CHERNOBYL25

Donors & Funds

Since the middle of nineties, the G7 countries and European Union took the lead in providing assistance to mitigate the consequences of the Chernobyl accident. In 1995 a Memorandum of Understanding between the G7, the European Union and Ukraine on the closure of Chernobyl by the year 2000 reflected this commitment. Since then, the European Union and the United states, in particular, have played a major role in the implementation of the Memorandum of Understanding.

The Shelter Implementation Plan and the Chernobyl Shelter Fund

The shelter built in 1986 was only a temporary solution and in 1997, with the strong support of the European Union, a group of international experts from the European Union, USA, Japan and Ukraine finalised a multidisciplinary construction management programme known as the Shelter Implementation Plan.

In 1997 the G7, the European Union and other donors requested the European Bank for Reconstruction and Development to set up the Chernobyl Shelter Fund for the implementation of the SIP. The Bank acts as the fund manager and ensures the oversight of the effective implementation of the project together with the Government of Ukraine. The Bank enters into grant agreements with the recipient organisation and disburses funds to project contractors.

The highest decision-making body of the Fund is the Donor Assembly, comprising 23 countries and the European Union. Since its establishment in 1997 it has been chaired by Hans Blix.

To date the Chernobyl Shelter Fund has received contributions from 23 countries, the European Union and donations from six countries. In 2009 EBRD shareholders provided a €58 million grant for the New Safe Confinement.

As of end-2010, the total amount received for the Chernobyl Shelter Fund is €990 million (including the proceeds of management of liquid assets, the EBRD contribution and some projected income). The Assembly has approved 9 grant agreements committing over €800 million to date. Within the grant agreements 162 contracts have been concluded, of which 135 have been completed.

CSF Contributions

* The EBRD does not contribute to NSA and CSF but provides grants directly for NSC and ISF-2.
** In addition, Ukraine has accepted to take over one SIP task valued at US$ 22 million.
*** Donations have been made by Iceland, Israel, Korea, Portugal, the Slovak Republic and Slovenia..

The Nuclear Safety Account

The Spent Fuel Storage Facility is financed through the EBRD‑administered Nuclear Safety Account. In July 2007 donors agreed to fund the completion of this facility which is a key facility for the decommissioning of the Chernobyl reactors 1-3. Contributors to the Nuclear Safety Account are the following 16 countries plus the European Commission.

In addition, the EBRD provided a €77 million grant for the Interim Spent Fuel Storage Facility in 2008. As of end-2010, the Nuclear Safety Account held some €520 million (including proceeds from management of liquid assets, the EBRD contribution and projected and other income). Projects in Bulgaria, Russia and Lithuania with a total value of €140 million have been successfully completed.

The Nuclear Safety Account was set up at the EBRD in 1993. The body includes 15 countries and the European Community and has so far received more than €300 million in contributions from its donors. The Nuclear Safety Account is chaired by Ian Downing.

The EBRD has entered into a separate Grant Agreement with Chernobyl committing €77 million to the construction of the Spent Fuel Storage Facility.

NSA Contributions

* The EBRD does not contribute to NSA and CSF but provides grants directly for NSC and ISF-2.

The International Advisory Group

The project organization for SIP implementation provides for a high level consultative body, the International Advisory Group (IAG), to assist the CSF Assembly of Contributors and the EBRD with independent advice on technical and regulatory issues and decisions. The IAG is composed of twelve senior experts covering the wide range of expertise deployed in the SIP. Its membership reflects the broad geographical spread of the nations contributing to the CSF. The IAG, chaired by Carlo Mancini, has met so far more than 50 times, both in plenary and reduced formats, and its advice has been requested at each of the 10 SIP programmatic decisions, including the 3 key ones concerning the stabilization and shielding programme, the FCM management strategy and the choice for the New Safe Confinement. As part of its ongoing support to the implementation of the SIP the IAG was asked by the CSF Assembly to undertake a review of the progress and achievements of the SIP.

The contribution of the IAG to the technical direction of the SIP has been widely acknowledged as valuable and important.