Document of
The World Bank
Report No:
DRAFT ONLY
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED GLOBAL ENVIRONMENT FACILITY TRUST FUND GRANT
IN THE AMOUNT OF US$5.15 MILLION
TO THE
GOVERNMENT OF ROMANIA
FOR
AGRICULTURAL POLLUTION CONTROL PROJECT
August 16, 2001
Environmentally and Socially Sustainable Development Unit
Europe and Central Asia Region

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

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

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ROMANIA
AGRICULTURAL POLLUTION CONTROL PROJECT
CONTENTS

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

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

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ROMANIA
AGRICULTURAL POLLUTION CONTROL PROJECT
Project Appraisal Document
Europe and Central Asia Region
ECSSD
Date: August 15, 2001
Team Leader: Jitendra P. Srivastava
Country Manager/Director: Andrew N. Vorkink
Sector Manager/Director: Kevin M. Cleaver
Project ID: P066065
Sector(s): VY - Other Environment
Theme(s): Environment
Focal Area: I - International Waters
Poverty Targeted Intervention: N
Program Financing Data
[ ] Loan [ ] Credit [X] Grant [ ] Guarantee [ ] Other:
For Loans/Credits/Others:
Amount (US$m): 5.15
Financing Plan (US$m): Source
Local
Foreign
Total
BORROWER
5.18
0.52
5.70
GLOBAL ENVIRONMENT FACILITY
3.43
1.67
5.10
Total:
8.61
2.19
10.80
Borrower/Recipient: GOVERNMENT OF ROMANIA
Responsible agency: MINISTRY OF WATERS, AND ENVIRONMENTAL PROTECTION
Address: B-dul Libertatii, 12, Sector 5, Bucharest, Romania
Contact Person: Mr. Petru Lificiu, Secretary of State
Tel: 40-1 410-0219 Fax: 40-1-410-0219 Email:

Estimated disbursements ( Bank FY/US$m):
FY
2002
2003
2004
2005
2006
2007
Annual
0.50
1.25
1.20
1.00
0.70
0.50
Cumulative
0.50
1.75
2.95
3.95
4.65
5.15
Project implementation period: 5 years
OCS PAD Form: Rev. March, 2000

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A. Project Development Objective
1. Project development objective: (see Annex 1)
The overall project development objective is to increase significantly the use of environment-friendly
agricultural practices in the project area and thereby reduce nutrient discharge from agricultural sources in
Romania to the Danube River and Black Sea. In support of this objective, the project will assist the
Government of Romania to: (i) promote the adoption of environment-friendly agricultural practices by
farmers' associations, family farms and individual farmers in the Calarasi Judet (county); (ii) promote
ecologically sustainable land use and management in the Boianu-Sticleanu Polder, and ecological
restoration of the neighboring Calarasi-Raul Polder to act as a filter and reduce nutrient discharge to the
Danube; (iii) strengthen national policy and regulatory capacity; and (iv) promote public awareness and
mechanisms for replicability. The project, envisaged as a demonstration activity in the Calarasi county in
the southern part of Romania, along the lower Danube, may provide replicable lessons for introduction of
similar practices in other districts of Romania as well as other Black Sea riparian countries.
Project impact, output and performance indicators have been developed to provide a baseline and targets
for project monitoring and evaluation (see Annex 1). The success of overall project impact will be
measured in terms of adoption of practices for reducing nutrient discharge, namely: (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.
Project Global Environmental Objectives: The global environmental objective of the Project is to reduce,
over the long-term, the discharge of nutrients (nitrogen and phosphorous) 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. The project is the first of
its kind under the umbrella of the Black Sea/Danube Strategic Partnership - Nutrient Reduction
Investment Fund under which riparian countries would be eligible for Global Environment Facility (GEF)
funding for projects that would control or mitigate nutrient inflow to the Black Sea. The proposed project is
one of the Bank's early efforts in mainstreaming environmental considerations into agriculture and is
expected to serve as a model for similar operations to be replicated in the other littoral countries under the
umbrella of the Strategic Partnership Program.
Project activities are directly linked to "Strategic Action Plan for the Protection and Rehabilitation of the
Black Sea" (BSSAP), formulated with the assistance of the GEF. BSSAP has identified nutrient discharge
from agricultural sources as the most serious problem facing the Black Sea. By improving manure
management and agricultural practices, and by sustainably managing two high priority former floodplain
areas, the project would also complement the Danube River Pollution Reduction Program and assist the
Government in meeting its international obligations under the Bucharest Convention. In addition, project
activities would help the Romanian government in honoring its commitments under the Odessa Ministerial
Declaration on the Protection of the Black Sea and the Danube River Protection Convention, as well as
moving Romania towards EU accession by addressing European Union Directives: 91/676/CEE ­
Directive regarding water protection against pollution with nutrients originating from agriculture; and
96/61/CEE ­ Directive related to the prevention and the complete reduction of pollution. Also, through
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proposed project activities of tree planting, recycling of manure and crop residues and ecologically
sustainable land use in the project area, an ancillary global benefit of carbon sequestration will occur under
the project.
2. Key performance indicators: (see Annex 1)
Project impact, output and performance indicators have been developed to provide a baseline and targets
for project monitoring and evaluation. Overall project impact will be measured in terms of adoption of
practices for reducing nutrient discharge, namely: percentage of households adopting improved manure
handling facilities and the area coming under environment-friendly practices (target of 65% coverage by
2010), as well as trends in water quality indicators at designated sites.
B. Strategic Context
1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1)
Document number: 22180-RO
Date of latest CAS discussion: June 19, 2001
The Romania CAS is consistent with the country's development agenda: poverty reduction and EU
accession. The World Bank has identified five priorities in the CAS: promotion of economic growth,
institution building to strengthen the rule of law, greater access to opportunity, strengthening of the safety
net, and protection and sustainable management of natural resources and the environment. The proposed
GEF-funded project directly addresses the major development challenge of protecting and enhancing the
environment, assisting the country towards EU accession and institution building. The project will help
develop the legal framework to address the EU Nitrates Directive as well as a Code of Good Agricultural
Practices which will not only assist in EU accession but also with improving agricultural production which
in turn will help to boost exports and foreign exchange earnings. By seeking the commitment and full
participation of relevant local and national stakeholders in project preparation and implementation, project
activities will build local and national capacity to meet the goal of environmentally sustainable agriculture
and help Romania honor its international commitments to reduce nutrient discharge to the Black Sea from
agricultural sources. The proposed project is also in line with the initiatives launched in support of the
agricultural sector, which was deemed a priority on the grounds that it offered good prospects for growth
and poverty reduction.
1a. Global Operational strategy/Program objective addressed by the project:
The Project will implement priority actions identified in the Black Sea/Danube Strategic Partnership -
Nutrient Reduction Investment Fund, Black Sea Strategic Action Plan, Danube River Strategic Action Plan
and Danube River Basin Pollution Reduction Program supported by GEF. The Project's objective of
reducing non-point source nutrient pollution from agriculture is consistent with GEF Operational Program
Number 8, Waterbody Based Operational Program, which focuses "mainly on seriously threatened
water-bodies and the most important trans-boundary threats to their ecosystems." Under the Program,
priority is accorded to projects that are aimed at "changing sectoral policies and activities responsible for
the most serious root causes or needed to solve the top priority trans-boundary environmental concerns."
The Project's approach of combining good agricultural practices with ecologically sustainable use of
natural resources in two former floodplain areas, identified under the Danube River Pollution Reduction
Program, is consistent with the GEF Operational Program Number 9, Integrated Land and Water Multiple
Focal Area Operational Program, which supports "more comprehensive approaches for restoring and
protecting the international waters environment," and the proposed project is commensurate with this.
The Project will provide an opportunity for the GEF to be a catalyst for actions to bring about the
successful integration of improved land and water resource management practices. GEF support will
- 3 -

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reduce costs and barriers to farmers adopting improved and sustainable agricultural practices. It will help
develop mechanisms to move from demonstration level activities to operational projects that reduce
non-point nutrient pollution to the Danube River and Black Sea. The project is an extension of the Rural
Environmental Protection Project in Poland and the Agricultural Research, Extension and Training (ARET)
Project in Georgia that seek to reduce nutrient flow from the agricultural sector to water bodies.
2. Main sector issues and Government strategy:
Main Sector Issues: During the last few decades, the Black Sea suffered severe environmental damage,
mainly due to coastal erosion, eutrophication, insufficiently treated sewage, conversion of wetlands,
increased nutrient run-off from agriculture, introduction of exotic species, and inadequate resource
management all of which led to a decline of its biological diversity, loss of habitat and long-term ecological
changes. Black Sea Environmental Program (BSEP) studies revealed that 58% of the total nitrogen and
66% of the total phosphorous flowing in dissolved form into the Black Sea come from the Danube river
basin. More than half of all nutrient loads into the Danube river originate from agriculture, about
one-fourth from private households and about 10-13% from industry.
Romania is the largest contributor of nutrients to the Black Sea as the country's entire territory drains into
the Sea. About 44% of the total nitrogen input and 58% of total phosphorous (P) input from Romania to
the Black Sea stems from agriculture and livestock. Privatization of farm lands assets have lead to farmers
keping livestock on site, and this has nutrient pollution problems in drinking water. Groundwater pollution
with nitrate (NO3) and microbial organisms from agriculture has major implications from the point of view
of drinking water supply for rural settlements in Romania. In 1997, for example, a number of infants were
diagnosed and hospitalized with acute nitrates poisoning in the proposed project area (Calarasi Judet). An
analysis of samples from 45 public wells and micro-centrales in Calarasi revealed that over 76% of the
samples exceeded bacteriological standards and 79% exceeded acceptable levels of chemical content.
Government Strategy. Reduction of nutrient run-off (nitrogen and phosphorous) into the Danube river and
Black Sea from agriculture is an integral part of the country's environmental strategy as well as the Black
Sea and Danube River Basin Strategic Action Plans. The Government of Romania has also assumed
international obligations under the Bucharest Convention, the Odessa Ministerial Declaration on the
Protection of the Black Sea, and the Danube River Protection Convention to reduce nutrient discharge to
the Black Sea, and is moving towards compliance with relevant European Union Directives. Development
of agricultural support services and on-farm environmental management is the basis of the government's
overall strategy for agriculture which is aimed at creating an enabling environment to fully realize the
sector's potential. Towards this, the Ministries of Agriculture and Environment have developed close
linkages between the ongoing Agricultural Support Services Project (ASSP) and the proposed APCP.
ASSP aims to support priority extension and applied research activities that will quickly transfer existing
proven technology to private farmers and agro-processors. A number of activities under ASSP will be
executed in the Calarasi Judet and APCP will fund the incremental cost of implementing relevant ASSP
activities that complement the objectives of APCP. Thus the proposed project will allow the Government
of Romania to mainstream environmental and pubic health considerations into its agricultural sector and
the synergy of such an approach will bring about greater benefits globally, regionally and locally vis-à-vis
independent, discrete agricultural and environmental projects.
3. Sector issues to be addressed by the project and strategic choices:
The Project would extend and deepen the ongoing and proposed reforms of the sector by addressing the
following key issues:
- 4 -

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l
fully integrating environmental concerns into agricultural practices to make them more sustainable,
including the storage, management and application of manure, ecologically sustainable use of
natural resources in a floodplain, buffer strips, conservation tillage, to reduce over the long term
the discharge of the nutrient load into the Romanian ground and surface waters as well as into the
Danube River and the Black Sea;
l
promoting appropriate policies and policy reforms in order to create the enabling environment for
realizing project objectives;
l
developing capacity of private smallholder and commercial farmers to use environment-friendly
agricultural practices and resource management;
l
building national capacity in assisting the Government in meeting its international obligations
under the Bucharest Convention, the Odessa Ministerial Declarations of the Protection of the Black
Sea and the Danube River Protection Convention; and
l
moving towards compliance with the EU Directives as part of the EU accession process.
Strategic Choices
Strategic choices made before proceeding with project preparation may be summarized as follows:
(i) First, whether project interventions were justified at this juncture. In this regard, land
reform/privatization had resulted in ownership of farmland being vested in individuals with minimal
experience in small scale or commercial farming. Without providing the small holders and commercial
farmers access to information on sustainable agricultural practices and technology, it was highly unlikely
that the reform measures would yield anticipated benefits. That existing institutions would be able to
provide such information in an efficient and cost- effective manner was also unlikely, given that they were
not designed to meet the needs of the sector as it evolved. Since the ASSP was designed to address these
issues, the need and timing of APCP were deemed appropriate. APCP would complement ASSP in
ensuring that the technologies disseminated were environment-friendly and responsive to Romania's
international commitments of reducing agricultural pollution to the Black Sea.
(ii)
Second, whether to undertake project activities on a country-wide basis or focus activities in a
particular area whereby the project could serve as a demonstration activity to be replicated in other similar
areas; (iii) Third, whether to work with the Ministry of Waters and Environmental Protection or with the
Ministry of Agriculture, Food & Forests to prepare the project and entrust it with responsibilities of
implementation.
With regard to (ii) and (iii), keeping in view the lack of expertise in promoting environment-friendly
agricultural practices in Romania, institutional weakness prevalent in the country, it was decided to target a
compact area of Romania. As local and national capacity increased, project activities could then be
replicated in other similar areas of the country. It was agreed that given the nature of the project activities,
it would be useful to involve both MWEP and MAFF in project preparation. However, for operational
convenience, MWEP was chosen as the line ministry with overall responsibility for the project.
(iv)
Fourth, whether to set up the Project Management Unit (PMU) at the project site (Calarasi Judet),
or establish it in MWEP or MAFF in Bucharest. To ensure close linkages with ASSP, much discussion
was held to combine the PMUs for both projects in the MAFF in Bucharest (as PMU of ASSP was based
- 5 -

