Bitterfeld - Starting IMS

Content

Problem Definition

Bitterfeld is a small town in the industrial area in Germany between Dresden & Berlin. The contamination situation at the Bitterfeld megasite is related to the industrial development of the area, which began more than 100 years ago and resulted in three main industries:

• open-cast lignite mining
• production of energy
• chemical industries.

Up to 1990, in an area covering about 10 km2, more than 5,000 different products and compounds were produced.

The chemical production and the disposal of chemical waste in abandoned open-cast lignite mines lead to a large-scale soil and groundwater contamination, estimated at about 100 million cubic meter of contaminated water. The first comprehensive remediation framework concept for Bitterfeld was completed in 1994. The complete decontamination is technically and economically not feasible. The stepwise approach of the IMS leads to a feasible scenario where risk reduction and costs are optimized. Final decisions about the implementation of the plans still have to be made.

Checklist of existing information

The deliverables of the case-study of Bitterfeld can be downloaded under Workpackage 3 in the 'About' part of the IMS: About->Deliverables.

Organizing Stakeholders

Stakeholder organization structure for Bitterfeld megasite

PLAATJE

Stakeholders for Bitterfeld megasite

Boundary conditions

The redevelopment measures that are taken - and almost completed - at Bitterfeld megasite, aimed at a complete reuse resp. continuation of the use of the former industrial location as a site of chemical industry. No change in use was designated. The infrastructure of the site is being developed in order to meet the requirements of modern chemical industry.

Content of the redevelopment measures are:

• the demolition of old buildings and plants,
• the renewal of existing lines for provision and disposal,
• the renewal of traffic routes (road and rail),
• the preparation of industrial settlement areas,
• the development of a local site concept for industrial settlement.

The redevelopment measures provided a significant improvement of the local infrastructure, which resulted in settlement of modern industry and its ancillary industry at the location. However, an adequate increase of employment and revenues was not achieved by this positive site development.

1. Employment
After the political and economic change, more than 80% of the employees in the chemical industry became unemployed in the years 1990-1993. Additionally the lignite mining ceased in the same period of time.

A significant increase of employment was not achieved by modern industry established after 1990, which can be referred to the drastically increased productivity forced by market economy. Today 20% of the employees of the chemical industry perform 80% of the total turnover compared to 1989.

The unemployment rate in the district of Bitterfeld amounts to 22% today, which is above the average of Saxony-Anhalt (20%). The average rate of the Federation amounts to 11%.

The district of Bitterfeld suffers from a "brain drain", which is a general tendency in the comparable structurally lagging parts of eastern Germany.

The direct effect of the redevelopment measures is shown exemplary by the following numbers: For each Million € that had been invested in redevelopment measures at the chemical location in Bitterfeld in the years 2002-2003 two new jobs were added.

The redevelopment of the industrial location is almost finalized now. Acceptable and sustainable on-site conditions for industrial settlement are prepared. However, the rebuilding of infrastructure had no significant impact on the employment.

The long-term development of the employment will be dependent on the general economic situation.

2. Increase of neighbouring property value
A significant increase of neighbouring property value is documented from 1993 to 1995, is caused by the improvement of the environmental conditions of the air and the renewal of the infrastructure of the adjacent communities (traffic ways, conductions, buildings). Since 1995 the property value is constant, though redevelopment measures were taken at the industrial location in the meantime. This indicates that the successful redevelopment measures and, in result, the settlement of modern industry had no significant positive impact on the property value in the adjacent communities.

3. Increased tax revenues
The redevelopment measures at the industrial location were not associated with a significant increase of municipal tax revenues in the adjacent communities. The tax revenues were stagnant after 1995. This results from the following circumstances:

• The income and sales tax revenue is directly proportional to the economic situation and the employment rate, therefore stagnant resp. tendential regressive.
• The property taxes are among others dependent on the use and on the site density. The property tax revenue tendential decreases, because many old buildings were demolished and areas are not completely in use.
  A significant future increase of tax revenues is not expected, because the economical situation is not expected to improve significantly.
  
  4. Infrastructure
  The infrastructure is the traditional favour of the industrial location Bitterfeld.
  
  Though some negative factors for industrial settlement remain, for example:
• Low attractiveness of the region for high qualified staff (spare time/cultural activity, low payment compared to western German standard).
• Historically bad reputation.
• Continuous regional "brain drain".

