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Financing Plan (in US$):
GEF Project/ComponentProject4,870,000PDF A PDF B350,000PDF CSub-Total GEF:5,220,000Co-financingEuropean Investment Bank6,640,000Government of Albania720,000Sub-Total Co-financing:7,360,000IDA Municipal Water and Wastewater project (blended)21,930,000TOTAL Project Financing:34,510,000Financing for associated activities if any:
World Bank Project ID: GE-P075156
Country: Albania
Project Title: Integrated Water and Ecosystems Management Project (blended with IDA Municipal Water and Wastewater Project)
GEF Implementing Agency: The World Bank
Other Executing Agency/Agencies: Ministry of Territorial Adjustment and Tourism of Albania
Duration: 5 Years
GEF Focal Area: Multi-Focal Area
GEF Operational Program: OP#12
GEF Strategic Priority
Estimated Starting Date: January 1, 2004
Record of endorsement on behalf of the Government(s)
Dr. Tatjana Hema, President of the National Environmental Agency, and GEF Focal Point
Date: August 21, 2001
Approval on behalf of the World Bank: This proposal has been prepared in accordance with GEF policies and procedures and meets the standards of the GEF Project Review Criteria for work program inclusion.
Lars Vidaeus, GEF Executive Coordinator, The World Bank
March 31, 20031. Project Summary
Objectives
The project proposed for GEF co-financing is blended with an IDA-financed Municipal Water and Wastewater project. Due to the extensive consultation process carried out for the GEF-funded components, the World Bank proceeded with the approval of the IDA credit in advance of the GEF approval. The IDA-supported activities and the GEF-supported activities are to be considered as part of the same project.
The development objective of the IDA-GEF blended project is to improve the provision of water supply and sanitation services in selected Albanian cities by introducing a new approach to utility management that builds upon private sector practices, performance based incentives and financial sustainability. Specifically, the GEF-supported project contributes to the objective of improving municipal wastewater services in the coastal cities of Durres, Lezha and Saranda.
The global environmental objective is to improve the health and habitat conditions of globally significant marine and coastal ecosystems along the coastline of Albania in an integrated manner by significantly reducing pollution from uncontrolled municipal wastewater generated by urban settlements of the three coastal cities of Durres, Lezha and Saranda that are discharging into international waters and improving the management of the tidal marshland of Kune Vain (near Lezha).
The project will support the creation and operation of a system of constructed treatment wetlands (CTWs) to reduce the load of nutrients (nitrogen and phosphorus) that are currently discharged in the Adriatic seas and threaten the marine ecosystem and the habitat of endangered water flora and fauna species of the coastal marshlands. The project will also improve the capacity of the local institutions to monitor the water quality and the environment and improve the management of the globally significant Kune Vain protected area.
Outputs
In order to achieve its objectives the blended project will implement 3 components supported by IDA: (i) utility management contract; (ii) investment fund for water supply and sanitation improvements; (iii) technical assistance for project management and water sector and institutional reforms; and 4 components co-financed by GEF: (i) sewage pollution reduction; (ii) environmental management and monitoring; (iii) public awareness and replication (iv) project management, monitoring and evaluation (incremental to what financed by IDA).
The project outputs for the components supported by GEF will be:
1. Sewage pollution reduction:
Construction and operation of low cost wastewater treatment system in the proximity of the cities of Durres, Lezha and Saranda;
Construction of main collectors from the existing sewage system to the CTWs and a conventional treatment plant in Shengjini (no GEF incremental output);
Increased local capacity to manage CTWs (TA provided under IDA);
Improved efficiency of nutrient removal by at least 50% for nitrogen and 25% for phosphorus.
2. Environmental Management and Monitoring:
Strengthened the capacity of the Kune Vain Managed Area Management Board and Administration;
Finalization and adoption of the Kune Vain Managed Area Management Plan through a participatory approach;
Implementation of selected priority measures identified by the Management Plan;
Monitoring water quality and biodiversity indicators within the protected area and in the coastal areas that are part of the project;
Increased capacity of local institutions to carry out effective monitoring activities in the project areas, including training of rangers and public administration staff.
3. Public Awareness and Replication:
Environmental education activities targeting schools and local communities developed and implemented and teachers trained in ecology and environmental science;
Scheme developed for stakeholder participation in the management of the Kune Vain natural resources (as part of the Management Plan);
Awareness campaigns on need for payment of water and sanitation services developed and delivered (under IDA);
Replication strategy developed;
Project information to beneficiaries and decisions makers disseminated;
Knowledge sharing workshops in-country and in the region delivered.
4. Project Management, Monitoring and Evaluation:
Project Implementation Unit capable to manage the project
Project progress and performance monitored and achievement recorded and used to improve project implementation
Key Performance Indicators
The key project performance indicators include: (i) improved water safety and quality and increased water supply reliability and coverage; (ii) improved collection and discharge of wastewaster; (iii) reduced pollution of wastewater discharging into the sea; (iv) improved management of Kune Vain Protected Area.
Key indicators for monitoring international waters and biodiversity status include: (i) nutrient (Nitrogen/Phosphorus) removal, i.e., reduction of nutrient loads to the marine and coastal environment to 115t/a of nitrogen and 32 t/a for phosphorus; (ii) cover (number and size) of endangered species population in the participating coastal areas and the Kune-Vain marshland.
2. Country Ownership
(a) Country Eligibility
Albania signed the Convention on Biological Diversity in January 1994.
The country is a signing party of the Barcelona Mediterranean Convention for the Mediterranean Sea (1976) and a participant in the Regional Program for Conservation of Wetland and Coastal Ecosystems in the Mediterranean Region (UNDP) (since 1997)
(b) Country Drivenness
The Albanian government is very aware of the poor conditions in which the water sector operates, with its infrastructure in urgent need of improvement both in terms of phisical rehabilitation and management capability. Albania has no wastewater treatment facilities and raw sewage is discharged untreated into seas and rivers. Degradation of the quality of transboundary water resources caused by land-based activities is therefore a very serious problem.
The government of Albania is very concerned with the lack of sustainable management of natural resources and its negative effect on the environment. The National Environmental Action Plan, updated and adopted by government in January 2002, emphasizes the need to reverse environmental degradation and rehabilitate heavily polluted areas and lists surface water contamination due to lack of proper wastewater treatment and loss of biodiversity due to lack of proper management of natural resources as priority issues.
Recognizing the importance of these issues, the government of Albania has embarked on implementing a water sector strategy (Rural Water Supply and Sanitation Strategy, recently endorsed by the government) focussing on both urgent system repairs and sector reforms. The government also adopted a Biodiversity Strategy and Action Plan in 2000 that include the Kune Vain marshland as one of the priority areas in the network of protected areas and identifies lack of adequate management capacity as a key issue for stustainability. The government recently approve a law on protected areas that supports a more advanced management concept based on long-term sustainability. The proposed proposed project fits with and supports the government strategy on water and biodiversity by introducing new approaches to integrating wastewter management into an overall ecosystem management.
