07 May 2003

Text: World Bank Conference, Report on Water Resources in SE Europe
(Athens meeting calls for "environmental diplomacy") (1980)

Representatives to a May 7 conference in Athens on sustainable
development of water resources, organized by the World Bank and the
Greek presidency of the European Union, called for a new form of
" environmental diplomacy" to enhance cooperation on water issues among
governments, international agencies, private industry and
nongovernmental organizations (NGOs).

The conference, titled "Sustainable Development for Lasting Peace:
Shared Water, Shared Future, Shared Knowledge," also produced a
declaration that applauds two regional cooperative efforts: the
Southeastern Europe Transboundary River Basin and Lake Basin
Management Program and the Mediterranean Shared Aquifers Management
Program.

The World Bank says water needs to be higher on the development agenda
of countries in the Balkans because better river basin management can
pre-empt floods, drought, coastal erosion and river pollution. A new
two-volume report offers an in-depth look at the issue.

It examines seven countries in detail -- Albania, Bulgaria, Croatia,
Bosnia and Herzegovina, the Former Yugoslav Republic of Macedonia,
Romania, and Serbia and Montenegro -- and provides examples of
successful water programs and projects.

Following is a World Bank press release on the Athens conference and
declaration, and another on its new report:

(begin text)

World Bank
Washington, D.C.
www.worldbank.org

WATER: A DRIVER OF GROWTH

May 7, 2003 - Calling for a new form of environmental diplomacy, an
Athens Declaration today applauded the potential of two new
cooperative water programs -- the Southeastern Europe Transboundary
River Basin and Lake Basin Management Program and the Mediterranean
Shared Aquifers Management Program.

The declaration was adopted at a conference held in Athens this week,
entitled "Sustainable Development for Lasting Peace: Shared Water,
Shared Future, Shared Knowledge." Organized by the Government of
Greece, which holds the Presidency of the European Union, and the
World Bank, the conference assembled public sector officials, civil
society actors, private sector representatives, and international
experts for a thematic review of opportunities and constraints related
to cross-border management of river basins, lake basins, and shared
aquifers.

The Athens Declaration endorsed a new form of Diplomacy for
Environment and Sustainable Development to enhance cooperation on
water at all levels of foreign and domestic policy, among governments,
international agencies, private industries, and the full array of
nongovernmental organizations.

Commenting on the two regional framework programs, Ian Johnson, Vice
President for Sustainable Development at the World Bank, said "Based
on the sustainable management of water resources as a means to promote
responsible growth and stability, these cooperative programs represent
the way forward in scaling up the positive lessons from the ongoing
programs such as the Danube River Basin Program as well as the Lake
Ohrid Conservation Project that borders Macedonia and Albania."

The Southeastern Europe Transboundary River Basin and Lake Basin
Management Program would focus on a series of international river
basins lying south of the Danube River Basin, which flow into the
Adriatic, Aegean, Black, and Ionian Seas, and on a series of
international lake basins in this area.

The program would assist countries of the region, in cooperation with
key stakeholders, to draft integrated water resources management
(IWRM) and water use efficiency plans for all major river basins, and
would include a range of complementary interventions in individual
river and lake basins, with a coordination mechanism to allow for
exchange of information and experience between activities.

The Mediterranean Shared Aquifers Management Program will link ongoing
programs to: facilitate broader of exchange of planning, management,
and implementation experience; develop a mechanism for initiating
cooperative work on additional shared aquifers on a case by case
basis; and provide a means for development and dissemination of
information on good practices. The program would play a valuable role
in highlighting the importance of management of shared aquifers. The
knowledge gained in the Mediterranean could be transferred to other
regions of the world that have less experience on this critical topic.

The Athens conference carries forward the recognition made at the
World Summit on Sustainable Development (WSSD), held in Johannesburg
during last year, that the international community needs to revisit,
reorient, and enhance its efforts at all levels to promote peaceful
and mutually beneficial management of shared natural resources in
order to achieve the goal of sustainable development in a peaceful
world. The Athens Declaration will be forwarded as a contribution to
the Kyiv International Conference "One Environment for Europe", in the
framework of which transboundary issues will be of key importance.

Useful links: For more information on the World Bank's work on water,
please click here (http://www.worldbank.org/watsan/).

To read the Bank's recently issued report on water in South Eastern
Europe, please click here

For more information on the Athens Water Conference, please click here

(end text)

(begin press release on World Bank report)

World Bank
Washington, D.C.
www.worldbank.org
May 6, 2003

WATER IN SOUTH EASTERN EUROPE - UNIQUE OPPORTUNITIES AND CHALLENGES

Washington, May 6, 2003 - Water needs to be higher on the development
agenda of countries in the Balkans, since better river basin
management can pre-empt floods, drought, coastal erosion and river
pollution, according to Water Resources Management in South Eastern
Europe, a World Bank report released today.

The report examines seven countries in detail -- Albania, Bulgaria,
Croatia, Bosnia and Herzegovina, the Former Yugoslav Republic of
Macedonia, Romania, and Serbia and Montenegro -- as well as sources
and consequences of poor water resources management in the South
Eastern Europe (SEE) sub-region. It also provides examples of
successful water programs and projects.

The two-volume report is being issued ahead of a May 6-7 conference on
Sustainable Development for Lasting Peace: Shared Water, Shared
Future, Shared Knowledge, hosted by the Government of Greece during
its Presidency of the European Union (EU) and co-organized by the
World Bank in Athens, Greece. The event will bring together government
officials from SEE countries, the Mediterranean and the Middle East,
as well as representatives from various international financial
institutions to discuss the management of transboundary water
resources.

