2011年-世界发展银行全球_Azerbaijan___Country_Environmental_Analysis_84页_1mb

Azerbaijan: Country Environmental Analysis Summary

Core Content

This report, titled "Azerbaijan: Country Environmental Analysis", is a World Bank document published in March 2011. It focuses on the State Environment Program (SEP) and evaluates its role in environmental protection, public environmental expenditures, and institutional readiness. The analysis is aimed at helping the Government of Azerbaijan (GoA) improve the efficiency and effectiveness of environmental investments and align them with national priorities.

Main Environmental Issues and Priorities

The report outlines several critical environmental challenges facing Azerbaijan, as defined in the 1998 National Environmental Action Plan (NEAP), which remain relevant today:

• Severe industrial and oil-related pollution: Heavy industry, oil exploration, and energy production have caused significant environmental degradation.
• Threat to sturgeon stock: The sturgeon population is at risk due to loss of reproductive capacity, pollution, and overfishing.
• Water quality decline: Both urban and rural areas suffer from deteriorating water quality, leading to an increase in waterborne diseases.
• Loss of agricultural land: Erosion, salinization, and pollution from heavy metals and chemicals contribute to the loss of fertile land.
• Damage to the Caspian coastal zone: Flooding from sea level rise and pollution have impacted the coastal environment.
• Cultural heritage degradation: Natural and modern environmental problems, such as acid rain and uncontrolled development, are contributing to the deterioration of cultural heritage.

State Environment Program (SEP)

The SEP 2006–2010 was established in 2006 through a Presidential Decree and is a multi-agency investment program with 65 activities. It aims to improve environmental conditions in areas affected by degradation, such as the Baku Bay, Absheron Peninsula, and Heydar Aliyev International Airport. The program emphasizes health-related issues and includes a timeline for implementation. The first phase of the SEP concluded in 2010, and a second phase (2011–2014) is currently under preparation, with alignment to NEAP priorities.

Key Aspects of the SEP

• Formulation and Implementation: The SEP was developed through a consensus-based process involving sectoral plans and technical experts. It assigns responsibilities to executing and supporting agencies and includes preliminary cost estimates.
• Priority Interventions: The program focuses on addressing land-based pollution, wastewater treatment, and coastal zone degradation.
• Progress to Date: Only 40% of SEP projects were completed by 2010. A significant portion of the completed activities were feasibility studies rather than actual implementation. Over 50% of projects lacked proper documentation, such as technical and social justifications, budgets, and environmental assessments.
• Budgeting and Funding: The SEP does not currently require budgets to be allocated at the outset. Instead, it is circulated for approval with cost estimates, and agencies must internalize the program into their own priorities. The program is largely funded by the State budget, with limited involvement from external sources.

Public Environmental Expenditure Review (PEER)

• The report highlights that official environmental expenditures in Azerbaijan are significantly underestimated, as they exclude investments made by state corporations and off-budget activities.
• Using OECD methodology, a more comprehensive estimate of environmental expenditure is proposed, which would include corporate investments and align with international standards.
• Environmental expenditures accounted for 0.5% of GDP based on official statistics, but an inclusive estimate suggests 3% of GDP, comparable to high-income countries like Germany, Denmark, and the Netherlands.

Institutional Constraints

• Role Clarity: There is a lack of clear roles and responsibilities among collaborating agencies, leading to inefficiencies and conflicts.
• Budget Allocation: The current process for SEP formulation does not ensure that budgets are aligned with program priorities at the outset. Instead, agencies must integrate SEP activities into their own budgets, which is inefficient.
• Interagency Coordination: The Inter-Agency Working Group on Environment (IAWGE) plays a key role in prioritizing and coordinating SEP activities, but its role needs clarification to enhance effectiveness.

Recommendations

The report offers several key recommendations to improve the SEP and public environmental expenditure systems:

• Update the National Program on Environmentally Sustainable Social and Economic Development using criteria such as the cost of environmental degradation and its link to health and poverty.
• Strengthen the Ministry of Environment and Natural Resources (MENR) to serve as a central hub for environmental expenditure information.
• Improve transparency by publicly disclosing SEP project concepts in an agreed format.
• Clarify the role of IAWGE to support better interagency coordination.
• Establish a process for each principal executing agency to clarify how its activities align with other environmental initiatives.
• Create a public information center for all SEP projects to promote transparency and accountability.
• Encourage state corporations like SOCAR and Azerenerji JSC to disclose environmental expenditures in their annual reports.
• Initiate an analytical paper by the State Oil Fund of Azerbaijan (SOFAZ) to expand the public benefits of natural resource revenues.
• Develop comprehensive environmental expenditure definitions based on international standards to support planning, implementation, and monitoring.

Conclusion

The SEP is a critical tool for addressing environmental challenges in Azerbaijan, but its implementation and financial management require improvement. The report underscores the importance of institutional clarity, budget alignment, and transparency in ensuring that environmental investments are effective and aligned with national priorities. The Government of Azerbaijan is encouraged to adopt the OECD methodology for environmental expenditure accounting and to improve the coordination and planning of environmental programs.