The proposed project, which has been prepared through a highly participatory planning process, enjoys the support of both central and local governments (the Council of Ministers, the Ministry of Territorial Adjustment and Tourism, the Ministry of Environment, the General Directorate of Forestry and Pastures, municipalities of Durres, Lezha and Saranda) as well as water utilities and local communities.
3. Program & Policy Conformity
(a) Project Design
As identified in the Strategic Action Plan for the Mediterranean Sea, several hotspots along the Adriatic coast are the main cause of pollution of the marine and coastal ecosystems. In Albania, water pollution, mainly generated by an increasing population concentrated along the Adriatic coastline, has caused considerable deterioration of the natural inland ecosystems and the biological productivity of the coastal areas. Indeed, in all towns sewage waters are discharged without any treatment, directly into rivers or drainage canals, that in turn convey the untreated sewage directly into globally significant tidal marshlands or to the nearby marine coastal zone. This has the effect of upsetting the biological balance and also increases the subsequent eutrophication phenomena of wetlands.
The coastal lagoon system of Albania constitutes one of the most important wetlands of the region, as highlighted also by the GEF-supported “Conservation of Wetland and Coastal Ecosystems in the Mediterranean Region”. In particular endangered and endemic species as the Pygmy cormorant (Phalacrocorax pygmaeus), the Mouse-ear bat (Myotis miotis) and the Otter (Lutra lutra) live in these habitats and should be considered as flag species. Coastal water pollution from untreated waste waters heavily affects Posidonia oceanica meadows and the related communities e.g. the endangered species Pinna nobilis.
The tidal marshland of Kune Vain is one of the most significant wetlands in the coastal lagoon system. It suffers, however, of several problems, including lack of an integrated sustainable management strategy based in multiple uses and conservation on the natural resources; progressive spreading and enlargement of building construction, and illegal building; presence of uncontrolled tree cutting and still illegal fishing; inappropriate hydraulic management of the lagoons; lack of appropriate aquaculture techniques; deterioration and degradation of landscape; and lack of financial means for effective management of the protected area.
Given the limited financial resources available for infrastructure development, the increasing pressure on the natural resources from higher concentration of urban settlements along the coastal areas, the limited environmental awareness among the population, and the weak institutional capacity to manage its natural resources, the government of Albania is facing one of the most challenging tasks in developing a comprehensive approach to water and ecosystem management. The proposed project would assist Albania in meeting this challenge.
The project is fully consistent with OP 12 - Integrated Ecosystem Management, with linkages with OP2, OP9 and OP10. The project will (i) create an enabling environment for integrated ecosystem management by supporting the implementation of the recently approved Law on Protected Areas in the Kune Vain marshlands; (ii) strengthen the local capacity to manage the constructed wetlands and the coastal lagoon system in an integrated manner and (iii) support investments that address both local and global issues.
The four components tha have incremental activities proposed for financing by GEF are: (i) sewage pollution reduction; (ii) environmental management and monitoring; (iii) replication and public awareness; and (iv) project management, monitoring and evaluation.
Activities
The following activities would be financed ir oder to realize the outputs listed above:
1. Sewage pollution reduction:
Construction of treatment wetlands in Durres, Lezha and Saranda;
Construction of conventional treatment plan in Shengijn (EIB funded);
Construction of main collectors (EIB);
Enhanced pre-treament in the three selected sites (EIB);
Land acquisition (government).
2. Environmental management and monitoring:
Technical assistance for the development of the protected area management plan including a plan for stakeholder participation in management of natural resources and economic incentives for long term sustainability;
Training for Kune Vain administration staff and ranger on natural resource management and integrated ecosystem management;
Implementation of selected priority measures identified in the Kune Vain management plan;
Public consultations with local stakeholders to seek input on management plan objectives and scope and participation in developing and implementinig priority actions;
Design a monitoring program for water quality and biodiversity indicators in the protected area and project sites (including provision of technical assistance and equipment as needed) and develop monitoring processes for adaptive management of integrated ecosystems.
3. Public awareness and Replication:
Design and implement environmental education activities for schools and local communities;
Design and implement teacher’s training program in ecology and environmental science;
Organize stakeholder consultations for the preparation and implementation of the management plan for the Kune Vain protected area;
Design and implement awareness campaigns on project goals and benefits of an integrated ecosystem management, local communities’ role and responsibilities in managing natural resources including payment of environmental services (partly covered by IDA project);
Technical assistance to develop a replication strategy, including identification of sites within Albania and the region and methods of information and dissemination;
Design and implementation of training and workshops for practitioners and decision-makers on the technical, economic and environmental benefits of constructed wetlands and integrated ecosystem management.
4. Project management, monitoring and evaluation:
Complement the Project Implementation Unit established under the IDA project with adequate technical expertise in constructed wetlands, biodiversity conservation and ecosystem management;
In conjunction with activities under component 3, develop a reporting system on project progress and achievements.
(b) Sustainability (including financial sustainability)
The project will achieve sustainability by promoting an integrated appraoch to management of wastewaters and natural resources. The main purpose is to optimize the ecological, economic and social benefits of the proposed interventions to better preseve the coastal and marine ecosystems. Environmental sustainability will be achieved by physically reducing the discharges of nutrient into the coastal lagoon system and sea, improving the monitoring of the ecosystem health (water quality and biodiversity status), and implementing a management plan for the Kune Vain protected area. Institutional sustainability will be achieved by working at local level with a wide range of stakeholders, building capacity of the water utilities to manage the constructed wetlands, strengthening the capacity of the local water quality monitoring institutions and the staff of the Kune Vain protected areas as well as working with the local communities, farmers, and user groups. Financial and economic sustainability will be achieved by introducing a private sector based management approach to water and wastewater utilities, government financial support to protected areas as foreseen by the new legislation and by exploring other economic instruments for management of the Kune Vain protected areas. The project builds on several ongoing government programs and donor-supported projects that will help sustain the project activities.
(c) Replicability
The proposed project has a high demonstration value since it is one of the first projects in the region to promote an integrated approach to water and land management based on constructed treatment wetlands. Other municipalities in Albania are the most likely candidates for replication since the country has no wastewater treatments and a long coastline with several lagoons and wetlands of significant value. The potential for replication in the whole Mediterranean region is quite high. The project therefore will finance the development of a replication strategy that includes identification of potential sites for replication and methods for dissemination of lessons. The project will support knowledge sharing within the country and the region.
The project will also offer the opportunity to implement some of the measures proposed by the recently approved Law on Protected Areas to strengthen the institutional framework for the management of the Kune Vain marshlands. The model for management of the protected area adopted in Kune Vain could be used in other protected areas in the country. As identified in the Strategic Action Plan for the Mediterranean, several hotspots have been identified along the Adriatic coast.
