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The Matched Small Grant Program (MSGP) started in 2000 as a part of the GEF Priority Investment Projects Portfolio Component (PIPP), executed by the World Bank (WB) within the Caspian Environment Program (CEP).

The CEP is a regional program implemented by the five littoral states -- Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan -- and supported by a number of international donors. The CEP aims to stop the worsening of environmental degradation and promote sustainable development in the Caspian.

While the overall objective of the PIPP is to increase the number and the quality of investments through the identification and preparation of high priority environmental projects and through enhanced capacity for project management, the main objective of the MSGP is to finance the implementation of small-scale demonstration or pilot projects.

It is expected that the MSGP projects could be developed into larger scale investment projects, or could be replicated elsewhere in the Caspian region.

The MSGP is managed by an administration unit at the CEP office in Baku, Azerbaijan. To assure the quality and relevance of applicants' projects, a number of activities were developed to assist with proposal preparation. These included in-country presentations by WB local consultants, information posted on the CEP website, newspaper advertisements and consultations with the MSGP staff in Baku. The selection committee included Caspian country representatives and representatives of the international organizations that participate in CEP activities.

Since the beginning of the MSGP, three grant rounds were held. Grants ranging from $10,000- $100.000 were approved for 16 projects, with a total of $916,409 allocated for these projects. All projects require the grantee's in-cash and in-kind contribution, which amounted in total $1,152K. 

Among grantees were government and scientific institutions, local and foreign private companies and other organizations (see table 1).

Table 1. MSGP grants awarded by type of organization

The implementation of the grant projects started from the summer of 2002. Topics addressed by the projects varied from pollution clean up to provision of safe drinking water, from biodiversity protection to domestic waste management (see table 2).

Table 2. Distribution of grants by subject

The following projects are under implementation and contributing their results to the MSG Program.

Industrial pollution prevention and decrease

Six projects work in the field of industrial pollution remediation or prevention. The total amount allocation to that category is 29% of total grant funds, or $265K.

The project, "Clean water energy - Implementation of the methodology of ground water purification from oil waste at the eastern Caspian coast" (Turkmenbashi town, Turkmenistan, grant-$61,310), was initiated by a foreign, private company. It is designed to adapt to Caspian conditions a technology for cleaning oil from underground water in severely contaminated areas. (See photos 1-3). The project plans to clean groundwater on 30 hectares of contaminated land in the coastal area and to eliminate further contamination in amount of 3,000 cubic meters of oil products per year from a local oil refinery. The project is scheduled for completion in February 04. As a compliment to the project, a data "location file" in GIS format will be created for the Turkmen sector of the Caspian Sea, with the support of USAID.

The project, "Introduction of oil pollution bio-destruction technology of soil, water and oil sludges," (Makhachkala, Russia, $45,000), proposes the reduction of pollution from oil exploration and the remediation of polluted areas by introducing bio-remediation technology. The introduction of the Caspian-specific safe biological substance, "Oleovorin," to clean 1.5 hectare of oil-waste storage and five hectares of oil-contaminated land will be completed by the end of the project in July 04. The project "Re-cultivation of the soils contaminated with oil" (Azerbaijan, $47,250) is aimed at the reduction and restoration of oil-contaminated soils by designing and constructing a pilot installation, which will be using CO2 at critical parameters. After construction of the installation, an area of 0.5 hectares of polluted soils will be cleaned. The implementation of the project is about to start, with completion planned for April 2004.

The project, "Reduction of the threat to biodiversity in ecologically sensitive areas," proposed by the state-run Maritime Organization (Turkmenbashi town, Turkmenistan, $69,385), is aimed at the improvement of navigation in and near the protected areas of Khazar nature reserve (a Ramsar Wetlands site) by the establishment of bathymetrical services to monitor depth in navigation channels. An increase in oil spill response capacity is also expected as a result of the project. The implementation of the project began in July 03 with the completion planned for June 04.

