The objectives of this assignment financed by the World Bank were to: (1) Assess the amount of Carbon Emission Reductions (ERs) that Tunisia's wastewater sector could achieve, focusing on the Greater Tunis, Nabeul-Hamamet, and Sousse areas, and (2) Identify potential and viable Clean Development Mechanism (CDM) wastewater projects. STELLA met with officials from the Ministry of Environment and key stakeholders involved in the wastewater sector (ONAS), and visited selected wastewater treatment plants (Choutrana, Sud-Méliane). STELLA collected relevant data on wastewater treatment plants (WWTP) with a capacity of more than 18,000 people-equivalent, calculated the amount of greenhouse gases (GHG) released due to the current sludge treatment practice, and assessed to what extent these emissions could be reduced. Wastewater CDM projects approved so far by the UNFCCC consist of installing anaerobic sludge digesters and flaring or using the methane produced on site. STELLA also conducted an economic and financial analysis of the potential CDM projects. We compared the economic and financial costs and benefits of anaerobic digestion projects for the six largest WWTP, based on a discounted cash flow analysis over the lifetime of the project. We calculated the Net Present Values (NPV) of each project based on expected revenues (with and without the sale of carbon credits) as well as investment and operation and maintenance (O&M) costs.

As part of the Water Resources Sustainability activity (WRS), STELLA staff designed and built a wastewater treatment and reuse plant in Drarga (20,000 people) near Agadir. With technical and financial support from the WRS project team, the Municipality of Drarga has learned to operate the plant and sell treated wastewater to farmers for irrigation. The plant relies on a combination of anaerobic lagoons and sand filters. The Municipality collects sewage fees to recover all of the operation and maintenance (O&M) costs and some of the plant's capital costs. STELLA staff helped the municipality negotiate a cost-sharing agreement with Etablissement Régional d'Aménagement et de Construction (ERAC)/Sud, a housing development public agency, whereby ERAC/Sud assumed total responsibility for building the main sewer line in Drarga. ERAC/Sud's contribution represented about 30 percent of the total cost of improving sanitation in Drarga.

For the United Nations Development Programme and the China International Centre for Economic and Technical Exchanges, STELLA has supported the Government of China in its ongoing institutional reform to promote greater efficiency in Municipal Solid Waste (MSW) services. The project assisted two pilot cities --Mianyang (600,000 people) in the Sichuan Province and Zhang Zhou (300,000 people) in the Fujian Province-- in transitioning toward a market-oriented management of MSW. STELLA helped the two pilot cities to identify options for MSW Management and develop a comprehensive set of affordable tariffs to ensure full cost recovery and therefore financial sustainability of operations. In particular, STELLA advised on the financial and institutional arrangements (BOOT, BOO, joint venture) that the two cities will establish with the private sector to provide waste management services and to procure and build Zhang Zhou's new waste management facility. STELLA has also designed and implemented a double awareness campaign. The first part of the campaign was to inform the population of the new tariffs while highlighting the benefits of the proposed reforms. The second part measured the reaction of the population to these new tariffs and to the improved MSW management. Finally, STELLA was also in charge of controlling and supervising Mianyang's new waste management facility (landfill, incinerator, and composting facility).

For Mianyang's Environmental Sanitation Bureau (ESB), STELLA conducted a diagnostic of the commercial use of biogas recovered from its landfill. The diagnostic had three objectives: (1) Evaluate the commercial feasibility of recovering biogas from the Mianyang landfill; (2) Improve air quality in Mianyang and China; and (3) Reduce the cost of waste management in Mianyang and China. STELLA characterised the baseline quantity and composition of gas generated by Mianyang landfill, developed options for utilisation and purification, and conducted cost benefit and recovery analyses. STELLA compared different reuse options for the biogas recovered, such as flaring, fuel for vehicles, waste incineration, and electricity production. According to the financial model developed by the team, converting the gas to electricity provides the highest Net Present Value. STELLA then conducted a preliminary environmental assessment of the project, prepared the conceptual design of collection, recovery, and combustion systems, identified data to be collected, and described the quality control and assurance procedures that will be undertaken to monitor the reduction of GHG emissions. The project team developed an appropriate transaction structure (e.g., BOO, BOT) and a financing strategy, and trained ESB staff on biogas collection and reuse. STELLA also organised two information and dissemination conferences with media involvement in Mianyang and Beijing to present the final outcomes of the study to other cities in China with similar needs.