(d) Stakeholder Involvement
The project has been designed and will be implemented following a participatory approach in recognition that a broad consultation process is needed to arrive to a common understanding of the issues related to wastewater management, environmental protection and sustainable use of natural resources. This approach represents an essential and rather innovative element of the proposed project, especially when compared to more conventional infrastructure projects. The need to build adequate public consensus on the project objectives, scope and expected outcome is the main reason for the Bank’s decision to delay processing of the GEF portion of the blended project.
During the last 6 months of project preparation several stakeholder consultations were held to determine the most socially/politically/environmentally acceptable site for the construction of the wetland in the three cities as well as promoting dialogue within the Management Board of the Kune Vain protected area (the selection of the 3 cities was pre-determined by the feasibility study for the IDA-supported water and wastewater project). Participants included central government and local authorities, local communities, local NGOs and environmental specialists.
Stakeholders’ participation will be pursued throughout the project implementation. Building consensus over issues related to wastewater treatment, biodiversity conservation and sustainable use of natural resources ultimately will broaden constituencies support for the government water sector reform program. By increasing public awareness on the issue of environmental protection and ecosystem management, the consultations will make a major contribution to improve environmental governance in Albania. Stakeholder’s participation will be an essential element in the preparation and implementation of the Kune Vain management plan.
(e) Monitoring and Evaluation
The project supports the development of a water quality and biodiversity monitoring program for the project areas. This program would strengthen the capacity of the local institutions currently responsible for water quality (utilities, Istitue of Hydrobiology of Tirana) and coastal ecosystems (Ministry of Environment, Genaral Directorate of Forestry and Pasture and the Kune Vain Protect Area administration unit).
The project will also establish a monitoring and evaluation system for the project managed by the Project Implementation Unit that will monitor the project progress and impact, including environmental and social aspects. In this regard, the project will benefit from the social impact monitoring and evaluation system established by the IDA project to assess the public perception and acceptance of the proposed interventions as well as the level of public awareness and satisfaction.
4. Financing Modality and Cost-Effectiveness
The cost of the GEF-IDA blended project is US$ 34.5 million with IDA financing of US$ 15 million. The requested GEF financing is US$ 4. 87 million with direct co-financing from donors and government of US$ 7.36 million.
5. Institutional Coordination & Support
(a) Core commitments & Linkages
The project is consistent with: (i) the Bank’s overal country strategy of 2002 that emphasizes poverty alleviation, social cohesion, building capacity and improving natural resource management; (ii) the national Biodiversity Strategy and Action Plan of 2000 that identifies Kune Vain marshlands as priority ecosystem for biodiversity conservation and calls for strengtheing the institutional capacity to manage protected areas; (iii) the National Environental Action Plan of 2002; and the national Rural Water and Sanitation Strategy recently completed.
The project will link very closely with the GEF-supported Lake Ohrid Conservation project, currently under implementation, particularly for the water quality monitoring program and management of natural resources at local level. The project is also consistent with and will complement other Bank projects currently under preparation in Albania, including a proposed GEF medium size project for biodiverstiy conservation in the Karavasta Wetlands, and the IDA-supported Institutional Sterngthening and Environmental Clean Up an the demand-driven Community Works projects.
(b) Consultation, Coordination and Collaboration between IAs, and IAs and EAs, if appropriate
The project implements priority interventions as identified in the Strategic Action Program for the Mediterranean Sea, currently under implementation with UNEP-GEF suuport. The project also builds upon and complements the UNDP regional project Conservation of Wetland and Coastal Ecosystems in the Mediterranean Region and will link with the UNDP-GEF Prespa Lake project currently under preparation. The Bank team has been coordinating with the UNDP office in Tirana during project preparation as well as with other donors active in the water, natural resource and environment sectors including Italy, Germany (KfW and GTZ), EBRD, EU-Phare.
Annex A: Incremental Cost Analysis
Annex B: Project Logical Framework
Annex C: Response to External Reviews
Council/Secretariat
Convention Secretariats
STAP Roster Review Response
Annex A:
Incremental Cost Analysis
ALBANIA: Intergrated Water & EcoSystems Management GEF
Project Background
The aim of this project is to reduce the sewage pollution load from the 3 cities of Durres, Saranda, Lezhe in order to protect and improve the environmental conditions of coastal and marine habitats. The great part of the ecosystems considered by the project have been ranked at international level according with the Ramsar convention. The project will support an integrated approach to ecosystem management based on the reduction of nutrients through the construction of artificial wetlands for wastewater treatment, as well as improved management of the protected area of Kune-Vain.
Sector Context and Baseline Scenario
Albania's water infrastructure is in urgent need of improvement, in technical short term rehabilitation and in medium and long term technical and managerial improvements. Water quality could be improved significantly with a reliable supply of chemicals. Under existing conditions excessive water losses have resulted from lack of maintenance and repair and lack of metering and operational control. . Wastewater treatment facilities do not exist in Albania and raw sewage is discharged untreated into sea and rivers.
Several causes for these conditions of Albania's water sector are:
Lack of revenues: Tariffs below the true cost of water and lack of tariff collection enforcement in the last decade have significantly reduced the income of the water supply companies. Water and sanitation systems have received virtually no maintenance in the last ten years.
Over consumption: Flat rates rather than metered consumption resulted in massive water waste and also the collapse of the irrigation system has contributed to a sharp increase in water demand in the last ten years. On top of this, a massive migration to urban centres, with illegal tapping and no incentive to reduce water consumption, augmented the water sectors problems.
Inadequacy of the physical infrastructure: Due to the lack of appropriate materials/equipment and insufficient consideration of the economic aspects in the design, the existing systems are expensive to run and to maintain.
The Government of Albania (GoA) has embarked on a water sector strategy, that involves a two-tier approach focusing in the short term on urgent repairs to the systems and on medium term program to support sector reforms. Within this medium term program, the World Bank recently approved a US$ 21.9 million Municipal Water and Wastewater Project aiming at improving the water and sanitation services in Albania.
Albania is characterized by the presence of very relevant coastal and marine ecosystems (lagoons, hygrophilous forests, Posidonia meadows) where the biodiversity value is menaced by the presence of urban settlements in the surroundings and the associated environmental impacts (in particular the eutrophication of water due to the existing raw sewage outfalls). The coastal lagoon system of Albania constitutes one of the most important wetlands of the Mediterranean Region. In particular endangered and endemic species as the Pygmy cormorant (Phalacrocorax pygmaeus), the Mouse-ear bat (Myotis miotis) and the Otter (Lutra lutra) live in these habitats and should be considered as flag species.