Photo 1. "Clean water energy" project (Turkmenistan) aimed at the cleaning underground waters, polluted by the Oil Refinery in Turkmenbashi town:

Creation of gravel layer for cleaning underground water to provide further installation of oil-water separation equipment.. If successful. The project results can be used in other regions of the Caspian.

Photo 2. For more than 50 years, the Oil Refinery polluted the Saymonova Bay, formerly known as a unique conservation site of Caspian biodiversity. The contamination of underground waters leads to the formation of oil puddles in the coast of the bay. Specialists are taking measurements.

Photo 3. Construction of horizontal drains between the Refinery and the Saymonova Bay. The technology, widely used in other regions, is for the first time applied in the Caspian coast.

The project, "Re-processing Solid Cement and Concrete Wastes Materials from the Caspian Sea Shore," (Mangistau oblast, Kazakhstan, $10,239), is a local private company's pilot initiative to reduce the pollution from concrete installations in the Caspian coastal area. The main objective of the project is to establish a production site to process concrete and cement disposals, collected from oil production sites, and to sell the concrete for secondary use. The implementation of the project started in mid-2003. (See photos 4-5.)

Photo 4. The project, "Re-processing Solid Cement and Concrete Wastes Materials from the Caspian Sea Shore" (Kazakhstan)

The project intends to cooperate with oil companies in delivery of waste concrete materials into the project site from up to 110 km distance. The crane unloads delivered concrete wastes.

Photo 5. The processing workshop. The processed concrete will be used for construction and other purposes.

Domestic wastes pollution reduction and management

Two Iranian and one Russian project with large budgets are contributors in this field, occupying 30% of grant resources, or $272K.

The project, "Decrease of the pollution from the sewage, discharged into the river Volga," proposed by the municipal enterprise, "Vodocanal," (Astrakhan oblast, Russia, $99,700), is aimed to improve the treatment of waste water from a district with a population of 100,000 by the partial renovation of existing water treatment system and the establishment of modern aeration system. The reduction of major polluters concentration to permissible levels is expected to be achieved by the end of the project in December 03. (See photos 6-11) 

Photo 6. The project, "Decrease of the pollution from the sewage, discharged into the river Volga" (Russian Federation). The water treatment plant has been exploited for 28 years. The level of contamination of treated water exceeds Maximum Permissible Concentration. After implementation, the level of contamination by 11 contaminants will be within the permissible level.

Photo 7. Intermediate cut-off gates and channel of mechanical treatment before and after reconstruction

Photo 8

Photo 9. Outlet cut-off gates of mechanical treatment before and after reconstruction

Photo 10

Photo 11. Inlet chamber before and after reconstruction

The project, "Household Wastewater Management in Shahid Rejaii Neighborhood of the coastal city of Kiashahr Project" (Port of Kiashahr City, Gilan Province, Iran, $ 100,000), is designed to reduce waste water pollution entering Sefidrud River from a port town of 16,000, by using "Imhoff tank" technology. The reduction of 60% of pollution load will contribute to the preservation of surrounding national wetlands by the expected end of the project in June 2004. (See photos 12-13).

Photo 12. The project, "Household Wastewater Management in Shahid Rejaii Neighborhood of the coastal city of Kiashahr Project" (Iran). The municipal pollution is the major environmental problem of the coastal area of Iran, threatening the unique biodiversity of wetlands

The lack of municipal treatment systems in small settlements, such as town of Kiashahr, along the Caspian coast threatens the unique biodiversity of the wetlands.

Photo 13. The "Imhoff tank" technology is tested at small- scale in the area. The project will adopt this technology at the level of a small town, by constructing tanks with capacity of 200 cubic meters.

The establishment of the municipal solid waste separation and recycling program by active public participation is the main objective of the "Solid waste management in the coastal city of Ramsar" project (Ramsar city, Iran, $73,250). The project is designed to reduce the environmental pressure on the Caspian Sea and coastal zone from municipal wastes by using "separation from the source" method and involving the local population in the process of separation of wastes at collection points. After administrative clarifications, the project is ready to start the implementation in July 2003. It is expected that up to 30% of wastes of Ramsar city will be recycled on constant basis by the end of the project in April 2004.

