43787
INTEGRATED SAFEGUARDS DATASHEET
APPRAISAL STAGE

I. Basic Information
Date prepared/updated: 05/05/2007
Report No.: AC2774
Public Disclosure Authorized
1. Basic Project Data

Country: Moldova
Project ID: P074139
Project Name: ENVIRONMENTAL INFRASTRUCTURE PROJECT
Task Team Leader: Takao Ikegami
GEF Focal Area: International waters
Global Supplemental ID:
Estimated Appraisal Date: February 27,
Estimated Board Date: May 29, 2007
2007
Managing Unit: ECSSD
Lending Instrument: Specific Investment
Loan
Sector: Sewerage (100%)
Theme: Pollution management and environmental health (P)
IBRD Amount (US$m.):
0.00
Public Disclosure Authorized
IDA Amount (US$m.):
0.00
GEF Amount (US$m.):
4.56
PCF Amount (US$m.):
0.00
Other financing amounts by source:
BORROWER/RECIPIENT
2.13

GLOBAL ENVIRONMENT - Associated IDA Fund
3.21
5.34
Environmental Category: B - Partial Assessment
Simplified Processing
Simple []
Repeater []
Is this project processed under OP 8.50 (Emergency Recovery)
Yes [ ]
No [X]
Public Disclosure Authorized
2. Project Objectives
The overall objectives of the proposed project are to: (i) improve the quality of sanitation
services in Soroca; (ii) reduce the discharge of pollutants, including nutrients, from
Soroca municipal sources that flow into the Nistru River and, subsequently, into the
Black Sea; and (iii) demonstrate and disseminate through feasibility studies and
workshops cost-effective and affordable technologies for municipal wastewater treatment
for the potential benefit of similar projectsfor Moldova?s existing wastewater treatment
plants, for those towns in Moldova that have no wastewater treatment, and for the
countries that drain into the Black Sea.

The key indicators are:

1. The reduction of biological and nutrient wastes discharged from Soroca; and
Public Disclosure Authorized
2. The dissemination through feasibility studies and workshops of the experience from
the appropriate technology pioneered through the Soroca project;

Monitoring and performance indicators will include:

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1. the volume of wastewater effectively treated before and after the project completion
(m3/year);
2. the reduction of pollutants (including suspended solids, BOD and P and N nutrients),
calculated as the difference between the pollutants discharged before and after the project
(tons/year); and
3. the number of proposed replications of the low-cost wastewater treatment technology
in feasibility studies planned for Moldova and its neighboring countries.

3. Project Description
The project consists of the following components:

Component 1-A. Water management in the Soroca municipality (US$7.89 million).
This component would finance: (i) the rehabilitation of water supply and wastewater
collection system and the construction of wastewater treatment facility using constructed
wetlands technology for the municipality of Soroca; and (ii) six month operations of the
constructed wetland facility (CW) in order to train the Apa Canal staff in the proper
operations and maintenance of the facility. The CW is a system in which the wastewater,
after primary mechanical treatment, filters through a vegetated constructed soil layer
where it is cleaned by a wide range of microorganisms at levels allowable to be
discharged directly into the river. The proposed area required for constructing such CW
in Soroca is about 5.5 ha including the additional area for mechanical pre-treatment,
access road, and operational building.

Component 1-B Engineering Consultant and TA (US$1.48 million) This subcomponent
would support: (i) Engineering services for WWTP and sewer network design,
procurement, supervision support, and a six months? operational assistance for WWTP;
and (ii) Feasibility studies for 10 towns and pre-feasibility studies for an additional 5
towns, including replication of constructed wetland system in the studies.

