Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 04/13/2005 Report No.: AC1439 1. Project Statistics Country: Albania Project ID: P086807 Project Name: Albania Integrated Coastal Zone Management and Clean-up Project (APL-1) Task Team Leader: Rita E. Cestti Estimated Appraisal Date: April 12, 2005 Estimated Board Date: June 9, 2005 Managing Unit: ECSSD Lending Instrument: Adaptable Program Loan Sector: General water, sanitation and flood protection sector (30%);Solid waste management (30%);General public administration sector (15%);Ports, waterways and shipping (15%);Other social services (10%) Theme: Land administration and management (P);Pollution management and environmental health (P);Other environment and natural resources management (S);Municipal governance and institution building (S);Environmental policies and institutions (S) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 14.50 GEF Amount (US$m.): 0.96 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 5.62 LOCAL COMMUNITIES 0.82 EC: EUROPEAN COMMISSION 5.20 NETHERLANDS, GOV. OF THE (EXCEPT FOR MOFA/MIN.OF DEV.COOP.) 3.67 JAPAN: MINISTRY OF FINANCE - PHRD GRANTS 2.23 17.54 Environmental Category: F - Financial Intermediary Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] 2. Project Objectives The overall objective of the proposed APL-supported Integrated Coastal Zone Management and Clean-up Program (ICZMCPr) is to protect the Albanian coastal resources and cultural assets and promote their sustainable development and management. The Program objective will be achieved through: (i) establishing an integrated coastal zone management (ICZM) institutional and policy framework and strengthening the broader regulatory capacity at the central, regional and local levels for protection of coastal and marine natural resources; (ii) increasing access to basic services associated with improvement of the quality of life and attractiveness of the coastal areas; Page 2 and (iii) implementing sub-projects aiming at promoting sustainable tourism sector development. The APL-supported program will be implemented in two phases over 7 years. Since Albania is making efforts in developing environmental laws and regulations and in harmonizing them with European Union (EU) directives, the ICZMCPr will be aligned with strategic directions of the EU with respect to Integrated Coastal Zone Management and other EU environmental directives. Similarly, ICZM institutional framework will in full harmony with the ongoing decentralization reform implemented by the Government. Phase 1. The APL's first phase consists of the proposed Integrated Coastal Zone Management and Clean-up Project (ICZMCP-APL1) and aims at setting-up and initiating an integrated coastal zone management approach to reduce coastal degradation. The main focus will be to enhance the legal framework, regulatory policy and governance of the coastal zone, promote integrated coastal zone planning and encourage community support for sustainable coastal zone management. Phase 1 will contribute in improving environmental conditions, enhancing the quality of life, preserving and improving the cultural and architectural heritage of targeted southern coastal communities, and reducing risks to human health in surrounding communities of the Porto-Romano industrial hot- spot. Phase 2. The APL's second phase (ICZMCP-APL2) will further develop the institutional, legal and regulatory capacity for ICZM, particularly at regional and local levels and support regulated and sustainable coastal tourism development to serve as an engine for economic growth. Building on the ICZM framework set in place under the ICZMCP-APL1 and on lessons learnt, the ICZMCP-APL2 is expected to significantly expand the Program's support for coastal environmental infrastructure and rehabilitation, protected areas management, conservation and restoration of critical coastal and marine ecosystems, remediation of contaminated sites, and scaling-up community-driven tourism development; and to support public-private partnerships. Specific areas of support under the ICZMCP-APL2 will be worked out during phase one. The second phase is expected to be fully blended with the GEF-funded project under the forthcoming Mediterranean/Adriatic Seas Partnership Investment Fund. Triggers for Phase 2. The performance triggers to proceed to Phase 2 reflect the commitment of the Government to initiate and adopt the policy and institutional reforms supported by Phase 1, which is paramount for the overall success of the Program. The triggers for moving ahead with Phase 2 are: - The ICZM institutional, legal and regulatory framework is established, implemented and enforced at both national and sub-national levels. - The formulation of regional and local land use development plans in the coastal region have followed agreed land-use planning criteria and methodologies, have integrated strategic environmental assessment into the planning process, and have adopted a participatory planning approach. Page 3 - The Southern Coast Development Plan (SCDP) and the accompanying Strategic Environmental Assessment and resettlement framework has been completed and adopted to guide investments in the southern coast of Albania. - Institutional capacity for enforcement and monitoring of land-use plans, building regulations, and environmental impact assessment legislation has improved on the southern coast and results of monitoring and inspections to assess compliance are made available to the public. - Porto Romano land use plan is formulated