Document of
The World Bank
Report No: ICR0000652
IMPLEMENTATION COMPLETION AND RESULTS REPORT
(WBTF-50327)
ON A
GLOBAL ENVIRONMENT FACILITY TRUST FUND GRANT
IN THE AMOUNT OF SDR 4.0 MILLION
(US$ 5.15 MILLION EQUIVALENT)
TO THE
GOVERNMENT OF ROMANIA
FOR A
AGRICULTURAL POLLUTION CONTROL PROJECT
December 28, 2007
SUSTAINABLE DEVELOPMENT SECTOR DEPARTMENT
ECCU5
EUROPE AND CENTRAL ASIA REGION
CURRENCY EQUIVALENTS
(Exchange Rate Effective November 28, 2007)
Currency Unit = Romanian New Leu (RON)
RON 1.00 = US$ 0.42
US$ 1.00 = RON 2.39
FISCAL YEAR
January 1 December 31
ABBREVIATIONS AND ACRONYMS
ANAR National
Water
Authority
ISR
Implementation supervision report
APC
Agricultural Pollution Control
M&E
Monitoring and evaluation
APCP
Agricultural Pollution Control Project
MAFF
Ministry of Agriculture, Food and Forests
ASSP Agricultural
Support Services Project
MARD
Ministry of Agriculture and Rural
CAP Common
Agricultural
Policy
Development
CAS Country
Assistance
Strategy
MWEP
Ministry of Waters and Environmental
CE Cost
effectiveness
Protection
CGS
Competitive grant scheme
MESD
Ministry of Environment and Sustainable
CGAP
Code of good agricultural practices
Development
DGA
Directorate General of Agriculture
N Nitrogen
EMP
Environmental management plan
ND
Nitrates Directive
EPI
Environmental Protection Inspectorate
NFA National
Forest
Administration
EPA
Environmental Protection Agency
NVZ
Nitrate vulnerable zone
EU European
Union
O&M
Operations and maintenance
GAP
Good agricultural practices
P Phosphorus
GEF
Global Environment Facility
PAD
Project appraisal document
GEO
Global environment objective
PIP Project
Implementation
Plan
GoR
Government of Romania
PMU
Project Management Unit
IBRD
International Bank for Reconstruction and
UNDP
United National Development Programme
Development
USAID
United States Agency for International
ICR
Implementation completion and results
Development
report
US$ United
States
Dollars
INPCP
Integrated Nutrient Pollution Control
WB World
Bank
Project
Vice President: Shigeo Katsu
Country Director: Benoit Blarel (acting)
Sector Manager: Juergen Voegele
Project Team Leader: Doina Petrescu
ICR Team Leader Tijen Arin
Romania
Agricultural Pollution Control Project
CONTENTS
Data Sheet
A. Basic Information
B. Key Dates
C. Ratings Summary
D. Sector and Theme Codes
E. Bank Staff
F. Results Framework Analysis
G. Ratings of Project Performance in ISRs
H. Restructuring
I. Disbursement Graph
1. Project Context, Global Environment Objectives and Design .................................1
2. Key Factors Affecting Implementation and Outcomes ............................................6
3. Assessment of Outcomes ........................................................................................12
4. Assessment of Risk to Development Outcome.......................................................15
5. Assessment of Bank and Borrower Performance ...................................................17
6. Lessons Learned .....................................................................................................22
7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ........22
Annex 1. Project Costs and Financing........................................................................23
Annex 2. Outputs by Component ...............................................................................25
Annex 3. Economic and Financial Analysis...............................................................28
It may be concluded that the CE ratios achieved in Romania are broadly in line with
international experience.Annex 4. Bank Lending and Implementation
Support/Supervision Processes ...................................................................................29
Annex 4. Bank Lending and Implementation Support/Supervision Processes ..........30
Annex 5. Beneficiary Survey Results .........................................................................32
Annex 6. Stakeholder Workshop Report and Results.................................................34
Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders.....................44
Annex 9. List of Supporting Documents ....................................................................45
MAP
DATA SHEET
TO BE ADDED AFTER APPROVAL
1. Project Context, Global Environment Objectives and Design
1.1 Context at Appraisal
The project was designed as part of the GEF / WB regional Black Sea Danube Strategic
Partnership Nutrient Reduction Investment Fund. This Fund aims at reducing nutrient
flows to the Danube River and ultimately the Black Sea. The Investment Fund and the
project in particular are in line with the "Strategic Action Plan for the Protection and
Rehabilitation of the Black Sea" which had identified discharges of nutrients, nitrogen
(N) and phosphorus (P), as the most serious problem leading to the degradation of the
Black Sea ecosystem. Nutrients of agricultural origin were found to constitute more than
50% of the nutrients transported by the Danube River and Romania was a significant
contributor. Like other riparian countries Romania had signed the Bucharest Convention
committing itself to reducing nutrient flows to the Danube.
At the time of Appraisal, Romania was on the path of EU accession and facing the
challenge of harmonizing with the EU environmental acquis. Given its large agriculture
sector, the EU Directive 91/676/CEE- Directive regarding water protection against
pollution with nutrients originating from agriculture ("the Nitrates Directive") was of
special importance. Inappropriate unprotected storage of manure on in backyards and
farm grounds and dumping of manure on roadsides and farms was the main source of
nutrient pollution. Excessive application of fertilizers had ceased to be a source of
nutrient pollution due to the phasing out of subsidies for mineral fertilizers in the early
1990s. On the other hand, Romania's accession to the EU was expected to lead to
renewed intensification of agriculture, notably through mineral fertilization of soils.
Romanian policy makers aimed at counterbalancing this expected trend through the
implementation of the Nitrates Directive, which includes both appropriate fertilization
techniques and proper storage and application to land of manure as part of good
agricultural practices. Policy makers sought a pilot project which would test these
practices under Romanian conditions and devise a strategy for country-wide
implementation.
Agricultural pollution had also consequences for the rural population. Run-off caused
contamination of groundwater wells which were used for drinking water supply causing
nitrate poisoning among infants. In 1997, in the Calarasi County, the project area, an
analysis of samples from 45 public wells revealed that over 79% of the samples exceeded
acceptable levels of chemical content and 76% of samples exceed bacteriological
standards. Poor families who could not afford bottled water were affected most.
The project perfectly fit with the main focus of the 2001 CAS, namely support for EU
accession and poverty reduction. In particular it was consistent with one of in the CAS's
five priorities: Protection and sustainable management of natural resources and the
environment. The project directly addressed the major development challenge of
protecting and enhancing the environment, assisting the country towards EU accession
and institution building. The project was designed as a pilot for later country-wide
implementation of the EU Nitrates Directive.
1
1.2 Original Global Environment Objectives (GEO) and Key Indicators (as approved)
Global environmental objective: To reduce, over the long-term, the discharge of nutrients
(nitrogen and phosphorus) and other agricultural pollutants into the Danube River and
Black Sea through integrated land and water management of the Calarasi region and
ecologically sustainable use of natural resources in two agricultural polders.
Key Indicators:
(i) Percentage of households with livestock in project area adopting improved
manure handling facilities - targeted to move from baseline of zero to 45% by
2006 and 65% by 2010;
(ii) Percentage cropped area coming under nutrient management systems including
crop rotation, crop nutrient management with soil testing, and use of organic
manure - targeted to reach 30% by 2006 and 65% by 2010;
(iii) Percentage of cropped area employing environment-friendly practices - target of
65% by 2010; and
(iv) Trends in water quality indicators at designated sites - flow of nitrogen and
phosphate to Danube River to be reduced by 10% by 2006.
1.3 Revised GEO (as approved by original approving authority) and Key Indicators, and
reasons/justification
The GEO was not revised.
Indicator No.4 "Trends in water quality indicators at designated sites" was revised in the
sense that it would not be measured in numerical values, but only in terms of direction
(positive, neutral or negative.). This was necessary as a numerically measured indicator
would have necessitated a high-cost complex geo-hydrological model and intensive
sampling while adding little to the attainment of the GEO.
1.4 Main Beneficiaries
At appraisal the primary target groups were identified as:
(i) All forty-eight communities (comunas) of the Calarasi County comprising about
410,000 ha of arable land and a total population of 332,000 in 94,000 households,
where the Project would provide support for technology adaptation and extension
interventions for environment-friendly agricultural practices;
(ii) Seven comunas of the Calarasi County comprising a total area of about 90,000 ha
of which 70,000 ha was arable and a total rural population of 26,700 in 10,540
households. These comunas participated in the manure management and
demonstration of environment friendly agricultural practices sub-components;
(iii)Local communities around the Calarasi County who would benefit from the
demonstration effect of the project.
The main target groups did not change during project implementation.
2
Other groups who benefited from the project were Central Government agencies, notably
the Ministry of Environment and Sustainable Development (MESD)1 and the Ministry of
Agriculture and Rural Development (MARD)2, as staff knowledge on environmentally
friendly agriculture was strengthened, allowing them to implement a country-wide
follow-up project in fulfillment of EU Nitrates Directive (ND) requirements.
1.5 Original Components (as approved)
The project comprised four components:
Component 1. Activities in the Calarasi County (US$9.22 with US$4.02 GEF). The
component consisted of four sub-components:
1a. Manure Management Practices (US$5.20 with US$2.54 GEF.) Provision of
incentives to comunas and individual households for the installation of improved
manure storage facilities and equipment for manure collection and application in
seven comunas. Provision of grants to a few large private dairy and pig units
covering up to one third of the cost of installing solid or liquid waste handling
systems. Construction of near impermeable facilities for storing manure would
contribute to the achievement of the project objectives by reducing nutrient
leakage into the groundwater.
1b. Promotion of Environment-friendly Agricultural Practices (US$2.46 with
US$0.82 GEF.) Promotion of (i) environmentally-friendly agricultural activities
(nutrient management, shrub rows, narrow vegetative barriers, conservation
tillage, tree planting and riparian buffer strips), and (ii) demonstration of
integrated crop and nutrient management. Members of the local agricultural
community would be competitively allocated grants for projects demonstrating
application of these practices. As these practices lead to lower application to land
of nutrients and retention of nutrients in soil, their successful replication would
allow an overall reduction in N and P levels reaching the Danube.
1c. Integrated management of Boianu-Sticleanu Polder and Ecological Restoration of
part of the Calarasi-Raul Polder (US$1.09 with US$0.45 GEF.)
(i) In the Boianu-Sticleanu Polder: (a) Plantation of trees for agro-forestry on
the degraded lands adjacent to the Iezer Calarasi and buffer strips on
unproductive riparian land; (b) implementation of the Code of Good
Agricultural Practices (CGAP) on the neighboring arable land; and (c)
implementation of a conservation management plan for the proposed Iezer
Calarasi nature reserve.
1 The name of this Ministry was "Ministry of Water and Environmental Protection" in early phases of the
project. It was changed to "Ministry of Environment and Sustainable Development" during project
implementation. The functions and mandate of the Ministry vis à vis the project was not affected by this
change. For consistency this document refers to it by the latter name.
2 Similarly, in earlier phases of the project the name of this Ministry was "Ministry of Agriculture, Food
and Forests" and was changed to "Ministry of Agriculture and Rural Development". For consistency, in
this document it is referred to as "Ministry of Agriculture and Rural Development".
3
(ii) Regarding the Calarasi-Raul Polder: Studies for restoration of wetlands on
part of the polder and restoration program.
Both sets of activities would reduce the flow of nutrients to the Danube.
Wetlands are known to sequester nutrients.
1d. Strengthening Capacity in Calarasi County (Environmental Protection
Inspectorate (EPI) and Public Health Directorate) to Monitor Soil and Water
Quality and Environmental Impacts (US$0.46 with US$ 0.21GEF.) Setting up,
implementing and provision of training and equipment for a soil and water
program in the project area. Improved monitoring capacity would help policy
makers and regulators plan and enforce measures which limit agriculture's
contribution to nutrient flows.