For Pingzheng Environmental Engineering Co., STELLA prepared a Project Idea Note (PIN) that was submitted to the International Finance Corporation (IFC), the potential buyer of Certified Emission Reductions (CERs). STELLA also prepared a Project Design Document (PDD) to register the project of landfill gas recovery in Mianyang and Guang Yuan as a Clean Development Mechanism (CDM) project under the Kyoto Protocol. The project located in two cities located north of Chengdu in the Sichuan Province aimed at collecting and flaring or capturing the landfill gas to produce energy (electricity and heat), therefore reducing methane emissions from the two cities' landfills. Overall, the project planned to reduce total greenhouse gas emissions (GHG) by 822,591 tonnes of CO2eq for the period 2006-2012. STELLA prepared the different parts of the PDD, including a description of the project activities and their duration, the baseline and monitoring methodologies, the estimation of GHG emissions by sources, the potential environmental impacts, and stakeholders' comments. First, STELLA described the different reuse options for the biogas recovered, such as flaring, fuel for vehicles, waste incineration, and electricity production and conducted economic and financial analyses. According to the financial model developed by the project team, converting the gas to electricity provides the highest Net Present Value. STELLA then prepared the conceptual design of collection, recovery, and combustion systems, identified data to be collected, and described the quality control and assurance procedures that will be undertaken to monitor the reduction of GHG emissions. STELLA also carried out a preliminary environmental assessment of the proposed CDM project and identified relevant local stakeholders (mainly neighbours of the landfills) to seek their views on the project and take into account their comments during the preparation of the PDD.

For the European Commission, STELLA managed the Malta Environmental Approximation Project (MEAP). MEAP's goal was to develop and provide a realistic programme for the transposition, implementation, and enforcement of the EU environmental acquis. Implementing EU environmental legislation in Malta had significant administrational and institutional changes and required significant financial commitments in terms of investments, operation and maintenance costs, costs of enforcement, inspection and monitoring, etc. STELLA has identified four environmental sectors for which the approximation of the acquis will result in the largest investments: water supply and wastewater treatment, waste management, air pollution control, and industrial pollution control. In each of these sectors, STELLA has identified the cost components and established the frameworks to calculate total investment and annualised costs.

As a candidate for EU membership, Cyprus had to transpose the EU environmental acquis into its national legislation. This had a major impact on solid waste management practices for the municipalities of Cyprus. With funding from the European Commission (SMAP Programme), STELLA has conducted a project to identify and evaluate options for composting and for segregated collection in the Greater Limassol Area (GLA). To identify and evaluate these options, the project reviewed composting and segregated collection in Europe. It also collected data on solid waste generated by the Greater Limassol Area (in particular, hotels and restaurants) and on the markets for recycled materials (e.g., glass, paper and cardboard, plastics, metals, and compost) in Cyprus and in other countries. STELLA assisted the local pilot-recycling manager in designing the pilot project and the local public awareness specialist in designing awareness activities. STELLA provided the Team Leader for this project and prepared two sectoral reports. Finally, the project included the preparation of the Terms of Reference for the design of a composting plant, and provided an overview of the tools used by European municipalities to encourage segregated collection.

With financing from the European Commission's PHARE programme and as part of Romania's accession to the European Union, STELLA analysed seven specific requirements of the environmental acquis, assessed their costs, identified institutional provisions required for implementation, and made specific recommendations to the Romanian authorities for future implementation. The seven requirements dealt with water and wastewater, noise, air, Industrial Pollution Prevention and Control, Seveso, laboratories and environmental management systems, and biodiversity.

