The Debt for Environment Swap Agreement was an innovation in the field of environmental management in 1995. At the time of its signing, the agreement had a predominantly political meaning, but its results are real and obvious for the benefit of the environment in Bulgaria. This agreement between the governments of the Republic of Bulgaria and the Swiss Confederation is a successful initiative thanks to the efforts of both parties.
The political and economic conditions in which the initiative was launched and the National Trust Fund (NTEF) was established are significantly different from today's situation. Then, on the one hand, there was a clear need for financing environmental projects, but, on the other hand, potential beneficiaries did not have the necessary skills to manage projects. That is why the implementation of the Debt for Environment swap agreement is considered successful not only because one hundred projects have been implemented under it, but also because of its successful mission to build capacity for the main stakeholders involved in the process of environmental management and protection.
Priority Areas of Project Financing
n Clean up of past pollution:
ü Disposal of hazardous waste and hazardous substances;
ü Contamination of drinking water or food sources (by heavy metals, toxic organic compounds or other harmful chemicals).
n Reduction of air pollution:
ü Reduction of the concentration of pollutants of health concern: sulfur dioxide, nitrogen oxides, lead and other toxic chemicals in urban areas, and
ü Reduction of green-house gases: carbon dioxide, methane, CFCs, etc.
ü Encouragement of renewable energy use.
n Clean water protection:
ü Municipal and industrial waste water treatment plants in the Danube watershed;
ü Municipal and industrial waste water treatment plants in the Black Sea watershed.
n Assistance of the national ecological networks and protection of biodiversity.
Projects Financed by NTEF
n Total number of the NTEF-financed projects – 100
n Total amount of approved NTEF financing – BGL 26 548 665
n Average percentage of the NTEF financing/contribution to the total amount of project costs – 19%
Successful Completion of the Debt for Environment Swap Agreement between Bulgaria and Switzerland