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in Bucharest). However, in order to decentralize implementation power at the local level, build local
ownership and capacity, and to be able to effectively monitor and evaluate the impact of project activities,
it was important that the implementing agency be at the project site and not far removed from the target
population. Thus the PMU will be established in Calarasi. However, there are close working arrangements
between the PMUs of ASSP and APCP, whereby the financial management specialist of APCP and
procurement officer of ASSP (located in Bucharest) are common to both projects.
C. Project Description Summary
1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed cost
breakdown):
The project will support activities both at the Judet (county) as well as National level. At the Judet level,
the project will focus on Calarasi Judet, one of the poorest agricultural counties of Romania, characterized
by intensive farming, lack of running water, absence of a sewage system, contaminated drinking water
wells (both nitrites and bacteriological levels in water are above maximum acceptable standards) as well as
poor livestock management practices. Traditionally livestock is maintained near the house without an
organized system to collect and store manure. The lack of efficient manure management practices is
significant in terms of Romanian surface and groundwater pollution and nutrient run-off to the Danube
River and Black Sea.
The forty-eight comunas of the Calarasi Judet located in the southeastern part of Romania have about
410,000 ha of arable land and a total population of 332,000 in 94,000 households. This entire area will
also benefit from APCP support for technology adaptation and extension interventions for
environment-friendly agricultural practices under the Competitive Grant Program of the ASSP and will
help leverage additional funds from the ASSP for the Calarasi Judet. In the southern part of the Judet, the
project will support activities for nutrient reduction and monitoring in seven comunas Al Odobescu,
Ciocanesti, Cuza Voda, Gradistea, Independenta, Vilcelele, and Vlad Tepes comprising 21 villages, as well as in
the Boianu-Sticleanu and Calarasi-Raul polders bordering the lower Danube river. The area for direct
project interventions comprises about 90,000 ha of which 70,000 ha is arable land. While the average size
of land holding per family is about 2.6 ha, much of the land is grouped into larger family farms or leased
out to agricultural associations for farming operations. The main crops produced in the area include maize,
wheat, barley, sunflower and vegetables. Cattle, pigs, sheep, goats, horses and poultry are common in the
Judet. Livestock on holdings in the Judet by types and number and area under major crops are provided in
working paper 1 of the project. (Details in Working Paper 1). Most farms are mixed livestock and field
crops.
The Boianu-Sticleanu Polder (approx. 23,000 ha) comprises a former floodplain area, drained and
transformed into an agricultural polder in the late sixties and now containing large areas of cultivated
land, small areas of floodplain forests, degraded lands and the Iezer Calarasi water-body. The Iezer
Calarasi, with a surface of 3,200 ha, is to be declared a nature reserve, being an important corridor for
bird migration, most of them listed on Bonn and Bern Conventions. Iezer Calarasi was also identified by
WWF studies under the Danube Pollution Reduction Program (Project RO 67), the NEAP, and recent
studies coordinated by MWEP, as a high-priority area to be rehabilitated in the Lower Danube River
Basin. The Calarasi-Raul Polder, part of which is proposed for ecological restoration under the project,
adjoins the Boianu-Sticleanu polder to the east.
Component 1: Activities in the Calarasi Judet (US$9.22 m)
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Manure Management Practices (US$5.20 m). This sub-component will provide incentives for the
installation of improved manure storage facilities and equipment for manure collection and application in
the seven comunas. Villages and households wishing to participate in the investment program would be
selected against agreed criteria and cost-sharing arrangements. County Council engineering staff would
collaborate on design of the village-level manure store and would work with the Environmental Protection
Inspectorate (EPI) to see that the constructions met environmental guidelines on stopping manure leakage
to surface or groundwater sources. Community training and awareness on good practices for waste
collection and manure management, including composting, testing, and field application, would be
provided. (Details in Working Paper 6 and 16).
Promotion of Environment-friendly Agricultural Practices (US$2.47 m). This sub-component will
promote the adoption of better agricultural practices that would improve agricultural production while
reducing nutrient discharge pollution from agriculture. The proposed activities would include: (i) the
promotion of environmentally-friendly agricultural practices; and (ii) demonstration program of integrated
crop and nutrient management, including crop rotations and efficient application of organic and inorganic
fertilizers based on soil tests using soil testing kits provided by the project. Activities within the entire
Judet would be supported through the ASSP Competitive Grant Scheme with the APCP providing
farmers groups, eligible institutions and NGOs with the beneficiary contribution required to access CGS
funds. At the level of the seven comunas, the project would support a program of testing/evaluation and
demonstrations of environment-friendly practices, as well as pilot organic farming operations. (Details in
Working Paper 2, 3 and 4).
Integrated Management of Boianu-Sticleanu Polder and Ecological Restoration of part of the
Calarasi-Raul Polder (US$1.09 m): The project would develop and support a specific land use
management plan for the Boianu-Sticleanu Polder. Thus the project would develop an action plan for a
vulnerable area as requested under the EU Nitrate Directive. This component would include: (i) plantation
of agro-forestry trees on the degraded lands adjacent to the Iezer Calarasi and buffer strips on
unproductive riparian land; (ii) implementation of the code for good agricultural practices on the
neighbouring arable land; and (iii) implementation of a conservation management plan for the proposed
Iezer Calarasi nature reserve. The component will complement the restoration activities on the Bulgarian
side (Oriahovo, Bulgarian Danube islands and the floodplain west of Belene and Tutracan). The project
would also provide the costs of studies and ecological restoration of part (about 3000 hectares) of the
Calarasi-Raul Polder (adjoining the Boianu-Sticleanu Polder to the east and comprising a major portion
of abandoned rice fields) to wetlands. The project interventions in the two polders would be coordinated
by the Danube Delta National Research Institute (DDNRI). (Details in Working Paper 8).
Strengthening Capacity in Calarasi Judet ( Environmental Protection Inspectorate (EPI) and Public
Health Directorate) to Monitor Soil and Water Quality and Environmental Impacts (US$0.46 m).
The project would strengthen the capacity of EPI and Public Health Directorate in Calarasi to carry out
soil and water quality monitoring program to determine the impact of various project activities (in
particular, manure and nutrient management and the application of Code of Good Agricultural Practices
etc.), on soil and water quality. The project would support the incremental costs of: (a) selecting and
maintaining a set of soil and water quality monitoring sites in the project area to develop baseline data for
the current status of surface and groundwater quality; (b) determining the impact of improved manure
storage systems and better agricultural practices on water quality; (c) strengthening institutional and
technical capacity of EPI and PHD by providing professional training to field and laboratory staff and
upgrading laboratory equipment for analyzing water and soil samples for various water quality
indicators; and (d) by providing incremental operating expenses for field monitoring activities. (Details in
Working Paper 9 and 12).
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Component 2: Strengthening National Policy and Regulatory Capacity (US$0.27 m).
This would include support to the Ministry of Water and Environmental Protection (MWEP) and
Ministry of Agriculture, Food and Forests (MAFF) for: (i) work relating to the application of the Nitrates
Directive and harmonization of legislation with the requirements of the European Union A new
Governmental Decision (No. 964 and dated October 13, 2000) meets Government's obligations to introduce the
provisions of the EU Nitrate Directive into Romanian legislation. The issue of this document is the first step in
creating the legal framework for water and soil protection and would need to be followed by the preparation of
the Code of Good Agricultural Practices; (ii) developing a Code of Good Agricultural Practices; and (iii)
strengthening the capacity of the National Authority for Ecological Agriculture in its efforts to promote
scientific organic farming and land use management. MWEP would take the lead on the application of
the Nitrates Directive while MAFF will handle the development of the code (in collaboration with
MWEP) and the organic farming elements of the project. (Details in Working Paper 11).
Component 3: Public Awareness and Replication Strategy (US$0.45 m)
A broad public information campaign of the project's activities and benefits will be undertaken at the local,
national and regional levels to achieve replicability of project interventions. The project will strive to
induce the behavioral changes necessary to the success of the project (use of a manure management system,
respecting the environment-friendly agricultural practices, etc.) so that the overall goal of reducing nutrient
discharge to the Black Sea could be achieved. The public awareness activities will be delivered through
cost effective, innovative vehicles (including a bilingual website) as well as through the provision of
training in the use and benefits of environment-friendly agricultural practices. The project would provide
for the organization of regional workshops, field trips, training, publication in international agriculture and
environmental journals and other activities to promote replication of project activities in other Black Sea
riparian countries. The aim will be to build a general goodwill for the project and its benefits, which will
raise the interest of potential future clients. (Details in Working Paper 10).
Component 4: Project Management Unit (US$0.86 m):
The project would support a Project Management Unit (PMU) to be established in the DGAIA offices,
Calarasi. The PMU would comprise Project Manager, Agricultural Technical Specialist (who would also
handle project monitoring/evaluation), Financial Management Specialist, Accountant, Secretary/Translator
and Driver. Procurement services would be provided to the PMU by the ASSP Project Management Unit
located in the Ministry of Agriculture, Food and Forests. The costs of the Procurement and Financial
Management Specialists would be shared, with the APCP supporting the costs of the Financial Specialist
(who would be based in the ASSP PMU, Bucharest), while the ASSP would support the costs of the
Procurement Specialist. (See Annex 2, attachment 1).
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Indicative
Bank
% of
GEF
% of
Component
Sector
Costs
% of
financing
Bank
financing
GEF
(US$M)
Total
(US$M)
financing
(US$M)
financing
1. Calarasi Judet:
Pollution Control /
0.00
0.0
0.00
0.0
0.00
0.0
Waste Management
(a) Manure Management
Pollution Control /
5.20
48.1
0.00
0.0
2.54
49.3
Practices
Waste Management
(b) Promotion of
Pollution Control /
2.46
22.8
0.00
0.0
0.82
15.9
Environmentally- Friendly
Waste Management
Agricultural Practices
(c) Integrated Management of Pollution Control /
1.09
10.1
0.00
0.0
0.45
8.7
the Boianu-Sticleanu and
Waste Management
Calarasi-Raul Polders
(d) Water and Soil Quality
Pollution Control /
0.46
4.3
0.00
0.0
0.21
4.1
Monitoring
Waste Management
2. Strengthening National
Pollution Control /
0.27
2.5
0.00
0.0
0.21
4.1
Policy and Regulatory
Waste Management
Capacity
3. Public Awareness and
Pollution Control /
0.45
4.2
0.00
0.0
0.38
7.4
National and Regional
Waste Management
Replication Strategy
4. Project Management Unit
Other Environment
0.87
8.1
0.00
0.0
0.54
10.5
Total Project Costs
10.80
100.0
0.00
0.0
5.15
100.0
Total Financing Required
10.80
100.0
0.00
0.0
5.15
100.0
2. Key policy and institutional reforms supported by the project:
Key Policy Reforms to be Sought
Policy reforms sought under the project emphasize the ongoing decentralization process in the country by
ensuring full local participation in decision-making in the execution of project activities. This will be
achieved, in part, by locating the Project Management Unit in Calarasi county rather than Bucharest, and
will help build local institutional capacity. The project will seek to create the enabling policy environment
for commitment to environment-friendly agricultural practices on the part of both the local as well as
national governments.
The project will support MAFF and MWEP to develop and implement a Code for Good Agricultural
practices in Calarasi Judet, which will include the implementation of land use management plan in the
Boianu-Sticleanu Polder. APCP will thus strive to mainstream environmental considerations into
Romania's agriculture sector and much complementarity is envisaged between the agricultural projects
supported by the Competitive Grant Scheme (CGS) under ASSP and sustainable environmental aspects
promoted by APCP. The project will also support the National Authority for Ecological Products to
develop the supporting institutional arrangements for promotion of organic farming.
Institutional Reform to be Sought
National Level: The project would pilot the establishment of inter-sectoral cooperation between MWEP
and MAF in the implementation of the project. The institutional arrangements agreed between MWEP,
MAFF and MOPF included setting up the Project Preparation Unit in Calarasi with the support of the local
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government. Furthermore, the two ministries have signed a memorandum of understanding on the sharing
of financial management and procurement staff between the APCP (under MWEP) and ASSP (under
MAFF). Also, an Organizing Commission and Support Group has been established to follow up on the
Nitrates Directive Governmental Decision (No. 964, dated 13 October, 2000) covering approval of the
"Action plan for the protection of waters against nitrate pollution from agricultural sources", prepared with
French assistance under the EU Twinning Program. This document is based on the regulations described in
the EU Nitrate Directive (91/676/EEC) and meets the Government's obligations in introducing the
provisions of the nitrates directive into the Romanian legislation. However, this document is only the first
step in creating the legal framework for water and soil protection and should be followed, inter alia, by the
preparation of the Code of Good Agricultural Practices. The project would strengthen the national policy
and regulatory capacity of the country for meeting its international obligations under the Bucharest
Convention, Odessa Ministerial Declaration on the Protection of the Black Sea, and Danube River
Protection Convention and would assist Romania in implementing the EU Directives as part of the EU
accession process.
Local Level: The project would seek the commitment and full participation of the local institutions in the
implementation of the project. In order to build local ownership and capacity, and to be able to effectively
monitor and evaluate the impact of project activities, implementation of project activities will be entrusted
to relevant local institutions, including: the Calarasi Directorate General for Agriculture (DGAIA), and its
extension (OJCA) and soils (OJSPA) agencies, the Calarasi office of the EPI and Public Health
Directorate; the extension consulting agency, ANCA; the ICCPT Research Institute for Cereals and
Industrial Crops, Fundulea; and the Danube Delta National Research Institute. Training will be provided
to the staff of these entities in implementing relevant project activities that will go a long way in building
local capacity to reduce nutrient discharge pollution from agricultural production.
3. Benefits and target population:
The proposed project is the first instance where the Government of Romania is mainstreaming
environmental considerations in agricultural practices. The synergy of such an approach will bring about
greater benefits globally, regionally and locally vis-à-vis independent, discrete agricultural and
environmental projects.
Internationally, benefits will accrue through: (i) a continued reduction in the discharge of nutrients into
Danube River and Black Sea and the accompanying improvements in the local and Black Sea water
quality; (ii) broad-based stakeholder participation that will increase public awareness and demand-driven
approaches for protecting the Black Sea;(iii) improving habitat for migratory birds and a variety of
endangered species; and (iv) sequestering carbon in the grasslands, cropland and forests.
Nationally, the country will benefit: (i) through improvements in quality of ground and surface waters; (ii)
better maintenance of productive ecosystems and critical natural habitats in the freshwater, estuarine and
near shore waters along the Black Sea coast; (iii) improved agricultural productivity through better
agricultural practices; (iv) progress towards compliance with EU Directives; and (v) increased capacity
building of local institutions such as EPI and PHD.
Locally: (i) at the farm level, additional income from effective use of organic waste (manure as fertilizer),
crop rotations, organic produce, and improved livestock grazing practices; (ii) in the crop sector,
outcomes will include improved production efficiency through low input use and better farm management;
(iii) in the health sector, there will be improvements in health and sanitation as there will be an
improvement in the drinking water and general hygiene of the villages; and (iv) through terrestrial and
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aquatic habitat enhancement, increased populations of birds and fish species of local economic and social
importance.
Target Population: (i) All fourty-eight comunas of the Calarasi Judet comprising about 410,000 ha of
arable land and a total population of 332,000 in 94,000 households will benefit from the project. (ii)
Seven comunas comprising about 90,000 ha with 70,000 ha of arable land with a total rural pupulation is
26,700 in 10,540 households will specifically participate in the manure management sub project. (iii)
The proposed project is a demonstration activity that may be replicated in other similar areas of Romania
and riparian countries of the Black Sea. Thus, the project will have a larger geographic impact. The
project will also benefit a large population beyond the seven communas.
4. Institutional and implementation arrangements:
Project Steering Committee: A Project Steering Committee (PSC) has replaced the Inter-Ministerial
Working Group. It comprises representatives from MWEP, MAFF, Ministry of Public Finance (MOPF)
and Ministry of Public Administration (MOPA). The Minister, MWEP, will chair the Steering
Committee. The Project Manager will be the ex-officio Secretary of the PSC. The committee will be
responsible for providing project oversight advice and assistance in resolving issues associated with
project implementation, and ensure commitment of the concerned Ministries.
Project Co-ordination Committee (PCC) at Judet-level: Co-ordination at the Judet-level of Calarasi
would be assured by a Project Co-ordination Committee chaired by the President of the County Council,
with the Prefect as vice-chair. The PCC membership includes the Vice-President of the Calarasi County
Council, the County Council Architect, the Directors of DGAIA, EPI, Public Health Directorate, OJCA,
OJSPA and OCAOTA, an NGO representative, two private farmers and the Mayors of the seven
Comunas. The Project Manager will be the ex-officio Secretary of the PCC. The PCC will provide
technical oversight and ensure co-operation and co-ordination of the implementing institutions, together
with local commitment to long term sustainability. The PCC would reinforce co-ordination at the local
level.
Project Management Unit (PMU): MWEP would establish a Project Management Unit (PMU), located
at DGA­Calarasi to handle procurement; all financial matters relating to disbursements, maintenance of
project accounts and financial monitoring; monitoring as well as evaluation of all project activities. The
PMU would comprise Project Manager, Agricultural Technical Specialist (who would also handle project
monitoring/evaluation), Financial Management Specialist, Accountant, Secretary/Translator and Driver.
Procurement services would be provided to the PMU by the ASSP, Project Management Unit. The PMU
will work closely with the PMU in the ASSP. Given the commonality of activities under the two projects,
there will be substantial cost sharing between the two PMUs. The Procurement Specialist under the
ASSP will also serve as the procurement specialist for the proposed project, while the Financial
Management Specialist for the APCP will also serve the ASSP.
Financial Management: The Project Preparation Unit (PPU) is fully operational and managing the
preparatory grant associated with this project. Once the project preparation is completed, the PPU will
become the Project Management Unit (PMU) and will be responsible for the project's overall financial
management system. All procurement, financial management and disbursement procedures for the Project
will be in accordance with the relevant Bank guidelines. The Government will maintain throughout the
project life a project financial management system (FMS) in a format acceptable to the Bank.
The project will initially use traditional disbursement procedures (direct payments, reimbursements and
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replenishments to the Special Account with full documentation or SOEs) and produce PMRs for reporting
and management information only. The FM system will be re-assessed in end-2003 for eligibility for
PMR-based disbursements. Following successful certification, the Borrower, jointly with the Bank, may
consider shifting to PMR-based disbursements. (Details in Working Paper 13).
A detailed description of the financial management and accounting system that will be used for the project
is presented in Annex 6.
Project Monitoring and Evaluation: A well-designed monitoring and evaluation system will be critical
for ensuring the project's timely and successful implementation, and enhancing its impact by a systematic
analysis of lessons learned and their effective dissemination. Project monitoring and evaluation would be
the responsibility of the PMU. Monitoring will be based on the baseline survey undertaken during
preparation phase of the project. Extensive data by comunas and villages has been collected and the
Public Health Directorate and the EPI-Calarasi have provided baseline data for soil and water quality
levels. The Project Preparation Unit has developed performance indicators based on Annex 1. The PMU
would annually monitor and evaluate project performance through conducting beneficiary surveys. The
results of M&E activities will be fed back into the implementation process as improved practices.
The PMU will design a simple Management Information System for M&E, reporting formats for each
component, including targeted annual performance objectives and monitoring indicators using Annex 1
details as the basis. These indicators include evaluating the project's impact by monitoring soil and water
quality. Quarterly reports will cover progress in physical implementation, the use of project funds and
project impact. The Quarterly reports will be consolidated by the PMU into half-yearly progress reports
to be submitted through MWEP to the Bank within two months of the end of each six-month reporting
period. These half-yearly progress reports will also include an implementation plan and work program
for the next six months following the reporting period. The format of reports will be agreed with the
Bank.
A mid-term review will be carried out to assess overall progress. Lessons learned, with recommendations
for any improvements, would be used in restructuring the project, if necessary.
D. Project Rationale
1. Project alternatives considered and reasons for rejection:
Alternatives considered were: (i) limit project activities to manure management in most problematic areas
along the Danube River; (ii) work primarily on wetland restoration along the lower Danube river; and (iii)
merge the proposed project with the Agricultural Support Services Project.
With regard to (i) it was concluded that simply targeting manure management would be inadequate and
ineffective in realizing the project objectives. Manure management should be part of a more comprehensive
package that involves a variety of measures to control nutrient run-off to the Black Sea. Thus, to make a
larger impact, the project has included other activities in addition to the storage, application and disposal of
manure, including, inter alia, crop rotation, organic farming, conservation tillage systems, riparian buffer
strips, soil testing, application of fertilizers, monitoring of water quality.
Option (ii) was rejected in favor of a more comprehensive approach in one compact, high priority area
along the Danube river through a demonstration project involving a combination of environment-friendly
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agricultural practices as well as wetland management that could be replicated in other similar areas in
Romania as well as riparian countries of the Black Sea. Thus, the project preparation team selected
Calarasi region, in the southern part of Romania, along the lower Danube, which would include the
Boianu-Sticleanu and Calarasi-Raul polders. The area is characterized by unsustainable agricultural
practices, including inappropriate crop and nutrient management, storage and application of mineral
fertilizers, pesticides, manure and domestic waste and destruction of the former floodplain areas. There is
a lack of septic tanks and waste water treatment plants in most of the rural settlements. This aspect will be
tackled by the SAPARD project to be funded by the EU and which will have a program in the Calarasi
Judet. Groundwater pollution with nitrogen and phosphorous from agricultural practices in this region is
high and in excess of health standards which has strong ramifications on human health with the incidence of
Acute Diarreheal Diseases exceeding average rates for the rest of the country. The Boianu­Sticleanu and
Calarasi-Raul polders were chosen as this formerly reclaimed floodplain, if rehabilitated, could serve as a
biological filtration mechanism that could result in significant nutrient load reductions to the Black Sea.
As regards (iii), initially it was decided to merge the proposed project with the ASSP that was under
preparation at the time. However, at the time of inception of APCP, the ASSP was far ahead with
preparation and ready for appraisal, and to add APCP at that late juncture would have delayed the
processing of ASSP. Moreover, merging the two projects would have increased the size of the ASSP and
in view of the institutional weakness in Romania, lack of expertise with main-streaming environmental
considerations into agriculture, and lack of coordination between the MWEP and MAFF, to merge the two
projects would increase the risk of ineffective project implementation. It was agreed that APCP activities
would be more effective if it had a more focused approach and targeted one select area than the entire
country (as in the case of ASSP). However, given the overall commonality of objectives and activities,
close working arrangements and synergies have been ensured between the two projects.
2. Major related projects financed by the Bank and/or other development agencies (completed,
ongoing and planned).
Latest Supervision
Sector Issue
Project
(PSR) Ratings
(Bank-financed projects only)