Component 2. Dissemination and Replication Component (US$0.10 million). This
component targets the dissemination of experience and knowledge obtained from
operation of the new Soroca WWTP. This is considered of particular importance due to
the pioneering character of this GEF project, which could prove exemplary to many other
WWTPs in Moldova and in Ukraine. To this end, the new operation building at the
WWTP will include facilities suited for seminars and workshops. The annual water
monitoring workshops would expand in scope and participation with the growing data
base and with the progress of treatment of the Soroca wastewater. The first annual
workshop in year 3 would likely mainly have Moldovan participation; the second annual
workshop in year 4 might have Moldovan and Ukrainan participation, and possibly wider
international participation in coordination with the Istanbul Commission.

Component 3. Institutional Strengthening Component (US$0.15 million). This
component would finance: (i) the development of a communication strategy and capacity
building for media campaign and community and civil- society outreach to prepare for

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the necessary increase of a sewage treatment surcharge; and (ii) Apa Canal staff training
for operational efficiency improvements;

Component 4. Project Management(US$0.28 million). This component would support
management and implementation of the project, including auditing services, by PIU in
the ACTD.

4. Project Location and salient physical characteristics relevant to the safeguard
analysis
The town of Soroca is located on the border with Ukraine on the Nistru River, about 400
km from its inflow into the Black Sea. The Nistru River is a source of the water intake for
the town. The wastewater from Soroca sewage was once treated at upriver ponds before
being discharged into the Nistru River. Some time ago this approach was discontinued
and sewage was piped across the river for treatment down river in Ukraine. This second
approach has also been discontinued, and the raw and untreated sewage is discharged
currently directly into the Nistru River. The project would rehabilitate the pumps and
sewage lines and build a receiving station, and constructed wetlands at the site of the
former treatment ponds. The elimination of the raw sewage discharge would improve the
quality of water in the Nistru (which is used as a water source for numerous communities
in both Moldova and Ukraine), thus resulting in positive impact on the river front of
Soroca, and especially benefit a downstream recreation area.

5. Environmental and Social Safeguards Specialists
Mr Lucian Bucur Pop (ECSSD)
Ms Ruxandra Maria Floroiu (ECSSD)

6. Safeguard Policies Triggered
Yes No
Environmental Assessment (OP/BP 4.01)
X
Natural Habitats (OP/BP 4.04)
X
Forests (OP/BP 4.36)
X
Pest Management (OP 4.09)
X
Physical Cultural Resources (OP/BP 4.11)
X
Indigenous Peoples (OP/BP 4.10)
X
Involuntary Resettlement (OP/BP 4.12)
X
Safety of Dams (OP/BP 4.37)
X
Projects on International Waterways (OP/BP 7.50)
X
Projects in Disputed Areas (OP/BP 7.60)
X
II. Key Safeguard Policy Issues and Their Management
A. Summary of Key Safeguard Issues
1. Describe any safeguard issues and impacts associated with the proposed project.
Identify and describe any potential large scale, significant and/or irreversible impacts:
The proposed project is classified as environmental assessment category B in accordance
with the Bank's Operation Policies. The infrastructure investments financed under the
project are triggering the World Bank Safeguard Policies related to Environmental

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Assessment (OP/BP 4.01) and Projects on International Waterways (OP/BP 7.50). The
environmental impact of the project is mostly expected during the construction stage of
the proposed investments including rehabilitation of sewerage network and constructed
wetland facility. In order to deal with the potential adverse impacts related to these
investments, the Government of Moldova has prepared an Environmental Impact
Assessment (EIA) with affiliated Environmental Management Plan (EMP).

The EIA for the project specified that there were no impacts that would not be covered
by the mitigation and monitoring plans and found no large scale, significant and/or
irreversible impacts. Furthermore, the EIA concludes that there would be no impacts on
the immediately surrounding natural habitats, and downstream natural habitants would
benefit from eliminating discharges of untreated wastewater to the adjacent waterway.

