Document of
The World Bank
Report No:
DRAFT ONLY
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED GLOBAL ENVIRONMENT FACILITY TRUST FUND GRANT
IN THE AMOUNT OF US$5.15 MILLION
TO THE
GOVERNMENT OF ROMANIA
FOR
AGRICULTURAL POLLUTION CONTROL PROJECT
August 18, 2001
Environmentally and Socially Sustainable Development Unit
Europe and Central Asia Region


CURRENCY EQUIVALENTS
(Exchange Rate Effective August 2001)
Currency Unit = Lei
Lei 1 = US$29,626.86
US$1 = Lei 27,499.50
FISCAL YEAR
January 1 -- December 31
ABBREVIATIONS AND ACRONYMS
ADD
Acute Diarrheic Disease
LACI
Loan Administration Change Initiative
ANCA
National Consultancy Agency for Agriculture
M&E
Monitoring and Evaluation
ARET
World Bank Agricultural Research, Extension MAFF
Ministry of Agriculture, Food and Forests
and Training Project
MOPA
Ministry of Public Administration
ASSP
Agricultural Support Services Project
MOPF
Ministry of Public Finance
BSEP
Black Sea Environmental Program
MWEP
Ministry of Waters and Environmental
BSDRSP
Black Sea Danube River Strategic Partnership
Protection
BSSAP
Black Sea Strategic Action Plan
NEAP
National Environmental Action Plan
CAS
World Bank Country Assistance Strategy
NGO
Non-governmental Organization
CGS
Competitive Grant System
OCAOTA
Office of Judet Cadastral Unit
DGA
Directorate General for Agriculture
OJCAC
Office of Judet Agricultural Consultancy
DGAIA
Directorate General for Agriculture, Calarasi
OJSPA
Office of Judet Soils Unit
ECA
Europe and Central Asia
PCC
Project Coordination Committee
EMP
Environmental Management Plan
PHD
Public Health Directorate
EPI
Environmental Protection Inspectorate
PIU
Project Implementation Unit
FMS
Financial Management System
PMR
Project Management Reports
EU
European Union
PMU
Project Management Unit
FAO
Food and Agricultural Organization
PPU
Project Preparation Unit
GEF
Global Environment Facility
PSC
Project Steering Committee
GOR
Government of Romania
RAS
Romania Accounting Standards
ICCPT Research Institute for Cereals & Industrial Crops RCB
Romanian Commercial Bank
ICPDR International Commission for the Protection
ROL
Romanian Lei
of Danube River
SA
Special Account
ISA International Standard on Auditing
SAPARD
Special Accession Program for Agriculture
and Rural Development
UNDP
United Nations Development Program
USAID
United States Agency for International

Development
Vice President:
Johannes Linn
Country Director:
Andrew N. Vorkink
Sector Director:
Kevin M. Cleaver
Task Team Leader:
Jitendra Srivastava

ROMANIA
AGRICULTURAL POLLUTION CONTROL PROJECT
CONTENTS

A. Project Development Objective
Page
1. Project development objective
2
2. Key performance indicators
3
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
4
C. Project Description Summary
1. Project components
6
2. Key policy and institutional reforms supported by the project
9
3. Benefits and target population
10
4. Institutional and implementation arrangements
11
D. Project Rationale
1. Project alternatives considered and reasons for rejection
12
2. Major related projects financed by the Bank and other development agencies
13
3. Lessons learned and reflected in the project design
14
4. Indications of borrower commitment and ownership
15
5. Value added of Bank support in this project
15
E. Summary Project Analysis
1. Economic
14
2. Financial
16
3. Technical
17
4. Institutional
18
5. Environmental
19
6. Social
21
7. Safeguard Policies
22
F. Sustainability and Risks
1. Sustainability
23

2. Critical risks
23
3. Possible controversial aspects
24
G. Main Grant Conditions
1. Effectiveness Condition
24
2. Other
24
H. Readiness for Implementation
25
I. Compliance with Bank Policies
25
Annexes
Annex 1: Project Design Summary
26
Annex 2: Detailed Project Description
30
Annex 3: Estimated Project Costs
39
Annex 4: Incremental Cost Analysis
40
Annex 5: Financial Summary for Revenue-Earning Project Entities, or Financial Summary
45
Annex 6: Procurement and Disbursement Arrangements
46
Annex 7: Project Processing Schedule
60
Annex 8: Documents in the Project File
61
Annex 9: Statement of Loans and Credits
63
Annex 10: Country at a Glance
65
Annex 11: Environmental Data Sheet, Environmental Assessment, Environmental Mitigation Plan
67
Annex 12: Comments of STAP Reviewer
82
MAP(S)