective action on the part of the Russian Federation for activities that adversely affect the Russian arctic, the whole arctic region and the global environment. It provides a constructive and multilateral process for addressing problems at all scales in a manner that ensures that the greatest benefits accrue to the affected areas. Furthermore, it embodies a mechanism to pre-define national, regional and global responsibilities for the protection and improvement of the marine environment. The PDF-B activities have been specifically designed to promote appropriate and sustained communication with a wide selection of government representatives, both Russian and from the other Arctic countries thereby providing an appropriate consultative mechanism. 
7.2 A special feature of this project is that it is a proposed single country intervention in a region consisting of eight countries, of which only one is GEF eligible. All countries in the region participated in the preparation of a detailed regional assessment, analogous to the Transboundary Diagnostic Analysis called for under the GEF International Waters Operational Strategy. 

8.	Items to be Financed Through GEF PDF-B Block Grant

8.1 Table 1 provides a breakdown by costs of activity. Costs of travel and DSA for expert non-UN agency participants in the Expert Workshops, and in the Steering Group meetings will be met from the GEF grant as will the costs of consultant assistance in the preparation of, and follow-up to, each Workshop. Meeting facilities and administrative support to the conduct of meetings will be provided through the executing agencies as an in-kind contribution to costs of execution.
8.2 Consultants from the Russian Federation and the region will be hired to undertake technical and substantive work during the intersessional period in collaboration with the Russian Executing Agency between the first and second Technical Workshops and to prepare various background documents and reviews. Administration and management of the entire project will be undertaken by ACOPS that will contribute in cash and kind to the execution of this PDF-B. 
8.3 It is intended that representatives of industry and NGOs be involved in the Expert Workshops at their own cost, however, no assumptions have been made in this regard so as not to endanger full participation in the Expert Workshops.

TABLE 1 Cost Table - Framework Budget by Activity (US $) 
Activity	GEF	ACOPS	Russian Federation 	Other Sources	Total	
Activity 1 Steering Group
First Meeting
Second Meeting	
20,000
30,000	
3,000
3,000	
6,000
10,000	
0
0	
29,000
43,000	
Activity 2 Review of legislation	0	6,000	24,000	36,000	66,000	
Activity 3 Expert Workshop on Methodology and Policy Considerations	28,000	3,000	23,000	23,000	77,000	
Activity 4 Analysis of pollutant transport mechanisms and zones of impact	50,000	3,000	30,000	46,000	129,000	
Activity 5 First Expert Workshop on Identification & characterisation of hot-spots	25,000	4,000	20,000	25,000	74,000	
Activity 6 Technical evaluation of hot spots	60,000	3,000	25,000	34,000	122,000	
Activity 7 Analysis of practices for preparation of pre-investment studies	25,000	3,000	13,000	65,000	106,000	
Activity 8 Second Expert Workshop on Hot Spots	25,000	3,000	20,000	23,000	71,000	
Activity 9 Preparation of Working Papers and GEF Project Brief	15,000	2,000	0	0	17,000	
Executing Agency Management & support costs	28,000	0	0	18,000	46,000	
TOTAL	306,000	33,000	171,000	215,000	780,000	

Expected Date of PDF Completion
Sixteen months from PDF-B approval. A preliminary timetable is provided in Table 2. The full project will probably run for about 30-36 months.

Table 2: Preliminary Workplan and Timetable for PDF-B Activities
PDF-B Activities	1999	2000	2001	
	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Jan	
Activity 1 Project Steering Group																		
  Internalisation and Establishment of Steering Group																			
  Preparations for Steering Group Meetings																				
  Steering Group Meetings																				
  Steering Group Meeting Report Preparation																				
Activity 2 Review of legislation & administration																		
   Meeting of the working group																			
  Preparation of the review																		
  Approval of the review by the Inter-Agency Task Team																			
Activity 3 Expert Workshop on Methodology and Policy 																		
   Preparations for Workshop 																				
    Workshop on Methodology & Policy Considerations  																			
   Workshop Report Preparation																			
 Activity 4 Pollutant transport & zones of impact																		
   Meeting of the Working Group																			
   Preparation of the Analysis																		
   Approval of the Analysis by the Inter-Agency TT																			
 Activity 5  First Expert Workshop on Hot-Spots																		
   Preparations for Expert Workshop																			
   Expert Workshop																			
   Workshop Report Preparation																		
Activity 6  Intersessional Technical Work																		
Activity 7 Analysis of practices for pre-investment studies																		
    Meeting  of the Working Group																			
   Preparation of the Analysis & Guidelines																			
   Approval of the Analysis & Guidelines by IA T. Team																			
 Activity 8  Second Expert Workshop on Hot-Spots																		
   Preparations for Expert Workshop																			
    Expert Workshop																			
   Workshop Report Preparation																			
Activity 9  Preparation of GEF Project Brief																		
   Draft Preparation																				
   Finalisation of GEF Project Brief																			

ANNEX 1. Major Pollution Sources Identified by the Russian Federation (after appendix 2 of the RPA - Arctic)

