The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) LB-Environmental Pollution Abatement Project (P143594) MIDDLE EAST AND NORTH AFRICA | Lebanon | Environment, Natural Resources & the Blue Economy Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 11 | ARCHIVED on 05-Sep-2019 | ISR38176 | Implementing Agencies: Ministry of Finance, Ministry of Environment, Central Bank Key Dates Key Project Dates Bank Approval Date: 01-Aug-2014 Effectiveness Date: 28-Jan-2016 Planned Mid Term Review Date: 30-Mar-2017 Actual Mid-Term Review Date: 11-Apr-2018 Original Closing Date: 31-Mar-2021 Revised Closing Date: 31-Mar-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objectives of the project are to assist the Borrower in: (a) reducing industrial pollution in targeted Industrial Enterprises; and (b) strengthening the monitoring and enforcement capabilities of the MOE. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name A. Technical Assistance (parallel financing):(Cost $3.00 M) B. Investment Sub-projects (IBRD):(Cost $15.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project was ratified by Parliament on November 13, 2015 and became effective on January 28th, 2016. In spite of delays in the early stages of implementation since effectiveness in 2016, the project has been able to build a strong pipeline of sub-projects during the course of the 2018 and 2019 calendar years. To date eight sub-projects are signed and in various stages of implementation. Total disbursements amount to US$10.6 million (71% of project amount). The pipeline includes six more potential sub-projects totaling approximately US$7.0 million--which actually exceeds the current project amount. 9/5/2019 Page 1 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) 9/5/2019 Page 2 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- High High Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- High High Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes 9/5/2019 Page 3 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) Reducing industrial pollution in targeted Industrial Enterprises IN00732483 ►Industrial waste reduced under the project in the targeted enterprises (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 01-Aug-2014 17-Dec-2018 02-Aug-2019 31-Mar-2021 From the disbursed projects as of the 24 May 2019, one project - Wilco Rendering Facility has been constructed and will treat 100% of the waste from the facility. Since there is only one project in the current pipeline dealing with this type of waste, the percentage is 100%. Comments: Moved from intermediate level to PDO level to measure industrial waste reduction outcomes and wording modified to remove ‘municipal’. Since the pipeline is not defined at this time, a 50% overall pollution reduction is proposed for the target instead of absolute number of tons. IN00732485 ►Particulate Matter reduction achieved under the project in the targeted enterprises (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 80.00 50.00 Date 01-Aug-2014 06-Dec-2018 02-Aug-2019 31-Mar-2021 The sub-projects of Ciment de Sibline and Cimenterie Nationale are not operational yet. This indicator takes into account the operational sub-projects of Zinaline, Sicomo and Cimenterie Nationale (Kiln no.4) only. The total dust emissions resulting from Zinaline, Sicomo and Cimenterie Nationale (Kilns No. 4) before the implementation of the sub-projects was around 287.09 t/y. The total dust emissions resulting from the mentioned sub-projects after their implementation are around 57.06 t/y. The total emissions Comments: reduction is equivalent to 230.03 t/y (~ 80.1%). This indicator was refined to make it outcome oriented to measure pollution reduction impact. Since the pipeline was not defined at that time, a 50% overall pollution reduction was proposed for the target instead of absolute number of tons. IN00732512 ►BOD/COD reduction achieved under the project in the targeted enterprises (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 01-Aug-2014 06-Dec-2018 02-Aug-2019 31-Mar-2021 WWTPs of Kassatly Chtaura and Liban Lait are not operational yet; However, the following should be noted : (1) The total BO D levels currently generated by the mentioned industries is 13,629 kg/d and the total load reduced is estimated at 13,599 kg/d. This would result in a reduction of 99.7% once the Comments: WWTPs are operational. (2) The total COD levels generated by both compani es is 20,837 kg/d and the total load reduced is estimated at 20,687 kg/d. This would result in a 