A Pp-i I l,q,jj ct~~~~~~~~~~~~~~II malters AT T HE WO R L D The World Bank Group BANK and the Environment Fiscal 1996 " il 'Ir-0j -~~~~ matters AT T HE WO R L D The World Bank Group BANK and the Environment Fiscal 1996 ,SM Managers of the World Bank Group's C 1997 The International Bank for Reconstruction Environment Pmgrram and Development/The World Bank World Bank Environment Department: 1818 H Street, N.W. Director: Andrew Steer 8 HSre,NW Sr. ScienceAdvisorn Ad2 Washington, D.C. 20433, U.S.A. Robert Watson Sr. Environmental Advisor: 'LIV Ken Newcombe All rights reserved Sr. Social Advisor: Michael Cernea Manufactured in the United States of America Leand, Water & Natural Habitats, First printing April 1997 ENVLW Chief: Colin Rees Global Environment (including This report has been prepared as a study by the World Bank's staff, and the judgments made Global Environment (inCludingheind ncsarl GEF and MP operations k herein do not necessarily reflect the views of the Board of Executive Directors or of the coordination) ENVGC i countries they represent. The boundaries, colors, denominations, and other mformation shown Chief: Lars Videaus thyTeclos n thrifrato hw on any map in this volume do not imply on the part of the World Bank any judgment on the oChief Gloria Davis legal status of any territory or the endorsement or acceptance of such boundaries. Pollution & Environmental Economics, ENVPE The World Bank Group includes the International Bank for Reconstruction and Development -Technology and (IBRD) and the International Development Association (IDA), commonly known as the World Pollution Policy I the Chief: Richard / _. Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Ackermann / Agency (MIGA). The document reflects the environmental agendas for the entire Bank Group. -Indicators and a G Environmental Valuation The text is printed on recycled paper that exceeds the requirements of the 1988 guidelines of Chief: John Dixonprnepaerquem tso the U.S. Environmental Protection Agency, section 6002 of the Resource Conservation Eavid Freestone Recovery Act. The paper stock contains at least 50 percent recovered waste paper material as Environmental Research, PRDEI: calculated by fiber content, of which at least 10 percent of the total fiber is postconsumer Zmarak Shalizi, David Wheeler waste, and 20 to 50 percent of the fiber has been deinked. Chiefs of Regional Units: Asia: Maritta Koch-Weser Africa: Cynthia Cook Europe & Central Asia/ Middle East & N. Africa: Anand Seth Latin America & the Canb.:William Partridge International Finance Corporation Printed on Recycled Paper Technical & Environment Department: Director: Andreas Raczynski Environment Division Manager: Martyn Riddle ISBN 0-8213-3579-0 ISSN 1014-8132 Cover: Fishermen cast nets at sunrise on the Ubangui River on the Zaire-Central Africa Republic border. Photograph by MauriceAsseo co ntents Foreword 1 Reflections 3 Maurice Strong Overview 4 Regional Reviews Africa 8 Support for sustainable resource management in the region has become an imperative, as it faces the world's fastest population growth and increasing reliance on its natural resource base. East Asia & the Pacific and South Asia 12 Regional activities reflect a commitment to tackle widespread urban pollution and natural resource degradation, the results of economic growth without equitable environmental stewardship. Europe & Central Asia 16 As vehicle pollution increases and previously well maintained infrastructure deteriorates, the region is working to maintain the environmental improvements it has achieved since the former Soviet Union's break-up. Latin America & the Caribbean 20 In the face of rapid urbanization, the region is working to manage its rich biodiversity and keep pace with environmental infrastructure needs. Middle East & North Africa 24 The Bank is helping the region implement its environmental strategy, strengthening environmental institutions and public participation, intensifying management of scarce resources, and arresting pollution. International Finance Corporation 28 IFC's commitment to the environment is evident from its efforts to ensure due diligence, promote social and community development, and recognize environment as a business opportunity. Thematic Reviews Supporting the Biodiversity Convention 32 Mainstreaming biodiversity involves complementary objectives: allowing access to valuable resources while maintaining biodiversity. Stratospheric Ozone Depletion and Climate Change 34 Progress towards phasing out ozone depleting substances is encouraging-, tackling the complex causes of climate change requires innovative approaches. contents Measuring and Valuing the Environment 36 Great progress has been made to develop environmental indicators which measure environmental changes, the effects of policy reforms and the value of environmental resources. Legal Dimensions of Environmental Management 38 Recognizing the importance of a sound legal basis for environmental management, the Bank is working to improve national and international legal and regulatory frameworks,. Strengthening Partnerships for the Environment 40 The Bank is committed to using collaborative approaches to environmental management, working with such partners as NGOs, bilaterals, and the private sector. Addressing the Pollution Challenge 42 As the paradigm of pollution control shifts toward environmental management, the Bank's support for urban environment and pollution initiatives has also evolved. The Environment as a Business Opportunity 44 Helping businesses overcome market barriers to environmental products and services results in increased global environmental benefits. Toward Social Sustainability 46 The Bank has increased its emphasis on social assessment and participation to support the emerging concept of social sustainability. Strategically Managing the World's Water 48 Support continues for the four complementary shifts in water resources management underpinning the Bank's Water Resources Management Policy. Publications 50 Appendix 53 World Bank Group Environmental Projects, July 1986-June 1996 Foreword Does the environment really matter for development? Absolutely. We are all equal stakeholders in the drive toward environmentally and socially sustainable economic development. This work is a daunting task. Since the 1992 Rio Earth Summit, the World Bank has carried out its commitment to the principles acknowledged in Rio through an environmental agenda which has grown exponentially. What started as a small unit of professionals looking at the envi- ronmental implications of our work has grown to a staff of well over 300 specialists whose job it is to integrate environmental and social sustainability into all aspects of the Bank's ongoing operations. Because of our large base of development tools, policies and procedures for economic development, we are able to carry out this new commitment with an ever-growing bank of environmental and social tools and good practices. Each year since the Earth Summit, we have documented the Bank's agenda for environmental and social sustainability in our Annual Report on the Environment. The fiscal 1995 report, Mainstreaming the Environment (October 1995), pointed out the Bank's movement into a 'third generation' of environmen- tal reforms, which called for a more deliberate and early integration of environmental work into all Bank work, in our growing portfolio of environmental projects, in our regular lending portfolio, and in all of our non-lending activities. It also called for an emphasis on on-the-ground implementation and a stronger focus on people and social structures to find solutions and make development more sustainable. This year, in our continuing effort to 'mainstream' our findings and best practices by making our work more accessible and applicable to Bank task managers, our client countries, our partners and the environ- mental community at large, we began a new publication called Environment Matters. This magazine, to be issued three times a year, folds together a number of separate publications, and is designed to be more participatory in its creation and more accessible in the information which it shares. The fall issue of the triannual magazine has now replaced the old Annual Report and serves as a more informal, more partici- patory annual review. It is issued in tandem with a descriptive matrix of environmental projects in the Bank Group's portfolio. This publication is the compendium of the fall 1996 issue of Environment Matters, containing the annual review for fiscal 1996 (July 1995-June 1996) and a 10-year accounting of the project portfolio in a pro- ject matrix (Appendix). The annual review portion of the publication is divided into four sections: an overview, a series of regional reviews, a set of reviews on a spectrum of environmental and social issues, and a brief scan of relevant publications. In addition, we have included the column called Reflections writ- ten by Maurice Strong at our invitation, which sets the context for the Bank's work in the larger global agenda drawn up in Rio in 1992. The magazine is available through the Environment Department and on the World Wide Web. Andrew Steer Director Environment Department The World Bank 7~~~~~~~~~~~~~~~17 WigLD'S Hr l E ll ~~~i #lt5EwttP<0a>E}t#>, t l l2 l S igLW;qtW'%S .OE - 0 5. 6 taXSX;M * I E .i - S - O *e'.g g li.g' I S E .. 222 l _i~22 T his year, on the fifth anniversary of the Earth Summit, a special session of the United Nations General Assembly will review progress towards implementing the agreements reached there, focussing particularly on Agenda 21. In March, the Rio +5 Assembly in Rio de Janeiro will add the perspectives of a broad cross section of civil society. After only five years it may be too early to pronounce final judgement on the ultimate results of the Earth Summit. After all, Rio called for fundamental changes in our economic life and in the behaviour of M7 individuals, corporations and nations. And fundamental change does not come quickly or easily. pl. At this point it can be said that in many respects the response to Rio has been disappointing. Offi- by Maurice Strong cial development assistance has declined. Despite progress in some areas, environmental deteriora- Secretary-General, 1992 tion continues while the unsustainable practices which give rise to it persist. Rio Earth Summit Senior Advisor to the However, there is also some good news. Developing countries have taken important steps to inte- World Bank President grate sustainable development into their own national development policies and practices. Many have adopted national strategies based on Rio's Agenda 21. China is an example, as is Costa Rica, which also took the lead in establishing a Central American Alliance for Sustainable Development. But it is at the level of civil society that some of the most promising progress has been made - much of it at the grass roots and community levels. More than 1500 cities and towns around the world have adopted their own Agenda 21. National Councils for Sustainable Development or equivalent bodies now exist in more than 100 countries to foster consultation and collaboration between civil society and governments. For me the single most important and encouraging development since Rio has been the emergence of the World Bank under President Jim Wolfensohn as a leading champion of sustainable develop- ment. Not only has the Bank become the single largest source of funding for environmental pro- grams and projects, it is integrating environmental and social dimensions into all of its operations. The World Bank is playing a key role in tackling global issues like climate change and regional issues like marine pollution and it is mounting an initiative to establish sustainable development guidelines for private investment. These and the many other activities that will be reported in Environment Matters clearly put the World Bank at the centre of the movement towards a more sustainable way of life on our planet for which the agreements reached at the Earth Summit provide the basic blueprint. Intrinsic to this are some essential premises: for development to be sustainable, environmental and social dimensions must be integrated fully into its planning and management processes; the creation of wealth must be accompanied by the reduction of poverty, resulting in a more equitable sharing of the benefits of development; human activities must respect and maintain the integrity of the nat- ural environment and the life support systems on which all life on Earth depends. I am persuaded that the 21st century will be decisive for the human species. We are pushing to the limits this planet's capacity to support human life. This confronts us with a challenge of unprece- dented proportions; we literally must manage our own future. Although science and technology provide us with new tools which vastly lever our capacity to do this, we will not find the solutions there. It will require the application of human ingenuity, political will and social discipline on a scale never yet achieved to ensure the kind of cooperative management on which our survival will depend. Despite the current low level of support for international institutions, these organizations will inevitably be pivotal in facilitating and supporting the collaboration that is indispensable for deal- ing with the issues that will determine our common future. No organization will be more essential to this process than the World Bank. And none is doing more to prepare itself for the new dimen- sions of service to its members and the world community which will be required of it as we move into the 21st century. J POST THE YEAR IN PERSPECTIVE b y Andrew Steer, Director, Environment Department Recent years have witnessed a profound change in our under- Along with other international agencies, the World Bank has standing of the links between economic development and the sought to help its client countries make development sustain- environment. The key 'propositions' of sustainable develop- able, and in the process has undergone its own 'greening.' ment-laid out in the Brundtland Commission Report in 1987 Since the Earth Summit, our capacity to deal with environ- and in Rio's Agenda 21 in 1992-were controversial at the time, mental and social concerns has risen sharply. Environmental but are now broadly accepted. Among such propositions: and social specialist staff now number over 300, and a series of operational policies on the environment have been put in place * there is a crucial and potentially positive link between eco- (seepage 39). nomic development and the environment; * the costs of inappropriate economic policies on the envi- The Bank's environmental agenda is two-fold: to support ronment are very high; countries as they seek to reform their environmental manage- * addressing environmental problems requires that poverty be ment, and to factor environmental concerns into all Bank reduced and that economic growth be guided by prices activities. which incorporate environmental values; and * environmental problems pay no respect to borders- Targeted Support for the regional and global problems require regional and global actions. Environment In attempting to reconcile economic development with envi- Broad acceptance of these propositions, however, has not ronmental protection, a growing number of developing coun- assured their effective implementation. Many environmental tries are attempting to implement a 'new environmentalism' problems continue to intensify and in many countries there are that recognizes economic development and environmental sus- few grounds for optimism. Nonetheless, in a growing number tainability as partners. The Bank's President, James Wolfen- of countries, awareness is leading to action. Around 100 sohn, recently articulated the principles of the new countries have now prepared national environmental strategies, environmentalism, which are increasingly reflected in our lend- and tangible changes are apparent in about half this number. ing for enhanced environmental management (see Box, page 5). 4 "What is sustainable development other than sound economic management, rationality, respect g . for the rights of others, and concern for future generations? To move from vision to action requires methodologies and best | | A practices for improvements in measurement, proper pricing,.... enabling environments and participatory approaches to VO $ V development". Ismail Serageldin, Vice President, P 0YarN Environmentally Sustainable Development The World Bank's active environmental portfolio now stands at The focus of our biodiversity projects continues to evolve $11.5 billion for 153 projects in 62 countries (see Box, page 6). from traditional protected area management to an emphasis Of this amount, $7.2 billon has been committed since the Rio on sustainable natural resource utilization, participation and Earth Summit in 1992 (seefigure), including $1.6 billion (for involvement of the private sector (see page 44). IFC's Biodi- 20 projects) in the past year. Our lending for the environment versity Enterprise Fund for Latin America, for example, will has leveraged an additional $14.5 billion from other sources, support investments in sustainable agriculture, forest manage- bringing total investment in the environment to $26 billion. ment and the use of non-timber forest products. In addition, the past year has seen the completion of landmark work on The environmental portfolio is on average currently perform- defining a biodiversity conservation strategy for Latin America ing slightly better than the Bank's overall loan portfolio, but and the Caribbean (see page 22), and completion of a draft bio- continued strong progress should not be taken for granted. diversity conservation strategy for Sub-Saharan Africa. Environmental programs, due to their cross-sectoral nature and frequent opposition from vested interests, pose complex implementation challenges, and carefill supervision will be PR I N C I P L ES OF TH E N E W necessary. ENVIRONMENTALISM This portfolio, which is unique in size and scope, is not only As developing countries struggle to forge paths that pro- a large responsibility, it is also a rich living laboratory from vide for both prosperity for their citizens and good stew- which we and others must learn. It is vital that lessons be ardship of the environment, they are searching for new distilled, and factored into future programs. With this in approaches. Among the imperatives guiding their actions: mind, we are currently carrying out a systematic review of project and policy implementation, focusing first on natural 1. Set priorities carefully. habitat protection, pollution management and capacity 2. Go for win-win options first. building. 3. Insist on cost-effectiveness. 4. Use market incentives where feasible. Beyond National Boundaries 5. Economize on administrative/regulatory capacity. Many environmental problems need regional or global solutions. 6. Set realistic standards and enforce them. The past year marked the second meetings of the Parties to the 7. Work with, not against, the private sector. Biodiversity and Climate Change Conventions, the Tenth 8. Recognize that local involvement is crucial. Anniversary of the Vienna Convention on Ozone Depletion, 9. Build constituencies for change. and progress towards ratifying the Desertification Convention. 10. Incorporate environment from the outset. The Bank, as an implementing agency for the Global Environ- ment Facility (GEF) and Montreal Protocol, and through its For more details, see James Wolfensohn: "The Environment regular lending, is committed to implementing these global for Sustainable Development", in Environment Strategy agreements and other regional environmental programs. America, 1995/96. 5 In the area of water resources man- agement, this year the Bank supported regional cooperation in water manage- _ - _ _ _ _ _ _ ment in Southern Africa, and national water strategies in Tanzania, Kenya and Zimbabwe. In Europe and Cen- tral Asia, progresswasmade in imple- menting five major international - ! * I X 3 : s waters programs in which the Bank plays a coordinating or supporting role: the Baltic, Black, Mediterranean and The past year also saw major mile- A simple -and rough -environmen- Aral Seas, and the Danube River stones in our GEF and MP ozone tal accounting of the Bank's total lend- Basin. programs. We supported the Russian ing since Rio is presented in Table 1. Federation and several Eastern Euro- Four types of projects are identified. The two main thrusts of our work in the pean countries in phasing out ODS First are those specifically targeted area of climate change were energy effi- and helped China to introduce a com- towards improving the environment ciency and renewable energy (seepage prehensive sectoral approach to ODS (discussed above). Second, are those 35). Examples of the former are the phase-out, using market-based instru- that are unarguably benign to the envi- Slovenia Environment Project and the ments (see page 34). ronment while promoting economic China Efficient Industrial Boilers Pro- development - these "win-win projects jects, which will address the enormous Greening the En tire include population, education, health, problem of dependency on obsolete and and targeted poverty reduction projects. inefficient boiler technology throughout Portfolio Third, are projects where real trade-offs much of Chinese industry. This year we In addition to our targeted programs for may exist between protecting the envi- also continued work on Joint Implemen- the environment, we need to ensure that ronment and promoting economic tation and embarked upon a global all Bank activities take environmental development, such as road or energy pro- warming backcasting exercise. concerns into account. jects (EA category A - see Box, page 7). Finally are all other programs - in agriculture, urban development, eco- nomic adjustment, and the like- which are benign if correctly designed; without proper care, these can damage long-term sustainability. Since Rio the Bank has moved aggres- sively to ensure that environmental con- cerns are progressively factored into all ffigINN's ~~~~~~~~~~~~~~~these categories of projects. In so doing a number of imperatives are guiding our Assessing and Mitigating Environ- mental Impacts. The Banks EA process employs a combination of proactive and preventive measures to ensure that projects are environmentally sound and sustainable. Preventive mea- sures are directed to recognizing and N ~ ~ ~ ~ ~ ~ ~~~~~~~~~, Mitigating potential harm to people and the environment. More signifi- cantly, LA can proactively contribute to the design and implementation of envi- ronmentally sustainable projects where iisiitiated early, at a strategic level, with public involvement, and where it is used to compare and evaluate alternative investments. 6 In the past year, major reviews of the quality and impact of EA procedures E INMENAL ASESENT were completed by the Bank's Opera- OF BANK.FINANCED PROJECTS tions Evaluations Department and the Environment Department. They con- All Bank projects are screened for potential environmental impacts. Those cluded that while very good progress expected to have adverse impacts that may be sensitive and irreversible are has been made, the proactive potential assigned to category A and subject to a full environmental assessment. Category of EA needs to be better realized - in B projects are those whose impacts are expected to be less significant; they are analyzing alternatives, involving local subject to some environmental analysis. Category C projects are not expected to communities and ensuring implemen- have any negative environmental impacts. Among the investment projects tation of mitigation plans. We have approved over the past year, 20 (8 percent) were classified as category A; 98 (39 already started to build on these percent) were classified as category B; and the remaining 133 (53 percent) were lessons. classified as category C. Incorporating Environment into See- local communities dramatically IUCN, WWF and private sector orga- toral Prograrns. Bank sectoral programs improves the prospects for improved nizations like the World Business increasingly acknowledge that develop- environmental management. While this Council for Sustainable Development ment will only be made sustainable if has been well known for some time in are becoming central to doing business, environmental and social concerns are rural programs, it is now becoming and are already having high payoffs (see factored into the core of policymaking. equally evident in efforts to manage page 40). Operational partnerships with This year, for example, the Bank's Board pollution and waste. UN organizations are also growing, adopted a new policy paper on "Sustain- especially with UNDP, UNEP, FAO able Transport", which places poverty This year the Bank launched its Partici- and with the Secretariats of the global and environment at the center of the pation Sourcebook (see Environment environmental conventions. Bank's transport work. Similarly, the Matters, Summer '96 Issue), a best prac- Bank's draft action plan to revitalize tice guide. We now need to make par- An important example this year has work on agriculture and rural develop- ticipatory approaches and active been the launch of the Global Water ment centers on social and environmen- involvement of civil society the norm in Partnership in August 1996. Initiated tal concerns (seepage 51). Bank-supported activities. As part of by the Bank, ITNDP and the Swedish this effort, social assessments are being International Development Agency, the More important than statements of pol- undertaken on a growing number of GWP aims to assist local, national and icy is impact on the ground. Here, real projects (60 in the past 18 months) and regional authorities to implement change is becoming Agenda 21 principles of water manage- apparent, albeit slowly. In | - ment. The structure of the GWP builds energy for example, Ni *3s ? on the successful model of the Consulta- Bank-supported projects - tive Group on International Agricultural increasingly integrate Research (CGIAR), a structured prob- demand/supply-side effi- 4400 ? ? g. - 4i? demand/supply-side effi tQt4~4~ . . .ii* -- le-solving program with independent ciency and cleaner tech- o professional leadership, flexible, non- nologvesn-often with the pr i- '. ' bureaucratic administrative structure, involvement of the pri- 't t o'7'''$o'!'°''? ? < 3 ,>' ? 2'' ' '' 0? ' ' "' 't' ! and strong involvement of NGOs, acad- include components to - a,. emics, and the private sector. build environmental Building Capacity for the Task. Incor- management capacity in over the past year NGO "liaison offi- porating environmental concerns into all Ministries and utilities. Similarly, much cers" have been recruited at many of the development activities requires a contin- more attention is being given to Bank's resident offices. uous upgrading of technical skills and improved land and water management attitudes. This is true within the World in rural projects. Building and Strengthening Partner- Bank, where we are currently overhaul- ships. The Bank's primary partners are ing internal training programs and iden- Involving Local Citizens. Ensuring the governments and citizens of the tifying skills gaps. And it is true in our that stakeholders are involved in the developing countries we serve. But we client countries, where we are sharply design and implementation of projects, are most effective when we work with expanding support for training and and that social and cultural concerns are other partners who are sometimes bet- awareness-raising programs through the addressed is vital to the success of all ter placed to do innovative environmen- Economic Development Institute (EDI) that we are trying to do. There is now tal and social work. Strategic and our project work. compelling evidence that involvement of partnerships with groups such as the 7 Africa ub-Saharan Africa depends * influencing migration toward a bet- more on its environmental ter population distribution, espe- ~~~~ ~~~~~ ~~resource base for its economic cially in sensitive areas; ~~~~ ~~~and social needs than any making urbanization sustainable by other region in the world. But improving planning and services; ~~ ~¶ii~y~ ~ '~, ~ ~ with the natural resource base seriously managing energy, water, and other declining, the entire region, rural and natural resources in an integrated uran, is being profoundly affected. fashion; and hastening Africa's development of Two-thirds of the region's people Jive modern education, information, and in rural areas and depend primarily on communication systems. agriculture and other natural resources for income; to them, the region's severe This last fiscal year, the Bank's regional environmental problems like soil ero- team focused on meeting these chal- sinand declining soil fertility, defor- lenges by integrating the environment estation, pollution of water supplies, more fily into its development work. adbiodiversity loss are everyday, real In the region'Is environmental portfolio, and critical concerns, projects focused on helping countries increase their environmental manage- With the world's fastest growing popu- ment capacity, especially through lation, averaging about 3% a year, the National Environmental Action Plans region will be home to more than a bil- (NEAPs) and Environmental Support lion people by the year 2025. With Programs (ESPs). In the regular rampant migration and urbanization, investment portfolio, the region helped an estimated 700 million of these peo- integrate environmental components g 1 > B ple will be living in urban areas, facing into sectors like agriculture, infrastruc- health consequences which occur if ture, urban management and trans- infrastructure and services fail to keep portation, and helped find pace with urban growth. environmental solutions which move beyond national boundaries. Meeting the Challenges Sustainable development in this rapidly The Environmental Project changing region has become an impera- Portfolio tive, and must take place in the complex As of today, 31 active Bank projects in context of diverse and changing ecosys- Sub-Saharan Africa (in addition to 10 tems, political transitions and evolution GEF projects) deal exclusively with toward market economies. Last August, environmental issues. The portfolio's the Bank's regional team collaborated natural resource management projects with a broad spectrum of partcipants focus on forest and wildlife resource from African countries to develop management, and sustainable manage- Toward Environmentally Sustainable ment of agricultural lands or fisheries; Development in Sub-Saharan Africa-A its institutional projects support devel- World Bank Perspective', an agenda for oping environmental management action which builds the Bank's assis- capacity through NEAPs and ESPs; tance strategy around the region's major urban environmental management pro- environmental challenges: jects control the environmental and public health issues associated vith * achieving food security through sus- water and sanitation in cities such as tainable agricultural intensification; Abidjan and Lome; and its energy effi- * facilitating a demographic transition ciency projects address efficient fuel- to a more stable population level; wood use. The Bank's overall 8 Environment Projects Active During FY96 Cameroon, Mali, Senegal and Zim- projects which are environmentally and (S million) babwe made good progress toward socially as well as economically sustain- Global Env. (GEF) finalizing theirs. The countries have able, supplemented their borrowing (10 projects) prepared these NEAPs through partic- with improved environmental manage- ipatory processes involving a wide ment training. Pollution & range of stakeholders, including envi- Urb. Env. Mgt.romnaad (6 projects) ronmental and other ministries, This year, the Eritrea Community $186 0 wildlife service organizations, NGOs, Development Fund Project will finance Natural Res.a and community-based organizations. community-based sub-projects to Rural Ens. Mgt. Out of the region's 48 countries, 26 improve poor households' income-gen- 18projects) S425 have now completed NEAPs. erating capacity, such as environmental conservation and rehabilitation activities The Bank also helps countries imple- like check-dams, hillside terraces and ment new or updated NEAPs in the tree planting in areas affected by soil IBRD/IDA=$715 million; GEF=$49 million form of ESPs through non-lending erosion and deforestation. The Guinea activities such as policy and legislative National Agricultural Services Project contribution to these projects is reforms, training and technical advice. aims to improve the Ministry of Agri- approximately $715 million out of a Although these projects have a 5-10 culture's capacity to arrest environmental total project cost of $1.3 billion. year time frame, they support programs degradation and strengthen agricultural to be implemented over a longer extension's adoption of sustainable tech- This year, the region's environmental period, allowing time to identify suc- nologies and approaches. The Guinea portfolio has expanded to include two cessful activities and build up institu- Mining Sector Investment Promotion new projects, in Niger and Uganda. tional capacity. Zambia and Malawi are Project aims to improve mining-related The Niger Natural Resources Man- currently preparing ESPs. environmental laws and regulations and agement Project is designed to encour- to protect water resources from pollution age sustainable agricultural production Environmental Components in caused by mining. The Madagascar and growth while improving rural liv- the Investment Portfolio Energy Sector Development Project is ing conditions. The project will also In the past year, the region made great creating a program for energy conserva- address building capacity for environ- progress in building environmental tion which includes pilot projects in mental management through improved national polcies and strategies, strengtthening!instituti and , inat a w i i le9r+ca-ce local level, training rural communities ivs ood of an il eloe and funding for small resource manage- s and ea ment projects. The Uganda Environ- al r c projects 43%tOf ta e n batnP mental Management Project supports t poi estf an s contuate to the first 5-year phase of a longer-term program to build capacity for environ-.. .tduighent mental management at the national, mangeten POnet Oasin prig arforest district, and community levels through frssiSbeaa aNational Environmental Manage- Ilk to, arya menit Authority, and to initiate a process in which communities can address their local natural resource components into projects in its invest- fuielwood supplies, and will explore degradation problems. One of the key fti netens for similar programs in the objectives oftthe fuildirkst p tor ertipab- sion and education projects and in transport sector. The Ghana Urban tish tenbiiromng-blok fornageeti.pa agricultural research projects through Environmental Sanitation Project aims tory environmental management. ~soil conservation, soil fertility manage- to provide safe and adequate water sup- Durin thispast iscalyear,Cotement, agro-forestry and integrated -pest ply, sanitation and solid waste services in duorin thospaste fitscNAl y ar, not management components. Several lower income neighborhoods in the d'Ivoire completed its NEAP and ~countries, recognizing the need for country's major cities. Similar projects 9 were also approved in Tanzania. mg ~~~~~~~~~The environmental review process requiredby the Bank present an oppor- tunity to improve the environmental 110010 ~~~~~~~~~~~~~~~and social context for development pro- -o' ~~~~~~~~~~~~~~~~~~~~jects, particularly through sectoral or 1rt Environmental Assessments (EAs). In the transport sector this past 09, R111111 WV year, projects being prepared in Zanbia adEthiopia have included sectoral WN EAs, which will establesh criteria for road construction, rehabilitation or maintenance sub-projects. f fi~~~~~~~~~~NM j S %0I ff : im f m" *" u. IM R, Ig Training programs in Eritrea and Namibia continue to build EA capacity, with guidance emerging from the Bank's Workshop on Environmental Assess- 0 ;ment in Durban, South Africa in June 1995. The success of the Bank's and other donors' EA capacity building activ- ities becomes clear as governments rely ~~~~~~~~ ~~~~~~more and more on local consultants to prepare EAs for Bank-financed projects. Beyond National Boundaries Sustainable Water Resource Management MI ~~~~~~~~~~~~~~~~~In a move toward more sustainable management of its water resources this past fiscal year, the region adopted an q~~~~~~~. ~~~~~~Integrated Water Resource Manage- ment Strategy for Sub-Saharan Africa. Now ~~~~~~~~~~~~~~~~Since most major African rivers and ___ ~~~~~~~~~~~~~~~~~~lakes are international, the regional and sub-regional dimensions of water resources are critical and require inter- country cooperation. The strategy aims ~~~ ~~~ *~~~~~ ~~~~ ~to contribute to better water manage- ment by evaluating resources, assessing use patterns and environmental threats, identifying the potential for sustainable water resource management, and devel- law 111"El ~~~~~~~~~~~oping mechanisms for transboundary cooperation. The region has made progress fostering cooperation on water resource management among the Southern African Development Coop- eration (SADC) countries, and develop- ing national water management strategies in Tanzania, Kenya and ARgo-, AAAW ~~~~~~~Zimbabwe. Preparatory work has also continued on gg O~~~~~~~~~~~~ ~~the GEF Lake Victoria Environmental NU. ~~~~~~~~~~~~~~~~~~~Management Project. The project will address the major threats facing the NM Nal 091,11 ~~~~~~~~~~~~~~~~Lake's ecosystem, especially over-fish- 10 ing, eutrophication, and the effects of planning. The complementary proposed developed, they need to be comple- introduced exotic fish and plant species Congo Basin Initiative, now in its early mented by sectoral-level capacity and like the water hyacinth and the Nile stages of development, aims to develop capacity to manage cross-sectoral pro- Perch. Actions to be taken include long-term sustainable management of grams such as integrated coastal zone regional fisheries research and water the Congo's internationally important management or transboundary water- quality monitoring, harmonizing regula- tropical forest ecosystems. shed management. In parallel, increas- tory and enforcement systems, and pilot ing capacity for Environmental projects in land use management mea- The Challenges Ahead Assessment in the region, particularly sures like afforestation and soil conser- As Sub-Saharan Africa works to bal- for strategic Environmental Assessment vation in the catchment area. Other ance its critical social and environmental encompassing sectoral and regional international waters projects in the early needs in the future, it must foster approaches, represents a significant 4 a.~~~~~oyn; ~~~stronger ownership by building capacity challenge for the region's future. ;. for environmental plang ad mn r 'World Bank, "Toward Environmentally Sustainable agement, using participatory approaches Development in Sub-Saharan Africa: A World Bank at the national and local levels. The Agenda.' (Washington D.C.: 1996). caenge will be to promote implemen- tatin ofNEAs by focusing on Local ~, Environmental Action Plans (LEAPs) and cEEnvirontinuingtol promtcnation all (This article was prepared by Jean-Roger Mercier ofthe ,s. ~ ~ ~ ~ ~~~ad otnig opooe ainl Africa Region Technical Department~ ESPs, building on the experience and Environmentally Susasi nable Development Division own E best practices from the first generation (AFTEl). of ESPs. stages of development relate to manag- ing regional fisheries in West Africa, Developing institutional capacity will and designing oil spill contingency plans continue to be a high priority. As in the West Indian Ocean. national environmental agencies are Biodiversity Conservation A number ofthe region's biodiversity IMPLEMENTING THE MADAGASCAR NEAP projects share an approach to participa- i; ; tory community management of areas needing biodiversity conservation, many Mt ath e w of which span national borders. The - - GEE-financed West Africa Pilot Corn- munity-Based Natural Resource and ~d~egadpltn Wildlife Management Project uses a 5- ... e J i i I community-based approach to manag- &u on Isti bid ing 4,800 square kiometers of the ~dWWn~n& Oil$ ~h4tos Comoe natural savanna ecosystem in _ 0#p0t aro t neaaaroe ftaIatdy southwestern Burkina Faso and north- n a. ern Cote d'Ivoire. The project compo- oi anr ,s pr i r i o- nents include community land c a a 9NAtr Envi*r- management, subsistence and commer- mIv d o o t g d v cial use of wildlife. Zimbabwe and 4° ir-ct4 eof hign-e -; -- Kenya are applying similar community- P - - - based approaches to some of their own 'i'½ - ! v - - J iiij. . - i conservation projects.. e F bwlly*il *so-t; w. : .w.~~~~~~ftt ,~efky enirrwoa an .'.- .er The region has given high priority to by u g!t egis ultz - - environmental monitoring, reflected in A-t ,t tl o ldwav t Mu ra the Regional Environmental Informa- on Ea d dion Managemient Project (REIMP) , n rda pn~ h15dellyi h rn for the Congo Basin's six countries. The / e . multi-donor project is designing a ~gohaeb. demand-driven satellite information database for central Africa's tropical for- K. 2~1nnioawtlmaue eha Ylmwd est region to build capacity for environ- * e s mental monitoring and land use 't.~A...' ~ . Asia and the Pacific ver the last few decades, Asia are high in Asia's megacities and many has outperformed the rest of second-tier cities whose resident use 663,}65>3^S ;gjg~ ii>2: te}g *the world in its rate of eco- coal for cooking and winter heat. The *~~~~*~~~~ ~nomic growth. The region's economic cost of air pollution health cant$T ~ W countries have made signifi- damages is an estimated $1 billion a tFI~~~AP~~ ~ ~~ ~ cant advances in alleviating poverty and year in Bangkok, Jakarta and other > ~ improving living standards. As home to Asian cities. ~~~ ~~half the world's people, this is sgnhii- cant achievement. Natural Resources Degradation: But Widespread soil degradation, But the region's emphasis on economic deforestation, wetland conversion, and growth without equal attention to the biodiversity loss pose region-wide environment has resulted in widespread resource management and use 1' i;g;g2:::2gg gg gg,g @ i g environmental damage. The costs of air problems. Rural soil degradation in gUgM}gg@ "3Xn6gs=gaagiizggs§ gg ~ ~and water pollution and soil degrada- highly populated countries like e8ig sMl t 3gU ' @ tion are large even in simple economic Pakistan, India, Bangladesh and China terms. The region's costs from environ- has a measurable impact on ~~ ~ ~ ~ 2 2~~~~~ mental degradation are above 5% of agriculture. Deforestation is depleting t;t,'g ti I ~annual GDP, and in China may be as the national wealth of forest-rich ggg%g@g j@ g @ g high as 10%. The poor suffer most countries like Cambodia, Laos, from the consequences of environmen- Indonesia, Papua New Guinea and the tal neglect. Solomon Islands. Asian countries are learning that the Meeting the Challenges 'g=g trade-offs between effective environ- To address these problems, Asian mentalachanged economic growth countries are strengthening their envi- havechaned.Econmicprogress ronmental institutions, regulations and around the world is proving to be ben- strategies, and committing more eficial for the environment as it gener- resources. But an estimated additional ates resources for better environmental $30 to $40 billion a year will be needed protection and promotes new and envi- by the year 2000. The private sector's ronmentally efficient technologies. Bet- participation has become essential. This ter education and higher incomes are calls for policy and pricing reform to crucial to reducing environmental improve the rate of return on infra- damage. structure investments, improving the private sector's access to information, In spite of these new possibilities, how- government incentives, aggressive regu- ever, Asia's most vexing environmental lation enforcement, and environmental problems continue to intensify: education to create wider participation in the management process. Pollution: As the urban population in Asia grows, urban degradation is The Bank has helped Asia meet increasing. Industrial pollution is these challenges on three fronts this growing even more rapidly than past year: pollution and resource economic growth. Water pollution is management investments; institu- pervasive, contaminating surface water tional strengthening through capacity J - ' '|and groundwater in urban and building; and policy analysis, dia- industrial areas. Levels of air pollution logue, and reform, in industrial pollu- 12 EAP: Environment Projects Active During FY96 SA: Environment Projects Active During FY96 Mitigation Project is designed to Global Em, (GEF/MP) instituion Builrding improve environmental and social (6 proects) / (2 projects) aspects of Coal India's new mining investments, operations, land rehabili- tation, and resettlement of indigenous (GEF/laP)l Pollution & and other people; the Bombay Sewage (16 projects) U~~~~~~~~~~~~~~~~~~~~~~~ rb.jCn.tsso Instit Pollution & Urb. Env ( prjsestment in sewage colection, dis- In~titmdinnnI~m Mginvetmen collctio,ts) 4projects $2.1 billion posal infrastructure and financial sus- tainability while strengthening the IBRD/IDA=$3 billion; GEFIMP=$256 million IBRD/IDA=$2 billion; GEF/MP=$5 million municipal authority's environmental management capacity; and the tion control and energy and water China: This year, the Hubei Urban Hydrology Project targets institutional resource pricing. Environmental Protection, Yunnan and physical needs for improved water Environment, Second Shanghai Sew- resource management. The Environmental Project erage, and Chongqing Industrial Portfolio Reform and Pollution Control Pro- Activities in India also included a line This last fiscal year, Bank-supported jects were approved, to address urban of credit for Infrastructure Lending and environmental projects in the two Asia air and water pollution. These four Financial Services (ILFS), an interme- Regions grew from 45 to 53 (in addi- projects work with municipal and diary which will invest in water and tion to 8 GEF and 15 MP projects) in provincial authorities to develop more sanitation systems and other infrastruc- Bangladesh, Bhutan, China, India, effective enforcement of environmental ture operations to provide environmen- Indonesia, Korea, Laos, Nepal, Pak- regulations, manage demand for water tal and human health improvements. istan, Philippines, Sri Lanka and and other resources, and finance Their Environmental and Social Thailand. The balance between the investments to improve air and water Assessment Framework is being pollution and natural resource man- quality. applied to other Indian private sector agement projects in the two regions infrastructure development projects. reflects their different stages of devel- The Bank continued its assistance to opment. More than half of East Asia's China's National Environmental Pro- Indonesia: The Kerinci-Seblat Biodi- 29 environment projects target pollu- tection Agency (NEPA) in national versity Integrated Conservation and tion and urban environmental man- environmental policy, and to the Chi- Development Project was approved agement (10 in China alone), nese Academy of Sciences in coordina- this fiscal year. This Bank/GEF project compared to only 6 in South Asia (5 tion of ecological research. The Bank will safeguard the Kerinci-Seblat in India); South Asia has a much has supported policy dialogue on National Park by integrating park greater number of natural resource industrial pollution control, and energy management and conservation with management or rural environment and water pricing. Water and waste- local and regional development, with management projects (16 of 24 pro- water tariff reforms are beginning to be collaborative links between buffer zone jects in South Asia) than East Asia, implemented. Supervision continued communities, local NGOs and govern- which has 9. There are six institution on three natural resources projects ment. This approach is characteristic of building projects (4 in East Asia and 2 approved in FY94, and on one of the the Bank's Biodiversity Assistance in South Asia). The Bank's contribu- world's largest dams, Ertan, which has Strategy (see page 32). tion to these projects is $3 billion out a major environmental management of a total cost of $8.8 billion in East component. The Bank-supported PROPER, a sys- Asia and $1.7 billion out of $2.6 bil- tem that publicly rates firms on their lion in South Asia. India: Within the country's economic environmental performance, invites adjustment framework, the Bank con- public participation in industrial pollu- China, India and Indonesia were the tinues to seek opportunities to intro- tion control efforts by individual firms. focus of new environmental lending duce environmentally sound policies. Discussions are now underway in the this past fiscal year. Three projects were approved this year. Philippines to introduce a similar The Coal Environment and Social system. 