Implementation
Development
Bank-financed
Progress (IP)
Objective (DO)
Environmentally Sustainable
RomaniaAgricultural Support
S
S
Agricultural Practices, Protection of the Services Project (ASSP)
Black Sea/Biodiversity
Forst Biodiversity and Natural
S
S
Resources Management Project
Cultural Heritage Project
S
S
Danube Delta Biodiversity
S
S
Project
Bulgaria Wetlands Restoration
Project
Georgia Agricultural Research,
S
S
Extension and Training (ARET)
Project
Municipal Infrastructure
S
S
Rehabilitation--MIRP
Ukraine Danube Delta
S
S
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Biodiversity Project
Poland Rural Environmental
S
S
Protection Project
Other development agencies
EU
SAPARD
USAID
Black Sea-Danube Project
(Hungary, Slovakia and
Romania)
IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory)
3. Lessons learned and reflected in the project design:
Key lessons learned from rural environmental and agricultural operations in the regions and reflected in the
Proposed Project include:
l
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;
l
environment-friendly agricultural activities should yield tangible benefits for key stakeholders,
specifically local communities, in order to ensure adoption;
l
effective monitoring and evaluation mechanisms need to be developed and applied to measure
project impact and feed lessons leant into project design;
l
decentralized responsibility for financial and project management (e.g., as in the Romania Danube
Delta Biodiversity Project) builds local ownership and sustainability of project activities;
counterpart training and specialized support for project related activities such as procurement,
disbursement, supervision, financial management, etc., is a must; and
l
dissemination of information about the benefits of improved environmental management is critical
to the widespread adoption of new technologies and practices.
The project has incorporated these experiences and built on them specifically by: (i) addressing the links
between socio-economic issues and environment-friendly agricultural practices, (ii) building both the local
and national capacity for reduction of nutrient loads into the groundwater and surface water including the
Black Sea; and (iii) ensuring a participatory and transparent approach to project preparation and
implementation.
4. Indications of borrower and recipient commitment and ownership:
The Ministry of Waters and Environmental Protection and the Ministry of Agriculture, Food and Forests
are very enthusiastic about the project and lending full support to it. An Inter-Ministerial Commission
(IMC) was established at the start of project preparation under the leadership of MWEP and MAFF that
provided excellent support with project preparation. The IMC has now been replaced by a Project
Steering Committee (PSC) and comprises representatives from MWEP, MAFF, MOPF and MOPA to
provide overall guidance and support during project implementation. The government is developing the
legal framework to address EU Nitrates Directive as well as the Code of Good Agricultural Practices
which will not only contribute to the reduction the nutrient loads into the Danube River and Black Sea but
also assist in EU accession.
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The local officials in the Calarasi Judet, including the President of the County council, vice-president, and
Prefect, as well as all seven mayors of the project comunas are fully committed to the project. The
DGAIA, Calarasi has provided office space for the PPU that will become the PMU. The President of the
Calarasi County Council has expressed commitment to providing financial support for waste management
systems at the comuna/village level and the County Council has confirmed that it will co-finance (25%
contribution) the costs of constructing village-level manure facilities in all comunas. The farmers, farmer
associations, NGOs, private sector, and other relevant beneficiaries are keen to participate in the project
and have confirmed their contribution to project preparation and implementation in cash and/or kind
(time, labor, etc.)
5. Value added of Bank and Global support in this project:
The principal value added of GEF support for the Project comes from providing additional funds to address
trans-boundary water problems in the Black Sea. GEF funds will help reduce the barriers to farmers
adopting environment-friendly agricultural practices and allow the Government to consider scaling-up the
program. Without GEF support to coordinate these activities, Romania might undertake a series of small
activities in different parts of the country to address the issues and lack a mechanism to coordinate the
financing, approaches and geographical targeting of activities. GEF funds will help to achieve high level
policy commitment to the need for environmentally sustainable agricultural practices while supporting
"on-the-ground" investments. GEF funds will also leverage Bank funds from ASSP to mainstream
environmental concerns in nation-wide agricultural projects. The GEF may also leverage funds from
EU-funded SAPARD projects as well as funds from donors by stimulating a program to coordinate
activities, increase coverage and generate a larger impact. In this regard, USAID has expressed its support
for the project and is making US$600,000 available through parallel financing for activities under
components 1 and 2. It is also considering financing a pilot animal waste management unit in 2001 to
enable the County Council to jump start the project in one comuna. The GEF has already added value by
supporting the Romania and Ukraine Danube Delta Biodiversity Conservation Projects, Poland Rural
Environmental Project, Georgia Agricultural Research, Extension and Training (ARET) Project, in
addition to the Black Sea Partnership Program, Danube River Basin Environment Program and Danube
Pollution Reduction Program. Given their international scope, the GEF and the Bank can provide funds to
cover the incremental costs of replicating such activities within Romania and in other countries in the
Region.
E. Summary Project Analysis (Detailed assessments are in the project file, see Annex 8)
1. Economic (see Annex 4):
Cost benefit
NPV=US$ million; ERR = % (see Annex 4)
Cost effectiveness
Incremental Cost
Other (specify)
Realization of the global environmental benefits of the project in the medium to longer term will require
GEF support, since there will no quick pay off for the local communities and the Government is only able
to provide the bare minimum of assistance for agricultural activities. While the improved,
environment-friendly practices to be introduced by the project will provide the basis for a sustainable
agriculture in the long run, in the short-run the impact on the economy will be small. International
experience indicates that it takes time for the benefits to work through to local communities.
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Indeed, ex-ante quantification of benefits of investments (rates of return) for the promotion of
environment-friendly agricultural practices is usually not undertaken, as it is difficult, if not impossible, to
quantify precisely the outcome of these activities. Predicting and quantifying economic costs and benefits
ex-ante of such activities is problematic because the outcomes of the technology innovation or
dissemination are not defined at the time of project design, but instead evolve with the project through a
process of priority setting and consumer demand for the technologies. The lack of reliable technical and
economic data on different variables, including farmer adoption rates, and difficulties in linking cause
(costs) and effect (outcomes) is also a problem. Whatever parameters are included would be questionable.
Even large surveys give spurious results. Social and environmental benefits of projects are particularly
difficult to express in monetary terms. Economic returns from such an exercise are therefore difficult to
predict.
However, ex-post analysis of such activities over the past two decades shows that in most countries there
are high returns to these investments. In Romania, with the new private farmers starting at a low
production and productivity base, the returns to the transfer of technology and information are expected to
be high. The range of benefits likely to be realized by testing alternative environment-friendly, sustainable
technologies and methods, and promoting their replication and adaptation, would be diverse. New farming
methods could lower production costs, increase output efficiency; produce more profitable crops and
livestock; improve product quality; reduce capital expenditures on machinery, irrigation equipment and
buildings; reduce crop and livestock losses; make better use of available land, labor and other resources;
and improve environmental sustainability of production systems. Macrobenefits resulting from the project
would be increased fishery, tourism and better human health.
The incremental cost analysis for the GEF-funded component is described in Annex 4. The analysis
assumes a baseline under which the nutrient pollution caused by agricultural practices are not addressed,
resulting in continued discharge of nutrients into the Black Sea. The Project would introduce and
demonstrate more sustainable and environmentally benign technologies and practices at an estimated
incremental cost of US$5.15 million. Without the project, some progress will be made through ongoing
government efforts including the Bank funded projects but there would be little if any reduction in nutrient
discharge into the Danube and the Black Sea. Hence the proposed project will provide incremental support
for nutrient reduction in the Black Sea.
The completion of the activities is expected to have a demonstration effect that would in time allow the
replication and net benefits. This would have a significant positive benefit in terms of the efficiency with
which Government expenditures on agriculture are used. It would allow more effective use of Government
funds that will also facilitate EU-accession.