For Romania's Ministry of Environment and Water Management (MEWM) and with financing from the PHARE programme, STELLA provided the team leader, financing expert, and expert in charge of industrial pollution prevention and control. STELLA staff assessed the costs associated with the implementation of EU environmental directives and evaluated the financial needs for this implementation. STELLA developed tools to facilitate the implementation of EU environmental directives (cost benefit analysis, development of cost recovery mechanism, least cost-analysis of environmental law implementation). STELLA also elaborated a sound environmental financing strategy with sector and regional priorities, possible funding sources, and models for preparing feasible environmental investment projects. We analysed MEWM's training needs for environmental implementation and trained MEWM staff in relation to the activities of the project. STELLA also developed matrices of unit costs for the heavy investment directives, in particular, the urban wastewater treatment, drinking water, landfill, and waste management directives. We have developed the list of priority projects to be financed by ISPA and the EU Cohesion funds using various criteria such as the financial capacity for public services. The project has trained MEWM staff and staff from the local and regional Environmental Protection Agencies.

For the European Commission, and as part of Romania's accession process into the European Union, STELLA managed a study that constitutes a credible and useful basis for assisting Romanian authorities in the accession negotiations. The study makes a realistic assessment of the costs and benefits of transposing in five of Romania's industrial sectors the European environmental directives that require the heaviest investments, in particular the Industrial Pollution Prevention and Control (IPPC) and Large Combustion Plants (LCP) directives. The study also recommends policies that ensure an efficient transition towards European standards, produces an agenda for adopting these standards, and identifies timeframes for reaching them. It reviews the situation in five sectors -production of chemicals and petrochemicals, steel, energy, construction materials, and mining- providing recommendations for possible immediate ways to improve the situation in each case. In each of these sectors, STELLA evaluated the unit costs of various options to comply with the EU directives and prepared methods to calculate annualised costs and benefits.

STELLA provided the financial/economic expert for this project financed by the World Bank to provide technical assistance to the Budget Department of Romania's Ministry of Environment and Water Management (MEWM). STELLA facilitated continued improvements in the identification, costing, and prioritisation of MEWM's budgetary programmes. We ensured the development of links between the work of the budget department within MEWM and the National Development Plan work in the Ministry of Public Finance, in such a way that any projects or activities that will benefit from EU post-accession funds are fully reflected in the budget submissions. We also developed and integrated financial management and audit standards to follow up the quality/outcome of the financed budget programmes and the efficiency of MEWM's spending. We worked on strengthening MEWM's budget analysis to ensure that MEWM can effectively analyse policy options in the submitted budgets; we assisted in developing strategic planning processes and a strategic plan on the environment component for the next Medium Term Expenditure Framework (MTEF) period.

For the Managing Authority (MA) of the Sectoral Operational Programme (SOP) for the Environment under Romania's Ministry of Environment and Sustainable Development (MESD), STELLA assessed the financial and technical soundness of waste and water infrastructure projects to be co-financed by the Cohesion and Structural Funds and in compliance with the EU environmental directives. One of the issues studied was the impact of the definition of agglomeration under the wastewater treatment directive (91/271/CEE). The project strengthened MA's institutional capacity to perform a sound overall programming and monitoring of EU co-financed projects in Romania and to use efficiently and effectively the funds made available. Through on-the-job co-operation, elaboration of methodologies and staff training, this project reinforced the capacity of MA staff to prepare sound project plans, guide municipalities on the preparation of project proposals, appraise and prioritise project proposals, evaluate project applications and tender documents, manage efficiently the process of evaluation, and monitor the implementation of approved projects. STELLA revised waste and water infrastructure projects' documents such as master plans, feasibility studies, EIA and cost-benefit and sensitivity analyses, and corrected and improved the applications. We also reviewed and edited 11 Cohesion and Structural Fund applications for water and waste projects and revised tender documents according to FIDIC's yellow and red books. At the end of our project, DG Regio had approved almost 1 billion euros worth of water projects.

