Haapsalu & Matsalu Bays Environment Project

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The Haapsalu and Matsalu Bays Environment Project will be implemented over four years as an environmental management project for the coastal area of western Estonia. It will consist of a Water and Wastewater Improvement Component (WWIC) and an Environmental Management Component (EMC). The WWIC will consist of: a) rehabilitation and expansion of the Haapsalu water and wastewater system, including equipment and works along with engineering services; and b) institutional strengthening and training to assist in establishing an autonomous and financially independent water and wastewater utility in Haapsalu. This will include assistance for tariff restructuring/tariff planning and financial operations. The EMC will consist of: a) technical and financial support through the Ministry of Environment (MOE) for the implementation of selected elements of the Management Plan for Matsalu State Nature Reserve by coordinating and providing funding for identified investments such as access roads, observation towers, and information boards; b) design and implementation of a program of cost-effective activities to reduce point and non-point source pollution of Matsalu Bay from small settlements and agriculture; and c) support for planning and management of eco-tourism.