2. Financial (see Annex 4 and Annex 5):

NPV=US$ million; FRR = % (see Annex 4)
Experience in other countries indicates that improved manure storage, conservation tillage, crop rotations,
and other similar practices, can generate positive financial rates of return for the farmer from his or her
share of investment in the long run. In one of the studies conducted at Iowa State University in the USA,
researchers have concluded that reduced tillage systems resulted in highest financial returns to farmers in
comparison with the conventional tillage (mouldboard plough) system. Reduced tillage systems resulted in
net profit of $40.5/ha more compared to conventional tillage system (Hamlett et. al., 1983) Hamlett, C.A.,
T.S. Colvin, and A. Musselman. 1983. Economic potential of conservation tillage in Iowa. Transactions of
the American Society of Agricultural Engineers 26(3): 719-727.
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The main financial benefit from the improved management of livestock waste will be realized in the
recycling of the nutrients in crop production. Application of 40 tons/ha of stored livestock waste on the
typical rotation of maize, wheat and soya is estimated to give a saving on purchase of inorganic fertilizer
equivalent of about 30% on input costs. Furthermore, the need for credit to pre-finance the crop is lower.
The use of organic material will feature in the development of organic farming and will have a beneficial
impact on longer-term soil fertility. Again, it will take time for these benefits to work through to the farm
households.
The project will evaluate the financial implications of the farm environmental improvements during
implementation of the pilot project. Using experience gained from the pilot interventions, the project will
assess the conditions in Romania under which positive financial rates of return can be established and what
the returns are likely to be. The project will assess the conditions in Romania under which these positive
FRRs can be established and what are to be the likely rates of return.

Fiscal Impact:
The total government financing during the project implementation period is estimated at US$0.70 million in
the form of staff salaries and operating costs and US$1.16 million in taxes and VAT payments. This is
approximately 1% of the combined annual budgets of MAFF and MWEP. Since this contribution is spread
over a five-year period, the annual strain on the government's resources and thus the fiscal impact should
be minimal. The Ministry of Public Finance and MWEP have confirmed that the Romanian Government's
direct contribution cited above could be met from the budget. Experience with counterpart funds and
sustainability in GEF-funded project has been good, as evidenced by the Danube Delta and Forest
Biodiversity projects.
3. Technical:
The project will establish a functioning model of good practices to reduce nutrient run-off from agricultural
practices and build national capacity to replicate these practices in other parts of Romania. Skills will be
acquired through international experience from a combination of study tours, workshops, networking,
training, establishing linkages among various relevant institutions.
Some twelve improved agricultural practices have been selected for field evaluation and demonstration.
These practices include: conservation tillage, crop rotations with legumes, shelterbelts/windbreaks, hedge
rows, narrow vegetative barriers, filter strips, riparian buffers, nutrient management, wellhead protection,
agro-forestry, tree planting, organic farming and grazing management. These practices were selected as
they met certain key criteria including, inter alia, cost effectiveness/low input, time proven readily
transferable technology, good buffering effects for improved water quality and no adverse environmental
effects. These are "tried and tested" effective solutions, applicable to the problem of nutrient discharge to
Romania's surface and groundwater.
Wherever possible, the project will work with the extension staff of the Agricultural Support Services
Project. The project will also aim to strengthen the legislative and regulatory framework to promote project
activities and a public awareness program will be developed to disseminate the benefits of environmentally
sustainable agricultural practices.
4. Institutional:
4.1 Executing agencies:
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Ministry of Waters and Environmental Protection has been designated by the Ministry of Public Finance as
the line Ministry with overall responsibility of project implementation.
4.2 Project management:
A Project Management Unit (PMU), will be established at DGA­Calarasi to co-ordinate implementation
activities by the different local and national agencies, including the field agencies of MAF and MWEP as
well as to handle procurement, all financial matters relating to disbursements, maintenance of project
accounts and financial monitoring, the monitoring and evaluation of all project activities. A Project
Steering Committee (PSC) comprising representatives from MWEP, MAFF, MOPF and Ministry of Local
Public Administration has been established for providing project oversight, advice and assistance in
resolving issues associated with project implementation. The Minister of MWEP will co-chair the Steering
Committee. The institutional arrangements agreed between MWEP, MAFF, MOPF and the local
government would establish the necessary collaborative requirements for project implementation. Such
arrangements would also help build capacity to promote and monitor sustainable agricultural practices and
improve Romania's agricultural sector. (See Annex 2, Attachment 1 for Organizational Chart).
In order to decentralize implementation to the local level, build local ownership and capacity, and to be able
to effectively monitor and evaluate the impact of project activities, implementation of project activities will
be entrusted to relevant local institutions, including: the Calarasi DGAIA and its extension (OJCA) and
soils (OJSPA) agencies, the Calarasi office of the EPI and Public Health Directorate; the extension
consulting agency, ANCA; the ICCPT Research Institute for Cereals and Industrial Crops, Fundulea; and
the Danube Delta National Research Institute. Training will be provided to the staff of these entities in
implementing relevant project activities that will go a long way in building local capacity to reduce nutrient
discharge pollution from agricultural production. Co-ordination at the Judet-level would be assured by a
Project Co-ordination Committee (PCC) chaired by the President of the County Council with the Prefect as
vice-chair. Members would include the Vice-President of the Calarasi County Council, the County Council
Architect, the Directors of DGAIA, EPA, Public Health Directorate, OJCA, OJSPA and OCAOTA, an
NGO representative, two private farmers and the Mayors of the seven Comunas, all of who are fully
committed to the project.
4.3 Procurement issues:
A detailed procurement plan has been prepared by the PPU. The ASSP PMU's Procurement Specialist,
who is well trained and experienced in Bank procurement, will also serve the proposed APCP. Bidding
documents for the first year's procurement actions are under preparation and are expected to be ready by
negotiations. The total value of contracts subject to prior review is estimated at the equivalent of US$1.55
million, or 30% of the value of the grant. Given the relatively small size of many of the contracts and the
repetitive nature of the main civil works contracts (manure storage facilities) this level of prior review is
considered acceptable.
4.4 Financial management issues:
The banking system in Romania is perceived as potentially sensitive to liquidity problems. Despite a
certain degree of restructuring of the banking sector, the systemic risk is still significant; however, by
opening the project Special Account at the RCB, the largest Romanian bank, the banking risk is kept at an
acceptable level. Also, inflation and USD/ROL exchange rate evolution are problematic in Romania. In
2000, inflation was 40%, while the devaluation was 42%. The Government has estimated 25% inflation
for 2001.
To avoid the risk of possible nepotism and corruption in the PMU, (i) all payment orders will be signed
jointly by the PMU administrator and financial management specialist; (ii) the beneficiaries' representatives
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will certify the works done, goods delivered and services rendered before the payments are made by the
PMU; and (iii) the responsibilities of the individual PMU staff will be clearly indicated in the financial
management manual.
Regarding possible delays in payments to suppliers: (i) due to the signatures required on the Government
contributions; and (ii) inadequate counterpart funds in the Government project accounts, the experience on
existing projects indicates that this risk to a large extent is contained by adequate supervision by the Bank
and has not been a problem so far. Ministry of Public Finance (MOPF) has clearly promised that the
counterpart funds for this project will be provided in the national budget starting FY02.
Most of the beneficiaries' contributions to project activities are expected to be in kind. This may lead to
disagreements in terms of the equivalent amount (in kind contribution quantified in monetary terms). The
risk will be mitigated by agreeing a priori the quantification mechanism, based on the local conditions. If a
beneficiary contributes in cash, its cash contribution will be deposited in a bank account and a bank
statement proving this will be attached to the agreement. When the contribution is in kind, the financing
agreement will detail the mechanism for quantifying the in-kind contribution in monetary terms, and will
mention the nature of the in-kind contribution. These measures should keep the associated risks at a
moderate level.
5. Environmental:
Environmental Category: B (Partial Assessment)
5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including
consultation and disclosure) and the significant issues and their treatment emerging from this analysis.
The major environmental objective of the project is to reduce the amount of nutrients leaching into the
groundwater or flowing directly into the river systems and then into the Black Sea. Through integrated
land and water use management with full co-operation of the beneficiaries. The project has been designed
and will be implemented in a participatory manner so as to have the maximum environmental (and
financial) impact on the area. The project thus expected to be invironmentally beneficial. No major
adverse impacts are expected.
As part of component 1, the project will provide for 4000 manure storage bunkers at individual farmer's
homesteads to store manure from their domestic animals and 14 village-level manure storage facilities. The
environmental concerns under this component may include leakage of the manure from the village-level
storage facilities (if construction is not made according to specifications), inappropriate manure spreading
in the fields and improper cleaning of the individual manure storage tanks and large manure platforms. An
environmental assessment has been done and mitigating measures proposed to address these environmental
issues are given in Annex 11. Also, an environmental management plan has been developed to ensure that
activities undertaken under this component will be closely monitored with regular inspections by the local
environmental agency(ies).
5.2 What are the main features of the EMP and are they adequate?
The main feature of the EMP is to implement a comprehensive soil and water quality monitoring program
in the project area to evaluate the effects of different project activities on nutrient reduction to surface
runoff and groundwater sources. Standardized soil and water quality monitoring efforts have been
developed to provide decision-makers and the public officials with reliable data on problems and trends in
the water quality of drinking water supplies and the Danube River and its tributaries. These efforts are
hampered by the lack of adequate laboratory and monitoring equipment and chemicals for the operation and
maintenance of soil and water quality monitoring laboratories of the Environmental Protection Inspectorate
(EPI) and the Public Health Directorate (PHD) of Calarasi Judet. The project will provide additional
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laboratory equipment, chemicals and supplies, and training to build capacity of the EPI. The project would
fund a comprehensive soil and water quality monitoring plan for collecting data on drinking water wells,
piezometers, drainage and irrigation canals that drain nutrient loads into the Danube river and Black Sea.
These data will be analyzed and made available to all stakeholders in a usable form. The project will
develop and evaluate a watershed scale computer simulation model to predict and quantify the effects of
agricultural activities in the watershed on the reduction of nutrients moving to the Danube River. The
monitoring plan will be implemented by the PMU with technical assistance and equipment provided by the
EPI and PHD.
5.3 For Category A and B projects, timeline and status of EA:
Date of receipt of final draft:


An environmental assessment of the various project activities has been made and mitigation measures
proposed to address various possible environmental impacts are addressed in EMP shown in Annex 11.
This project will have positive effects on the environment. The EMP addresses various environmental
issues (like surface and groundwater quality, soil quality, and bio-diversity), potential environmental
impacts, and proposed actions to be taken during the implementation phase of the EMP. The EMP has
been designed to monitor the soil and water quality of project activities so that immediate mitigation
measures can be taken if a potential for an environmental damage occurs. All the actions of the EMP will
be implemented in the in the first year of the project.
5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EA
report on the environmental impacts and proposed environment management plan? Describe mechanisms
of consultation that were used and which groups were consulted?

Various stakeholders of the project include individual small farmers, owners of large farms, NGOs,
Mayors and Vice Mayors of 14 comunas, and officials of Directorate General of Agriculture, Departments
of Land Reclamation and Irrigation, EPI, PHD, and international agencies like the USAID. These
stakeholders were individually consulted and project functions were discussed with them. All of the
stakeholders were consulted on the ongoing soil and water quality problems in the region and the quality of
Danube River. All the stakeholders agreed that water of Danube River is polluted with nutrients and
interventions proposed in this project would be very good for the region. Some of the stakeholders have
agreed to participate in project activities by allowing their drinking water wells to be sampled for water
quality. The EMP has been discussed at length with the officials of EPI and PHD, and Mayors of the
comunas. It is proposed that after the approval of this project but before the start of implementation, The
EMP would be further shared in village level group meetings to create awareness and seek further input.
5.5 What mechanisms have been established to monitor and evaluate the impact of the project on the
environment? Do the indicators reflect the objectives and results of the EMP?
A comprehensive soil and water quality monitoring program has been developed for implementation.
Project activities will be intensively monitored to determine the impact of the relevant activities on soil and
water quality. This project will install and monitor 20 piezometers to determine the flow of nitrogen and
phosphorus along the groundwater gradient (underground water flow lines) in the aquifer that eventually is
draining into the Danube River. Also, the project will monitor water quality of three man-made and one
natural drain in the lower part of the polder area which are draining nutrients directly into the Danube
River. Data from piezometers and open drainage canals will help the project in quantifying the reduction in
nutrient loads to the Danube River. At three sites in the project area, the project will evaluate the effects of
nutrient management, tillage, and crop rotations on soil and water quality. Also, limited water monitoring
equipment will be installed to monitor the positive effects of buffer strips, tree planting, and establishment
of agro-forestry on water quality. Environmental evaluation indicators have been reflected in the EMP
which meet the objectives and goals of this project.
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International Waterways
OP/BP 7.50 does not apply to this project as the project will not involve the use of water or potential water
pollution on international waters (para 2 of the O.P. 7.50). On the contrary the project is designed to
decrease existing levels of pollution in the Danube and the Black Sea: The project will be funded under the
GEF Strategic Partnership for the Danube and Black Sea Basin that aims at reducing the pollution level in
these international water bodies. The Partnership has been developed on the basis of the Bucharest
Convention for the Protection of the Black Sea against Pollution (1992) and the Danube River Protection
Convention (1994), that have been signed and ratified by riparian countries. The interventions supported
under the Partnership, including agricultural nutrient pollution control, follow directly from the Strategic
Action Plans (SAP) prepared and endorsed by the Black Sea and Danube Commissions which carry out
these Conventions. The Commissions and 17 riparian countries which participated at the Black
Sea/Danube Stocktaking meeting on June, 29-30, 2000 in Istanbul endorsed the Partnership and the three
model projects, including the Romania Agricultural Pollution Control Project. Supported by this
endorsement by the Black Sea riparian countries, the May 2001 GEF Council approved the Partnership.
6. Social:
6.1 Summarize key social issues relevant to the project objectives, and specify the project's social
development outcomes.
The agricultural land in the project area is divided into farms, fields and plots and farm residences are
outside of fields, usually within villages. These are the areas for residing, storing food for human
consumption as well as animal feed, and for stabling animals ­ poultry, pigs, cattle, sheep, horses. The area
is characterized by a high concentration of animals, limited knowledge of the practices for efficient storage,
management and application of plant nutrients and a very high concentration of domestic waste disposed
near the water wells and watercourses. This has had a serious impact on human health as general pollution
of groundwater with nitrites, nitrates and bacteria has steadily increased with 15 infants (under 6 months)
diagnosed and hospitalized in 1997 with acute intoxication with nitrites. The incidence of Acute Diarrheal
Diseases exceed national levels in the project area. (Details in Working Paper 1).
At the national level, Governmental restructuring and reduction of subsidies are influencing socio-economic
conditions to a large degree, including real wage declines and unemployment. At the level of the project
demonstration site, key rural development issues are unsustainable use of resources, unemployment, lack of
knowledge and lack of access to credit to support environment-friendly agricultural practices. Poor
economic conditions and their implications for social welfare result in a lack of interest in environmental
protection on the part of stakeholders. The project will result in economic opportunities for key
stakeholders that are linked to the objectives of the project.
A baseline survey at the comuna and village level has been conducted and is available. The results of the
survey have been used to fine-tune the project. The survey will be undertaken annually to monitor progress
of the project.
6.2 Participatory Approach: How are key stakeholders participating in the project?
During project preparation, key stakeholders, individual farmers, farmer organizations, NGOs and local
officials have been fully consulted in the development of detailed project components. A baseline survey
was undertaken to identify the relevant needs and priorities of the stakeholders and information obtained
from the participating groups have been instrumental in the development of the project.
6.3 How does the project involve consultations or collaboration with NGOs or other civil society
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organizations?
Project preparatory activities have been undertaken with full involvement and participation of government
counterparts, various research institutions, NGOs and relevant civil society organizations. Extensive
consultative meetings were held during project preparation and the input of these groups have helped in the
outcome of project design. The ownership of land is still in transition. However, there is no resettlement
issue in the project area.
6.4 What institutional arrangements have been provided to ensure the project achieves its social
development outcomes?
The Project Management Unit will ensure full participation of beneficiaries in the implementation of the
project. The PMU will annually monitor and evaluate project progress and measure the impact of project
activities against the socio-economic baseline survey undertaken during project preparation. The PMU will
undertake a systematic analysis of the impact and achievements of project activities and the results of the
M&E activities will be fed back into the implementation process as improved practices.
6.5 How will the project monitor performance in terms of social development outcomes?
Monitoring will be based on the baseline survey undertaken during preparation phase of the project.
Extensive data from comunas and villages has been collected and the Project Preparation Unit has
developed performance indicators based on Annex 1. A well-designed monitoring and evaluation system
that will include social indicators is being developed by the PMU which will annually monitor and evaluate
project performance through conducting beneficiary surveys. The results of M&E activities will be fed
back into the implementation process as improved practices. A mid-term review will be carried out to
assess overall progress. Lessons learned, with recommendations for any improvements, would be used in
restructuring the project, if necessary.