Component 2. Strengthening National Policy and Regulatory Capacity (US$0.27
with US$0.21GEF.) Support to MESD and MARD for
2a. Work relating to the application of the Nitrate Directive and harmonization of
legislation with EU requirements;
2b. Developing a CGAP; and
2c. Strengthening the National Authority for Ecological Agriculture (NAEA) when it
is established.
The EU acquis requires broad-based application of environment-friendly agricultural
practices in member states' farming communities; hence project support to acquis
implementation would help achievement of the PDO. Support to NAEA which was to
promote scientific organic farming and land use management would help the Government
help the farming community implement these practices.
Component 3. Public Awareness and Replication Strategy (US$0.45 with US$0.38
GEF.) Support for broad public information campaign on the project's activities and
benefits at the local, national and regional levels. The project would strive to induce
behavioral changes necessary to the success of the project (notably use of manure
management system, environmental friendly agricultural practices) so that the overall
goal of reducing nutrient discharge to the Black Sea could be achieved.
Component 4. Project Management Unit (PMU) (US$0.87 with US$0.54 GEF.)
Support to the operations of a PMU located in the offices of the Directorate General for
Agriculture (DGA) of Calarasi. Effective project management would ensure that project
outputs are realized in a timely manner and the project objective is achieved.
1.6 Revised Components
There was no significant change to the project components in the course of
implementation. However some activities in sub-components 1a, 1b, 1c and 2c were
dropped or amended, as listed below (sub-component identified in parentheses):
· A lower number of household platforms were built (2,250 as opposed to the
originally envisaged 4,000) due to significant increases in the cost of these
facilities relative to the costs estimated during project preparation. The increase in
costs was due to a general increase in the price of construction materials and labor
4
and a severe depreciation of the US Dollar against Leu. Transfer of funds from
other project components was considered to partially increase the number of these
facilities, however this idea was rejected, because (i) the households with a large
number of livestock and those most likely to be contributing to nutrient discharge
into the groundwater were already selected to participate in the project; and (ii)
financing additional individual manure storage facilities would not bring
significant impact from the project objective perspective (1a.)
· Support to large private dairy and pig farms from project funds was dropped as no
expressions of interest were received from such farms at the proposed level of
project grant co-financing. The main reason for this lack of interest was the
availability of EU funds at better terms. Facing a choice between increasing the
grant contribution ratio and dropping the activity, the project steering committee
opted for the latter and reallocated funds to the support of activities that were of
higher priority for the local communities, such as afforestation. This was
considered a better use of international grant funds especially since through EU
funds allowed private farms to reduce their nutrient leakages, which also
supported the project's GEO (1a.)
· Equipment for DGA for monitoring (GIS facility Land use information system)
was dropped because the Payment Agency (Agency set up to process rural
development payments to farms) has this equipment and purchasing the same
equipment for the DGA would have been an unnecessary duplication (1b.)
· 488 ha as opposed to the 1,090ha originally planned land in the Boianu-Sticleanu
Polder were afforested. Instead comparable erosion prone land in the terrace area
was afforested and the total afforested land reached 1,570ha. The reason for this
shift was that a significant portion of the land in the polder that had been proposed
for afforestation was under private lease. The private commercial farms (the
lessees) had a concession agreement with the Agency for State Domains (the
lessor) which stipulated that the lessees would allow implementation of the CGAP
on these lands, including afforestation of degraded agricultural lands. However,
the enforcement instruments were missing / weak, and, while other elements of
the CGAP were implemented in the polder, afforestation was achieved in a much
smaller proportion. Towards the end of the project, some parts of the land were
transferred by the farms to the National Forestry Amendment (NFA), and thus
NFA was able to afforest those areas. Funds allocated to the polder were directed
to the afforestation of degraded areas on the terrace instead (1c.)
· The envisaged rehabilitation of the Calarasi-Raul polder was not achieved
because the feasibility study indicated much higher costs than those estimated at
appraisal, insufficient social consensus regarding the land use changes that the
restoration would necessitate, and necessary amendments to the technical solution
envisaged at appraisal which would have led to high maintenance costs. However,
the project-funded feasibility study helped the local government in applying for a
follow-up EU grant for implementing similar activities on the polder (1c.)
5
· Support to the envisaged National Agency for Ecological Agriculture was not
materialized, since the proposed agency was never set up, and the small
department which initially existed in MARD was also abolished (2c.)
The dropped activities listed above did not require formal WB Board approval since they
were not substantial in terms of project costs or the achievement of project objectives.
1.7 Other significant changes
No other significant changes occurred.
2. Key Factors Affecting Implementation and Outcomes
2.1 Project Preparation, Design and Quality at Entry
Key factors during the preparation stage that affected implementation and outcome are
summarized below.
The background analysis was sound. The rationale for the physical interventions of the
project was provided by the Black Sea Danube Transboundary Diagnostic Analysis
carried out in the late 1990s by an international group of scientists and concluded that
agricultural pollution caused at least 50% of the nutrients discharged into the Danube and
reached the Black Sea. This analysis was supplemented by an analysis of social
acceptability as discussed under lessons learnt below.
Lessons Learnt Incorporated in Project Design
Although the project was a first in Romania to pilot APC practices, it benefited from the
incorporation of lessons learnt from earlier operations, both in Romania (notably the
Romania Danube Delta Biodiversity Project) and in the region (notably the Poland Rural
Environmental Protection Project):
i. Lesson: The early involvement of key stakeholders in project preparation, specifically
including local communities and influential decision makers, is essential in order to
ensure ownership and successful project implementation.
Agricultural Pollution Control Project (APCP) response: Project developers focused
on identifying local stakeholder priorities as first step in project design. Key local
stakeholders were comunas and the DGA of Calarasi. Mayors and local councils
representing comunas pointed to communal level organic waste platforms as well as
support to households for waste segregation as a first priority. These measures would
help them solve the widespread problem of illegal haphazard dumping of mixed
waste for which the comunas had been fined by the EPI. A survey among inhabitants
of the comunas found that people had no alternative but to dump their waste on
unauthorized sites and requested proper facilities. The project's main intervention
thus focused on facilities for storage and segregation of organic household waste
including manure. These interventions also responded to the EPI's main concern on
leakage of nutrients and other pollutants from unauthorized dumps. Its request to
improve monitoring of such leakage and impact on ambient water quality was met
through project support for local capacity development for water and soil quality
monitoring. DGA of Calarasi viewed CGAP and associated training funded by the
6
project as an instrument to improving its demonstration and extension services to
farmers. As an indication of its commitment to the project it provided free office
space to the PMU from its earliest stages.
ii. Lesson. Environment friendly agricultural activities should yield tangible benefits for
key stakeholders, specifically local communities, in order to ensure adoption.
APCP response. The environment friendly agricultural activities selected for project
support were known to yield tangible benefits to the local communities, as reflected
in the PAD: (i) additional income from effective use of organic waste (manure as
fertilizer), crop rotations, organic produce, and improved livestock grazing practices;
(ii) improved production efficiency through low input use and better farm
management; (iii) improvements in health and sanitation following improvements in
the drinking water and general hygiene of the villages; and (iv) through terrestrial and
aquatic habitat enhancement, increased populations of birds and fish species of local
economic and social importance.
iii. Lesson. An effective monitoring and evaluation mechanism needs to be developed
and applied to gauge project impact and feed lessons into project design
APCP response. An effective monitoring and evaluation mechanism was put in place
at the beginning of the project. M&E was used to measure the projects impact, adjust
project operations, and amend the mode and content of project activities as needed.
iv. Lesson. Decentralized responsibility for financial and project management (e.g. in the
Romania Danube Delta Biodiversity Project) build local ownership and sustainability
of project activities; counterpart training and specialized support for project related
activities such as procurement, disbursement, financial management (FM) are a must.
APCP response. Decentralized responsibility for financial and project management
was achieved by locating the PMU in Calarasi County, housed in the DGA. Provision
of training to PMU in procurement and FM was incorporated in the project budget.
Local leaders were involved in project design from the early stages of identification.
v. Lesson. Dissemination of information about the benefits of improved environmental
management is critical to the widespread adoption of new technologies and practices.
APCP response. A public awareness campaign was made one of the focal activities of
the project and is considered by all stakeholders contacted by the ICR mission as a
major factor in the project's success.
The rationale for the Bank's involvement was sound. The Bank's distinct comparative
advantage in investment operations allowed it to carry out on the ground investments
which were needed to reduce nutrient pollution from agriculture. The Bank had already
supported and gained experience from the Poland Rural Environmental Protection Project
which was similar to the APCP. The Bank was also leading the GEF co-funded
Investment Fund for Nutrient Reduction in the Black Sea Danube Basin which put it in a
good position to transfer experience among 13 basin countries. Furthermore, the Bank
had been supporting a number of agriculture and biodiversity protection projects which
provided the Bank with a significant understanding of these sectors. The assessment that
the Bank-funded Agricultural Support Services Project (ASSP) would allow for synergies
in the demonstration of environment friendly agricultural practices proved correct.
7
The project was designed well. A key element of the project design was its geographical
focus. Implementation arrangements were also non-complex, with one government
agency, the MESD being in charge of the entire project. The alternative of dividing
project components among MESD and the MARD would most likely have led to delays,
as has been the case in other multi-agency projects. With respect to the thematic focus of
the project one might question whether sub-components 1b and 1c made the project
unduly complicated and whether the project should have not concentrated on manure
management only. As discussed in the PAD, this option was considered but dropped by
the designers with the justification that agricultural nutrient pollution reduction requires
more than just manure management. This justification is acceptable in the light of the
broad scope of environment-friendly agriculture and the need of Romanian farmers and
agricultural extension services to be trained in them so as to implement the EU ND. The
timely implementation of these components and of the entire project indicates that the
design was not overly complicated.
One shortcoming in the design relates to the sub-component 1c where the importance of
land ownership issues was either neglected, as in the case of the planned afforestation of
1,090 ha on the Boianu-Sticleanu Polder or underestimated, as in the case of the
rehabilitation of the Calarasi-Raul Polder. With regard to the Boianu-Sticleanu Polder, a
more realistic assessment of NFA's capacity to enforce afforestation on leased land
would have indicated an overly ambitious afforestation target in the polder. The land
ownership issue in the Calarasi-Raul Polder was raised in the PAD as a modest risk and
mitigation measures were identified as "The land has been leased for long term. GoR is
requiring the lessee to follow good agricultural practices in the area as required by
APCP". A more thorough investigation of the contractual relationship, GoR's ability to
impose GAP activities in the absence of an enabling regulatory framework, and social
issues around this would have likely led to a more realistic risk assessment and the
exclusion of this activity from the project.
Government commitment was highly satisfactory. The high level of local
governmental involvement in the project design is discussed under Lesson (i) above.
Among central governmental stakeholders, the commitment of MESD and the MARD
was important for the project's success. The project concept was discussed extensively in
round table meetings and the project designers made an effort to reach compromises
among stakeholder interests so as to ensure ownership from all key stakeholders. Key
among these central agencies was the National Water Authority under MESD which was
responsible for implementing the EU ND in a relatively short period of time and regarded
the project as a key activity in this regard.
Assessment of risks. Key risks to project implementation identified at Appraisal are listed
in the PAD. The risk ratings proved to be mostly adequate. The "substantial risk" rating
for "beneficiary cannot develop new manure handling and storage systems that are
financially attractive" was correct. Social surveys carried out during the project indicated
that most households would not be able to afford individual bunkers on their own and
government grants were necessary for their uptake. In case of commune level storage
facilities, a combination of donor, comuna and county funding made their construction
possible which was also highlighted as a risk mitigation measure. On the other hand,
experience in project implementation showed that the risk associated with
8
"landownership issues for polder restoration" in the case of the Calarasi-Raul Polder was
underestimated and risk mitigation measure identified proved ineffective. Furthermore,
the risk of the status of land on the Boianu-Sticleau Polder designated for afforestation
was not taken into account in the risk assessment carried out at appraisal.