The location is very well prepared for new industrial settlement, which is a result of the redevelopment measures that were taken and almost completed in order to restore and modernize the infrastructure:

• Constructible areas provided with all necessary supply are prepared;
• The traffic lines are at the best standard;
• Service pipes are modernized;
• Adapted services are offered.

The existing chlorine-based chemical industry developed production circles at modern standards, that enables effective production of various chemical compounds. This existing production circle is attractive for new investors, because basic products are easily available.

Additionally traditional location factors remain unchanged:

• The acceptance for chemical industry in the population is still high, which can be referred to the long tradition of chemical industry.
• High professional qualification of local technicians.

In consequence, attractive conditions for industrial settlement were created at the megasite. The future success of the industrial location in Bitterfeld will be dependent on the development of the economic situation in Germany and the public subsidies provided for industrial settlement.

5. Financial resources
At the Bitterfeld megasite, which is a representative example for an eastern German industrial site, the economic, structural and social situation after 1990 became very difficult due to the economic break-down of the industries and a complicated contamination situation with a mixture of hazardous pollutants in all environmental media.

The government of Saxony-Anhalt took responsibility for the extensive economic and structural change at the site. The whole area of the former companies "Fotochemisches Kombinat Wolfen" and "Chemiekombinat Bitterfeld" was generally exempted of remediation costs since 1993. The exemption decisions were done under consideration from the basic sum participation of investors under the following conditions:

• unlimited in time
• unlimited in financial frame
• with a buyers participation mostly of 10% of equity capital

The basic sum participation was a general condition, but in practice often exceptions without any basic sum were made to encourage investors.

As consequence, in the following years the best plots of land were sold. At the end of of 1990, the remaining plots of land seemed to be "non-sellers". They seemed to be too problematic for investors. Therefore, the government decided to fully exempt these areas without any time limit, to push the whole region Bitterfeld--Wolfen.

This was done by the founding of the communal societies "EWG" (society for economic promotion of Bitterfeld-Wolfen), the privatization of "Chemiepark Bitterfeld-Wolfen" in 1998, completing by ISG (society for infrastructure development in Bitterfeld --Wolfen) and the general full exemption decision of September 15th 2000 for these "non-sellers".

As a result, more and more investors came to invest in an area, where industrial synergetic effects are possible and where cooperation partners exist.

As further step of the financing of contaminated sites, the State of Saxony-Anhalt concluded a treaty with the German federal government to dispose of the supplied financing sum in order to facilitate decisions. Since 01.01.2002, Saxony-Anhalt, represented by the LAF (State Authority for Exemption from Residual Pollution Responsibility), has funds of 1 billion € from the German government for remediation of contaminated sites.

To get an exemption from remediation costs, certain preconditions are to be fulfilled:

1. The environmental damage or a risk situation with a prognosed damage existed before July, 1st 1990.
2. Application for exemption has been made until March, 30th 1992 (environmental damage or the risk to that effect must be proven).
3. Addressee of refinancing is proprietor, owner or buyer of the site.
4. Addressee uses equipments or the area for trade or commerce.

Proprietors, owners or buyers of contaminated sites apply for the exemption, i.e. for refinancing of remediation measures. In case all required preconditions are fulfilled and a remediation concept is existing, the money for the refincancing is provided by the LAF.

Inventory of information

In the case of Bitterfeld megasite, a data network was organized based on an approach shown in the following figure:
FIGUUR
Based on data delivered by the stakeholders involved, the database (a GroundWater Information System, GWIS) system was developed, which is linked to a GIS tool. The system contains data since 1996, and has been built on three sets of data:

• basic well data,
• quality data
• water level data.

Conceptual model

Potential sources and contaminants

The contamination situation at the Bitterfeld megasite is related to the industrial development of the area, which began more than 100 years ago and resulted in three main industries:

• open-cast lignite mining
• production of energy
• chemical industries.

Up to 1990, in an area covering about 10 km², more than 5,000 different products and compounds were produced.
The chemical production and the disposal of chemical waste in abandoned open-cast lignite mines lead to a large-scale soil and groundwater contamination, estimated at about 100 million m³ of contaminated water.
Major contaminants are:

• aromatic Hydrocarbons (BTEX)
• chlorinated aliphatic compounds
• chlorobenzenes.

However, almost all substances that were produced on-site, can be found in the groundwater today.

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FIGUUR