13 Work also continued in Asia on policy Priority-Setting: Several South Asia pro- land resource management. As part of a dialogue and priority-setting: jects are addressing environmental prior- national biodiversity strategy, efforts are ity-setting and institutional capacity underway to improve participatory man- Policy Dialogue: In Vietnam, the Bank building. In Bangladesh, work is under- agement in a number of protected areas. focused on the industrialization strategy's way to implement the National Environ- environmental implications and technical mental Management Action Plan. In Sri Environmental Components in assistance to help the Government Lanka, a Bank review of the 1996-99 the Investment Portfolio develop enforcement standards and Public Investment Program and Core Environmental considerations are also mechanisms. In Thailand, work continues Investment Program identified funding integral to Bank-supported projects in to refine the health impacts of Bangkok's needs in the NEAP. Efforts are underway agriculture, energy, land management, air pollution, and to calculate cost-effec- to prepare a biodiversity action plan and transport, water resource, and urban sec- tive measures to allow the city to attain its investment project for conserving medici- tors. The extent to which projects incor- targets at the least cost. In Laos and nal plants. In Pakistan, two studies porate environmental components is a Cambodia, deforestation is receiving addressed national environmental priori- measure of how well environmental con- attention to reform the policy and institu- ties, institutions, and policies. In addition, cerns are addressed by more traditional- tional framework for forest management. four projects currently cover forestry and and powerful-government agencies. Examples include: land management in Bangladesh coastal areas, Laos, Shaanxi *unuy~~ >~r ~ ~ , province and Gansu Hexi Corridor'i ll China, and Sulawesi and Nusa Tenggara, Indonesia; fuiel and technology upgrading in large thermal power projects like Orissa Power Sector Restructuring Pro- a ject in India, Henan (quinbei) Thermal 14S Power Project in China, Mongolia Coal Prjct, and Vietnam Power Develop- ment Project; improved environmental 7 ~ ~ ~ ~ ~ ~ ~ ~ ~ S; ~~~~~~~management of highway construction in __ ~~~~~~~~~~China's Shanghai-Zhejiang Project, and highway environmental assessment pro- cedures and air quality monitoring in Thailand; improved water resource man- agement in India's Uttar Pradesh Rural Water Supply Project, and improved urban environmental services, such as the S ~~ ~~ Second Eastjava Urban Development 4 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~ ~~~~Project and the Manila Second Sewer- age Project. Beyond National Boundaries '~This fiscal year, a new strategy, the ~~ ~S Ii ~~~ ~ ~ iia ~South Asia Sub-Regional Initiative, was ___ ll ~~~~~~~~~~~~~~initiated to look at South Asia's regional itrcountry potential for sustainable I development, particularly in the 'devel- opment triangle' spanning Nepal, east- ern India, Bangladesh and Bhutan. Over half the 500 million people in this triangle live below the poverty line, on less than $1 a day. Social indicators such as literacy and infant mortality are ........ ~~~~~~~~~~~among the most dismal in the world. The initiative would focus on the trans- port, cross-border commerce, energy infrastructure, and water resource sec- tors, and would also examine sub- regional cooperation in industry and agriculture and cross-cutting themes ~~~~ ~~~~~ ~~such as environment and human resource development. It would look at 14 "Poord countriesrownot | ffi ffi 0 l front as they have on the economic front. Pffoord countries canot Future work will continue to emphasize and clean up later'; ti capacity in environmental agencies and environmental other government agencies responsible sustainability has to be for environmental investments in the integrated in the urban and rural sectors. Urban, industrial, design ot policies and watr,and energy issues will continue to macro and the sectoral be at the forefront of environmental level." problems. With a combination of coun- Joseph Wood, Vice t lXf iz I E1 O try-level and regional work, the Bank will President, South Asia - <' !M _ M _ _ n continue to assist Asian countries in these environmental challenges. Even as Bank ( , . . . . .~~~~~~~~~~cllboa lending to the more economically sc 'hardware', like strategic road or rail significant protected areas by collabora- lessing Southe A conties links, gas pipeline grids, and multipur- tion between local people and govern- declines, the Banks involvement in non- pose dams, and "software" options, such ment through an ecodevelopment lending services such as environment- as international agreements, trade and strategy. This strategy aims to address related policy advice and cross-border transit policies, comprehensive manage- the local people's impact on the pro- initiatives wil continue in Asia. ment of intemational river basins, and tected areas and the areas' impact on energy pricing. The initiative will seek them. Finally, preparation for GEF cli- to collaborate with various stakeholders mate change projects progressed in in the sub-region. India, Pakistan, and Sri Lanka. This article was written by Ramesh Ramankatty and Carter Brandon, both of the Asia Region Technical Other regional efforts are: Looking Ahead Departments Environment and Natural Resource * Analysis of transboundary environ- The challenge to Asian countries is to Division (ASTEN). mental issues in China, Far East perform as well on the environmental Russia, Japan, and the Koreas. A report has been prepared examining theshiftsintheregion'stimbertrade South Asia Environmental Projects as countries implement environmen- tal protection policies. |- - *The RAINS-ASIA program ana- Iyzes acid rain across Asia. RAINS- - ASIA Phase II is beginning to apply |- ; M9'ts ' - . 10 the Phase I model in China, Indone- - i; ....2.. sia, and Thailand. RAINS-Asia , . 7 recently received support from Japan and Norway for Phase II. 2°: The Metropolitan Environmental | : - - ''o. 14' Improvement Project (MEIP) sup- ports urban management capacit M, SNM- . building in Beijing, Bombay, | .. Colombo, Jakarta, Katmandu, and .. iT Manila. MEIP receives finding from 1 i Belgium, the Netherlands, and Aus- _ 7 t - - - tralia. MEIP has also initiated work .., . -, ..4 iii8 in Vietnam, and is extending activi- ties to secondary cities in Philippines, 1 i Sri Lanka and Indonesia. Ot*t. ¾ - - h- * The Cleaner Production Initiative P assists programs in Vietnam, China, H _ _ % } Philippines, Indonesia, India, and Sri ,*-s to, ; ; -; --H- s-nrI. -0' i9 Lanka, focusing on polcy and insti- 16k6ii;i'o? ot i4 'oa ati' 92 R9 '| ? | tutional development, analysis of 1 2 40 economic instruments, information l- ° dissemination, and training and tech- 9 1 , 1$ nology transfer. Pu. j . res an ?re * t'm'At ' <2 ' ' The GEF/Bank India Ecodevelopmcnt L'' ~ ~ ~ ~ t ~ . s __ Project, which has been negotiated and presented to the Bank's Board, aims to conserve biodiversity in seven globally 15 Eastern Europe and Central Asia A | [ * ^ s most of its countries trans- mental management systems need to form to market economies, be developed with clear sets of envi- the Europe and Central Asia ronmental priorities, established within region's environment has the financial constraints of the transi- ^ improved. Pollution is declin- tion process. Since the region's coun- a a F trial decing, and aii water and soil quality is tries are embarking on transition ~ l comimproving. Lead and heavy metal dust strategies which vary in objectives, ; I = =I levels have decreased in response to speed of transformation, and emerging ~~, ~ lower outputs and new emissions con- partnerships, they need access to a Y trol measures. Particulate and sulfur variety of instruments and institutional dioxide emissions from large stationary and investment support. The region's sources have decreased through indus- most important new challenge is to trial decline and price adjustments in combine economic growth and the power and metallurgy sectors. Nitrates, heavy metals and toxic chemi- _ , rrY pcals in drinking water have been reduced, and waste water collection and _- Countries iterinihda d votreatment has improved in areas like the Baltic and Black Seas. I_44.4.44.4. less reforme eBut environmental progress has been 4 ton down as theyincreasetheirGDPmixed. In many areas, air quality E . improvements appear to be less than proportional to the fa bof totaltemis- __ 1 sions. Even though particulate emis- sions from large sources have decreashed _ _4 4l (see Figuepae19.Btevncon-ithzerbijasubstantially in some areas, increased emissions from smaller sources like cars, small boilers, households and new commercial establshments have meant recovery with environmentaly sustain- that average exposure has remained able improvements. almost unchanged. Bacteriological con- tamination risk remains high in drink- Meeting the Challenge ing water, and may even increase in Since the early 1990s, the Bank has places with deteriorating water utility helped the region's countries establish operation and maintenance, realistic regional and national targets for Countriesonnal he region with advanced environmental improvements. At a Countries1in6the region with advanced regional level, the Bank has contributed market reforms are more likely than to developing and implementing the less reformed economies to keep pollu- Environmental Action Programme tion down as they increase their GDP (EAP) for Central and Eastern Europe. and industrial production. Phasing out Nationally, the Bank supported 14 subsidies and eliminating market dlis- countries as they prepared national tortions provide a better foundation for environmental action plans (NEAPs) or efficient natural resource use and sus- environmental strategies. Programs tamnable environmental improvements have also been launched in partnership (see Fig-ure page 19). But even coun- with Azerbaijan, Armenia, Uzbekistan tries successfulfly transforming to mar- and Kazakhstan, and in collaboration ket economies need to complement with the international Task Force for their reform measures with effective the Implementation of the EAP, the environmental policies and institu- WYHO and NGOs. tional frameworks. Proper environ- 16 In the past year, the Bank has sought provide technical assistance and invest- ing of environmental objectives with to support the region's countries by ment for construction of a geothermal sectoral development. investing in environmental projects demonstration plant to provide energy with strong institutional development for a district heating system. The plant Poland's Bielsko-Biala Water and components, increasing projects with will bring about reductions of 56,000 Wastewater Project is designed to environmental components in the tons of CO2 and 1,200 tons of SO2 support rehabilitation and improved investment portfolio, and enhancing annually, and will demonstrate the management of the country's water and countries' capacity to address environ- value of developing indigenous geo- wastewater sector, as are similar pro- mental issues beyond national thermal energy resources. jects in Wroslaw, Krakow, Bydgoszcz, boundaries. and Warsaw. The project aims to The Slovenia Environment Project is improve the Biala and Vistula Rivers' The Environmental Project designed to reduce particulate and sul- environmental quality by reducing pol- Portfolio fur dioxide emissions in some of the lution and industrial waste discharges. Currently, the Bank's environmental country's most heavily polluted cities. The project initiates combined sewer portfolio in the region consists of 22 Environment Prolets Active Durin FYS6 overflow control programs, introduces a projects (in addition to 19 GEF and 4 more effective monitoring program for MP projects), in Cyprus, Estonia, R1E-Mgt industrial waste discharges, and insti- Latvia, Lithuania, Poland, Russia, Io PM _ tutes a technical assistance and an Czech Republic, Turkey and Slovenia. P )N_ institutional strengthening program. The portfolio's pollution and urban _ environmental management projects (1O In Kazakhstan, the Irrigation and deal with oil spill problems, urban air & Ur. Drainage Improvement Project will pollution abatement, and improving E., Mgs 14 pllt.) improve existing drainage technology water and sanitation. The natural and reduce water losses, waterlogging resources/rural environmental manage- and salinity problems, and help reduce ment projects deal with land-based IReDADAU2bI.2Rv;GEFARMP$132milion pesticide use through farmer training sources of pollution affecting the Baltic and information dissemination. The Sea, and forest management for water- The project involves institutional project will also help strengthen legisla- shed protection or biodiversity conser- strengthening and an environmental tive, monitoring and enforcement vation. Institution building projects are management scheme for the Soca Val- capacities in the Ministry of Ecology designed to develop natural resources ley. An Air Pollution Abatement Fund and Bioresources. In the Estonia Agri- management capacity, and energy pro- (APAF) will be established as a trust culture Project, a land use manage- jects promote energy efficiency or the fund managed by the Slovenian Eco- ment component helps the Ministry of use of renewables. The total Bank sup- fund to finance conversion from coal to Environment prepare a wetlands man- port for these projects is almost $2.2 cleaner fuels or district heating systems. agement strategy in cooperation with billion out of a total project cost of Ultimately, the APAF will become a the World Wide Fund for Nature, $4.8 billion (Table). self-sustaining revolving loan fund for finances laboratory equipment for envi- similar projects in other Slovenian pol- ronmental monitoring, and funds envi- During FY96, the Bank committed luted cities. ronmental studies for future drainage financing for two projects in Lithuania investments. and one in Slovenia, with broad Environmental Components in Two energy sector projects in Moldova regional benefits which go beyond the Investment Portfolio and Romania have included measures environmental problems of national In this past fiscal year, Bank-approved to improve efficiency in power produc- priority. In Lithuania, the Siauliai projects in the region have components tion, reduce leaks and waste, and curb Environment Project, the seventh which address environmental quality air pollution. The Moldova Energy Bank pollution project for the Baltic and management. These components Project would also upgrade financial Sea region, has a water and wastewater serve to identify and create measures to management systems to reduce non- improvement and an environmental mitigate possible negative environmen- technical losses, facilitate better finan- management component, and the tal consequences, fully capture potential cial decision-making and induce Bank/GEF-supported Klaipeda Geo- environmental benefits, and create an subsequent sector reforms. The Roma- thermal Demonstration Project will institutional base to stimulate the link- nia Power Sector Rehabilitation 17 Project envisages technical and effi- The tendency to incorporate environ- research undertaken by the Bank has ciency measures which would result in mental concerns is noticeable not only also contributed to integrating environ- significant reductions in NOX, SO2 and in sectoral lending, but also in structural mental concerns and management. particulate emissions. The project would adjustment operations. Of the 41 struc- New policy reviews and programs, such also provide technical assistance for tural adjustment operations in the as the Gas Sector Review for Poland, institutional strengthening in environ- region since 1990, including 8 this fis- Coal Sector Review for Ukraine, Oil mental management, and health and cal year, 21 contain energy pricing con- and Gas Issues Study for Uzbekistan, safety improvements. ditions. Regional policy work and Agricultural Sector Review for Georgia, Transport Sector Review for Kaza- khstan, and Energy Sector Review for Macedonia, are likely to contribute pos- itively to closer coordination of envi- ronmental and economic development ~ l l I objectives. Beyond National Boundaries Many of the region's national agendas address envionmental concerns beyond their boundaries through regional pro- grams and support from the GEE The Bank has participated in collabora- tive efforts to improve the Baltic, Black, Aral and Caspian Seas, and the Danube River Basin. Through the Baltic and Black Sea Environmental Programs, the Bank has moved quickly from regional problem identification and priority-setting to project preparation and financing investments. The Baltic Sea Environ- mental Program has focused on pre- ventative and restorative actions to protect the sea based on 130 identified 'hot spots,' and has recommended policy 4 4 ~~~~~~~~~~~~~~~~~~~~and legislative reforms and supported institutional strengthening, research, and public environmental education. The Black Sea Environmnental Pro- grain has analyzed transboundary and local environmental issues, identified urgent investment actions and sup- ported the Urgent Investment Portfolo, facilitated multi-sector coordination, and provided technical assistance for local institutional capacity-building. Through the program's integrated coastal zone management and biodiver- sity components, the Bank has strength- ened institutional capacity through training, establishing activity centers, expanding information networks, and supporting national reports and pilot projects. In the Environmental Management of the Danube River Basin Project, the ~~~WI 4~~~~~~~~44~~~~ ~Bank was involved in agricultural stud- ies in Moldova, pre-investment work for 18 1T. 77 iH~~~~3 . the Budapest wastewater treatment pro- The Challenges Ahead and certain heavy industry decreases, ject, and a public awareness campaign Bank projects in the region are vehicular traffic is becoming the main for the Bucharest water supply project. designed to promote long-term solu- source of lead pollution in urban areas. tions through sustainable policy The issue goes beyond simple numbers Seven Bank/GEF projects were changes, financing mechanisms and of automobiles: it affects policies and approved in the region this past year. institutional capacity-building. Projects broader trends in fuel substitution, Projects in Bulgaria, Hungary, Russian are also designed to have a demonstra- transport, and shipping. Effective poli- Federation and Slovenia addressing tion effect. In the narrow view, a pro- cies and incentives must be imple- ozone depleting substances (ODS) ject is successful if it achieves specific mented to address these complex, phaseout will collectively eliminate environmental objectives, such as emerging challenges. Some countries in more than 4500 metric tons of Ozone improved air, the region, such as the Slovak Republic, - . 3 33~~~.: -~ 233 ~ ~ -~- water and soil have instituted policy and tax changes g S~~ h'3,- b. r. qalit.rI the w ,sc in conjunction with targeted invest- ~~ ~~-~ | ~cess must be mea- borne lead emissions. Others have sured by the asked the Bank for technical and - ~~~~~~~~~~~~~project's value and investment assistance. replicability as a model for future The regional economic picture is chang- activities. The ing rapidly. Some countries in Central .....Bank is commit- and Eastern Europe are facing the . . . . .ted to supporting immediate challenge of European lboth perspectives. Union accession; others are undertaking | ~~~~~~major structural changes and building A.BN Financing sources new trade and economic zones. The ABODare diversifying in Bank must respond appropriately to Depleting Potential (ODP) annually. ECA'S reforming economies, and the each of these differentiated needs. For The Kalapeda Geothermal Demonstra- emerging private sector is becoming the the accession countries, the Bank can be tion Project described above is linked to main source of growth, income, and instrumental in proposing least-cost greenhouse gas (GHG) reductions, and employment. But the pollution poten- strategies for meeting the EU's environ- the Russia Greenhouse Gas Reduc- tial is increasing as private firms, pri- mental requirements and financing parts tion Project will determine the princi- manily small and medium-size ones, of the public investment programs. For pal sources of GHG emissions from enter the market, and they require dif- the majority of the former Soviet Union natural gas production, transport and ferent environmental standards and (FSU) countries, outside of the immedi- use, and the most cost effective options enforcement policies than the large, ate EU expansion, the Bank can mobi- for their reduction. The Russia Biodi- state-owned enterprises in the old cen- lize support for economic recovery and versity Conservation-Priority trally-planned economies. The Bank and environmental management Response Programi aims to establish a can help the central and local environ- improvements. national biodiversity conservation strat- mental authorities develop adequate egy, provide institutional support and policies for the dynamic new private technical assistance to critical protected sector. The shift from point to non- areas, and support integrated natural point sources of airborne emissions also This article was writtein Jb,y Kpritaina. Georgioevand resources management ithLaerepresents aclen.Aspitear Division (EMTEIV). Baikal region. ownership and road transport increases ject, nd a pblic aarenes campign Bak projcts i the rgion ae vehiular rafficis becming te mai Latin America and the Caribbean L J * atin America and the challenge is to align economic growth Caribbean has emerged from with social equity, sustainably manage the economic stagnation of the biologically diverse areas and control 1980s. Today, democracy is urban environmental problems. spreading, the private sector's performance is dramatically improving, Meeting the Challenge productivity and exports are on the rise, During the 1990s, the region's coun- * ~~~~~~~~per capita income is growing, and infla- tries began to address this challenge tion continues to fal. with the Bank's support. The number =ag a Against ..,,,of Bank-funded environmental projects Against this bright economic picture, has doubled in this period, as has Bank overcrowded and polluted cities, persis- support for health, education and pop- tent poverty, and threatened biodiver- ulation projects. ~~~~~ ~~~sity stand in stark contrast. ~~w****~~Th ~ ~ More than 70% of Latin America's people live in urban areas. An esti- mated 300 miuion city dwellers gener- ate 225,000 tons of solid waste every iR,6SXg ple live~*r*** blthpvyln.oday, much of which is discharged into ~~~~~ ~~~~water bodies, open dumps and wet- lands, contaminating surface and ground water. Less than 5% of cities' _ _ frmsewage is treated. Urban air is severely polluted by motor vehicles and uncon- In view of the need to take a strategic trolled industrial emissions. approach to environmental reform, many of the region's countries have More than a third of the region's peo- now prepared National Environmental pie live below the poverty line. Most of Action Plans (NEAPs). The Bank has the 40 milion indigenous people, the helped them prepare these documents, bulk of the 'absolute poor', are excluded and in a number of cases is helping to from the development process and finance their implementation. A key deprived of income opportunities and new element of Bank support has basic public services like education, been participation by beneficiaries and health and housing. To survive, the other private sector and local govern- poor too often resort to over-using ment stakeholders in project selection, environmentaly fragile areas. design and implementation. This not only enhances the sustainability of The region is the most biologically Bank investments but also supports diverse on the planet, but its biodiver- democratic processes and accountable sity is being severely threatened. The sseso oenne Amazon Basin alone harbors about sseso oenne 90,000 known species of higher plants, The Environmental Portfolio 950 bird species, 300 reptile species, Today, there are 35 Bank-supported 3,000 fish species, and uncounted mpl- lions of insect species. But the region's prolects (in Ad s t nv to8GEnd 7oMP forests, grasslands, wetlands, coral reefs, . and other natural habitats are being projects). The pollution and urban severely degraded, or destroyed. environmental management projects In light ; _ _target pollution from industrial and of these problems, the region's mining operations, water pollution and 20In light of these problems, the region's 20 sanitation, solid waste management, Conservation and Rehabilitation resource use and greater involvement of transport pollution and environmental Project provides a loan to the paras- local communities and private owners. quality at the U.S.-Mexican border. tatal Compania Vale do Rio Doce These are the Argentina Forestry The natural resources and rural envi- (CVRD), which operates mining, Development Project, the Brazil ronmental management projects aim to industrial, rail and port facilities, to Rural Poverty Alleviation and Nat- improve sustainable land use planning finance investments in air, water, and ural Resources Management Project, and management for agriculture, soil pollution control and land reclama- and the St. Lucia Watershed and improve cross-sectoral natural resources tion. Components of the project are Environmental Management Project. management, and sustainably manage aimed at improving the welfare of The Colombia Santafe Project water resources and forests. The insti- communities and ecosystem conserva- includes a component to protect the tutional projects focus on improving tion. CVRD is also implementing wetlands in the city of Santafe de national, regional or sectoral capacity environmental management systems Bogota and surrounding areas. These for environmental management. The throughout its operations, aimed at wetlands, now almost totally destroyed, overall Bank contribution to these pro- controlling all their environmental are rich in endemic birds, fish, and jects is approximately $3.2 billion, of a aspects. other organisms. total project cost of $6.8 billion. Environment Projects Active During FY96 In response to the urbanization chal- Five of these projects were added to ($ million) lenge, governments have realized the the environmental portfolio this past need to work with the private sector to fiscal year. Technical assistance projects augment public sector investments. supporting environmental institution Privately operated companies are development were approved in Colom- Pollution & Urb. increasingly assuming responsibility bia and Ecuador. The Colombia Env. Mgt. for basic infrastructure services like Urban Environment Technical Assis- ; 1. bill! water supply, sanitation and public tance Project is designed to strengthen G(E transport. The Bank is working with municipal environmental management (24 proeclts) national, state and local governments agencies in Cali, Medellin, and Barran- to support the transition from publicly quilla, formulate pollution standards, IBRDJIDA=$3.2 billion GEFlMP=$165 million controlled environmental and infra- and establish pollution charging and structure services to a system where monitoring systems for industry. The the state takes on key regulatory and Ecuador Environmental Manage- The Bolivia Environment, Industry monitoring functions and transfers ment Project, aimed at strengthening and Mining Project was designed some operations and investments to environmental management capacity to within the context of privatization in the private sector, as in the Brazil support the NEAP through a partici- the state-dominated mining sector. It is Federal Railways Restructuring and patory approach, is targeting the Gulf aimed at implementing a regulatory Privatization Project. Partnerships of Guayaquil, the upper Amazon, and framework to assure sound environ- with the private sector have also been a number of urban areas. mental management of privately-led encouraged in environmental policy mining and industrial activities. It also implementation. Self-reporting, envi- Two natural resources and rural envi- helps remediate contamination from ronmental audits, voluntary agreements ronmental management projects were historical mining activities, for which and formation of semi-independent also approved. The Mexico Water the state accepts responsibility. river basin authorities are increasingly Resources Management Project pro- being advocated for controlling the motes conditions for environmentally Environmental Components in region's industrial pollution. sustainable, economically efficient, and the Investment Portfolio equitably allocated use of water In addition to the projects primarily Indigenous People and Civil resources by improving groundwater targeted toward environmental Society conservation, restoring surface water improvement, a number of other pro- Since 1994, the region has allocated quality, water allocation, and fee collec- jects include components built in to about $2 million in Institutional tion and registry of water rights for improve land, water, and forest man- Development Fund grants for capacity users. The Brazil Environmental agement, through more sustainable building for indigenous communities in 21 Chile, Colomnbia, Bolivia, Ecuador, W'1111~~~Mffl= NA W~-_ mm-M Nicaragua and Mexico. Following par- H ~~ ~ s "66 110 ticipation nworkshops, the communi- m MN 10 ~ties have been able to design and 0k9~~~~ p ,.~~~~~~ MM negotiate their own development strate- a, ~~~ W. gies for presentation to government and '~~ * ~~, ~' ~~' the Bank. Beginning in FY96 with the Eudor Indigenous Peoples Develop- ment Project, this is leading to a new generation of lending operations target- ing indigenous development needs in ~' ~" ~ se ~as Latin America. Mitigating against risks of impoverishment from displacement ~~ i~~~ and resettlemnent by Bank investments is as ~ ~ ~ ~ ~ ~ a ~~~~~ ~~~~ ~~~ ~a key objective. Countries are receiving technical and financial assistance to pre- pare sound resettlement approaches in more than 15 ongoing investment oper- ~~ ~~~ ~ ~ ~ . ~~ ations in the region. The Bank also con- a ~~~ ai ~~~ tinues to support poverty alleviation a 'ara~~~~ ~ ~ projects such as the Haiti Employment Generation Project. The Bank is also supporting civil society Ebbl"WAM, 10 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~, participation in development planning 'a~ and decision making. It has recruited ,~~ ~ a a ~~ 5ae ~~ ',~ * and trained 10 NGO and Social Analy- * ~ ~ ~ e~~~** ~~~ "a' ~~sis Specialists, and posted them with its ety participation in 20 'fasip' opera- toswhich already entail some partnership between government and ~~ '~ ' ~~ '~~' civil society, and another 40 new pro- s siii~~~ "i~~ ~ jects. The first generation of projects to include Participation Action Plans as in ~~ ~~~ ~~~ their strategy are expected in FY97. a ~~~ From there on the challenge wvii be to mainstream participatory approaches. a ~Beyond National Boundaries ~~ '~ viii' ~On a broader level the Bank, with the '~~~~~ ~~~~~i ~~~~~~~ ~~orators in Latin America, contributed analytical work on the definition ofa ppma~~~~~~~~~ ~biodaversaty conserv-ation strategy for I the region. A Conservation Assessment Of ii '~~ the Terrestrial Ecoregions ofLatin Ameri'ca a a *~a ,~* ~ and theCaribbean1 was writtnin part ~~ ~~~ nership with World Wildlife Fund and AQW ~~~~~~~~~~~~~~~~~~~~formally launched at the Bank's Third - ~~Annual ESD Conference in October 1995. This work is being complemented by a series on Critical Natural Habitats a a ~in Latin America and the Caribbean,' of which the first volume, covering the 5 ~~~~~a es ~~~~~Southern Cone (Argentina, Paraguay, S " '~~~' '~~"' Uruguay, and Chile), has already been 22 produced. This book will improve Envi- sector partnerships. The two closely poverty. With Bank support, the region ronmental Assessment (EA) in infra- linked projects received a combined $30 will also help the Andean and Central structure and other development million in GEF funding. The National American countries establish indigenous projects, and will help identify sites for Biodiversity Project, managed by the peoples development strategies. Involv- new conservation investments. Ministry of the Environment (MMA), ing civil society in supporting environ- includes a series of workshops to set mentally sustainable development and Another effort, the region-wide training biome-level priorities for biodiversity resolving social problems will remain a program in EA, supports national stew- conservation and a national biodiversity key theme in the Bank's agenda into the ardship programs. A grant from the conservation strategy. The Brazilian next century. Norwegian Consultant Trust Fund Biodiversity Fund (FUNBIO), which enabled the Bank to support EA train- provides financing for projects meeting The accelerating growth of cities in the ing for regional staff and NGOs in the priorities being established in the region poses a tremendous challenge in Colombia, Peru, Brazil, Jamaica, MMIA-managed workshops, takes an the future, and is likely to result in a Dominican Republic, Ecuador, Hon- innovative approach to project manage- shift in emphasis from natural resources duras and Nicaragua. Over 500 govern- ment by giving responsibility for fund management to pollution and urban ment officials and NGOs have been management to the Getulio Vargas environmental management. Brazil, trained in EA techniques and methods, Foundation, an NGO. New biodiversity Mexico, Chile and Argentina already Bank environmental and social policies, projects being prepared for submission have urban populations above 75%, a and inter-sectoral EA analysis. to the GEF Council in the coming fis- pattern being repeated in other coun- tries. Since governments can't afford the massive investments needed for urban infrastructure even with multilateral development agency help, they need to strengthen their partnerships with the private sector. Controlling urban envi- ronmental pollution is likely to depend increasingly on market-based instru- ments. The Bank remains committed to supporting the region in these efforts. Biodiversity protection will also remain an important issue because of the region's extreme ecological richness. New protected areas must be established and demarcated, and the protection of vital ecosystems, such as the Amazon, Mata Atlantica, and Caribbean Sea and coastal zones, must be better enforced. The Bank's support for natural resource cal year include ones in Nicaragua and management and biodiversity protection Honduras, and several others elsewhere " 'A Conservation Assessment of the Terrestrial Ecore- also includes several GEF grants. The in the region. All planned investments gions of Latin America and the Caribbean." In associa- tion with the World Wildlife Fund. 1995. ISBN number of GEF projects under imple- in Central America are linked to the 0-8213-3295-3. mentation in LAC increased to 11 dur- concept of a Meso-American Biological ing FY96, with two new biodiversity Corridor and include efforts to integrate "Critical Natural Habitats in Latin America and the in Brazi. GEF prjet i eConomicr and bicludfogical inegat Caribbean. Volume 1: Southern Cone (Argentina, projects in Brazil. Six GEF projects in economic and biological interests in Chile, Paraguay and Uruguay)." In collaboration with the region now support biodiversity long-term planning. Agriconsulting S.p.A. and the World Conservation conservation, three are targeted at cli- Monitoring Center. August, 1996. Latin America and change, and_two support interna- The Challenges Ahead the Caribbean Environment Division, (202) 676- mate change, and two support interna- The Challenges Ahead 9373. Volumes 2-4 in Draft. tional waters initiatives. The sustainable development challenges in the region are formidable. Reducing A recently completed review of the the gap between the rich and poor will GEF Pilot Phase concluded that stake- clearly remain an essential condition for This article was written by William Partridge, Chief of holder participation is key to success- its success. Brazil, Colombia and then Lain lmericaan tLATEN) a f202) 473-8622R fully preparing conservation projects. Jamaica have asked for the Bank's help Fax (202) 676-9373. The two new projects in Brazil look to in formulating policies on national promote biodiversity conservation involuntary resettlement to advance and through innovative public and private deepen their commitment to reducing 23 Middle East and North Africa n the 1960s and 70s, economic Environment Projects Active During FY96 growth in the Middle East and Gob(lEn . North Africa was the highest in (11pro,..ct$5 the world, primarily because of _ W g_ uraoil exports. During these years, in h Urb. a drive for self-sufficiency, the region E-e t Mgt. embarked on a strategy of industrial (234 ~¼s> >wd <~S ~ and agricultural protectionism sup- ported by trade barriers, a strategy W m _ fencouraged by publicly subsidized _ _~ g~ ._ lenergy, water and agrochemicals. IBRO/**A=$5 60imoio; GEFaMP=S56 .l,ni..on _ - gBut by the 1980s, as international oil __l~ii;~ jS u pbeame in the wake of global These problems now cost almost $15 overproduction, these economic gains bilion a year, 3% of GDP, in impaired _f~4be c unsustainable land the region's health, premature deaths, lost natural countries witnessed slow or even nega- resources, and tourism losses. tive per capita growth rates. By the 1990s, the 'lost decade' of the 80s Meeting the Challenges _ _ 1 counprompted many governments in the Todal a s and engaging public ~~ ~ ~. region to begin economic reform pro- Today toasd ma onyofmth region's contre _ gramshwatoimpver resources efficincy move partowipar, iteonomicefog mand __- and spur private sector growth. In the trade integration with the European process, however, the region came face Union, the Bank is helping the region toeface with the enironmentawlegacy meet its alfchallengs, sup- __ ~ of its earlier development strategy porting national and regional environ- (Box), with its unsustainable use of nat- mental action plans and strategies, ural resources and widespread environ- helping improve environmental man- mental degradation. The region now agement through institutional faces four major environmental chal- strengthening and capacity building, lenges: helping create an improved economic incentive framework for environmental 60 million people are exposed to protection, and providing targeted urban air pollution of particulates, lending for 'hot spots.' lead, and sulfur dioxide. This could increase to 160 million in ten years. In 1995, the Bank's regional staff pro- 45 million people lack safe drinking duced a Middle East and North A'frica water and 85 million lack safe sani- Environmental Strategy, a program to tatio, mosy in ural reas.address environmental problems by Ten of the region's 18 Bank member strengthening the capacity of environ- countries already consume more mental institutions and engaging public freshwater resources than can be participation, intensifying management renewed, relying on depletion of of scarce natural resources, and arrest- non-renewable aquifers and/or ing pollution, particularly where public expensive desalinization of seawater, health is affected. The Bank has sup- •Land, pasture and forest degrada- ported this strategy through projects in tion is threatening the livelihoods of its environmental portfolio, environ- < ~~~~~~~~~~millions of rural poor who depend mental components in projects in its 24for their sustenance on their regular investment portfolio, and pro- surroundings. ~~~grams and projects beyond national 24 boundaries, including METAP- financed activities (Box, page 27). The Environmental Project Portfolio As of today, the Bank actively supports 12 environmental projects in Algeria, Egypt, Lebanon, Morocco, Tunisia and Yemen (in addition to 7 GEF and 4 MP projects). The portfolio's pollution and urban environmental management projects aim to address environmental and public health issues related to solid waste, domestic effluent and industrial pollution. The natural resources and rural environmental management pro- jects deal with sustainably managing forests, soils and water, and building capacity for managing environmental protection. The overall Bank contribu- tion to these projects is $645 million out of a total project cost of $1.7 billion. This fiscal year, the Bank approved two industrial sector pollution projects, in Al geria and Egypt. The Algeria The pfuses olt1e cuertt &M rn16 bowted ir Industria Polution Control Project it~~ompI* ~~~~ef~~rfns~~, ~~re~~ . ~is designed to strengthen the country's institutional and legal framework by en~~~r ~ ~ )I pfcewih aoutbifty tat ;o0in0et**8u lyw fu *W)1$0hil~~4- increasing national and local capacities f.ir .-- tePt and l.ae: -a-i to design, monitor, and enforce policies * hlgh~ enr9y cc un1tlo~ In reation to oo~v~mit~ ~and regulations, and to help finance l - . * ' jsuX!in rela.tion -t k66 investments aimed at pollution reduc- tion and prevention in two industrial *hgiyw po _uin pulcetrses rtit IDSibeo h uko n~sre ~ plants-an iron and steel complex and water p~~~~~~~~~*Jor~~~~~~ I ~~ a fertilizer complex with several sulfu- I;-...; . ric and phosphoric acid plants. *. -ld fZ ineffi i rn| fhghly poUsintg kehicI fleerelcmeto whh isk |-ureged b- -i;h inipott barr- X -The Egypt Pollution Abatement Pro- * ;@r i - -- | ject, prepared with METAP assistance, | - - finane availab for etendng | aims to introduce innovative, replicable market mechanisms for collaborative |massiv --st~actfon andXSotflie-tt u Of ar r i , oagd lb environmental management between |_f kw -- " -t t ? - + # ^ ^ +financial/regulatory institutions and .....e......industrial enterprises; help the govern- e nXmztt--o. o i | ment improve its monitoring an - lack of -deqtrete natu~l r-owces tenure ;ghts and protectson, COUp1~d WIth enforcement capacity; introduce pollu- rapid p=pulation ~wthH .tion prevention investment as an envi- ronmental management tool; and 25 promote NGO and media participation opportunities while they maximize and wastewater services in Fez by reha- to create a public expectation for good environmental benefits. The Egypt bilitating and expanding the sewerage environmental and safety practices. The Second Social Fund Project supports collection system and providing waste- investment component provides envi- job creation through community infra- water treatment and quality control. ronmental financing through the com- structure works (small scale wastewater The project will also finance sanitary mercial banking sector for industrial treatment, rural roads, community cen- education campaigns, water quality con- enterprises, on a demand basis, to miti- ters), and small and micro-enterprise trol and credit lines for house connec- gate pollution and comply with environ- development, with environmental con- tions to sewers in low income mental regulations. siderations built into the project. Public neighborhoods. The West Bank and works in agriculture and water, sewer- Gaza Municipal Infrastructure Devel- Environmental Components in age and road maintenance financed by opment Project also aims to improve the Investment Portfolio the Algeria Social Safety Net Support sewerage collection, treatment and dis- Poverty and unemployment can exacer- Project include control of soil erosion in posal systems and conserve water bate existing pressures on natural vulnerable areas in two provinces and resources through wastewater re-use and resources from the poor as they look to maintenance of watershed infrastructure leakage control from irrigation systems. fragile 'open access' natural resources for in Bourmedes. The Yemen Public sustenance. Environmental degradation Works Project aims to promote com- Projects with components to strengthen and health hazards can also result from munity participation in small works environmental management capacity deteriorating public infrastructure such as irrigation improvement and soil include the Jordan Export Develop- caused by governments' budget con- conservation. ment Project, designed to build the straints. banking sector's capacity for 'clean' pri- Two projects approved in FY96 support vate sector development and growth A number of newly approved projects infrastructure to improve environmental and enhance the country's export com- in the Bank's investment portfolio for and public health conditions. The petitiveness; and the Tunisia Industry the region are designed to address this Morocco Second Sewerage and Water Support Institutions Upgrading Pro- problem by creating employment Re-Use Project will improve sewerage ject, designed to develop information and research on clean technologies, upstream waste minimization and reduction, economies in the use of raw material, energy, water and hazardous substances, waste recovery and recy- cling, training in best practices, and environmental audits. This past fiscal year, the Bank also helped prepare environmental strategies for Jordan and Lebanon, and completed a pollution load assessment for Saudi Arabia (on a cost reimbursable basis). Emphasis is also placed on disseminat- ing environmental assessment proce- dures, and introducing environmental economics through case studies and workshops. Beyond National Boundaries In addition to the six GEF projects under implementation in the region, the Jordanian Gulf of Aqaba Environmen- tal Action Plan was approved this fiscal year. This project will develop collabora- tive mechanisms for strengthening the regional capacity to protect marine bio- diversity and the coastal zone. Specific - ~~~~~~objectives include: developing and enforcing the legal framework and regu- lations for transboundary pollution con- 26 dm. 0.HNI-1 !!~~~~~~~~~i. ~To meet the challenges ahead, METAP o* w s ei is leading the way towards environmen- tally stainable development in the coastal zone; a e i a maregion. The Bank, with its international b* ~ ~ ' pates's now launching METAP's third and final phase (METAP ins, bilHl iwon 61,1996-2000), a $100 million program During E;Y96, the Bank's participation - Y - -which will implement concrete projects in three integrated priority areas: capac- foteMeitrananrgin,iprall-..'. !