ISDS THE WORLD BANK GROUP AWorld Frec of Poverty 3 InfoShop Integrated Safeguards Data Sheet (Initial) Date ISDS Prepared/Updated: 07/15/2002 24546 Section I- Basic Information July 15, 2002 A. Basic Project Data Country: ROMANIA Project ID: P075959 Project: Afforestation of Degraded Agricultural Land Task Team Leader: Benoit Bosquet Authorized to Appraise Date: August 15, 2002 IBRD Amount ($m): Bank Approval: October 20, 2002 IDA Amount ($m): Managing Unit: ENVCF Sector: Forestry (35%); Sub-national government Lending Instrument: Specific Investment Loan (SIL) administration (65%) Status: Lending Theme: Climate change (P); Land management (S) I.A.2. Project Objectives: The Project has one main objective, namely (1) the reduction of greenhouse gas concentrations through carbon sequestration in planted trees and in soils. In the process of working towards this objective, the Project will also achieve two subsidiary objectives: (2) stabilization of degraded sandy agricultural lands through the planting of Robinia sp. (Poplar) and a number of minor species; and (3) ecological reconstruction of degraded lands in the lower Danube floodplain through planting of native broadleaf species. The Project will also enable Romania to enter and benefit from the carbon market. (4) Beyond the carbon sales proceeds from the Prototype Carbon Fund, the Project should be able to keep earning revenues from other carbon buyers. (5) Romania will garner trading experience and relations for the future, in the fields of forestry but also energy. Being able to harness the carbon market will catalyze public and private investment flows to Romania. Furthermore, the Project contributes to (6) the transformation of the rural economy, from exploiting natural resources to acting as steward of natural resources. I.A.3. Project Description: The project will afforest 6,922 ha of State-owned degraded agricultural lowlands in 7 Counties in Southern Romania, hereby helping the local and global environments. The species planted initially will be black locust (Robiniapseudoacacia), native poplars (Populus sp.) and oak (Quercus cerris). This Project is somewhat different than a typical Bank investment, in that it consist of only one component, namely afforestation of degraded agricultural lands. Afforestation consists of several activities, all of which will be included in the Project, namely site and soil preparation, seedling plantation, and maintenance. 2 ISDS The first year of the Project will be supported by a public informationi campaign targeting the local populations, to ensure their understanding and support for the Project. Monitoring (referred to as verification and certification) will occur throughout the 15 years of the Project. The costs of verification and certification are estimated at around $15,000 a year, to be paid by the PCF and reimbursed by the Project. There is no Bank or GEF financing, only Host Country financing, with a PCF contribution payable upon receipt of certificates that the carbon has been sequestered. In other words, the PCF will reimburse the Host Country for expenses it has incurred to start the Project keeping pace with carbon sequestration. As is the case with other PCF projects, however, the PCF does prefinance a portion of Project preparation, including the baseline study, monitoring plan and validation. These are the requirements of the Kyoto Protocol. All these costs are then charged back to the Project and reimbursed to the PCF in the form of lower annual payments for emission reductions. I.A.4. Project Location: (Geographic location, infonnation about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) Geographic location of the afforestation sites: Counties of Dolj, Mehedinti, Olt, Braila, Galati, Tulcea and Vaslui (see Table below). Areas to be afforested Land Administrator Area Main feature Recommended forest (ha) of the soil type/ potential production class* A. ZONE I (SOUTH-SOUTH WEST) .