Water pollution mainly associated with the flow of untreated sewage is one of most relevant threats of these ecosystems which has considerably deteriorated the natural inland ecosystems and the biological productivity of the coastal areas. Albania lacks of any wastewater treatment facilities and existing raw sewage outfalls are located either directly on the seacoast, on the bank of coastal rivers or on drainage ditches that after a short distance discharge directly into globally significant tidal marshlands and/or the sea. This has the effect of upsetting the biological balance and also increases the subsequent eutrophication phenomena of wetlands. It is also known that coastal water pollution with particular reference to the untreated waste waters heavily affects Posidonia oceanica meadows and the related communities (e.g. the endangered species Pinna nobilis).
The Government is committed to biodiversity conservation and the water sector is one of priorities at national level in line with the Strategic Principles of the Albanian Biodiversity Strategy. However, urban population is growing rapidly with increased pressure on the quality of the surrounding water ecosystems (sea, wetlands). The Government of Albania has very limited financial resources to create wastewater treatment facilities.
As a consequence of the current course of action coastal areas will likely continue to be under the growing pollution effects of uncontrolled and increased urban wastewater which can be described as follows:
endangered marine ecosystems and habitats, in medium and infralittoral level (particularly Shengjini-Lezha area, Porto Romano bay and Saranda bay);
endangered coastal ecosystems: sand dunes, delta rivers (particularly Drini-Lezha), alluvial and wet forests, lagoons ( Kune and Vaini) and coastal lakes (Kenalla);
risks and adverse impacts on biodiversity, and some of the major adverse impacts have been: habitat loss and fragmentation, damage (Porto Romano bay, Shengjini and Saranda bay) and degradation (Kenalla lake) of habitats and ecosystems, loss of species or the threat of their extinction etc.;
reduction of the Posidonia oceanica meadows populations, particularly in the Shengjini- Lezha and Saranda-Ksamili area, but also in the Porto Romano and Lalzi bay;
development of some algae populations (Ulva and Enteromorpha), particularly in Saranda bay, Shengjini bay and Porto Romano bay;
observation of some eutrophication in the Saranda bay, Shengjini area and Kenalla lake;
probability to affect reproduction of the fish species (e.g. sea bass) in the marine ecosystems of Shengjini bay (particularly northern part-Rana e hedhun), in Porto Romano and Lalzi bay and near the Saranda and Ksamili bay, etc.
negative consequences on the eco-tourism development;
delay for the implementation of the Coastal Zone Integrated Management and of the economic development;
difficulties in implementing institutional strengthening measures in order to implement the sustainability and biodiversity maintenance policies.
Regional GEF projects have focused part of their activities on the conservation of biodiversity of Albanian wetlands and lagoons, like in the case of the Conservation of Wetland and Coastal Ecosystems in the Mediterranean Region Project (Karaburun, Orikumi, and Narta habitats) and the Lake Ohrid Conservation Project. Taking into consideration the international relevance of these habitats, other GEF projects have been planned on other Albanian wetlands as on the lake Prespa, and on the Karavasta lagoon. Very few activities have been planned for the Albanian marine habitats. This is probably associated with to the scarcity of data and information on these areas, although live endangered species as the Monk seal (Monachus monachus) and the Sea turtle (Caretta caretta) do occur in these areas.
Global Environmental Objective
Based on the present economic situation and the lack of active environmental pressure groups, it is likely that biodiversity conservation will not be sufficiently promoted in the near future. This project promotes and expands the use of CTW's in areas where existing pollution loads are threatening natural wetland systems critical for biodiversity. The coastal cities of Durres, Lezhe, Saranda do not have any wastewater treatment facilities, as such the project aims to capture global benefits by reducing land-based pollution from the three cities and protect and restore endangered coastal and marine habitats by introducing low cost ecologically based wastewater treatment.
The global objective of the GEF alternative is to improve the health and habitat conditions of globally significant marine and coastal ecosystems along the coastline of Albania in an integrated manner by significantly reducing pollution from uncontrolled municipal wastewater generated by human settlements of the three coastal cities of Durres, Lezha and Saranda that are discharging into international waters and improving the management of the tidal marshland of Kune Vain (near Lezha).
In order to achieve its objectives the GEF alternative will implement four main activities: (i) Sewage pollution reduction through construction of low cost environmentally-friendly waste water treatment facilities (CTW); (ii) environmental management and monitoring through improved monitoring of water quality and biodiversity indicators and institutional strengthening of the Kune-Vain protected area management administration; (iii) public awareness and replication and (iv) project management, monitoring and evaluation.
The CTW provides a noticeable reduction of the pollution loads into the receiving water bodies, which represents the major contribution to the protection and restoring actions in the endangered coastal zone and marine habitats. According the analytical calculation, the following Removal Efficiency (RE%) are expected: BOD 70%, and fecal coliform removal of 95%, studies show the CTW are effective at removing nutrients such as nitrogen (Re=50%) and phosphorous (Re=25%). Tab. 1/a and 1/b provides an estimation on the quality of waste water in case of implementation of the constructed wetlands according with Project Preliminary Design. In Tab. 1/a are shown the Removal Efficiency (RE%)((*) RE% is the ratio of the out-let concentration versus the in-let concentration of the wastewater pollutant.*) of the CTW according to the “fully natural” wastewater treatment system (i.e. oxidation ponds interconnected with a Free Water Surface system). Whereas in Tab.1/b are shown the Removal Efficiency (RE%)20.3/a according CTW wastewater treatment option with “mechanical aerated ponds” (i.e. aerated ponds interconnected with a Free Water Surface system).
Table 1/a-Quality of wastewater in Durres, Lezhe, Saranda after project intervention on Project
CTW basic scheme-fully natural solution
Main ParameterAssumed Sewage
Inlet concentration
(mg/l)Expected median of RE% Expected median Outlet concentration (mg/l)BOD250-20070%75-60N-total60-5050%30-25P-total27-2025%20-15
Table 1/b-Quality of wastewater in Durres, Lezhe, Saranda after project intervention on Project
CTW option with aerated ponds
ParameterAssumed Sewage
Inlet concentration
(mg/l)Expected median of RE% Expected median Outlet concentration (mg/l)BOD250-20085%
(range 30%-95%)50-30N-total60-5075%
(range 20%-80%)15-10P-total27-2065%
(range 20%-70%)15-10
In addition, the GEF alternative is designed to improve management of wetlands and possibly restoring precious habitats by strengthening the management of the Kune Vain protected area. The conservation measures of the proposed GEF alternative are actions which are ‘additional’ to the baseline. These additional actions will complement existing and planned activities consistent with the Strategic Principles of the Albanian Biodiversity Strategy and the implementation of the constructed wetlands.
Costs: The total cost of the GEF alternative is estimated at US$ 12,230,000.
GEFEIBGoA
TotalSewage Pollution Reduction4,380,0005,640,000720,00010,740,000Environmental Management and Monitoring200,0001,000,0001,200,000Replication Promotion200,000200,000Project Management90,00090,000Total 4,870,0006,640,000720,00012,230,000
Benefits: The implementation of the GEF Alternative would provide the means to protect unique coastal landscape and marine habitats, as well as restoring high priority wetlands (Kune-Vain) and several habitats for important bird species. Benefits generated from the project would include those of local nature such as protection of local and regional environmental resources and increased public awareness of environmental issues as well as those of global nature such as reduction of nutrients in flow waters and the protection of rare and unique ecosystem. The GEF grant has helped leverage funds from other donors for additional activities.