Although the project location is near by the Nistru River, an international waterway, the
specific infrastructure investments proposed under the project are only for rehabilitation
and improvements of existing sewage lines and wastewater treatment system in the town
of Soroca, which is not expected to change the quality or quantity of water in this
waterway. Consequently, the project falls within the exception set forth in paragraph 7 (a)
of OP7.50 as: (a) it will not adversely affect the quality or quantity of water flows to the
other riparians; and (b) it will not be adversely affected by other riparians' water use.
Therefore, given the rehabilitation nature of the activities under the project, it has been
decided that no notification to other riparian states is required under the Bank policy.

Accordingly, an exemption from notification has been prepared for and approved by the
office of the ECA Vice President on March 2, 2007.

There are no land acquisition or resettlement issues. The former pressure sewer pipeline
that runs from the pumping station to the treatment site will be replaced. The pipe runs
under an existing access road, and the right of way is secured by the municipality. The
route runs through an open area, and no structures or trees are located near the alignment.
The now-abandoned sewerage pond system was located on 10 hectares of land. This is
sufficient space for the proposed receiving station and the constructed wetlands. The
land is to be transferred from Egoreni Commune to Soroca Municipality based on a Local
Council Decision issued by the Egoreni Commune on March 30, 2007. This area is
owned by Egoreni Commune and it is open land with no squatters and no informal use.

2. Describe any potential indirect and/or long term impacts due to anticipated future
activities in the project area:
The potential environmental and social implications of the physical investments to be
supported under the project are described in the EIA and EMP. The investments
supported are intended to improve priority urban infrastructure in Soroca municipality
that will reduce sewage and wastewater pollution of the Nistru River. The project
complements the current GEF agricultural pollution control project to aim at reduction of
nutrient pollution of the river that flows into the Black Sea. No significant indirect or
long-term environmental impacts are expected.

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3. Describe any project alternatives (if relevant) considered to help avoid or minimize
adverse impacts.
The Agency for Construction and Territorial Development (ACTD) carried out a
feasibility study of three alternatives: Activated Sludge (AS), Extended Aeration (EA)
and Sequencing Batch Reactor (SBR). Out of the three options SBR is too sophisticated
and involves too many risks for failure under the specific environment in Soroca. The
other two options studied, AS or EA, are feasible but will pose operational challenges for
the Apa Canal staff whose skill level is limited. More serious, the level of operations and
maintenance costs of either treatment method is about US$ 300,000 annually which
would require a sewage treatment surcharge of MDL 11 per cubic meter of wastewater,
or about US$ 0.85 per m3. This surcharge would be around 125% of the average water
tariff at present and about 170% of the domestic water tariff. The surcharge is so high
that it is unlikely that the population would be willing to pay it which in turn would make
the financial and operational sustainability moot.

Under the circumstances, the Apa Canal and the ACTD have opted for low cost
appropriate technologies to reduce BOD, SS and nutrient loads. The most suitable
alternative was found to be "constructed wetlands" that are non-mechanized, robust and
within the capacity of the Apa Canal staff to operate, conditional on additional training
being provided.

4. Describe measures taken by the borrower to address safeguard policy issues. Provide
an assessment of borrower capacity to plan and implement the measures described.
As part of project preparation, the Government has prepared an EIA to address potential
environment and cultural property issues affiliated with the infrastructure investments.
The ACTD has taken a lead role in the contracting and supervision of the preparation of
the EIA. This document meets the current Moldovan legislation and the World Bank's
operation policies on EA. The PIU that will implement the project has established
experience with safeguard issues as a result of its work on previous Bank project (the
Pilot Water Supply and Sanitation Project). The PIU has taken action to clarify issues and
established liaison with the other government stakeholders. The project will also support
capacity building to PIU and the Soroca municipality for further strengthening their
environmental capacity to supervise affiliated investments, including provision of
equipment (monitoring, office furniture) and training especially for the constructed
wetland operation and maintenance activities.