7. Safeguard Policies:
7.1 Do any of the following safeguard policies apply to the project?
Policy
Applicability
Environmental Assessment (OP 4.01, BP 4.01, GP 4.01)
Yes
No
Natural habitats (OP 4.04, BP 4.04, GP 4.04)
Yes
No
Forestry (OP 4.36, GP 4.36)
Yes
No
Pest Management (OP 4.09)
Yes
No
Cultural Property (OPN 11.03)
Yes
No
Indigenous Peoples (OD 4.20)
Yes
No
Involuntary Resettlement (OD 4.30)
Yes
No
Safety of Dams (OP 4.37, BP 4.37)
Yes
No
Projects in International Waters (OP 7.50, BP 7.50, GP 7.50)
Yes
No
Projects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)
Yes
No
7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies.
The Project has several activities that will result in positive impacts on the environment. The only caution
would be to ensure that 14 large manure storage facilities at the village level are designed properly and
constructed according to environmental guidelines of the Environmental Protection Inspectorate (EPI).
Project has put a safeguard that design of these large manure storage facilities must be prepared under the
supervision of County Council engineering staff and EPI will ensure that the constructions of manure
storage facilities have met environmental guidelines on stopping manure leakage to surface or groundwater
sources. These facilities will not be built close to any surface water body. Also, manure storage facilities
will be well covered and fenced off for to ensure safety. Another safeguard is that the project will
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implement an extensive soil and water monitoring program to ensure that seepage of manure to ground
water does not occur (see Section 5.3).
F. Sustainability and Risks
1. Sustainability:
To promote institutional sustainability, the PMU will be located in the Calarasi branch of the General
Directorate for Agriculture (DGAIA) bringing project management to the local level. The MOPF, MWEP
and MAFF at the national level as well as the local government agencies, communa councils and farming
communities are in full support of the project. Both the DGAIA and the Environmental Protection
Inspectorate, which have strong institutional capacity and a proven track record at the county level, will
have lead responsibility for project implementation at the field level and will thus ensure sustainability of
the project. The project will provide assistance for capacity building in policy and regulatory matters
which will enable MWEP and MAFF to establish a sound basis for overall management of the project. To
ensure social sustainability, the project has emphasized the early involvement of key stakeholders in
project preparation and implementation, including policy makers, local public officials and community
leaders, farmers, their associations, NGOs. Such involvement will create a sense of ownership and
contribute to social sustainability. In addition, the project would benefit the farmers by promoting
cost-saving yield-enhancing agricultural practices as well organic farming which has the potential to open
new markets for the local farmers. Such project interventions will ensure financial sustainability.
Environmental Sustainability is the key element to project design.
2. Critical Risks (reflecting the failure of critical assumptions found in the fourth column of Annex 1):
Risk
Risk Rating
Risk Mitigation Measure
From Outputs to Objective
Low/inadequate commitment from
N
National public awareness program targeted at
national and local governments and
key audience, including policy makers to
institutes for project activities leading to
mobilize support for improving water quality.
increased pollution of the Danube River
Participatory approach in developing plans and
and Black Sea and failure of national and
staff training
local authorities to avert further damage
Implementing agencies may be unable to
N
Project will provide training and career
attract and retain qualified staff.
development benefits and work towards
establishing loyalty to this new professional
field.
Lack of fiscal resources may preclude
M
Project benefits will demonstrate efficacy and
replication of project activities in other
need for replication and garner government
similar sites of Romania.
support; exploration of possible donors.
Farmers don't have access to credit,
S
Grants of at least 70% would be provided for
machinery and inputs that would enable
construction of solid waste manure stores. Cost
them to practice environmentally-friendly
sharing in kind by farmers will be encouraged,
agricultural practices.
thus reducing the need for cash contributions.
From Components to Outputs
Farmers are less willing to accept
N
Careful validation of proposed
improved, environment-friendly
environment-friendly practices and staff and
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agricultural practices.
farmer training; on-location advice; and
advocacy of immediate and long-term benefits
of project activities. Public awareness campaign
to disseminate information on the benefits and
results of environment-friendly agricultural
practices.
Land ownership issues for poulder
M
The land has been leased for long term. The
restoration
GOR is requiring the lessee to follow good
agricultural practices in the area as
recommended by APCP.
New private sources of funding do not
M
Ensure donor participation in project design.
come forward
Beneficiaries cannot develop new manure
S
Early designs and pilots will be implemented to
handling and storage systems that are
develop low-cost manure handling and storage
financially attractive.
systems that are financially attractive to
farmers. The local government has agreed to
co-share in the costs of platform constructions.
Project incentives are not sufficient to
M
Project will undertake a broad public awareness
motivate farmers to participate
campaign to underscore project benefits on both
an economic level (higher incomes) and
improved health (improved drinking water
supply and sanitation).
Overall Risk Rating
M
Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N(Negligible or Low Risk)
3. Possible Controversial Aspects:
None.
G. Main GrantConditions
1. Effectiveness Condition
l
PMU be fully staffed.
l
Appointment of auditors.
Conditions for Negotiations
l
Clarification of the legal status in the Calarasi-Raul Polder and Memorandum of Understanding
between the Delta Institute / MWEP - Agency of State Domains / MAFF for restoration works
in the abandoned rice polder.
l
Signing of the addenda to the leasing agreements in the Boianu-Sticleanu polder; the addenda
stipulates that the lessee would follow good agricultural practices in the area as recommended
by APCP.
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2. Other [classify according to covenant types used in the Legal Agreements.]
MWEP will maintain PMU with resources, composition and under terms of reference satisfactory to
Bank until project completion
Any changes to composition of PSC, PCC and PMU only with agreement of the Bank.
H. Readiness for Implementation
1. a) The engineering design documents for the first year's activities are complete and ready for the start
of project implementation.
1. b) Not applicable.
2. The procurement documents for the first year's activities are complete and ready for the start of
project implementation.
3. The Project Implementation Plan has been appraised and found to be realistic and of satisfactory
quality.
4. The following items are lacking and are discussed under loan conditions (Section G):
I. Compliance with Bank Policies
1. This project complies with all applicable Bank policies.
2. The following exceptions to Bank policies are recommended for approval. The project complies with
all other applicable Bank policies.
Jitendra P. Srivastava
Kevin M. Cleaver
Andrew N. Vorkink
Team Leader
Sector Manager/Director
Country Manager/Director
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Annex 1: Project Design Summary
ROMANIA: AGRICULTURAL POLLUTION CONTROL PROJECT
\
Key Performance
Hierarchy of Objectives
Indicators
Monitoring & Evaluation
Critical Assumptions
Sector-related CAS Goal:
Sector Indicators:
Sector/ country reports:
(from Goal to Bank Mission)
Protection and sustainable
Gradual Improvements in soil Agricultural statistics
Improved agricultural
management of natural
and water quality
Periodic data collection on
practices contribute to
resource and the environment
soil and water quality of
national economy through an
major water bodies, by EPI
increase in average incomes,
and environmental
enhancement.
Assist Romania in
Capacity to address
National reports
EU membership is also likely
implementing the National
environmental degradation of
to increase average incomes
Environment Strategy Plan
the Black Sea.
Assist process of integration
Progress towards meeting
Periodic EU assessments
Policy standards adopted meet
with the European Union
environmental compliance
EU requirements
targets with EU legislation.
Strengthen the capacity of
Environmental Protection
Directorate (EPI) and Public
Health Directorate (PHD) in
Calarasi.
GEF Operational Program:
The Project's objective of
Increased awareness of threats Agricultural Statistics
Government's ability to
reducing nutrient discharge to to pollution of trans-boundary Regional Surveys and
mobilize resources to reduce
Danube river and Black Sea is water bodies from nutrients
collection of periodic data on threats to water bodies and
consistent with OP No. 8,
from animal waste and
water quality from major
build institutional capacity for
Water body based operational agricultural chemicals
water bodies in the project
future environmental
Program which focuses
area by EPI & PHD
challenges
mainly on threatened water
bodies and the most important
trans-boundary threats to their
ecosystems. Project goals are
also consistent with OP No. 9,
Integrated Land and Water
Multiple Focal Area
Regional Surveys
Sustained effort to raise the
public awareness and demand
for protection and
improvement to
environmental factors
Global Objective:
Outcome / Impact
Project reports:
(from Objective to Goal)
Indicators:
To increase significantly the
Increased awareness of
Agricultural statistics
Project-developed
use of environment-friendly
environmental issues in
Water quality data sets
interventions are replicated on
agricultural practices among agriculture among farmers
Social Assessment
a wide scale.
farmers' associations, family
within and outside proejct
farms and other eligible
area.
Economic and Financial
Adoption of improved
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farmers in the target project
Assessment
environmental policies by
area. The global
Increased area of adoption of
government to address
environmental goal is to
production and resource
Annual regional and national non-point agricultural
reduce, over the long-term,
conservation technologies.
reports
pollution control.
the discharge of nutrients and
other agricultural pollutants
High satisfaction rate among Interviews with farmer groups
into the Danube River and
participating farmers.
and local governments
Black Sea through integrated
land and water management
of the Calarasi region and
ecologically sustainable use of
natural resources in two
agricultural polders.
Sixty Five percent (65%) of
participating farmers
implementing
environmentally-friendly
agricultural practices.
Output from each
Output Indicators:
Project reports:
(from Outputs to Objective)
Component:
1. Calarasi Judet
Promotion of new
Quarterly reports from APCP Technologies respond to
ASSP, CGS, sub-projects with environment-friendly
and CGS (ASSP)
farmer's needs.
environment-friendly focus in agricultural practices
the Judet.
Packages developed for
High level of participation (all Quarterly reports
manure management
communas, all villages and
65% of individual farmers) in
target areas that have built
manure stores etc.
A well documented pilot
High level of participation (all Quarterly reports
Markets and prices provide
completed and evaluated for
communas, all villages and 65
sufficient incentives to
replication
% of individual farmers) in
producers and processors.
target areas where nutrient
management plans have been
developed and other
environment-friendly
practices
evaluated/demonstrated.
Sustainable management
Use of environment-friendly
Quarterly reports
Continued land use based on
adopted in Boianu-Sticleanu
agricultural practices.
EPI monitoring reports and
plans developed. Other
polder.
Area planted to agro-forestry. periodic collection of water
government programs do not
Management plan adopted for quality data.
conflict with project goals.
Iezer-Calarasi reserve.
Improved water quality in
drainage canals.
Good monitoring system for
Better soil and water quality
Annual monitoring reports
Continued adequate support
water and soil quality
from EPA and Calarasi
from local and national
Department of Public Health
government continues for
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carrying out the components
2. National Policy and
Regulatory Capacity
Improved policy framework
Policy framework for
Government legislation
Continued support and
drafted for non-source
non-source pollution meets
enforcement of policy
pollution control
EU criteria.
Code of Good Agricultural
Adoption of code monitored
Quarterly reports
Provide resources to monitor
Practices adopted
by EPI
and regulate standards.
Strengthening of institution
Information system and
Agricultural statistics
for Organic farming
legislation ion place.
3. Public Awareness &
Replication:
Increased knowledge &
Public awareness
Social assessment sample
awareness of ways to reduce
Adoption of
surveys
nutrient pollution of water
environment-friendly
Quarterly reports
bodies in Calarasi Judet.
agricultural practices
Increased awareness of ways Public and farmers aware of
Social assessment sample
Allocation of resources
to reduce nutrient discharge
the potential to improve
surveys
from agriculture in other
income while protecting the
Judets.
environment.
Quarterly reports
Demands from other local
governments for replication
of project investments.
Increased Awareness and
Visits and awareness of
Quarterly reports
Farmers and leaders in other
demand for replication in the farmers, NGOs, and officials
countries become interested in
region.
of other countries of the
reducing non-point source
project in the Calarasi Judet
pollution from agriculture and
allocate resources to replicate
project activities.
4. Project Management
Continued support from the
Supervision Reports
Adequate availability of
Well-managed project.
Project Steering Committee
necessary institutional support
and Project Co-ordination
government agencies.
Committee
Project Components /
Inputs: (budget for each
Project reports:
(from Components to
Sub-components:
component)
Outputs)
1. Calarasi Judet
US$ 9.22 million
Matching grant for manure
US$ 5.20 million
Progress Reports (quarterly)
Local government support the
management practices
pilot initiative by contributing
resources.
Promotion of
US$2.47 million
Progress Reports (quarterly)
Project incentives are
environment-friendly
sufficient to motivate farmers
agricultural Practices
to participate in the project
Integrated management of
US$1.09 million
Progress Reports (quarterly)
Enforcement of land-use plan
Boianu-Sticleanu Polder and
ecological restoration of the
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Calarasi-Raul Polder.
Capacity to Monitor Soil and US$0.46 million
EPI and PHD annual reports Implementing agencies may
Water Quality and
of soil and water quality.
be unable to attract and retain
Environmental Requirements
Annual social assessment
qualified staff, inadequate
sample survey
laboratory facilities
2. National Level
US$ 0.27 million
Develop policy framework for US$0.09 million
Draft appropriate policies
Continued support and will
non-point source pollution.
for enforcing policy
Develop Code of Good
US$0.12 million
Draft of code
Agricultural Practices.
Promotion of organic farming US$0.06 million
Status Institutional
frame-work
3. Public Awareness &
Replication Strategy
(US$0.45 million
Public Awareness in Calarasi US$0.21 million
Annual social assessment
Timely availability of
Judet
sample survey
counterpart funds
Public awareness, and
US$0.17 million
Sample Survey
Continued support for
replication national level
implementing agency
Regional cooperation for
US$0.07 million
Progress Reports (quarterly)
Ability to interact with each
replication
other for mutual benefit.
4. Project Management,
Progress Reports (quarterly)
Unit (US$0.86 million)
Project Administration
US$0.65 million
Progress Reports (quarterly)
Ability to maintain staff,
offices and support from local
governments and
communities
Project
US$0.21 million
Progress Reports (quarterly)
Monitoring/Evaluation
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Annex 2: Detailed Project Description
ROMANIA: AGRICULTURAL POLLUTION CONTROL PROJECT
By Component:
Project Component 1 - US$9.22 million
Activities in Calarasi Judet:
In the Calarasi Judet, the project will support activities at two levels: first at the Judet level, where funds
from the ASSP Competitive Grant Scheme will be leveraged; second, in seven comunas around Lake
Galatui. The respective project areas and activities will be as follows:
(a)
All fourty-eight comunas of the Calarasi Judet comprising about 410,000 ha of arable land and a
total population of 332,000 in 94,000 households. The APCP will provide support for Competitive Grant