2.2 Implementation
Project implementation was highly successful. There was no project restructuring and
the project was at no time at risk. Furthermore the project was the only project in
Romania in recent years which was completed in the originally foreseen time without any
requests for extension. Implementation performance was satisfactory throughout the
project period and in fact became highly satisfactory in the final year, as documented in
the ISRs. Key factors leading to highly successful implementation were:
· Constant Government commitment, especially at the local level;
· Highly effective PMU with good skill composition (managerial, public relations,
technical, fiduciary);
· Flexible management.
The first two factors are discussed in detail in other parts of this report. Flexibility on the
part of both the Government and of the WB supervision team was key to successful
implementation as it allowed the revisions to project components discussed above in a
relatively smooth manner.
2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization
An M&E Plan was designed during project preparation and included in the Project
Implementation Plan (PIP). A full-time member of the PMU titled "M&E and Technical
Specialist" was in charge of M&E activities during the entire project implementation.
M&E design. The M&E plan was comprehensive and, despite some shortcomings,
allowed for adequate measurement of outputs and outcomes.
M&E implementation was adequate. Appropriate data were collected most of the time for
the majority of the indicators. The indicators which depended on social surveys were not
measured during the first two years of project implementation as such surveys were not
carried out. These surveys could not be carried out because time was needed to build and
start the operation of the first manure facilities and to install the demonstration fields for
the environment friendly agricultural practices. In the case of complex indicators the
PMU made an extra and honest effort to use available data in a meaningful manner.
M&E utilization. The PMU assessed appropriate data and formally reported them in
biannual project progress reports. These reports were shared with the MESD and World
Bank supervision missions. The M&E results enabled implementers to gain detailed
insight in outputs from individual project activities and address implementation problems.
2.4 Safeguard and Fiduciary Compliance
Financial management
9
Throughout the project life a highly satisfactory financial management system was
maintained. The Recipient respected the relevant GEF grant financial covenants by
submitting to the Bank quarterly financial monitoring reports and annual audit reports in
a timely manner and in a format acceptable to the Bank. Audit opinions were all
unqualified and no internal control issues were mentioned, including in the final audit of
the project, submitted in August 2007. Counterpart financing, including funding received
from Central Government, Calarasi County Council and budgets of the seven
participating comunas was highly satisfactory during the project life.
The financial management capacity built throughout the project life in the PMU within
the MESD has been transferred and scaled up to the Integrated Nutrient Pollution Control
Project, which is financed through an IBRD loan and a GEF grant. Thus, the APCP
financial management systems, procedures and certain project staff will be used as part of
the new project's institutional arrangements.
Procurement
Procurement management was successful and cooperation between the Borrower and the
Bank was very good. Throughout the project the PMU had sufficient level of delegation
by the implementing agency, which allowed smooth implementation of the project
(despite some staff turnover). As the project had numerous procurements subject to post-
review supervision missions regularly included procurement staff to conduct post review.
However no major deviations from the Bank's Guidelines were found.
Disbursement
Disbursement of project funds followed the projections made at the beginning of project
implementation and no significant delays were experienced. There were no deviations or
waivers from Bank disbursement policies and procedures.
Environmental assessment
During preparation, the project was categorized as a "category B project" requiring
partial environmental assessment. An environmental assessment plan and an
environmental management plan (EMP) were prepared. The latter identified mitigation
measures (design to be prepared under the supervision of the county council engineering
staff and the EPI) and monitoring measures (regular water quality testing around the
storage facilities).
Compliance with the above mitigation and monitoring measures was satisfactory
throughout the project. A consultant environmental specialist hired by the Bank in late
2004 found that the EMP was implemented adequately. Specifically the consultant
confirmed that: (i) the design of the large and individual manure storage facilities was
prepared under the supervision of the Calarasi County Council engineering staff; (ii) the
EPI ensured that the construction of the manure storage facilities met environmental
guidelines on stopping manure leakage to surface or ground water sources and an
environmental permit was issued for each comuna platform); (iii) facilities were not built
close to any surface water body; (iv) an extensive soil and water monitoring program to
ensure that leakage of manure to groundwater does not occur was implemented; (v) the
10
institutional capacity of the Calarasi Water Management Service was strengthened by the
project; and (vi) a public awareness campaign was undertaken to create awareness and
promote adoption of environment-friendly manure management practices.
None of the Bank's other safeguards policies applied to this project. Furthermore, no
social risks due to the project arose during implementation.
2.5 Post-completion Operation/Next Phase
Transition arrangements. Project investments were carried out in close cooperation with
local beneficiary institutions which began using assets procured by the project from the
date of acquisition during the implementation period. Hence special transition
arrangements were not necessary. Various aspects of sustainability of their operation are
discussed in detail under Section 4 "Assessment of Risk to Development Outcome".
The key performance indicator by which the project (outcomes) can be monitored and
evaluated in the future is "the trend of nitrate pollution of water bodies in the project
area". Collection of these data is an integral part of the Calarasi Management Service's
monitoring program since the county is a "Nitrate Vulnerable Zone" (NVZ.) The
institutional capacity and funding to carry out this monitoring are adequate, as discussed
in Section 4. While a centrally maintained M&E system to monitor all project
investments will not be available in the post-project period, beneficiary organizations are
expected to continue monitoring and evaluating key project outputs. This is particularly
the case of comuna administrations that will monitor use and maintenance of household
bunkers of and comuna platforms for the purpose of planning their waste management
activities. Furthermore, the local Environmental Protection Agency (EPA) will continue
to monitor and enforce measures against activities that will cause nutrient pollution of
water bodies in the project region, and the county soil laboratory will continue to monitor
and report on soils.
A follow-up operation has been designed to replicate the APCP in other parts of
Romania. On October 30, 2007 the World Bank Board of Directors approved the
"Integrated Nutrient Pollution Control Project" (INPCP) which will cost US$ 81.20
million (of which US$ 68 million is financed by the IBRD) and builds on the positive
experience from the APCP.
INPCP's overall development objective is to support the Government of Romania to meet
the EU ND requirements by (a) reducing nutrient discharges to water bodies, (b)
promoting behavioral change at the communal level, and (c) strengthening institutional
and regulatory capacity. The GEO is to reduce over the long term the discharge of
nutrients into water bodies leading to the Danube River and Black Sea through integrated
land and water management. The project will support four components: (i) a menu of
investments focusing on NVZ-designated comunas in ten river basins and eleven
counties; (ii) capacity building within the MESD and their National Water Authority, as
well as other national regional and county agencies involved in the ND; (iii) broad public
awareness and information campaign focused on investment replication and behavior
change; and (iv) PMU. The INPCP will use the Calarasi County as a training area for the
eleven new beneficiary counties while adopting the specific project activities to their
specific socio-economic, geo-morphological and cultural characteristics.
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3. Assessment of Outcomes
3.1 Relevance of Objectives, Design and Implementation
The relevance of the project's objectives, design and implementation are highly relevant
to Romania's current development priorities, as Romania, a new EU member, tries to
implement the environment chapter of the acquis communautaire. The Country
Partnership Strategy of 2006 emphasizes the high cost (about Euro 30 billion during
2004-2015) and institutional capacity requirements of this endeavor.
The EU ND is among the costliest and most labor intensive parts of the EU environment
related legislation due to the structure of the Romanian agriculture sector. The country's
251 NVZs are dominated by small family farms with an average of 2.2ha of arable land
and small holdings of livestock (typically one or two cows, pig, chickens and sheep). The
vast majority of these farms do not follow proper practices for manure collection,
handling and storage. Nutrient leachate contaminates groundwater which still constitutes
the main source of drinking water in rural areas accessed through wells. High
concentrations of nitrates continue to lead to public health threats, as indicated by
incidences of acute methaemoglobinaemia, commonly known as the "blue baby
syndrome". Significant EU grants will be available for farmers under the Common
Agricultural Policy (CAP) Pillar 2 to help them make necessary on-farm capital
investments. However, knowledge on good practices is very limited among small and
medium farmers. Hence, there is a need for substantial demonstration of best practices,
farmer training, and awareness raising. Best practices piloted under the APCP in Calarasi
offer a tested model to be replicated in all NVZs of Romania, through the INPCP. The
project's objective also remains a global environment priority. Reducing nutrient
pollution in the Black Sea continues to be a priority in the region. The GEF WB UNDP
Strategic Partnership for Nutrient Reduction funds projects aiming at reducing
agricultural nutrient pollution in Moldova, Serbia, Turkey, and Croatia in addition to
Romania. Furthermore, pollution reduction is among the key aims under the EU Water
Framework Directive. To fulfill the requirements of this directive, the 13 riparian
countries of the Danube River basin are cooperating to develop a river basin management
and action plan by 2009-2010. Data and experience gained under the APCP are helping
Romania fulfill its obligations to contribute to the plan's development.
3.2 Achievement of Global Environmental Objectives
The project's outputs provide strong indication that the project's global environment
objective "to reduce over the long-term the discharge of nutrients and other agricultural
pollutants into the Danube River and Black Sea through integrated land and water
management of the Calarasi region and ecologically sustainable use of natural resources
in two agricultural polders" has been achieved. This can be illustrated through the values
achieved for the four key performance indicators identified in the PAD:
Indicator 1. Percentage of households with livestock in project area adopting improved
manure handling facilities. As the results of a social survey carried out in early 2007
indicated, the percentage of households with livestock in the project area using village
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manure storage, household bunkers and segregating waste materials reached 54.4%
compared to the baseline of 0%, and end-of-project target value of 45%.3
Indicator 2. Percentage cropped area coming under nutrient management systems
including crop rotation, crop nutrient management with soil testing, and use of organic
manure. The same survey found that the percentage of area under nutrient management
systems including crop rotation, crop nutrient management with soil testing, and use of
organic manures is 34%, compared to the baseline of 1%, and the end-of-project target
value of 30%.
Indicator 3. Percentage of cropped area employing environment-friendly practices. Over
the course of the project the area under environmentally friendly practices increased from
0% to 33.9% exceeding the target value of 30%.4
Indicator 4. Trends in water quality indicators at designated sites. The water monitoring
program found a decreasing trend in N and P in the water bodies of the project region that
drain into the Danube River. In other words the trend in water quality was found to be
positive. Estimations based on land under environment friendly agricultural practices
indicated a decrease in nutrient discharge into surface and ground waters of about 15 %
for N and 27% for P in 2006. These values exceed the target value of 10% for 2006.
The results captured by indicators no. 1-3 point to rural Calarasi communities' increased
ability to keep in check expected nutrient releases following from a likely intensification
of agriculture as a result of Romania's participation in the EU CAP. In addition to the
above indicators, the project's success in achieving implementation and enforcement
capacity and skills to develop project proposals for EU funding, especially at the local
levels, in raising public awareness in rural areas of proper practices to reduce
environmental pollution, and strengthening the communication between communities and
their mayoralties should be highlighted.
3.3 Efficiency
The PAD in line with GEF requirements included an incremental costs analysis (ICA) of
the project which predicted that the project would introduce and demonstrate more
sustainable and environmentally benign technologies and practices at an estimated
incremental cost of US$ 5.15 million over the baseline scenario. The project achieved
this objective at the estimated incremental costs.
To further evaluate the efficiency of the project, cost effectiveness (CE) ratios, defined as
the cost of reducing one kg of N or P leakage into surface and ground waters were
calculated for individual environment-friendly practices.
3 Annex 1 of the PAD indicates a target value of 65%, but does not specify by what year this is to be
achieved. The M&E framework included in the PIP indicates that 65% was foreseen for 2010 whereas 45%
was foreseen for 2006.
4 The M&E framework included in the PIP indicates that 65% was foreseen for 2010 whereas 30% was
foreseen for 2006.
13
The estimated CE ratios vary between US$10/kg and US$40/kg depending on the
practice considered. At US$10/kg nutrient management was found to be the most cost
effective practice, followed by strip crops and cover crops (US$12-15/kg.)5 At US$30-
40/kg manure management was the costliest practice, which is explained by the high
initial capital cost.