STELLA assisted the regional and national environmental authorities - Ministry of Development, Public Works, and Housing (MDPWH) and Ministry of Environment and Sustainable Development (MESD) - with the proper and timely implementation of an environmental infrastructure grant scheme for local authorities. The objective of this project was to improve environmental protection at the local and regional levels through supporting investments for the public sector and strengthening the institutional capacity to manage grant schemes and future structural funds. STELLA increased the number of local authorities aware of the opportunities offered by the grant scheme for financing small environmental infrastructure projects. We also increased the number of bankable environmental infrastructure projects proposed to ensure a complete absorption of the EC funds available. Furthermore, we trained members of the Regional Evaluation Committees for evaluating and selecting projects; we trained staff from MDPWH, MESD, Regional Environmental Protection Agencies (REPAs), Local Environmental Protection Agencies (LEPAs), and Regional Development Agencies (RDAs) in monitoring the grants. We also trained the beneficiaries of the investment grant schemes in all aspects required for the sound implementation of the grant contracts, including secondary procurement and monitoring. STELLA also assisted local authorities in preparing tender documents for environmental infrastructure projects, such as master plans, feasibility studies, environmental impact assessments and economic and financial analysis. Through the raised awareness of the relevant regional and local authorities, this project has supported the implementation of the environmental infrastructure investment grant scheme for the public sector at the regional and local levels.

STELLA has participated in the implementation of the "IWPM Integrated Wastewater Purification Management" LIFE project whose overall objective was to demonstrate how an innovative IWPM-System can improve wastewater management and treatment, increasing the quality of effluent and reducing costs, in support of EU-Directives on Wastewater, Integrated River Basin Management (IRBM; EU-Directive 2000/60/EC), and Flora, Fauna, Habitat (FFH). To improve the performance of wastewater treatment systems facing problems of load variations, IWPM installed pipes between two plants in Germany's Bad Essen region to equalise the loads entering the plants. The plants were physically (biologically activated pipes) and electronically (remote control) connected to equalise and optimise the loads, thus allowing using the plants' capacities to their maximum. STELLA studied IWPM's feasibility and transferability in new EU member states as well as candidate countries.

STELLA provided the team leader for this project investigating the strengths and weaknesses of the waste utilities in Pristina, Mitrovica, Gjilan, Ferizaj, Gjakova, Prizren, and Peja regions. The team focussed on two main areas essential for an effective waste management in Kosovo: (1) organisational and operational support; and (2) financial management support. STELLA staff (i) assessed the organisational, operational, and financial management of waste utilities and recommended administrative/institutional changes and financial measures to improve services; (ii) enhanced "customer contracts" and compliance with the rules of the Water and Waste Regulatory Office (WWRO) while including women and minorities without discrimination; (iii) improved the procedures to maintain infrastructure; (iv) assessed, improved, and extended the collection routes, including in rural areas; (v) improved the maintenance of computer systems and staff training; (vi) established financial control mechanisms; (vii) assessed and improved billing; and (viii) prepared a development plan.

STELLA implemented a project funded under ASIA-LINK, one of the Commission's Asia-wide Programmes. The goal of the project was to develop a curriculum on low-cost wastewater treatment for higher education in Europe and Asia. The project has: (i) strengthened the analytical and training capacity of higher education institutions in Asia (China and Vietnam) and Europe (Denmark and Belgium) by training MSc level students with the most up-to-date knowledge in low-cost wastewater treatment and environmental economics; (ii) assisted in developing curricula worldwide on low-cost wastewater treatment and environmental economics and in disseminating information through a network of higher learning institutions and former students; and (iii) established links among partners allowing the development of more contacts in education and research. The project developed new approaches, methods, and analytical tools to help integrate the environment into the decision-making process and influence the choice of appropriate policies. The project resulted in a complete curriculum, already tested and improved. Professors were trained and have now received all of the teaching materials required to repeat this experience later on. One of the outcomes is a strengthened capacity and awareness of professionals in economic concepts and methods to estimate environmental benefits and conduct cost-benefit analyses.

