PROGRAMS FORREMEDIATION 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 remediationof past environmental damages (worth approx.309mln.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 EnvironmentalRemediationPilot Project (ERPP)- in the amount of 16mln.USD for, and in 2000 — the Environment and Privatization Support Adjustment Loan (EPSAL)- in the amount of 50mln.EUR).
The World Bank’sBulgaria EnvironmentalRemediationPilot Project"forimproving the environmentin the region ofthe town of Pirdopresulting from the production of “MDK”AD —Pirdop”worth25mln.USD, andit is a precedent in the remediation of past environmental pollution on the territory of the country. The World Bankpraisedhighly the achievementsof the project. Its successfulimplementationof the project was an illustration of performance in accordance with the national environmental legislation, and stimulated the process of preparationand enforcement of a legislation on remediation of past enviromental damages caused prior to the privatization, it increasedthe trust in the communitiesinvolved, significantly improved the condition of the area around the factory, and provided employment for the local population.
The programsfor remediation of pastdamagesto the environmentcausedprior to the privatizationare currently still in process ofimplementation and their funding, as of the end of2011 amounted to approx. 25mln.USD for the purposes of the ERPP(4mln.USD of whichwere granted by National Trust Eco Fund) and about 123mln.BGNfrom the state budget for the other implementing programs.
Currently the programsforremediation of past environmental damages areat different stagesof implementation.The programsof 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 — VarnaZapad" — "Old Sodium Plant"site — Devnya(2010), "lageren zavod" — a partof 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 MoEWunder 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 — Rudozemwas terminated,due to a sale of the assets. The implementation of past environmental remediation program of the "TRAKIA RM" Ltd. — Plovdivprogram is yet to be done, due to failure of the performance of acondition stipulated in the decision for program adoption.
All otherprograms arein various stages ofimplementation.the program in the mostadvanced stageis the implementationof "Ellatzite-Med"AD–Mirkovo.
In order tostrengthenthe control oftheinstitutions, representing the Stateon the contractsfor the implementation ofpast environmental remediation programs,"Monitoring rules for the performance of the partiestothe implementation ofpastenvironmental damageprograms" have been developed and approved in January2011by the Minister ofEnvironment and Water, the Minister of Finance andthe Executive Director of thePrivatization Agency.
In 2011 anamendment of theEnvironmental Protection Actwas adoptedin the part ofPara 9of the Transitionaland Final Provisions(promulgated, SG42/3.06.2011), which stipulates thatupon termination of thecontract the past environmental remediation program shall be completedin accordance with the Regulationregarding theterms and conditionsfor determining the responsibilityof the State andtheremediation of anydamagesto the environment,resulting from pastactions orinactionsin the privatization(the Regulation.
With a decree317 of24.11.2011 of the Council of Ministers forthe adoption ofthe Regulation amendments, the terms and conditionsfor completing thepast environmental remediation programs, whichhad been contracted, buttheir performance wasterminated due todeclaredinsolvency and/or liquidation,or due to a breach of contract, were set out.