Biodiversity protection and management

Projects aimed at sturgeon recovery predominated in this category, with 3 projects totaling $231K or 25% of total distributed resources.

"Brackish water culture of sturgeons in coastal regions of the Caspian Sea" project (Gilan Province, Iran, grant $96K) is expected to contribute to the conservation of sturgeon by testing and identifying operational procedures for sturgeon production in brackish waters through the establishment of a rearing site and producing sturgeon fingerlings. Despite the bad weather conditions in Gilan province in winter months and consequent delays in construction of the rearing site, the forth part of fingerlings was already stocked and the project planned to be completed by the end of this year.

As a part of a larger WB initiative on increasing capacity to breed sturgeon, the project, "Procurement and installation of marine stationary nets for capturing of sturgeon breeders for the hatcheries of the Azerbaijan Republic" (Neftchala district, Azerbaijan, $ 74,850), will provide hatcheries with broodstock by constructing four stationery capturing points on sturgeon migratory paths on Kura river. The project is planned to start in summer 2004 and be completed within 12 months.

The restoration of ecosystem and the cleaning of hatchery grounds in the Ural river is the goal of the project, "Increasing Depth and Bottom Clean-up Activities of Ural River" (West Kazakhstan Oblast, Kazakhstan, $60,000). Initiated by state Water Ways Enterprise, the project intends to increase the company's dredging capacity by purchasing dredging equipment and performing dredging of the Ural river bed. The project is planned to start in summer 2004 with the completion in June 2004.

Health and social-economic issues

Provision of safe drinking water was the main issue addressed by all four projects in this section. All countries, except Iran, had one project in this category. The total amount of project costs for this topic was $147K, or 16% of total.

"Establishing and Sustaining a drinkable water supply for Guba town and five settlements" project (north Azerbaijan, grant $14K) is aimed at providing 35,000 people of the Guba region with clean drinking water through the improvement of filtration system at the water intake point and by the protection of water catchment area from livestock use. Presently, the construction of the filtration system is nearly finished and all preparatory works are done for fencing the catchment area. The project is expected to be completed in September 2003. (See photos 14A, 14B, 14C)

Photo 14. The project "Establishing and Sustaining a drinkable water supply for Guba town and five settlements" (Azerbaijan). Silting and pollution from the cattle aggravate the drinking water quality in small settlements. 
A - Project will clean the inlet tank
B - Install filtration system for a small town
C - The catching area around the water system will be protected from animals

The project, "Modular Complex elaboration to provide small settlements with drinking water" (Astrahan region, Russia, $70,000), is aimed at solving drinking water problems in small settlements. It includes the design and preparation for production of a small treatment plant, as well as a pilot installation of one plant in Karalat village, which houses 1200 people. The project activities will start in summer 2004 and will be concluded within 12 months.

The provision of drinking water and some electricity to a small village of 250 people in the desert areas of the Caspian coast is the objective of the project, "Power and water supply with solar and wind energy utilization at Caspian Seashore" (Giyanly village, north of Turkmenbashi town, Turkmenistan, $22,470). The project will produce, on a pilot basis, an integrated unit to provide water purification and electricity for remote settlements with small populations. The project is at the initial stage and is to be completed by March 2004..The project, "Provision of the population of the Caspian region of the Republic of Kazakhstan (Atyrau and Mangystau regions), with quality drinking water" (Kazakhstan, $40,000), is aimed at the improvement of the drinking water in the supply water pipeline "Atyrau-Mangystau". The project includes the determination and analysis of the water quality in the pipeline, and the designing and the construction of the pilot installation (10 c. m./day) to improve the current water quality in five villages along the pipeline. The project is ready to start the implementation in late June 03 and is planned to be completed by February 04.

MSGP follow-up

The MSGP WB team will continue to provide the assistance to and monitoring of MSGP projects implementation until mid-late 2004.

Since the MSGP has been considered successful, the Caspian Environment Program has decided to include the program into the next GEF Caspian project, implemented by UNDP. In 2004 the Bank MSGP team will provide training to the new team on administration of the program.