With regard to environment, the improvement of the water quality in Lake Peipsi/Chudsko-Pskovskoe is a key challenge. The lake’s eutrophication causes changes in the lake’s ecosystem, reduces fish stocks, decreases the quality of water and, in critical cases, also encourages the spread of blue-green algae that emits a poison which endangers the biota as well as the health of swimmers. From the entrepreneurship angle, there are several challenges: - the growth in the number of water craft users has also increased the environmental risks. There is the need for modern small harbours equipped with high-quality and environmental-friendly facilities and equipment; - existing range of related tourism services and products is rather limited, due to lack of suitable infrastructure objects. Several harbours are in use, but mooring conditions are primitive, proper piers are missing and harbours do not have a contemporary infrastructure to meet the environmental requirements and to collect waste from watercraft users. The overall objective of the Project is to promote sustainable socio-economic and environmental development of the Lake Peipsi/ Chudsko-Pskovskoe area. Project Specific Objectives are to contribute to the improvement of environmental situation and to the socio-economic development of the Lake Peipsi/ Chudsko-Pskovskoe area. The objectives will be achieved through the the following activities: With regard to environment: - reconstructing 1 water (in Cheryokha village) and 1 wastewater treatment facility (in Pskov city), and by establishing contemporary infrastructure, which meet environmental requirements in 7 small harbours (in Vasknarva of Alutaguse, Mustvee, Luunja, Tartu, Räpina and Värska on the Estonian side and in Tolbitsa village of Pskovsky area on the Russian side) - reconstruction of wastewater treatment facility of Pskov city to meet HELCOM requirements and Russian standards for main pollutants - 2 000 inhabitants of Cheryokha village will have access to clean water With regard to entrepreneurship: - new contemporary small harbours’ infrastructure established in 5 small harbours (in Värska, Luunja, Vasknarva of Alutaguse and Tartu in Estonia and Tolbitsa village in Russia); additional infrastructure objects and services developed in 3 small harbours (in Räpina and Mustvee in Estonia and in Pskovsky area in Russia) - ca 70 new mooring places established with the infrastructure development of existing or new harbours, incl. 20 in Värska, 30 in Luunja, 10 in Vasknarva of Alutaguse, 10 in Mustvee. - ca 14 new workplaces established in small harbours, incl. 1 in Värska, 1 in Räpina, 1 in Mustvee, 2 in Luunja, 1 in Vasknarva of Alutaguse, 8 in Tartu - improved regular transport connection between mainland and islands in Pskovsky area for local inhabitants, entrepreneurs and tourists - 4 times increases passenger traffic by boats For implementation, the Project is divided into 5 work packages: - Work package P Preparation - Work package M Management - Work package T1 Core activity Exchange of Experiences and Capacity Building - Work package I1 Investment Small harbours in Estonia - Work package I2 Investment Small Harbours and Water/Waste Water Treatment Facilities in Russia - Work package C Communication and Visibility The achievement of the project objectives will be more efficient using the cross-border cooperation, because environmental effects and human actions regarding Lake Peipsi/Chudsko-Pskovskoe are always cross-border in nature. The Project will provide the Estonia and Russian organisations the opportunity to plan and implement the measures to both improve the environmental condition and to encourage the economic development of the lake area jointly. In particular: - Tartu City Government and other local municipalities of Estonia will actively co-operate with Administration of Pskovsky area and with Municipal enterprise of the Pskov city “Gorvodokanal” by proposing solutions to be used for construction of water treatment and reconstruction of wastewater treatment facilities. - the municipalities of Alutaguse, Setomaa, Tartu, Mustvee, Luunja and Räpina will exchange the best practices and solutions with the Administration of Pskovsky area for construction and further development of infrastructure and services-products in small harbours, to be provided to tourists, fishermen and other clients. The Project introduces new elements in cross-border co-operation, by establishing a wide range of new services in small harbours and implementing new solutions in waste water and water treatment. The Project is composed of 9 organisations in total, incl. 6 from Estonia and 3 from Russia.