Scheme technology adaptation and extension interventions on environment-friendly practices, thereby
leveraging additional funds from the ASSP for the Calarasi Judet.
(b)
Seven comunas Al Odobescu, Ciocanesti, Cuza Voda, Gradistea, Independenta, Vilcelele, and
Vlad Tepes comprising about 90,000 ha with 70,000 ha of arable land. Total rural population is 26,700 in
10,540 households. The southern part of this area borders the lower Danube and includes the
Boianu-Sticleanu Polder (approximately 23,000 ha). Formerly a floodplain area, it has been drained and
transformed into an agricultural polder in the sixties and now contains large areas of cultivated land, small
areas of floodplain forests, degraded lands and the Iezer Calarasi water body. The Iezer Calarasi, with a
surface of 3,200 ha, is to be declared a nature reserve, being an important corridor for bird migration, most
of them listed on Bonn and Bern Conventions. Iezer Calarasi was also identified by WWF studies under the
Danube Pollution Reduction Program (Project RO 67), the NEAP, and recent studies coordinated by
MWEP, as a high-priority area to be rehabilitated in the Lower Danube River Basin. The Calarasi-Raul
Polder (total area of about 15,000 ha of which 3000 ha has been cultivated for rice) adjoins the
Boianu-Sticleanu Polder to the east. The project will provide for investments in the following activities in
the seven comunas:
l
the provision of grants on a cost-sharing basis for the installation of improved manure storage
facilities and equipment for manure collection and application;
l
the testing and demonstration of environment-friendly agricultural practices;
l
the promotion of ecologically sustainable land use in the Boianu-Sticleanu Polder, including a
conservation management plan for the Iezer Calarasi water body, as well as the ecological
restoration of part of the Calarasi-Raul Polder; and
l
the strengthening of capacity in Calarasi Judet for monitoring soil and water quality and
environmental requirements.
Manure Management Practices' (US$5.20 m). This sub-component will provide provide grants for the
installation of improved manure storage facilities at village and household level, and equipment for manure
collection and application in the seven comunas. Grants on a cost-sharing basis of about 70% of total costs
would be provided for the construction of village-level solid waste manure facilities and small storage
bunkers with effluent collection facilities at the household level, as well as supply of equipment for manure
handling and spreading. Villages and households wishing to participate in the investment program would
be selected against agreed criteria and cost-sharing arrangements. Priority would be given to vulnerable
groups, widows, female farmers and poorer households (see Operational Manual ­ Working Paper 16).
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Fourteen of the twenty-one villages in the project area would be expected to invest in manure storage and
handling facilities with costs shared between the project (grant), comuna and village households (cash and
in-kind) and the Calarasi County, which would contribute some 25% (in cash) of the costs of manure store
construction. County Council engineering staff would collaborate on design of the village-level manure
store and would work with the Environmental Protection Inspectorate (EPI) to see that the constructions
met environmental guidelines on stopping manure leakage to surface or groundwater sources. Four
piezometers (two upstream and two downstream) will be installed around each of the fourteen manure
storage platforms to monitor the quality of groundwater, and to see if any seepage of manure to
groundwater occurs. Community training and awareness on good practices for waste collection and
manure management, including composting, testing, and field application, would be provided.
Manure Storage System: The key elements of the storage system to be provided by the project and the
support to be provided in the form of village-level stores and household storage bunkers, are set out in the
Operational Manual for the component ­ Working Paper 16. With regard to the Village-level Manure
Storage Facilities, the calculated capacity for a typical village is for 3200 tonnes of material after 4
months Consultation with the mayors indicated that they would have preferred 6 months of storage. The
additional one month of storage at households partly addresses this concern. Construction of the larger
store would add 30% to the costs and would not seem to be justified.. With a capability of storage at the
household for at least one month, the effective storage period is 5 months. The objective should be to empty
the platform by the end of autumn. The length of time that is needed to hold the material can be put to good
effect in the stabilisation of the waste. The recommended facilities for the village-level store are detailed in
the feasibility study and designs ­ Working Papers 6 & 7.
With respect to the household store/bunker, the waste quantities arising at the average household have
been used to calculate nominal capacity of household agricultural waste stores. A simple open fronted
store with concrete base and 1.2 m tall walls would be sufficient for most households with a drainage
channel connecting to a covered below ground tank of 500 litres capacity. A separate small capacity
container (about 90 litres) would be provided for the collection of recyclable and non-recyclable household
wastes.
Manure Handling and Application System: The project will support a manure handling and application
system comprising: (i) waste collection/delivery to village-level facility; (ii) provision of equipment to
facilitate handling at the village-level facility ­ loader, shredder for maize stalks; (iii) management of waste
to stimulate breakdown and composting; (iv) provision of spreaders for field spreading of rotted material;
(v) provision for handling effluents.
Selection Criteria: Criteria agreed with County Council and Comunas for selecting (a) comuna/villages in
the village-level manure storage and handling and (b) households for the construction of homestead manure
storage bunkers, are summarized in the Project Implementation Plan and Operational Manual for the
manure storage and handling system (Working Paper 16). Following approval in principle of a Comuna's
application for assistance, the Comuna would sign a preliminary agreement with the PMU covering
covering the provision of assistance for the manure handling system (platform, household bunker and
manure handling and spreading equipment); agro-forestry on comuna land and introduction of better
management practices for communal grazing lands. Furthermore, the comuna/village council would
commit to working with farmer and family associations on the adoption of environment-friendly
agricultural practices on privately-owned land. Subsequently, once the design of the storage facility and
terms and conditions of the assistance had been agreed, a grant agreement would be signed with the PMU
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setting-out the terms and conditions of the provision of GEF funding including the cost-sharing
arrangements between GEF, the County Council, the comuna and the beneficiary households.
Households completing an application for materials to construct homestead manure storage bunkers, would
be ranked against a number of criteria (Operational Manual, Annex 3) including, inter alia: number of
livestock, family situation, and homestead location/layout and consequent risk of polluting groundwater.
The system of weighting applied to these criteria favors the vulnerable groups, widows, female farmers and
poorer households, as well as those most likely to be contributing to nutrient discharge into the
groundwater.
The project would also provide the few, large private dairy and pig units with a grant of up to about one
third of the cost of installing solid-based or liquid-based waste handling systems. The amount of the grant
would be based on the commercial size of the unit and its capacity to make the necessary investments to
protect the groundwater from significant source of nutrient discharge. Implementation procedures and
pro-forma for both the comuna/village level units and the larger, private livestock units are set out in the
PIP and Operational Manual.
Investment program: The proposed investment program is given below.
Project Activity
Pre-Project
PY1
PY2
PY3
PY4
PY5
Total
Communa-level
waste platforms
(number)
1
1
4
4
4
14
Handling and
Application
Equipment
1
1
4
4
4
14
(number sets)
Manure storage
bunkers at
household level
250
250
1000
1250
1250
4000
A pilot phase will be launched early in 2001, with USAID funding, for the construction of one
comuna/village storage facility and about 250 household-level bunkers. This single facility, as well as the
household bunkers, would be monitored for usage, management and recycling of nutrients to farmland.
This experience will be fed back into the design of facilities constructed during the project.
Promotion of Environment-friendly Agricultural Practices (US$2.47 m). This sub-component will
include adoption of agricultural practices that would maintain or increase profitability from crop
production while reducing non-point source pollution from agriculture. The proposed activities include: (a)
the promotion of environment-friendly agricultural practices; (b) agro-forestry; and (c) establishment of a
land use information system for monitoring evolution of land use patterns.
Environment-friendly Agricultural Practices: The project would provide for (i) demonstration of a
number of improved practices, and (ii) demonstration program of integrated crop and nutrient management,
including crop rotations and efficient application of organic and inorganic fertilizers based on soil tests.
Some twelve improved practices have been selected for field-testing and demonstration in the project area.
These include conservation tillage, shelterbelts/windbreaks, filter strips, wellhead protection, agro-forestry,
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grazing management, riparian buffers etc. Sites for field-testing and demonstration would be selected
against agreed criteria. A detailed program for the first two years has been prepared and sites identified
with the help of comunas' Mayors, while an indicative program has been prepared for project years' 3 ­ 5.
On the assumption that the project will start in January 2002, the following program is proposed for
2002/03:
l
Nutrient management including crop rotation, manure management, crop nutrient management
with soil testing, and with training program to be conducted for ANCA staff and farmers in
parallel with on-farm demonstrations;
l
Shrub Rows: Proposed for the Vlad Tepas communa with the "Total Chim. Commercial
Society"(Mrs Maria Dragomir, General Manager) as the practice stakeholder. The shrubs will be
established in the area between two existing tree windbreaks;
l
Narrow Vegetative Barriers: Propose in the same comuna and same general location as the
shrub rows. This will provide a good comparison of the practices and be a decision tool for area
farmers who observe performance of the practices. It will also enhance credibility of yield data
collected by the farmer;
l
Conservation Tillage: Initial demonstration program on the "Total Chim. Commercial Society"
farm at Vlad Tepes starting in spring of 2002; and
l
Tree planting & Riparian Buffer Strips: In the Boianu-Sticleanu Polder area.
Specialized equipment for conservation tillage would be placed with selected farmers/farmer associations/
NGOs/implementing agencies who would contract with the PMU to conduct a combination of
environment-friendly practices on their farms, as well as operating the machinery to conduct
demonstrations on other farms. The program would be designed by and carried out under the supervision
of an extension/research agency or consortium contracted to implement the sub-component under contract
to the PMU. The project would provide the equipment and operating costs to the implementing agency
together with the cost of inputs and materials, while the selected farmers would provide the necessary
tractors and non-specialized equipment.
The indicative testing/demonstration program for the full five years is as follows:
Practice
PY1
PY2
PY3
PY4
PY5
Nutrient management
Includes crop rotation, xxx
xxx
xxx
xxx
xxx
manure management, crop
nutrient management with
soil testing.
Conservation tillage
xxx
xxx
Shrub rows
xxx
xxx
Vegetative barriers
xxx
Riparian buffers
xxx
xxx
xxx
Reclamation old waste
xxx
platforms
Wellhead protection
xxx
Grazing management
xxx
Agro-Forestry Program: the agro-forestry program will include tree planting in the following locations:
(i) erosion-prone locations in the terrace area ­ such as along water courses where comuna-owned land has
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been bench-terraced; (ii) degraded areas in the Polder subject to water-logging; and (iii) windbreaks or
shelterbelts on privately-owned agricultural land. Areas of 1090 hectares in the Polder and 432 hectares of
comuna land in the terrace area have been identified as best suited for reforestation. The farmers, mayors,
NGO's and forestry experts recommend planting of following types of plants: acacia, hind cherry, honey
locust, white willow, rosacannia, ligustrum vuegone, fruit trees and fruit shrubs.
The tree planting in the terrace area would be organized by the Comuna Mayor's office with technical
supervision provided by the National Forestry Agency. The project would provide saplings and use of tree
planter, while the labor would be provided by the village households. The following tree planting program
(hectares) is proposed for the terrace area:
Comuna
PY1
PY2
PY3
PY4
PY5
Total
Al Odobescu
5
15
20
25
35
100
Ciocanesti
10
10
15
20
50
105
Cuza Voda
5
10
10
15
20
60
Gradistea
5
5
5
5
5
25
Independenta
7
10
15
20
25
77
Vilcelele
7
7
7
0
0
21
Vlad Tepes
5
10
10
15
0
40
Total
44
67
82
100
135
428
SC Total Chim
1
1
1
1
0
4
TOTAL
45
68
83
101
135
432
The above activities will result in reducing nutrient run-off into surface and ground-water, protecting the
long-term fertility of soils by maintaining organic matter levels, fostering soil biological activity, through
the use legumes and vegetables in the crop rotation schemes as well as effective recycling of organic
materials, including crop residues and livestock wastes. Use of these practices can be expected to raise
yields and reduce the need for purchased inputs.
Land use Information System: The project would provide for a PC-based GIS system to serve as a
database of mapped data and other monitoring data collected during the project. Either a GIS unit would
be established in the Calarasi Department of Agriculture, or the work would be sub-contracted to an
existing agency that has worked with satellite imagery.
Integrated Management of Boianu-Sticleanu Polder (US$0.83 m) and Ecological Restoration of the
Calarasi-Raul Polder (US$0.26 m): The project would develop and implement a comprehensive land use
management plan for the Boianu-Sticleanu polder comprising the following actions: (i) agro-forestry on
the degraded lands adjacent to the Iezer Calarasi and on unproductive riparian land; (ii) implementation of
the code for good agricultural practices on the neighbouring arable land; (iii) sustainable use of livestock
grazing lands; (iv) implementation of a conservation management plan for the proposed Iezer Calarasi
nature reserve; and (v) the project would also provide the costs of studies and ecological restoration of part
(about 3000 hectares) of the Calarasi-Raul polder (adjoining the Boianu-Sticleanu Polder to the east and
comprising a major portion of abandoned rice fields) to wetlands. The project interventions in the two
polders would be co-ordinated by the Danube Delta National Research Institute (DDNRI). The project
support to be provided for implementing the land use management plan will represent a pilot action plan for
a vulnerable area as required under the EU Nitrate Directive.
Agro-forestry: Some 1090 hectares of land have been identified (see Working Paper 4) as suitable for
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replanting with trees (primarily poplar and willow). These areas include low-lying areas subject to water
logging and/or poorer sandy soils, as well as canal banks. These lands are included in the areas leased out
for commercial farming and an application for changing the land-use designation has been prepared by the
PPU and agreed in principle with MWEP and MAFF. A Governmental Decision is to be prepared by June
30 confirming the change in land use. The project will subcontract with the National Forestry Agency, or
other organization, for the tree planting and subsequent management. The project would provide the
saplings and planting equipment while the contracted agency would provide the labor. The program will be
as follows:
Area
PY1
PY2
PY3
PY4
PY5
Total
Mircea Voda
10
15
40
40
45
150
Ciocanesti
10
50
150
250
380
840
Gradistea
10
15
20
25
30
100
Total
30
80
210
315
455
1090
Implementation Code of Good Agricultural Practices on the Arable Land: The Director General,
Agency for State Domains, has agreed that a clause obligating the Commercial Companies leasing land in
the Boianu-Sticleanu Polder to follow a Code of Good Agricultural Practices and apply the APCP