5. Identify the key stakeholders and describe the mechanisms for consultation and
disclosure on safeguard policies, with an emphasis on potentially affected people.
The Agency for Construction and Territorial Development, the Ministry of Environment
and Natural Resources, the Ministry of Health, and the Ministry of Agriculture are the
four major Government stakeholders. The local municipal administration, the Apa Canal,
and the NGOs serving as surrogate water user associations constitute the primary local
stakeholders. Consultation with the Government Stakeholders took place throughout
project preparation. Social surveys, focus groups, and disclosure of documentation took
place in conjunction with the preparation of the EIA. Customer feedback will be elicited
throughout the project by the Customer Service Offices of the Apa Canal.

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The EIA public consultation meeting held in the premises of Mayor Office in Soroca on
June 6, 2006 discussed the overall project goal and the four possible treatment options
applicable to Soroca WWTP. About 25 people attended the meeting representing NGOs,
local environmental agencies, academia and local authorities attended this meeting but no
major concerns were raised. Participants expressed their support for the proposed project
investments and assured of their constant participation during the project implementation.
The revised EIA report including the final treatment option has been publicly disclosed at
the PIU office in Chisinau (in Romanian) and announced locally in the "Monitorul
Oficial al Republicii Moldova" on February 23, 2007. Furthermore, a brief public
information session in Soroca was held on March 15, 2007 to inform citizens and NGOs
about the selected constructed wetland solution. The revised EIA has been disclosed in
Washington, DC Infoshop on March 21, 2007. The final EMP will be revised once the
detail design for the proposed constructed wetland facility is available.

B. Disclosure Requirements Date
Environmental Assessment/Audit/Management Plan/Other:
Date of receipt by the Bank
03/20/2007

Date of "in-country" disclosure
02/23/2007

Date of submission to InfoShop
03/21/2007

For category A projects, date of distributing the Executive

Summary of the EA to the Executive Directors
* If the project triggers the Pest Management and/or Physical Cultural Resources,
the respective issues are to be addressed and disclosed as part of the Environmental
Assessment/Audit/or EMP.
If in-country disclosure of any of the above documents is not expected, please
explain why:
C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the
ISDS is finalized by the project decision meeting)

OP/BP/GP 4.01 - Environment Assessment

Does the project require a stand-alone EA (including EMP) report?
Yes
If yes, then did the Regional Environment Unit or Sector Manager (SM)
Yes
review and approve the EA report?
Are the cost and the accountabilities for the EMP incorporated in the
Yes
credit/loan?
OP 7.50 - Projects on International Waterways

Have the other riparians been notified of the project?
No
If the project falls under one of the exceptions to the notification
Yes
requirement, has this been cleared with the Legal Department, and the memo
to the RVP prepared and sent?

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Has the RVP approved such an exception?
Yes
The World Bank Policy on Disclosure of Information

Have relevant safeguard policies documents been sent to the World Bank's
Yes
Infoshop?
Have relevant documents been disclosed in-country in a public place in a
Yes
form and language that are understandable and accessible to project-affected
groups and local NGOs?
All Safeguard Policies

Have satisfactory calendar, budget and clear institutional responsibilities
Yes
been prepared for the implementation of measures related to safeguard
policies?
Have costs related to safeguard policy measures been included in the project
Yes
cost?
Does the Monitoring and Evaluation system of the project include the
Yes
monitoring of safeguard impacts and measures related to safeguard policies?
Have satisfactory implementation arrangements been agreed with the
Yes
borrower and the same been adequately reflected in the project legal
documents?
D. Approvals

Signed and submitted by:
Name
Date
Task Team Leader:
Mr Takao Ikegami
02/16/2007
Environmental Specialist:
Ms Ruxandra Maria Floroiu
03/09/2007
Social Development Specialist
Mr Lucian Bucur Pop
03/12/2007
Additional Environmental and/or
Mr Bernard Baratz
02/12/2007
Social Development Specialist(s):


Mr Philip W. Moeller

Approved by:

Sector Manager:
Mr Sumter Lee Travers
03/15/2007
Comments:

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