Incremental Costs
The difference between the cost of Baseline scenario (US$ 21,930,000) and the cost of the GEF Alternative (US$ 34,160,000) is estimated at US$ 12,230,000. This represents the incremental cost for achieving sustainable global environmental benefits. Of this amount, the Government of Albania has committed to finance US$ 720,000, while US$ 6,638,000 is leveraged from the European Investment Bank. The amount requested form GEF is US$ 4,870,000.
Table 4 - Incremental Cost Matrix
Component
US $Domestic BenefitGlobal BenefitSewage Pollution Reduction
(through construction of artificial treatment wetlands)
Baseline:US$ 21,800,000Improvement in water and wastewater services, including improved management of water utilities and rehabilitation of existing water infrastructure. Improvement in wastewater collection will have no significant impact on nutrient reduction and therefore environmental deterioration of water and land and their ecosystem will continue.With GEF Alternative:
US$ 32,540,000Waste water treatment through artificial wetlands will yield significant nutrient reduction and will help restore endangered coastal and marine habitats and protect globally significant biodiversityIncremental Benefit:
US $ 10,740,000
Environmental Management and Monitoring
(through capacity building for water quality and biodiversity monitoring and protected area management)Baseline:
US$ 100,000Some capacity to monitor water quality as part of improved management of water utilities; limited capacity to plan and implement protected area management in wetlands and protected areasWith GEF Alternative:
US$ 1,300,000Increased capacity to monitor water quality and biodiversity indicators; increased capacity to manage a protected area; effective management structure for the Kune Vain protected areaSustainable integrated management of marine and coastal ecosystems and globally significant wetlands; meaningful participation of stakeholders in protected area management activitiesIncremental Benefit:
US$ 1,200,000Public Awareness and Replication Baseline:
US$ 30,000Increased awareness of consumers about efficient use of water resources With GEF Alternative:
US$ 230,000Creation of opportunities for public educationIncreased local, national and international understanding of threats to globally significant ecosystems and strategy for replication of project achievementsIncremental Benefit:
US$ 200,000Project Management, Monitoring and EvaluationBaseline:Not applicableWith GEF Alternative:
US$ 90,000Increased local capacity to manage projectsInformation dissemination and knowledge sharing within the country and regionIncremental Benefit:
US$ 90,000TOTALBaseline:
US$ 21,930,000
With GEF Alternative: US$ 34,160,000
Increment:
US$ 12,230,000
Cost effectiveness ratio
Table 5 - Removal Efficiency (RE) and inlet/outlet per inhabitant BOD5 and Nutrients
RE %Assumed
Wastewater CTW Inlet
(mg/l)Expected
Wastewater CTW Outlet
(mg/l)Expected
Reduction
(mg/l)BOD5 (in Durres)70%25075175BOD5 (in Saranda and Lezhe)70%20060140Nutrient Nitrogen50%502525 Phosphorus25%25187
Multiplying the reductions (milligrams per litre of wastewater) with the total wastewater production per municipality, results in the following total tons reduced for each municipality in the first year of operation. These quantities increase proportionally with the number of inhabitants as can be seen in the section on data and calculations on Annex 18 (Economic Analysis).
Table 6 - Quantities of substances reduced for years 2004 and 2023 for each municipality
(tons/years)
Coastal citiesReference
YearoperationEstimate population Wastewater production
(m3/year)Expected
Reduction of pollution loads
(tons/years)BOD5
Nitrogen PhosphorusDurres2004150,0003,500,350612.5087.5024.502023250,00011,037,6001,931.50276.0077.00Lezhe200418,000419,75058.5010.502.90202330,0001,262,900177.0031.508.80Saranda200430,000700,80098.0017.504.90202360,0002,628,000368.0065.5018.00
Table 7 - Cost Effectiveness-Durres
Incremental effectsTotal BOD 5 reduction (20 years/ton)24.846Total Nutrient reduction (Nitrogen/N) (20 years/ton)3.550 (Phosphorus/Ph) (20 years/ton)991Abatement costsUS$Lek (*1000)Total incremental costs5.663.000792.820Abatement costs ton/BOD522832Abatement costs ton/Nitrogen1.595223Abatement costs ton/Phosphorus5.712800Total annual cost per inhab (capital costs + M&O)5,130,718Investments per inhab.385,285Average Incremental Costs per cu m treated0,040,006
Table 8 - Cost Effectiveness-Lezhe
Incremental effectsTotal BOD 5 reduction (20 years/ton)2.302Total Nutrient reduction (Nitrogen/N) (20 years/ton)411 (Phosphorus/Ph) (20 years/ton)114Abatement costsUS$Lek (*1000)Total incremental costs1.057.000147.980Abatement costs ton/BOD545964Abatement costs ton/Nitrogen2.575360Abatement costs ton/Phosphorus9.2441.294Total annual cost per inhab (capital costs + M&O)7,701,078Investments per inhab.598,221Average Incremental Costs per cu m treated0,060,009
Table 9 - Cost Effectiveness-Saranda
Incremental effectsTotal BOD 5 reduction (20 years/ton)4.539Total Nutrient reduction (Nitrogen/N) (20 years/ton)808 (Phosphorus/Ph) (20 years/ton)223Abatement costsUS$Lek (*1000)Total incremental costs858.000120.120Abatement costs ton/BOD518926,467Abatement costs ton/Nitrogen1.061149Abatement costs ton/Phosphorus3.846538Total annual cost per inhab (capital costs + M&O)3,770,528Investments per inhab.294,004Average Incremental Costs per cu m treated0,030,004
Annex B:
Project Logical Framework
ALBANIA: Intergrated Water & EcoSystems Management GEF
Hierarchy of ObjectivesKey Performance IndicatorsData Collection Strategy
Critical AssumptionsSector-related CAS Goal:Sector Indicators:Sector/ country reports:(from Goal to Bank Mission)
Improve infrastructure and create institutional environments conducive to infrastructure sustainability.
Promote environmental sustainability and sustainable use of natural resources
Framework developed for protection of natural resources
Enforcement of environmental regulations improved
Concrete decentralization of environmental services to local government - quantified
Integration of environmental considerations in sectorial policies - number of environmental units established - effectiveness of environmental units
Project Status reports
Project's Implementation Completion Report
Country reports
Government committed to environmental sustainability.GEF Operational Program:Outcome / Impact Indicators:
OP12: Integrated Ecosystem Management.
