To achieve this objective, the PDF-B Project will involve the development of pilot project proposals for introducing cleaner production methods (CPM) to a number of small (medium-sized) industries (SMSIs), discharging their effluents to the municipal wastewater collection and treatment systems.

In parallel with the identification of these pilot projects, the PDF B Project will carry out a review of sustainable financing mechanisms using all available sources of funding (including internal reserves accumulated and held by the industries), and the role of the public and local authorities in monitoring compliance and operational performance. This component will also involve the review of legal and regulatory options to control pollution loads received by Vodokanals with industrial effluent discharges and measure success (or lack of success) in achieving the required level of environmental performance.

  The Objective is the development of scientifically and economically justified criteria for selecting a small or medium-sized industry, discharging its effluents through a priority Vodokanal (a priority Vodocanal should be selected from the SAP list of "Hot Spots"), for subsequent implementation, subject to the decision of the National Programme Management Committee (NPMC), of a pilot project designed to introduce cleaner production methods. The work also includes: (1) a review of options and preparation of recommendations for improving the financial sustainability of cleaner production initiatives; (2) a review of current practices and monitoring arrangements for regulating the industrial effluent discharges into the municipal sewer systems in the Dnipro Basin countries, and development of recommendations on their improvement; and (3)  a review of the role and capacity of local authorities, communities and non-governmental organisations (NGOs) for regulating effluent discharges, pollution monitoring and control.