STELLA is implementing a USAID-financed project of three years and with a $7.2 million budget to assist the government of Kosovo with the implementation of the national policies in water supply and sanitation. STELLA is part of a consortium with PA Consulting in charge of supporting and reinforcing the financial and technical sustainability of Regional Water Companies (RWCs) to improve water supply and sanitation services. STELLA provides the Regional Technical Coordinator and a tariff expert for this project identifying and addressing key challenges in Kosovo's water supply and sanitation service sector. The main focus of the project is on two RWCs; Hidrodrini RWC covering the municipalities of Peja, Klina, Decan, Junik, and Istog; and Hidroregjioni Jugor RWC covering the municipalities of Prizren, Suhareke, Malisheva, and Dragas. The project objectives are to: (1) assist the Government of Kosovo in implementing national policy reforms to support the long-term sustainability of RWCs; (2) assist two RWCs by improving their technical and financial sustainability and effective management of water supply and sanitation services; and (3) support targeted infrastructure rehabilitation and equipment investment in reform-oriented RWCs that demonstrate improved system performance and sustainability.

STELLA staff completed two Desk Studies (DS) for the US Trade and Development Agency. First, STELLA staff reviewed a proposal by Sadat International and Edgeboro International for a feasibility study of a solid waste landfill in the city of Sidi Abdellah, Algeria. Given the strong opposition from environmental NGOs and because of the difficulty of collecting tipping fees, STELLA staff recommended that the first phase of the feasibility study focus on cost recovery and financial feasibility. Second, STELLA staff reviewed a proposal by Brown, Vence & Associates (BVA) for a feasibility study of Solid Waste Management (SWM) projects in Jijel, Algeria. BVA's proposal was to develop a SWM plan for Jijel, but with no direct link to a specific project. STELLA staff suggested that BVA improve their proposal by collecting more data on Jijel's municipal SWM budget and focusing on a more specific project with a measurable rate of return.

For the World Bank, STELLA staff reviewed a report characterising hazardous waste management practices in Tunisia and assessing the country's needs for waste management facilities. The report presents estimates of hazardous waste quantities generated in Tunisia by waste type, describes current waste management practices, and identifies existing waste management laws and regulations. Building on the pollution prevention hierarchy (from source reduction to disposal), the report develops short- and long-term waste management scenarios. The report recommends building pre-treatment and treatment facilities as well as controlled landfills in three regions. STELLA staff discussed the report's findings with the World Bank, including alternatives for implementing the report's recommendations.

Using methodologies developed under the Water Resources Sustainability activity to control soil erosion in the Nakhla watershed, STELLA staff implemented a similar watershed protection management activity in the Souss-Massa River Basin. These methodologies include multi-disciplinary, multi-agency, participatory approaches, social assessments, direct involvement of farmers and villagers, rapid implementation of actions that directly or indirectly reduce soil erosion and increase water conservation, implementation of activities that generate additional income for participants (in particular women), and careful monitoring of indicators towards progress. STELLA staff has conducted feasibility studies of soil conservation, water conservation, rangeland and forest management, irrigation management, and income generating activities. Sustainable forest conservation and management activities improve conservation and productivity of Argan and Thuya forests as well as animal grazing management as measured by extent of adoption of practices such as rotational grazing, animal exclusion, and development of alternative feed sources. They also reduce the amount of wood collected for fuel by women, thanks to increases in energy efficiency (cooking stoves) and adoption of alternative fuel sources. STELLA staff fostered broad public participation through participatory workshops and training sessions to disseminate the project approaches and methods to potential beneficiaries in the Souss-Massa basin where similar projects can be implemented.

In support of the Water Resources Sustainability (WRS) activity, STELLA staff prepared and facilitated two three-day workshops on the cost-benefit analysis of water and environmental projects. Using adult learning participatory techniques (brainstorming, working groups, exercises), we trained about 50 professionals (25 during each workshop) from Moroccan government agencies (central and local) and NGOs in assessing and comparing the economic and financial costs and benefits of water and environmental projects. We prepared the training materials and documentation in French, including tailor-made overhead transparencies, Moroccan case studies, and background reading materials. The training programme emphasised the need for and methods to understand and internalise the costs of environmental degradation. We organised a field trip to observe first-hand the types and costs of environmental degradation resulting from human activities (e.g., erosion resulting from poor land farming practices). Six months after these two training workshops, we organised follow-up hands-on workshops with the same participants to assess the costs and benefits of the three pilot projects to be implemented by the WRS activity.