-'ity building, participation and partner- ships; arresting and prevention of trol safeguarding against oil pollution, pollution at'hot spots'; and integrated devising and implementing guidelnes water and coastal areas resource man- for sustainable development of the agement. It is envisaged that, by shifting coastal zone; and establishing and man- ivd the program's management to the aging a marine protected area. region, METAP III will result in several mill, s d .. t-bilion dollars in environmentally related During FY96, the Bank's participation investments through such initiatives as a in METAUP (Box) focused on preparing METAP Regional Faciiety at Cairo, a pipeline of environmental investments with a UJNDP-managed Capacity for the Mediterranean region, in parallel an l ing Ua d European with initiatives to strengthen natural Investment Bank-managed Project resources management capacity in the Preparation Unit, a Private Public Part- basin. n nership which will expand partnerships METAP Control and Egypt's Pollution - and collaborations between government, By the end of the fiscal year, ME P - business, and community groups, and a (1993-1995) was made up of 63 country . Special Grants Fund for local environ- and regional activities totalling $13.1 mental NGOs in the METAP benefi million, supported by the European g ciary countries. Commission, European Investment Bank, otNDP and the Bank. 34 were The region's countries have been slow to aimed at solid waste management, respond to growing lead pollution from industrial polution control, wastewater leaded gasoline, and many countries treatment and oil pollution control, a continue to use large quantities of high including the Algeria Industrial Pollu- ..sulfur fuel oil near population centers tion Control and Egy's Pollution and dirty diesel in transport. A few Abatement Project. Regional capacity countries have introduced unleaded building inifiatives focused on training D. ARNO gasoline on a limited scale, but relative in environmental communications, con- and servic; trove s ad prices of leaded and unleaded gasoline flict mediation and negotiation and menadprovide no incentive for using unleaded environmental economics. METAP rangeland productivity and sustainable gas. In the coming years, the region's interventions for institutional strength use by reducing fertility loss, erosion, countries can take advantage of other ening over the past year included a and vegetative cover and value; and regions' experience in the move to MEDGEOBASE land information manage water resources sustainably, par- unleaded gasoline. system in Morocco, advanced phases of ticularly in countries with serious water EIA units in Algeria and Egypt and an shortages and contamination. The Bank "Middle East and North Africa Environmental Strat- Environmentl Strategy or Lebanon. is also ready to help countries in the egy: Towardts Sustainabie Development. February Envirnmentl Strtegy or Leanon. region confront the issue of environ- 1995." ECA/MNA Technical Department's Environ- The Challenges Ahead ment and international trade as they ment Division (EMTEN), Fax (202) 477-0711. The Bank stands ready to continue its integrate with the world economy. Eco- supr othe region in the future to: nomic and sector work, such as Egypt's spportecto puh elh aaentrl upcoming Country Economic Memo- This article was written by Bjorn Larsen of the preotres;ctnpubl haipolth;imnag inatreale randum, will give attention to environ- ECAIMNA Technical Departmenti Environment resouces;contrl ai polution incease mental product quality, the World Division (EMTEN), (202) 458-2153, Fax (202) municipal wastewater collection and Trade Organization and the environ- 477-0711. treatment capacity, and industrial pre- ment, and ISO 14,000, issues in which treatment through regulation and enforcement; enhance rural develop- several countries have expressed iterest. 27 International Finance Corporation " FC is committed to integrating consultation with local populations. "Environment is a central priority for | environmental considerations into Environmental staffing resources were IFC. We have a two-pronged the mainstream of its activities, to increased substantially to provide approach: to ensure that all IFC involving civil society in major stronger support to investment depart- a decisions, and to consulting with ments and to quicken the pace of new projects are sustainable and affected parties on sensitive projects. innovative environmental projects. environmentally sound, and to be To promote and strengthen its role in sustainable development led by the pri- more proactive in developing new vate sector, IFC has expanded its envi- Environmental Due Diligence: ideas and initiatives to catalyze ronmental staff, reviewed its internal Meeting High Standards private sector investment. IFC must policies and practices, and established All IFC projects must meet high envi- regular dialogues with non-govern- ronmental standards. 'Environment' is a be a pioneer and leader in the effort to mental organizations (NGOs) and term used broadly to cover natural improve the environmental clients (Box, page 29). resources, social and cultural impacts, performanceof the private sector in Thisyear,IFClaunchedaseriesofand health and safety. Environmental performance of the prlvate sector In This year, IFC launched a series of ini- review procedures are designed to our developing member countries. tiatives to strengthen sustainable pri- ensure consistency with the World This is a fundamental role for us." vate sector environmental activities. Bank's environmental policies and pro- The Corporation worked closely with ject requirements, and also with host Jannik Lindbaek, the Bank to develop the Pollution Pre- countries' requirements. vention andAbatement Handbook, which Executive Vice-President provides environmental guidelines for For IFC's direct investments, projects IFC projects. It also began an NGO out- are environmentally assessed using a reach program, updated its policy on classification process similar to the information disclosure, and strength- Bank's1, with the addition of Category ened requirements for project-related Fl projects, involving sub-projects 0 _ )I I I C - , iA ^ A I ^ I 28 Vt. financed by financial intermediaries that In 1996, IFC and MIGA (Box, page operate a former government-owned may result in environmental impacts. In 28) project sponsors dealt with a broad refinery in San Lorenzo. Refisan has this fiscal year, IFC approved 15 cate- spectrum of environmental issues in begun a comprehensive environmen- gory A, 135 category B, 72 category C, designing projects, ranging from very tal cleanup, decontaminating soil by and 42 category FT projects. basic pollution prevention, abatement and cleanup to more complex issues: During project planning, project spon- such as natural habitat protection, land a-- sors that receive IFC's support must rights for the landless, and worker - - - M * a-g m*- t analyze environmental impacts and education. For example, the Kasese - ? jX -E* develop a plan to mitigate them. Finan- Cooat PtjeProjectndahinpdUganda helped pro- ! -ffi cial intermediaries must develop their tect an important wetland system (Box, - --:- i~ OTefic . .Orw -i-i- i- own capacity to conduct environmental page 31). ,, ,_> i ?i G reviews, with IFC providing training r~~t oeutv *& .rEg and backup support for sub-project Privatization programs often provide i. Ei - p?.-i environmental review. It is critical to fertile ground for environmental ,ititiii- continually supervise direct investments improvements, from staunching the-. and capital market projects to fully real- flow of pollutants from inefficient- e iii ize the benefits and opportunities in the operations to cleanup of contaminated i ?ii, Aie3 h '~~d~ 't NN: JE41 "W"I.. ~~~~~~Je~t-d.In~(ssm sponsor's environmental analysis. sites and installation of energy-efficient i-, iii S w< What Can thePrivateSector and clean productiontechnologies. 4 R Do? In Argentina, Refineria San Lorenzo i L i *vii Opportunities abound for improving (Refisan) shows how privatization . yte~~ -o? uht°?'I*w- ' the environment through private sector can lead to environmental benefits. -iS i i -i---:i! initiatives. Refisan was established to own andi--ii- - E-i-i. 29 biodegradation and removing oil pol- impacts on affected communities can tions, which will increase BSS's enroll- luting an aquifer. To avoid future con- be significant. In the Sucrerie Bour- ment by 16,000 students. An education tamination, Refisan is extensively bon Tay Ninh Project, a French-Viet- specialist, funded by a Japanese trust upgrading equipment, replacing namese joint venture, the sponsors fund, will help develop a BSS educa- underground pipelines with above- made a concerted effort to ensure that tional action plan and disseminate best ground pipelines that can be moni- land rights issues were handled sensi- practices to other schools. All buildings tored and repaired. Their installation tively and that small farmers' interests will be constructed with basic fire detec- of a closed cooling water system will were taken into account in construc- tion and alarm systems, and will be reduce river water intake and dis- tion and operation of a large sugar equipped for handicapped children. charge. New air pollution control refinery. The nucleus of the land for equipment has significantly reduced the sugar cane fields was occupied by Environmental Capacity air emissions from refinery operations. small farmers who had traditionally Building worked the land but had no legal title IFC provides loans, equity financing Promoting Social and to it and faced potential displacement. and credit lines to commercial financial Community Development Sucrerie and IFC worked with the institutions, which in turn provide loans Social and community issues are an local government to ensure that these to local businesses for working capital, integral part of sustainable develop- farmers were able to continue to culti- trade finance, project finance, venture ment. To better understand its projects' vate the lands they occupied. As a capital, and equipment leasing. The result, the displacement of farmers, development of training workshops for financial institutions has been an impor- tant IFC contribution. This year IFC continued its training program on Envi- ronmental Management for Financial Institutions, introducing senior officers r- **n wfrom 72 institutions in 14 emerging markets to the principles and methods of environmental management. Since 1993, over 250 financial institutions have participated in this workshop. A new, in-depth course now under development for environmental coordi- natos aIn financa insti ions will focus on practical aspects of integrating envi- ronmental management into financial operations. Course development is sup- ported by the European Commission through the IFC/EC Asia Trust Fund. IFCspoial sare impactsonvcommu arnde oeincluding those who lacked official IFC also conducts an internal training dceantimos on cmrpepties andates i tenure, was prevented, program to increase environmental werking with lidoal grous rFCxics iawareness and bring up-to-date infor- treieing wits pogrtols soC dieng The private sector can also contribute to mation on environmental management sions.boatisn wi encableit tovhelpets. social development in emerging to staff working directly with project sions.~~~~~~~~ ~ierc rates will enabl The toC hel Oprton."htcalngsst chients address the complex social issues economies by investing in sectors such sponsors to design and finance environ- arising from private investment and will as education or health. The IFC- mentaly sustainable projects. enhance its projects' development bene- financed Beaconhiouse School System fits. Initial findings suggest that across a (BSS), Pakistan's largest privately- Environmental Projects broad spectr-um of countries and sectors, owned school system with more than Taking a proactive stance toward envi- IFC sponsors are involved in a ranige of 29,000 students in 64 schools, has ronmental issues means finding oppor- devettloment activi riets, fm providlI focused on providing high quality edu- tunities for private sector financing in c0omm nitie ithea wr, health cation at costs affordable to Pakistan's environmental projects. "Forward look- servuicies andtedclatin wto r sponorin growing middle class. Approximately ing companies are recognizing that terainigprgas and rehabilitatsonsoing 70% of the professional staff and 40% of local and global environmental con- roads and community infrastructure in the students are women, which is cerns provide new business opportuni- collaboration with local governments, important in an area where adult female ties," says Jamil Kassum, Vice President literacy rates are 21%. The 1FC- of Operations. "The challenge is to In projects which involve issues of financed project involves construction of identify and focus on such business reetlmn adlnrihstesoal 14 school buildings at multiple loca- opportunities, which represent a grow- 30 ing new frontier of development and for private sector investments in the environmentally sustainable develop- investment activity." environment. Proposed investments such ment. Andreas Raczynski, Director of as the Biodiversity Enterprise Fund for the Technical and Environment Depart- Developing a strong pipeline of environ- Latin America will mobilize equity or ment, summarizes this role: "IFC recog- mental projects such as water and waste quasi-equity investments in sustainable nizes that our contribution represents management services continues to be a or alternative agriculture, sustainable only a small portion of the large capital priority. This fiscal year, IFC invested in forestry, ecotourism, or other sectors flows to developing countries. Consis- the first privatization of water and sewer with links to biodiversity. A Renewable tent with the new paradigm of private services in Brazil. Aguas de Limeira (AdL), a 50-50 consortium of a major Brazilian construction company, CBPO, THE KASESE COBALT PROJECT IN UGANDA and Lyonnaise des Eaux of France i i: izZii!~.i iO i f assumed operational control of the - ..... . . .- water/sewer system in June 1995. AdL ..-.-.- will provide approximately $124 million of new investment dunng the 25-year W , ~ ~ ~ fISW I vgSOnt LkSav; concession, increasing safe drinking . .i " water and sewage collection pipes and providing treatment of domestic and industrial wastewater prior to discharge into the Tatr, the city's principal stream. 5. The Tarn is one of the most polluted I... ;$L ' i& e- *te~ nvers in the Piracicaba, draining much °yj6y 1FCOtar* !si of the State of Sao Paulo's surface P &A ! HI h waters. A major element of this program TM4W0$I v- .1 1 ! is completion of a treatment facility that M ; r - - G; the city was unable to complete with its I._____________________ own resources. AdL's investment will reduce the waste load in the Tatu by Energy and Efficiency Fund will invest sector driven development, IFC should more than 90% over the next 5 years. in on-grid and off-grid renewable find ways to extend its influence beyond energy projects. A proposed photovoltaic its financial reach. Our vision is that Looking Ahead (PV) market transformation initiative, if leading private sector companies, espe- IFC has been able to promote environ- approved, will combine IFC, GEF, and cially those active in sensitive natural mentally sustainable development private sector funds to support both resources and infrastructure develop- beyond its own projects in support of commercially proven and innovative PV ment, together with NGOs, academia, regional investment and development technologies. (see Environment as a and multilateral financing institutions, strategies, by establishing benchmarks Business Opportunity, page 44). would agree on broadly accepted guide- for environmental performance in the lines that would govern investments in developing world and Eastern Europe. To spearhead the Corporation's activities developing countries. If the World Bank Strengthening staff environmental in financing environmentally sustainable Group can assist in achieving a broad awareness and knowledge will continue development, IFC has created a Special agreement between these parties, it to be emphasized in day-to-day opera- Projects Unit within its Technical and would have made a major contribution tions. As capital markets increase in Environment Department. The unit will to sustainable development." importance in developing countries, act as a catalyst to develop and imple- IFC will continue to work closely with ment a variety of new financing vehicles Category A projects have the potential for significant and diverse impacts and requite a fifil Environmental other multilateral financial institutions to help the private sector address a broad Impact Assessment. Category B projects may result in to develop a consistent, pragmatic range of environmental issues. Accord- specific impacts for which performance standards, approach to environmental management ing to Martyn Riddle, Manager of the guidelines or design criteria can be used to avoid or mitigate impacts. Category C projects normally do not in financial intermediary lending. IFC Environment Division, "By centralizing result in any environmental impact. Category FI pro- intends to continue to act as a catalyst management of the numerous environ- jects involve financial intermediaries which finance in developing new investment vehicles mental projects initiated by IFC and our sub-projects that may result in environmental impacts. to help the private sector finance envi- projects funded by GEF, our goal is to This article was written by Todd Hanson and Letitia ronmentally sustainable development, enhance IFC's role in environmental Oliveira, of the International Finance Corporations building on its experience and existing investments and their integration into Technical &Environment Department (CTEED), portfolio of environmental investments. IFC investment activities." (202) 473-3987, Fax (202) 676-9495. In the coming fiscal year, IFC will con- These initiatives are steps toward realiz- tinue its efforts to provide opportunities ing IFC's broader role in encouraging 31 Supporting the Biodiversity Convention S purred by the alarming loss of biodiver- last September, recognizing natural habitat loss as sity around the world, 149 countries have the main threat to biodiversity. As a result, the now ratified the Convention on Biologi- Bank does not support projects which would sig- cal Diversity (CBD). The Convention is nificantly convert or degrade critical natural habi- built around three imperatives: conserva- tats, and avoids other natural habitats entirely if tion, sustainable use, and the equitable sharing of possible by locating projects on previously cleared the benefits of biodiversity. Implementing these or converted lands. Where avoidance is not feasi- imperatives is now an urgent challenge to the ble and environmental assessment indicates that a world community, and the World Bank, along project would significantly affect natural habitats, with other international partners, is committed to the design must include mitigation measures such helping its member countries do so. as establishing and maintaining an ecologically similar protected area. This past November, after consulting with a broad spectrum of external stakeholders and Important work in support of this policy was _______ partners, the Bank presented its Biodiversity begun this fiscal year on Critical Natural Habitats Assistance Strategy' to the Second Conference in Latin America and the Caribbean (page 22), of ___X_:= _____ of the Parties to the CBD in Jakarta. The strat- which the first volume, covering the Southern ___ - egy is built on the recognition that protected Cone countries of Argentina, Chile, Paraguay areas are essential but not sufficient for biodiver- and Uruguay, is now complete. The series, which sity conservation, that significant biodiversity is pinpoints the region's critical natural habitats, is located in land- and water-scapes outside pro- being designed to improve planning, environ- tected areas, and that the opportunity cost to mental assessment and mitigation of proposed ; --g D developing nations for not using these resources infrastructure and other development projects is prohibitive. This strategy now guides the evo- and identify high-priority sites for new targeted lution of Bank support from a traditional focus biodiversity conservation investments. X__ Di ";tatyllUiX on targeted government-led conservation efforts to 'mainstreaming' biodiversity concerns (Box). Priority-Setting 3 The Bank has also supported regional biodiver- Supporting Targeted Conservation sity strategies and priority-setting exercises, as in -i Since the 1970s, the Bank has supported pro- its Latin America and Caribbean Region (LAC) w _ aa a< Si4SFQ$"tected area establishment and management, work. Last October, LAC and WWV launched a ___ ==:. 'ig9iD0§@ f2 v wildlife management, conservation planning, priority-setting exercise for South American ter- buffer-zone management and ex-situ conserva- restrial ecoregions (see page 22). The overview of B RAHiLL tion. Starting from a fairly modest level, Bank the conservation status and biological distinctive- assistance to biodiversity conservation has grown ness of 191 ecoregions making up the region's rapidly. The portfolio now totals $805 million for land-based natural habitats identifies high-prior- 95 projects or project components in 54 coun- ity areas for biodiversity conservation throughout tries, and an additional leveraged $536 million the region. This past year, the Bank also devel- from borrowing governments and other donors, oped its Assistance Framework for Biodiversity bringing the total support to $1.34 billion since Conservation in Sub-Saharan Africa. 1988. Over the last three years, this has involved average annual incremental support of $198 mil- Partners in Conservation lion. In this last fiscal year, the Bank approved an The Bank recognizes that successful conservation additional 9 projects at $134 milion. depends on active partnerships among all stake- holders-governments, local communities, the Natural Habitats Policy private sector, NGOs and international institu- In addition to conserving biodiversity, the Bank's tions like the Bank. In the past year, working with activities must not inadvertently harm biodiver- Conservation International, The World Conser- sity. With this in mind, the Bank finalized its vation Union-IUCN, the World Wildlife Fund, Operational Policy on Natural Habitats (page 39) the World Resources Institute and other national 32 Biodiversity and Natural Habitats ELEMENTS OF THE BANK'S BIODIVERSITY ASSISTANCE STRATEGY This section " * -, ~~~~~~~~~~~~~~~~~~~~~~~~~biodiversity v3m8r Pt ~ ~::~ i i~ ~ i, iconservation, ?:_ i i e v r ibiocftve.sjty especially in .XknMtW*eg 'ffi W: oitwn.- t forests and , 5, 5% "C't4, !?!4-NT-o# e# rt*n$ marginal lands. 0 0-, WA? X 0.; ii te;. i ;:iX ncs iow ; t*g ih sea, d W . rarefmrw 0Y . ¶0 tr and international NGOs, the Bank has supported mechanisms to amplifyc existing government-led conser-vation activities through NGO and com-t munity-based actions. The Critical Ecosystems Partnership Fund (CEPE), a grant facility pro- moting conservation and sustainable development in globally critical areas, is being considered and will hopefully be launched shortly. Looking Ahead In its Biodiversity Assistance Strategy, the Bank calls not only for targeted biodiversity conserva- B. RHL tion support, but for developing biodiversity- friendly policies and programs in sectors like the approach for implementing this new frame- agriculture and forestry. During the past year, it work. launched a Global Overlays Program, which seeks to develop the conceptual framework and In partnership with Wetlands International, the toolkit for mainstreaming global environmental Bank will also continue its work on wetlands, The article was objectives in national environmental planning and is holding discussions to see how it can help written by David and Bank operations. The Program's initial countries provide further maintenance of inter- Cassells, Forest focus has been on mainstreaming biodiversity national flyways, now partly funded by the Bank Resources Specialist, in agricultural development, and GEE with the Land, Water conservation m agrcultural development. and GEF. and Natural Mainstreaming Biodiversity in Agricultural Habitats Division of Development: Toward Good Practice, will be "Mainstreaming Biodiversity in Development: A World Bank the World Banks issued at the Third Conference of the Parties to Assistance Strategy for Implementing the Convention on Biologi- Environment the CBD in Buenos Aires this November. The cal Diversity," Environment Department Paper No. 29, November Department challengeremainsto develop a toolkit andtest1995. Available from the Environment Department, fax (202) (ENL W), (202) challenge remains to dvlpa totand test 477-0565. 473-9235, Fax (202) 477-0568. 33 Stratospheric Ozone Depletion he ozone layer protects life on Earth und i i a ity of ocll from dangerous ultraviolet radiation. poedOD; ilttain Rssian Cs in Ecsieexposure to UTV radiation can NotAmiaErpendevligcu- icrease skin cancer and eye cataracts, tries also nemnstewol omnt' * ~~~~~~uppress the immune response system, efrst hs u lCC.Tepouto and adversely affect terrestrial and aquatica tr A address t risk a ecosystems. Increasingly, anthropogenic emis- accmpish w spbbyt most cost-effec sions of ozone depleting substances (ODS) like tive scal ODS hout in te world. chlorine- and bromine-containing chemicals, particularly chlorofluorocarbons (CFCs), are MktBs ntuet threatening the ozone layer's stability. a s o mre- When countries around the world signed thephstf.heetdidnfesoetalppc- Vienna Convention for the Protection of the tions for conni MBIs like taxes and r- Ozone Layer and its Montreal Protocol (MP), able pro ionpets, and recmmends a they committed to phasing out all CFCs by natioiit g t 2010 (1996 for OECD). This past year, the ution. In opttv auction, afims'fe World Bank supported its client countries as price'or 'willingness to accept' a grant in e.change they worked to meet these obligations: for ODS elimination reveals the firm'sowesi mate of its true incremental costs of converso Montreal Protocol aA nat ional auction woud reduc Since 1991, as an implementing agency for the costs to the MFMP since fimswold have to Multilateral Fund for the Montreal Protocol compete for the Fund's resources and would have (MFMP), the Bank has approved 461 invest- incentives to minimize their conversion costs. in ment projects (about 40% of all MFMP invest- May, the MFMP Executive Committee approv4_ ment projects) at about $210.5 million (nearly $1- million for such a schemne in Chile. 50% of MFMP investment project resources). ~1This fiscal year alone, 112 investment projects, at Sectoral Approach to 00S Phasei $51.5 million, were approved. These projects Since September 1995, the Bank has 'been ok have resulted in an annual phaseout of over ing with the Government of China on apit 7,800 tons of ODS weighted for their ozone- phase out over 35,000 tons of ODS annuam lrV depleting potential, and will ultimately result in the halon sector, used primarily in fire protecion an annual phaseout of over 42,000 tons. systems Th hpolicy measures and finaoi , Global Evironmen Facilit (GEF)theo wilpoieenterprises with incet~ Global Environment Faciliotydeti anGadoptleast-cost options. CcLs Many countries with economies in transition are esiae hwta hsapproach wouldahev not eligible to receive financing from the MP mormesavings than a project-by-project appw _ but are eligible under the GEF. Through the -It would also~ allow fun disbursement to Bank as an implementing agency, the GEF is ba on ahieving halon sector phaseout targ 0 financing ODS phaseout in six economies in suring success by environmental perf ance transition, including Russia. The value of the I ta of the numbe'r Ofpojcps'" approved projects is now over $85 million, and will ultimately result in an annual phaseout of arbon RefiM over 18,000 tons of ODS. k em 0DS Production Phaseout in Russia The Bank is supporting a special initiative to help the Russian Federation phase out ODS production. Although ODS consumption in Russia has fallen over recent years, this could be ____________ giti 34 Global Climate Change The Global k N Atmosphere =-s lastvyear, in a global stdy on climate sions and that it is often in a country's best inter- This section change, scientists concuded that human est to pursue actions that also capture climate activities, especially fossil fuel combustion change benefits. Because agriculture, industry, focuses on the * and land-use changes like agriculture and energy and transport investments can impact the * deforestation, are increasing concentra- global atmosphere, climate change must be taken Bank's work in tionls of wreenhouse gases (GHGs), and altering into account in their design. Conversely, agricul- the Earth's climate. This will adversely affect tural and infrastructure investments, if not fostering global human health, ecological systems, and socio-eco- designed with climate change in mind, could be uuu2nic sectors, with developing countries being adversely affected by future changes in tempera- warming the most vulnerable. While the Framework Con- ture, rainfall and sea level regimes. vention on Climate Change (FCCC) places solutions through vbiig-tk--s on OECD countries and economies Up to a point, domestic and global benefits are in transition to limit emissions in the year 2000 to produced jointly. But climate change's global risk energy efficiency, those *.n 1990, it only requires developing coun- also warrants actions beyond domestic economic tuies to report on activities to address GHG. mis- and environmental efficiency. Increasingly, the demand side -smns and cimate change strategies. Meeti; he Bank is helping countries integrate climate FCCC's objectives will require 'global' im e- change concerns into policymaking and invest- management and ments in energy efficiency and transitiorS ment planning. Prototype climate change 'global from fossil fuels. The challenge the wo s is overlay' studies have been completed and guide- renewable to meet energy needs in the most e tally lines finalized for Ukraine's and Mexico's energy benign manner, and to take climate c to sector and Argentina's forestry sector. Work was technologies, and account in agriculture, forestry, fish g gi- also begun to bring the global climate change cal system conservation and sustaii+ dimension into Indian and Philippine power sec- its role in coastal zone management, and hui tor planning. carrying out the Climate change will continue i- Carbon Shadow Price Backcasting :Žnt impact on the Banks po eas- Study GEF and Montreal im netus to develop techzl I cies This past year, the Bank began a study to analyze promoting efficient energ ergy the economic implications of including a shadow Protocol work. _ AI new mecharisms t l price for carbon damages for selected projects, replace traditional fundi can and will assess how including a shadow price facilitate and leverage r e would have influenced each investment's design. purposes, in particulai ul th The study should help clarify how climate tile private sector (s e * i change concerns could influence the Bank's lend- year, the Bank has . ing, provide support for policy formulation and countries redu= of identify priority investments. greenhouso,aso Activities Implemented Jointly The FCCC Parties established a pilot phase for Activities Implemented Jointly (AIJ), where This article was written by Robert countnes contract with parties in another coun T Waton, Senior try to reduce that country's GHG emissions. AIJ Science Advisor to the is important for stimulating additional resource office of the Director flows for the global environmental good. With of the Environment Norway's co-financing, the Bank has expanded Department at the cts. its AIJ Work Program to clarify how AIJ and WorlD B other market mechanisms can promote the (4i73965, (202) Bank's client countries' interests. (202) 477-0565. R SR=tC S=: = =T 7 - --- - --- --- -S-_ _ 35 Measuring and Valuing the Environment raditional measures of economic progress crowd out attention to the environment. In the ignore the costs of environmental degra- Philippines, a joint IMF/World Bank team iden- dation and depleting natural resources. tified key policy reforms the government must The Bank has been at the forefront of make to address environmental issues in its efforts to correct this, pioneering new macroeconomic growth program on the road to ways to measure progress by linking the eco- becoming an Asian 'green tiger': introducing nomic and environmental spheres. Following on water pollution charges to increase the govern- the heels of such work as the integrated national ment's fiscal capacity to manage pollution and accounts it built with the United Nations for user charges to fund protected areas development Mexico and Papua New Guinea in 1991, the and maintenance, increasing fuel excise taxes, Bank continued its pioneering work this past and reforming the fiscal regime for mining, including resource royalties, to provide a secure revenue stream for the government and proper incentives to resource exploiters. Policy Reform and the Environment ;; U | 111@; 11 21 _ 115 _ ~~~~worldwide, the environmental effects are most .. - -glli = @l SII;liE;li 3ll i _ directly seen in the 'win-win' policies that aim to *0 .R; - 11 * * _ - ! w eliminate subsidies which damage both the economy and the environment. In 1992, the Bank's World Development Report highlighted fossil fuel subsidies as egregious examples of year when it published Monitoring Environmen- 'lose-lose' policies: scarce fiscal resources are tal Progress (MEP). The MEP presented first wasted, investment decisions distorted, and pol- estimates of total national wealth, embracing lution emissions elevated. Preliminary results natural resources, produced assets and human from work tracking the changes in fossil fuel resources for a broad spectrum of countries. The subsidies from 1990 to 1995 in 5 countries in document highlighted 'genuine savings,' which Eastern Europe show that total subsidy levels on extends traditional measures of net saving by coal, natural gas and petroleum products deducting the value of environmental depletion dropped from $14.4 billion in 1991 to $6 billion and degradation, as a new key policy indicator in 1995, 4.3% of the region's combined GNP for countries aiming to create and maintain total (Figure). Subsidy reductions are beginning to wealth. have an effect. In Poland, the aggregate effi- ciency of fossil fuel use (measured as quantities The Bank has made progress in four related of fuels used per unit of real GDP) has increased areas this year: by about 20% from its mid-1980's levels. Increased fuel efficiency translates directly into Economy-Wide Policies and the reductions in emissions of sulfur and nitrogen Environment oxides, particulates and carbon dioxide. An explicit link must be made between macro- economic planning and the environment through Another stream of work is assessing subsidies on a common analytical framework which recog- agricultural inputs, particularly fertilizers and nizes that, while human-made capital assets are pesticides, whose excessive use leads to runoff essential for development, they can only substi- into the environment. Input subsidies are sizable tute at the margin for natural, human and social in some countries: budgeted fertilizer subsidies in capital. This year, a Bank study on Jamaica India rose from roughly $900 million in 1982 to demonstrated that natural resource management nearly $2.5 billion in 1992. The past few years is important to sustainable growth and the press- have seen a significant reduction in the degree of ing fiscal and political concerns that tend to subsidization of agricultural inputs. Although 36 New Indicators of Progress This year, World Development Indicators This section Countries in Eastern Europe (VVDI) wlll be expanded to become the focuses on petroleum i Et Bank's most comprehensive and authorita- products tive set of data and indicators on economic environmental and social development. Environmental information at two U 1990/91 tables will cover land and deforestation, natural gas _ _ *1995 protected areas and biodiversity, freshwater levels: under- use, energy taxes and use, energy efficiency standing projects' and CO2 emissions, urbanization, air pol- coal lution, and traffic and congestion. environmental dimensions and 0% 10% 20% 30% 40% 50% 60% Evolving Measures of Value Liberalization in five Eastem European coountes (Bulgaria, Former Republic of Innovative work has been done on valu- monitoring their Czechoslovakia, Hungary, Poland and Romania) has led to dramatic decreases in implice and explicit subsidies on fossil fuels. Total fossil fuel subsidies fell from US$14.4 billion ing the environmental impacts of Bank performance; in 1990/91 to $6 billion in 1995, a drop of 4.3% of GNP. projects. These include the landscape val- S- raInt..n.1 En.rgy Ag.nBy a WoddBnk and auth&. stulation.. l ape and observing ues of forested hillsides in Croatia, off- site benefits from expanded protected a nation's these reductions have often been driven by fiscal areas in Haiti, the economic dimensions of coral management of problems and adjustment programs, they can reef protection in Indonesia, and tourism and have important environmental consequences. In other benefits from improved wildlife manage- its environment. some cases, as with Indonesian pesticide subsi- ment in Kenya. Lessons from this work will feed It also explores dies, the subsidy reductions have arisen directly into the development of indicators and efforts to from a recognition of environmental damage. further 'green' the national accounts. economic Indicators of Environmental Change Collaboration on Indicators Work analysis tools to The Bank is working with Indonesia, Costa Rica Collaboration with other international institu- link physical and South Africa to develop green national tions in ESD indicator development is essential. environmental accounts, expanding their traditional economic With the United Nations Commission for Sus- accounts to include natural resources and the tainable Development, the Bank has played a key effects to environment. A major program on development role in developing poverty indicators, and is economic and policy use of environmental indicators at the helping the Baltic states define their national country level will also begin this year, with assis- environmental indicator sets. A global coalition impacts. tance from Scandinavian trust funds. for Land Quality Indicators took shape this past year: UNEP, UNDP, FAO, CGIAR (the Con- New guidelines for environmental performance sultative Group for International Agricultural This article was monitoring indicators are part of a Bank-wide Research) and the Bank are working on a two written by John effort to improve project implementation and year program to expand our knowledge of the Dixon, Unit Chief better monitor the impacts of the Bank's lending. pressures on, and changing state of, agricultural Indicators and The first edition note of Environmental Perfor- land worldwide. Environmental mance Indicators is now being implemented. Valuation, and Kirk Hamilton, Environmental The second edition of Monitoring Environmental World Bank, "Monitoring Environmental Progress: A Report on Economist, of the Progress, scheduled for early 1997, highlights sec- Work in Progress." (Washington, D.C.: 1996). Pollution and toral indicators for land quality, updated portfo- Environmental ' . . 2 a~~~~~~~Environment Perforrnance Indicators-First Edition Note." Febru- Ecnmc Divison lo indicators on wealth and genuine savings, ary, 1996. World Bank's Environment Department, Fax (202) 477- of the Environment analysis of evolving themes such as poverty and 0565 oeEnroment 1 , ~~~~~~~~~~~~~~~~~~~Department the environment, and new indticators on policy 'World Development Report 1992: Development and the Envi- (ENVPE). (202) reform and the environment. This edition wil ronment." Published for the World Bank by the Oxford University 473-8594, Fax include human capital formation in the genuine Press, New York. 1992. (202) 477-0968 savings measures. 37 Legal Dimensions of Environmental Management nvironmental protection is now accepted nents early in a project's development reinforces as a crucial component of a modern legal its legal aspects. The benefits of this approach system, as Agenda 21 highlights in its can be seen, for instance, in the Industrial Pollu- guidelines for effective legal and regula- tion Control Project in Algeria and the Environ- tory frameworks. As governments mental Management Project in Burkina Faso. increasingly turn to the private sector, the impor- tance of sound, adequately enforced environmen- Transboundary and Global tal regulation and policy and pricing reform Assistance increases. The legal aspects of solutions to global Regional and global environmental solutions and transboundary environmental problems also often have national and international law com- present new challenges for inter-governmental ponents. The Bank's legal staff have helped draft such regional instruments as the GEF-financed regional trust fund agreement in the Eastern Carpathian mountains and the Resolution of the * - * * e * * a - - Wider Caribbean countries to develop laws * - * . - * - - - * needed to ratify the global marine pollution waters convention (MLARPOL 1973/78). In response to growing pressures on the Congo * e - _ - - a - Basin's biodiversity, the Bank is helping draft a Memorandum of Understanding between the six countries of the Basin to establish a Regional cooperation In the past year, the Bank has con- Environmental Information Management system cooperation. In the past year, the Bank has con- (see page 11). tinued to play a crucial role in helping its client countries integrate environment and develop- LEGEN was part of the team drafting the ment through law and institutional capacity working paper on the Red Sea's environmental i@ building. management and publications on the Desertifi- cation Convention and CIS States' participation Environmental Law and Capacity in international environmental treaties. Building Many developing countries are seeking advice on LEGEN has also helped coordinate the Bank's ~ how to enhance the scope, content and capacity role as trustee and administrator for global envi- of existing national frameworks to create a sound ronmental funds such as the GEF, the Ozone legal foundation for their environmental man- Trust Fund and the Rain Forest Trust Fund, agement. LEGEN (Box), working with the j *D*X*t ~responsibility country lawyers, have helped 50 *. countries produce overarching or sectoral legisla- tion in support of resource management, pollu- tion control or institutional strengthening. In the aipast year this has included framework environ- Idmental laws in Morocco, Eritrea and Haiti, water legislation in Tanzania, forestry in Cameroon and Laos, hazardous waste management in Algeria, environmental impact assessment in Syria, Burkina Faso, Cote d'Ivoire, and environ- mental aspects of mining operations in Zambia. leading to more streamlined legal instruments, including those providing funding to NGOs and In its work with countries on National Environ- the private sector. The legal staff also supports mental Action Plans (NEAPs), environmental the Bank at meetings of the parties of the Cli- , strategies and specific sectors, the Bank has mate Change and Biological Diversity Conven- }gfgS5E,! ~ found that addressing environmental law compo- tions and other related conventions. 38 Legal Frameworks International Law Issues THE BANK'S POLICIES This section As projects are prepared at the Bank, many i..,, _ i] . oi ; i, i s 1 , i ., ~ . ~.~ :,: ;ii international law sisues arise. LEGEN provides *4 focuses on the technical expertise as borrowers draft interna- Q t~G4,W~t~t~gPs}; legal aspects of tional instruments or identify customary rules _ea a p cso and treaties. Last year, in the Commercial Space °;-0igs aa Environmental Financial Sustainability fIN g;w= Management Financial sustainability is key to a project's long- Solutions to these envi- term success. To pave the way for private sector ronmental problems are involvement and sustainable financial manage- critical, but must be ment, the Morocco Sewerage and Water Reuse found within complex Project deepens the operating agencies' financial economic, social and and managerial autonomy; and the Bombay political realities. As evi- Sewage Disposal Project imposes direct charges dence increasingly sug- I gests that the old 'Pollution control'para- S. LINTNER'digm is no longer ade- quate, the Banks emphasis in its pollution work is increasingly shifting to environmental manage- ment. The Bank has committed some $7 billion to pollution and urban environmental manage- ment for 58 projects in 31 countries. In the past year alone, the Bank has provided some $1.1 bil- lion in loans and credits for 10 projects address- ing urban and pollution concerns in all parts of the world. These projects cover wastewater man- agement, mining remediation, and conversion of household heating from coal to gas. All the pro- jects support strengthening institutional capacity to monitor and enforce improved environmental management, and where appropriate, establish a sound regulatory and planning framework. This to the beneficiaries to ensure that provision of past year, specific solutions included: water supply and sewerage services is financially viable. Experience in other countries has shown Privatization and Public Sector Reform that poor people, even those who can least afford In some projects approved in FY96, public sector it, are willing to pay for safe water supply and reform and/or privatization has served as a pre- sanitation, since without these services they often requisite for improved environmental and finan- have to pay much higher prices to water vendors. cial performance of state-owned enterprises (SOEs), who are often the worst polluters. In the Clear Priorities and Effective Alternatives Industrial Pollution Control Project in Algeria, The Bank also worked this year to ensure that an agreement was reached to close some out- environmental projects address the highest prior- dated SOEs. In the Chongquing Industrial ity problems, and to identif, cost-effective alter- Reform and Pollution Control Project in China, natives. In the Slovenia Environment Project, a 42 Pollution N Management SLOVENIA: REDUCING POLLUTION THROUGH INNOVATIVE FINANCING Thissection highlights findings from the Bank's policy and operational work on pollution management and proposed large investment in emissions clean-up coal. The meeting emphasized the need to technology policy. from a power plant was rejected in favor of con- focus on the whole chain of coal use, from verting home heating from coal to gas, which mining through consumption in power plants yielded a much greater human health benefit. and small boilers. Similarly, during preparation of Bolivia's Envi- ronment, Industry and Mining project, it The Bank and IFC are working jointly to com- emerged that scarce drinking water and poor plete the Pollution Prevention andAbatement sanitation unrelated to the mining industry Handbook. This comprehensive document, being might pose a human health threat larger than developed in consultation with governments, that caused by mine wastes. NGOs and the private sector, will represent an emerging consensus on good practice in pollu- Policy and Outreach tion management. In its policy work and outreach on these issues, the Bank has taken the lead in a number of The Future instances: As the Bank works with its client countries to shift to environmental management as a solution • In a report to the October 1995 Sofia confer- to pollution issues, it is aware that the shift ence of environment ministers, the Bank pro- requires new relationships between central and posed that a program for the 26.5 million local governments, and between governments people living in the 18 largest Eastern Euro- and enterprises. The shift also implies that the pean cities could result in at least 18,000 Bank has a growing number of constituencies fewer deaths a year, and at least 65 million with whom to maintain a dialogue. Maintaining fewer working days lost to respiratory illness. this dialogue and learning from this experience are key to resolving some of the difficult ques- * At the Habitat II Conference in June, the tions related to pollution issues (see Box). The Bank received widespread support for its call Bank Group will be working much more closely This article was for a worldwide phaseout of lead in gasoline with the private sector to identify good environ- written by Richard to help relieve the health impacts of lead poi- mental and social practices, and to influence Ackerman, Unit soning. The Bank is also participating in a small and medium scale enterprises to improve Chief Technology and Pollution Policy, joint program to help phase out leaded gaso- their environmental management. The Bank ofthe Pollution and line in Latin America and the Caribbean, as Group finds itself well placed to serve as a bro- Environmental part of the Summit of the Americas. ker between industry associations and govern- Economics Division ments to help foster a better understanding of at the World Banks * The Bank convened a roundtable of experts each other's needs and intentions, and to pro- Enaironment and government officials in June as part of a mote a more stable investment climate in which (EDPE), (202) Clean Coal Initiative, to discuss ways to the regulatory framework for environmental and 473-2606, Fax reduce environmental damage caused by using social objectives is broadly accepted and applied. (202) 477-0968. 