OP2: Coastal, Marine and freshwater Ecosystem
OP9: Integrated Ecosystem Management
Global Objective:Outcome / Impact Indicators:Project reports:(from Objective to Goal)
The global objective of the project is to improve the health and habitat conditions of the global significant ecosystems along the coastline of Albania, by significantly reducing uncontrolled wastewater discharged into international waters and improving the management of the tidal marshland of Kune-Vain.
Increased number and size of endangered species population in the participating coastal areas and the Kune-Vain marshland.
Decrease nutrient load to the marine environment in the project area and the Kune-Vain tidal marshland as follows:
Nitrogen: 115 t/a
Phosphorus: 32 t/a
Project Status reports.
Project's Implementation Completion report.
Coastal Monitoring report.
Kune-Vain Monitoring report.
No additional negative environmental impact will occur in the project area, e.g. oil spill from tanker.
Local and Central Government are continuing their commitment to environmental protection in the area.
Government honors their commitment to support the water and wastewater utilities in the participating cities.
Management Contract with Private Operator successfully implemented (under separate IDA project).
Integrated Management Plan implemented for Kune-Vain Protected Area.
Project Status reports.
Project's Implementation Completion report.
Annual Kune-Vain Report.
Commitment of all stakeholders to implement Kune-Vain Management Plan continues.Project Development Objective
The Project Development Objective is to improve wastewater services in the cities of Durres, Lezhe and Saranda. (This objective will be achieved through the components financed by EIB and the IDA credit for the Albania - Municipal Water and Wastewater Project.)
Wastewater collection and discharge in the participation cities improved.Output from each Component:Output Indicators:Project reports:(from Outputs to Objective)
Sewage Pollution Reduction Component
Reduce sewage pollution load into coastal areas and Kune-Vain marshland.
CTW constructed and operational.
Removal efficiency of CTWs: 50 percent for Total Nitrogen, and 25 percent for Total Phosphor.
Project Status reports.
Project's Implementation Completion report.
Government Counterpart funds provided in a timely manner.
No flaws in design of CTW.
Land provided by Government in a timely manner.Environmental Management and Monitoring Component
Prepare Management Plan for the Kun-Vain wetland.
Improve environmental monitoring capacity in coastal areas.
Improve environmental monitoring capacity in Kune-Vain Managed Area.
Increase capacity to manage the protected Kune-Vain wetland.
Management Plan prepared and selected priority measures implemented
Monitoring capacity strengthened in coastal areas.
Monitoring capacity strengthened in The Kune-Vain Managed Area.
All rangers trained.
Monitoring equipment supplied.
Project Status reports.
Project's Implementation Completion report.
Incentives for rangers in place to participate in the training and stay in the job afterwards.
Sufficient monitoring capacity available in the country, e.g. Tirana University.
Replication and Public Awareness Component
Increase awareness for protecting the biodiversity in the project area.
Promote replication of the project in other areas of Albania and the region.
Environmental Education and Communication Program delivered.
Replication Strategy developed and implemented.
Information disseminated to beneficiaries and decision makers at potential replication sites.
Workshop with decision makers conducted.
Project Status reports.
Project's Implementation Completion report.
Replication potential exists.
Substantial number of interested decision makers can be identified and mobilized.
Project Management Component
Project Management, Monitoring and Evaluation established and operational.
PIU operational.
Project progress reports delivered on schedule.
Project Status reports.
Project's Implementation Completion report.
Operational support from key government agencies provided.Project Components / Sub-components:Inputs: (budget for each component)Project reports:(from Components to Outputs)
Sewage Pollution Reduction
Wetlands
Main collectors
Land acquisition
Environmental Management and Monitoring
Replication and Public Awareness Component
Project Management
Budgets in US$:
Incremental Cost:
GEF:
Wetlands: 4,380,000
Env. Manag./Monit.: 200,000
Replication: 200,000
Project Management: 90,000
4,870,000
GoA:
Land acquisition: 720,000
720,000
EIB:
Main collectors: 4,300,000
Pretreatment: 640,000
Convent. Treat. Plant 700,000
Env. Manag./Monit.: 1,000,000
6,640,000
Baseline:
IDA: Management Contract which includes the operation of the sewage systems is financed by IDA under the Municipal Water and Wastewater Project
21,930,000
Total Project cost:
GEF: 4,870,000EIB: 6,640,000
12,230,000
Project Status reports.
Project's Implementation Completion report.
High qualified PIU staff can be maintained at all times.
Annex C:
Annex C1: RESPONSE TO GEF SECRETARIAT’S COMMENTS
Pipeline Entry
Global importance of threatened biodiversity and international waters need to be more clearly documented.
The ecosystem endangered biodiversity and water pollution causes are described in Section B1a, B2.1 and B2.2 of the Project Brief.
Sustainability will need to be addressed at work program entry.
Project sustainability, including financial sustainability is discussed in Section 3(b) of the Executive Summary as well as Section E2 and F1 of the Project Brief.
A public involvement plan will need to be in place at work program entry.
The project plan for public participation is summarized in Section 3(d) of the Executive Summary and detailed in Section E6 of the Project Brief
Incremental cost analysis details to be documented at work program entry.
See Annex A of the Executive Summary as well as Section E1 and Annex 3 of the Project Brief.
Financial Sustainability to be documented at work program entry.
See above.
Collaboration with other institutions to be documented during project preparation.
See Section 5(b) of the Executive Summary.
Complementarity with ongoing activities should be documented at work program entry.
See Section 5(b) of the Executive Summary and Section B1a. of the Project Brief.
Monitoring & Evaluation and Indicators to be in place at work program entry.
The monitoring and evaluation plan and indicators are discussed in Section 3(e) of the Executive Summary and in Annex 1 of the Project Brief.
Work Program Submission
Capacity Building: Local capacity at both institutional and operational level has been thoroughly analyzed during project preparation and is addressed in the Project Brief in different sections (Sector issues, Institutional and implementation arrangements, project description). In summary, there is very little capacity in Albania to operate constructed treatment wetlands. In fact, there is very little capacity to operate waste water treatment in general, since there are no treatment plants in the country. Significant technical assistance to the local water and wastewater utilities is provided under the IDA portion of the project (the GEF project is blended to an IDA-supported US$ 22 million for municipal water and wastewater that was approved last January). The IDA project supports the introduction of utility management based on private practices and will support extensive training and capacity building on both operational and management aspects including the operation and management of the constructed wetlands.
Regarding local capacity, for biodiversity conservation, the country has limited resources to train and carry out adequate work in its protected areas. The Kune Vain protected area, which is part of the project, is under several threats ranging from illegal buildings, tree cutting and illegal fishing, and lacks a strategy for sustainable management of the resources. Therefore the project, through its Environmental Management and Monitoring component, will provide technical assistance to help prepare a management plan for the Kune Vain protected area as well as training for the protected area staff on ecosystem management and will help implement selected priority measures as identified in the management plan. The project will also support strengthening the monitoring capacity of local institutions responsible for water quality and biodiversity through adequate training and limited equipment. At institutional level, the project - during preparation - supported the creation of a better institutional framework for the Kune Vain protected area which is in the process of being designated as "managed reserve" (instead of hunting reserve).
