Environmental protection in view of EU membership

The Ecological Development Fund of the Republic of Slovenia is striving to become a pioneer in the financing of ecological projects in Slovenia. ”In the first place, these projects shall positively influence the growth of the gross national product, ” hopes Zuzek.

The financial expert expects Slovenia’s EU membership to bring the necessary EU funds granted to render domestic requirements compatible with European ecological standards. ”We are planning to transform the Ecological Development Fund into an ecological banking institute after entering the EU,” says the financial expert.

Protection of natural resources is an important item in Slovenia’s strategy to become an EU member. ”This means on the one hand a harmonisation of regulations, on the other, however, considerable investment in the existing infrastructure of companies,” says Zuzek.

Co-operation with international financial institutions

Last year a contract was signed with the World Bank on a credit of DEM 30 million for the development of renewable energy sources. In addition, the Fund is acting as financial agent of earmarked GEF grants (Global Environmental Facility). In 1996 the Fund obtained irreversible PHARE subsidies of ECU 400,000. In 1997 the Fund participated in preparing a PHARE assistance project to finance environmental economic investments.

The future activities of the Fund will largely depend on the available amount of funds earmarked to finance ecological projects. As soon as the privatisation process of companies is finished, the capital employed is expected to flow back. ”We are hoping that applications for Fund credits for ecological projects will increase during the phase of Slovenia’s getting closer to the EU,” says Zuzek.

Next to its primary activity – allocation of credits for ecological projects – the Fund will take over tasks in other areas. ”We could, for example, play an important role in the membership procedure with the EU. Due to the fact that we have gathered vast experience with international institutions, we are able to act as financial agent for the use and allocations of EU funds,” Zuzek is convinced.

The Fund’s assets are being used to finance public services of environmental protection and obligatory local environmental protection services, investments in environmentally sound technologies and products, investments for environmental rescue operations, investments of the Republic of Slovenia in connection with compulsory interventions and investments to implement the National Environmental Programme.

In June 1996 the Fund received a credit of DEM 30 million from the World Bank to finance air pollution reduction measures. From 1995 to 1997 the Fund distributed a total of SIT 2.414 million in three public tenders to finance local infrastructure projects, SIT 98 million in three public tenders to finance environmental investments of business enterprises and SIT 2.565 million in five public tenders for air pollution reduction programmes on the basis of the World Bank loan.

”Credits to finance projects in the field of environmentally friendly technologies and products, of installations of pollution prevention and for the construction of waste water purification plants will be of special importance to the economy of Slovenia,” Director of the Ecology Development Fund is convinced.
(Source: aqua press Int. 04/99)
Mag. Renate Haiden

Information & Contact:

Eko Sklad
Trg republike 3
SLO-1000 Ljubljana
Phone +386 061 125 5196
Fax +386 061 125 20 91