43 The Environment as a Business Opportunity t is becoming abundantly clear that global Overcoming Market Barriers environmental problems like climate change Over this last fiscal year, the International * and biodiversity loss will only be solved if the Finance Corporation (IFC) and the World * private sector weighs in with its vast techni- Bank' have worked to help the private sector *cal, managerial and financial resources and face this challenge through public-private part- expertise. nerships in the form of: consultations with stakeholders, NGOs, governments, and the pri- At the same time, the environment is becoming vate sector to design investment projects and a business opportunity, not simply a regulatory market transformation initiatives; and co-fund- cost, with opportunities growing to invest in ing through Global Environment Facility businesses that are not only profitable but also (GEF) and Montreal Protocol (MP) projects. Through this work, they are increasing the *s E: . _ _ - ___ range of mechanisms used to overcome market __ _ i l i _ barriers to environmental goods and services. -_i11 -l 51 l I Sllllilli _ | _ One approach is to 'buy-down' the costs and risks associated with sustainable businesses -|1 l - -l I I S lil 1 ia _ i _ through loans or concessional loans where credit _ - * - | * | 1f:1a"-.r: * al2 ; Xi _ i l#_ is not readily available or rates are prohibitive, credit guarantees to encourage lenders to pro- M*AC COSGROVE-DAVIS vide debt for perceived high risk projects or technologies, equity investments in regions or contribute significant environmental benefits. sectors that lack venture capital, and grants for The private sector's perspective is shifting as the technical assistance and project development to long-term cost savings of environmentally cover the high front-end costs of launching sus- benign processes become clear, and as consumers tainable businesses. Another approach is to use demand environmental products and services market transformation initiatives to stimulate or which result in global benefits, such as indepen- 'jump-start' market demand through rebates dently certified tropical wood, energy efficiency and consumer education programs. The box products, ecotourism and recycled products. illustrates how these approaches have been used in the last year. At the moment, however, in spite of their promise, businesses engaged in supplying envi- Looking Ahead ronmental goods or services often face a number The Bank Group is committed to encouraging of daunting market barriers, particularly in devel- the private sector to invest in enterprises which oping countries. They often find it difficult to result in global benefits like conserving biodiver- obtain financing, as many would-be investors are sity and mitigating greenhouse gas emissions. deterred by their smal size, unproven technol- ogy, high project development or start-up costs aThe future challenge S to continue to support and transactions risks. They lack access to credit sustainable enterprises, to demonstrate their at reasonable interest rates, and face subsidized commercial viability and help erode market bar- prices for competing products or raw materials, riers which restrict their more widespread appli- and institutional or structural hurdles. Energy cation. In this regard, during the next fiscal year pricing and fossil fiiel subsidies, for instance, may work will continue to develop a Photovoltaic prevent the private sector from investing in com- (PV) Market Transformation Initiative and a panies marketing renewables. Forest Market Transformation Initiative (seepage The challenge now is to align private sector 41), respectively aimed at hastening the wide- incentives with publc sector objectives to spread application of PV and sustainable forestry. encourage the private sector to participate more fully, and quickly, in environmental investments. 44 Engaging The Private Sector OVERCOMING MARKET BARRIERS FOR ENVIRONMENTALLY SUSTAINABLE PRODUCTS g~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. . . . . .. . 4~~g;o' i , . ?? , ¢? ? $'0?t?-0" i?Q ° ~~~~~~~~~~~~~~~~~~p, ,E .A . .. This article was th~~~~~~s~~~~~ ~written by Michael Amok~~~~~~~~~~~~~~~~~~~~~~~~~ W.110M Rubino in collaboration with wp~~~R. fl!!, ~__Dana Younger and 5L ....... ~~~~~~~~~~~~~~~Martyn Riddle of E . ' IFC5 Technical and w'S IYI Environment W T. . .0t0'i X , Department ?e .- ?' ? ,,,. . i ~ ?J ? .289(CTEED), and Ken ~~~~~~~~~~~ ~~~~~~~~~~Newcombe, Senior Environmental .~ t, Q ~ Advisor with the Environment Department 4~~~~~~~~~~~sw i iii (ENIVTDR). Michael 4~~~~~~~~~~~~~~~1~~~~~~4 Ruhino (202) 473- fi ~~~~~~~~~~~~~~~2891, Fax (202) E 676-9495. Ken Newcomhe ¾ ¾ ¾¾ ~~(202) 473-6010, Fax (2 02) 477- 0565. 45 Toward Social Sustainability t is now widely accepted that in order to last, Mainstreaming Participation development must be socially as well as envi- The Fund for Innovative Approaches in Human ronmentally sustainable. While the definition and Social Development (FIAHS) supported of'social sustainability' is even more elusive innovative, participatory activities around the than environmental sustainability, some clear world in 24 Bank projects, including the Azer- principles for action are emerging. At a mini- baijan Farm Privatization Pilot Project, the mum, care must be taken that development pro- India Women's Health Project, and the Jamaica grams are not socially or culturally destructive. Social Investment Fund Project. Similarly, the More than this, every effort must be made to Africa Region Client Consultation Fund con- protect the vulnerable, respect social diversity, tributed to participatory activities throughout ensure all stakeholders' fullest participation in Sub-Saharan Africa. FY96 also marked the launch of The World Bank Participation Source- book' (Environment Matters, Summer 1996). The Bank continues to be actively involved in an interagency working group dedicated to forming in-country participation learning groups for key stakeholders. Social Dimensions of Environmental Management This past year, the Bank has continued to strengthen the links between social development, natural resource management and biodiversity conservation. The Niger Natural Resources Management Project is aimed at securing sus- tainable agricultural production and growth decisonmaing, nd bild p, ralierthanwhile improving the living conditions of the deciry,soionakig candbitld. pahrta rural population. Local community involvement destroy, social capital. is central to the Madagascar Environmental Support Program's second phase (see page 9). Over the past fiscal year, in its efforts to turn Environmental and biodiversity conservation these principles into practice, the Bank has given policies for forests developed in the initial phase particular attention to four areas: of the project will allow local communities to exploit forest resources on a sustainable basis. Support for Work on Social Policy This will be complemented by measures to and Social Assessment (SA) improve land management at the local level to Since the Bank's first SA guidelines were issued ease pressure on protected areas and other areas in May 1994 as a framework for social analysis of conservation value. The Bank has also initi- and participation in projects and sector work, ated a study on the use of community based 10-15% of Bank projects have included SAs. approaches in natural resource management The use of SA in Bank projects increased in investments. Social assessments are being carried FY96. Results of a recent review of SA in out in all GEF projects and work continues on selected projects indicated that it was being used integrating social assessment into private sector across Bank regions and sectors, that findings activities. are being used to reach the poor, and that the SA process helped build institutional and local Work on Post-Conflict Reconstruction capacity for participation (Box). Efforts are also and Issues of State and Society continuing to strengthen links between SA and Some of the Bank's most recent work on the Environmental Assessment (EA) in the envi- social dimensions of development centers on ronmental review process for all Bank projects. post-conflict reconstruction and issues of state 46 yn Social Perspectives SOCIAL ASSESSMENT'S CONTRIBUTION TO PROJECT QUALITY Thissection $~iaIAs~essm*nts'(SA~ } ; N 33~'tL' t"" ' * ' focuses on efforts tit to increase N 33~~ participatory 3., W i 3 W ffi i enviapproaches, .- §-- .!tdienhance public ottIte*swt4s~~~~~~~~~~~~~~~~~~~~~~~evlpmn int nifitwtdopd-w i*' 1~"involvement, and S'uLooking'5(. 3 f* integrate the 3 .3 t$Aft*trw utr~~~~~~~~~~p41pA.~~~~r~ty K ~~social and environmental ________________________________ N 5, ,. ~~~, ~ 3 3~ 3'3~ dim ensions of Looking Ahead ~~~~~~~~development into A Social Development Task Group of Bank decisionmaking. economists and social scientists began work this fiscal year to evaluate various initiatives and approaches underway in the social development arena, so that the Bank can make more system- atic use of best practices and findings. The Task Group concluded that the Bank must bring a multi-disciplinary perspective to its operations, that social and economic approaches can and must complement each other, and that the Bank needs to substantially deepen its understanding of the social factors which affect and underpin Paticipatory planning in Estonia (see Box) J. THOMPSON development to enhance the social aspects of its projects. Their report in FY97 will make initial and society in Angola, Bosnia and Rwanda. The recommendations on how this should be done. Bank has increased its attention to initiatives Recognizing the diversity of views likely to greet linked to post-conflict issues such as refugee this report, a major recommendation is that the reintegration, demobilization of ex-combatants dialogue continue to be given prominence in the and operational de-mining, and aims at building future. This article was foundations for sustainable peace, as in the written by Kathryn McPhail and Susan recently approved Bosnia Land Mines Project. A Jacobs, social scientists policy paper has been drafted on post-conflict (World Bank, "The World Bank Participation Sourcebook." with the Social Policy reconstruction, supported by a lecture series and Division of the collaboration with United Nations agencies. 2 'Mexico Resource Conservation and Forest Sector Review-Incor- Environment Work on local level institutions and their rela- porating Social Assessment into Economic and Sector Work)" Department Environment Department Dissemination Notes, No. 44. May, (ENVSP), Fax (202) tions with the states has also begun. 1996. World Banks Environment Department, Fax (202) 477- 522-3247. 0565. 47 Strategically Managing the World's Water I n the past few years, a 'water crisis' has Moving From Segmented emerged in many countries around the world. to Comprehensive Where water was once abundant, it is often Use-based management of water resources must now scarce. More than a billion people lack be replaced by an integrated framework. In access to adequate water and 1.7 billion people cooperation with the GEF, European Union and have inadequate sanitation. Contaminated water other partners, the Bank has given priority to causes millions of preventable deaths each year, developing and implementing regional and basin especially among children. In many areas, water level programs that promote integrated strategies rather than land availability will be the main con- for water management. The Bank continues to straint to agricultural production, already con- participate in Environmental Programs for the strained by competing urban and industrial water Aral, Baltic and Black Seas (see page 18), Danube demands, and ecosystems and the rural poor will River Basin, Mediterranean Sea, and Red Sea and Gulf of Aden and, in cooperation with UNEP and UNDP, is preparing an initiative for the Caspian Sea. The Bank's freshwater work includes integrated river basin and lakes manage- ment such as the Asia Water Initiative and activ- ities in eastern, southern and western Africa. Emphasis is being given to cooperatively devel- oping programs linked to regional/national water resources strategies, and lake management pro- grams emphasizing the need for basin manage- ment are being undertaken in Africa, Asia, Europe and the Middle East. Moving From Curative to Preventive The costs of preventing resource degradation are small compared to remediation or rehabilitation S. LINTNER costs. A major challenge for freshwater, coastal and marine mana fement iS to increase the level also be affected by urban and industrial water an aiemngentitoncasthlvl abstractionb af d bywurbansandtindustriaewater dof effort for preventive measures while maintain- abstractions and wastewater discharges. ing support for curative interventions in degraded areas. During FY96 the Bank, with the The challenge the world now faces is to sustain- support of the GEF and Norway, began an inno- ably manage its water resources. To this end, the vative study under the Red Sea and Gulf of Bank has adopted a long-term strategy, reflected Aden Program on management of navigation in its Water Resources Management Poaic . The risks, the primary threat to the marine environ- strategy emphasizes the importance of taking a ment in this region. A complementary national holistic approach to managing water, involving a level marine environmental pollution prevention wide variety of stakeholders in water resource assessment is planned for Eritrea. To promote management, and recognizing water as a scarce preventive measures, the Bank has also issued an economic good. The policy also views freshwater, Environmental Assessment Sourcebook Update on coastal and marine resources as a management Marine Oufalls.' continuum and recognizes the important interac- tions between land and water. The strategy Moving From Incremental underlies the Global Program of Action for the to Strategic Protection of the Marine Environment from Land-Based Activities, adopted in 1995, which Regional environmental programs, natonal calls for four complementary shifts in aquatic water resources strategies, and management pro- resources management promoted by the Bank in grams for river basins, lakes and coastal areas all the past year: contribute to a shift from a piecemeal to a strate- gic investment approach. All identify a diversity 48 Water Resources Management Department for Research Cooperation of the This section Swedish International Development Agency (Sida/SAREC), the Bank is also evaluating focuses on marine biotechnology in developing countries. In the past fiscal year, to support these four corn- freshwater, plementary shifts, the Bank provided training to its client countries in integrated water resources, coastal and including regional and national seminars on inte- grated approaches to river basin management, marine resource participatory approaches to water management, and workshops to develop and disseminate the management, Afiica Regional Water Resources Management Strategy. Training courses in coastal zone man- integrating an agement included seminars on the Red Sea and Gulf of Aden, North Africa, and the Gaza Strip. ecological In cooperation with Sida/SAREC, the Bank also S. LINTNER conducted national seminars for Tanzania and dimension into Mozambique. of complementary actions-policy, regulatory, water resource management, investment and institutional- Emerging Challenges which, with phased implementation, permit The key challenge for the future is to implement management from environmentally sound management of available and develop broad acceptance for integrated resources. The Bank's Middle East and North approaches for water resources management. The the upper Africa Region initiated regional and national Global Water Partnership, designed to consoli- evaluantons of water resources management dur- date existing UNDP-World Bank programs and watershed to ing FY96 to identify priorities for policy involve other partners in addressing the long- changes, institutional strengthening and invest- term challenges, is important in this respect. A the coastal zone. ments. These activities have been complemented Lakes Management Initiative, designed to more in many cases by coastal zone management mea- effectively integrate lake management into water sures supported by the Mediterranean Environ- resources planning, is also a priority, as is devel- ment Technical Assistance Program (METAP) opment of management approaches for non- (seepage 27) and GEF activities in the Black, point sources of pollution, especially from Mediterranean and Red Seas. agriculture and rural settlements. In the arena of Moving From Piloting to Mainstream environmental indicators, the Bank's Water and Sanitation Division recently published the sec- The Bank and other organizations have sup- ond edition of the Water and Wastewater Utilities ported pilot activities to demonstrate and test Indicators3. This important contribution to the innovative solutions to freshwater, coastal and development of field tested environmental indi- marine resources management. Where successful, cators will be complemented by initiatives such these approaches should be more broadly applied. as the interim Monitoring and Evaluation The article was The Aral Sea Environment Program and the Guidelines for GEF International Waters Pro- written by Stephen Haapsalu and Matsalu Bays Environment Project jects under Bank-supervised implementation. Lintner, Principal Haansalu ~ ~~~~~~~~~~~etsudrBakspevsdimlmntto.Environmental in Estonia both supported the use of constructed Specialist with the wetlands for wastewater treatment purposes dur- Land, Water and Ti'A T 1 1 r7 1t r l ~~~~~~~World Bank, "Water Resources ManagementA AWorld Bank Pol- Nat,a ranHbat ing FY96. Integrated Coastal Zone Management iv Paper." (Wasiington, D.C.: 1993) Natural Habitat (ICZM)-an inter-sectoral and ecosystems Division at the (ICZMI-an inter-sectoral and ecosystes 2"EA Sourcebook Update No. 13: Guidelines for Marine Outfalls World Banks approach to managing coastal resources and eco- and Altemative Disposal and Reuse Options." Available from the Environment nomic development-is being introduced on a World Bank's Environment Department, Fax (202) 477-0565. Department pilot basis into the Bank's portfolio of coastal " 'Water and Wastewater Utilities-Indicators Second Edition.' (EANLW), (202) investment projects in Mexico, Ghana, Thailand, Yepes, G., and A. Dianderas. May, 1996. World Bank's Transport, 473-2508, Fax Albania and Indonesia. In cooperation with the Water and Urban Department, Fax (202) 477-0164. (202) 477-0568. 49 Publications Recent World Bank Publications on the Environment The documents listed here are publications published through the Bankes Office of the Publisher (see www.worldbank.org for more information). Other environmental publications are available through the Environment Department and other individual units at the Bank. For information on these, see the publications listing at http://www-esd.worldbank.org/html/esd/env/envmain. General Meeting the Challenges of Population, Environment, and Resources: The Costs of Inaction. Henry W. Kendall, Kenneth J. Mainstreaming the Environment: The World Bank Group and Arrow, Norman E. Borlaug, Paul R. Ehrlich, Joshua Lederberg, the Environment since the Rio Earth Summit-Fiscal 1995. The Jose I. Vargas, Robert Watson, and Edwin 0. Wilson. World Bank. ISBN 0-8213-3290-2. $8.95 Environmentally Sustainable Development Proceedings Series No. 14. ISBN 0-8213-3635-5. $7.95 Monitoring Environmental Progress: A Report on Work in Progress. The World Bank. ISBN 0-8213-3365-8. $7.95 Servicing Innovative Financing ofEnvironmentally Sustainable Development. Ismail Serageldin and Joan Martin-Brown, Sustainability and the Wealth ofNations: First Steps in an editors. Environmentally Sustainable Development Proceedings OngoingJourney. Ismail Serageldin. Environmentally Series No. 11. ISBN 0-8213-3628-2. $7.95 Sustainable Development Studies and Monographs Series No. 5. ISBN 0-8213-3551-0. $7.95 Taxing Bads by Taxing Goods: Pollution Control with Presumptive Charges. Gunnar S. Eskeland and Shantayanan EnvironmentalAssessment Sourcebook. Vol. 1. Policies, Devarajan. Directions in Development. ISBN 0-8213-3457-3. Procedures, and Cross-Sectoral Issues. Vol. 2. Sectoral $10.95 Guidelines. Vol. 3. Guidelines for Environmental Assessment of Energy and Industry Projects. World Bank Technical Paper No. 139. English: ISBN Nos. 0-8213-1843-8, -1844-6, -1845-4. Biodiversity and Natural Resource Management Arabic: ISBN Nos. 0-8213-3523-5, -3617-7, 3618-5. Vols 1 and 3 $13.95; Vol 2 $17.95 Decentralization and Biodiversity Conservation:A World Bank Symposium. Ernst Lutz and Julian Caldecott, editors. World Ethics and Spiritual Values: Promoting Environmentally Bank Symposium Series. ISBN 0-8213-3688-6. $40.00 Sustainable Development. Ismail Serageldin and Richard Barrett, editors. Environmentally Sustainable Development Biodiversity andAgriculturalIntensification: Partnersfor Proceedings Series No. 12. ISBN 0-8213-3713-0. $7.95 Development and Conservation. Jitendra P. Srivastava, Nigel J. H. Smith, and Douglas A. Forno. Environmentally Sustainable The Self and the Other. Ismail Serageldin and Afaf Mahfouz, Development Studies and Monographs Series No. 11. ISBN 0- editors. Environmentally Sustainable Development Proceedings 8213-3759-9. $9.95 Series No. 13. ISBN 0-8213-3714-9. $7.95 Freshwater Biodiversity in Asia, with SpecialReference to Fish. Toward Environmentally Sustainable Development in Sub- Maurice Kottelat. World Bank Technical Paper No. 343. ISBN Sabaran Aftica: A World Bank Agenda. World Bank. 0-8213-3808-0. $7.95 Development in Practice Series. ISBN 0-8213-3599-5. $20.00 Biodiversity and Agrikulture: Implications for Conservation and Development. Jitendra P. Srivastava, Nigel J. H. Smith, and Effective Financing Douglas A. Forno. World Bank Technical Paper No. 321. ISBN 0-8213-3616-9. $7.95 Effective Financing of Environmentally Sustainable Development: Proceedings of the Third Annual World Bank The Ecology andManagement ofNon-Timber Forest Resources. Conference on Environmentally Sustainable Development. Ismail Charles M. Peters. World Bank Technical Paper No. 322. ISBN Serageldin and Alfredo Sfeir-Younis, editors. Environmentally 0-8213-3619-3. $10.95 Sustainable Development Proceedings Series No. 10. ISBN 0- 8213-3549-9. $18.95 Costs, Benefits, andFarmerAdoption ofAgroforestry: Project Experience in CentralAmerica and the Caribbean. Dean Current, Ernst Lutz, and Sara Scherr. World Bank Environment Paper No. 14. ISBN 0-8213-3428-X. $13.95 50 A Conservation Assessment of the Terrestrial Ecoregions ofLatin Social Issues America and the Caribbean. Eric Dinerstein, David M. Olson, Douglas J. Graham, Avis L. Webster, Steven A. Primm, Marnie World Bank Participation Sourcebook. The World Bank. ISBN P Bookbinder, and George Ledec. ISBN 0-8213-3295-3. 0-8213-3558-8. $15.95 $29.95. Published in association with the World Wildlife Fund. Participation in Practice: The Experience of the World Bank and Other Stakeholders. Jennifer Rietbergen-McCracken. World Energy and Pollution Management Bank Discussion Papers. ISBN 0-8213-3684-3. $8.95 Air Pollution from Motor Vehicles: Standards and Technologies Livable Citiesfor the 21st Century. World Bank Directions in for Controlling Emissions. Asif Faiz, Christopher S. Weaver, and Development. ISBN 0-8213-3812-9. $7.95 Michael Walsh, with contributions by Surhid Gautam and Lit- Mian Chan. ISBN 0-8213-3444-1. $50.00 Water Resource Management Rural Energy and Development: Improving Energy Suppliesfor Two Billion People. African Water Resources: Challenges and Opportunitiesfor World Bank. Development in Practice Series. ISBN 0-8213- Sustainable Development. Narendra P. Sharma, Torbjorn 3806-4. $11.95 Damhaug, Edeltraut Gilgan-Hunt, David Grey, Valentina Okaru, and Daniel Rothberg. World Bank Technical Paper No. Best Practicesfor Photovoltaic Household Electrification 331. ISBN 0-8213-3711-4. $9.95 Programs: Lessonsfrom Experiences in Selected Countries. Anil Cabraal, Malcolm Cosgrove-Davies, and Loretta Schaeffer. Guidelinesfor Integrated Coastal Zone Management. Jan Post World Bank Technical Paper No. 324. ISBN 0-8213-3728-9. and Carl Lundin. Environmentally Sustainable Development $8.95 Studies and Monographs Series No. 9. ISBN 0-8213-3735-1. $7.95 How To Order Phone: (703) 661-1580 Fax: (703) 661-1501 Mail: The World Bank, Box 7247-8619, Philadelphia, PA 19170-8619, U.S.A. Internet: bookint@worldnet.att.net. For rush service you may place credit card orders by telephone or by fax. Shipping and handling charges for books and electronic products are US$5.00 per order. 51 appendix World Bank Environmental Projects July 1986-June 1996 Environment and the World Bank Group The World Bank, the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), promotes economic and social progress in developing nations by helping raise productivity so that people live better and fuller lives. This is also the aim of the International Finance Corporation (IFC), which works closely with the private sector and invests in commercial enterprises in developing countries, and the Multilateral Investment Guarantee Agency (MIGA), which encourages direct foreign investment in developing countries by protecting investors from non-commercial risk. Collectively, the World Bank, the IFC, and MIGA are known as the World Bank Group. Of the four institutions, the IBRD, established in 1945, is the oldest and the largest. The IBRD is owned by the governments of 178 countries that have subscribed to its capital, and makes loans only to creditworthy borrowers. Assistance is provided only to those projects that promise high real rates of economic return to the country. Since 1960, the International Development Association has provided assistance to poorer developing countries on terms that bear less heavily on their balance of payments than IBRD loans. IDA's assistance is concentrated on the very poor countries--mainly those with an annual per capita GNP of less than $696 (in 1993 US dollars). Membership in IDA is open to all IBRD members, and 158 have joined. Although IDA is legally and financially distinct from the IBRD, it shares the same staff, and the projects it assists have to meet the same criteria as do the projects supported by the IBRD. The IFC was established in 1956. Its function is to assist the economic development of developing countries by promoting growth in the private sector of their economies and helping to mobilize domestic and foreign capital for this purpose. The IFC currently has 165 members. Legally and financially, the IFC and the World Bank are separate entities. In its project financing role, the IFC provides loans and makes equity investments. MIGA, the newest member of the World Bank Group, was established in 1988. Its principal responsibility is promotion of investnent for economic development in member countries through guarantees to foreign investors against losses caused by non-commercial risks and through advisory and consultative services to members countries to assist in creating a responsive climate and information base to guide and encourage the flow of capital. MIGA is an entity separate from the World Bank. MIGA currently has 128 members. The World Bank invests in projects with primarily enviromnental objectives (see page 3), in addition to its regular investment portfolio. All proposed investments are screened for potential environmental impacts and categorized accordingly (see page 37). The World Bank is also an implementing agency of the Global Environment Facility (GEF) and the Multilateral Fund for the Montreal Protocol (MFMP), two important global financing mechanisms which assist developing countries address global environmental concerns (see pages 51 and 63). 55 World Bank Group Portfolio of Projects to Protect the Environment The following table lists projects with primarily environmental objectives that were approved by the Bank's Board of Executive Directors between July 1, 1985 and June 30, 1996 (FY86-96), all of which were under implementation during FY96 (July 1, 1995 through June 30, 1996). Each project listing indicates whether the project is being financed through an International Bank for Reconstruction and Development (IBRD) loan, an International Development Agency (IDA) credit, or both; the fiscal year (July-June) in which the project was approved; the Task Manager; the Bank's financial contribution; the total estimated project cost; and the country's implementing agency. The difference between Bank's commitment and total project cost is financed by domestic public, multilateral, bilateral and/or NGO sources. 57 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Africa Angola Lobito-Benguela Urban Environment Rehabilitation (Approved FY92) $46 million, IDA This project's main objectives are to restore water supply and sanitary services; help in $59 million, total project cost eliminating life-threatening epidemics; improve the health of the population; and halt the degradation of the physical environment. The project will also improve living conditions in Implementing Agency: Province of Benguela squatter settlements by providing access to clean water and improved latrines; strengthen institutions responsible for project management, operation management and control of urban services and the environment by providing technical assistance, logistical support, and training; and assist in policy reform through water and sewer tariffs, land registration, and environmental Task Manager: Morrell studies. Benin Natural Resources Management (Approved FY92) $14 million, IDA This project combines institution-building activities on a national level with site-specific field $24 million, total project cost activities of three types: management of three gazetted forests; watershed development at four pilot sites including land tenure operations and research-development activities; and wildlife Implementing Agency: Ministry of Rural management at two pilot sites on the border of the national parks and hunting areas. Development Task Manager: Topa Benin Environmental Management (Approved FY95) $8 million, IDA Support for this project allows the govemment to develop the national environmental $9 million, total project cost management capacity required to implement and monitor effectively the priority actions identified in the National Environmental Plan (June 1993). It supports planning and implementation of policies and programs; development of information systems; and promotion of Implementig Agency Natonal the integration of environmental concems in socioeconomic development plans. In addition, it seeks to improve the awareness and understanding of environmental issues of various segments of the population and fosters the integration of environmental considerations in the education system. Task Manager: Brizzi Burkina Faso Environmental Management (Approved FY91) $17 million, IDA This project seeks to reverse the process of natural resources degradation in order to secure $25 million, total project cost sustainable agricultural growth, restore biodiversity, and manage forests and wildlife. The first five-year phase of a long-term national program, it would identify, design and implement Implementing Agency: Ministry of Agriculture community land management plans in two components in three provinces located in different ecological zones, and in two provinces for protected forest areas and the lands of surrounding communities. Supporting components include: technical support for ongoing natural resources management operations in 18 provinces; establishment of national environmental and project Task Manager: Lewis impact monitoring systems; human resources development; and management and studies. 59 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Burkina Faso Urban Environment (Approved FY95) $37 million, IDA This project provides for the rehabilitation or improvement of priority primary drainage networks, $50 million, total project cost the development of piped sewerage and on-site sanitation, the closing or upgrading of existing landfills and construction of new landfills, and the improvement of current toxic and industrial Implementing Agency: Ministry of Public solid waste management systems. The project also aims to strengthen the central govemment's Works, Housing and Urban Planning; Office capacity for urban management. National de l'Eau et de l'assainissement Task Manager: Diou Burundi Energy Sector Rehabilitation (Approved FY91) $23 million, IDA The objectives of the project are to promote rational energy policies and the efficient management $23 million, total project cost of energy resources. Specifically, the project aims to: improve energy efficiency through reforms in the pricing structure of electricity, petroleum products and woodfuels; develop efficient Implementing Agency: Ministry of institutions in the sector and improve the quality of public investment; expand access to Energy/Rigie de Distribution deau et d electricity; and support charcoal efficiency and improved stove programs. electricite (REGIDESO) Task Manager: Senou Central African Republic NaturalResourceManagement (ApprovedFY90) $19 million, IDA The main objective of the project, which will constitute the first phase of a longer-term program, $34 million, total project cost is to reinforce capabilities to protect and manage forest and wildlife resources on a sustainable basis, mainly through further improvements in the legislative framework and fiscal/incentive Implementing Agency: Forest Ministry system for the relevant sector; restructuring of institutions and strengthening of their capacity to effectively implement field controls and promote environmental protection; improving upon knowledge of existing forest resources, as a basis for sound planning; improving upon agro- forestry systems in the forest zone; and support to the protection and management of a dense Task Manager: Heimo forest reserve. Cote D'Ivoire AbidjanEnvironmentalProtection (ApprovedFY90) $21.9 million, IBRD The objectives of the project were to reverse the deterioration in the Abidjan environment due to $49.9 million, total project cost the dumping of urban wastes and industrial effluents into the Ebrie lagoon by building waste water disposal facilities; establishing sound environmental legislation; monitoring pollution; and Implementing Agency: Ministry of Defense ensuring the sustainability of the sewerage system. Studies included a master plan of Abidjan's and Marine / Directorate for Large Public sanitation, drainage and environmental protection systems and design of a follow-up project. Works Training for staff responsible for the implementation of the project was also included. Task Manager: Verspyck Cote D'Ivoire Forestry Sector (Approved FY90) $81 million, IBRD The project will identify and demarcate about 1.5 million ha of gazetted rain forest; support the $147 million, total project cost preparation of management plans for an additional 700,000 ha; improve management of the forest/agriculture interface by establishing buffer zones around protected forest areas and Implementing Agency: Ministry of increasing use of modem inputs to stabilize agriculture. Moreover, the Government's Emergency Agriculture, Waters and Forestsl Societe de Program calls for 25,000 ha of new industrial plantations to be established during the next five Developpement des Plantations Forestieres years; and the provision of infrastructure and equipment for the surveillance and protection of the Tay, Camoe and Marahoue Parks. It will finance infrastructure equipment, staff and institutional Task Manager: Tall support for the Forestry Training Schools in Bouafle and Banco. 60 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Gabon Forestry and Environment (Approved FY93) $23 million, IBRD This project represents the first phase of a long-term effort toward promoting the rational use of $38 million, total project cost the natural resource base. It aims to restructure and strengthen the capacity of the Ministry of Waters and Forestry and the Ministry of Environment for planning, monitoring, and supervision: Implementing Agency: Ministry of make forestry and environment training more applicable to private sector and conservation needs; Forestry/Ministry of Environment support forestry and environment research activities; prepare and implement a management plan in the depleted coastal zone area; and support govemment creation and maintenance of wildlife reserves. Task Manager: Valencia Gambia CapacityBuildingforEnvironmentalManagement-TechnicalAssistance (ApprovedFY94) $3 million, IDA This project aims to develop an effective system for environmental planning and management $5 million, total project cost within the National Environmental Agency (NEA) and other relevant agencies. It supports the institutional and policy development of the Gambia Environmental Action Plan; development of a public awareness strategy; electronic and print media campaigns; an environmental information Implementig Agency Natonal and monitoring system; and development of a disaster awareness and contingency planning Environmental Agency ~~system. Task Manager: Powers Ghana Forest Resource Management (Approved FY89) $39 million, IDA The project is a policy reform, management strengthening and institution building operation $65 million, total project cost aimed at: managing industrial forestry production and export eaming in accordance with sustained yield policy; promoting conservation and tree planting on farms to counteract fuelwood Implementing Agency: Ministry of Lands and shortage and ecological deterioration; and strengthening the sector institutions to enable them to Natural Resources (MLNR) carry out the necessary policy reforms, increase revenue generation, and improve protection and management of the forest and wildlife resources. Task Manager: Epworth Ghana Environment Resource Management (Approved FY93) $18 million, IDA This project supports implementation of the National Environmental Action Plan (NEAP) by $36 million, total project cost strengthening institutional and technical capabilities for effective environmental monitoring, policy formulation, and coordination. It includes the development of an Environmental Resource Implementing Agency: Environmental Management System for central and regional coordination, regulatory, and tenurial functions; the Protection Councy: EEPCt development of methodologies to minimize land degradation through community planning and Protection Council (EPC) management; and the demarcation and management of five coastal wetlands sites (including inventory, monitoring, public education programs, and studies). Task Manager: Epworth Guinea Forestry & Fisheries Management (Approved FY90) $8 million, IDA The project's objective is to establish sound institutions for managing forestry and fisheries, as $23 million, total project cost well as to launch priority operations. In the case of forestry, the project would strengthen the National Forestry Department within the Ministry of Agriculture and Animal Resources and in Implementing Agency: DEFC/Ministry of several regional forest departments so that they progressively become more effective and begin Agriculture and Animal Resources (MARA) needed forestry management work. In the case of fisheries, the project would reinforce the State and the State Secretariat of Fisheries (SEP) Secretariat for Fisheries in the monitoring, control and surveillance of fishing fleets in order to increase the sector's economic contribution and to preserve fish stocks. Task Manager: Cassagne 61 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Kenya Forestry Development (Approved FY91) $20 million, IDA The objective of the project is to conserve and protect indigenous forest resources, soil, and water $65 million, total project cost on forest, farm and range land; provide technical assistance in forestry extension and integrated agroforestry farming systems; prepare a forestry development master plan; and strengthen Implementing Agency: Government of Kenya planning and implementation capacities of forestry agencies. Task Manager: Ryan Kenya Protected Areas and Wildlife Services (Approved FY92) $61 million, IDA This project comprises the development of Kenyan Wildlife Services's (KWS) institutional $143 million, total project cost capacity through material support, technical assistance, and a staff training program; rehabilitation of park and reserve infrastructure; establishment of a Community Wildlife Program; Implementing Agency: Wildlife Service expansion of the wildlife education program; strengthening of KWS's planning capacity by financing the preparation of integrated five-year development plans for regional wildlife parks and reserves; preparation of a national wetlands master plan and technical assistance to improve management of marine parks and reserves; revitalization of KWS's scientific research; and Task Manager: Kiss maintenance of the effectiveness of the Wildlife Protection Unit by financing vehicles and facilities. Madagascar Forests Management and Protection (Approved FY88) $7 million, IDA This project was designed to help preserve ecosystems and biological species in Madagascar and $23 million, total project cost assist in implementing the National Conservation Strategy and Forestry Policy, adopted in 1984- 85. The project aimed to reinforce the Forestry Department through institutional strengthening Implementing Agency: Government /Ministry and human resource development, and to support forest management, private reforestation, of Livestock, Fisheries and Forestry (MPAEF)/ integrated forest valley development, seed collection and research programs; natural forest Mangoro Forest Company (FANALMANGA) protection of the Ankarafantsika, Lokobe, Zahamena and Tsaratanana forest reserves; the creation of a new National Park in the Andasibe region; and the reorientation of the Mangoro plantation Task Manager: Bosquet (Fanalamanga). Madagascar Antananarivo Plain Development (Approved FY90) $31 million, IDA This project finances the improvement of the living conditions of the low-income population in $69 million, total project cost the low-lying areas of Antananarivo and Antananarivo Plain, and increases the productivity of the industries and of the farms in the plain. The project includes: flood protection along the Ikopa Implementing Agency: Government/Ministry River; flood warning systems; drainage structures on the plain; a pumping station to evacuate of Agriculture, Faritany (Province) and water from the plain; construction of an irrigation canal; rehabilitation of irrigation systems; Municipality of Antananarivo rehabilitation and expansion of the sewerage system; and institution building, including privatization of municipal services. Task Manager: Wildt Madagascar Environment Program (Approved FY90) $26 million, IDA This program aims to: protect and manage the most threatened biodiversity and natural $86 million, total project cost ecosystems, and develop surrounding areas; support soil conservation, agroforestry, reforestation and rural development; support mapping and the establishment of a geographic information Implementing Agency: Ministries of Economy system; establish clear boundaries for protected areas and improve land security through titling; and Planning, Livestock, Fisheries and Forests, provide environmental training, education, and awareness; encourage research on land, coastal Agriculture, and Scientific Research. and marine ecosystems; and support institutional building, establishing EA procedures, strengthening an environmental database, monitoring and evaluation procedures, and studies. Task Manager: Simeon 62 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Malawi Fisheries Development (Approved FY91) $9 million, IDA This project increases fish production as a means of improving nutrition and protein supply for $16 million, total project cost the population; generates additional off-farm employment and income to help reduce poverty among women and the rural population; conserves the natural resource base of Malawi's water Implementing Agency: Department of Fisheries bodies and prevents environmental degradation; improves the institutional capacity for fisheries sub-sector policy formulation, research, planning, monitoring and control; improves management and conservation of lake resources; strengthens regulatory capacity of the fisheries department; and establishes a lake resources management program. Task Manager: Fullerton Mali Natural Resource Management (Approved FY92) $20 million, IDA This project provides for village-level investments to halt degradation of soil, water, and natural $32 million, total project cost vegetation; establishes infrastructure with immediate and direct impact on the communities' quality of life; modifies the boundaries of the Baoule National Park and implements its long-term Implementing Agency: Ministry of management plan; supports government services to help villagers manage community natural Environment, Rural Development & Livestock resources; and supports the newly created Planning, Monitoring and Evaluation Department within the Ministry of Agriculture, Livestock and Environment in establishing an environmental information system. Task Manager: Hall Mauritania Water Supply (Approved FY92) $11 million, IDA This project includes the monitoring of salt water intrusion in the Trarza aquifer and a study to $15 million, total project cost establish a groundwater management plan for the new Tenadi wellfield, further from the advancing saline front; a program for leak detection; a repair and rehabilitation program of the Implementing Agency: National Society of distribution network; upgrading of the existing installations; an extension of the distribution Electricity (SONELEC) system to the northern part of the town in order to supply some of the poorest parts of the population with water; and studies and technical assistance to prepare future parts of the program. Task Manager: Jannssens Mauritius Environmental Monitoring and Development (Approved FY91) $12 million, IBRD This project initiates a national physical development plan to guide land use, infrastructure $21 million, total project cost investment, and environmental management; establishes laboratories and an industrial park with industrial pollution control; develops a solid waste management plan; supports integrated pest Implementing Agency: Government of management; encourages marine conservation; and creates a national park. Mauritius Task Manager: De Naurois Niger Energy (Approved FY88) $32 million, IDA The project promotes firewood conservation, substitution of energy resources and more effective $79 million, total project cost management of natural forest cover. It also promotes the development of