ROMANIA

BLACK SEA AGRICULTURAL POLLUTION CONTROL PROJECT

Summary Project Concept Note

A. Country[NB1] : ROMANIA

B. Project Name & FY[NB2] Romania – Black Sea Agricultural Pollution Control Project

C. Focal Area International Waters

D. GEF Operational Program: OP 8

E. GEF Implementing Agency: World Bank

F. Country Implementing Agency: Ministry of Waters, Forests and Environmental

Protection (MWFEP) & Ministry of Agriculture and Food (MAF)

G. Total Project Cost: US$5.0 million

H. Financing Plan: GEF Grant US$5.0 million

Possible co-financier – EU (this is being explored)

Total US$5.0 million

ROMANIA

BLACK SEA AGRICULTURAL POLLUTION CONTROL PROJECT

Concept Note

Objectives

The key objective of the project is to reduce the discharge of nutrients (nitrogen and phosphorous) into the Danube River and Black Sea through integrated land and water management. In support of this objective, the Project would assist the Government of Romania (GoR) in its efforts to promote the adoption of environmentally-friendly agricultural practices and to restore part of the former floodplain areas along the lower Danube River, that will reduce the discharge of nutrients and yield substantial benefits in terms of improved water quality of the Danube River and the Black Sea.

The project will demonstrate effective inter-sectoral mechanisms for combining good agricultural practices and wetland rehabilitation to reduce the nutrient (nitrogen and phosphorous) loads into the Danube River and Black Sea and mechanisms to support replication of this comprehensive approach in other parts of Romania as well as in other riparian countries. These activities are directly linked to “Strategic Action Plan for the Protection and Rehabilitation of the Black Sea" (BSSAP), formulated with the assistance of the Global Environment Facility (the GEF). BSSAP has identified non-point sources of agricultural pollution as the most serious problem facing the Black Sea. By improving agricultural practices, through relatively low cost investments, changes in consumer practices and by restoring a high priority former floodplain area, the Project would also complement the Danube River Pollution Reduction Program and assist the Government in meeting its international obligations under the Bucharest Convention, the Odessa Ministerial Declaration on the Protection of the Black Sea, Danube River Protection Convention as well as moving towards meeting the European Union Directives.

Background and Sector Context

Protecting and enhancing the environment is one of the four main development challenges identified in Romania CAS. Romania is the biggest contributor of nutrients to the Black Sea as its entire territory drains into the Black Sea. The Transboundary Diagnostic Analysis (TDA) conducted in the region for the Black Sea and Danube Rivers recommends control of agricultural pollution and priority wetland rehabilitation as the most effective ways to reduce pollution from nutrients of the Danube River and Black Sea. To meet this development challenge, the project will (i) promote environmentally-friendly agricultural practices and monitor water quality; (ii) restore high priority floodplain areas; (iii) strengthen the related policy and regulatory capacity of the Government of Romania; and (iv) raise public awareness for the need for sustainable agricultural production systems.

On-farm environmental management is an integral part of the Government’s overall strategy for the agriculture sector, which is aimed at creating an enabling environment to fully realize the sector’s yet unfulfilled potential. In support of the strategy, agricultural input and output prices are being liberalized as is the trade regime. Also, about 80% of the arable land has been restituted to previous owners and heirs. However, as few of the new owners have farming experience, measures are expected to be initiated shortly under the proposed Agricultural Support Services Project (ASSP) to strengthen the Romania’s agricultural research, extension and training complex to make the system responsive to the needs of private farmers and agro-processors which, while increasing productivity, will simultaneously promote conservation and sustainable use of the country’s natural resource base.

The Project is thus in line with the initiatives launched in support of the agricultural sector, through the Agricultural Sector Adjustment Loan, made in support of policy reforms, and the Agricultural Support Services Project, currently under preparation. ASSP is aimed at: (i) providing private farmers and agro-processors immediately-needed technology, information and training to increase sustainable agricultural productivity and rural incomes; (ii) improving the relevance, efficiency and cost-effectiveness of the research and extension system and making the agricultural knowledge system more responsive to the needs of clients. The proposed Project builds on the measures to be implemented under the ASSP to promote environmentally benign practices for the storage, management and application of manure, sustainable agricultural practices such as conservation tillage, contouring, buffer strips, etc. to reduce over the long-term the discharge of nutrient load into the Romanian ground and surface waters as well as the Black Sea.