Pollutant Category	Major Sources and Priority Pollutants 	Principle Pathways	Known/Suspected Effects	Status of Information and Management	Uncertainties to be Resolved	Relative Importance	
POPs	3.  Archangelsk & Solombalsky pulp & paper mills (PPM)
·	Methyl mercaptan, CS2, formaldehyde, phenols, dioxins, mercury.	1.  River transfer.
2.  Air transfer.	Ecosystems of N. Dvina Gulf are destroyed.	Information is insufficient.  Management is inadequate.	Exact information on discharges and emissions in recent years.	Important	
Radionuclides	5. Severodvinsk nuclear fleet shipyards (SMP) & Zvezdochka) Kola peninsula coastal zone.
·	Radionuclides	Water and air transfer.	Harm to human health.  Pollution of ecosystems.	Information almost sufficient.  Management inadequate.	State of existing RW storage sites.	Very Important	
Radionuclides	6.  (a)   Majak reprocessing;
  (b)  Siberian chemical works (near Tomsk);
  (c)   Krasnoyarsk mining and chemical works
·	Radionuclides	Water and air transfer.	Harm to human health.  Pollution of ecosystems.	Information almost sufficient.  Management inadequate.	State of existing RW storage sites.  State of radioactive pollution in river systems environment Techa-Iset-Tobol-Irtysh-Ob’ (a); Tom’-Ob’ (b); and Yenisey (c).	Very Important	
Heavy Metals	1. Norilsk mining and metallurgical works.
·	Heavy metals: Cu, Ni, Co, Cd.
·	Flue gases (combustion products): SO2, NOx, suspended solids (dust), H2S.
·	Anions (saline discharge), SO42-, Cl- and formaldehyde.	1. Air transfer.
2. River transfer.
3. Wash-out with melted snow.	1. Regional: Impact on Arctic rivers, ecosystems and coastal areas, especially Pyasina Bay and Yenisey Bay.
2.  Local: Forest destruction 500,000 ha: 100 x background concentration in moss at 100 km.	Information insufficient.  Management inadequate.	More information on the concentration of pollution in the ecosystems is required.  Additional studies of effects on ecosystems.  Long-range transfer should be studied in air (origin of Arctic haze?) and rivers.	Most Important	
Heavy Metals	2.  Pechanga-nickel mining and metallurgical works.
·	Heavy metals: Cu, Ni, Co, Cd.
·	Flue gases (combustion products): SO2, NOx, suspended solids (dust), H2S.
·	Anions (saline discharge) SO42-, Cl-  and formaldehyde.	1. Air transfer.
2. River transfer.
3. Wash-out with melted snow.	Forest destruction 70,000 ha.  Landscape destruction within a radius of 40 km.  River ecosystems damaged.	Information is almost sufficient.  Management is almost adequate.	Additional studies of effects in ecosystems.  Studies of long-range transfer in air and by rivers.	Most Important	
Oil	4.  Oil and gas installation in Timano-Pechors Province (TPP) and West Siberia Province (WSP).
·	Oil hydrocarbons	River transfer.	Pollution and degradation of river ecosystems, marches ecosystems, soil and terrestrial ecosystems.	Information sufficient.  Management inadequate.	Better monitoring of the condition of pipelines.	Important	
   * based on papers presented by Russian Federation to ACOPS International Conferences (Washington and Stockholm). 

ANNEX 2

Resolution of the Conference of Official Representatives of the State Duma and the Government of the Russian Federation Dedicated to Approval of the National Plan of Action for the Protection of the Marine Environment from Anthropogenic Pollution in the Arctic Region of the Russian Federation (NPA-Arctic)
Moscow, 2nd October 1998

Aware of the need to safeguard and improve the quality of the marine environment in the Arctic region of the Russian Federation, reduce the unfavourable effects of pollution on ecosystems and human health, ensure the Russian Federation’s effective participation in the implementation of international programmes of action aimed at protecting the marine environment, secure Russia’s national interests and implement the principles of sustainable development, the participants of the conference:
1.	support the efforts made by the Goskomsever, other ministries and government departments concerned, and the executive authorities of the Arctic regions to develop the NPA-Arctic;
2.	endorse the work done by the Interagency Task Team under the auspices of the Goskomsever and with the assistance of the Advisory Committee on Protection of the Sea (ACOPS) with a view to developing the NPA-Arctic;
3.	note that implementation of the NPA-Arctic would meet the national interests of Russia and the interests of the world community and help accomplish the tasks stipulated under the Federal Target-Oriented Programme (FTOP) ‘World Ocean’, as well as other relevant international programmes, and promote the objectives of protecting the natural environment and a stable Arctic environment as reflected in the Declaration of Section 1 of the Arctic Council (September 1998, Canada);
4.	approve the concept, structure, general content and focus areas of the NPA-Arctic and an associated long-term work plan;
5.	recommend that the NPA-Arctic be forwarded to the Ministry of Economy of the Russian Federation for consideration of the possibility of incorporating it in the FTOP ‘World Ocean’;
6.	take notice of statements made by State Duma Deputy’s  Prof. V.V. Tetelmin and Mr. V.A. Bayunov to the effect that they support the key provisions of the NPA-Arctic, which will help to ensure that the Government of the Russian Federation makes a decision to finance individual sections of the NPA-Arctic and will promote the improvement of legal infrastructures for the protection and conservation of the marine environment in the Arctic region of the Russia Federation;
7.	recommend considering the possibility of incorporating the NPA-Arctic into the National Plan of Action to Protect the Natural Environment of the Russian Federation (1988-2000);
8.	recommend considering the possibility of forwarding information on the NPA-Arctic to the Government of Russian Federation and the State Duma of the Russian Federation;
9.	request the federal executive authorities, the administrations of the Arctic regions, scientific, financial and public organisations, and large industrial centres in the Arctic to take part in the development and implementation of the NPA-Arctic; and
10.	invite interested countries, international governmental and public organisations, and business and industrial communities to participate in the development and implementation of the NPA-Arctic.