Sillamae Metal and Chemical Production Plant, Estonia

Figure 1: Access road to the Sillamae tailings facilities

Introduction

The Metal and Chemical Production Plant at Sillamäe produced enriched uranium to the Soviet Union for bomb making. The plant was in operation for almost 50 years and produced 12 million tonnes of toxic radioactive waste.

The waste pond lies at its closest point 30m from the Baltic Sea and is a huge concern as seepage from the impoundment is leaching onto the sea. A severe storm could cause a part of the dam to collapse spilling the contents of the impoundment into one of Europe’s major watercourses.

The impoundment covers 40 hectares and rangers from 24 – 26m in height. The environmental hazards from the impoundment are:

The waste in the dam is a result of the Cold War. Does this make it an international problem?

Restoration

Estonia won independence from the Soviet Union in 1991 and appealed for help regarding cleaning up the waste. Estonia didn’t have the money or the expertise to carry out the clean up operation.

The clean up and restoration operation includes:

Financing

The restoration project was estimated to cost €(Euros)20 million as is being funded as follows: (taken from: www.ecosil.ee)

Phare LSIF 5 million EUR
Norway approx 2 million EUR
Sweden approx 1 million EUR
Denmark approx 1 million EUR
Finland approx 1 million EUR
NEFCO guarantee 2 million EUR
Estonia 3 million EUR
NIB loan to Estonia 5 million EUR

 

Information acquired and decisions adopted at the discussions:

  1. NEFCO would be the financial manager for directing the financial share of (IFI) Phare and donor countries to the project;
  2. The project management unit would be established to Ökosil Ltd. founded with the aim of restructuring the refusal depository in Sillamäe, NEFCO prepares the terms of reference of the management unit and the financial memorandum between all participants of the project;
  3. The information of construction companies of Estonia and price of building materials in East-Virumaa are considered for making preliminary calculations of all local works for the general budget of 20 million EUR;
  4. European supervision and quality requirements should be followed for carrying out the project; if Estonia lacks specific skilled know-how, the latter would be acquired from foreign countries;
  5. The Steering Group, consisting of the representatives of all donor countries and organisations would be established for financial supervision; the steering will adopt the budgets of the project management unit;
  6. According to the requirements of the European Commission the project should be launched in 1999; the rules of the European Commission (Decentralized Implementation System - DIS) should be applied for procurement, contracting and financing of the project.
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