These CE ratios may be compared with those achieved in other parts of the world. In
Poland, the CE ratios achieved by the Bank funded Rural Environmental Protection
Project in four regions ranged between US$18.5 / kg N and US$24.8 / kg N. These CE
ratios are lower than the above estimates for the Romania APCP since they were
calculated in present value terms with a discount rate of 10% and expressed in 2000
Dollars while the CE ratios in Romania are in current value terms. In the Chesapeake
Basin of the United States the median CE ratio for animal waste systems was estimated at
US$39 / kg N removed for animal waste systems and at US$19.5/kg N removed for the
combination of nutrient management and animal waste systems. (Both values are in 2003
terms.) It may be concluded that the CE ratios achieved in Romania are broadly in line
with international experience.
3.4 Justification of Overall Outcome Rating
Rating: Satisfactory.
The overall outcome rating is based on a combination of the achievement of objectives,
relevance and efficiency. The GEO was fully achieved as evidenced by measurements on
four key performance indicators. The project remains highly relevant, as evidenced by the
large follow-on loan project which will build on the model it piloted. The cost
effectiveness ratios with which these results were achieved are comparable with those
realized in other parts of the world.
This rating also reflects the project's success in bringing about behavioral change in the
target population for better environmental management in rural areas. The project
demonstrated effective work with communities to this end. As such the project proved a
successful pilot not only for Romania, where it is now replicated through an IBRD
funded project across the country, but also in other countries of the Black Sea Basin.
3.5 Overarching Themes, Other Outcomes and Impacts
(a) Poverty Impacts, Gender Aspects, and Social Development
Social surveys have indicated that a key "unplanned" outcome of the project was
improvement in relations between mayoralties and comuna members. This was a result of
tools provided to citizens to communicate their needs and expectations to their
administrators provided by the project.
(b) Institutional Change/Strengthening
Studies carried out under the project also found increased local capacity to access and
manage community development projects due to their experience with the APCP.
5 Estimates conducted by the PMU.
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3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops
In the spring of 2007, a survey and in-depth interviews were carried out among
stakeholders in the project region. The study aimed at assessing the project's impact on
the target population and evaluated the level of use of environment friendly agricultural
practices and of nutrient management plans, at the levels of both agricultural associations
and individual households. The following are the key findings of the study:
· The number of associations using composted manure from comuna platforms and
implementing environment-friendly agricultural practices increased from 2005 to
2006.
· Among households that work the land themselves, the most frequently used
environment friendly practices were crop rotation and seed selection, however at a
much lower rate than associations. Land size emerged as a key determinant.
· In 2006, households used crop rotation and expert-guided chemical fertilizer
application more frequently than in 2005.
· Most of the problems encountered earlier with regard to garbage and manure
management were solved thanks to the efforts of the APCP and of the local
administration. Also water pollution was reduced as was the incidence of nitrite
poisoning.
· Improper utilization of individual platforms and euro-bins was lower in 2007 than
in 2005 and 2006.
· The project was relatively well known in the project region among households and
other local stakeholders, being primarily associated with garbage management.
· The project effects were perceived generally as positive.
· The project seemed to have positive consequences also at institutional level,
mayoralties being the main beneficiary. Improvement in relations between
mayoralties and comuna citizens and in local capacity to access and manage
community development projects were cited by persons interviewed.
4. Assessment of Risk to Development Outcome
Rating: Moderate
A sub-component-by- sub-component analysis is provided to substantiate this rating.
1a. Manure Management Practices
The sustainability of the operation of village and household level platforms is closely
linked to the sustainability of the commune level waste management system which
involves storage and segregation at the household level, transport to the village platforms,
spreading on private farmland and communal pastures. High level stakeholder support
will play an important role. Local communities appreciate the cleanliness of their
backyards and communal areas as indicated by the social survey of May 2007. One of the
mayors is using the comuna newspaper for social "blame and shame" to enforce proper
disposal of manure and other garbage in the designated storage facility rather than
15
dumping on unauthorized areas. Public awareness is expected to continue to grow
through the follow-on project, INPCP. The financial sustainability of the system will
hinge on a combination of user fees by households, cost sharing by buyers of composted
materials, comuna budget allocations to cover the operations and maintenance (O&M) of
the comuna facilities. In the two comunas visited by the ICR mission, fees covered
between 30-40% of O&M costs. Mayoralties intend to gradually increase the fees, while
recognizing limitations posed by households' ability to pay. Furthermore, one of the
comunas charges a large poultry farm unsubsidized fees for the transportation and
disposal of its manure on the communal platform. There are also encouraging signs of
contributions by buyers. In one comuna the farmers' association which spreads the
composted organic waste on its farmland paid for transportation and spreading costs.
While the further development of these and other user fee based financing modalities will
take time, commitment by mayoralties is strong providing reassurance for financial
sustainability in the short and medium terms.
In terms of physical sustainability, the design life of the village level platforms is 50
years. On the other hand the project life of household bunkers is low due to the quick
degradation potential of the wooden walls surrounding a concrete base. Wooden planks
degrade quickly when exposed to the highly acidic slurry at the bottom of the manure
heap. However, the cost of wooden planks is relatively low (Euro3-5 / plank), so it is not
expected to cause a hardship for households to replace them as they degrade every 3-8
years. Furthermore, concrete bases which have a life of about 20 years were designed to
be mobile which would allow their easy transfer to other locations should the household
decide to move or stop keeping livestock, a likely prospect in Romania's evolving
agricultural sector. This also speaks in favor of project sustainability.
On the policy side, the environmental cross-compliance requirement under the EU CAP
Pillar 1 area payment system is a strong incentive for agricultural households to continue
to properly manage their manure.
1b. Promotion of Environment-friendly Agricultural Practices
The social survey carried out in the spring of 2007 indicated a significant uptake of
several environment-friendly agricultural activities. Several factors point to strong
prospects for the sustainability of ongoing practices and increased adoption by farmers in
the area. The key policy factor is the designation of Calarasi as an NVZ, which makes the
implementation of CGAP compulsory in this county. Farmers also face a significant
incentive to adopt some of these practices, notably shelterbelts/windbreaks and riparian
buffers as these help prevent crop losses due to erosion which is highly prevalent in
Calarasi. Institutionally, the project helped build capacity among agricultural extension
agents, to adequately advise farmers interested in replicating these practices.
1c. Integrated management of the Boinau-Sticleanu Polder
The prospects for the sustainability of the afforestation program are positive because
farmers benefit significantly from the trees' erosion prevention benefits. With regard to
the Iezer Calarasi Lake Nature Reserve, commitment and technical capacity of the
custodian, a commercial fish farm (SC Piscicola) to effectively manage the reserve
according to the management plan, will be key factors for sustainability. The custodian
16
stands to benefit from the positive public relations effect of adequate implementation of
the management plan prepared under the project. It has allocated part of the time of one
of its staff to manage the Reserve. However, SC Piscicola also faces a dilemma in that
one of the bird species protected in the reserve feeds on young/small fish. Nevertheless,
the local EPA Office interviewed by the ICR mission indicated that the farm has so
abided by the terms of the custody contract and it has held a number of educational
events for young visitors. Furthermore, the custodian has obtained support under an EU
LIFE project for follow-up investments (such as additional basic visitor infrastructure
specified in the Management Plan) to facilitate more of such activities. On the other hand,
increased visitation will necessitate increased staffing for management which the
custodian will have to finance.
1d. Soil and Water Quality Monitoring
The financial sustainability of the operations of the water laboratory of the Calarasi
County Water Management Service and the soil laboratory of the Calarasi DGA appears
good. Both laboratories charge for their services at levels that cover O&M costs. The
nutrient analysis equipment procured under the project allows the laboratories to carry
out analyses for third party clients. Furthermore, demand for such services is ensured to
grow as the ND is implemented. The water laboratory also has other revenue sources,
notably from river quarry operations. In fact, its revenues exceed its O&M costs by 35%
which it transfers to a higher administrative level.
2. Strengthening National Policy and Regulatory Capacity
The project supported transposition of the EU ND into Romanian legislation and
preparation of a CGAP are expected to be sustainable now that Romania is an EU
member. Some 250 comunas have been designated as NVZ where CGAP implementation
is compulsory. Further institutional capacity building for implementation and
enforcement will be carried out under the INPCP.
3. Public Awareness
Public awareness raising activities will continue through the INPCP as well as through
local media which some mayoralties use to promote proper manure management.
5. Assessment of Bank and Borrower Performance
5.1 Bank
(a) Bank Performance in Ensuring Quality at Entry
Rating: Satisfactory
The Bank ensured high quality in several aspects of project identification, preparation,
and appraisal with only minor shortcomings in some aspects.
Strategic relevance and approach. The project identified was of high strategic relevance
for Romania in its efforts to harmonize with the EU environment acquis and the evolving
EU CAP, and for the Bank in its leadership of the GEF Investment Fund for Nutrient
17
Reduction in the Black Sea and Danube. A successful pilot project in Romania, the
largest country in the Danube Basin, would not only provide Romania but also provide
the entire Black Sea Danube Region with a model to replicate. The approach to tackle
nutrient leakage was well chosen. By emphasizing the domestic benefits of agricultural
pollution control and combining it with the counties' own waste management and erosion
control strategies, the project secured the full engagement of the local stakeholders
throughout project preparation and implementation.
Technical, financial and economic aspects. The technical approach to manure
management was relatively new and untested when it was designed for Romania. It
consisted of a system of small household platforms and large village platforms, the latter
being managed by the comuna administrations. Most EU member and candidate countries,
including Poland where the Bank was supporting a project, aimed a reducing nutrient
pollution focused on building larger on-farm manure storage facilities from where
farmers take manure to their plots themselves. In particular, the financial sustainability of
the system was questionable. However the system designed in Romania suited the
predominance of very small farms with dispersed plots. Furthermore, households were
mixing regular household (organic and non-organic) household waste with manure. The
project design addressed this problem by introducing segregation at source and separate
(though adjacent) platforms for different waste types at the village facility.
Policy and institutional aspects. Project support to policy harmonization with the EU ND
and to institutional capacity building for its implementation, was highly appropriate and
necessary for the attainment of the project objective.
Poverty, gender and social development aspects. The project's development objective
was not specifically related to poverty alleviation, gender issues or social development.
Nevertheless, reduction of nitrate pollution in communal wells and of the related
incidence of the "blue baby" disease stood to benefit especially the poorer sections of the
communities who did not have the means to purchase bottled water.
Environmental aspects. The low potential impact of project interventions on the
environment justifies the categorization of the project as a "category B project" for
environmental safeguards purposes. An environmental assessment was carried out. A
summary provided in Annex 11 of the PAD indicates that nutrient leakage from village
level platforms was identified as the key potential impact. The associated management
plan identified mitigation measures (design to be prepared under the supervision of the
county council engineering staff and the EPI) and monitoring measures (regular water
quality testing around the storage facility). It is common practice for environmental
assessments of construction activities to also consider the potential adverse effects and
mitigation measures during the construction phase itself, but this was likely omitted due
to the remote location of the selected locations for the village platforms.
Fiduciary aspects. The fiduciary aspects related to procurement were adequately
considered and reflected in implementation arrangements made. Risks related to
procurement were considered to be high; however project implementation experience
demonstrated that mitigation measures were adequate for the risk level. Financial
management aspects were also designed well leading to highly satisfactory FM
implementation performance.
18
Implementation arrangements. Project implementation arrangements were well
conceived. In particular, agreement with the Government that one agency would be in
charge of overall project management (as opposed to dividing responsibility among two
or more agencies) was highly appropriate. Furthermore, the selection of an agency, the
MESD, which was committed to implementing the EU ND, was appropriate. On the other
hand, it should also be noted the Bank team adequately recognized local and national
agencies' points of interests in the project and worked with them to ensure that project
was reasonably responsive to all. This ensured that diverse agencies collaborated
smoothly during project implementation while leadership was provided by one. Finally,
the location of the PMU in Calarasi in the premises of the DGA was most appropriate, as
was the arrangement that the PMU Manager would report to the County Council and to
the Prefect, in addition to MESD, in ensuring local institutional ownership of the project.
