Financing the Incremental Costs

5.4. Financing the Incremental Costs

Additional funding required to strengthen the financial sustainability and ensure the prompt and adequate provision of funding for priority environmental actions identified in the SAP/NAPs, may be secured by the Dnipro basin countries in the form of external investments, loans, grants, and other technical assistance arrangements.

Over the long term, the financing capacity of the riparian countries of the Dnipro Basin is based on the forecasts of the main indicators of socio-economic development. In addition, it is determined by the national target of the Russian Federation to double its GDP over the next 10 years. Thus, the Republic of Belarus will be able to cover 80-85%, the Russian Federation 100% and Ukraine 80% of their investment needs associated with the SAP implementation from their respective national sources. The estimate for the Russian Federation does not exclude the importance of external investments (including donor funding) for the SAP/NAP implementation, provided that the terms and conditions of such investments are attractive (the external sources could provide up to 10-20% of the total required amount of investment). Incremental costs for Republic of Belarus and Ukraine could be provided in accordance with the principles of equity sharing with external and internal investors participating in attractive bilateral terms and conditions too. Thus, the required amount of incremental costs could be as follows:

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