Financing the JCP
Financing the JCP have been possible thanks to the shared vision of the Programme, sustained political and public commitment, and development of a strong partnership between cooperating parties. Financial support for the Programme to date provides a record of action demonstrating the linkage of environmental priorities established under the JCP with a range of financial resources provided from many different sources.
In the countries in transition, where affordability has been a critical constraint to investments, the use of co-financing that blends loans from the International Financing Institutions (IFIs) and grants from the European Union and bilateral donors has proven to be a critical tool. When combined with grants, the size of the projects can be larger, allowing greater impacts and reducing the effective cost to the cooperating government or investors. This approach also reduces the impact of adjustments to tariffs for services to project beneficiaries, thus decreasing potential adverse impacts on populations with low or fixed incomes.
Implementation of the JCP requires long-term use of public and private funds to be spent on an incremental and phased basis. Significant amounts of domestic and international resources have been mobilised and used to support priority projects in a range of sectors.
International sources of funding, including that provided by the European Union, IFIs, bilateral donors, export credit agencies and commercial banks, and direct investment by foreign companies, should be viewed as complementary to domestic resources of the cooperating countries.
The cost of cleaning up
Alleviating pollution at hot spots involves considerable investments. In 1999 it was estimated that total funding of 10 billion would still be needed to finance the necessary measures at all the hot spots. Financing is agreed between the owners responsible for the hot spot, governments, donors, national banks, the private sector and international financial institutions, but most investment comes from domestic sources. HELCOM has no special financial resources for the implementation of the JCP, but relies on contributions from the Contracting Parties and donor projects.