Monitoring and evaluation arrangements. Adequate M&E implementation arrangements
were made already during project preparation, as documented in the PAD. The PMU staff
member in charge of M&E implementation attended a specialized M&E workshop which
strengthened PMU's capacity to measure and report project indicators.
Risk assessment. As discussed under "2.1 Project Preparation, Design and Quality at
Entry", the appraisal team assessed the risks facing the project generally well. In
particular, the financial risk associated with the manure management scheme was
correctly assessed as "substantial". However the risk assessment had the shortcoming that
it (i) did not flag the private lease status of Boianu-Sticleanu land designated for
afforestation as a risk and (ii) underestimated the risk associated with the landownership
issues associated with the restoration of the Calarasi-Raul Polder.
(b) Quality of Supervision
Rating: Highly Satisfactory
Focus on development impact. Project supervision remained highly focused on achieving
the project objective which in the words of a Calarasi administrator "lifted Romanian
agriculture to a higher level" by making it environment friendly.
Supervision of fiduciary and safeguards aspects. Fiduciary supervision was carried out
with efficiency and professionalism. Both the procurement and the financial management
specialist assigned to the project were based in Bucharest, which allowed them to interact
with the PMU directly and frequently. Supervision of compliance with environmental
safeguards was satisfactory. The Bank team verified that village platforms were inspected
by county engineering and environmental officials and water quality measurements were
taken. The Bank hired a consultant environmental specialist in late 2004 to review
compliance at all 13 village platforms completed up to that point. The results of the
review were documented in the aide memoire for the mid-term review in early 2005. One
notes that the ISRs pertaining to the later part of project implementation indicate a
"satisfactory" rating for environmental safeguards compliance although the aide
memoires no longer document verification of mitigation and monitoring measures. This
may be explained by the fact that the measures had become a routine part project
implementation. Nevertheless, for the sake of completeness, such documentation would
have been appropriate at least in the final supervision aide-memoire.
19
Candor and quality of performance reporting. Reporting on project progress was candid.
The ISRs highlighted key issues in a to-the-point manner. While always diplomatic and
constructive, the aide memoires and letters to the Government did not shy away from
pointing out challenges in project implementation when they occurred. Risk ratings were
adjusted in a timely manner. A good example is the increase in the risk rating of "land
ownership" from moderate to high when this issue emerged as a serious obstacle to the
activities in the polder area already seven months after project effectiveness.
Implementation performance and global environment objective ratings were also adjusted
in a timely manner to reflect changes in performance.
Role in ensuring adequate transition arrangements (for regular operation of supported
activities after loan/credit closing.) Transition arrangements were not necessary since all
project investments were implemented by local authorities from the day of their inception.
(c) Justification of Rating for Overall Bank Performance
Rating: Satisfactory
The Bank teams worked with their Romanian counterparts in a highly collegiate manner
during project preparation and implementation. The latter greatly appreciated the respect
shown to local and national authorities' insights and the flexibility with which requests
for amendments in implementation were treated. The team mobilized international
technical support when needed/requested and helped the Romanian implementers share
their experiences with countries in the region.
5.2 Borrower
(a) Government Performance
Rating: Highly Satisfactory
Government ownership and commitment to achieving development objectives was high.
In particular, county and comuna level governments contributed significantly to project
preparation and implementation. During project preparation, county and community
governments clearly identified manure management as a priority for the project and
committed resources for co-financing. The Central Government also embraced the
project objective and allocated co-financing during project preparation. During project
implementation, central, county and community governments facilitated, co-financed and
participated in project activities. There was full ownership by Government agencies at all
levels. Vertical and horizontal coordination was effective and characterized by
professionalism and result orientation. County and comuna governments provided co-
financing for investments in and operations of communal waste management facilities
and afforestation. The DGA of Calarasi supported the project financially by providing
office space to the PMU.
Most implementation issues were resolved in a timely manner. A notable exception was
the issue of afforestation on the Boianu-Sticleanu polder which emerged soon after
project effectiveness. It took the agencies involved nearly two years to definitively
resolve it in a satisfactory manner.
20
Fiduciary (financial management, governance, provision of counterpart funding,
procurement, reimbursements, compliance with covenants.) The Government's
performance in fiduciary issues was highly satisfactory. Notably, provision of counterpart
funding by both local and national governments was timely and adequate. There were no
issues with governance or compliance with covenants.
(b) Implementing Agency or Agencies Performance
Rating: Highly satisfactory
Agency commitment to achieving development objectives. The MESD was committed to
reducing the nutrient pollution impact from Romanian agriculture in line with the
requirements of the EU ND.
Adequacy of beneficiary / stakeholder consultations and involvement. During project
preparation the implementing agency worked closely with county and comuna level
stakeholders, including the prefect, the comuna mayors, the County and comuna councils,
as well as national and county level branches of MARD, MESD, and EPI in order to
identify their priorities. During implementation, county and comuna level agencies were
main agents of implementation, and the PMU was based in the project area. Household
surveys (one during preparation, one in 2005 and a final one in 2007) gauged the
awareness of and satisfaction with the project on the part of the local population.
Readiness for implementation, implementation arrangements and capacity, and
appointment of key staff. The PMU was fully staffed before project effectiveness and the
structure of personnel and the specialists initially hired remained unchanged during
project implementation, except for the Procurement Specialist. The PMU had an
excellent mix of technical and managerial skills. The constant involvement in the project
of the National Water Authority from the earliest stages of project identification until the
end of implementation was also instrumental. The arrangement that project oversight
responsibility was with the Under-secretary of State rather than with the Minister helped
minimize disruptions associated with governmental transitions.
Timely resolution of implementation issues. The Implementing Agency / PMU resolved
most implementation issues within their realm of responsibility in a timely manner.
Fiduciary (financial management, governance, provision of counterpart funding,
procurement, reimbursements, compliance with covenants.) Fiduciary management by
the implementing agency was highly satisfactory. The PMU cooperated closely with the
World Bank team.
Adequacy of M&E arrangements, including the utilization of M&E data in decision-
making and resource allocation. M&E arrangements were adequate. Key indicators in
the M&E framework, such as level of participation in manure management and other
environment friendly agricultural practices, were used to gauge the level of achievement
of project goals and resource allocation.
Relationships and coordination with donors/partners/stakeholders. The MESD nurtured
good cooperation with the USAID which provided grant financing for a village platform
in Calarasi County and co-financed capacity building in the Calarasi County for water
and soil monitoring and for strengthening national policy and regulatory capacity for
nutrient management at MESD and MARD. The PMU was instrumental in keeping
21
relevant agencies involved and informed in the project. It also nurtured exemplary
relations with beneficiary communities and their leaders.
(c) Justification of Rating for Overall Borrower Performance
Rating: Highly Satisfactory
The performance of both the Government in general and of the implementing agency in
particular was exemplary justifying the overall "highly satisfactory" rating.
6. Lessons Learned
The experience of APCP highlighted the importance of the following factors for smooth
and timely project implementation:
· Ownership of local communities and their leaders through delivery of visible and
tangible benefits. The afforestation program which helped farmers against erosion and
the manure platforms which achieved health benefits and cleaner environment are most
notable in this respect.
· A strong, full-time PMU with a good mix of diplomatic, managerial and technical
skills based in the project area. Cultivation of good relations with ALL project
stakeholders. The PMU Manager excelled in relations with stakeholders at all levels
and gained their trust and respect. Technical staff of the PMU ensured smooth
implementation of day-to-day project implementation, procurement, financial
management, and M&E.
· Central Government responsiveness to local communities' expressed needs and
preferences. The Central Government respected Country Council and comuna
preferences in the design of project activities, notably the emphasis on manure storage
as part of communal waste management and afforestation, and in amending some of
the project activities, as discussed in earlier sections. This was a key factor ensuring the
local ownership that the project enjoyed and led it to success.
· Flexibility and respect for client insights of Bank task team. The Bank Supervision
team's attitude to supervision was not prescriptive. It offered technical support and
opinion based on international experience but let the PMU which effectively
represented local interests resolve implementation issues. As a result, project
implementers were empowered to be creative and reach compromises as issues
emerged.
· Dissemination of information through a broad public awareness campaign. This is
critical to the widespread adoption of new technologies and practices. Furthermore,
information dissemination is needed early in the project cycle to overcome the
considerable lack of understanding of the health and environmental benefits from
improved waste management, and achieve significant participation in project activities.
7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners
22
(a) Borrower/implementing agencies
The summary of the Borrower's ICR was received on November 8, 2007 and is
reproduced in Annex 7. While not explicitly rating the project's outcomes, the summary
describes the project's outputs and outcomes in a highly positive tone. It emphasizes the
behavioral changes that the project has brought about, the project's demonstration value
and the important role that public awareness raising played in this. The ICR Team agrees
with these observations.
A copy of the draft ICR was shared with MESD on December 13, 2007 for comments.
The response received from MESD on December 20, 2007 indicated that the Ministry
had no comments on the draft. This letter is reproduced in Annex 7. In verbal
communication with the PMU it was confirmed that there were no issues of disagreement.
(b) Cofinanciers
In the early project implementation phase, USAID contributed US$ 150,000 to the
project with which a comuna platform was built. The ICR team attempted to contact the
USAID Office in Bucharest in the first half of December 2007 for comments on the draft
ICR. However, due to the phasing out of the USAID Office in Bucharest in progress and
the Holiday Season, contact could be established with the officer in charge of cooperation
with the APCP only on December 28, 2007. The team expects to receive comments on
the ICR in early January and will file them in IRIS.
23
Annex 1. Project Costs and Financing
(a) Project Cost by Component
Appraisal
Actual
Percentage of
Components
Estimate
(US$ millions)
Appraisal
(US$ millions)
Calarasi Component
8.41 9.23** 110%
Strengthening national policy and
0.24 0.15 63%
regulatory capacity
Public awareness and national
0.38 0.42 111%
and regional replication strategy
Project Management Unit
0.78 1.08 138%
Total Baseline Cost
9.81
10.88
111%
Physical Contingencies
0.36
Price Contingencies
0.63
Total Project Costs
10.80 10.88 101%
Project Preparation Facility (PPF)
0.27
0.27
Front-end fee IBRD
0.00
0.00
Total Financing Required
11.07
11.15
101%
* GEF PDF-B project preparation grant
** This figure includes the following items:
(i) The cost of the community platform (under sub-component 1a) funded directly through a USAID
contribution of US$0.15million.
(ii) The cost of 11 sub-projects on environmentally-friendly agricultural practices US$ one million
which were funded by the associated IBRD Agricultural Support Services Project (under sub-
component 1b).
(iii) In kind (labor) contribution from comunas (sub-components 1a, b, c) estimated at US$1.8
million.
(b) Financing
Appraisal
Type of
Actual
Percentage of
Source of Funds
Estimate
Co-financing
(US$ millions) Appraisal
(US$ millions)
Borrower
4.65
4.52
97%
GLOBAL ENVIRONMENT -
1.00
1.06
106%
Associated IBRD Fund
Bilateral Donor (USAID)*
0.00
0.15
Global Environment Facility (GEF)
5.15
5.15
100%
Total
10.80
10.88
101%
24
Annex 2. Outputs by Component
Component 1 Activities in the Calarasi County
1a. Manure Management Practices.
This sub-component provided grants for the installation of improved manure storage
facilities and equipment for manure collection and application in seven comunas. Grants
on a cost-sharing basis where provided for the construction of village-level solid waste
and manure platforms and of small storage platforms with effluent collection facilities at
the household level. Beneficiary comunas also received equipment for manure handling
and spreading. Community training and awareness on good practices for waste collection
and manure management, including composting, testing, and field application, were also
provided. The investment program for the commune /village level manure management
consisted of construction of 18 platforms (17 financed by the project and one by USAID),
with a total storage capacity of 53,900 tons. At the household level the project financed a
total of 2,250 individual platforms. Also, farmers were provided with 5,710 waste bins in
order to help the farmers to segregate the waste. The individual bins, the individual
platforms, the 18 commune level platforms and the equipment are being used by the
beneficiaries.