Box 1: Shared rivers, shared problems

International river basins are prominent in South East Europe's
geography and have helped trade to flourish for centuries. Indeed, 90
percent of the sub-region's territory is in international
river-basins, making cooperation among countries essential.

In addition to the Danube and its five tributaries, ten smaller
international river basins flow into the Adriatic and the Aegean. For
example, the Drin includes FYR Macedonia, Serbia and Montenegro and
Albania and challenges include watershed degradation, lake and
fisheries management, unplanned developments along shorelines,
untreated wastewater and poor solid waste management and wetland
ecosystem management. These issues affect all three countries.

"Given the momentum for European integration and the environmental
standards that aspiring countries in the sub-region must meet to join
the EU, more financing as well as policy and institutional reforms are
urgently needed to tackle pressing water problems-action now will
avoid a bigger price tag later on," says Marjory-Anne Bromhead, Sector
Manager for Natural Resources and Agricultural Services in the World
Bank's Europe and Central Asia Region and co-author of the report.

A key finding from the report is that poor river basin management
increases economic damage and loss of life from floods, droughts,
landslides and erosion as well as water pollution. Low quality water
carries health risks, damages fisheries, tourism and recreation
industries and leads to ecosystem losses. Poor drinking water service
delivery affects the well-being of local communities, while unreliable
irrigation water leads to loss of livelihoods. The misallocation of
water can lead to insufficient supplies for irrigation, hydro-electric
energy, municipal water supply and ecosystem maintenance.

The state of water resources in the sub-region

The report identifies South Eastern Europe's key water challenges,
detailing the diverse conditions in the seven countries. In the
northern countries of Croatia and Romania, water resources are
generally abundant and the challenges are primarily flood and
watershed management and improving water quality. In the southern
states, such as Bulgaria and FYR Macedonia, water is scarcer and
countries need to balance use between competing sectors, such as
summer irrigation versus winter hydro-electric energy, and using water
for towns and industries versus maintaining ecosystems and wetlands.
All countries are developing water management institutions that
reflect multiple interests, but some are facing more difficulties than
others, such as Albania, Bosnia and Herzegovina, and FYR Macedonia.

"South Eastern Europe has faced difficulties of deteriorating
infrastructure for water and sanitation, irrigation, drainage and
water regulation, linked in part to weakness of public sector
institutions and broader fiscal and governance issues," notes Rita
Cestti, Senior Water Resources Economist in the Bank's Europe and
Central Asia Region and co-author of the report. "Governments are
working to put in place institutional frameworks, regulations and
economic incentive regimes that reflect multi-stakeholder consensus,
and at the same time provide for efficient use of water and adequate
service delivery," she adds.

Lake Ohrid: Straddling Albania and Macedonia

Lake Ohrid, one of the oldest lakes in Europe, straddles Albania and
FYR Macedonia. In 1996, both countries agreed to carry out the Lake
Ohrid Conservation Project-financed by the Global Environment Facility
(GEF) and executed by the World Bank-with the goal of conserving and
protecting its unique biodiversity and watershed through a joint
management arrangement. A Lake Ohrid Management Board was set up and a
bi-national monitoring task force has produced a State of the
Environment Report.

The project has facilitated cooperation between local authorities on
both sides of the lake and has helped mobilize substantial investment
assistance, including for the funding for sewage treatment, solid
waste management, and water supply system improvements.

A separate Bank-financed Albania Fisheries Project will also benefit
the lake.

Transboundary cooperation

The second volume of the report is comprised of Country Water Notes
and Water Fact Sheets individually tailored to the seven focus
countries, which share transboundary water resource problems. The
Country Water Notes specify the differences in socio-economic
conditions, geography, water resource management institutions and
country legislation, and provide a wealth of examples on interstate
cooperation.

World Bank Assistance for Water Resources Management in the Balkans

While Bank cumulative assistance for water resource management in SEE
countries has been small to date, there has been considerable
assistance with improved water service delivery. Urban water supply
projects, such as the Eastern Slavonia Reconstruction Project in
Croatia, have focused on developing financially viable institutions,
improving service water supply and wastewater delivery, and addressing
the challenges of wetland management. Irrigation projects (in Albania
and FYR Macedonia) have sought to decentralize responsibility for
irrigation maintenance to local users' associations and are now
tackling broader system management. Financing for rural water and
sanitation, combined with support to local communities and local
governments to maintain services, is increasing, with operations under
way in Romania and Albania. Romania now has a major operation in flood
management and hazards mitigation under preparation.

Regional support for water-related issues

The World Bank's Europe and Central Asia region has a water sector
portfolio totaling US$2 billion to date, of which 65 percent is for
urban water and sanitation interventions and for flood management.
Other World Bank operations include irrigation and drainage, dam
safety, wetlands management and restoration, and water resource
management.

The report calls for an increased focus on partnerships between the
SEE countries, the EU, and bilateral and multilateral organizations,
to improve water management and services delivery.

Copies of the report, which also includes a section on water resources
in Province of Kosovo (Serbia and Montenegro) as well as data sheets
on several non-focal countries, can be downloaded in English or local
languages by going to: Water Resources Management in South Eastern
Europe

Contact: Merrell Tuck-Primdahl, Tel: (1-202) 473-9516, Email:
mtuckprimdahl@worldbank.org

(end press release on World Bank report)

(end text)

(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)

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