Project Scope

An Inter-Ministerial Working Group together with representatives of various stakeholders have identified a compact area in southeastern part of Romania, in the Calarasi County, as the project area. With an approximate surface of 60,000 ha, the project area covers the territories of Gradistea, Ciocanesti, Independenta, Cuza Voda, Alexandru Odobescu and Nicoale Balcescu communes. The southern part of the project area, bordering Danube includes the Boainu-Sticleanu polder (approx. 20,000 ha), formerly a floodplain area, drained and transformed into an agricultural polder in late sixties and now comprising large areas of cultivated land, small areas of floodplain forests and Iezer Calarasi. Iezer Calarasi, with a surface of 600 ha, is proposed to be declared a nature reserve, being an important corridor for bird migration, most of them listed on Bonn and Bern Conventions and represents a resting-place for about 70,000 geese. Moreover, the polder is listed as a high priority area to be restored under the studies done by WWF for the Danube Pollution Reduction Program. The project area is primarily an agricultural area with high levels of agricultural pollution, resulting from: (i) poor agricultural practices, including inappropriate management, storage and application of mineral fertilizers, pesticides, manure and domestic waste; (ii) lack of septic tanks in most of the rural settlements; (iii) soil erosion resulting from unsustainable land use; (iv) destruction of the former floodplain areas; and (iv) lack of waste water treatment plants for both small human settlements and intensive animal production. Groundwater pollution with nitrogen and phosphorous from agriculture has a major social significance from the point of view of drinking water supply for rural settlements in the region. In 1997, a general pollution of groundwater with nitrites, nitrates and phosphates was observed in more than 30 % of investigated wells.

Project Components

The following project components and activities are proposed as the most efficient in reducing the discharge of nutrients (Nitrogen and Phosphorous) into the Danube River and Black Sea.

(i) Promotion of Environmentally-friendly Agricultural Practices which will maintain or increase the productivity of, while reducing non-point source pollution from, agriculture. The proposed activities include: (i) support for farmers associations to promote more environmentally-friendly farming practices, such as crop rotation, integrated pest management, minimum tillage, buffer strips and improved livestock management; (ii) establishment and management of manure and refuse storage areas and their field applications; (iii) soil testing and the optimum application of organic and inorganic fertilizers, etc. (iv) monitoring and evaluation of soil and water quality. It will also consider establishing mechanisms to replicate these best agricultural practices throughout Romania.

(ii) Integrated Management of the Boianu – Sticleanu polder which would include the preparation and implementation of a land management plan, including the ecological restoration of the degraded land adjacent to Iezer Calarasi and of the unproductive riparian land, creating buffer areas around Iezer Calarasi, and promotion of sustainable grazing and afforestation. This component will complement the restoration activities on Bulgarian side (Oriahovo, Bulgarian Danube islands and the floodplain west of Belene and Tutracan).

(iii) Strengthening of Policy and Regulatory Capacity, which will include: (a) support to the MAF and MWFEP to amend the re-published Law 18 (Land Law) to eliminate taxes from those agricultural lands that will be afforested; (b) harmonization of national legislation with EU – (e.g. Nitrates Directive); (c) creation the legislative framework for the promotion of organic agriculture; and (d) clarification of the legislative framework for afforestation in polder areas.

(iv) Public Awareness - This project component will be achieved through preparation and implementation of a public awareness plan to increase understanding for the environmentally-sound agricultural practices and dissemination of good agricultural practices for water and soil protection. The plan will consider adapting the Code of Good Agricultural Practices used by EU countries according to the CEE Council Directive regarding water protection against pollution with nutrients originating from agriculture – 91/676/CEE (Nitrates Directive). The public awareness activities will target both farmers and the general public.

Global Environmental Benefits

The project’s objective of reducing non-point sources of pollution from agriculture is consistent with GEF Operational Program Number 8, “Waterbody Based Operational Program”, which focuses “mainly on seriously threatened water-bodies and the most important trans-boundary threats to their eco-systems”. Under the Program, priority is accorded to projects that are aimed at “changing sectoral policies and activities responsible for the most serious root causes or needed to solve the top priority trans-boundary environmental concerns”.

The proposed project will help reduce barriers to farmers’ adoption of environmentally-friendly agricultural practices and allow the Government to consider scaling-up the program in the near future. The project will provide an opportunity for the GEF to be a catalyst for actions to bring about the successful integration of land and water resource management practices. Without GEF assistance, Romania might undertake a series of small activities in different parts of the country to address the problems of the Danube river and Black Sea pollution outlined above. This approach would lack a comprehensive inter-sectoral mechanism to coordinate the financing, program efforts and geographical targeting of activities. GEF funding would provide essential resources to accelerate the program, to demonstrate the need for a holistic approach to control nutrient loads into the Danube River and Black Sea and to undertake a public outreach program for the project’s success.

Project Costs

The total project cost is estimated at US$5.0 million to be funded by GEF. Currently, the possibility of EU as a co-financier is being explored.

Implementation Arrangements

It is proposed to establish a Project Oversight Committee comprising representatives of the Ministry of Waters, Forests, and Environmental Protection (MWFEP), Ministry of Agriculture and Food (MAF) and Ministry of Finance (MOF), to be chaired by the Minister of Environment, who will be responsible for providing project oversight, advice and assistance in resolving issues associated with project implementation. The MWFEP and MAF will have overall responsibility for the project, including procurement, disbursement, maintenance of project accounts and coordination of implementation. For this purpose, the MWFEP and MAF will establish a Project Coordination Unit (PCU), (location to be decided jointly by the MWFEP and MAF) and which will consist of a project coordinator, a procurement officer, and a financial manager. The PCU will be responsible for monitoring project performance. A Project Implementation Unit (PIU) located in the field – probably at Calarasi branch of the DGA will be responsible for project implementation. This option has not been discussed yet with the representatives of the two Ministries. The PIU will be assisted in the field by a Local Advisory Group, comprising representatives of key stakeholders.