99.2% reduction once the WWTPs are operational. Strengthening the monitoring and enforcement capabilities of the MOE IN00732484 ►Increase in number of non-compliant operational enterprises addressed in letters from MOE to MOI/ Ministry of interior and municipalities, governors-municipalities and environmental prosecutors (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 9/5/2019 Page 4 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) Value 0.00 55.00 88.00 50.00 Date 01-Aug-2014 06-Dec-2018 02-Aug-2019 31-Mar-2021 Based on the number of enforcement letters sent to non-compliant industries has seen an increase in such correspondence being communicated, due to strengthened capacity of the Ministry of Environment in their monitoring and enforcement. Baseline 2017: 62 letters Total letters issued from January 2018 till 15 May 2019: 117 letters This measures the increase in the number of non-compliant operational enterprises addressed in letters Comments: from MOE to MOI/ Ministry of interior and municipalities, governors-municipalities, environmental prosecutors to measure strengthened capacity for enforcement. These letters have specific recommendations on actions and deadlines to bring enterprises into compliance with EMP, permitting or compliance decree. Since MOE actually does not impose penalties, fines, closure etc. they can only make recommendations to the environmental prosecutors, Governor, or MOI. A baseline will be taken now of the number of action letters sent in a year. IN00732511 ►Enterprises financed through the project aiming towards the environmental compliance Decree no. 8471-2012 (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 7.00 10.00 Date 01-Aug-2014 06-Dec-2018 02-Aug-2019 31-Mar-2021 Based on the current disbursement, there are 7 enterprises that are signed and either completed or under implementation. Namely, Wilco, Cimenterie Nationale, Sicomo, Kassatly Chtaura, Zinaline, Liban Lait and Cimenterie de Sibline have sub-loans agreement signed and disbursed from the WB accounts Comments: The indicator indicates that these are enterprises that are working towards complying with the decree and may not necessarily receive the Environmental Compliance Certificate (ECC). Target is also revised to a more realistic number. Intermediate Results Indicators by Components Component A – Technical Assistance IN00732513 ►Guidelines and tools for environmental monitoring/compliance for specific industrial sectors developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 8.00 9.00 Date 01-Aug-2014 17-Dec-2018 02-Aug-2019 31-Mar-2021 Guidelines for the following sectors have been completed: Slaughterhouse, Meat processing, Dairy Comments: Industry, Cattle Farm, Cement Mixing, Asphalt Mixing, Cutting Stone, Cement Blocks IN00732515 ►People trained on environmental compliance/ monitoring/ enforcement and awareness (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 55.00 156.00 100.00 Date 01-Aug-2014 17-Dec-2018 02-Aug-2019 31-Mar-2021 IN00732517 9/5/2019 Page 5 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) ►Industrial database including monitoring, permitting, and enforcement data operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Aug-2014 17-Dec-2018 02-Aug-2019 31-Mar-2021 Initiated but nit yet complete Comments: Component B – Investments (Sub-projects) IN00732514 ►Participating banks lending to enterprises (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 4.00 4.00 Date 01-Aug-2014 17-Dec-2018 02-Aug-2019 31-Mar-2021 Audi, Fransabank, Byblos, Bank Med Comments: IN00732516 ►Enterprises that benefit from LEPAP environmental services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 48.00 55.00 40.00 Date 01-Aug-2014 17-Dec-2018 02-Aug-2019 31-Mar-2021 IN00732518 ►Sub-loans issued to enterprises for pollution reduction (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.48 10.60 14.96 Date 01-Aug-2014 17-Dec-2018 02-Aug-2019 31-Mar-2021 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P143594 IBRD-84100 Effective USD 15.00 15.00 0.00 10.67 4.33 71% Key Dates (by loan) 9/5/2019 Page 6 of 7 The World Bank Implementation Status & Results Report LB-Environmental Pollution Abatement Project (P143594) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P143594 IBRD-84100 Effective 01-Aug-2014 24-Oct-2014 28-Jan-2016 31-Mar-2021 31-Mar-2021 Cumulative Disbursements Restructuring History Level 2 Approved on 29-Jun-2018 Related Project(s) P172032-Lebanon Environmental Pollution Abatement Project Additional Financing 9/5/2019 Page 7 of 7