renewable energy technologies and the conservation of electric power; provides electricity at minimal cost; and Implementing Agency: Ministry of Agriculture upgrades local capabilities to administer petroleum exploration. Task Manager: Floor 63 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Niger Natural Resources Management (Approved FY96) $26.7 million, IDA This project is the first in a series designed to stop and reverse current natural resource $42.2 million, total project cost degradation. This will help secure sustainable agricultural production and growth in the region, and improve living conditions of the rural population. Selected rural communities in different Implementing Agency: Minister de agro-ecological zones will be provided with skills training and resources during the projecfs l'A-riculture et de n'Elevage design and implemention. The Government will also be able to build up its national capacity to DAgriculture et de lElevage support natural resource management initiatives and design a comprehensive set of national policies and strategies. Task Manager: Oka Nigeria Environmental Management (Approved FY92) $25 million, IDA The project aims to strengthen Nigerian environmental organizations, and assists them in $38 million, total project cost implementing their programs; establishes a program of data collection that enables the government to measure levels of environmental degradation, and be aware of environmental Implementing Agency: Ministry Hacienda, trends over time; and completes a series of sector investigations and feasibility studies leading to Ministry of Agriculture soundly conceived programs (including capital investments) necessary to redress the prevailing Ministry of Agriculture degradation of the nation's environment. Task Manager: Swayze Seychelles Environment and Transport (Approved FY93) $5 million, IBRD This project aims to improve the basis for sustained growth of tourism while preserving or $7 million, total project cost restoring environmentally sensitive areas. The project would also support implementation of the Seychelles Environmental Management Plan, focusing on programs in resource management, Implementing Agency: Ministry of biodiversity conservation, and marine pollution control; restoration and preservation of the Environment, Economic Planning, and ecosystem of Aldabra atoll; protection of endangered sea turtles; and studies of waste reception External Relations; Seychelles Island facilities at the Port of Victoria. The project also includes the preparation of water resources study and management, outer islands and marine resources management, and an organizational Task Manager: Teymourian review of the country's Division of Environment. Sudan Southern Kassala Agriculture (Approved FY89) $15.6 million, IDA The project aimed to increase sustainable crop and livestock production, improve environmental $35 million, total project cost management; and provide for greater economic self-reliance of refugees. Production would be increased through project components directed toward higher crop yields, higher livestock off Implementing Agency: PMU take and better infrastructure. Environmental improvements would result from support for land use planning and monitoring, sound farming practices, reforestation and forest management. Task Manager: Ahuja Tanzania Forest Resources Management (Approved FY92) $18 million, IDA This project aims to improve forest resource management, and is the first step in implementing $26 million, total project cost the Tanzania Forest Action Plan (TFAP), thereby signalizing long-term commitment to forestry development. The project specifically defines the policies needed for the sustainable development Implementing Agency: Ministry of Natural of the sector, and develops and puts in place the instruments needed for their execution; builds Implemcen/Toring agenc iNistury Resources capacity in the institutions in charge of forestry, land tenure and land use planning; and develops appropriate forestry management techniques by testing different pilot programs for managing natural woodlands and for increasing tree planting by farmers. Task Manager: Ryan 64 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Togo Lome Urban Development (Approved FY94) $26 million, IBRD This project promotes improvement of urban enviromental management, environmental and $29 million, total project cost sanitary conditions of the Be Lagoon and community development through capacity building of institutions in the area of urban management. Activities to improve the health of the Be Lagoon Implem:AAAU Agetur (Urban includes antierosion works, dredging of the Be Lake, drainage of two pilot zones, and the disposal Implementing Agency: Postur (Urban and treatment of wastes; community participation through training in environmental management; Works Agency) Togo T, Post, and Telephone construction of public latrines; miniprojects aimed at improving the urban environment; and improvement of transport and traffic conditions. Task Manager: Larbi Uganda Environmental Management Capacity Building (Approved FY96) $11.8 million, IDA Supporting the first 5-year phase of a longer-term national environmental program, the objectives $23 million, total project cost of this project are to build capacity for environmental management at the national, district, and community levels through the establishment of the National Environmental Management Implementing Agency: Ministry of Natural Authority (NEMA); to strengthen selected districts; and to initiate a process for communities to Resources address local natural resource degradation problems. Task Manager: Evans East Asia / Pacific China Ship Waste Disposal (Approved FY92) $15 million, IDA This project finances activities which will establish data on international ship traffic and waste $64 million, total project cost types by designing and implementing a pilot interport ship waste monitoring system to facilitate enforcement; prepare an accident contigency plan for each port; initiate a Large Marine Implementing Agency: The Port Authorities of Ecosystems monitoring program for the Yellow Sea; undertake a study of the treatment of Dalian, Tianjin, Shanghai, Ningbo, Guangzhou chemically contaminated water; provide and promote coordination among the authorities to and Xiamen upgrade environmental monitoring at the ports; and provide consultants' services and training related to the project. Other components define, design and provide landbased collection and Task Manager: Scurfield disposal facilities; and establish or upgrade environmental monitoring and enforcement capabilities of port authorities. China Tianjin Urban Development and Environment (Approved FY92) $100 million, IDA This project supports technical assistance and training to improve project planning and $195 million, total project cost evaluation, budgeting and management, and monitoring of urban development and infrastructure. The project also supports technical assistance and training in sub-sectoral management, including Implementing Agency: Tianjin Municipal solid waste disposal and public transport management. It supports physical works to improve Govemment drainage, sewerage, solid waste management, roads, traffic management, and public bus operations. It also includes the resettlement of households as required for the physical works, which result in improved housing and environmental health conditions. Task Manager: Choi 65 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 China Beijing Environment (Approved FY92) $45 million, IBRD This project's objectives are to assist the Beijing Municipality (BM) in improving its $80 million, IDA environmental planning and management capabilities, and to plan and carry out specific pollution $299 million, total project cost abatement efforts in the municipality. The project is designed to demonstrate cost-effective Implementing Agency: Beijing Municipality interventions in the areas of water, air, hazardous waste and solid waste pollution; improve (BM) investment planning; establish effective measures for regulatory control; set up requirements for 'BM) the efficient operation and maintenance of communal facilities for pollution control and abatement; and includes methods to recover costs from the users of these facilities. Task Manager: Choi China Environment TechnicalAssistance (Approved FY93) $50 million, IDA This project improves the coordination of environmental monitoring and ecological research; $70 million, total project cost promotes cleaner industrial production and technology to prevent pollution and minimize waste; improves economic policy instruments for pollution control, specifically the pollution levy Implementing Agency: National system; and strengthens the system for environmental assessment. Environmental Protection Agency (NEPA) and Chinese Academy of Sciences (CAS) Task Manager: Anderson China South Jiangsu Environment Protection (Approved FY93) $250 million, IBRD This project assists authorities in strengthening environmental planning and management and in $584 million, total project cost carrying out initiatives in the regional environmental strategy. It provides a line of credit for industrial pollution control and environmental management subprojects; supports the construction Implementing Agency: Jiangsu Province of municipal facilities for urban wastewater management; establishes solid- and hazardous- waste management and registration centers, emergency response centers, and hazardous materials storage and transshipment facilities; and provides technical assistance and training for the institutes responsible for environmental protection. Task Manager: Shum China Forest Resource Development and Protection (Approved FY94) $200 million, IDA This project seeks to develop institutional capacity through preparation of national management $356 million, total project cost plans, related technical assistance, preparation of policy studies, and strengthening of information and research services on key issues in biodiversity conservation. Biodiversity conservation will Implementing Agency: Ministry of Forestry be enhanced by establishing protected forests and nature reserves; developing afforestation models that promote biodiversity and reduce disease damage; promoting development of canopy levels; and developing multitiered vertically stratified canopies to minimize soil erosion and water runoff. Task Manager: Scobey China Loess Plateau Watershed Rehabilitation (Approved FY94) $150 million, IDA This project aims to reduce erosion and inflows of sediment to the Yellow River by encouraging $259 million, total project cost sustainable crop production on high-yielding level farmland; planting the slope lands with a variety of trees, shrubs, and grasses for land stabilization; afforestation of degraded agricultural Implementing Agency: Ministry of Water lands in the area; and improved livestock management. It will also provide institutional support Resources such as training, technological transfer and research to the Upper and Middle Reach Bureau to strengthen its capacity as a leading agency for soil and water conservation. Task Manager: Voegele 66 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 China ShanghaiEnvironment (ApprovedFY94) $160 million, IBRD This project supports financial and policy initiatives and planning and management reforms, $457 million, total project cost supported by an investment program of environmentally oriented capital works and institutional strengthening. The financial and policy initiatives developed as part of project preparation would Implementing Agency: Shanghai Municipaity focus on improving operational efficiency of urban services; mobilizing resources through tariff (SM) increases and service charges; and long-term environmental planning and investment programs. Task Manager: Read China Liaoning Environment (Approved FY95) $110 million, IBRD This project assists the government in reducing pollution and improving operational efficiency $351 million, total project cost through the upgrading of technology, minimization of waste, and reuse of resources. It strengthens local capabilities in monitoring and enforcing environmental regulations and Implementing Agency: Liaoning Province corporate sewerage utilities, and establishes a sound cost-recovery policy for pollution abatement (LP) and the Municipalities of Anshan, Bendi services. It also includes an environmental protection fund for eligible pollution control (alP)and tusheunicipalitxie ofd Jinshan Bend, subprojects of industrial enterprises and enhances institutional development through technical Dalian, Fushun, Jinxi, and Jinzhou assistance and training. An additional component finances the rehabilitation and conservation of Task Manager: Read cultural heritage sites. China Yunnan Environment (Approved FY96) $135 million, IBRD The project is part of a phased development program of Yunnan Province (YP) to improve $25 million, IDA environmental conditions and sustain urban services management. The principal objective is to $310 million, total project cost provide a sustainable environmental framework for the economic and social development of the Implementing Agency: Municipal Province, while providing a conducive foundation for industrial growth. Specific objectives Governments include: institutional strengthening for pollution control, and municipal water, wastewater, solid waste and nightsoil management; support for the improvement of lakes to allow the water to be used for potable supply, industry or agriculture; investments in pollution control and municipally- Task Manager: Read provided urban environmental services; and a comprehensive approach to management and financing of urban environmental infrastructure investments. China Chongquing Industrial Reform and Pollution Control (Approved FY96) $170 million, IBRD The project supports the Bank's lending strategy in China within a policy framework that focuses $478.1 million, total project cost on enhanced industrial pollution control linked to enterprise reform and technological restructuring. The project helps the Chongquing Muncipality establish a strategy and prepare a Implementing Agency: Chongqing Municipal long-term plan to achieve a major reduction in pollution for the whole industrial sector by Project Management Office increasing the effectiveness of environmental regulatory frameworks and pollution management capacity; reduce pollution and restructure productive facilities from iron and steel industries; and initiate a pilot effort to assist industrial enterprises in other industrial sectors to restructure their Task Manager: Hughes productive facilities, control pollution and transform themselves into modem corporations. China Hubei Urban Environmental Protection (Approved FY96) $125 million, IBRD This project strengthens and finances investment in wastewater and municipal solid waste $25 million, IDA management, as well as nightsoil handling and disposal; helps to abate industrial air pollution; $370 million, total project cost and improves planning and financing of urban environmental services in the cities of Wuhan, Implementing Agency: Hubei Finance Bureau Huangshi, Xiangfa, and Yichang. Municipal Govemment Task Manager: Travers 67 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 China SecondShanghaiSewerage (ApprovedFY96) $250 million, IBRD This project follows up the first phase of Shanghai Municipality's development program to $633.3 million, total project cost improve environmental conditions and management. Specific objectives of the project are to enbance wastewater and stormwater management through expanding wastewater collection, Implementing Agency: Shangai Municipal pretreatment and disposal capacity, and stormwater drainage facilities; reduce urban pollution Sewerage Company, Ltd. impact while facilitating pollution control; improve wastewater utility financial and operational management; and strengthen sector institutions through training, feasibility studies, and future investment project preparation. Task Manager: Read Indonesia Forestry Institutions and Conservation (Approved FY88) $30 million, IBRD This project's primary objective strengthens planning, management and conservation in the $63 million, total project cost Forestry sector, maximizing long-term contributions from forest resources. This prepares the foundation for future development through which the Bank could support subsequent forestry Implementing Agency: Ministry of Forests projects. Another objective is to address critical conservation needs which cannot be postponed due to the danger of an irreversible loss of productive lands, including some of Indonesia's most valuable nature reserves. Task Manager: Douglas Indonesia Yogyakarta Upland Area Development (Approved FY91) $16 million, IBRD This project improves upland productivity of the Yogyakarta region through conservation $25 million, total project cost stabilization measures; provides on-farm technology displays covering vegetative conservation (such as fodder legumes to stabilize slopes), and alley-cropping to strengthen the technical basis Implementing Agency: Directorate General of for intensive microwatershed development in the uplands. Regional Development (BANGDA), Ministry of Home Affairs Task Manager: Feder Indonesia BAPEDAL Development Technical Assistance (Approved FY92) $12 million, IBRD The primary objective of this project is to assist the Government of Indonesia (GOI) in $15 million, total project cost implementing the Five Year BAPEDAL Development Plan, through strengthening the institutional capacity and role of BADEPAL and other agencies responsible for environmental Implementing Agency: Environmental Impact management and pollution control; and designing and implementing pollution control measures Management Agency at the central and regional levels. Task Manager: Fisher Indonesia Integrated PestManagement (Approved FY93) $32 million, IBRD This project promotes environmentally sound crop production systems through a five-year $53 million, total project cost program to train at least 800,000 farners in the theory and application of Integrated Pest Management (1PM); supports occupational health studies and field investigations; and strengthens I e A y i o Iculture the regulatory and environmental management framework, primarily for IPM policies to reduce IleiAn:isy Aruu the risks associated with the manufacture, distribution, and application of pesticides. Task Manager: Ganguly 68 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Indonesia Surabaya Urban Development (Approved FY94) $175 million, IBRD This project improves urban environmental quality by assisting the local govemment's capacity to $618 million, total project cost plan, implement, and operate infrastructure in an environmentally sound fashion and by enhancing community participation through management, staffing, and the financial ability of the Implementing Agency: Surabaya Municipality government water authority for water supply and human waste disposal. It also protects and improves water quality in the Kali Surabaya; improves onsite wastewater disposal; provides offsite sewerage; demonstrates and evaluates the potential for conventional and low-cost offsite sanitation and cost recovery in human waste services; and improves waste collection and landfill Task Manager: Rotner disposal techniques. In addition, the project finances mechanisams that will protect resettlers' rights. Indonesia National Watershed Management and Conservation (Approved FY94) $57 million, IBRD This project aims to raise the living standards of poor upland farmers by improving and restoring $488 million, total project cost the productive potential of the resource base, while at the same time improving watershed environmental quality and protecting downstream watershed resources. It provides institutional Implementing Agency: Ministry of Forestry strengthening through improvement of planning, management, and natural resource information (MOF), Ministry of Agriculture (MOA), and systems; supports the creation of a multidisciplinary upland research program, and training and Ministry of Home Affairs (MOHA) extension; develops a watershed on West Java; and invests for reforestation. Task Manager: Van de Poll Indonesia Kerinci-Seblat Biodiversity Integrated Conservation and Development (Approved FY96) $19.1 million, IBRD This project aims to protect biodiversity, prohibit habitat fragmentation through protection and $47.2 million, total project cost management, and include the involvement of local communities in Kerinci-Seblat National Park. It develops an ICDP model to reconcile conservation, and regional and district development, that Implementing Agency: Ministry of Forestry follows a two pronged approach to stabilize the boundary and protect biodiversity within the and Home Affairs, and local goverments in Park, and to enhance the livelihoods of poor households by providing them with alternative andfHour pArticipatirs,ang provinces governopportunities consistent with conservation. Its design meets this objective through institutional strengthening in integrated planning, coordinated implementation and regular monitoring and Task Manager: Van de Poll enforcement; building institutional capacity through increased staffing and in-service training; and resource management. Korea, Republic of Pusan and Taejon Sewerage (Approved FY92) $40 million, IBRD This project supports the Government's 1990-96 National Wastewater Treatment Plan to improve $130 million, total project cost the water quality in Korea's rivers and coastal waters by constructing sewage treatment plants in two of the largest municipalities. Under the project, sewage treatment plants will be constructed Implementing Agency: Ministry of or expanded in Pusan and Taejon. The project includes the construction of the first phase of Construction Yongho sewage treatment plant in Pusan, a sewage pumping station and 11.4 km of interceptors to carry sewage to the plant; and the second phase of Wonchon Dong treatment plant in Taejon and 11.9 km of interceptors to double existing capacity upon completion. Task Manager: Pancaroglu Korea, Republic of Environmental Research and Education (Approved FY93) $60 million, IBRD This project provides specialized equipment, training, and library materials to upgrade the $97 million, total project cost capacity of twelve national agricultural colleges and nine national veterinary colleges to undertake research into key environmental problems; reinforces the colleges' programs to Implementing Agency: Ministry of Education strengthen professional training in environmental fields; and supports improved environment- (MOE) related research and teaching programs. Task Manager: Rees 69 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Korea, Republic of Kwangju and Seoul Sewerage (Approved FY93) $110 million, IBRD This project expands wastewater treatment facilities in Kwangju and Seoul; reduces pollution in $530 million, total project cost two major rivers by supporting institutional development for wastewater management; and promotes innovative technological and policy initiatives for water conservation. The projects Implementing Agency: Seoul Metro objectives include assistance in cleaning the Yongsan and Han Rivers in order to reduce health Goverrment hazards and attain water quality needed for the cities' population and for those using water downstream; focusing the attention of the water agencies on conservation to reduce wastewater; encouraging the cities to develop self-financing efficiency for wastewater activity; and supporting Task Manager: Pancaroglu technological and institiutional improvements in the sector. Korea, Republic of Environmental Technology Development (Approved FY94) $90 million, IBRD This project strengthens selected national research institutes to adequately address environmental $156 million, total project cost issues and to undertake environmental research and design activities. It provides institutional support to the policy and planning role of the Ministry of Environment by providing overseas Implementing Agency: Ministry of Education training, visiting experts, and library materials, as well as equipment and equipment-related (MOE) inputs and civil works to house the equipment. Task Manager: Rees Korea, Republic of Ports DeveL & Env. Improvement (Approved FY95) $100 million, IBRD This project provides comprehensive support for addressing environmental issues in port and $1107 million, total project cost harbor development. It also finances facilities to collect, manage, and treat ship waste and to remove timber- and fish-processing plants that cause air, noise, and traffic pollution; provides Implementing Agency: Korea Maritime & Ports training and technical assistance to strengthen the environmental capabilities of the Korea Maritime and Port Authority, and to a program which monitors pollution and ecosystem productivity in the Yellow Sea. Task Manager: Arnold Korea, Republic of Waste Disposal (Approved FY95) $75 million, IBRD This project assists the govemments in Pusan and Chunbak Province in addressing $305 million, total project cost environmental, institutional, and technological concems regarding wastewater and specified waste disposal, the health hazards of surface and groundwater contamination, and the reuse of Implementing Agency: Ministry of treated effluent. The Pusan waste disposal plant will ensure satisfactory management of most Construction hazardous waste substances generated in industries. Task Manager: Pancaroglu Laos, Peoples Democratic Rep. Forest Management and Conservation (Approved FY94) $9 million, IDA This project assists the introduction of a sustainable natural resource management system and $20 million, total project cost conservation of the country's forest resources through support of an institutional framework and the formulation of the regulatory framework for the forestry sector; implementation of national Implementing Agency: Department of Forestry programs on forest resource inventory and planning; sustainable forest management and (DOF) protection; establishment and management of protected areas; and provision of the necessary technical assistance and human resource development. Task Manager: Wong You Cheong 70 IBRDI/IDA Projects with Primarily Environmental Objectives Active FY96 Philippines Environment & Natural Resource Management (Approved FY91) $158 million, IBRD Aiming to preserve Philippines' biodeversity this project finances the re-establishment of natural $66 million, IDA resources where they have been degraded, and introduces sustainable land use practices. The $369 million, total project cost objectives are to determine what areas must be preserved and introduce a management system; Implementing Agency: Department of introduce user fees for public resources which discourage rent- seeking behavior; improve Environment and Natural Resources (DENR) enforcement of logging regulations; provide secure tenure rights to users in return for sustainable and Department of Agriculture (DA) resource use; provide extension services to upland populations; and establish mechanisms to support small-scale, community-based resource management and livelihood projects. Task Manager: Wiens Thailand Clean Fuels & Environmental Improvement (Approved FY95) $90 million, IBRD This project supports the reduction of air pollution attributable to petroleum fuels in Thailand by $370 million, total project cost assisting the government in meeting reformulated gasoline and diesel oil specifications and improving its refinery operations through the installation of appropriate facilities and equipment Implementing Agency: The Bangchak to reduce refinery emissions and ensure safety. Petroleum Public Company Limited (BPPCL) Task Manager: Farhandi Eastern Europe / Central Asia Cyprus LimassolAmathus Sewerage and Drainage (Approved FY90) $25 million, IBRD This project consists of a central sewage collection and treatment system which upgrades the $69 million, total project cost existing stormwater drainage system and provides technical assistance and training and equipment to SBLA. Related to the project are studies that will lead to re-use of the treated Implementing Agency: Sewerage Board of effluent and sludge from the project and the formulation of a rural sanitation strategy. Limassol-Amathus (SBLA) Task Manager: George Cyprus Southeast Coast Sewerage and Drainage (Approved FY92) $32 million, IBRD This project provides drainage and the first phase of a sewage system for Larnaca, and sewerage $103 million, total project cost systems for the communities of Ayia Napa and Paralinni. The project consists of central sewage collection, treatment, and disposal systems; the distribution of treated effluent for re-use; Implementing Agency: Larnaca Sewerage and upgrading the existing stormwater drainage system in Larnaca, and technical assistance and Drainage Board (LSBD), Ayia Napa Sewerage training and provision of related equipment to the sewerage boards. Board (ANSB), Paralimni Sewerage Board Task Manager: George 71 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Czech Republic Power and Environmental Improvement (Approved FY92) $246 million, IBRD This project improves power plant efficiency to reduce air pollution in northern Bohemia, and $246 million, total project cost health of the population; modernizes the transmission system; and facilitates interconnection of the CEZ and German power grids. These objectives will be accomplished in the context of Implementing Agency: CEZ and Sep overall reform of the energy sector. To this end, the project reduces total consumption of pollution-causing lignite through power plant efficiency improvements; curtails power plant S02 emissions by means of flu gas desulfurization; reduces dust and fly-ash pollution; increases the reliability, efficiency and economy of the CEZ transmission system; and assists in improving Task Manager: Wilberg investment planning and corporate management and organization. Estonia District Heating Rehabilitation (Approved FY94) $38 million, IBRD This project promotes energy efficiency and the economy by supporting the conversion and $65 million, total project cost replacement of small boilers for use of peat and wood, to be harvested and used in an environmentally sustainable manner; reduces wastewater in the district heating systems; installs Implementing Agency: State Energy new substations with regulators and heat meters; and strengthens and restructures the district Department heating institutions. Task Manager: Gochenour Estonia Haapsalu and Matsalu Bays Environment (Approved FY95) $2 million, IBRD This project improves water and wastewater treatment in Haapsalu and promotes management of $8.3 million, total project cost point and nonpoint source pollution in the catchment areas of Haapsalu and Matsalu Bays, with a view to reducing pollution in the Baltic Sea. It also supports the planning and management of Implementin Agency: Minecotourism and implementation of the management plan for the Matsalu State Nature Reserve. implementig Agency: Minstry of This project is part of the Bank's support for the Baltic Sea Environment Program. Task Manager: Soderstrom Latvia Liepaja Environment (Approved FY95) $4 million, IBRD This project includes water and wastewater investment components, which are complemented by $21 million, total project cost an environmental management component. It also restores and enhances water quality in the city of Liepaja and the northern portion of Lake Liepaja and promotes environmentally sustainable of development, of the coastal zone and protected areas in and around Liepaja, Ventspils, and Talsi. Implementig Agency: Minstry The project is part of the Bank's support for the Baltic Sea Environment Program. Environment Task Manager: Soderstrom Lithuania Klaipeda Environment (Approved FY95) $7 million, IBRD This project focuses on the city of Klaipeda. It improves water supply and sanitation services in $23.1 million, total project cost the city as well as the operational efficiency and management of the Klaipeda State Water Supply Enterprise; promotes environmentally sustainable management and development of the Kursiu Implementing Agency: Environment Lagoon and adjacent coastal areas. This project is part of the Bank's support for the Baltic Sea Protection DG Environment Program. Task Manager: Soderstrom 72 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Lithuania Klaipeda Geothermal Demonstration (Approved FY96) $5.9 million, IBRD The project comprises two components to optimize use of the available geothermal energy $18 million, total project cost resources in Klaipeda. A technical assistance and training component, is complemented by an investment component for implementation of the Klaipeda Geothermal Demonstration Plant. The Impl:Enterprise Geoterma Demonstration Plant component includes investments in production and injection wells, above Implementing Agency: Enterpnse Geotemma ground facilities and piping for the extraction and distribution system. The technical assistance componet includes: design of the equipment for extraction and transfer of geothermal energy; preparation of a drilling program; management support for Enterprise Geoterma; training; and Task Manager: Halldin supervision of the project's implementation. Lithuania Siauliai Environment (Approved FY96) $6.2 million, IBRD This project aims to control pollution from the Upper Lielupe River Basin, a pollution source in $22.9 million, total project cost the Baltic Sea, by promoting environmentally sustainable management and development and regional cooperation. The project improves the quality, reliability, and cost-efficiency of water Implementing Agency: Siauliai Water (SW), supply and wastewater services in the municipality; demonstrates financially sustainable and Ministry of Environmental Protection (MoEP) socially responsible provision of municipal services; and environmental quality monitoring programs and enforcement systems. Components include the rehabilitation of water and wastewater systems; construction of water treatment; completion of a wastewater treatment plant; Task Manager: Soderstrom and institutional strengthening and training. This is part of the Bank's support for the Baltic Sea Environment Program. Poland Environment Management (Approved FY90) $18 million, IBRD This project provides an umbrella framework for addressing the highest priority environmental $27 million, total project cost - concems in Poland, and for moving toward a decentralized system of management. Furthermore, it strenghtens environmental management by helping to establish the institutional, regulatory and Implementing Agency: Ministry of informational basis for immediate corrective actions and longer-term extensive investments Environment and Natural Resources supported through bilateral and multilateral assistance. It also reduces health risks, decreases economic costs from environmental degradation and improves evironmental quality. Support for these objectives is provided through financial and technical assistance, training and equipment. Task Manager: Schreiber Poland Energy Resource Development (Approved FY90) $250 million, IBRD This project improves the convertible currency earnings of Poland by increasing domestic $590 million, total project cost production of natural gas and encouraging energy conservation for all forms of energy and fuel substitution through energy price reform. It also contributes to a reduction of environmental Implementing Agency: Coal & Gas! Oil pollution related to energy use, and improves the competitive, regulatory, and financial Companies fframework of the sector entities by supporting the implementation of appropriate restructuring programs for the coal, gas, power, and heat sectors. Task Manager: Wilberg Poland Heat Supply Restructuring and Conservation (Approved FY91) $340 million, IBRD This project supports implementation of a comprehensive restructuring of the energy sector, $739 million, total project cost commercialization and privitization of restructured enterprises and of petroleum exploration and production, introduction of a regulatory framework and improvement in energy pricing policies; Implementing Agency: District Heat extends the life of district heating assests through rehabilitation; promotes energy conservation Companeat Companies through financing appropriate investments; and reduces environmental pollution by investing in energy-efficient equipment and sustems and by supporting programs to replace small coal-fired boilers with gas-fired boilers. Task Manager: Benmessaoud 73 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Poland Forest Development Support (Approved FY94) $146 million, IBRD The project's assists the Government in executing its program of the development of selected $335 million, total project cost forestry branches and protection of ecosystems in National Parks for 1993- 1997, thereby ensuring the protection of Poland's forest ecological capital, providing for social benefits, and Implementing Agency: Ministry of accommodating sustainable forestry. Objectives include assistance in introducing biologically Environment and environmentally sound management practices in the forestry sector; improvement of the efficiency of forestry activities; and improvement in the organization, managment and financial structure of the Genera Directorate of State Forests and the Gorvernment's progrmas to Task Manager: Wencelius modernize, restructure and privitize elements of the GDSF. Poland Katowice Heat Supply (Approved FY95) $45 million, IBRD This project addresses the environmental, health, and economic problems caused by soot and dust $92.9 million, total project cost particulates generated by energy production. It enhances energy conservation and efficiency in the district heating sector by extending the life of existing district heating assets through Implementing Agency: REC-Katowice, The rehabilitation and introduction of modem technologies and by reducing environmental pollution Katowice District Heating Enterprise through investments in energy-efficient equipment and systems as well as by supporting a program to eliminate coal-fired, heat-only boilers. Task Manager: Benmessaoud Russian Federation Emergency Oil Spill (Approved FY95) $99 million, IBRD This project assists the Russian Federation and the pipeline operator in stabilizing the oil spill $140 million, total project cost area and preventing ecological damage in the Pechora River Basin. It will continue to clean up in an environmentally appropriate way, provide short-term support for safe pipeline operations, Implementing Agency: Komineft evaluate the need for a replacement pipeline, and identify and implement other measures to Implementing Agency: Komineft mitigate against possible oil spills in the future. Task Manager: Mckay Russian Federation Environmental Management (Approved FY95) $110 million, IBRD This project supports the Russian Federation's Environmental Framework Program, which $195 million, total project cost addresses environmental and natural resource management issues at federal, regional, and local levels and mainstreams them into the economic, social, and political adjustment process. It also Implementing Agency: Ministry of includes policy and regulatory support and environmental epidemiology; water quality Environment management; hazardous waste management; the creation and capitalization of a National Pollution Abatement Facility for the funding of economically and financially viable projects; and the creation of a Center for Project Preparation and Implementation under the Ministry of Task Manager: Batstone Environmental Protection and Natural Resources. Slovenia Environment (Approved FY96) $34.6 million, IBRD This project's two main objectives are to support air pollution abatement in polluted cities in $55.4 million, total project cost Slovenia and to provide for Geographical Information Systems in the Ministry of Environment and Planning. The Air Pollution Abatement Program assists households and boilerhouse operators Implementing Agency: Ministry of in polluted cities to convert to cleaner fuels or heating systems by providing loans that would Environment cover 80% of the conversion costs. Based on lessons learnt from a pilot phase in Maribor, this Program will be a self-sustaining revolving loan fund. The objective of the GIS Component is to collect, organize, and manage information for improved development and loand-use planning, Task Manager: Schreiber particularly in areas experiencing rapid development. It would also motivate municipalities to build local GIS centers as a part of the national GIS infrastructure. 74 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Turkey Izmir Water Supply and Sewerage (Approved FY87) $184 million, IBRD This project, completed during fiscal 1996, assisted in establishing an autonomous water and $522 million, total project cost sewerage authority for Izmir; encouraged appropriate cost recovery policies; corrected deficiencies and expanded the capacity of Izmir's water and sewerage systems; and brought about Imple:lzmir Water Supply environmental improvements and reduced health hazards by eliminating the discharge of Implementing Agency: untreated sewage to streams and Izmir Bay. The project included water supply, water and Sewerage Authority distribution, sewage treatment, and sewage collection components. A technical assistance component provided advice and training for the newly formed autonomous water and sewerage Task Manager: Gomez authority, IZSU. Turkey Istanbul Water Supply and Sewerage (Approved FY88) $218 million, IBRD This project completed during fiscal 1996, improved and extended sewerage service to 70% of $570 million, total project cost the population of Istanbul, provided for appropriate disposal of sewage to protect the waters and shorelines of the Sea of Marmara and the Bosphorus; reduced unaccounted-for water; and Implmentng Aency Isanbu Watr Suply strengthened Istanbul Water Supply and Sewerage General Directorate's (ISKI) operation, and andpSewernge Ageneral DIrectorbater Stre maintenance and industrial waste management capabilities. The project included rehabilitation of parts of water distribution systems; installation of a system for water supply monitoring and control; and construction of sewage collection and treatment facilities. Task Manager: Coyaud Turkey Ankara Sewerage (Approved FY90) $173 million, IBRD This project provides new facilities and rehabilitates existieng ones to promote environmental $557 million, total project cost improvements and reduce health hazards in the Greater Ankara region. This will be achieved by: expanding sewage collection services to benefit 850,000 people; improving present sewerage Implementing Agency: Ankara Water Supply services to about 500,000 people; and constructing drainage systems to reduce the risk of amplementige Ageincy:sAkrat WAte S flooding. In addition, technical assistance and training would be provided to ASKI to strengthen it's capability to carry out expanding operations. Task Manager: Ikegami Turkey Bursa Water Supply and Sanitation (Approved FY93) $130 million, IBRD This project improves environmental conditions, reduces health hazards, and increases the $258 million, total project cost efficiency of water usage by building water supply and waste treatment and transfer works, improves waste collection and disposal, and provides technical assistance for project Implementing Agency: Bursa Water Supply implementation and institutional strengthening. and Sewerage Authority (BUSKI), Bursa Metropolitan Municipality (BMM), and Task Manager: Coyaud Turkey Eastern Anatolia Watershed Rehabilitation (Approved FY93) $77 million, IBRD This project addresses problems of rural poverty and natural resource degradation by helping to $121 million, total project cost improve the productivity of range and forest land; promotes the production of fuelwood, cultivated fodder, and sustainable use of marginal farmlands; facilitates the adoption of treatments Implementing Agency: Ministry of Forestry for range and forest land; and supports the increased responsibility and involvement of local (MOF) and Ministry of Agriculture and Rural communities in planning and managing their resources. Affairs (MARA) Task Manager: Kadiresan 75 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Latin America / Caribbean Bolivia Eastern Lowlands Regional Development (Approved FY90) $35 million, IDA This project supports the planning and management of natural resources by preparing a land-use $55 million, total project cost plan for the region that encompasses the results of agroecological zoning, soil studies and mapping, and studies on water, forestry, livestock, and land tenure. It also protects forest reserves Implementing Agency: Govt./Cordecruz and national parks (such as Noel Kempf Mercado National Park) and indigenous people by demarcating tribal lands. Task Manager: McMahon Bolivia Environmental Technical Assistance (Approved FY93) $5 million, IDA This project strengthens key govemment-related institutions through training for planning, $9 million, total project cost management, environmental assessment, and evaluation. It also supports the development and strengthening of an environmental legal and regulatory framework; and helps to develop the Implementing Agency: National Environment capacity of the primary school system to provide environmental education. Fund Task Manager: Plaza Bolivia Environment, Industry, & Mining (Approved FY96) $11 million, IDA This project supports the implementation and refinement of a regulatory framework to assure that $50 million, total project cost privately-led mining and industrial activities grow in an environmentaly-friendly fasion. It also helps remediate contamination from past mining activities for which the State accepts liability, including remediation activities that help to facilitate private investment in the mining sector, and Implementing Agency: Ministerio de Minas y assists in attracting other financial resources for investments for mining community Metalurgia environmental problems which are otherwise ineligible for financing. Task Manager: Barham Brazil Second Industrial Pollution Control (Approved FY87) $50 million, IBRD This project finances subprojects for industrial enterprises to make investments to reduce of $100 million, total project cost industrial pollution in Sao Paulo and institutional strengthening of Environmental Protection Agency (CETESB), the State Environmental Protection Agency (SEPA) of Sao Paolo State. It Implementing Agency: Banco de also finances the purchase of specialized monitoring and laboratory analysis equipment, applied Desenvolvimiento Economice Social (BNDES) research and studies in fields of biological and toxic treatment, hazardous risk assessment and cost-benefit analysis, and training of staff and CETESB in pollution control. Task Manager: Tlaiye 76 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Brazil Minas Gerais Forestry Development (Approved FY88) $49 million, IBRD The project finances the establishment of up to 165,000 ha of forest plantations for industrial $100 million, total project cost purposes and the building of charcoal manufacturing kilns and infrastructure through a line of credit; planting of about 40,000 ha of woodlots on small and medium-sized farms; staff, Implementing Agency: Minas Gerais Dev. equipment and consulting services for forestry conservation including control, supervision and Bank (BDMG), State Forest management of forest harvesting and wood utilization, conservation education, and development of parks and reserves. The project also finances institutional development. Task Manager: Kirmse Brazil Land Management I- Parana (Approved FY89) $63 million, IBRD This project increases agricultural production and farm incomes by promoting the adoption of $138 million, total project cost sustainable, modem forms of land management and soil and water conservation, thus safeguarding farmer incomes and the state's natural resources. This is achieved through Implementing Agency: State Secretariat of increasing the extent and duration of vegetative cover of the soil, better protecting it from intense Agriculture and Supply of Parana rainfall; improving internal soil structure and drainage, thus increasing water infiltration; and safely disposing of any remaining runoffs. Task Manager: Lituma Brazil Land Management I (Approved FY90) $33 million, JBRD This project provides land use mapping, planning, and monitoring for 520 project $72 million, total project cost microcatchments. It develops an incentive program for land management, soil conservation, and pollution control to help farmers belonging to a microcatchment association properly plan land Implementing Agency: State Secretariat of management and implement collective soil conservation and agricultural pollution control Agriculture and Supply of Santa Catarina measures; plans erosion control along rural roads to be implemented as parts of microcatchment management plans; supports forestry development and protection of natural resources through forestry conservation; develops environmental legislation concerning land use, soil conservation, Task Manager: Lituma and agricultural pollution; supports management of state parks and protection of biological reserves. Brazil NationalEnvironment (ApprovedFY90) $117 million, IBRD This project strengthens the protection of the country's most important conservation areas and $166 million, total project cost imminently endangered ecosystems, with special emphasis on the reduction of economic and environmental losses associated with uncontrolled deforestation, soil erosion, and air and water Implementing Agency: Ministry of Planning pollution in the Pantanal, Legal Amazon, Atlantic Forest and Brazilian Coast; the institutions of the environmental sector, with special emphasis on the strengthening of National Environmental Agency (IBAMA) and State Agencies in the Legal Amazon and Pantanal; and the regulatory framework of the environmental sector. Task Manager: Gross Brazil Mato Grosso Natural Resource Management (Approved FY92) $205 million, IBRD This project supports changes in policies, regulations and public investment programs; improves $286 million, total project cost the knowledge of natural resources by providing more detailed data on land capability and land tenure; reduces environmental degradation and ensures biodiverstiy preservation; protects and Implementing Agency: Secretariat of Regional enforces the borders of conservation units, indigenous reserves, public forests and controls and Development, Presidency of the Republic prevents illegal deforestation, wood transport, and forest fires; develops sustainable agriculture in Secretariat of Planning of Mato Grosso suitable areas; and consolidates the technical operational capacity of institutions, particularly those responsible for management of natural resources, and the protection and management of Task Manager: Lituma forests and indigenous reserves, and agricultural services. 