STELLA staff assessed whether the US Trade and Development Agency (USTDA) should provide funding for the Rio de Janeiro Sludge Treatment Feasibility Study and the Suape Industrial Port Complex in Brazil. The Rio de Janeiro Water and Sewage Company (CEDAE) is a state-run company in charge of water supply and wastewater treatment within the State of Rio de Janeiro. CEDAE must find a way to handle the sludge resulting from wastewater treatment and is interested in giving a concession to a private firm for sludge treatment. STELLA staff recommended that USTDA fund $300,000 for a Rio Sludge Management Feasibility Study, subject to CEDAE's agreement that any sludge management projects will be developed and operated as concessions. The Suape Industrial Port Complex is in a large industrial area in the south of Recife in the State of Pernambuco. According to the feasibility study conducted by the Federal University of Pernambuco, at least two dozens of industrial units of the industrial complex generate 23 tonnes of hazardous waste per day, about 7,000 tonnes per year. Suape would like an external company to manage its hazardous waste, as is currently the case for electricity, water, and other services. The company selected to manage hazardous waste could also manage solid waste generated by the city of Recife. STELLA staff recommended that USTDA fund $25,000 for a pre-feasibility study to obtain agreements from various multinational companies ready to hire this company to manage their hazardous waste.

For the Singapore-based Regional Institute of Environmental Technology, STELLA staff assessed the demand for environmental infrastructure projects in 24 medium-sized urban centres (population between 90,000 and 350,000) in Vietnam. STELLA staff evaluated the development of private environmental infrastructure projects and studied ways to encourage foreign direct investment (Build Operate Transfer (BOT)) in urban and industrial wastewater and waste management systems. In particular, STELLA staff emphasised locally adapted waste recycling options of marketable products. STELLA staff also conducted a critical analysis of the type and level of development assistance that these centres had already been getting from bilateral and multilateral donors as well as from non-government organisations. Based on this assessment, STELLA staff developed a prioritised list of possible projects (including small in-the-field pilot projects with local population participation) and proposed an action plan to develop the most promising projects.

For the US Trade and Development Agency, STELLA staff prepared the terms of reference for a Feasibility Study (FS) on hazardous waste management in Malaysia. The FS evaluated whether Kualiti Alam (KA), the 15-year hazardous waste management concessionaire selected by the Malaysian government, could use the plasma technology in their Waste Management Centre in Bukit Nanas. Plasma arc torches use electricity to generate extremely high temperatures (from 5,000 to 14,000 degrees Celsius) that disassociate organics into gases and melt inorganics into lava. During its mission in Malaysia, STELLA staff met with KA's executives who expressed strong interest in plasma and requested TDA's assistance. KA's Waste Management Centre in Bukit Nanas currently includes a hazardous waste storage facility and a hazardous waste landfill. A plasma plant would complement the upcoming 50,000 tons per year incinerator and would handle ash from the incinerator and wastes that cannot be incinerated. To prepare the terms of reference, STELLA staff reviewed the quantities and types of hazardous wastes generated in Malaysia and assessed current waste management practices. STELLA staff also estimated the capital and operation and maintenance costs of KA's proposed 80,000 tons per year Plasma Pyrolysis and Vitrification Plant. STELLA staff recommended that TDA finance a FS to assess the commercial viability of the plasma technology for hazardous waste treatment. TDA signed a $300,000 grant agreement with KA. A consortium of four US companies (Global Plasma System, Westinghouse, SAIC, and Ernst and Young) conducted the FS (under a cost-sharing arrangement) that resulted in a partnership between Global Plasma System and KA.

For the World Bank, STELLA staff participated in a mission to evaluate health effects from air pollution (lead and particulate) on the urban population of Malaysia (Kuala Lumpur, Penang, Johor, and Perak). Using data on ambient concentrations of lead and particulate in these four cities and dose-response relationships developed in the United States, STELLA staff estimated the magnitude of several adverse health outcomes including: mortality, respiratory hospital admissions, emergency room visits, restricted activity days for adults, lower respiratory illness for children, asthma attacks, and chronic disease. STELLA staff evaluated the economic value associated with these health effects and their impact on Gross National Product (GNP). STELLA staff also estimated health and economic benefits that would result from reducing ambient concentrations of lead and particulate to World Health Organization (WHO) standards.