Monitoring and Evaluation: Basic monitoring of water quality and ecosystem is carried out by various local institutions, including the water utilities, the Ministry of Environment, the Directorate of Forestry and Pastures, the University of Tirana. The MoE, for example, has recently issued a monitoring report on the Kune Vain protected area. The project however will support the development of a monitoring program for the water quality and biodiversity indicators in the project areas, to be able to monitor the expected outcome of the project. Baseline information on current indicators and targets to be achieved at he end of the proejct are extensively analyzed in the Feasibility Study Report (Annex 3 to 10 and Annex 15, if you are interested we can provide you with a copy of the report. Normally we do not attach these reports to our Project Documents). The operator of the CTWs together with the local water utilities will be responsible to monitor water quality and report on the CTWs efficiency. The MoE and the Kune Vain administration will be responsible for carrying out the monitoring of biodiversity status in the coastal area and the protected area respectively. The Project Implementation Unit will have the responsibility to monitor and report the project progress and achievement. Roles and responsibilities are described in the section on Institutional and Implementation Arrangements.
Local stakeholder involvement: The project had an extensive consultation process initiated very early on in project preparation. Because of the relevance of involving stakeholders in the project design (for the selection of the CTW sites, for example) the project has required more time for preparation than originally anticipated (with the consequence that the IDA portion of the project went ahead and got approved last January). The whole section on Social Issues in the Project Brief addresses very thoroughly all the points raised by the review (participatory approach and stakeholder involvement both during preparation and implementation, list of participants, issues raised during the consultations, etc.) Clearly, details such as the minutes of consultation meetings are not provided in the Project Brief. However, if needed, we can provide a copy of the report prepared by the local facilitator that has been instrumental in arranging and carrying out the several meetings already held in the 3 local communities that are part of the project. Stakeholder consultations will continue during project implementation for both the constructed wetland component and the protected area component. The project is also supporting an awareness program to ensure that the project reaches out to all level of the society.
Sustainability of PAs: The main characteristics of the Kune Vain protected areas are described in annex 2 of the Project Brief. The long-term economic sustainability of this protected area will be addressed by the project through the preparation and implementation of the Kune Vain management plan. The plan will look at various economic mechanisms that could provide some financial support for the protected areas. With the designation as a managed reserve, the Kune Vain marshland would be eligible for increased financial support from government. The institutional sustainability of the protected area will be achieved through strengthening the management and enforcement capacity of the Kune Vain management board and administration.
Other comments:
Baseline information on biodiversity: More information has been provided in Annex 2 of the Project Brief.
Logical framework: it has been revised to provide more specific output indicators.
Incremental Cost: cost and financing have been better defined in the ICA annex.
Site selection: the selection of the 3 municipalities has been pre-determined by the IDA-supported Municipal Water and Wastewater project. The selection of the CWT sites, on the other hand, has been the result of extensive and highly participatory consultations with all stakeholders.
Replication: a replication strategy will be developed and implemented during the project
EIA: The EIA has been already carried out but as, all other details required prior to Board approval, will be finalized at the time of project appraisal scheduled for June 2003.
STAP Roster Technical Review
ALBANIA: Intergrated Water & EcoSystems Management GEF
STAP Review of the GEF Project component
GOVERNMENT OF ALBANIA: INTEGRATED WATER & ECOSYSTEMS MANAGEMENT
Richard Kenchington
RAC Marine Pty Ltd
PO Box 588Scientific and technical soundness
The detail provided on the operational design of constructed treatment wetlands was limited, but the scientific and technical basis of using wetlands to reduce the level of sewage pollution contaminants flowing through to environmental waterways is sound. The project is linked with the Bank’s Municipal Water and Wastewater Project and addresses the critical issue of reducing nutrient pollution resulting from untreated discharges from the cities of Durres, Lezha and Saranda. It makes an important environmental linkage by also addressing the preparation and implementation of an effective Management Plan for Kune-Vain natural reserve.
The basic premise is to implement environmentally sustainable natural wastewater treatment and link this with improved management and monitoring of areas with globally important biodiversity. If successful it will address an important element of the environment/poverty linkage and should contribute to building national awareness of the importance and benefits of addressing environmental issues.
The proposal is also linked with the EU PHARE financed Karavasta Lagoon – Wetland Management Project and the UNDP GEF project on Conservation of Wetland and Coastal Ecosystems in the Mediterranean Region. It also links with the Mediterranean Action Plan (MAP) funded and coordinated by the United Nation Environment Program (UNEP) and within MAP to the Program for the Assessment and Control of Pollution in the Mediterranean Region More broadly, it builds upon and should extend the practical demonstration of implementation and benefits of comparable pollution reduction projects being undertaken in catchments draining into the Baltic and Black Seas.
Global environment benefits and costs
Nutrient pollution of enclosed seas has been identified as an environmental issue of global significance. Major changes in the Adriatic Sea have been attributed to very high levels of eutrophication with impacts on the habitats of endangered species and biological diversity generally. If this project achieves its objectives it will have clear benefits in addressing a significant source of nutrient pollution of the Adriatic Sea from Albania.
The context of GEF goals and guidelines
The project clearly addresses the issues of surface water contamination within the context of environmental-poverty linkages. It should bring early benefits through improvements to public health and the living conditions of some of the poorest people. With adequate attention to information and education it should help to generate understanding of the social and economic importance of the benefits of good environmental management.
The project is consistent with the objectives GEF Operational Programs No.2 Coastal, Marine, and Freshwater Ecosystems; Number 8, “Waterbody Based Operational Program”, which focuses “on seriously threatened water-bodies and the most important trans-boundary threats to their ecosystems”. No.9 Integrated Land and Water Multiple Focal Area; No.10 Contaminated-Based and No.12 “Integrated Land and Water Multiple Focal Areas Operational Program”. It applies the guidelines with respect to incremental costs and the log-frame.
Regional Context
The project is important in the context of addressing eutrophication and other pollution related threats to the Adriatic and Ionian Seas.
Replicability
This project builds on experience of projects addressing conservation and management of wetlands in catchments draining into the Black and Mediterranean Seas. It is replicating and extending this experience in the socioeconomic context of the development of Albania. The clearly stated intention in the design concept is that this will develop experience and capacity to replicate similar practices in other catchments draining into the Adriatic and Ionian Seas. The proposal addresses survey and selection of sites for replication.
Sustainability
The use of constructed treatment wetlands is part of a longer term strategy of progressing from the current situation of discharge of untreated sewage into marine and riverine waterways to advanced water treatment. It will bring some immediate environmental improvements.