77 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Brazil National Industrial Pollution Control (Approved FY92) $50 million, IBRD This project improves public health and living conditions of the population in and around $100 million, total project cost industrialized areas. It also devises a regulatory framework for pollution control; obtains a political commitment from State authorities to improve the environment; supports a capable State Implementing Agency: Banco de Environmental Protection Agency (SEPA); familiarizes the banking system with financing free- Desenvolvimiento Economico e Social standing pollution control investments, allowing industry to have access to pollution control (BNDES) financing. It strengthens the institutional capabilities of active SEPAs in monitoring and analyzing environmental problems and strengthens the National Development Bank's (BNDES) Task Manager: Tlaiye ability to process free-standing pollution abatement loans. Brazil Rondonia Natural Resource Management (Approved FY92) $167 million, IBRD This project implements an improved approach to natural resource management, conservation and $228 million, total project cost development in the State of Rondonia. It assist the government to institute a series of changes in policies, regulations and public investment programs; conserves the biodiversity of the state; Implementing Agency: Secretariat of Regional protects and enforces the borders of conservation units, Amerindian reserves, public forests and Development, Pesidency of the Republic extractive reserves, and controls and prevents illegal deforestation, wood transport and forest Rondonia State Secretariat of Planning fires; develops intensive and integrated farming systems in areas of agriculture and agro-forestry; supports priority investments in socio-economic infrastructure and services needed to implement Task Manager: Lituma the State's agro-ecological zoning. Brazil Water Quality and Pollution Control-Sao Paulo/Parana (Approved FY93) $245 million, IBRD This project reduces current levels of water pollution and preserves water quality through river $494 million, total project cost regularization and flood control drainage; provides for basic sanitation services, and the collection and disposal of solid waste. It helps establish policy for water pollution control and Implementing Agency: Fedarative Republic of creates water basin management, develops the financial capacity to provide services, and sets up. Brazil, and the local State Governments of Sao project preparation facilities to help start water pollution control projects in the most congested Paulo and Parana urban areas of Brazil. Task Manager: Rodriguez Brazil Minas Gerais Water Quality and Pollution Control (Approved FY93) $145 million, IBRD This project helps to recuperate environmentally deteriorated river basins through improved flood $308 million, total project cost control and urban drainage, and the collection, treatment, and disposal of municipal and industrial sewage and solid waste; strengthens environmental protection and water basin management; and Implementing Agency: Secretariats of State- promotes institutional strengthening of the State Environmental Agency. Mato Grosso Task Manager: Rodriguez Brazil Espirito Santo Water Supply and Coastal Pollution Management (Approved FY94) $154 million, IBRD The project comprises an investment component to help finance CESAN in 1994-1999 $308 million, total project cost investment program and an institutional program to strengthen the capabilities of both CESAN and the State Secretariat of the Environment (SEAMA), through studies, technical assistance and Implementing Agency: State Water Company training in selected areas, and to provide appropriate water and sanitation infrastructure in low- of Espirito Santo (CESAN) and State income urban areas of Grande Vitoria and Guarapari. Secretariat of the Environment (SEAMA) Task Manager: Velez 78 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Brazil Environmental Conservation and Rehabilitation (Approved FY96) $50 million, IBRD This project consists of air, water, and soil pollution control and land reclamation investments in $109.9 million, total project cost CVRD's mining, industrial, rail and port operations throughout the country; natural resource investments; socially oriented investments, studies in research, training, and technical assistance; Implementing Agency: Compania Vale Do Rio implementation of a comprehensive corporate environmental information, control, monitoring Doce (CVRD) and auditing system; further sub-projects and studies aimed at reducing pollution and environmental degradation, and conserving natural ecosystems, sustainable management of natural forests; environmental education, and social programs aimed at improving the welfare of Task Manager: Babelon communities. Colombia Natural Resource ManagementProgram (Approved FY94) $39 million, IBRD This project aims to arrest the degradation of natural renewable resources through the $65 million, total project cost development of a national forest policy and a strategy for natural resource management in the Choco Region; ecological zoning; establishment of an environmental monitoring system; titling Imple:Natlional Planning and demarcation of land; and institutional support to Black and Amerindian communities. It also Implementig Agency: supports local projects to protect and rehabilitate watershed areas through technical assistance, and it strengthens the capacity of National Parks Services to protect threatened ecosystems by funding for staff, infrastructure, and technical assistance. Task Manager: Hazelton Colombia Urban Environment Technical Assistance (Approved FY96) $20 million, IBRD This project supports the implementation of Colombia's National Environmental Policy and $40 million, total project cost improvement of environmental management in urban areas through strengthening the capacity of the MinAmbiente to provide policy advice and technical assistance to Colombian cities, and Implementing Agency: Min. of Environment, strengthening environmental management agencies in the urban centers of Bogota, Cali, Depts of Env't of Bogota, Cali & Barranquilla Medellin, and Barranquilla. In support of this objective, the project also helps establish the Metro Planning Agency of Aburra Valley. National Environmental Information System, at the national and local levels, which is instrumental in improving urban environmental management. Task Manager: Serra Chile Second Valparaiso Water Supply and Sewerage (Approved FY91) $50 million, IBRD This project seeks to achieve investments in infrastructure through improved maintenance and $142 million, total project cost rehabilitation; increased efficiency in public services; and alleviation of environmental pollution that adversely affects public health and hinders economic development. Objectives include Implementing Agency: Empresa de Obras increasing the sanitary conditions of streams, public beaches, and the marine environment in the Sanitarias de Valparaiso SA. (ES VAL) Greater Valparaiso area by reducing water losses, improving water quality, and increasing the efficiency of the city's water utility. It also supports expansion of the water supply services and the increase of ESVAL's operational efficiency and capacity to successfully implement the Task Manager: Kriegler proposed investment and development program. Chile Environment Institutions Development (Approved FY93) $12 million, IBRD This project establishes an institutional framework to manage activities for environmental $33 million, total project cost protection and the conservation of natural resources, including updating the legal environment framework, incorporating environmental assessment in public and private sector activities, Implementing Agency: National training professionals in environmental and natural resource management, and establishing an Environmental Commission environmental information system. It also supports institutional strengthening and the economic analysis of selected environmental problems and strengthens the environmental management capacity of priority sectors. Task Manager: Pisani 79 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Ecuador Lower Guayas Flood Control (Approved FY91) $59 million, IBRD The project's flood control system benefits urban and rural inhabitants in an area of 170,000 ha $98 million, total project cost through protection from catastrophic flooding. To ensure sustainability, it includes an Agricultural Development Plan to improve production systems for smallholders. A multi- Implementing Agency: The Commission for institutional effort coordinated by CEDEGE includes research programs in rice, cocoa, and small- the Development of the Guayas River Basin scale mechanization; seed production; extension; strengthening smallholder farmer organizations; (CEDEGE) and on-farm investments to be financed with farmers' own resources or with commercial credit. It also provides support to environmental protection and conservation initiatives. Support focuses Task Manager: Emanuel on studies; monitors environmental impact on water bodies, soil, and fauna; and develops integrated pest management. Ecuador Mining Development and Environmental Control - Technical Assistance (Approved FY94) $14 million, IBRD This project attracts new mining investment and supports the development of increased, yet $24 million, total project cost environmentally sustainable, mineral production. Environmental Assessment (EA) recommendations have been used extensively in project design. Components of the project are Implementing Agency: Mininistry of Energy dedicated to environmental improvements through monitoring pollution and occupational health and Mines issues; removal of contaminating wastes in the most-sensitive areas; and a technology-upgrading subcomponent that helps to introduce and encourage environmentally sound mining and processing methods among artisanal and small-scale miners. Task Manager: Venkateswaran Ecuador Environment Management (Approved FY96) $15 million, IBRD This project implements a national environmental strategy; assits the Government to build up an $20 million, total project cost environmental management capacity in areas within the National Environmental Action Plan: urban areas, the Gulf of Guayaquil, and the Amazon. Objectives strengthen the environmental Implementing Agency: The Presidency l policy analysis, program deisgn and management capability of ministries; establish and Environmental Advisory Commission (CAAM) strengthen urban environmental management capability; build institutional capacity; and carry out the participatory process and technical analysis to resolve Ecuador's serious environmental problems. These objectives are achieved through the implementation of studies, workshops, Task Manager: Dabbagh public relations campaigns, demonstration sub-projects, and database development. Honduras Environment Development (Approved FY95) $10.8 million, IDA This project strengthens the governmental agencies' capacity in environmental and natural $12.5 million, total project cost resource planning; policy, legal, and regulatory framework development; environmental monitoring; and the enforcement of environmental laws and regulations. It assists with Implementing Agency: Seda strengthening and implementation of a national system of environmental impact assessment that engages NGOs, communities, and the private sector in the review process and develops the environmental management capacity of selected municipalities in a manner that increases the involvement of affected organizations and individuals. Task Manager: Quintero Mexico Environment and Natural Resources (Approved FY92) $50 million, IBRD This project supports the government's strategy of transforming SEDUE/SE over time into an $127 million, total project cost oganization that supervises and coordinates environmental work carried out by other levels of government, federal agencies, or under contract to private sector firms. The project's specific Implementing Agency: Secretariat of Urban objectives support areas where preinvestment work is well developed and institutional absorptive Development and Ecology (SEDUE) capacity is adequate; reform and strengthen the administrative structure of SEDUE's federal and state offices in preparation for increased decentralization of authority to state environmental agencies over the medium term; and support development of a sectoral strategy and policy Task Manager: Mohadjer framework that is integrated into the government's economic policies. 80 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Mexico TransportAirQualityManagement (ApprovedFY93) $220 million, IBRD This project supports a comprehensive program to reduce air pollution and control increases in $1087 million, total project cost emissions of nitrogen oxide, volatile organic compounds, carbon monoxide, lead, and particulate matter from transport sources. It also develops a policy framework to support transport and air Implementing Agency: National Finance quality objectives, improves the scientific base underlying the development and management of Institution (NAFIN) the program, and strengthens the institutional capacities to plan and implement programs effectively during the long-term. Task Manager: Mumme Mexico Northern Border Environment (Approved FY94) $368 million, IBRD This project improves environmental quality on the U.S.- Mexican border by strengthening $762 million, total project cost planning, management, and enforcement capabilities and carrying out priority investments and action plans that preserve the environment. A sectoral EA carried out for the Mexico Second Implementing Agency: Banco Nacional de Solid Waste Management Project also covered the Northern Border Environment Project, which Obras y Servicios (BANOBRAS) and The includes a solid waste management component. Ministry of Social Develoment (SEDESOL) Task Manager: Phung Mexico Second Solid Waste Management (Approved FY94) $200 million, IBRD This project finances investment to improve solid waste services and extend their coverage in $416 million, total project cost participating medium-size cities. The EA made the following recommendations: containerization and mechanical collection fulfill requirements of low cost and ease of operation; sanitary landfills Implementing Agency: Banco Nacional de are the most-suitable option for medium to small Mexican cities; high-density landfills are Obras y Servicios (BANOBRAS) and The suitable for cities with high groundwater tables and groundwater pollution. Environmental Obrastryof Social Develoment (SEDESOL) impacts from project siting, construction, and operation are kept to a minimum through Ministry oO environmental screenng and assessment, including publc consultation of proposed subloans. Task Manager: Stein Mexico Water and Sanitation II (Approved FY94) $350 million, IBRD This project's objectives improve the quality and expand the coverage of water and sanitation $770 million, total project cost services; strengthen the institutional capacity of CNA to assist local water utilities (WU) in management, operation and planning; train personnel in the management and maintenance of Implementing Agency: Comision Nacional de their systems; reduce subsidies by promoting development of WUs that are operationally and Agua financially autonomous; encourage and attract private sector participation and investment; improve the management of water resources by supporting water quality programs; support BANOBRAS' efforts to appraise and supervise subprojects in the Mexico City and state offices; Task Manager: Pereira Da Silva and strengthen the sector's capacity to enforce environmental regulations and carry out EAs. Mexico Water Resources Management (Approved FY96) $186.5 million, IBRD This project promotes conditions for environmentally sustainable, economically efficient and $341.9 million, total project cost equitably allocated use of water resources in Mexico, supports the integrated comprehensive management of water resources, and increases the benefits while reducing the risk related to Implementing Agency: Comision Nacional del existing hydraulic infrastructure. Objectives include: supporting groundwater conservation by Agua - CNA reducing exploitation and contamination; promoting the restoration of surface water quality; improving meteorological services for water management, the society and economy; improving water allocation; promoting the establishment and strengthening of river basin councils; Task Manager: Olson developing hydrographic region plans; and improving fee collection and the registry of water rights for users. 81 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 OECS Countries Solid Waste Management (Approved FY95) $6.8 million, IBRD This project seeks to reduce public health risks and protect the the environmental integrity of the $5.7 million, IDA islands and their coastal and marine systems by improving domestic solid waste management $50.5 million, total project cost facilities, and also reducing terrestrial and marine pollution through avoiding and discouraging indiscriminate disposal of solid waste on and offshore. A further objective is to enhance public Implementing Agency: National Solid Waste health and environmental quality by strengthening the countries' capacities to effectively manage Management Entities and the OECS Secretariat and dispose of solid waste in an environmentally sustainable manner. Task Manager: Dabbagh Paraguay Land Use Rationalization (Approved FY92) $29 million, IBRD This project raises the goverment's effectiveness in land titling by improving the Govemment's $41 million, total project cost information base and the long-range planning of natural resource management; provides agricultural services; and raises fiscal revenue from the sector. The second part of this project Implementing Agency: Ministry of Hacienda provides a basis for strengthening the institutions responsible for land settlement and for natural and Ministry of Agriculture resource management and protection. The project is part of a phased strategy to strengthen basic agricultural services. Task Manager: Mckenna Paraguay Natural Resources Management (Approved FY94) $50 million, IBRD This project establishes an institutional framework dealing with agricultural and natural resource $79 million, total project cost management; generates information through research; assists small farmers in the establishment of sustainable agricultural production; and encourages the participation of the local population in Implementing Agency: Ministry of Agriculture implementation. It also supports planning and implementing actions designed to slow soil degradation; protects, conserves, and restores genetic diversity; develops research, reforestation, and technology generation; strengthens environmental legislation and institutional presence in forestry reserves and national parks; and makes available grant resources to correct damages Task Manager: Abramovich caused by the indiscriminate conversion of land for agricultural production. Trinidad and Tobago Environmental Management (Approved FY95) $6.25 million, IBRD This project establishes an environmental management agency that is responsible for the legal and $1t1 million, total project cost regulatory framework covering all aspects of the environment in the country. Technical assistance and training help bring the newly created Environmental Management Authority to full Implementing Agency: Ministry of Planning operational capacity. and Development Task Manager: Wholey Uruguay Natural Resources Management and Irrigation Development (Approved FY94) $41 million, IBRD This project develops and implements a soil and water management strategy by supporting $74 million, total project cost environmentally sound investments in rehabilitation and development of irrigation, drainage schemes and service infrastructure; supports the development of pilot microcatchment to gain Implementing Agency: Ministry of Agriculture experience in the management of ecologically fragile zones. It also establishes soil and water management demonstration farms in selected agroecological zones where potential soil degradation problems have been identified. It includes priority applied research and technology transfer subprojects and provides technical assistance for forestry development and nontraditional Task Manager: Abramovich agricultural export. 82 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Venezuela INPARQUES (Approved FY95) $55 million, IBRD This project strengthens the government's capability to manage Venezuela's national and urban $96 million, total project cost parks, natural monuments, and wildlife reserves. The project focuses on strengthening conservation and protection of vulnerable areas; intensifing public environmental research, Implementing Agency: INPARQUES training, and education efforts; and improving the economic sustainability of the national parks and other protected areas. Task Manager: Constantino Middle East / North Africa Algeria Pilot Forestry and Watershed Management (Approved FY92) $25 million, IBRD This project's objective develops a long-tern action program to better protect and manage $37 million, total project cost Algeria's natural resources, specifically its forests, watersheds, and nature conservation areas. It strengthens the institutions working in these areas and, through appropriate testing, develops the Implementing Agency: Ministry of Agriculture policy and technical basis for replication of suitable project components as part of a national resource management program. Task Manager: Stier Algeria Water Supply and Sewerage Rehabilitation (Approved FY94) $110 million, IBRD This project promotes water conservation by charging the true economic cost of the services to $170 million, total project cost consumers. In addition, as part of a larger water supply and sewerage restructuring effort, this project seeks to rehabilitate existing wastewater treatment plants in order to prevent the spread of Implementing Agency: Ministry of Equipment water pollution that is damaging to the natural environment. Task Manager: Rodriguez Algeria Industrial Pollution Control (Approved FY96) $78 million, IBRD The projecfts broad objective is to assist the Government of Algeria in reducing exposure to $118.1 million, total project cost hazardous pollution which causes health problems or serious ecological degradation. Its specific objectives are to strengthen the institutional, legal and monitoring framework; activate a National Implementing Agency: Direction Generale de Environmental Fund; and initiative and investment program in the industrial sector of Annaba for l'Environnement (DGE); Enterprise Nationale mitigating the adverse environmental and health effects of pollution. de Siderurgie (ENSIDER); Enterprise Task Manager: Arif 83 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Egypt Private Sector Tourism (Approved FY93) $130 million, IBRD This project provides financial support for water supply and sewage and solid waste collection $784 million, total project cost and disposal facilities for tourist resorts; provides technical assistance and training to develop environmental guidelines and enforce rules; and helps to strengthen the institutional framework Im n A y M Tourism for environmentally sound developments. An associated GEF component supports the development and implementation of a coastal zone environmental management plan for the Red Sea coast. Task Manager: Graham Egypt Matruh Resource Management (Approved FY93) $22 million, IDA This project supports natural resource management to conserve the area's water, land, and $31 million, total project cost vegetation; promotes adaptive research, extension services, and training directed to local communities; provides rural finance with special attention to on-farm and off-farm income- Implementing Agency: Ministry of Agriculture generating activities targeted to small farmers, the landless, and women; and strengthens and Land community participation and dialogue with existing local institutions. Task Manager: Souhlal Egypt Pollution Abatement (Approved FY96) $20 million, IBRD This project assists the Govemment of Egypt in reducing industrial pollution causing adverse $20 million, IDA health effects and/or ecological degradation. Its specific objectives are to strengthen the $50.5 million, total project cost monitoring and enforcement capabilities of the environmental institutions and establish technical Implementing Agency: Egyptian and financial mechanisms for supporting pollution abatement investments in Greater Cairo, Environmental Affairs Agency Alexandria, and the Suez Canal cities of Suez and Ismailia. Task Manager: Arif Lebanon Solid Waste & Environmental Management (Approved FY95) $55 million, IBRD This project completes the rehabilitation of solid waste collection and disposal systems envisaged $135 million, total project cost under the National Emergency Reconstruction Program; improves the collection and disposal of hospital waste; strengthens the govemment and private sector capabilities for solid waste Implementing Agency: Council for management; and helps to develop a coastal zone management plan that protects the Lebanese Development and Reconstruction (CDR) and coast from further degradation. the Ministry of Municipality and Rural Affairs Task Manager: Graham Morocco Second Forestry Development (Approved FY90) $49 million, IBRD This project strengthens forestry planning and policy and assists Morocco in maintaining and $100 million, total project cost improving its forestry potential and protects its watersheds in harmony with other demands such as domestic stock grazing. Components are: forestry planning including national forest Implementin Agency:Ministrof AgrIcltue inventory, demarcation, management and a national reforestation plan; field operations paid by Implementing Agency: Ministry of Agriculture the communes, consisting of regeneration of the natural forest, plantation establishment, watershed, forest range and pest management, stabilization of dunes, road construction and rehabilitation; supports nature conservation, forest research, staff housing rehabilitation, Task Manager: Stier equipment purchases, training and technical assistance. 84 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Morocco Environmental Management (Approved FY94) $6 million, IBRD This project assists the Government in strengthening its institutional and regulatory framework $11 million, total project cost for managing environmental protection. It is expected that the establishment of the needed environmental institutions and full development of the necessary environmental laws would Implementing Agency: Under Secretariat of require a concerted and long term effort spanning several years. The project-representing the first the Environment (USE) step of such efforts-defines the elements for and initiates the process of strengthening the Government's environmental capacities. Task Manager: Raimondo Tunisia Second Forestry Development (Approved FY93) $69 million, IBRD This project supports the sustainable development and management of forests with the active $148 million, total project cost participation of forestry populations through institutional and infrastructure strengthening; preparation of environmental management plans; establishment of plantations; rehabilitation of Implementing Agency: Dircetorate General of prairies; and support for studies and training. Forests (DGF) Task Manager: Gois Tunisia Northwest Mountainous Areas Development (Approved FY94) $28 million, IBRD This project aims to arrest degradation of the natural resource base through active participation of $50 million, total project cost village communities. It supports improvement of the management and productivity of range and farm land; measures to reduce erosion, runoff, and reservoir sedimentation; and increased Implementing Agency: Ministry of Agriculture involvement of village organizations. It also supports strengthening of the technical and implementation capability of the executing agency and the planning capability of village committees through technical assistance and training. Task Manager: Woldu Yemen, Republic of Land and Water Conservation (Approved FY92) $33 million, IDA This project, to be implemented over a period of six years, consists of technical developments in $48 million, total project cost irrigation and in forestry and land conservation; institutional strengthening of the MAWR agencies responsible for the water resources sector, forestry and pilot activities; and developing Implementing Agency: GDllMinistry of approaches for watershed management. Agriculture and Water Resources (MAWR) Task Manager: Raturi 85 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 South Asia Bangladesh Forest Resources Management (Approved FY92) $50 million, IDA This project improves and institutionalizes the Resource Information Management System which $59 million, total project cost evolved under the Second Forestry Project; integrates environmental and socio-economic factors; implements a pilot scheme for people's participation in forest development; expands forest Imple:Forest Department resources through plantation establishment and improved management; formulates management plans for nature conservation areas; and supports investments in selected sanctuaries and parks. Also included in the objectives are streamlining and creating within FD an effective environmental management capability; and supporting professional and technical education, Task Manager: Baykal training and research. Bhutan Third Forest Development (Approved FY94) $5 million, IDA This project develops and implements an approach for sustainable protection, management, and $9 million, total project cost use of forest resources by involving rural communities in improving and managing forests and increasing the level of economic activity through social foresty practices. It also supports Implementing Agency: Ministry of Agriculture adoption of multiple-use management of forest lands; rehabilitation of degraded forests to maintain their economic and environmental benefits; and improvement of the planning and implementation capacity of the Department of Forests. Task Manager: Keil India Integrated Watershed Development (Plains) (Approved FY90) $55 million, IDA This project includes watershed development works consisting of a menu of eligible land $55 million, total project cost treatments to arrest the productivity decline on arable and private lands, and to restore ground cover on non arable (public and communal) lands; technical support through improvements in Implementing Agency: Ministry of Agricutture location; specific research and nursery development; project implementation support to and Govemments of Gujarat, Orissa, Raja strengthen project administration; physical planning and a geographical information system; and monitoring and evaluation. It also includes training and technical assitance to promote soil and moisture conservation technologies and participatory planning and sustainable resource Task Manager: Hill management. India Integrated Watershed Development (Hills) (Approved FY90) $75 million, IDA The main objective of this project is to slow and reverse degradation of the natural environment, $75 million, total project cost through the use of appropriate soil and moisture conservation technology. The aim is to lay the foundation for sustainable increases in production to keep pace with population growth. The Implementing Agency: Govemment of India project promotes known vegetative technologies and verifies others; develops approaches for (GOI)/NWDB coordinated interactive planning; and strengthens the management and use of non-arable lands. Task Manager: Hill 86 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 India Industrial Pollution Control (Approved FY91) $124 million, IBRD This project supports the Govemment of India's efforts to prevent environmental degredation due $32.6 million, IDA to industrial operations; assists in identifying and implementing a cost effective program for $235.6 million, total project cost industrial pollution monitoring, control and abatement; promotes enforcement of legislation on Implementing Agency: Ministry of environmental protection regarding industrial sources; supports efforts by industries to comply Environment with regulations; and supports extension services and research in waste minimization, source recovery and pollution abatement. Components include: strenthening the Central and State Pollution Control Boards in four selected states; investing in industries that comply with Task Manager: Vergara regulations; supporting the set up of common treatment facilities; and technical assistance. India Maharashtra Forestry (Approved FY92) $124 million, IDA This project undertakes several sector reforms through the reorganization of the public forest $142 million, total project cost administration, and an active role of the NGOs, village panchayats, cooperatives and private sector. These reforms consist of improving the state's technical capability particularly in the field Implementing Agency: Forest Dept. of of seed production, genetic planting material, nursery and planting practices; planning, Themaharastra management and monitoring the forest resource base; training; and rationalizing the policies and regulations constraining the sector. The project also supports five discrete investment activities related to land treatment. Task Manager: Keil India Uttar Pradesh Sodic Lands Reclamation (Approved FY93) $55 million, IDA This project develops concomitant models for environmental protection and improved $80 million, total project cost agricultural production through reclamation of sodic lands; strengthens local institutions, enabling the effective management of such programs with strong beneficiary participation and Implementing Agency: Govemment of Uttar NGO support; and supports the development and dissemination of agricultural and reclamation Pradesh (GOUP) technology. Task Manager: Seth India Renewable Resources Development (Approved FY93) $75 million, IBRD This project promotes commercialization of renewable resources technologies by financing $115 million, IDA private sector investments in altemate energy subprojects, including irrigation-based small $440 million, total project cost hydros, wind farms, and solar photovoltaic systems. It expands bagasse-based paper mills and Implementing Agency: Indian Renewable creates marketing and financing mechanisms for the sale and delivery of altemate energy Energy Devlp. Agency Ltd. (IREDA), Tamil systems. It includes technical assistance for institutional development and the promotion of Nadu Newsprint and Papers Ltd. (TNPL) renewable energy technologies. The GEF component supports development of wind, solar, and photovoltaic capacity and provides technical assistance. Task Manager: Manzo India Forestry Research Education and Extension (Approved FY94) $47 million, IDA This project supports research on and development of methods for the conservation of $56 million, total project cost biodiversity. Components include development and implementation of programs for ecodevelopment in two protected areas; financing of a range of ecodevelopment activities and Implementing Agency: The Indian Council for concurrent improvements in the planning and management of protected areas; support for Forestry Research and Education (ICFRE) research aimed at improving protected area management and the implementation of ecodevelopment; and a program to monitor socioeconomic and ecological changes. In addition, it supports the involvement of local communities in the planning and implementation of Task Manager: Hill ecodevelopment programs. 87 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 India Andhra Pradesh Forestry (Approved FY94) $77 million, IDA This project maintains and improves biodiversity and develops sustainable management systems $89 million, total project cost that foster participation and sharing of benefits by village communities, particularly in forest areas that are home to tribal groups. It supports forest regeneration and rehabilitation; Implementing Agency: Forest Department improvement of adaptive research and silviculture management; and joint forest management (FD) and Govemment of Andhra Pradesh training in participatory rural appraisal. It has provided institutional support to the nature (GOAP) and Govemment of AndhraPradesh conservation program through development of an integrated protected areas system; studies; (GOAP) boundary demarcations; fire protection; upgrading of roads; habitat improvement; captive Task Manager: Keil breeding programs; and ecodevelopment in selected parks and sanctuaries. India Madhya Pradesh Forestry (Approved FY95) $58 million, IDA This project supports improvements for the Madhya Pradesh forestry sector, including innovative $67 million, total project cost programs for participatory forest management. It involves forest regeneration and improved silvicultural practices; improved implementation, monitoring, and evaluation; a village resource Implementing Agency: Forest Department development program based on participatory planning and the integration of forest management (FD) and Government of Madhya Pradesh and protection with activities to generate altemative incomes to reduce pressures on the forest; (GOMP) forestry research, extension, and technology improvements; and biodiversity conservation through management of twelve protected areas while supporting the development of altemative Task Manager: Hill resources for local communities. India Industrial Pollution Prevention (Approved FY95) $143 million, IBRD This project promotes cost-effective abatement of industrial pollution through components that $25 million, IDA support institutional strengthening of state pollution control boards and investments by individual $352.5 million, total project cost firms for pollution abatement with a focus in minimization of waste and cleaner production Implementing Agency: Ministry of methods. It renews financing for common effluent treatment plants for treating wastewater and Envimplmenting Agencysolid materials at industrial sites with a concentration in small sized industries. A technical Environment assistance component supports the development, diffusion, and transfer of technologes with environmental benefits. Task Manager: Vergara India Coal Environment and Social Mitigation (Approved FY96) $65 million, IDA The project assists Coal India in making coal production more environmentally and socially $80 million, total project cost sustainable. This includes technical assistance to enhance Coal India's capacity to deal more effectively with the enviommental and social issues of coal mining operations; the implementation of Environmental Action Plans, Rehabilitation Action Plans, and Indigenous Implementing Agency: Coal India Ltd. Peoples Development Plans for 25 proposed mines in India; and a a review, and if required, implementation of a program of remedioal action of the resettlement and rehabililtation measures taken by Coal India in implementing projects that have received bank Group support in the past. Task Manager: Pollak India Bombay Sewage Disposal (Approved FY96) $167 million, IBRD This project strengthens the capacity of the Municipality Corp of Bombay (MCGB)'s WSSD in all $25 million, IDA aspects for the management of the provision of sewerage services; sustaining the financial $280 million, total project cost viability for the provision of water supply and sewerage services in Greater Bombay through Implementing Agency: Municipality Corp of direct charges to beneficiaries at appropriate levels; and improving the health and environmental Iomplementin Agency: Municipality Corp of conditions in Greater Bombay. Bombay Task Manager: Couzens 88 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 India Hydrology (Approved FY96) $142 million, IDA This project improves the institutional and organizational arrangements, technical capabilities and $178.3 million, total project cost physical facilities available for measurement, validation, collation, analysis, transfer and dissemination of hydrological, hydrometeorological and water quality data. It also administers Implementing Agency: Ministry of Water basic water resource evaluations within the concerned agencies at Central Govemment level and Resources in the seven participating states. Task Manager: Myint Nepal Hill Community Forestry (Approved FY89) $31 million, IDA This project helps His Majesty's Government implement components of its Forestry Master Plan $45 million, total project cost and Forestry Sector Policy, by establishing a system to conserve and expand the forest resources which sustain traditional farming systems in the Hills. Forest User Group are formed among Implementing Agency: Forest Departrent villagers to protect, manage, and utilize areas of State-owned forests in their vicinity. FD staff are trained to provide technical and material assistance to enable these groups to properly manage the existing forests and establish and maintain new plantations in degraded areas. Task Manager: Hill Pakistan Second Scarp Transition (Approved FY91) $20 million, IDA This proposed six-year project implements the government's policy of replacing STWs and PTWs $49 million, total project cost in FGW areas. It comprises two subprojects, one in Punjab and one in Sindh. The Punjab subproject replaces about 1,346 STWs with PTWs in the FGW areas of the remaining part of the Implementing Agency: Agricultural SCARP-I area, not covered under the STPP. The Sindh subproject is a pilot effort to test the Development Bank of Pakistan (ADBP) viablility of SCARP transition in the somewhat different socio-economic conditions of Sindh. It replaces about 380 STWs with PTWs in the FGW areas of the Moro and Sakrand units of SCARP North Rohri (SNR) Project. Task Manager: Qamar Pakistan Environmental Protection and Resource Conservation (Approved FY92) $29 million, IDA This project is the first phase in a long-term program to improve Pakistan's natural resource $57 million, total project cost management. It has two components, institutional strengthening and environment and natural resource rehabilitation. Its objectives are to initiate the strengthening of federal and provincial Implementing Agency: Gov't of Pakistan & environmental protection institutions. It strengthens environmental legislation and initiates Gov'ts of Punjab, Sindh, North-West Frontier policies and programs; disseminates information conceming damage to the environment and Provinces and Azad Jarnmu and Kashmir natural resources to policy makers, government officials, and the public; strengthens professional education; and implements subprojects to rehabilitate, protect, develop and manage agro- Task Manager: Saddington ecological resources which have been damaged or threatened. Pakistan Fordwah E. Sadiquia Irrigation and Drainage (Approved FY93) $54 million, IDA This project supports efforts to control waterlogging and salinity through improved water $71 million, total project cost management and increases efficient delivery of canals and watercourses. It also improves water conservation by: recovering and limiting seepage; provides a network of surface drains to Implementing Agency: Punjab Irrigation and evacuate storm water runoff; provides technical assistance to implementing agencies and for staff Agricultural Department, and Water and Power training; and supports the monitoring and evaluation of the project's impact on groundwater Development Authority levels and agriculture production. Task Manager: Ahmad 89 IBRD/IDA Projects with Primarily Environmental Objectives Active FY96 Pakistan Northern Resource Management (Approved FY93) $29 million, IDA This project provides the basis for the sustainable and economically efficient use of land $40 million, total project cost resources in Azad Jammu and Kashmir by: improving the policy framework; restructuring and strengthening the main institutions that manage and protect land resources in the area; and testing Implementing Agency: Azad Jammu and programs in which communities take management and financial responsibility for planning and Kashmir implementing activities for sustainable resource management. Task Manager: Motha Pakistan Balochistan Natural Resource Management (Approved FY94) $15 million, IDA This project represents the first phase of long-term support to improve Balochistan's protection of $18 million, total project cost its environment and management of its natural resources. It also strengthens the principal environmental institutions through formulating policy, legislation, and regulations; monitors Implementing Agency: Government of natural resource management; and provides training, technical assistance, and support staff. It Balochistan supports site-specific methods of rehabilitation and development of degraded forests, watersheds, rangelands, coastal areas, and natural habitats and the efficient, sustainable use of groundwater, especially by eliminating govemment subsidies for drilling tubewells. Task Manager: Sheikh Pakistan Punjab Forest Sector Development (Approved FY95) $24.9 million, IDA This project strengthens the Punjab Forestry Department's capabilities to assist local communities $33.8 million, total project cost and the private sector in the development and conservation of forest and rangelands through natural, financial, and human resource management. It helps to disseminate technology and information required to promote farmers' involvement in nursery and timber production; Implementing Agency: Punjab Forest develops and strengthens community organizations to manage scrub forests and rangelands Department jointly with public sector institutions; and implements a pilot component for the reorganization of timber plantations to enhance their environmental value. Task Manager: Khouri Sri Lanka Forest Sector Development (Approved FY89) $20 million, IDA This project assists the Government in improving the performance of the forestry sector in line $31 million, total project cost with the economic, social, and environmental requirements of Sri Lanka by implementing part of a five-year time slice of the Forestry Master Plan. To attain this objective: all plantations and Implementing Agency: Ministry of Lands and selected natural forests are brought under intensive management; the resource base is expanded Land Devenopment (Forestry Department) by establishing new plantations; forestry education and technical training is intensified; and the Land Dvlmn(osrinstitutional base is strengthened. Current forestry programs, especially those formulated and implemented with extemal financing, have been taken into consideration in designing the project. Task Manager: Khouri Sri Lanka Colombo Environmental Improvement (Approved FY95) $39 million, IDA This project supports progress toward a sustainable environment for the economic and social $49 million, total project cost development of the Colombo Metropolitan Area (CMA). The project focuses on solid waste services, controlling surface-and groundwater contamination from wastewater discharge, and Implementing Agency: Urban Development building up the capabilities of the government in municipal waste management. The project also Authority (UDA), Colombo Municipal Council assists in promoting private sector participation in environment-related operations. The project (CMC)A and The National Water Supply and finances construction of a sanitary landfill and compost facilities to replace open dumps, and equipment for hospital wastes collection, transport and disposal; wastewater collection systems in Task Manager: Zhao two industrial zones; and wastewater pollution abatement measures in the Beria Lake catchment area. 90 World Bank Group Projects with Full Environmental Assessment (Category A) Since October 1989, Bank staff have been required to screen all proposed new investment projects with respect to their potential environmental impacts and to classify them accordingly. The classification of each proposed project depends on its type, location, sensitivity, and scale, as well as the nature and magnitude of its potential impacts. Category A projects are those considered likely to have significant environmental impacts that may be sensitive, irreversible, and diverse. Such projects require a full environmental assessment (EA). Category B projects may have impacts that are less significant than category A projects, and few if any of the impacts are irreversible. An EA is not normally required for category C projects, which are unlikely to have adverse impacts. This table separately lists all category A projects for IBRD/IDA and IFC that were approved in fiscal 1996. For each, the table indicates the estimated total cost and the amount of financing or investment. The table also provides a brief description of each project and the contribution of the EA. Of 150 IBRD/IDA projects approved in FY96, 21 were category A. IFC's FY96 portfolio of 264 projects contained 15 category A projects. 