and adopted by the Municipal Council of Durres. - Ministry of Territorial Adjustment and Tourism shows marked increased in environmental issues and concerns. - APL Phase 1 clean-up and environmental/sanitation infrastructure investment activities are completed or demonstrate satisfactory progress (at least 70% commitment and 50% disbursement of Component B- Coastal Environmental Infrastructure and Rehabilitation). The development objective of the proposed Integrated Coastal Zone Management and Clean-up Project (ICZMCP-APL1) is to set-up and initiate an integrated coastal zone management approach to reduce coastal degradation through: (i) enhancing regulatory policy and governance of the coastal zone, land use and regional planning, and institutional capacity; (ii) initiating targeted municipal and community investments in the southern coast to improve environmental conditions, enhance cultural resources and encourage community support for sustainable coastal zone management; and (iii) reducing soil and groundwater contamination in the former chemical plant at Porto Romano. Key indicators for achievement of project objectives are the following: - The Southern Coast Development Plan (SCDP) has been formulated and adopted by the National Council of Territorial Adjustment. - Development of communal infrastructure in the southern coastal area is in compliance with the SCDP. - Local land use planning and issuing of construction permits in the southern coast is in compliance with the parameters and measures set forth in the SCDP. - New buildings in the southern coastal area do not disturb the existing spatial value and characteristics. - Local, regional and national physical planning efforts and development initiatives are aligned with the principles and guidelines of the SCDP. - Local and stakeholder participation is incorporated into coastal zone management decisions. - At least 5,000 tons of household waste and 5,000 tons of construction and demolition waste actually collected and disposed off in proper facilities. - At least 50% of samples from monitoring bathing waters and shellfish areas in the southern coast will be tested against Albania's standards and EU directives. - Sustainable tourism and visitor expenditures in the southern part of Albania benefiting wider communities. Page 4 - Reduction of soil contamination in areas adjacent to population centers in Porto Romano. - Protected areas management plan for Butrint National Park developed with wide stakeholder participation and rules are enforced through appropriate by-laws. - Participatory zoning and land use plans in place for at least 3 coastal municipalities and/or communes. - Participatory local development plans formulated and adopted by at least 5 communes/municipalities located in the southern coast. - Execution of environmental impact assessment (EIA) in accordance with the EIA procedures and in compliance with Albanian law before obtaining environmental permits and starting construction and development activities in the southern coastal area. 3. Project Description The APL Phase 1 project will consist of the following components and activities: Component A: Integrated Coastal Zone Management Policy and Institutional Capacity Building (US$3.72 million: US$1.80 million IDA; US$1.25 million PHRD; US$0.36 million GEF; US$0.26 million GoA). The objective of this component is to enhance the capacity of the Albanian authorities to manage the coastal resources of the Adriatic and Ionian Seas through the development of an adequate operational policy, legal and regulatory framework as well as financial/economic instruments for ICZM; strengthening capacity to increase efficiency and effectiveness of regulatory, planning and management functions for ICZM at the central, regional and local levels; strengthening coastal water quality monitoring network; strengthening protected areas management in Butrint National Park; enhancing the knowledge base; and raising awareness of the coastal issues in Albania. Component A comprises two sub-components: strategic policy support and coastal management strengthening. Specifically, the component will support: - Strengthening capacity at the central, regional and local levels to enforce regulatory responsibilities for land use planning and regulations including compliance with construction permits. - Development and acquisition of adequate management tools such as integrated GIS- based land use applications. - Design and enactment of adequate financial and economic incentives to encourage behavioral changes in human activities in the coastal areas. - Development of the policy and legal framework for ICZM. - Establishment and capacity building of a functional ICZM institutional framework. - Strengthening of the environmental monitoring capacity along the coastal zone. - Development and codification of the SCDP. - Formulation of a selected number of local land-use plans for coastal municipalities/communes. - Updating of the protected area management plan for the Butrint National Park. Component B: Coastal Environmental Infrastructure and Rehabilitation (US$22.53 million: US$10.98 million IDA; US$4.49 million GoA; US$0.45 million GEF; US$0.86 million beneficiaries; US$0.54 PHRD; and US$5.20 million EU). The objective of this Page 5 component is to assist southern coastal municipalities and local communities to help preserve, protect and enhance Albania?s coastal and cultural resources leading to improvements on the environmental conditions of the coastal area and encouraging community