In the longer term as the financial situation of the water cycle companies is stabilised the strategy envisages investment in secondary treatment facilities with the constructed and natural wetlands operating to provide advanced tertiary treatment with an increasing range of benefits from flows of unpolluted waters. Progress beyond this project to the complete treatment cycle will depend on community willingness to pay the consequent water and sewage charges. This in turn will depend upon demonstration to the community and continuing appreciation by decision-makers of the economic, environmental and social benefits of high quality management of water and sewage, and of the Kune-Vaine protected wetland.
Contribution to future strategies and policies
As discussed above, success with this project should contribute to the broader adoption of high quality water and sewage management and protection of environmentally significant wetlands in Albania.
Involvement of stakeholders
The project proposal recognises that at this stage of its development:
“environmental problems in Albania, like in most other transition countries, still take a secondary place in the order of priorities “
and that Albania:
“lacks a politically active and environmental conscious elite to actively steer the country toward an environmentally conscious development”.
To achieve extension needed to secure the long term benefits of this project will require:
“decentralized and financially self sufficient management units with a strong involvement of local civil society.”
A key element for the future is willingness to pay. In this case that will depend on awareness of the social, economic and environmental benefits of water treatment and wetland management and of the costs of failure to manage.
The proposal indicates that
“the rationale, benefits and objectives of the project should be made known to all stakeholders through effective public awareness programs. The benefits of sustainable wastewater treatment need to be demonstrated and the results widely disseminated.”
There is no discussion of approaches to achieve this beyond:
“ it is expected that consultation with beneficiaries will be on a continuous basis during project implementation through public relations campaigns conducted by the private operator under the Municipal Water and Wastewater Project.”
There is no provision for community or school based education in this process and this is a significant issue given the critical importance of developing the necessary understanding to achieve long term willingness to pay. Other environmental projects have demonstrated the benefits of accelerating the acceptance of information into communities through school children having good information and discussing it within family groups and through encouragement of discussion through local activities in the media, cultural and community groups.
Risk assessments
To the extent that I can judge, being unfamiliar with the field operating situation, the risks seem to be reasonably discussed and I generally concur with the assessments. In particular the identification of willingness to pay as a substantial risk suggests that, as discussed above, a more deliberate and costed education strategy would strengthen to the proposal.
Costs
I have insufficient operational experience in the target area to make substantial comment on the detail of funding allocations. However the budget for replication is very small $100K out of $5.5 million GEF or almost $13 million total. Given that replication funding will in any case be used for identifying and surveying additional sites for replication there is no effective provision for education in this item. It may be subsumed under another heading but that is not apparent. In the light of comments above on the role of school and community education in development of willingness to pay I would suggest that the design team consider making clear provision for an education component of the program.
Conclusion
This is an important project addressing the issues of sewage pollution, wetland in ways that reasonably reflect the operating constraints of the transitional status of Albania. Subject to adequacy of provisions for education as a means to address immediate and longer term willingness to pay I recommend that it should proceed.
R A Kenchington
RAC Marine Pty Ltd
1 March 2003World Bank Response to STAP Reviewer Comments
The STAP Reviewer recognizes the importance of the project in addressing the issues of sewage pollution in coastal areas and the Kune-Vain tidal marshland. He further concludes that the project reasonably reflects the operating constraints of the transitional status of Albania. He points out the important environmental linkage aimed to promote and improve the management of the natural protected area of Kune-Vain. Also, he judges the risks assessment reasonably discussed and evaluated.
Nevertheless, the STAP reviewer emphasizes the critical importance of developing the necessary willingness to pay which in turn represent a key element for the future sustainability of the project. In particular he points out the lack of an education component in the project that would help to develop the necessary understanding towards the concepts of environmental protection and cost recovery and therefore to strengthen the willingness to pay of the communities.
As correctly noticed by the STAP Reviewer this project is linked with the Bank’s Municipal Water and Wastewater Project (MWWP) of which is an integral part. The project benefits from the results of the socio-economic analysis carried out and the institutional and implementation arrangements established under the MWWP. The MWWP aims to increase the sustainability of water supply and sanitation services through the involvement of the private sector and the associated improvements in financial and operational management. On the other hand the presence of a knowledgeable international operator will contribute to create the local capacity in operating and managing the constructed treatment wetlands. According to the social assessment the willingness to pay is high. Most households are willing to pay the new tariff. In addition, almost all households are willing to pay the monthly fee to connect to the central sewage system and to receive septic-tank cleaning service. Preliminary financial calculations show that the wastewater treatment will increase the sewage tariff by only 2-5 cents/m3 and therefore will not have a negative impact on the willingness to pay. Furthermore the MWWP pays attention in establishing mechanisms that increase public awareness. Public communications activities, awareness campaigns on water and sanitation services and the need to pay for them are part of the contractual obligations of the operator. The project will also sponsor the establishment of a Consumer Panel (CP) to enable those who use water to interact directly with the management and to channel constructive suggestions back to the utilities.
The measures taken in the MWWP are to be considered a sufficient direct contribution to create the required public awareness and to guarantee the understanding of the principles of sustainability also for this project. Nevertheless the recommendations of the STAP Reviewer have been taken in consideration and the PAD has been revised and, subject to the GEF approval, the replication promotion component has been expanded to incorporate an education program aimed to accelerate the acceptance of the new concept of sustainable management into communities through dissemination of information in the schools and encouragement of discussion through local activities in the media, cultural and community groups.
The STAP Reviewer questioned on the implementation of a basic monitoring system of the coastal areas. Albania is among the contracting parties to the Barcelona “Convention for the Protection of the Marine Environment and the Coastal Region of the Mediterranean”, which revised in 1995 the “Convention for the Protection of the Mediterranean Sea against Pollution” , of 1977, still in force. Albania and the other contracting parties to the Barcelona Convention are also part of a comprehensive Mediterranean Action Plan (MAP) funded and coordinated by the United Nation Environment Program (UNEP) which, among others, has the objective to protect the Mediterranean Sea against chronic or accidental pollution. Under the responsibility of the Secretariat of the Mediterranean Action Plan one of the activities implemented under the MAP is the Program for the Assessment and Control of Pollution in the Mediterranean Region (MED POL) for which a program to monitor marine pollution is carried out on regular basis for identified pollution “hot spots”. For Albania the Faculty of Natural Science of the University of Tirana is implementing the program of collecting and analyzing environmental indicators. In addition the project will finance the establishment of a monitoring program for water quality, biodiversity and socio-economic indicators within the protected areas and the coastal zones involved in the project.
The STAP Reviewer asked clarifications on the criteria and budget for the decision making mechanism for the management of natural resources at the municipality and community level. According to the action plan that the Government is implementing towards an integrated and sustainable management of the protected areas, the Ministry of Environment and the General Directorate of Forestry and Pastures will establish a new administration and management board for Kune-Vain. This Board will include among others representatives of the Municipalities and Communes, civil society and a formal representation of the users of the KV Managed Area. It is proposed that the administrative entity for the KVMA should be established under the budget of the General Directorate of Forestry and Pasture.