91 Category A Projects, IBRD/IDA: Approved FY96 Africa Ghana Highway Sector Investment Program The principal components of the program are: maintenance, rehabilitation and reconstruction of the road network; strengthening capacity of several Ghanaian agencies through institutional reforms, technical assistance, training and logistical support; promoting policy reforms in the areas of road financing, axle load control enforcement, road safety and environmental awareness. The EA concluded S100 million, IDA that no significant adverse effects on the environment are likely to occur since the project mainly $112.3 million, total project cost involves rehabilitation and maintenance operations on existing trunks of roads and no new construction is intended. Long term benefits will be achieved by increased road safety, a reduction in dust pollution originating from unpaved roads and improved drainage reducing the transmission of water bome diseases. The short term impacts of dust, noise, detours, traffic delays, spoil material and fumes have been identified during appraisal and further integrated in a mitigation plan accepted by Ghanaian authorities and the Bank. The associated cost of implementing the mitigation plan is reflected in the project's budget. East Asia / Pacific China Ertan II Hydroelectric The project involves the construction of a dam on the Yalong river, an underground powerhouse complex, an environmental management program and resettlement of 30,000 people; consulting services for engineering, procurement, management of construction and preparation of future power projects; and studies of power pricing. The main environmental concems arise from creation of the $550 million, IBRD reservoir which will impact on terrestrial, riverine and riparian ecosystems. The extent of inundation is $2940 million, total project cost limited by the topography of the area; the river being deeply entrenched in the landscape. The impacts on the local ecology are negligible since the area inundated is degraded. Changes in water regime will benefit some aquatic species to the detriment of others. As all species of the Yalong river are found elsewhere in the region, the project poses no threats of extinction. The project will incorporate measures to control malaria, and schistosomiasis and protect the quality of life of the local population. Other environmental concems are considered in the comprehensive Environmental Management Program (EMP) developed from EA's undertaken in 1980 and 1995. The EMP provides for the establishment of a conservation management zone around the reservoir; studies on commercial potential of fisheries; cultural property protection; resettlement action plan; vermin control; schistosomiasis prevention; downstream alarm system; construction worker health inspections; post construction landscaping; reservoir clearing; and wide ranging monitoring activities. The coordination of the EMP is performed by Ertan Hydropower Development Company with the assistance of the international community. China Gansu Hexi Corridor Aims to: (a) alleviate poverty by resettling 200,000 farmers from resource poor areas of Gansu province to newly developed irrigated land in the Shule riverbasin of the Hexi corridor; (b) increase agricultural production in Gansu province; and (c) protect and restore degraded environments through aforestation, and soil and water conservation practices. A related component is construction of $60 million, IBRD Changma Dam to provide for irrigation and potable water supply, supported by institutional $90 million, IDA strengthening through staff training, technical assistance, equipment, vehicles and essential facilities. $260 million, total project cost The EAs acknowledge a number of positive impacts including protection and enhancement of the existing fragile ecosystem in Gansu through aforestation and improved land and water management. Environmental and Resettlement Action Plans were prepared to mitigate the negative impacts such as involuntary resettlement of 131 families affected by the 12 km2 Changma Reservoir or increased salinity in the downstream Shuangta reservoir, and ensure implementation of soil and water conservation measures. For example, extensive monitoring in the Shule riverbasin will assess the effectiveness of land reclamation measures, including desalinization of areas upstream of the Shuangta Reservoirs, and the effect on salinity levels in the reservoir. 93 Category A Projects, IBRD/IDA: Approved FY96 China Second Henan Provincial Highway The project supports ongoing development of road infrastructure to relieve congestion, facilitate mobility and increase the efficiency of road transport in the interest of stimulating economic activity; assists in the implementation of policies to alleviate poverty in the province; promotes development of institutional capabilities in planning, design, operations and maintenance of the highway network; and $210 million, IBRD aims to increase road safety. The components of the project include the construction of a 136 km, four- $605.6 million, total project cost lane, access-controlled highway; 6 km, two-lane expressway; rehabilitation of 17 km of linking roads; and the improvement of 1700 km of rural roads. Major environmental impacts during construction and operation include noise, air pollution, alteration of hydrological regimes, soil erosion, impacts on local ecology (no rare or endangered species affected) and cultural heritage. An EA was conducted by the Henan Provincial Environmental Protection Institute and was supplemented by an Environmental Action Plan (EAP). The EAP addressed ecological, geological, social, archeological and aesthetic concems during the design, construction and operation phases of each of the sub-projects. The criteria underlining the EAP are based on national standards and the Bank's provisions. China Yunnan Environment The principal objective of the project is to provide a framework for environmentally sustainable economic and social development of Yunnan Province, while developing the basis for industrial growth. Specific objectives include: institutional strengthening for pollution control, and management of municipal water, wastewater, solid waste and nightsoil; improvement of lake water quality to enable $125 million, IBRD abstraction for potable, industrial or agricultural uses; investment in pollution control; and municipal- $25 million, IDA financing of urban environmental infrastructure investments. On balance, the project will have a $308 million, total project cost positive environmental impact, especially on water quality. Removal of phosphorus from wastewater discharges to Dianchi Lake will arrest eutrophication and permit its sustained safe use for water supply, thereby avoiding costly import of water from distant catchments. The potential impacts identified in the EA mainly relate to uncontrolled releases of methane and leachate from three landfills to be financed by the project. Mitigation measures include provision of leachate and landfill gas collection systems, and gas flaring for safety reasons. China Henan (Quinbei) Thennal Power The project seeks to (a) reduce acute power shortages and (b) foster more efficient development of the power system of Henan Province through: construction of coal-fired thermal power plants and transmission lines; promotion of electricity; technical assistance for capacity-building in power system management and operation and implementation of power sector reforms. Potentially significant issues $440 million, IBRD identified in the EAs for the new thermal power plants included air pollution (dust, sulfur dioxide), $1161 million, total project cost water pollution (primarily groundwater at the ash disposal site), coal storage and handling, ash disposal, worker health and safety, transmission line issues (noise and electro-magnetic radiation effects on people and birds), and the impacts of construction. The selected power plant and transmission line tower sites are uninhabited and do not significantly affect agricultural land. Mitigation measures incorporated into the project design include: sprinklers to suppress coal dust; collection and treatment of runoff prior to discharge; ash handling and disposal systems which minimize traffic impacts on local roads; siting transmission lines as far as possible from population centers; and inclusion of intemational standards of worker safety in all bidding documents of project equipment. Modem pollution control technologies (with provision for future upgrading) will be incorporated into the power plant design. 94 Category A Projects, IBRD/IDA: Approved FY96 China Shanghai-Zhejiang Highway Aims to (a) increase highway capacity in the Shanghai-Hangzhou corridor to relieve congestion and promote economic development through construction of a new 130 km expressway; (b) improve road safety in northern Zhejiang, through upgrading existing route sections and institutional strengthening; and (c) develop highway sector institutional capability in Shanghai and Zhejiang. Major potential $260 million, IBRD impacts addressed in the EAs for sections of the new expressway included social disruption, noise, air $788 million, total project cost and water pollution, soil erosion and effects on irrigation systems through shifts in hydrological regime. Environmental Action Plans for the expressway specified the measures and organizational and monitoring arrangements to mitigate potential adverse impacts during the construction and operational phases. These primarily relate to control of construction traffic, operation of quarries, and waste disposal. Ecologically sensitive areas will not be affected. All resettlement activities affecting some 55,000 people will be carried out according to the project Resettlement Action Plans. Adequate provision has been made for ensuring compliance with the environmental protection measures incorporated within the engineering design and technical specifications for the expressway during both construction and operation. China Power Development Aims to help satisfy rapidly increasing electricity demand in south Viet Nam through: (a) construction of the Phu My 2 Combined Cycle (CC) power plant; (b) increasing high voltage (UV) transformation capacity at existing sub-stations; (c) facilitating private power provision; (d) strengthening institutional capacity within Electricity of Viet Namn (EVN); and (e) developing a strategy for rural electrification. $180 million, IDA The project covers only the first phase of the Phu My 2 CC plant (2 X 150 MW gas turbines which will $242 million, total project cost be converted to CC). However, the EA addressed issues relating to planned expansion of the plant, and construction of a 600 MW conventional gas-fired power plant at the same site. Environmental concerns included effects on air quality, impacts of cooling water abstractions from and discharges to an estuarine environment, impacts on mangroves and effects on local communities. The EA concluded that with proper design and mitigation measures, predicted impacts would be within acceptable limits. For example, although the gas turbines will initially bum distillate fuel oil and emit high levels of NOx before conversion to CC (once natural gas becomes available), ambient NOx will remain acceptable. EVN will establish an environmental unit and an environmental coordinator as part of the management structure of the power station. A Resettlement Action Plan was prepared for the 55 families affected by the project. China Second Shaanxi Provincial Highway Aims to continue support for development of road infrastructure to relieve congestion, and to enhance access in rural areas and to tourist sites. The project includes: (a) construction of 5 high-grade highways (from 6 - 73 km in length) and interchanges; (b) upgrading a 32 km highway; (c) improvement and construction of 4,100 km of rural roads to help alleviate poverty; and (d) institutional $210 million, IBRD strengthening and training of the Shaanxi Provincial Transport Department (SPTD). EAs and $557 million, total project cost Environmental Action Plans (EAPs) have been completed for the high-grade highways and link roads. Major anticipated impacts of these highways include resettlement (affecting 17,730 people), noise and air pollution (during construction and operation phases), alteration of hydrological regimes, soil erosion and local hydrology impacts during construction, impacts on cultural relics, and transportation of construction materials. Measures to mitigate impacts included preparation of resettlement action plans, careful selection of alignment, overpasses/underpasses to minimize social disruption, reconstruction of irrigation channels, water sprinkling to prevent dust during construction, construction of noise barriers and forest belts, and installation of double-glazed windows. Ecologically sensitive areas will not be affected. All rural roads involving new construction or widening/land acquisition will require an EA and EAP, otherwise an EAP will be adequate. Satisfactory EAs and EAPs for the first- years package of rural roads have been submitted. 95 Category A Projects, IBRD/IDA: Approved FY96 China Hubei Urban Environmental Protection This project finances investment in wastewater management, municipal solid waste management, and nightsoil handling and disposal facilities; helps to abate air pollution from cement, chemical, steel and pharmaceutical industries; and improves planning and financing of urban environmental services in the cities of Wuhan, Huangshi, Xiangfa, and Yichang. Although the project would have an overall $125 million, IBRD positive environmental impact, it has been assigned a Category A rating (primarily due to the four $25 million, IDA proposed sanitary landfills). EAs have been prepared for more than 20 sub-projects. Wastewater $370 million, total project cost collection and treatment projects have the objectives of improving public health and the quality of surface waters, some of which will serve as potable water sources. Treatment plants will be sited to minimize impacts on residential areas, and receiving waters. The solid waste management projects encompass construction of 4 landfills and various waste transfer stations. Measures will be included to minimize impacts of odors, traffic, leachate and noise. A Resettlement Action Plan has been prepared for temporary resettlement (137 families) and permanent resettlement of 39 families. China Second Shanghai Sewerage This project follows the first phase of Shanghai's development program to improve environmental conditions and management. Specific project objectives are to: (a) enhance wastewater and stormwater management through expanding the sewage collection network and constructing a new treatment plant and marine outfall; (b) reduce urban pollution while facilitating pollution control; (c) improve $250 million, IBRD wastewater utility financial and operational management; (d) and strengthen sector institutions through $633.3 million, total project cost training, feasibility studies, and future investment project preparation. The EA concluded that the project would have an overall positive environmental impact on water quality in the Huangpu and its tributaries, and the Changiiang estuary. No sites of ecological value or known sites of cultural heritage interest will be affected by the project. However, 4,924 people and 173 enterprises will be affected by land acquisition, and there will be some disruption during construction. Working practices will be controlled to minimize construction impacts, and a Resettlement Action Plan has been prepared for people affected by the project. Indonesia Kerinci Seblat Integrated Conservation Aims to secure the biodiversity of Kerinci-Seblat National Park (KSNP) and its boundary by (a) and Dev'lp integrating park management and conservation with local and regional economic development, and (b) promoting sustainable management and maintenance of permanent forest cover in adjacent areas. A Regional EA (REA) identified measures to protect the Park from logging, mining, encroachers, $19.1 million, IBRD poachers and road development, including boundary rationalization, and restriction of logging and $46 million, total project cost mining concessions to areas outside biodiversity zones. Park management and protection wil be strengthened, based on collaborative linkages with buffer-zone communities, and local NGOs and govemment agencies. The project will stabilize land use outside the park by promoting local- community and alternate livelyhood activities consistent with park conservation objectives, and by improving overall local land use to relieve pressure on the park. Biodiversity assessments in lowland forest concessions surrounding the park will contribute to better management of a permanent buffer zone in these areas. The project will strengthen regulatory guidelines for inter-provincial, regional planning; improve conservation awareness locally and in the govemment; provide training and extension services to villagers, park staff and local government staff; and monitor and evaluate biodiversity conservation, human impacts and sustainable development in and around the park. 96 Category A Projects, IBRD/IDA: Approved FY96 Indonesia Strategic Urban Roads Infrastructure The project encompasses road construction, urban management and quality of life improvements, institutional and human resource development, urban road program development, and policy articulation and implementation components. These components will assist the government in the decentralization process, strengthen technical and institutional capacity in urban transport policy and $86.9 million, IBRD management as well as reduce traffic bottlenecks in urban areas of the North Java corridor. The road $167.6 million, total project cost construction component is expected to have significant environmental impacts particularly on air pollution, noise, road safety and community severance. To address these impacts, a screening process was finalized by the Environmental Impact Management Agency and will provide a systematic approach to impact assessment, monitoring and management based on the type of sub-projects, their scale and location in relation to a range of sensitive environmental areas. The implementation of these procedures rests with central and provincial govemment agencies. Projects that may result in significant environmental impacts will require a detailed EA which is to be submitted to the Bank as part of a sub-project approval process. Philippines Manila Second Sewerage Aims to improve the quality of sanitation services in Manila by enabling the Metropolitan Waterworks and Sewerage System (MWSS) to: (a) expand its septage management program and improve sewerage services in Metro Manila (MM), and (b) reduce pollution in Manila's waterways and Manila Bay, thereby reducing health hazards from exposure to septage. Phase I involves deep sea disposal of $57 million, IBRD septage (up to 2003) prior to construction of land-based septage treatment plants in Phase 11, when $76 million, total project cost ocean dumping will be terminated. While the project is aimed at improving Manila's urban environment, possible negative effects identified in the EA included dust, noise, odor, and traffic (in the vicinity of treatment sites or barge loading facilities) and marine pollution. These impacts will be mitigated by MWSS through design measures (including provision of enclosed, ventilated buildings with deodorizing equipment at transfer stations; limiting working hours, vehicle speed and installing traffic signals; and disposal of dewatered sludge to sanitary landfills) supported by effective implementation of an environmental management plan. These measures are included in detailed design and contract documents. An ocean modeling exercise is underway to assess the anticipated impacts on the marine environment, and to refine acceptable conditions for ocean dumping. Thailand Fifth Highway Sector The project aims to: (a) establish a privately operated vehicle inspection system to encourage actions to reduce vehicular emissions, noise and accidents, notably in urban areas like Bangkok; (b) improve the inter-urban road network through widening and rehabilitation works to increase road capacity and improve safety standards; and (c) provide a systematic basis for establishing EA criteria at the design $150 million, IBRD stage, and environmental management standards during and after new road construction through a $450 million, total project cost sectoral EA (SEA). The vehicle inspection system supports the ongoing Royal Thai Govemment's Action Plan to Reduce Vehicle Emissions and Noise Pollution, and should have a positive impact on the environment. A sectoral EA (SEA) commissioned by the Department of Highways (DOH) established an EA process which will be applied to all new sub-projects to be financed under the project. All ongoing projects, which mainly involve rehabilitation and widening of roads on existing alignments or within rights-of-way without resettlement, have been screened in accordance with Bank procedures. 97 Category A Projects, IBRD/IDA: Approved FY96 Eastern Europe / Central Asia Albania Forestry The project aims to promote the institutional development of the forest-pasture administration in the areas of training, education, research and project management; seeks to improve management of state forests; rehabilitate forest roads; ameliorate management of both communal forests and pastures; and finally to improve management of protected areas. The harvesting operations through the existing road $8 million, IDA network are the thrust of the environmental concerns; namely form extractive and road rehabilitation $21.6 million, total project cost acitvities. The principal remedial acitons to minimize environmental impacts include the implementation of an Action Plan to reduce illegal forest harvesting which would be monitored by an independant party; developing the leadership capacity of the existing "Project Environmental Management Unity" in the areas of EIA guidelines pertaining to forestry, best management practices in road rehabilitation, individual forest management plans and institutional policy reforms. In addition, according to the recommendations of the fauna and floral inventory and monitoring acitvities, forest management plans will be adapted for sustainable use purposes. South Asia India Orissa Water Resources Consolidation The project aims to improve the planning, development and management of the state's water resources and increase agricultural productivity. Components of the project include upgrading viable infrastructure works, water planning, environmental management, resettlement and rehabilitation, indigenous people development, water sector research, agricultural intensification and strengthening $290.9 million, IDA the Department of Water Resources (DOWR) capabilities in management. A Sectoral Environmental $631.1 million, total project cost Assessment was conducted by DOWR staff and an independent Australian firm. The impacts of waterlogging, groundwater depletion and disease risks identified have already been considered in the overall investment program. In addition to these specific measures, is a comprehensive set of actions to improve DOWR's environmental capacity to monitor, plan, develop and manage water resources from an environmental and social perspective. These actions are summarized in the Environmental Action Plan which is entirely funded by the project. India Private Infrastructure Finance The project will assist Infrastructure Leasing and Financial Services Limited (ILFS) in financing development initiatives such as bridges, bypasses, port facilities, water supply and effluent treatment as well as integrated area development projects. The series of sub projects will be implemented on a build-operate and transfer basis and will have management, investment, training and technical $200 million, IBRD assistance components. Most sub-projects are at a preliminary developmental stage and will be ready $5 million, IDA for implementation in the next three years, however, a few will be implemented in the next 18 months. $1.6 million, total project cost To address the potential environmental impacts, ILFS has prepared an Environmental and Social Report (ESR) which provides the necessary framework to identify, assess and manage environmental concerns at the organizational and project levels. The ESR is compatible with the Bank's EA process. 98 Category A Projects, IBRD/IDA: Approved FY96 India Bombay Sewage Disposal The project aims to strengthen the capacity of the Municipal Corporation of the Greater Bombay's (MCGB) Water Supply and Sewerage Department (WSSD) to manage provision of sewerage services, sustain the financial viability of these services through direct charges to beneficiaries at appropriate levels, and improve health and environmental conditions in Greater Bombay. The specific components $167 million, IBRD of the project are; construction of two 3 km tunnels, a pumping station, two aerated sewage treatment $25 million, IDA lagoons, and the rehabilitation of existing infrastructures, (one tunnel, five pumping stations and $259.6 million, total project cost conveyance systems). It also involves technical and social services to assist project implementation, upgrade MCGB's operational and maintenance capabilities, and design a program to enhance health and environmental conditions. Environmental and social impacts generated by the construction and operation activities (dust, noise, vibration disturbance, air pollution, traffic, loss of 40 ha of mangroves for site clearance) have been addressed by the National Environmental Engineering Research Institute's EA process. This included a variety of technical studies, public consultation and the development of environmental mitigation and monitoring plans. The project is expected to result in significant improvements in health, quality of life and coastal water quality. Pakistan Ghazi-Barotha Hydropower The physical components of the project includes a barrage on the Indus river, a power channel designed to convey water from the barrage to the power complex, a power house, and power transmission facilities operated by the Water and Power Development Authority (WAPDA). This major infrastructure scheme is being supplemented by a technical assistance component, an environmental $350 million, IBRD and social program respectively supported by an Intemational Independent Panel of Experts and an $2250 million, total project cost Environment and Resettlement Review Panel. The potential environmental impacts include changes in land use in areas acquired for the project; reduction in the flow of a small proportion of the main channel of the Indus river; impacts on cultural heritage (religious and archeological sites); and safety issues related to people or livestock trespassing the power channel or transmission lines areas. Mitigation measures are specified in a comprehensive Environmental and Resettlement Management Plan which include: establishing a Public Information Center at the project site; obtaining assistance of a project NGO and independent consultants to monitor resettlement and implementation of environmental mitigation measures; implementation of an integrated Regional Development Plan to support locally based economic activity; and continued support from the independent Environment and Resettlement Review Panel. Sri Lanka Private Sector Infrastructure The objective of the project is to develop a modem and efficient infrastructure system by promoting Development private sector involvement through an enhanced public sector management capacity and the establishment of a facility for the placement of long-term debt. Four major areas of infrastructure development have been targeted: provision of power, toll roads, ports and urban services (water, waste $70 million, IDA water and solid waste). Since no specific subprojects have been identified, EAs are not yet available, $232 million, total project cost however, it is expected that most large scale infrastructure schemes will generate environmental concems. These concems will be addressed according to the framework provided in the Private Sector Infrastructure Development Company's operational manuals. Subprojects will be eligible for funding after being appraised. These appraisals must meet IDA's requirements which are derived from the Bank's EA process. 99 Category A Projects, IFC: Approved FY96 Africa Uganda Kasese Cobalt Company Limited Increase cobalt production by extracting 1000 tons from stockpiled concentrates at an old copper mine. Environmental issues include: water supply and management for process water and hydroelectric power, tailings disposal following reprocessing, dust control, noise impacts from reprocessing and quarry $19.6 million, IFC operations, site reclamation, resettlement, and public consultation and disclosure. Reprocessed tailings $5 million, syndications will be placed in new engineered tailings dams, and land reclamation will be phased throughout the $110 million, total project cost project's lifetime to reduce erosion and dust generation. Process water will be recycled, and any excess will be neutralized prior to discharge. Land users will be compensated for the hydroelectric plant transfer canal right-of-way. The sponsor will provide water taps for local use. Noise effects on residents near the project's limestone quarry will be mitigated by using conventional excavating techniques, and, when blasting is required, limiting blasting to once per week and using low burden explosives. Approximately 200 squatters living in huts on the polluted sediment trails were relocated in 1992 and compensated by the municipality (funds for compensation were provided by the sponsor). Zimbabwe Zambezi Safari Lodges (Private) Limited Construct and manage two luxury lodges 40 km from Victoria Falls on the Zambezi River. Key (AEF) environmental issues associated with this project include site selection, impacts on sensitive ecosystems and wildlife, water supply, waste disposal, sewage disposal, power supply, impacts associated with a1.3 million. IFC secondary development, and fire protection. The lodges will be constructed on the site of a former hunting $1.3 million, total project costconcession. Replacement of hunting with photographic safaris is expected to encourage a retum of wild *4.5 million, total project cost game, including endangered species, to the area. Lodges will be sited and boardwalks constructed to avoid impacts to fragile soils and preserve natural drainage pattems. Landscaping will make exclusive use of plant species endemic to the region. Health services and water supply will be available to guests and staff. Solid and domestic wastes will be disposed of either on site or through municipal facilities in Victoria Falls. Fire prevention plans include development of fire breaks to protect the lodges and prevent the potential spread of fires, as well as installation of alarm systems and extinguishers. The project complies with all requirements of the Department of National Parks and Wildlife Management. East Asia / Pacific China Caltex Ocean Gas and Energy Limited Build and operate a cavem storage and terminal facility with 200,000 cubic meter capacity for liquefied petroleum gas. Environment, health and safety issues include site locations, previous and existing land use, impact on the marine and terrestrial environment, wild life and coastal resources, fire and explosion $31.3 million, IFC prevention, emergency response, and public consultation and disclosure. The project is located within the $66 million, syndications Shantou Economic Development Zone. The site, on the coast in an area characterized by granite $146 million total project cost formations with very sparse vegetation, will see low-density use and impact on the terrestrial environment will be limited. The sea bed around the terminal and jetty does not have unusual ecological value. The terminal area is not used by local villagers or fishermen and no resettlement will be necessary. The terminal will be designed to withstand potential seismic activities in the area. Further, a protective granite hill is located between the facility and residential areas. Public consultation on the general development of the area has been carried out by the local authorities. 100 Category A Projects, IFC: Approved FY96 Maldives Villa Shipping and Trading Company Develop and operate a 300-room island resort hotel at Sun Island. Environmental, health and safety issues Private Ltd. associated with this project include site selection, protection of coastal resources, liquid effluent, solid wastes, land use, fire protection and life safety. The sponsor has prepared a detailed Environmental Impact $6 million, IFC Assessment (EIA). The Sun Island resort will be one of the first resorts to operate an advanced secondary $26 millin total project cost treatment facility. Solid waste will be disposed of by composting and a high temperature incinerator. $26million, aProvisions for fire and safety will be in accordance with World Bank guidelines. Villa Shipping & Trading Company's diving school rigorously follows a reef diving code which includes strict policies to prevent damage to coral reefs. Nepal Bhote KoshiPower Company Private Ltd. Build, operate and transfer a 36-megawatt run-of-river hydroelectric plant I 10 kilometers from Katmandu. The sponsors have prepared a detailed environmental impact assessment and have undertaken extensive public consultation. As the project is a small run-of-the-river project and the topographic nature of the $24 million, IFC project site comprises steep rocky cliffs and limited river terraces, the social and ecological impacts are $27 million, syndications limited. The amount of land to be required is small. Fair compensation will be provided to affected $98.2 million, total project cost families, and altemative plots of land provided if preferred. With respect to downstream impacts, fishing is not popular in the project area and the number and diversity of fish is low. Sufficient flow will be maintained during the spawning months and snow trout fingerlings will be released annually after construction, to ensure a healthy population. The environmental impacts and effectiveness of mitigation measures will be regularly monitored. Thailand Thai Petrochemical Industry Public Expand and integrate polymer production facilities. Environmental and occupational health and safety *Company Ltd. issues associated with this project include land use, air emissions, liquid effluents, solid wastes, hazardous material storage and disposal, spill prevention, fire and explosion safety, emergency response and $100 million, IFC employee exposure to chemical substances. The company's existing facilities have already implemented $400 million, syndications the necessary mitigation measures to comply with World Bank guidelines. The company will ensure that $2028 million, total project cost no virgin coastal lands are converted for industrial use. To comply with World Bank guidelines, fuel use will be limited to cleaner fuel sources. The existing wastewater treatment plant will be expanded to handle the additional effluent from the plant expansion. The company has invited public participation in project planning, and has committed to community development activities in the area, including provision of electric power to selected low-income neighborhoods and establishment of a technical institute with a projected enrollment of 900 students. 101 Category A Projects, IFC: Approved FY96 Vietnam Morning Star Cement Develop and operate a cement plant and mixing and distribution terminal with a capacity of 1.8 million tons a year. Dredging operations in a sparsely populated coastal area are required to make the plant's captive port operational. Channel design and dredging procedures will minimize the impact of the initial $30 million, IFC dredging required. During operation the port will have a negligible impact on the environment. Clearance $66.6 million, syndications of the terminal site required relocation of 35 families. Relocation and associated compensation was done $309 million, total project cost to the satisfaction of the families involved, and with the full knowledge and cooperation of the local authorities. Equipment and procedures will allow the plant as well as the terminal to meet World Bank guidelines for air and liquid emissions, spill prevention, and employee exposure to noise and dust. Eastern Europe I Central Asia Kazakstan Kazgermunai Develop the reservoir of an oil field in Akshabulak to produce 23,000 barrels a day peak production. Environmental issues associated with this project include site contamination as a result of previous activities, the management of produced gas and water, impacts on groundwater resources, erosion and $65.7 million, IFC dust, as well as oil spills. A detailed EIA has been prepared for the project which indicates that site $266.9 million, total project cost contamination as a result of previous activities is limited and localized and the aforementioned associated impacts can be mitigated to acceptable levels by employing industry best practices. The EIA process included consultations with local populations and govemment authorities. Uzbekistan Amantaytau Goldflelds A. O. Develop gold deposits in the central desert to produce an estimated 5 million ounces over the mine's life. The sponsor has prepared a full and detailed Environmental Impact Assessment (EIA), considering key environmental and occupational health and safety issues such as: process water supply and effects on $58.8 million, IFC regional water resources; location of tailings impoundment with respect to surface watercourses; acid $85 million, syndications generating potential of waste rock dumps and low grade stockpiles; and mine decommissioning and $355 million, total project cost reclamation. The project is located in a remote area of the Kyzylkum desert. Consultation and disclosure is occurring with local communities at Zarafshan and Daugystau in accordance with the local EIA process. The sponsors have committed to an environmental management and monitoring plan for the project and will operate the project in compliance with World Bank policies on environment, health and safety. 102 Category A Projects, IFC: Approved FY96 Latin America / Caribbean Argentina Grupo Concesionario del Oeste, S.A. Build, upgrade and maintain a toll road to connect central Buenos Aires and western suburbs. Environmental issues associated with the project include right of way (including resettlement), air quality, noise, and water quality. The sponsor and the Government of Argentina developed and implemented a $35 million, IFC resettlement plan, which included compensation. Construction of the toll road will provide significant $130 million, syndications improvements to the flow of traffic through the corridor, which will result in a substantial decrease of air $272 million, total project cost emissions, especially carbon monoxide, and to a lesser extent nitrogen oxides, lead, and particulate matter. The concession requires the sponsor to operate an air monitoring program which will take place before, during, and after the construction of the toll road. Noise mitigation has been included in the design of the roadway. Other neighborhoods previously subjected to high levels of traffic noise will experience an improvement in conditions as traffic is diverted to the new toll road. Safety barriers will also help to reduce noise impacts. The highway design and construction plan incorporated measures to reduce disturbance to drainage patterns and erosion into surface waters. Bolivia Compania Minera del Sur, S.A. Develop a gold mine to produce 33,000 ounces of gold a year. Environmental issues associated with this project include impacts on surface and ground water, land disturbance, and social impacts. The sponsor has prepared an environmental impact assessment (EIA) for the project and has engaged in the necessary $8.3 million, IFC public consultations. This EIA demonstrates that the open pit, process facilities, waste rock piles and $5 million, syndications tailings dam will be operated so that there will be no impacts to surface and ground water. Land '22 million, total project cost disturbance will be minimal and the project includes a comprehensive land restoration program upon closure. The EIA indicates that the project's social impacts are positive including the provision of electricity to the adjacent community of San Roman. Middle East I North Africa Egypt Apache Oil Egypt Inc. & Phoenix These two projects develop and continue to explore the Qarun oil and gas concession in the western Resources Co. desert. Key environmental issues include: alignment of pipelines, the management of produced water and gas, oil spills, impact on ground waters and dust. The project sponsor prepared an EIA which addresses $47.5 million, IFC these environmental issues. It concludes that potential environmental impacts can be mitigated. The $45 million, syndications project pipeline, for example, has been routed so as to avoid antiquities. $154 million, total project cost 103 Category A Projects, IFC: Approved FY96 South Asia Pakistan Uch Power Limited Build, own and operate a 586 megawatt gas-fired, combined cycle power plant. Environmental issues include siting considerations, air quality impacts, liquid effluents, water supply, socio-economic impacts and worker safety. The site was selected for its proximity to the Uch gas field and water supply (the Pat $56 million, IFC Feeder Canal), the potential benefits to Balochistan residents; and its accessibility via a major highway and *11- million, syndicatios railway line. Air emissions will meet Government of Pakistan (GOP) and World Bank guidelines for S02, $630 million, total project cost NOx, and particulates. The zero discharge design, developed in consultation with IBRD, will not adversely impact surface water or groundwater in the project area. The site is unoccupied, although used occasionally by Jamali herdsmen for grazing. Consistent with the World Bank policy, GOP Land Acquisition Act of 1894 and the 1983 GOP Land Acquisition Rules, the sponsors are in the process of transferring title to the project. Local people will be trained and hired to the extent possible. An occupational health and safety program, which includes medical monitoring, will minimize exposure to noise and chemicals. Fire protection plans and equipment meet international standards. Extensive consultations with effected parties, including the GOP, Government of Balochistan (GOB), district and municipal officials as well as officials and representatives of the Jamali Tribe, were conducted during preparation of the EIA. Pakistan AES Pak Gen (Private) Company Build, own, and operate a power plant with a capacity of 337 megawatts adjacent to the AES Lal Pir power project near Multan. The environmental issues associated with this project include air emissions, water supply impacts, and establishing adequate fuel decanting procedures and containment measures. The PAK $29.5 million, IFC Gen project will have a scrubber to reduce SOx emissions, water supply impacts will be contained through $50 million, syndications proper treatment of water and the use of well water, and, the sponsor has already begun discussions with $349 million, total project cost the fuel supplier towards implementing best practices measures at the fuel decanting facility. The project sponsor has prepared an EIA for the project and is continuing with the public consultation program initiated with the Lal Pir project. 