support for sustainable coastal zone management. Specific physical investments will be processed on a rolling basis within the framework of the SCDP and local development plans. The range of physical investments eligible will be established in advance, and have been grouped in three-sub-components: southern coastal solid waste management, Saranda gateway and coastal village conservation and development program. Specifically, the component will support: - Improvements in solid waste management in the south coastal zone, including the design and construction of two municipal landfills in Saranda and Himare. - Transformation of the Port of Saranda into a dedicated ferryboat and passenger terminal to facilitate access of passengers and vehicles to south Albania. - Establishment of a Coastal Village Conservation and Development Program to offer financial and other form of support to local governments and communes located in the Ionic coast committed to comply with program requirements (through a "Partnership Agreement") for the implementation of sub-projects aiming at improving public utility infrastructure for environmental and cultural heritage protection and enhancement, supporting sustainable tourism development, revitalizing traditional architectural heritage; as well as to communes surrounding the Butrint National Park for promoting environmental protection and sustainable economic activities. Component C: Porto Romano Hot Spot Clean-Up (US$5.06 million; US$0.20 million IDA; US$3.66 Government of The Netherlands; US$0.87 million GoA; US$0.32 million PHRD). The objective of this component is to contain soil and groundwater contamination in the former chemical plant at Porto Romano, on the outskirts of Durres, considered as one of the most seriously contaminated locations in the Balkans. Component C comprises four sub-components: strengthening of implementation capacity, hydrogeological and environmental monitoring; carrying out critical remediation and rehabilitation works; and implementing a resettlement plan. The component will also build capacity in hazardous waste management within the Ministry of Environment, which could be further applied to deal with other critical hotspots throughout the country. Specifically, the component will support: - Technical assistance and support on supervision. - Capacity building in hazardous waste management. - Establishment of long-term environmental monitoring system. - Prevention and remediation works. - Establishment of a model for replication for dealing with the clean-up of other hazardous hot-spots along the coast. Component D: Project Management and Monitoring (US$1.63 million; US$1.34 million IDA; US$0.15 million GEF; US$0.13 million PHRD). This component will provide support for project management, coordination, monitoring and evaluation. It will finance technical assistance, office equipment and furniture, training, and incremental operational Page 6 costs. Component D includes three sub-components: project coordination support; project implementation support; and monitoring, evaluation and communication support. 4. Project Location and salient physical characteristics relevant to the safeguard analysis Project location is the Southern Coast of Albania 5. Environmental and Social Specialists on the Team Ms Radhika Srinivasan (ECSSD) Mr Frank Van Woerden (ECSSD) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Cultural Property (OPN 11.03) X Indigenous Peoples (OD 4.20) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The project will trigger OP/BPs 4.01 (Environmental Assessment), and the other policy safeguards that are applicable are: OP 4. 12 (Involuntary Resettlement) and OPN 11.03 (Cultural Property). The preliminary feasibility study has confirmed that the proposed rehabilitation of the Saranda Port will not affect the straight of Corfu. The adverse effects of the proposed harbor works in the Saranda Port, which are mainly associated with the operation of the new facilities, are considered limited and of small scale since the proposed works concern the expansion of an already operating harbor. Therefore the international waterways safeguard policy is not triggered. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The potential social and environmental implications of the project are defined though the Environmental and Social Safeguards Framework (ESSF) and for the Southern Coast Development Plan they will be discussed in the SEA that is being executed as part of the preparation of the Southern Coast Development Plan. Page 7 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. No relevant treatment of alternatives imposed at this stage. They will be triggered during the implementation of this FI category. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The objective of the project is to protect the country's coastal and marine resources and promote environmental and social sustainable development of the coastal zone. As part of project preparation, the Government has drafted the ESSF to address environment, potential land acquisition as well as cultural property issues associated with the infrastructure investments that meet with the requirements of Albanian laws and Bank's operation policies on EA, involuntary resettlement and cultural property. The ESSF reviews the country's system and sets procedures to be followed during implementation. As a consequence, subprojects that trigger the Bank's safeguard will be cleared by the Bank prior to implementation. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Key stakeholders of the project are the Ministry of Territorial Adjustment and Tourism, the Ministry of Environment, the Ministry of Transport and Telecommunication, the Saranda Port Authority, the Municipality of Durres, the Butrint National Park Administration, the regional Chark in Vlora and the respective municipalities and communes along the Southern Albanian Coast Preliminary consultations are planned for April 6 and 7 with all key regional and local stakeholders in Vlora, Himara and Saranda municipalities about the ESSF. As detailed in the ESSF, Bank's procedures for consultation and disclosure will be followed. The implementation unit (PCU, including the the Coastal Village Conservation and Development Implementation Team) will monitor project execution of subprojects to ensure that all requirements and specifications are met and environmental considerations are incorporated according to the EMP. The aims of the EMP and its execution are to: (i) include conditions and mitigating measures of project approval and ensure that these conditions are working effectively; (ii) verify that environmental impacts are as predicted or permitted; (iii) take actions to manage unforeseen changes; (iv) optimize environmental benefits; and (v) improve EIA practice in the future. The key tasks of monitoring EMP implementation are: (i) surveillance and supervision; (ii) impact and compliance monitoring; (iii) environmental auditing; (iv) evaluation of EIA effectiveness and performance; and (v) post-project analysis. Page 8 The Project Authorizing Official (PAO) respectively the assigned Deputy Minsiter of the MoTAT will supervise the work of the PCU and report to the Government through a Project Steering Committee on the overall project implementation. Based on the Albanian Law the Regional Environmental Inspectorate (REI), functioning within the Ministry of Environment as a specialized body of environmental control, is responsible for performing regular evaluation and monitoring of subprojects. Overall, the monitoring should focus on measuring compliance with pollution standards and requirement of related permits. However, the municipalities, communes and local associations are responsible for monitoring a subproject's performance during operation; their capacity should be built at the local level and municipal staff through appropriate training to undertake these activities. Since the proposed Southern Coast Development Plan is expected to develop land use zoning requirements, recommendations for demolitions of illegal structures along the coastal line to regulate land use may cause controversy. However, no large-scale relocation of people or communities is envisaged and Albanian laws provide for the possibility of legalization and regularization of property ownership. Further, as reflected in the Development Program Letter and the ESSF, the government is committed to ensuring that the SDCP will have adequate provisions to mitigate impoverishment risks to the poor and vulnerable as a result of these demolitions. The Bank position on involuntary resettlement is that affected people, regardless of their legal rights to reside or conduct economic activities in the project area, (accounted for in a census on or prior to the cut-off date), are eligible for resettlement assistance. If the Policy on Involuntary Resettlement were indeed to be triggered for the SCDP component, exceptions to those deemed eligible for resettlement assistance will be made on the basis of an assessment of their socio-economic profile. This profile will be ascertained during a comprehensive socio-economic survey of people living in and dependent on the affected structures for their livelihoods. The project will also include institutional strengthening and capacity building of all relevant government institutions, including the Construction Police, and the judiciary to develop criteria and procedures for the classification of illegal buildings and ensure transparency during demolition activities. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Date of receipt by the Bank 04/07/2005 Date of "in-country" disclosure 04/07/2005 Date of submission to InfoShop 04/11/2005 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Date of receipt by the Bank 04/07/2005 Date of "in-country" disclosure 04/07/2005 Date of submission to InfoShop 04/11/2005 Page 9 * If the project triggers the Pest Management, Cultural Property and/or the Safety of Dams policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: Preliminary consultantions will take place from April 6 through April 7. Formal consultantions in key locations in the southern coast are scheduled for the week of April 11. C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OPN 11.03 - Cultural Property Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? Yes OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan, abbreviated plan, or process framework (as appropriate) been prepared? Yes If yes, then did the Regional Social Development Unit review and approve the plan / policy framework / policy process? Yes BP 17.50 - Public Disclosure Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes Page 10 D. Approvals Signed and submitted by: Name Date Task Team Leader: Ms Rita E. Cestti 04/01/2005 Environmental Specialist: Mr Frank Van Woerden 04/01/2005 Social Development Specialist Ms Radhika Srinivasan 04/06/2005 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Ronald N. Hoffer 04/08/2005 Comments: Sector Manager: Ms Marjory-Anne Bromhead 04/08/2005 Comments: