PROGRAMS FOR REMEDIATION OF PAST ENVIRONMENTAL DAMAGES
MEASURES TO ADDRESS THE PROBLEM OF PAST POLLUTION
The problem with past pollution is one of the most difficult environmental problems to
solve due to the diversity of the origin and type of pollution, and because it is widely
spread on the territory of the country. The scope of the term “past pollution” has many
aspects — legal, economic, health, environmental, technical, etc. Generally, past
pollution is identified by changes in the quality of environmental components
(soil, surface water and groundwater, flora and fauna) to a degree representing a risk to
human health.
In the period 1998—2006 following a proposal of the Supreme Environmental Expert
Council at the Ministry of Environment and Water (MoEW), with a decision of the
Minister of Environment and Waters, were approved 23 programs for the remediation of
past environmental damages (worth approx. 309 mln. BGN) for privatized companies.
For the purposes of those programs implementation contracts were signed with the new
owner, with the exception of two of them, which the MoEW chose to contract under the
Public Procurement Law.
To provide the budget with the necessary financial resources, loan contracts with the
World Bank were signed, with subject — removal of past pollution during privatization
(in 1998 — a loan for the Bulgaria Environmental Remediation Pilot Project (ERPP)- in
the amount of 16 mln. USD for, and in 2000 — the Environment and Privatization
Support Adjustment Loan (EPSAL)- in the amount of 50 mln. EUR).
The World Bank’s Bulgaria Environmental Remediation Pilot Project "for improving the
environment in the region of the town of Pirdop resulting from the production of
“MDK”AD — Pirdop” worth 25 mln. USD, and it is a precedent in the remediation of
past environmental pollution on the territory of the country. The World Bank praised
highly the achievements of the project. Its successful implementation of the project was
an illustration of performance in accordance with the national environmental legislation,
and stimulated the process of preparation and enforcement of a legislation on remediation
of past enviromental damages caused prior to the privatization, it increased the trust in
the communities involved, significantly improved the condition of the area around the
factory, and provided employment for the local population.
The programs for remediation of past damages to the environment caused prior
privatization are currently still in process of implementation and their funding, as
end of 2011 amounted to approx. 25 mln. USD for the purposes of the
(4 mln. USD of which were granted by National Trust Eco Fund) and
123 mln. BGN from the state budget for the other implementing programs.
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Currently the programs for remediation of past environmental damages are at different
stages of implementation. The programs of the following companies have been
completed: “MDK” AD” — Pirdop (2003), "KCM" AD — Plovdiv (2003), "BIOVET"
AD — Peshtera (2004), "SOPHARMA" AD — Sofia (2005) "NEOCHIM" AD —
Dimitrovgrad (2007), "BRIKEL" AD — Galabovo (2009), "ASSAREL MEDET" —
Panagyurishte (2010), "INDUSTRIAL ZONE — VARNA ZAPAD" — "OLD SODIUM
PLANT" site — Devnya (2010), "LAGEREN ZAVOD" — a part of the "VMZ" AD —
Sopot (2011), CEZ Bulgaria — Sofia (2011).
For various reasons the implementation of programs of the following companies was
stanstill: "OSOGOVO" AD — Kyustendil (insolvency/sale of assets), "GEOSOL" AD —
Provadia (due to the contractor’s insolvency the contract was terminated),
"KREMIKOVTZI" AD — Sofia (due to a failure of execution of the company`s
compliance program with the environmental legislation wich is in a correlation with the
the past environmental remediation program; followed by insolvency and liquidation of
the company), "AGROPOLYCHIM" AD — Devnya (the contract was terminated due to
failure of implementation of the past environmental remediation program by the
contractor — a third party chosen by the MoEW under a procedure of the Public
Procurement Law.). The contract for the past environmental remediation program of
“RUDNIK DIMOV DOL” — a part of the "GORUBSO RUDOZEM" AD — Rudozem
was terminated, due to a sale of the assets. The implementation of past environmental
remediation program of the "TRAKIA RM" Ltd. — Plovdiv program is yet to be done,
due to failure of the performance of a condition stipulated in the decision for program
adoption.
All other programs are in various stages of implementation. the program in the most
advanced stage is the implementation of "ELLATZITE-MED" AD – Mirkovo.
In order to strengthen the control of the institutions, representing the State on the
contracts for the implementation of past environmental remediation programs,
"Monitoring rules for the performance of the parties to the implementation of past
environmental damage programs" have been developed and approved in January 2011 by
the Minister of Environment and Water, the Minister of Finance and the Executive
Director of the Privatization Agency.
In 2011 an amendment of the Environmental Protection Act was adopted in the part of
Para 9 of the Transitional and Final Provisions (promulgated, SG42/3.06.2011), which
stipulates that upon termination of the contract the past environmental remediation
program shall be completed in accordance with the Regulation regarding the terms and
conditions for determining the responsibility of the State and the remediation of any
damages to the environment, resulting from past actions or inactions in the privatization
(the Regulation.
With a decree 317 of 24.11.2011 of the Council of Ministers for the adoption of the
Regulation amendments, the terms and conditions for completing the past environmental
remediation programs, which had been contracted, but their performance was terminated
due to declared insolvency and / or liquidation, or due to a breach of contract, were set
out.