104 Global Environment Facility Investment Work Program The following table presents the World Bank's GEF-supported investment operations approved by the GEF between July 1, 1991 and June 30, 1996 (FY92-96), and which were under implementation during FY96 (July 1, 1995 through to June 30, 1996). The Bank, as a GEF implementing agency, supports operations addressing four environmental issues: management of biological diversity, climate change, protection of international waters, and ozone layer depletion. In addition to information on the GEF-supported projects themselves, the table gives the titles in italics of associated IBRD/IDA (or other) loans and credits when a GEF project forms part of a larger World Bank-assisted initiative. The World Bank-GEF portfolio includes projects implemented not only by IBRD and IDA, but in some cases by the International Finance Corporation (IFC) and other multilateral development banks like the Inter-American Development Bank (IDB). The difference between the GEF grant amount and total project cost is financed by domestic public and private, multilateral, bilateral and NGO sources. For more detail on the status and associated partnerships for these projects, please refer to the GEF's Quarterly Operational Report, available at the GEF Secretariat (202) 473-1128, or look for the information on the Environment Department's Web page at http:Hlwww- esd.worldbank.org/html/esd/env/envmain.htm. 105 Global Environment Facility Investment Work Program Country/Project/ lmplementing Agency/ Bank Approval/ Associated Task Managerl GET Grant / Bank Project Project Description Project Status Total Project Cost AFRICA Biodiversitr Regional (Burkina Faso, Community-based wildlands and wildlife rehabilitation, utilization and World Bank 09/95 Cote d'Ivoire) conservation programs based on the "gestion de terroirs" approach will be West Africa Pilot developed and implemented at three sites totalling 4,800 square kms in the Pav 0 Community-Based Comoe ecosystem in southwestern Burkina Faso and northern Cote d'Ivoire, vy Natural Resource and an area recognized as one of the most important remaining natural savannah Active 13.2 Widlife Management ecosystems in the region. The project comprises: (a) land use planning; (b) community land management; (c) capacity building and training; (d) habitat improvement and animal herd reconstruction; and (e) sustainable subsistence and commercial utilization of wildlife. Cameroon Participatory biodiversity conservation plans will be developed and World Bank 03/95 Biodiversity implemented for eight sites in the species-rich lowland forests of south-east Heimo Conservation and Cameroon and parts of the northern savannah ecosystem. The capacity of 6.0 blanagement natural resource management institutions will be strengthened through Active 12.4 financing zoological and biological inventories, by providing equipment, training and technical assistance, and through 'twinning' between the National Herbarium and the Kew Botanical Gardens and the National Herbarium of France. Congo Development and implementation of management programs for five tropical World Bank 12/92 Wldiands Protection forest ecosystems in the Congo, representative of the country's great 10.0 and Management ecological diversity and wealth. To achieve this objective, the project funds Chaeuf biodiversity inventories, the preparation of natural resource management Active 16.8 plans for each site, training of supervisory staff and guards, and studies of the impact of the indigenous people on the environment and of how negative impacts can be mitigated. Ghana Design and implementation of a Coastal Zone Management Plan to protect World Bank 08/92 Coastal Wetlands five environmentally-sensitive and threatened coastal Ramsar sites of global Mensah 72 Management importance for migratory birds. The project includes: (a) monitoring of ecological conditions at the sites; (b) preparation of management programs Acsive 8.3 Environmental Resource and the training of site managers and wardens; and (c) relocation of a Management Project sewage plant outlet that would have discharged into Sakumo Lagoon. Malawi Lake Malawi, Africa's third largest lake, is a unique freshwater ecosystem, World Bank 12/94 Lake Malawi/Nyasa home to over 500 endemic species of fish. The project will conduct faunal 5.0 Biodiversity surveys, identify biodiversity hotspots, prepare a conservation and Donovan Conservation management plan for the lake, recommend revisions to national Active 5.4 environmental legislation, and fund environmental training and education activities. Parallel Canadian project (C$4.2m) will finance capacity- building for research through twinning with a Canadian institution, limnology and water quality monitoring, laboratory equipment and public education. Mauritius This project will continue efforts to restore degraded habitat on Rodrigues, World Bank 11/95 Biodiversity Restoration Ile aux Aigrettes and Round Island. It will propagate and reintroduce critically endangered flora and fauna on these three islands, and strengthen Post 1.2 local technical and administrative skills for conservation and ecosystem Active 1.6 restoration. 107 Global Environment Facility Investment Work Program Country/Project/ Implementing Agency/ Bank Approval/ Associated Task Manager/ GET Grant / Bank Project Project Description Project Status Total Project Cost Seycheles Biodiversity conservation component comprises: (a) the restoration and World Bank 11/92 Biodiversity preservation of the ecosystem of Aldabra AtoDl by strengthening Conservation & Marine conservation management and scientific research and control of feral goats; LundinTeymouriam 1,8 Pollution Abatement and (b) a protection program for the Green and Hawksbill Turtles. Marine Active 2.0 pollution component covers the analysis of the steps needed to comply with Environment and MARPOL standards for ship waste treatment and actions required to control Transport Project polution from commercial shipping, fishing and leisure craft. Uganda The project will establish a trust fund, the income from which will provide a World Bank 01/95 Bwindi Impenetrable sustainable source of funds for the management of the Bwindi Impenetrable Ki4.0 National Park & Forest and Mgahinga Gorilla National Parks and the conservation of their Mgabinga Gorilla biodiversity. A Trust Management Board, representative of local Active 4.9 National Park communities, NGOs and the government will allocate the fund's net income Conservation to selected park management, research and community development projects. Climate Chanae Mali The project addresses both the demand for and supply of household energy World Bank 06/95 Household Energy in a country where people depend heavily on environmentally-damaging Sefta 2.5 woodfuels. Consumption of these fuels wil be reduced by promoting the use of more efficient stoves and through substituting woodfuels with Active 11.1 Second Power Project kerosene and bottled gas through technical assistance and credit to manufacturers and marketers. In paralel, forest planning and management wil be strengthened through training and technical assistance. Mauritius Development and testing of technologies for gathering, storing and using World Bank 02/92 Sugar Bio-Energy sugar cane tops, leaves and residues as fuel to expand power generation by Tra Technology existing sugar mills. Assessing options for reducing the cost of bagasse transport and thereby also expanding its use as a generating fuel. Providing Active 55.1 Sugar Energy technical assistance to a Bagasse Energy Development Program coordinated Development Project by the Mauritius Sugar Authority which will develop a program to fully tap the long-term potential of power generation from sugar cane waste. International Waters Regional (Kenya, The project, including associated IDA financing, wil address the major World Bank 07/96 Tanzania, Uganda) threats facing the Lake Victoria ecosystem, including overfishing, Lake Victoria eutrophication and algae levels, other forms of pollution, and introduction of Donovan 35.0 Envirornmental invasive exotic species like the water hyacynth and various fish species. Management Actions to be taken include (a) regional cooperation in fisheries research, Active 77.8 extension and management; (b) research and monitoring of water quality Lake Victorca and poDlution, strengthening and harmonization of regulatory, incentive and Environmental enforcement systems concerning pollution, and priority investments in waste management; (c) monitoring and sustainable use of wetlands; (d) control of water hyacinth; (e) management of land use in the catchment. including information collection, pollution assessment and pilot projects in soil conservation and afforestation; and (f) support for policy initiatives, insititutions for lake-wide research and management, and pollution disaster contingency planning. 108 Global Environment Facility Investment Work Program Country/Project/ Implementing Agency/ Bank Approval/ Associated Task Manager/ GET Grant / Bank Project Project Description Project Status Total Project Cost EAST ASIA AND THE PACIFIC Biodiversit' China In accordance with China's NEAP and BAP priorities, this project will World Bank 06/95 Nature Reserves prepare and implement management plans in five priority protected areas, Shen/Scobey 17.9 Mangement train staff, fund physical investments, and work with communities adjacent to and within PA boundaries to create incentives for sustainable resource Active 23.6 Forest Resource use. A second component will restructure a major timber industry in Development & Protection Changqing to promote sustainable forestry, and create a core protected area of giant panda habitat, surrounded by a limited-use productiontbuffer zone. The project wiDl build technical and managerial capacity of DNR through developing a national training team for biodiversity. It wiUl fund a national nature reserve plan, equipment, policy studies and operational research, and set up an information management system. Indonesia Project strengthens the capacity of the Research and Development Center for World Bank 06/94 Biodiversity Collections Biology (PPPB) to manage systematic collections, including the Gapasin Z2 establishment of a computerized database which wil serve as a basic reference tool for biodiversity inventory and monitoring. Potential Active 11.4 information users in other sectors will provide advice on database development. Specific components include human resource development, collections maintenance and development, improvement of research facilities, and publications and user products. Indonesia The project will secure the future of the biologicaly rich, I miUion ha. World Bank 04/96 Kerinci Seblat Kerinci-Seblat National Park by integrating park management and Silverman 15.0 irtegrated Conservation conservation with local and regional development. Park management and and Development protection will be strengthened, based on coUaborative linkages with buffer- Active 47.2 zone communities, and local NGOs and governments. The project wiU Kerinci-Seblat Integrated stabilize land use outside the park by promoting local-community and Cons. & Dev. Project alternate livelihood activities consistent with park conservation objectives, and by improving overaU local land use to relieve pressure on the park. Biodiversity assessments in lowland forest concessions surrounding the park wull contribute to better management of a permanent buffer zone in these areas. The project wiU strengthen regulatory guidelines for inter-provincial, regional planning; improve conservation awareness locaUy and in the government; provide training and extension services to villagers, park staff and local government staff; and monitor and evaluate biodiversity conservation, human impacts and sustainable development in and around the park. Lao PDR The project will protect biological diversity through the designation, World Bank 02/94 Wildlife & Protected establishment and management of priority protected areas, the protection of Areas Conservation associated wildlife, and the planning and implementation of co=mnity Shen 5.0 participatory programs in and around protected areas. Components include Active 20.3 Forest Management and the establishment and management of at least four protected areas, technical Conservation Project assistance and conservation training with particular emphasis on the recruitment of NGOs for community mobilization, environmental monitoring and evaluation, and the design of a conservation trust fund for long-term financing. 109 Global Environment Facility Investment Work Program Country/Project/ Implementing Agency/ Bank ApprovaU Associated Task Manager/ GET Grant / Bank Project Project Description Project Status Total Project Cost Philippines Support for government efforts to establish a core National Integrated World Bank 05/94 Conservation of Priority Protected Area System (NIPAS) for ten sites over a seven year period, h Protected Areas through financing site development and resource management. The project Shen 2.9 (DENR) promotes participation of local communities in site management, and Active 17.1 (NIPA) Env. & Nat. Resources strengthens national capacity for coordination and monitoring. The Sector Adj. Prgm. Department of Environment and Natural Resources (DENR) received a 22.9 grant to strengthen park infrastructure and services, and a national NGO consortium (NIPA) received a grant to provide technical assistance services and administer a livelihood fund for local communities. Climate Chanae China Rehabilitation of gas transmission and distribution systems to eliminate World Bank 03/94 Sichuan Gas methane gas losses and improve pipeline network performance. Main 10.0 Transmission and components wil focus on safety and operational efficiency of the Morsli Distribution transmission and distribution system, and selection of cost effective Active 122.7 Rehabifltation measures to reduce gas leakages through a program of environmental upgrades. The associated Bank project includes a gas pricing reform Sichuan Gas Development program which wil encourage efficiency and conservation in gas and Conservation Project consumption in the future. Philippines Project seeks to assist in meeting the rapidly increasing demand for electrical World Bank 05/94 Leyte_Luzon Geothermal power using technology that substantialy reduces greenhouse gas (GHG) Inarhadi 30.0 emnissions. The National Power Corporation (NPC) components of the rvng/Fhan project include the interconnection of electrical power systems of Leyte and Active 1,333.6 Leyte/Luzon Geothermal Luzon Islands and the strengthening of the environmental and social Project engineering departments of NPC. The Philippine National Oil Company (PNOC) components of the project include the construction and operation of a 440 MW geothermal electric generation plant under a BOT contract, reinjection of waste gases to further reduce GHG emissions, and connection of the power station to the national grid. Thailand Project comprises a five year demand side management plan, which seeks to World Bank 04/93 Promotion of Electricity build institutional capability in the Thai electric power sector and Energy Effidency throughout the economy. Will pursue policies and actions leading to the Mehta 9.5 development, manufacturing, and adoption of energy efficient equipment Active 89.0 Distribution System & and processes. Project will demonstrate potential savings, both financial and Energy Efficiency Project environmental, from reducing the use of fossil fuels for electricity production and will demonstrate the potential of the electric power sector to achieve these savings. International Waters China This project combines GEF, IDA and local financing to reduce polution in World Bank 05/92 Ship Waste Disposal international and territorial waters caused by ship wastes. It provides technical and financial assistance to the Government of China and six port Tsutsumi 30.0 authorities, selected as models, for the construction and/or rehabilitation and Active 64.8 Ship Waste Disposal expansion of ship waste disposal facilities. The project includes both Project national and individual port components. 110 Global Environment Facility Investment Work Program Country/Project/ Implementing Agency/ Bank Approval/ Associated Task Manager/ GET Grant / Bank Project Project Description Project S&aus Total Project Cost EUROPE AND CENTRAL ASIA Biodiversitv Belarus This project aims at conservation planning and research outreach programs World Bank 09/92 Biodiversity Protection for the Belovezhskaya Forest, Berezinsky and Pripiatsky Reserves. It S complements the Poland Forest Biodiversity project. tephenson 1.0 Active 1.3 Czech Republic This project protects ecosystem biodiversity in three representative World Bank 10/93 Biodiversity Protection ecosystems (zones containing alpine meadows, lowland forests and wetlands), and supports the activity of three transnational biodiversity Battaglini 2.0 protection networks. It also introduces user fees and related charges for Active 2.8 visitors and concessions in order to manage the areas in a financially sustainable manner and within their carrying capacity. Poland The project has initiated programs to conserve the biodiversity of key World Bank 12/91 Forest Biodiversity endangered forests and is providing institutional support to the Ministry of . . Protection Environment, Natural Resources and Forests to undertake biodiversity Bauaglni 4.5 conservation management activities. Innovative features include the Closed 6.2 establishment of a gene bank and arboreta to protect genetic diversity and to provide plants for reforestation in areas degraded by pollution. Romania The project aims to protect the Romanian Delta ecosystem and contribute to World Bank 07/94 Danube Delta the conservation of biodiversity within the Delta. It wil strengthen Biodiversity institutional capacity to monitor and manage protected areas effectively, Luca 4.5 work with local community groups to ensure sustainable resource use and Active 4.8 restore some wetlands to their natural condition by testing various approaches and monitoring their impact. Russian Federation This project consists of three components: (i) National Strategic Overview World Bank 05/96 Biodiversity (formulation of a national biodiversity strategy, establishment of a 20. Conservation biodiversity databasefinformation system, and preparation of guidelines on Bond economic evaluation of biodiversity investments and policies); (ii) Nature Active 26.0 Environnental Protection (institutional support, training, immediate assistance to critical Management Project PAs, and model ecotourism projects); and (iii) Integrated Regional Development/Natural Resource Management in the Lake Baikal Region. Slovak Republic This project in the Morava floodplain, Tatras forests, and Eastern World Bank 09/93 Biodiversity Protection Carpathians is developing management techniques for a biodiversity protection program, a conservation program to develop revenue generation Battaglini 2.3 mechanisms for the protected area system, and a program to provide support Active 3.2 for project management coordination at the national level and at the three selected zones. Innovative features include an environmental NGO small grants program, and the development of a tri-national trans-border trust to maintain the coordinated management of the international biosphere reserve in Eastern Carpathians. Turkey This project wil identify and establish in-situ conservation areas for the World Bank 02/93 In-Situ Conservation of protection of genetic resources and wild relatives of important crops and Genetic Biodiversity forest tree species that originated in Turkey, providing for sustainable in-situ Durutan 5.1 conservation of genetic resources in cereals, horticultural crops, medicinal Active 5.7 Eastern Anatolia plants, forest trees, and pasture grasses and legumes through an integrated Watershed Rehab. Project ecosystem approach. Project components include site surveys and inventories, gene management zones, data management, a national plan for in-situ conservation, and institutional strengthening. 111 Global Environment Facility Investment Work Program Country/Projectl Implementing Agency/ Bank Approval/ Associated Task Manager/ GET Grant / Bank Project Project Description Project Status Total Project Cost Ukraine This project aims to protect the Ukrainian Delta ecosystem and contribute to World Bank 06/94 Danube Delta the conservation of biodiversity in the Delta. It will strengthen institutional Biodiversity capacity to manage protected areas effectively, working with local Stephenson . community groups to ensure sustainable resource use, and restoring some Active 1.7 wetlands to their natural condition. The project complements the Romanian Danube Delta project. Ukraine Part of the tri-country Transcarpathian Network, the project supports a World Bank 07/93 Transcarpathian biodiversity protection program (inventory, genetic studies, GIS critical Biodiversity Protection habitat analysis), a management resources program to enable coordinated Stephenson .5 management of the discontinuous reserved areas of the Carpathians Active .6 Biosphere Reserve, and training and institutional strengthening programs. Climate Chanoe Lithuania This project helps to finance construction of a demonstration geothermal World Bank 05/96 Kliipeda Geothermal plant to provide hot water to the Klaipeda district heating system, as well as Halldin 6.9 Demonstration modifications to the heating system to render it compatible with geothermally heated water. It will reduce annual C02 emissions by an Active 18.0 Kiaipeda Geothermal estimated 56,000 tons, and reduce S02, NOx and TPM emissions Demonstration Project significantly too. Poland The project expects to demonstrate interfuel substitution and technological World Bank 11/94 Coal-to-Gas Project innovation as a means of reducing C02 emissions. GEF funds will be used Bn ud 25 to extend coal-to-gas conversions to medium-size boilers whose owners enmessao .0 could not achieve acceptable financial rates of return without concessional Active 48.3 Heat Supply Restructuring financing. and Conservation Project Russian Federation This project will develop analytical techniques for identifying and World Bank 12/95 Greenhouse Gas quantifying the principal sources of greenhouse gas emissions in the 3.2 Reduction production, transport and utilization of natural gas. It wiDl also develop Stuggns methodologies for ranking the most cost-effective projects for reducing GHG Active 130.9 Gas Distribution Rehab. & emissions, define the criteria for asessing eligibility and incremental costs, Energy Efficiency Project and strengthen the institutional structures and the technical capabilities required to apply the techniques in planning and implementation. Ozone Depletion Bulgaria Sixty-five percent of Bulgaria's 1993, annual, weighted ozone-depleting World Bank 11/95 Ozone Depleting substance consumption will be phased out (468 metric tons ODP) through Sarkar 10.5 Substances Phaseut sub-projects in the refrigeration, foam-blowing and solvents sectors. A recycling and servicing component will phase out further ozone-depleting Active 13.5 substances already in use in refrigerator, and a third component will strengthen the national Phase-out Task Force. Czech Republic The project will eliminate production of chlorofluorocarbons (CFCs) in the World Bank 08/94 Phaseout of Ozone Czech Republic. It will establish a national refrigerant recovery/ Kosmo 2.3 Depleting Substances reclamation/recycling program. It will phase out CFCs in certain commercial, industrial and transport refrigeration systems, as well as Active 4.1 introduce low and non-ozone-depleting foam technologies. Hungary Over half of Hungary's 1993, annual, weighted ozone-depleting substance World Bank 11/95 Psaseout of Ozone consumption will be phased out (approx. 1150 metric tons ODP) through 13 Kosmo 6.9 Depleting Substances subprojects in the solvents, foam, aerosol, halon and refrigeration sectors, and through a recovery, recycling and reclamation component. Active 8.4 112 Global Environment Facility Investment Work Program Country/Project/ Implementing Agency/ Bank Approval/ Associated Task Manager/ GET Grant / Bank Project Project Description Project Status Total Project Cost Russian Federation The first of three groups of sub-projects in the GEF-supported Russian ODS World Bank 05/96 Phaseout of Ozone Phaseout Program, this project will eliminate annual consumption of Batstone 86 Depleting Substances approximately 2573 metric tons of weighted, ozone-depleting substance (first tranche) potentiaL or about 5% of Russia's 1992 weighted consumption, through (a) Active 21.3 replacing CFC propellant with hydrocarbon aerosol propellant in a major spray-products enterprise and (b) replacing CFC- 12 with a propane/butane nmixture in a refrigeration products enterprise. Slovenia This project wil phase out approximately 36% (345 metric tons ODP) of World Bank 11/95 Phaseout of Ozone Slovenia's 1993, annual, weighted ozone-depleting substance potential Kosmo 6.2 Depleting Substances through six subprojects in the refrigeration, foams, aerosol and solvent sectors. Active 9.7 LATIN AMERICA AND THE CARIBBEAN Biodiversitv Bolivia This project will protect representative samples of diverse and threatened World Bank 11/92 Biodiversity ecosystems, and strengthen the government's institutional capacity to protect Plaza Conservation Bolivian biodiversity. Specific components of the project include support for the organization, implementation and foUlow-up of a National System of Active 8.4 Protected Areas (SNAP) and the establishment of new priority protected areas. In addition, the project wiU include the development of alternative management systems for the protection of natural resources in buffer zones, the development of monitoring and evaluation systems, and adminstrative support. Brazil The project, to be managed by the Ministry of the Environment (MMA), will World Bank 04/96 National Biodiversity consist of (1) a series of workshops to set biome-level priorities for Sobrevila 10.0 Project biodiversity conservation and development of a national biodiversity strategy, (2) establishment of a national biodiversity information network, Active 20.0 National Environment and (3) funding of model biodiversity projects involving various Project combinations of public and private sector organizations. This project was developed in tandem with the Brazilian Biodiversity Fund project (see below), and strategic guidance from the biome-level workshops will help prioritize FUNBIO activities. Brazil The project wil help establish the Brazilian Biodiversity Fund (FUNBIO), World Bank 04/96 Brazilian Biodiversity to be managed by the Getulio Vargas Foundation, a private non-profit Sobrevila 20.0 Fund organization. An independent Board, composed of representatives from the private sector, the conservation community, academia and government, has Active 25.0 National Environment been appointed and will be responsible for FUNBIO operational and Project investment policy. FUNBIO is a sinking fund with a minimum contribution target of $25 milion, to be provided by GEF, the private sector, NGOs, the public sector and research institutions. The fund will provide modest long- term financing for projects consistent with biome-level priorities identified in the MMA-managed workshops in the National Biodiversity Project. The overal objective of the two projects is to promote biodiversity conservation and sustainable use through innovative public and private sector partnerships. 113 Global Environment Facility Investment Work Program Country/Project/ Implementing Agency/ Bank Approval/ Associated Task Manager/ GET Grant / Bank Project Project Description Project Status Total Project Cost Ecuador Support for the restructuring and strengthening of the institutional capacity, World Bank 05/94 Biodiversity Protection regulatory and legal framework for adequate management of the National 7.2 System of Protected Areas (NSPA). Project activities will focus on (i) institutional strengthening of the Ecuadorean Institute of Forestry, Natural Active 8.8 Areas and Wildlife (INEFAN) in managing the NSPA; (ii) creation of an improved legal and regulatory framework; (iii) outreach activities to local communities, involving them in management plan development for protected areas; and (iv) investment activities for civil works and infrastructure in eight priority protected areas based on participatory management plans developed with project support. Mexico The project supports selected conservation activities on the basis of detailed World Bank 03/92 Protected Areas management plans for ten protected area sites. The development and rrogIr- supervision of management plans will be guided by Technical Advisory Committees, composed of representatives of local communities, non- Active 32.2 Mexico Environmental governmental organizations, local governments and other stakeholders. An Project ecotourism plan will be prepared and implemented in one of the protected area sites on a pilot basis, for potential replication in other areas. Peru The GET will provide seed money for the Trust Fund for Conservation of World Bank 03/95 National Trust Fund for Peru's Parks and Protected Areas (FONANPE). Annual revenue from the 50 Protected Areas trust will finance management activities -- including training, management Alderman plans, operational costs, salaries, awareness programs and buffer zone Active 6.5 alternative livelihood activities -- for three key protected areas: Manu National Park and Biosphere Reserve, Noroeste Biosphere Reserve and Rio Abiseo National Park. As the fund grows through outside contributions, additional protected areas will receive support. GTZ is providing parallel financing to support the National Institute of Natural Resources (1NRENA) and recurrent expenses of FONANPE's administrative agency, PROFONANPE, during 1995. The GTZ parallel grant also finances development of a master plan for all Peruvian protected areas and a 2-year NGO small grants program for sustainable, integrated conservation and development projects. Climate Chanae Jamaica Strengthening of the institutional capabilities of Jamaica Public Service World Bank 03/94 Demand Side Company (JPSCo), and implementation of an integrated approach to energy Mi 3.8 Management conservation. JPSCo. will acquire the necessary information and data to Demonstration develop sustainable programs that overcome market barriers to energy Active 12.5 conservation. Mechanisms to address these barriers will be tested, and evaluation results will be used to design full scale sustainable long-term energy efficiency programs. The project will demonstrate the viability of energy savings and efficiency in the commercial, residential and industrial sectors and the long-term sustainability of retrofitting. Mexico The project will reduce greenhouse gas emissions as well as local World Bank 03/94 High Effidency Lighting environmental contamination through the replacement of incandescent bulbs with fluorescent light bulbs in two major markets: Guadalajara and Cosenza 10.0 Monterrey. Project will also work to increase institutional capacity for Active 23.0 technological change and energy conservation, and strengthen the Federal Electricity Commission (CFE) and its capacity to practice demand side management on a sustainable basis. 114 Global Environment Facility Investment Work Program Country/Project/ Implementing Agency/ Bank Approvall Associated Task Manager/ GET Grant / Bank Project Project Description Project Status Total Project Cost International Waters Regional (Org. of Eastern Project will assist OECS governments in reducing pollution of international World Bank 05/95 Caribbean States) and territorial waters caused by the discharge of ship-generated solid wastes Ship.Geuerated Waste by supporting appropriate actions aimed at improving collection, treatment Dabbagh 12.5 Management and disposal of these wastes. Project includes national components consisting of the establishment of port-waste reception facilities and Active 505 OECS Sodid Waste incremental expansion of landfll sites to handle ship-generated wastes, Management Project together with a regional component comprised of support activities and technical assistance for project management, training and education, establishment of common legal framework for ship waste management, recycling possibilities and public awareness programs. Project activities will also protect critical habitat for the endangered Grenada dove. Regional (Wider Project activities will lay the foundation for countries in the Wider World Bank 06/94 Caribbean) Caribbean Region to ratify and implement the MARPOL 73n8 Convention, Wider Canbbean ending discharge of ship-generated wastes into international and territorial Dabbagh 5.5 hmliative for Ship- waters. Technical assistance will be provided for studies leading to a Geerated Waste regional strategy for the implemenation of MARPOL 73/78, assessment of Active 5. existing waste management systems, formulation of criteria for waste reception facilities at ports, development of integrated waste management alternatives, and public awareness programs. The project will also support periodic regional consultative meetings to reach consensus on different elements of a regional MARPOL strategy. MIDDLE EAST AND NORTH AFRICA Blodlveirs Algeria The project will develop and implement a management plan for the National World Bank 04/94 El Kla National Park Park and wetland complex in the El Tarf Wilaya, including undertaking Msellati 9.2 and Wetlands base-line studies, protected area management, natural resource use Mlangement development, monitoring and adaptive research, environmental education, Active 11.6 institutional strengthening and establishing a conservation fund for NGOs and other local environmental groups. Egypt The project will support the development and implementation of policies, World Bank 11/92 Red Sea Coastal and plans and regulations that ensure that economic development in the Red Sea Graham 4.8 Marine Resource is consistent with sound environmental management to protect the shared Management marine resources of the Red Sea coastal zone. Project components include Active 5.7 institutional strengthening, development of public-private partnerships to Pnv. Sect. Tourism ensure sustainable environmental management, data analysis and system Infustr. h Env. Mgmt monitoring. Climate Chanae Iran The study will identify least-cost short and long-term options for reducing World Bank 10/93 Teheran Transport vehicular emissions in Tehran, based on an analysis of policy and Emissions Redudion technology constraints, and will suggest specific actions which could be Archambault 2.0 taken to overcome those constraints. Active 4,0 115 Global Environment Facility Investment Work Program Country/Project/ Implementing Agency/ Bank ApprovaU Associated Task Manager/ GET Grantl Bank Project Project Description Project Status Total Project Cost Morocco Repowering of an existing plant with a second generation advanced World Bank 09/94 Repowening of Power combustion turbine, together with improvements in the quality of the Lar 6.0 Plant materials and enhancement of the scheme's performance in the power generating system of Morocco. Close monitoring of the project's impact and Active 45.7 careful analysis of the findings will help determine its wider applicability for use throughout the country. Tunisia The project will promote the commercialization of solar water heating World Bank 11/94 Solar Water Heating technology in the residential and tertiary sectors by conditioning the market Savorelli 4.0 for sustained penetration of the technology as a least-cost alternative under competitive market conditions. Active 20.9 International Waters Regional (Algeria, The project aims to: (a) reduce the input of hydrocarbons into the World Bank 04/94 Morocco, Tunisia) international waters of the Mediterranean; (b) ensure commonality of Oil Polution approach, regulatory policies, and methodologies; (c) promote exchange of Ben-Slinane 18.3 Management Project for information and coordination of implementation; (d) utilize national data the Southwest sets to assess long term regional trends in marine pollution, both for national Active 20.0 Mediterranean Sea coastal waters and for adjacent international waters; (e) enhance the national Algeria TIrd Ports / monitoring capability; and (F) develop a coastal environmental management Morocco Port Sector Loans framework. Jordan As part of the regional Environmental Action Plan for the Gulf of Aqaba, the World Bank 06/96 Gulf of Aqaba project will (a) develop regional collaborative mechanisms for strengthening Glineur 2.7 Environmental Action the capacity to protect coastal zone and marine biodiversity; (b) develop and Plan enforce the legal framework and regulations for control of transboundary Active 12.7 pollution; (c) provide safeguards against oil pollution; (d) establish and implement guidelines for sustainable development of the coastal zone; (e) assess the effects of wastewater seepage on the quality and level of the transboundary water table; (f) implement a plan to control solid waste impacts on marine and coastal waters; and (g) demarcate and manage a marine protected area. SOUTH ASIA Biodiversitg Bhutan The trust fund will provide rehable recurrent finding for the establishment World Bank 05/92 Trust Fund for and management of a national system of protected areas, and development of Mott100 Environmental the institutional and human resource capacities needed to manage the Mon Consrvation national system. This project will test the feasibility of a trust fund as a Active 20.1 mechanism for providing long-term, sustainable finance for biological conservation programs in the protected areas. Climate Chanae India Project promotes and commercializes investment in wind farms and solar World Bank 11/92 Alternate Energy photovoltaic power systems through the provision of below-market loans to Man investors in these systems, primarily from the private sector. Popularizes zo 26.0 renewable technologies through pubhc education programs that explain their Active 186.0 Renewable Resource functions and capacity. Implementation is overseen by the Indian Management Project Renewable Energy Development Agency. 116 Montreal Protocol Projects to Protect the Ozone Layer The following table presents the World Bank's Multilateral Fund-supported investment operations including project preparation activities from 1991-1996 administered by recipient governments. The Bank, as an implementing agency of the Multilateral Fund for Implementation of the Montreal Protocol on Substances That Deplete the Ozone Layer, assists developing countries in complying with the treaty's controls on production and consumption of ozone- depleting substances (ODS). The table subdivides the World Bank ODS phaseout projects by region and country with information on the amount of funds which have been allocated to over 460 individual subprojects (not listed) being carried out under these projects. Each region has a program coordinator whose name is listed at the top of the page. The table also lists the amount of ODS (in terms of the substances weighted ozone-depletion potential: its 'ODP') which will be phased out with approved funds, ODP phased out to date, funds disbursed to date and the status of project implementation. In many cases subproject activities have proceeded prior to funding availability. To date more than 7,000 tons of ODS have been phased out through these efforts. 117 Montreal Protocol Ozone Project Portfolio ODP ODP Region/Country to be Phased Project Title Phased Out to Approved Disbur- Out 1/ Date 1/ Funding sements 21 Status of Implementation Chiller Retrofits - Clinica Atias 4 $115,000 $0 Agreement with enterprise signed. Implementation underway. Chiller Retrofits - Congreso de la I 1 $65,000 $0 Project implementation complete. Republica Chiller Retrofits - Instituto de 2 2 $69,000 $69,000 Project implementation is complete resulting in ODS Previncion Social del Medico phaseout of 2.4 ODP tons and subproject to be complete by miid-1996. Chiller Retrofits - Replacement of $851,000 $0 Project cancelled. CFC by HFC-134a as a refrigerant in central air conditioning units FAACA-MAC 90 13 $3,480,000 $1,435,139 Grant agreement was signed in January 1995. Project implementation is underway. Disbursements are proceeding rapidly. FAACA has already begun to produce HFC134a serpentine condensors, thereby limninating 13 tons of CFC-12. ODS Project I -- Plasticos Molanca 259 259 $1,300,000 $1,261,678 Project is complete and project completion report is on file. The plant production of expanded polystyrene has been shifted to the use of propane-butane. The financial accounts are expected to be closed shordy. Middle East and North Africa Regional Coordinator: Bill Rahill ERYPt IFC - MCMC Compressor 292 292 $2,800,000 $1,000,000 Construction of the factory is complete. The technology transfer issue and general project-related difficulties which have delayed the signing of the grant agreement between the IFC and MCMC have been resolved and the grant agreement was signed in May 1995. The final disbursement will be made shordy after the final supervision mission later this year. US$700,000 grant was returned to fund as foreign-ownership share increased. Jordan ODS Project I 343 $1,670,000 $456,461 All subgrant agreements have been signed and procurement of goods and services has been initiated. This project was initially approved by the EC as a line-of- grant and the entire amount has been committed. Overall progress is satisfactory albeit slower than anticipated. The closing date for the project is fast approaching and appropriate actions will be considered when discussing a possible extension. ODS Project II 134 $434,500 This US$3.5 million umbrella agreement was signed in September 1995. The subgrant agreements are now under preparation. Tunisia ODS Project I 1,265 85 $1,440,000 $490,407 All subgrant agreements with participating enterprises have been signed. South Asia Regional Coordinator: Bill Rahill India ODS Project 1 54 $1,252,000 $567,597 Implementation proceeding satisfactorily. 119 Montreal Protocol Ozone Project Portfolio ODP ODP Region/Country to be Phased Project Title Phased Out to Approved Disbur- Out 11 Date 1V Funding sements 2/ Status of Implementation East Asia and the Pacific Regional Coordinator: Ellen Tynan China ODS Project I 15,400 2,900 $6,579,000 $6,773,415 Implementation of five subprojects complete or near completion. ODS Project II (50% CFC Foam) 400 307 $4,866,000 $1,883,432 Eight subprojects are complete. Final subprojects will be completed in 1996. Disbursement of operation costs will begin soon. and awaiting government confimation of completion. Three additional projects will be complete in IQ1996. The procurement issues have delayed implemenation of the final subproject. ODS Project III 11,310 1,250 $42,278,963 $3,747,550 The $90 million umbrella grant agreement became effective on Nov. 30, 1995. Over twenty appraisals have been approved by the Bank and project implementation is underway. Disbursement has begun. Bank and Chinese Govemment reached agreement on subgrant agreement in March 1996. All subgrant agreements will be signed in 1996. PPA-IV $200,000 $0 Agreement signed and project preparation activities underway. PPA-V-Halon Sector Strategy $100,000 Project preparation proceeding on schedule. Funds will be disbursed retroactively. Indonesia ODS Project I 2,206 86 $10,394,544 $2,034,850 Subprojects are being implemented under a $17 million umbrella grant agreement. Most appraisals complete. 15 subgrant agreements signed. Subproject implementation underway. Malaysia ODS Investment Project I 923 366 $9,075,583 $1,500,000 US$20 million unbrella grant became effective in January 1996. One subproject is complete and others are under implementation. ODS Recycling Project 11270 370 $1,630,000 $880,855 Implementation of the MAC recycle subproject is complete and the halon recycling subproject is underway. Philippines ODS Project I 883 268 $12,681,000 $3,728,047 Subproject implementation proceeding under the $30 million umbrella agreement. Disbursements to three subprojects with signed subgrant agreements have begun. Thailand ODS Project I 1,319 165 $12,938,817 $4,201,409 The US$40 million umbrella grant agreement is effective. Subproject activity has been initiated by enterprises. The enterprises are finalizing subgrant agreements with the financial agent. Europe and Central Asia Regional Coordinator: Bill Rahill Turkey IFC - ODS Project I (Assan Foam) 180 $925,000 Project has been appraised by IFC (which is executing agency on behalf of the Bank). Grant agreement has been signed The equipment specifications have been prepared and the enterprise has initiated procurement and project implementation. First disbursement to enterprise expected shortly. 120 Montreal Protocol Ozone Project Portfolio ODP ODP Region/Country to be Phased Project Title Phased Out to Approved Disbur- Out 1/ Date 11 Funding sements 21 Status of Implementation ODS Project l 754 660 $6,165,000 $5,331,195 Project under implementation. Most components ari well advanced and close to completion. Substantial ODS phaseout has been achieved. ODS Project II 540 290 $3,886,022 $2,299,541 The US$20 million umbrella grant agreement for this project has been signed and all projects are now under active implementation. Disbursements are underway. Tek-Iz 155 $729,650 Latin America and the Caribbean Regional Coordinator: Jessica Poppele Argentina ODS Project I 700 $21,868,345 Negotiations on the US$2.5 million grant agreement completed Nov. 7, 1995. Final version of the agreement was sent to the government Jan. 4, 1996. Approval of the agreement requires a presidential decree which is being processed through the Ministry of Economy. The grant agreement will likely be signed by mid-1996. Implemnentation has been initiated in a few enterprises and will be funded retroactively. Brazil ODS Project I 1,578 270 $11,457,532 $1,109,001 Subprojects are being implemented under US$10.9 million umbrella agreement. Chile ODS II 400 $1,000,000 Project approved 07/17/96 ODS Project I 402 35 $1,332,451 $591,758 The grant agreement was signed in July 1993. Project implementation is underway. The main component of this grant agreement provides subsidies to private frmns in the foam and refrigeration sectors for the conversion to non-ODS technologies. After overcoming legal and institutional problems, project implementation is now proceeding as planned. Ecuador ODS Project I 341 629 $1,566,000 $1,031,019 The subprojects have been completed on schedule. Mexico MAC Recycling and Aerosols 36 $180,000 $53,791 The project consist of two components: CFC-12 Recycling (42%) and Aerosol Manufacturing Safety (58%). ODS Project I (Ozone Protection 470 486 $4,000,000 $1,468,723 Subprojects are being developed and implemented under Policy) a US$4 million line-of-grant. Uruguay ODS Project I 52 $1,457,719 $200,000 A grant agreement of US$5 million was signed with the Government of Uruguay in June 1995. The Bank is working with the ozone unit in assessing the viability of ODS abatement activities in the air conditioning and commercial refrigeration sectors, including recycling initiatives. Venezuela AAISA-MAC 80 $4,422,000 $555,852 The grant agreement is comprised of two subprojects. The legal agreement was signed in July, 1995, and implementation has begun. Conditions of effectiveness have been met and AAISA has initiated retroactive expenditure withdrawls. 121 Montreal Protocol Ozone Project Portfolio ODP ODP Region/Country to be Phased Project Title Phased Out to Approved Disbur- Out 1/ Date 1/ Funding sements 21 Status of Implementation ODS Project I 3,224 517 $20,714,446 $3,940,198 This US$50 million umbrelagrant agreement establishes the framework for procesing a large number of small projects over the next three years. As umbrella agreement not signed until May-95, subprojects approved in '93 and '94 were delayed by up to two years. This lag will no longer be an issue for future approvals. Project preparation under this grant agreement was intially supported through a Project Preparation Advance (PPA). The amount of the PPA was later adjusted to reflect the changing nature of project preparation activities. PPA I - ODS Project I $345,000 $105,708 Activities under this Project Preparation Advance have been halted. The final disbursement is being negotiated with the financial agent. remaning funds will be credited to the Multilateral Fund. Pakistan ODS Project 1 287 $1,998,242 The umbrella agreement under preparation will cover 3 years of ODS phaseout projects in Pakistan. 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