Document of
The World Bank
Report No:
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED GLOBAL ENVIRONMENTAL FACILITY GRANT
IN THE AMOUNT OF US$7.5 MILLION
TO THE
REPUBLIC OF BULGARIA
FOR A
WETLANDS RESTORATION AND POLLUTION REDUCTION PROJECT
MAY 6, 2002
Environmentally and Socially Sustainable Development Department
South Central Europe Country Unit
Europe and Central Asia Region

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CURRENCY EQUIVALENTS
(Exchange Rate Effective March 25, 2002)
Currency Unit = Bulgarian Leva (BGN)
BGN 1.00 = US$0.45
US$1.00 = 1.14 EURO
FISCAL YEAR
July 1 -- June 30
ABBREVIATIONS AND ACRONYMS
CAS
Country Assistance Strategy
MoAF
Ministry of Agriculture and Forestry
CC
Consultative Council
MoEW
Ministry of Environment and Water
CY
Calendar Year
N
Nitrogen
BSP
Business Support Center
P
Phosphorous
BSSAP
Black Sea Strategic Action Plan
PAL
Protected Areas Law
DCPO
Danube-Carpathian Programme Office
PCU
Project Coordination Unit
EA
Environmental Assessment
PHARE
Poland and Hungary Aid for Restructuring
EIA
Environmental Impact Assessment
of the Economies
EMP
Environmental Management Plan
PIP
Project Implementation Plan
EU
European Union
PMR
Project Management Report
FY
Fiscal Year
PNP
Persina Nature Park
GEF
Global Environmental Facility
PPU
Project Preparation Unit
GoB
Government of Bulgaria
PSC
Project Steering Committee
IBRD
International Bank for Reconstruction and
SA
Special Accounts
Development
SAPARD
Special Accession Program for Agriculture
ICPDR
International Commission for the Protection of
and Rural Development
the Danube River
SOE
Statement of Expenditure
ISPA
Instrument for Structural Policies for
TBI
To be Identified
Pre-Accession
TDA
Transboundary Diagnostic Study
KBPS
Kalimok Brushlen Protected Site
UNDP
United Nations Development Program
LACI
Loan Administration Change Initiative
USAID
United States Agency for International
LCU
Local Coordination Unit
Development
LIL
Learning Innovation Loan
WWF
World Wildlife Fund
M
Million
WWTP
Wastewater Treatment Plant
WEIGHTS AND MEASURES
ha
hectare
m3/sec
cubic meter per second
kg
kilogram
masl
meters above sea level
kg/ha
kilogram per hectare
mm
millimeter
kg/year
kilogram per year
ton
tones
m
meter
Vice President:
Johannes F. Linn
Country Director:
Andrew N. Vorkink
Sector Director:
Laura Tuck
Task Team Leader:
Rita E. Cestti

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BULGARIA
WETLANDS RESTORATION AND POLLUTION REDUCTION PROJECT
CONTENTS

A. Project Development Objective
Page
1. Project development objective
2
2. Key performance indicators
2
B. Strategic Context
1. Sector-related Country Assistance Strategy (CAS) goal supported by the project
3
2. Main sector issues and Government strategy
4
3. Sector issues to be addressed by the project and strategic choices
8
C. Project Description Summary
1. Project components
8
2. Key policy and institutional reforms supported by the project
11
3. Benefits and target population
11
4. Institutional and implementation arrangements
13
D. Project Rationale
1. Project alternatives considered and reasons for rejection
16
2. Major related projects financed by the Bank and other development agencies
17
3. Lessons learned and reflected in the project design
18
4. Indications of borrower commitment and ownership
19
5. Value added of Bank support in this project
19
E. Summary Project Analysis
1. Economic
20
2. Financial
21
3. Technical
21
4. Institutional
23
5. Environmental
26
6. Social
28
7. Safeguard Policies
30

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F. Sustainability and Risks
1. Sustainability
31
2. Critical risks
31
3. Possible controversial aspects
33
G. Main Conditions
1. Effectiveness Condition
33
2. Other
34
H. Readiness for Implementation
35
I. Compliance with Bank Policies
35
Annexes
Annex 1: Project Design Summary
36
Annex 2: Detailed Project Description
42
Annex 3: Estimated Project Costs
52
Annex 4: Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Summary
56
Annex 5: Financial Summary for Revenue-Earning Project Entities, or Financial Summary
62
Annex 6: Procurement and Disbursement Arrangements
63
Annex 7: Project Processing Schedule
76
Annex 8: Documents in the Project File
78
Annex 9: Statement of Loans and Credits
79
Annex 10: Country at a Glance
81
Annex 11: Social Assessment Summary
83
Annex 12: Process Framework for Mitigating Potential Adverse Livelihoods Impacts
89
MAP(S)

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