1b. Promotion of Environment-friendly Agricultural Practices.
The Competitive Grant Scheme (CGS) was implemented from the start using a set of
criteria and indicators that were set out in the operational manual of the Agricultural
Support Services Project (ASSP). Two calls for proposals were made, first in June 2003
and the second in July 2003 and 21 concept notes were received by the ASSP Secretariat
from which three were financed out of the APCP funds, and 11 from ASSP funds, with a
total value of US$1,104,812. These grants covered a wide range of applied research and
extension technologies, such as improvement of cropping practices, diversification,
integrated development, organic farming and farm management & information systems.
These projects were well implemented and appreciated by farmers and a number of
technologies are being increasingly adopted in the region.
Within the program for testing and demonstration of the environment-friendly
agricultural practices, eight testing/demonstration areas were selected (2 in the polder
area and 6 on the terrace) according to the criteria agreed in the Project Implementation
Plan. The demonstrated practices included conservation tillage, shelterbelts/windbreaks,
narrow vegetative barriers, filter strips, riparian buffers, nutrient management, agro-
forestry, tree planting, grazing management, crop rotation and green fertilizers and land
reclamation at the former unauthorized manure dumping sites. To support these
demonstrations, the project provided the necessary planting materials and the specialized
equipment for demonstration. Fourteen training sessions and field visits were organized
with the participation of about 650 local farmers and specialists. A survey carried out in
the project region in the Spring of 2007 showed that the percentage of area under nutrient
management systems including crop rotation, crop nutrient management with soil testing,
25
and use of organic manures is 34%, compared to the baseline of 1%, and the end-of-
project target value of 30%.
As regards the rehabilitation of communes' pastures and improvement of the grazing
management, the project provided support for the rehabilitation of 240 ha of pastures in
the terrace area as well as in the Polder, including fixed and electric fences, mowers and
mobile shelters for the pasture administrators, as demonstration of good practices. The
final supervision mission found that these demonstration pasture fields and equipment
provided were being properly managed and used by the communities with the support of
the mayors.
1c. Integrated Management of the Boianu-Sticleanu Polder
Under the agro-forestry program a total of 1,570 hectares as opposed with the total of
1560 hectares planned was planted in the erosion prone locations in the terrace areas and
in the degraded areas in the polder. These were planted with acacia, poplar, willows and
honey locust. Comuna satisfaction with these plantations was high so that by the end of
the project farmers reported to plant wind breaks themselves.
The project supported the preparation of a Conservation Management Plan for the Iezer
Calarasi Lake Nature Reserve. Following the approval of this plan by the Government,
the project procured equipment needed by the local Environment Protection Agency
(EPA) in Calarasi and by the Reserve custodian SC Piscicola Calarasi for activities
related to the management of the nature reserve. The project also helped the custodian of
the protected area to demarcate the boundary, to develop an information center, and to
development a public awareness strategy. The Iezer Calarasi Lake nature reserve was
functional by the end of the project implementation period.
1d. Strengthening the Soil and Water Quality Monitoring Capacity
The project strengthened the capacity of the Calarasi Water Management Service (SGA)
and of the Soil Laboratory of Calarasi to monitor water and soil quality, respectively, as
well as the impact on nutrient reduction of specific project actions (manure management,
tree planting, application of the CGAP and others). Towards this, the project supported
the incremental costs of selecting and maintaining monitoring sites and of equipment
upgrading. Two national level courses were organized to train staff of the institutions
involved in soil and water quality monitoring, and with the implementation of the EU
Nitrates Directive.
Component II - Strengthening of the National Policy and Regulatory Capacity
The project supported the MESD and the MARD in two main areas: (i) the application of
the Nitrates Directive (cost assessment, methodology for diagnosis and action plan,
training, national meetings, coordination among several institutions involved); and (ii) the
development of the CGAP. Two additional Codes were developed based on requests
from the ministries, namely the Code of Good Agricultural Practices and Environment
Condition, and the Code of Best Farming Practices. The codes were approved through
ministerial orders, published and disseminated in 12,000 copies.
26
Component III - Public Awareness and Replication Strategy
A broad public information campaign of the project activities and benefits was
undertaken at the local, national and regional levels. The public awareness campaigns are
widely cited by local and national stakeholders as a critical factor in inducing the
behavioral changes necessary for the success of the project. This component organized a
regional level conference to disseminate the information, hosted visitors from the
neighboring countries, organized field trips and training for the institutions, mayors and
farmers from other regions in the country and promoted environmental-friendly
agricultural practices through publications, exhibitions, social activities, promotional
materials and working with children in schools.
The project provided considerable support to the Government of Romania in the newly
approved developing Integrated Nutrient Pollution Control Project based on the
experience gained. The project provided local information, and significant technical
assistance in developing this new project to replicate its experience throughout Romania
and to assist Romania in meeting its EU obligations regarding the Nitrates Directive. The
project also provided support in developing similar projects in other countries in the
region.
Component IV - Project Management
The Project Management Unit (PMU) was fully staffed before project effectiveness and
the structure of personnel and the specialists initially hired remained unchanged during
project implementation, except for the Procurement Specialist. The PMU provided
effective technical leadership and efficient project administration.
27
Annex 3. Economic and Financial Analysis
The PAD in line with GEF requirements included an incremental costs analysis (ICA) of
the project which predicted that the project would introduce and demonstrate more
sustainable and environmentally benign technologies and practices at an estimated
incremental cost of US$5.15 million over the baseline scenario. The project achieved this
objective at the estimated incremental costs.6
The ICA enumerated among benefits associated with the project estimated annual savings
of dissolved nutrients flowing into the Black Sea of 20kg/ha N and 2.5 kg/ha P. Ex-post
analysis indicates that while nutrient leakage reduction has been realized but at
significantly lower rate. The PIU calculated N and P leakage to groundwater in the
project areas (69,011 ha of arable land) in 2005 and 2006. The calculation was based on
increased spreading of manure on land and avoidance of excessive application of mineral
fertilizers according the Code of Good Agricultural Practices. The PIU found that in 2005
avoided leakage was 1.9 kg N / ha and 1.6 kg P / ha. In 2006 the corresponding figures
were estimated at 1.8 kg N / ha and 1.4 kg N / ha. A possible explanation for the large
discrepancy is that the figure quoted in the PAD may have been derived from
observations in other parts of Central and Eastern Europe in the early 1990s when drastic
increases in prices of mineral fertilizers led to substantial reductions in their use.
To further evaluate the efficiency of the project, cost effectiveness (CE) ratios, defined as
the cost of reducing one kg of N or P leakage into surface and ground waters were
calculated for individual environment-friendly practices.
The CE ratios were calculated by dividing the monetary cost of implementing a practice
by the total amount of leakage prevented through this practice in a particular area during
a one year period. Leakage was estimated based on the difference of quantity of manure
disposed on land improperly and conservative coefficients derived from international
observations on release of nutrients from manure to soil. Costs taken included capital
investment costs, maintenance and operation costs, and project management costs
apportioned to the activity. Financial costs of the interventions were considered to equal
economic costs due to insignificant market distortions. The estimation of annual leakages
prevented due to the practice in question was based on the actual data reported by the
project beneficiaries and provided to the PMU by the Department of Agriculture Calarasi.
The estimated CE ratios vary between US$10/kg and US$40/kg depending on the
practice considered. At US$10/kg nutrient management was found to be the most cost
effective practice, followed by strip crops and cover crops (US$12-15/kg.)7 At US$30-
40/kg manure management was the costliest practice, which is explained by the high
initial capital cost.
6 Under more current GEF ICA practices, not only the GEF funded but also Government, beneficiary and
other donor funded incremental costs would also be included in the analysis. Nevertheless, regardless of
ICA methodology the project achieved its objective at estimated incremental costs.
7 Estimates conducted by the PMU.
28
These CE ratios may be compared with those achieved in other parts of the world. In
Poland, the CE ratios achieved by the World Bank funded Rural Environmental
Protection Project in four regions ranged between US$18.5/kg N and US$24.8/kg N.
These CE ratios are lower than the above estimates for the Romania APCP since they
were calculated in present value terms with a discount rate of 10% and expressed in 2000
Dollars while the CE ratios in Romania are in current value terms.
These CE ratios are within the same range of CE ratios achieved in the Chesapeake Basin
of the United States where comparable CE ratios were calculated. As the below table
indicates the median CE ratio for manure management was US$30 per kg of N removed.
This ration is roughly equivalent US$ 39 / kg N in 2003 terms (table below). CE ratios
were lowest in Romania for nutrient management. This phenomenon was also observed
in the Chesapeake Basin.
Nitrogen reduction cost effectiveness rations achieved in the Chesapeake Basin (US$/kg
N removed)*
25 percentile
Median
75 percentile
Nutrient Management and
10.4 19.5 28.6
Animal Waste Systems
Animal Waste Systems
20.8
39
58.5
Source: Adapted from Camacho (1992), p.38.
* The CE ratios were adjusted for inflation using a GDP deflator of 1.30 from 1990 to 2003.
It may be concluded that the CE ratios achieved in Romania are broadly in line with
international experience.
29
Annex 4. Bank Lending and Implementation Support/Supervision Processes
(a) Task Team members
Responsibility/
Names
Title
Unit
Specialty
Lending
Task team
Jitendra Srivastava
Lead Agriculturalist
ECSSD
leadership and
technical input
Doina Petrescu
Sr Operations Officer
ECSSD
Technical input
Meeta Sehgal
Consultant
ECSSD
Technical input
Naushad Khan
Sr Procurement Spec.
ECSPS Procurement plan
Arben Maho
Procurement Analyst
preparation
Ranjan Ganguli
Sr Financial Management Spec.
ECSPS
Financial
Bogdan Constantin
management plan
Sr Financial Management Spec.
ECSPS
Constantinescu
preparation
Rohan Selvarathnam
Operations Analyst
ECSSD
Project costing
Stan Peabody
Lead Social Scientist
ECSSD Social assessment
Dana Dobrescu
Consultant
ECSSD Social assessment
Srish Kumar
Consultant
ECSSD
Project costing
Supervision/ICR
Task team
Doina Petrescu
Sr Operations Officer
ECSSD
leadership
Nadia Badea
Operations Analyst
ECSSD
Technical input
Financial
Bogdan Constantin
Sr Financial Management Spec.
ECSPS
management
Constantinescu
supervision
Vladislav Krasikov
Sr Procurement Spec.
ECSPS
Procurement
Blaga Djourdjin
Procurement Analyst
ECSPS
supervision
Organizational
Ana Maria Ihora
Program Assistant
ECCRO
support
Jitendra P. Srivastava
Consultant
ECSSD
Technical input
Main author of
Tijen Arin
Sr. Environmental Economist
ECSSD
ICR
(b) Staff Time and Cost
Staff Time and Cost (Bank Budget Only)
Stage of Project Cycle
US$ Thousands (including
No. of staff weeks
travel and consultant costs)
Lending
FY99
6.22
FY00
169.82
FY01
117.42
30
FY02
46.60
FY03
0.00
FY04
0.00
FY05
0.00
FY06
0.00
FY07
0.00
FY08
0.00
Total:
340.06
Supervision/ICR
FY99
0.00
FY00
0.00
FY01
0.00
FY02
36.62
FY03
42.97
FY04
42.82
FY05
35.07
FY06
14.11
FY07
30.34
FY08
0.78
Total:
202.71
31
Annex 5. Beneficiary Survey Results
In the spring of 2007, a survey and in-depth interviews were carried out among
stakeholders in the project region. The study aimed at assessing the project's impact on
the target population and evaluated the level of use of environment friendly agricultural
practices and of nutrient management plans, at the levels of both agricultural associations
and individual households. The following are the key findings of the study:
· The number of associations involved in the project increased from 2005 to 2006.