- A.1 DOLJ County 1. SDA (AGROINDUSTRIALA DABULENI) 633.45 medium plain sandy soil Robinia/lil 2. SDA (SCCPN DABULENI) 605.96 medium plain sandy soil Robinia/11l 3. SDA (SC AGROIND MACESU DE JOS) 778.49 medium plain sandy soil Robinia/l1l 4. SDA (SC AGROIND SAVINI PISCU SADOVEI) 187.35 medium plain sandy soil Robinia/ill 5. NFA (DABULENI) 100 medium plain sandy soil Robinia/lil TOTAL DOLJ 2,305.25 A.2 MEHEDINTI county 1. SDA (SC SURILA MARE -- COMUNA GOGOSU) 12.74 low plain sandy soil Robinia/lil-l1 2. SDA (SC AGROIND BALOTESTI - COMUNA IZVORUL 18 63 low plain sandy soil Robinia/l1l-l1 BARZI I) 3. SDA (SC AGROFRUCT PRUNISOR SA - COMUNA HINOVA + 119.58 medium plain sandy soil Robinia/111 VOLOIAC) TOTAL MEHEDINTI 150.95 A.3 OLT county 1. SDA (SC CORIAS CORABIA - COMUNA ORLEA) 301 medium plain sandy soil Robinia/11l 2. SDA (SC CORIAS CORABIA - COMUNA IANCA) 550 high plain sandy soil Robinia/IV TOTAL OLT 851.00 B. ZONE II (SOUTH-EAST) B.1 BRAILA county 1 SDA (SC AGROZOOTEHNICA TICHILESTI) 19.26 medium plain sandy soil Robinia/11l 2 SDA (SC STANRIZ STANCUTA) 311.00 high plain sandy soil Robinia/IV 3. SDA (SC DROPIA INSURATEI) 203.94 high plain sandy soil Robinia/IV 3 ISDS 4. NFA (INSULA MICA A BRAILEI) 1,700 alluvial soil Populus sp./lIl-ll TOTAL BRAILA 2,234.20 B.2 GALAPI county 1. SDA (SC AGROTEC SA TECUCI) 11.10 medium plain sandy soil Robinia/11l 2. SDA (SC AGROIND SA DEALUL BUJORULUI -- 205.93 zonal eroded soil Robinia/IV COMUNA BANEASA) Quercus cerns/1V 3 SDA (SC AGROIND SA DEALUL BUJORULUI- COMUNA 125.79 medium plain sandy soil Robinia/11 VARLEZI) 4. SDA (SC SEROMGAL SA GALATI) 30.60 medium plain sandy soil Robinia/11l TOTAL GALATI 373.42 B.3 TULCEA county 1. SDA (SCAI PIATRA OSTROV - DAENI) 202.29 zonal eroded soil Robinia/IV Quercus cerris /IV 2. SDA (SCA TULCEA SA) 303 66 medium plain sandy soil Robinia/lil 3. SDA (SCA DEALUL TULCEA) 232 42 medium plain sandy soil Robinia/11 TOTALTULCEA 738.37 B4. VASLUI county 1. SDA (SC AGROVINEX SA VETRISOAIA) 57.55 eroded sandy soil Robinia/IV 2 SDA (SC AGRISEM FALCIU) 57.71 eroded sandy soil Robinia/IV 3. SDA (SC PRODAGRO SA ZORLENI - BACANI+ 154.00 eroded sandy soil Robinia/IV BANCA+ZORLENI+POGANA+VOINESTI+PUIESTI) OTAL VASLUI 269.261 TOTAL PROJECT 6,922.45 1 Note: according to the Romanian system there are 5prodziction c/assesfor each spe4ies from class I (the hi,ghest prodiaLtion) to V (the lowest). Environmental characteristics: All the sites are state-owned degraded agricultural land, where agricultural activities have been stopped or some low-quality grazing takes place in a free access situation. In the southwest, afforestation will typically be done on poor sandy soils (low, medium or high plain). In the southeast, there is greater diversity (sandy soils, alluvials soils, seoded soils). The southwest sites are not located near protected areas. The soils are consistently of very poor quality, and only robinia is capable of surviving in the current conditions. The southeast includes sites of much greater ecological importance, in particular one Ramsar site (Insula Mica a Brailei). However, the species planted on that island are the same as the natural vegetation (mostly poplar and some willow on the banks). Afforestation will contribute to: (a) soil stabilization in the southwest; and (b) soil stabilization and ecological reconstruction in the southeast. Ecological reconstruction in the southeast (forest and wetland reconstruction) is expected to enhance flyways for migratory bird species. Social characteristics: The communities surrounding afforestation sistes typically a couple of thousand people in each village. Seven such villages have been surveyed and consulted so far and more will be in the course of the baseline study in April 2002. The analysis conducted to date suggests that afforestation is sustainable from a social point of view. Communities are generally not interested in the land earmarked for afforestation. According to the social scientists reviewing the Project, gains to local communities are obvious in many cases. These benefits are not limited to the availability of firewood or other natural resources offered by the forest. In the Southeastern area (Olt and Doij Counties) the main role of the forest is to stop sand from spreading and to stabilize the climate. In Galati County, afforestation will help fight landslides and combat droughts. In both areas the direct and indirect benefits are higher than the provision of firewood and other natural resources. The local communities' gains consist primarily in the improvement of surrounding agricultural land and of living conditions. 4 ISDS B. Check Environmental Classification: B (Partial Assessment) Comments: The terms of the environmental management plan must be determined. C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) * Yes _. No . TBD Forestry (OP/GP 4.36) Yes ..No *TBD Natural Habitats (OP/BP 4.04) Yes *No TBD Safety of Dams (OP/BP 4.37) Yes * No TBD Pest Management (OP 4.09) Yes * No TBD Involuntary Resettlement (OP/BP 4.12) Yes *No TBD Indigenous Peoples (OD 4.20) Yes *No TBD Cultural Property (OP 4.11) Yes *No , TBD Projects in Disputed Territories (OP/BP/GP 7.60)* Yes * No TBD Projects in International Waterways (OP/BP/GP 7.50) Yes * No TBD *By suipporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If infornmation is not available, describe steps to be taken to obtain necessary data. II.D. la. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. Environmental Assessment: The Project has no major or potential adverse environmental impacts. The afforestation aims to (a) stabilize degraded and sandy agricultural lands and (b) ecologically reconstruct native Poplar vegetation. In the Insula Mica a Brailei, where native Poplars will be planted, the scale of afforestation is relatively large and is of some concern. However, the planting aims at reproducing the dominant native vegetation which is extensive in the area. This will reduce the potential impact of the scale of afforestation. Natural Habitats: The island of Insula Mica a Brailei is a Ramsar site and was part of a larger project to protect bird populations in the lower Danube River corridor (a LIFE-NATURE project funded by the European Union, concluded in February 2002). It will be important to ensure diversity of species to meet the main objectives of planting - ecological reconstruction. The ecological reconstruction of this site is in line with Bank's policy. None of the Robinia areas lie within or adjoin designated protected habitats. However, it will be important to ensure there is proper screening prior to afforestation to ensure that no natural habitats inadvertently are afforested. Forestry: The Projects complies with OP 4.36 insofar as: (1) it does not finance commercial logging operation or the purchase of logging equipment for use in primary tropical moist forests; (2) it involves local people in forestry conservation management or in alternative income generating activities; (3) it does touch forest areas of high ecological value. Furthermore, the Project is in line with the Bank's forestry policy in that it: (a) promotes afforestation (of degraded and State owned lands); and (b) will enhance the environmental contribution of forested areas through a combination of (i) use of native species and ecological reconstruction in the Poplar areas and (ii) assist in soil stabilization and prevention of extension of degradation to adjoining agricultural lands. Although not directly aimed at reducing poverty, the Project will provide local employment mainly during the establishment stage. The Project is also in line with the new forest policy currently being drafted, to the extent that it entails 5 ISDS promoting forests for the benefits of global commons (climate change mitigation). Pest management: The native Poplars planted under the Project are susceptible to Sapaerdapopulnea. It is normal practice to: (a) treat Poplar seedlings in the nursery with Bumper (active ingredient is propiconaazole and is a fungicide used for control of powdery mildew. Widely used under a variety of trade names. USDA classification "general use") to prevent attack; and (b) only to spray crops with DECIS EC 2.5 (Decis is a synthetic pyrethroid insecticide with active ingredient deltamethrin. Toxic to aquatic life and should not be sprayed within 25 metres of watercourses, rivers, streams etc. Widely used in agriculture) in the event of a major infestation. The preventative treatment represents good nursery practice. A major infestation in the project area cannot be ruled out over the life of the Project but is regarded as being unlikely. Given that the Project will not directly fund the purchase of pesticides and that spraying of crops will only take place in the event of a major infestation, there is no real risk of contravening the Bank's Pest Management policy. Indigenous Peoples: The Project will not affect any indigenous groups. According to OD 4.20's definition, only Rom people from the Ocolna village (near Dabuleni) are indigenous people but the Project will not affect their dwellings, their assets or access to assets or their income sources in any way. Moreover, the project can offer them with some work opportunities through afforestation. Involuntary resettlement: The proposed Project does not produce any involuntary resettlement since it will not produce relocation or loss of shelter, no one will lose their assets or access to assets and nobody will lose their income sources as a result of the Project. Afforestation will not affect the inhabited areas. Fieldwork research data point out that nobody is interested in the land proposed for afforestation given that it is degraded. Minimal, if any, loss of jobs is expected the ensue from the Project. II.D.lb. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. II.D.lc Describe any potential long term impacts due to anticipated future activities in the project area. II.D.2. In light of I, describe the proposed treatment of alternatives (if required) Should further issues arise in the course of the baseline study, the Project team will take the appropriate measures to mitigate negative impact or alter site selection. Il.D.3. Describe arrangement for the borrower to address safeguard issues Environmental Assessment: The baseline study will provide an extra opportunity to check the environmental soundness of the approval process for afforestation activities. The monitoring plan will also set up a number of indicators of soil quality, so as to be able to assess the avoided losses soil expected from the Project. Natural Habitats: A further assessment of the ecological importance of sites to be afforestated will be carried out by Wetlands International during the baseline study. The baseline study will assess what would happen without the Project and how the Project will impact the sites -- in good or bad. In addition, the monitoring plan will provide for quantifiable indicators of project impact, such as the number of bird species observed using the newly forested areas, etc. Involuntary resettlement: The social assessment will continue during the baseline study. In addition to proceeding with the community survey and setting up a monitoring system, several issues will be addressed, which were highlighted during the first phase of the social assessment, including th eneeds 6 ISDS for: (a) checking the exact land ownership status of the various plots to be afforested so as to prevent any conflicts in the future; (b) preventing physically cutting people from their livelihood bases, e.g. access to agricultural land or forest resources; (c) organizing an information campaign on the Project at the level of local communities to secure the support of local communities; (d) minimizing the risk of uncontrolled grazing by domestic animals on newly afforested state land; (e) the need for technical assistance to some communities on how to improve agricultural land fertility. IL.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders are: (1) the local populations from the Counties of Doij, Mehedinti, Olt, Braila, Galati, Tulcea and Vaslui. Local villagers; (2) the migrant workers from within Romania who will be involved in the plantation establishment and tending operations; (3) the NFA, as sponsor and executing agency; (4) the Ministry of Agriculture, Food and Forests, as co-sponsor and regulator; (5) the Ministry of Water and Environmental Protection, as the authority in charge of climate change policy; and (6) local and international NGOs active in the social and environmental fields. Consultations: Two social scientists of the University of Bucharest were recruited to conduct an assessment of the potential impact on local communities of this Project. They visited and interviewed villagers in 7 villages. As noted above, communities are generally not interested in the land earmarked for afforestation and are in many cases set to benefit from the Project. The full report is available on request. One of the two sientists will participate in the baseline study and monitoring plan, during which she will, inter alia, pursue her assessment of more villages, formulate recommenidations on how to minimize negative impact in some areas, maximize the social support in others, and develop a set of monitoring indicators to measure the social impact of the Project durinig implementation. Diclosure: ??? E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [X] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable S3. - No safeguard issues SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan. Expected Actual Date of receipt by the Bank 8/1/2002 Date of "in-country" disclosure 8/8/2002 Date of submission to InfoShop 8/22/2002 Date of distributing the Exec. Summary of the EA to the ED (For category A projects) Resettlement Action Plan/Framewvork. Ex ected Actual Date of receipt by the Bank 7 ISDS Date of "in-country" disclosure Date of submission to InfoShop Indigenous Peoples Development Plan/Framework: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan. Expecied Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Dam Safety Management Plan. Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Benoit Bosquet 04/08/2002 Project Safeguards Specialists 1: Bernard Baratz/Person/World Bank 04/11/2002 Project Safeguards Specialists 2: Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Jane E. Holt 04/11/02 Sector Manager/Director: Marjory-Anne Bromhead 04/15/2002 For a list of World Bank news releases on projects and reports, click here ,sEAiqc,4. FEEDBACK S: I E MAP SHOWCASE