This increase was related mainly to the usage of the compost/manure collected
from the households. The most frequently used environment friendly practices were
crop rotation, seed selection, and use of pesticides and chemical fertilizers assisted
by a specialist. However, association representatives mentioned difficulties in
implementing these practices, including lack of an irrigation system, high costs of
transportation and spreading on land of composted manure, and insufficient
availability of composted manure.
· Among households that work the land themselves and that could use the
environment friendly practices; the most frequently used environment friendly
practices were crop rotation and seed selection. However the ratios were much
lower than the ratio of associations. The key factor affecting level of
implementation of such practices was found to be land size the larger the land the
more likely the household to use one of these practices.
· In 2006, households used crop rotation and expert-guided chemical fertilizer
application more frequently than in 2005. Analysis of the evolution of environment
friendly practices indicated that the largest increases brought about by the project
were in expert-guided application of chemical fertilizers and pesticides and in
natural windbreaks.
· Most of the problems encountered earlier with regard to garbage and manure
management were solved thanks to the efforts of the APCP and of the local
administration. Generally speaking the situation improved in project area with
respect to waste and manure collection, storage, disposal. The approach to waste
and manure management was considered appropriate. Water pollution was reduced
as was the incidence of nitrite poisoning. Villagers were taking their garbage and
collected manure to the commune's platform, consequently non-authorized
platforms had disappeared and the general appearance of the villages has improved.
· Improper utilization of individual platforms and euro-bins was lower in 2007 than
in 2005 and 2006, owing to the efforts of the local administration and the APCP.
Local administrators controlled the use of the bins and platforms, while the APCP
provided holey bins with wholes which made their use for food storage impossible.
In four of the seven project communes, public service for waste and manure
collection was operational and transported waste collected by households to the
communal platforms. In the other three communes public authorities were at the tie
of the study organizing the service with the support of APCP and of the County
32
Council. Three new communal waste and manure platforms were under
construction, providing easier access for the local population for waste disposal.
· The project was relatively well known in the project region among households and
other local stakeholders. The APCP was mainly identified as a project that assisted
and had the entire community as beneficiary. The project's aim and results were
primarily associated with garbage management. Data gathered, in particular
qualitative data, suggested that project implementation was achieved without major
difficulties.
· The project effects were perceived generally as positive. However, there were
differences in stakeholders' perceptions of the project's sub-components. While
environment friendly agricultural practices component was associated more with
positive effects than the garbage management sub-component, its consequences
seemed rather diffuse. On the other hand, the cleansing of the locality was
perceived as the main benefit of the garbage management component by 72% of
persons who answered the questionnaire and a large majority the persons
interviewed.
· The project seemed to have positive consequences also at institutional level,
mayoralties being the main beneficiary. Qualitative information suggested an
improvement of relations between mayoralties and communes' citizens, and also an
increase in local capacity to access and manage community development projects,
due to experience gained in the project. According to data gathered (especially
qualitative data), various activities were carried out to disseminate information
about the project. Almost all communes reported of visits of representatives of
institutions that could develop similar project (representatives of mayoralties from
Clrai and neighbor counties).
33
Annex 6. Stakeholder Workshop Report and Results
Not applicable.
34
Annex 7. Summary of Borrower's ICR
Introduction
1. The Implementation Completion Report provides an:
· Assessment of the Project objective, design and implementation experience.
· Evaluation of the borrower's performance during the implementation of the Project,
with special emphasis on lessons learned that may be relevant in the future.
· Evaluation of the performance by the Bank, the co-financiers and other partners
during the evolution and implementation of the Project, including the effectiveness of
their relationships, with special emphasis on lessons learned.
Assessment of the Project objective, design and implementation experience
Project Objectives
2. The overall project development objective is to increase significantly the use of
environmentally-friendly agricultural practices in the project area and thereby reduce
nutrient discharge from agricultural sources in Romania to the Danube River and Black
Sea. The project was envisaged as a demonstration activity in the southern part of
Romania, along the lower Danube, that may provide replicable lessons for introduction of
similar practices in other zones of Romania as well as other Black Sea Riparian Countries.
3. This was a valid objective because, at the time, Romania was one of the major
contributor to the Danube and Black Sea pollution with nutrients originating from
agricultural activities and the Government needed assistance in order to honor its
international obligations as well as moving Romania towards EU accession by addressing
EU Directive 91/676/CEE regarding the water protection against pollution with nutrients
originating from agricultural sources (Nitrate Directive). Many new farmers that had
recovered their land in the early 1990s started to practice agriculture without having the
necessary skills, experience and the appropriate equipment and therefore they started to
seek advice on developing their farming enterprises. This was a good opportunity for the
Project to offer them demonstrations on environment-friendly agricultural practices with
low inputs, organic farming, manure management and nutrient management.
4. With regard to the communes, they were confronted with huge problems of pollution
generated by the householders that in the 1990s started to grow animals inside the
villages. This activity generated large amounts of manure improperly managed that was
dumped mixed with inorganic and other household waste on agricultural lands, making
them inappropriate for agriculture and a source of pollution with nutrients (mainly
nitrogen and phosphorous) of the soil and water resources. There was a need to introduce,
at the commune level, adequate manure management practices, supported with the
necessary investments, equipment and training.
5. With regard to the drinking water quality, the population in the Project area was
affected by the high nitrogen content and the exceeded acceptable levels for Streptococus
fecalis and for fecal coli forms. Between 1996 and1999, forty-five cases of acute nitrate
35
poisoning were reported in the Calarasi County. In fact, all cases of acute nitrate
poisoning in 1997 in Romania were in the Calarasi County.
Project Design
6. To achieve its overall objective, the Project was designed to: (i) facilitate the farmers'
participation in the Competitive Grant Scheme organized by the Agricultural Services
Support Project financed by the World Bank and implemented by the Ministry of
Agriculture, with project proposals aiming the technology adaptation and extension
interventions for environment-friendly practices; (ii) provide grants for the installation of
improved manure storage facilities and equipment for manure collection and application
in the seven comunas around Galatui Lake; (iii) promote the adoption of better
agricultural practices that would improve agricultural production while reducing nutrient
discharge pollution from agriculture; (iv) develop and support a specific land use
management plan for the Boianu-Sticleanu Polder and the restoration of part of the
Calarasi-Raul Polder; (v) strengthen the capacity of the local agencies (EPI, OJSPA and
Public Health Directorate in Calarasi) to carry out soil and water quality monitoring
programs; (vi) support the Ministry of Water and Environmental Protection (MWEP)
and Ministry of Agriculture, Food and Forests (MAFF) for the application of the Nitrates
Directive and harmonization of legislation with the requirements of the European Union,
developing a Code of Good Agricultural Practices and strengthening the capacity of the
National Authority for Ecological Agriculture; (vii) support public awareness campaigns
at local level to familiarize the population and help induce the behavioral changes
necessary to the success of the project in the seven selected comunas, and replication in
the judet area, at national level, to disseminate the information concerning the benefits of
the project activities and promote replication at national level and at regional level, in the
Black Sea Riparian countries to promote the pilot project as a possible model for
replication.
Implementation experience
7. Competitive Grant Scheme (total cost US$1,104,812): Several trainings were jointly
organized by the PMUs of the APC and ASS Projects with the participation of the OJCA
and DADR specialists, to provide guidance to farmers on the preparation of projects
proposals, according with the provisions of the Operational Manual of the ASSP. Some
21 Concept Notes were submitted by farmers in Calarasi County and a number of three
projects were eligible for the co-financing out of the APC Project. The training program
provided regular interaction between the extension staff and the farmers. Farmers
considered the disseminated information very useful for the preparation of project
proposals not only for the CGS but also for other programs (PHARE, SAPARD) offering
support on competitive basis. The awarded projects were well implemented and several
technologies demonstrated were adopted by farmers.
8. Manure management (total cost US$ 5,065,400): This sub-component provided grants
on a cost-sharing basis for the construction of village-level solid waste manure facilities
and small storage platforms with effluent collection facilities at the household level, as
well as for equipment for manure handling and spreading. The initial investment program
consisted in a number of 14 commune level manure platforms and about 4000 manure
36
bunkers for the individual households. In addition, the USAID offered support for the
design and construction of a pilot manure storage facility and the initial training for
farmers, mayors and communes' specialists in manure composting and use. The
collaboration with the Iowa State University provided useful support and information for
refining the design of the manure platforms. The implementation of this sub-component
has made an important impact on the behavioral changes of villages' inhabitants, farmers
and local authorities. The construction of the commune level and of the individual
platforms was done in a participatory manner, the beneficiaries being involved in all the
construction stages. Training and awareness on good practices for manure collection,
composting and use as organic fertilizer was provided to the operators of the platforms
and to individual farmers. As a consequence of the good results obtained, the communes
requested support for the construction of three additional platforms, and agreed to
increase their part of co-financing in order to cover the construction costs. Finally, at the
level of the communes the project financed a number of 18 manure platforms with a total
storage capacity of 53,900 tons. At the household level the project financed a total of
2,250 individual platforms and, in order to help farmers to segregate the waste, 5,710
euro-bins were provided to the farmers. Also, each commune platform was provided with
an office-container completely furbished, with water tank and toilet. The communities are
fully using the platforms and the equipment and about 21 new working places were
created. The percentage of households with livestock in the project area using village
manure storage, household bunkers and segregating waste materials reached 54.4%
compared to the baseline of 0%, and end-of-project target value of 45%.
9. Testing/Demonstration of the environment friendly agricultural practices (total value
of US$ 311,832).
This sub-component provided support for (i) testing and demonstration of environment
friendly practices; (ii) strengthening the capacity of the OJSPA to provide services and
technical assistance for farmers related to the nutrient management plans, soil testing and
monitoring the soil quality; (iii) training of farmers and OJCA staff on agricultural
environment-friendly practices. The demonstrations were organized both in the Polder
and the Terrace areas. The demonstrated practices included conservation tillage,
shelterbelts/windbreaks, narrow vegetative barriers, filter strips, riparian buffers, nutrient
management, agro-forestry, tree planting, grazing management, crop rotation and green
fertilizers. In addition to these agricultural and agro-forestry practices there were
organized demonstrations of the reclamation of the former unauthorized manure dumping
places and recovering of the land for agricultural use. Also, demonstrations regarding the
fountains head protection were organized and a number of 18 public wells where
rehabilitated as an example of good practice to be used by householders. To support these
demonstrations, the project provided the necessary planting materials and the specialized
equipment for demonstration. Fourteen training sessions and field visits were organized
with the participation of about 650 local farmers and specialists.
Regarding the rehabilitation of communes' pastures and improvement of the grazing
management, the project provided support for the rehabilitation of 240 ha of pastures in
the terrace area as well as in the Polder as demonstration of good practices. The project
provided consultancy, selected seeds fixed and electic fences and mobile shelters for
pasture administrators. The communes' representatives received guidance from the PMU
37
for organizing the controlled grazing management on the rehabilitated pastures. The
brochure ,,Prescribed Grazing Management to Improve Pasture Productivity in New
York" elaborated by the United States Department of Agriculture, Soil Conservation
Service and Cornell University, Department of Animal Science, was translated from
English and distributed to the communes to serving as a guide for preparing the grazing
management plans. These demonstration pasture fields are being properly managed and
used by the communities.
With regards to the Nutrient Management Plans, the Project provided support for the
preparation of a methodology for elaboration of the plans at the farm level. As support for
farmers, a Field Handbook containing information and guidance for the elaboration of the
Nutrient Management Plans was prepared. The methodology has been extensively
discussed with all the stakeholders and approved by the Inter-ministerial Commission for
Nitrates Directive and the MAFRD. Also, the Nutrient Management Plans for 7
representative farms in the Project area and a training program for the farmers and
specialists from OJCA, OSPA and DADR were carried on. The OJCA and OJSPA were
provided with the computer program elaborated by the Project, for Nutrient Management
Plans preparation. In order to strengthen the capacity of the OJSPA to perform soil tests,
the project provided funds for minor rehabilitation of the laboratory, laboratory
equipment, a four wheels vehicle and training of staff.
A survey regarding the use of the environment-friendly agricultural practices promoted
under the APCP showed that the percentage of area under nutrient management systems
including crop rotation, crop nutrient management with soil testing, and use of organic
manures is 31%, compared to the baseline of 1%, and the end-of-project target value of
30%.
10. Integrated Management of Boianu-Sticleanu Polder and ecological restoration of part
of Calarasi-Raul Polder (total value US$ 408,167)
The main activity was related to the implementation of the Conservation management
plan of the Iezer-Calarasi nature reserve. The Project supported the elaboration and all
necessary steps for approval through Government Decision of a Conservation
Management Plan for the Iezer-Calarasi Avi-faunistic Protected Area. Also, the project
procured the equipment needed by the local Environment Protection Agency (EPA) in
Calarasi and by the Custodian SC Piscicola Calarasi for the activities related to the
management of the protected area and helped the custodian of the protected area to
demarcate the boundary, to develop an information center and a public awareness
strategy and to implement the overall conservation plan. All these activities have been
achieved and the Iezer Calarasi nature reserve is functional.
Under the agro-forestry planting program, an area of 1,569 hectares was planted with
acacia, poplar, willows and honey locust as shelter belts, wind breaks, buffers on erosion
prone location. Out of the 1,090 hectares initially planed to be planted in the polder, only
858 hectares were planted because the difficulties in transferring the lands from the State
Domain Agency to the National Forestry Regia. For this reason, in consultation with the
stakeholders the tree planting program, initially planed for the seven comunas, was
extended at the County level and the remaining 232 hectares planned to be afforested in
38
the polder, were planted on the terrace area, as shelter belts and buffer strips. As result,
on the Project area, the tree planting indicator was met in proportion of 103.4%.
The planting program was supported by an intensive training program addressed both to
farmers and school children. It worth to be mentioned the large participation of the school
children in the tree planting program.
11. The envisaged rehabilitation of the Calarasi-Raul polder could not be achieved
because the feasibility study elaborated by the Danube Delta National Consulting
Institute, revealed that the ecological restoration of part of the Calarasi Raul Polder to
the initial conditions (before building the dike and transformation into an agricultural
polder) is not possible anymore due to the modification of the hydrological conditions of
the Danube course. The potential ecological restoration of the Calarasi Raul needs
further consideration in the Danube Green Corridor context, subject to a more in-depth
environmental and social assessment. Also, the funds provided in the Project were much
below the estimated cost of restoration. The amount budgeted for the implementation and
monitoring of the ecological restoration project for the Calarasi Raul Polder was
reallocated to other project components.
12. Strengthening the capacity of water quality monitoring at Calarasi County level (total
value US$ 384,201).
The project interventions consisted in providing funds for the construction of a
piezometers network covering the project area. The project also provided the necessary
laboratory furniture, equipment, vehicle and training in order to create conditions for the
laboratory accreditation. An intensive sampling and testing program of the ground and
surface waters nutrients content was carried on by the Water Management Service and
the tests results were used for the assessment of the impact of the project interventions for
reducing the nutrients loss into the waters. The communes and farmers were regularly
informed, direct and through the public awareness campaigns, about the water quality in
the project area. The WMS staff participated to the courses organized by the project at
national level, to train the staff of the institutions involved with soil and water quality
monitoring, and the implementation of the EU Nitrate directive.
13. Strengthening the national regulatory capacity regarding the environmental policy
(total value US$ 146,102).
The project supported the MWEM and the MARD for the application of the Nitrates
Directive. The project provided support for: (i) assessment of the costs required for the
implementation of the Nitrate Directive and elaboration of the methodology for
diagnosis and action plan; (ii) training of the staff of the institutions involved in the
implementation of the Nitrate Directive at national and local levels; (iii) national
meetings and consultation with the stakeholders; (iv) development of the Code of Good
Agricultural Practices, Code of Good Agricultural Practices and Environment Condition,
and the Code of Best Farming Practices.
The methodology for diagnosis and action plans elaborated with the project support
provided a better understanding of the role of each of the institutions involved in the
Nitrate Directive implementation.
39
As regards the Codes of good agricultural practices, they were elaborated, approved
through ministerial orders, published and disseminated in 15,500 copies. These codes are
an important support for farmers willing to organize their agricultural activities in order
to access the EU funds.
14. Public Awareness and Replication Strategy (total value US$ 416,141)
The public information campaign of the project activities and benefits was undertaken at
three levels: (i) In Clrai County, in order to familiarize the population and to help
inducing behavioral changes necessary for the success of the Project, in the seven
communes selected and replication in the Project area; (ii) At national level, in order to
disseminate the information regarding the benefits of the Project activities and promoting
the replication at national level; and (iii) At regional level, in the Back Sea neighboring
countries, for promoting the pilot Project as a possible replication model.
At the local level, the Project's objectives and results have been disseminated through
activities organized in the communes from the Project area, promotional materials
distributed to the participants to different contests on environmental friendly agricultural
practices themes, publications dedicated exclusively to the "Agricultural Pollution
Control" Project, different exhibitions organized with the participation of farmers and
companies with activities in the area of organic agriculture. The public awareness
campaigns have been a critical factor in inducing the behavioral changes necessary for
the success of the project. In order to consolidate the new behavioral patterns, the farmers
and the stakeholders were presented with the benefits of these activities. The staff of the
County Centre for Agricultural Consultancy and other local institutions (OJCA, WMS,
PHD, County Council) was trained regarding the use and the benefits of the
environmental friendly agricultural practices, and were involved in the demonstration and
the field visits, therefore becoming an important mean with regards to encouraging the
adoption of these practices in the entire county even after the project closing date.
At the national level, several conferences and consultations with the stakeholders were
organized in order to promote the project replication. The Project hosted visitors from
other counties, organized project presentations and field visits for farmers from other
regions in the country. The project achievements were promoted through publications,
exhibitions, promotional materials and social activities.
The awareness campaign was successful in building a general good-will for the project
and its benefits and raised the interest of the authorities, mayors and farmers from other
counties towards the aims of the project. The project provided considerable support to the
Government of Romania in developing a new project based on the experience gained
during this project, named Integrated Nutrient Pollution Control (INPC). Thus the project
has fulfilled its objective for replication at national level.
At the regional level the project provided for the participation to regional workshops,
study visits and other activities to promote replication of project activities in other Black
Sea riparian countries. A Regional Conference on Agricultural Pollution in the Danube,
Baltic and Black Sea Basins was held in Bucharest in 2003. Under the regional
replication efforts, the project supported the organization in Poland of a study tour of the
mayors and farmers from Calarasi area.
40
Borrower performance and Lessons Learned
15. Project Management. The Project Management Unit was established and fully staffed
before the Project effectiveness and, during the project life, provided effective technical
leadersheep and efficient project administration. The structure of the PMU remained
unchanged, except for the procurement specialist that left in the third year of the project,
his tasks being taken by the Financial Manager and M&E Specialist. Given the pilot
nature of the Project it inevitably took time to build understanding at all levels of MWEP
and to put in place the appropriate management systems. The PMU has also played an
important role in building a good relation with the Local Coordination Committee and
Project beneficiaries. As result the project development objectives has been achieved,
expected outputs in many cases exceeded and funds fully disbursed. The PMU worked
continuous with the Bank Resident Mission and received guidance and support to resolve
implementation issues as they arose.
16. Financial Management. The financial management of the project was highly
satisfactory. The PMU has developed financial management software tailored for the
project needs, with adequate security levels and its outputs were used to prepare quarterly
financial monitoring reports of the project. The system is flexible and can be scaled up
for the new World Bank supported Project - Integrated Nutrient Pollution Control. The
project team uses a comprehensive set of accounting policies and internal control
procedures in accordance with the Romanian legislation and the project financial
management requirements. The financial procedures manual for the project has been
subject to periodic updates and regular reviews by the Bank. Since the Project beginning,
the PMU have been designated by the Implementing Agency, as third budgetary holder
for the Project funds, which leaded to a successful, rapid and efficient implementation of
the Project activities and a very good disbursement of the grant funds during the Project
life. The PMU financial activity have been annually audited by independent auditors,
acceptable to the Bank, and unqualified audit opinions, with no internal control problems
have been issued at every report. The counterpart funds, from all sources, have been
provided in time and necessary amounts. The budgetary funds have been provided
quarterly, according to the PMU requests, in the limits allocated in the annual budgets.
The local funds, from the Calarasi County Council and the seven beneficiary communes
exceeded the amount initially allocated in the Project budget and the PMU collaboration
with them have been highly satisfactory.
17. Procurement. The procurement capacity of the PMU was adequate for successful
management of the Grant. The PMU was strictly followed Guidelines requirements and
the quality of preparation of the documentation was good during the project
implementation.
18. Project Monitoring and Evaluation. The Borrower has fulfilled its obligations with
respect to monitoring and evaluation of the project. The project monitoring was done in
accordance with the M&E Plan designed during project preparation and included in the
Project Implementation Plan (PIP). The PMU has developed a comprehensive database
including information related to the monitored indicators and prepared periodical
progress reports. These reports were shared with the MEWM and the World Bank and the
M&E results were used by the project management to address the implementation
problems.
41
19. Lessons Learned. Several lessons were learned from the implementation of the
project, namely: (i) for the components requiring beneficiaries' contribution (in cash or in
kind), the early involvement of the stakeholders in project preparation is essential in order
to ensure ownership and make them aware about the actual level of the effort necessary
for the successful component implementation; (ii) the environmentally friendly
agricultural practices included in demonstration programs should yield tangible benefits
for the farmers, in order to ensure their adoption; (iii) the best way to convince the
decision factors to support an activity that is new in the project area, are the
demonstration visits to similar places where such kind of activities were successfully
implemented; (iv) early efforts should be made to ensure the training of the project
beneficiaries regarding the further use of the provided facilities; (v) the establishment of a
local coordination committee, including representatives of the local authorities and of the
beneficiaries, is the best solution for addressing the implementation issues; (vi) a public
awareness campaign focused on the project objectives needs to be organized from the
early stage of the project implementation.
Performance of the World Bank and Other Co-financers
20. The Bank's Resident Mission and Bank's supervision missions provided the needed
assistance for resolving the problems occurred during the project life, and the ready
accessibility of the Bank's team was particularly helpful in reaching timely decisions.
The relation with Calarasi County Council and Beneficiaries worked very well and the
funds were made available on a timely basis. There was a very good collaboration with
USAID who provided funding for a pilot manure platform and a training program.
42
Implementing Agency Comments on Draft ICR
43
Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders
In the early project implementation phase, USAID contributed US$ 150,000 to the
project with which a comuna platform was built. The ICR team attempted to contact the
USAID Office in Bucharest in the first half of December 2007 for comments on the draft
ICR. However, due to the phasing out of the USAID Office in Bucharest in progress and
the Holiday Season, contact could be established with the officer in charge of cooperation
with the APCP only on December 28, 2007. The team expects to receive comments on
the ICR in early January and will file them in IRIS.
44
Annex 9. List of Supporting Documents
1. "Review of the Status of Implementation of the Environmental Management Plan Agreed at
the project Appraisal (October 18 November 18, 2004)" by Dr. Violeta Visan, Consultant
for the World Bank, Bucharest, Romania.
2. "The monitoring of Social Effects of the Agricultural Control Project. A report for the
Ministry for Environment and Water Management." by Malina Voicu, Monica
Constantinescu and Vlad Grigoras. Romanian Academy Research Institute for Quality of Life.
Bucharest, May 2007.
3. Estimation of Nutrient Reduction. Excel Sheet produced by the PMU. "Nutrients
Reduction.xls".
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MAP
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