provisions, would be added as an addendum to the leasing agreements.
In addition, the Agency of State Domains (ADS) will ensure that all future concession/privatization
contracts in the Danube flood plain include a clause stipulating that the lessee/owner has to follow the Code
of Good Agricultural Practices similar to that to be followed in the Boianu-Sticleanu Polder. The ADS will
also include a clause in future land privatization contracts that will ensure the owners/users follow
environment-friendly agricultural practices. The local EPIs' will issue the environmental permits after
privatization accordingly, and will monitor enforcement.
Sustainable Use of Pastures and Other Grazing Areas: The project would support the renovation and
improved grazing management of about 300 hectares of comuna pastures: Gradistea (150 ha) and Cuza
Voda (141 ha).
Conservation Management Plan for the Proposed Iezer-Calarasi Nature Reserve: MWEP has
approved terms of reference (PIP, Annex 6.3) for the preparation, in the first year of the project, of a
Conservation Management Plan for the proposed Iezer-Calarasi nature reserve. The costs of preparing the
plan and its implementation will be supported during the project. MWEP has confirmed that the area will
be designated a reserve by end-December 2001 and it does not involve any resettlement.
The costs of studies for restoration to wetlands of part of the Calarasi-Raul Polder (adjoining the
Boianu-Sticleanu Polder to the east and comprising a major portion of abandoned rice fields), as well as the
restoration program, would be met by the project. A note identifying the area for restoration, objectives
and terms of reference for the initial study to be financed by MWEP, are in Working Paper 8.
12.
Strengthening Capacity in Calarasi Judet (Environmental Protection Inspectorate - EPI - and
Public Health Directorate) to Monitor Soil and Water Quality and Environmental Impacts
(US$0.46m): The project would strengthen the capacity of EPI and Public Health Directorate in Calarasi to
monitor soil and water quality and environmental impacts of agriculture, as well as specific project actions
(manure management, tree planting, application of Code of Good Agricultural Practices etc.), on water and
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soil quality. The project would support the incremental costs of: (a) selecting and maintaining a set of water
and soil quality monitoring sites in the project area; (b) upgrading the equipment for monitoring of water
and soil quality; and (c) incremental operating expenses for monitoring activities. The two local agencies
will be responsible for monitoring the water and soil quality at selected sites, as well as the long-term
environmental benefits from reduced discharges of nutrients and microbial contaminants into surface and
groundwater.
13.
A comprehensive soil and water quality monitoring program has been developed for
implementation. Project activities will be intensively monitored to determine the impact of that particular
activity on soil and water quality. This project will install and monitor 20 piezometers to determine the flow
of nitrogen and phosphorus along the groundwater gradient (underground water flow lines) in the aquifer
that eventually is draining into the Danube River. Also, the project will monitor water quality of three
manmade and one natural drain in the lower part of the polder area which are draining nutrients directly
into the Danube River. Data from piezometers and open drainage canals will help the project in quantifying
the reduction in nutrient loads to the Danube River.
14.
With regard to the village-level manure storage units to be constructed under the project, four
piezometers (two upstream and two down stream) would be installed and sampled for nitrate and phosphate
concentrations in the shallow groundwater to determine if any leakage of manure to groundwater is taking
place at these sites. At three sites in the project area, project will evaluate the effects of nutrient
management, tillage, and crop rotations on soil and water quality. Also, limited water monitoring
equipment will be installed to monitor the positive effects of buffer strips, tree planting, and establishment
of agro-forestry on water quality. Environmental evaluation indicators have been reflected in the EMP
which meet the objectives and goals of this project.
Project Component 2 - US$0.27 million
Strengthening National Policy and Regulatory Capacity
This component would include support to the Ministry of Water and Environmental Protection
(MWFEP) and Ministry of Agriculture, Food and Forests (MAFF) for supporting work on: (i)
application of the Nitrates Directive in Romanian agriculture; (ii) preparing a Code of Good
Agricultural Practices; and (iii) strengthening the capacity of the proposed National Agency for
Ecological Agriculture in its efforts to promote scientific organic farming and land use management.
The project will provide technical assistance and some material costs for the respective groups in
the two ministries.
Project Component 3 - US$ 0.45 million
Public Awareness and Replication Strategy
The project will support public awareness efforts: (i) at local (Calarasi judet) 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; (ii) at national level, to disseminate the
information concerning the benefits of the project activities and promote replication at national
level; (iii) at regional level, in the Black Sea Riparian countries to promote the pilot project as a
possible model for replication.
Local level - Calarasi Judet: The objectives of the public awareness campaign at local level are to
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familiarize the population and help induce the behavioural changes necessary to the success of the
project (use of household manure storage bunkers and village-level livestock waste stores,
respecting the environment-friendly agricultural practices, etc.) in the seven selected comunas and
support the replication of this component in Calarasi Judet. Additionally, the local activities will
serve as an information depository for the national and regional activities.
The project will develop a three-step approach to the public communication strategy and a layering of the
message so that the targeted audiences recognize the importance of agricultural pollution and
environment-friendly practices for the life of their communities, and all agencies involved as credible and
expert resources. The first step will be the preparation of the campaign, involving the identification and
recruiting of experts, preparation of materials, etc. The second step will be an informational campaign
aimed to raise the interest of the target groups, while the third step will reinforce and consolidate the
behaviors suggested and concentrate on replication efforts based on the results achieved. To maximize the
efficiency of the awareness efforts (acceptance by the local community), one or more local organizations
(i.e. NGO) will be selected through a competitive process to implement the communications strategy and an
action plan based on the guidelines provided
National level: A broad, nationwide public information campaign will be undertaken to disseminate
the benefits of proposed project activities. The efforts at national level will concentrate on
institutions and groups (Government agencies, national environmental or professional associations,
academia etc.) that may influence the replication of the project in other areas. Information will be
delivered (as a public service) through the public broadcasting institutions, including a regular
supply of information to the mass-media on the progress of the project. This approach will build a
general goodwill for the project and its benefits, and will raise the interest of potential future clients.
The demonstrations and on-farm trials in the project area will be used as a practical laboratory for
training agricultural extension and environmental personnel from elsewhere in Romania. Activities
will, in part, be selected for piloting based on their broader applicability to agriculture in the
Danube Plain and other regions of Romania.
Regional replication: The project would provide for the organization of regional workshops, field
trips, training, publication in international agriculture and environmental journals and other
activities to promote replication of project activities in other Black Sea riparian countries. The pilot
activity will aim to serve as a model to be replicated in countries such as Bulgaria, Ukraine,
Moldova, which will help contribute to significant reductions in the nutrient loads entering the
Danube River and Black Sea.
Project Component 4 - US$0.87 million
Project Management Unit (PMU)
The project would support a Project Management Unit (PMU) to be established in the DGAIA
offices, Calarasi The existing PPU, already established in the DGAIA offices, would be
transformed into the PMU. The PMU would comprise Project Manager, Agricultural Technical
Specialist (who would also handle project monitoring/evaluation), Financial Management
Specialist, Accountant, Secretary/Translator and Driver. Procurement services would be provided
to the PMU by the ASSP Project Management Unit located in the Ministry of Agriculture, Food
and Forests. The costs of the Procurement and Financial Management Specialists would be shared,
with the APCP supporting the costs of the Financial Specialist (who would be based in the ASSP,
PMU, Bucharest), while the ASSP would support the costs of the Procurement Specialist. These
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arrangements were agreed by the Ministers of Environment and Agriculture in a memorandum of
understanding signed May 8, 2001.
Funds would be provided to meet the salaries and operating costs of the PMU over the project
period as well as for hiring short-term consultants and/or local agencies to assist with engineering
design for the manure management component, supervision of each component, and project
monitoring/evaluation. The PMU would co-ordinate project implementation by the different
implementing agencies, and would be responsible for all procurement, financial management and
monitoring/evaluation matters.
Institutional Arrangements
1.
Project Steering Committee: Co-ordination at the national level would be ensured by a Project
Steering Committee. The Steering Committee has been established by the Minister, MWEP, and comprises
representatives from MWEP, MAFF, Ministry of Public Finance (MOPF) and Ministry of Public
Administration (MOPA). The Minister, MWEP, will chair the Steering Committee. The Project Manager is
the ex-officio Secretary of the PSC. The committee will be responsible for providing project oversight
advice and assistance in resolving issues associated with project implementation, and ensure commitment of
the concerned Ministries.
2.
Project Co-ordination Committee (PCC) at Judet-level: Co-ordination at the Calarasi
Judet-level would be assured by a Project Co-ordination Committee. The PCC will provide technical
oversight and ensure co-operation and co-ordination of the implementing institutions, together with local
commitment to long term sustainability. The PCC would reinforce co-ordination at the local level. The
PCC would be chaired by the President of the County Council with the Prefect as vice-chair and
membership including DGAIA, EPI, Public Health Authority, OJCA, OJSPA, OCAOTA, two private
farmers, NGO and the Mayors of the seven comunas. The Prefect would ensure co-ordination of local
government agencies, while the President of the County Council would ensure co-ordination of all comunas
participating in the project. The Project Manager will be the ex-officio Secretary of the PCC. The Project
Co-ordination Committee was established in November 2000.
3.
Project Administration: The existing Project Preparation Unit, with the changes described above,
will become the Project Management Unit with responsibility for assuring that GOR and World Bank
procedures are followed, for providing financial management and procurement services, for reporting on
project activities, for overall project monitoring against agreed performance indicators, and evaluation of
the project's impact on beneficiaries. At the national level, the Project Manager will report to the Minister
(or his designated representative), MWEP, which has been selected by the MOPF as the line ministry
responsible for the preparation and management of this project. At the Calarasi level, the Project Manager
will report to the President of the County Council and to the Prefect.
4.
The PMU would be responsible for overall monitoring of the progress with project implementation
and beneficiary-impact of the APCP. Responsibility for the technical monitoring of the impact on nutrient
load reduction would be the responsibility of the Environmental Protection Inspectorate and the Public
Health Directorate. A Management Information System would be established in the PMU prior to project
effectiveness.
5.
Project Implementation: The overall project implementation arrangements are summarised in the
organisation chart at Attachment 1.
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Attachment 1.
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Annex 3: Estimated Project Costs
ROMANIA: AGRICULTURAL POLLUTION CONTROL PROJECT
Local
Foreign
Total
Project Cost By Component
US $million
US $million
US $million
Manure Management Practices
4.07
0.68
4.75
Promotion of Environment-Friendly Agriculture Practices
1.40
0.91
2.31
Integrated management of Polders
0.92
0.02
0.94
Soil and Water Quality Monitoring
0.27
0.14
0.41
Strengthening National Policy and Regulatory Capacity
0.12
0.12
0.24
Public Awareness and Replication Strategy
0.35
0.03
0.38
Project Management Unit
0.65
0.13
0.78
Total Baseline Cost
7.78
2.03
9.81
Physical Contingencies
0.28
0.08
0.36
Price Contingencies
0.55
0.08
0.63
Total Project Costs
8.61
2.19
10.80
Total Financing Required
8.61
2.19
10.80
Local
Foreign
Total
Project Cost By Category
US $million
US $million
US $million
Goods
2.91
1.03
3.94
Works
2.57
0.02
2.59
Services
0.55
0.29
0.84
Training
0.14
0.14
0.28
Research and Extension (Grants)
0.67
0.67
1.34
Public Awareness Campaigns
0.33
0.02
0.35
Recurrent Costs
1.44
0.02
1.46
Total Project Costs
8.61
2.19
10.80
Total Financing Required
8.61
2.19
10.80
please disregard the footnote below.
1 Identifiable taxes and duties are 1.17 (US$m) and the total project cost, net of taxes, is 9.63 (US$m). Therefore, the project cost sharing ratio is 52.96% of
total project cost net of taxes.
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Annex 4
ROMANIA: AGRICULTURAL POLLUTION CONTROL PROJECT
Incremental Cost Analysis
Overview
The global environmental objectives of the GEF Alternative are to protect the quality of the Black
Sea by reducing the discharge of nutrients (nitrogen and phosphorous) and other agricultural
pollutants into the Danube River and Black Sea. The proposed project aims to significantly increase
the adoption of environmentally-friendly agricultural practices and promote ecologically sustainable
land use in a high priority floodplain area in the project site and thereby reduce pollution from
agricultural sources in Romania to the Danube River and Black Sea. Towards this, the project will:
(i) promote the adoption of environmentally-friendly agricultural practices by farmers' associations,
family farms and individual farmers in seven comunas of the Calarasi Judet (county); (ii) promote
integrated land and water use management in the Boianu-Sticleanu Polder; (iii) strengthen national
policy and local regulatory capacity; (iv) promote a broad public awareness campaign to
disseminate the benefits of project activities; and (v) promote regional collaboration. GEF funding
will thus remove institutional, financial and knowledge barriers, which currently act as disincentive
to the adoption of environmentally-friendly agricultural practices by farmers. The GEF Alternative
intends to achieve this at a total incremental cost of about US$5.15 million.
Context and Development Goals
During the past few decades, the Black Sea has suffered severe environmental damage, mainly due to
coastal erosion, eutrophication, insufficiently treated sewage, introduction of exotic species, and inadequate
resource management all of which led to a decline of its biological diversity, loss of habitat and long-term
ecological changes. There is general agreement that eutrophication, caused by an increase in nutrient flux
down the major rivers in the late 1960s when fertilizer and chemical use increased markedly as a result of
the "Green Revolution" and subsidization of these inputs, and poor management of animal waste, are the
most serious problems facing Danube River and the Black Sea over the medium- to long-term. The effect
of eutrophication on the northwestern shelf of the Black Sea is generally recognized as disastrous and is
primarily related to nutrient loads carried by Danube River.
Nutrient flow from the Danube River. Black Sea Environmental Program (BSEP) Studies
revealed that 58% of the total nitrogen and 66 % of the total phosphorous flowing in dissolved form
into the Black Sea come from the Danube basin. More than half of all nutrient loads into Danube
River originate from agriculture, about one fourth from private households and about 10 ­ 13 %
from industry. The most important pathways into the Danube basin for phosphorous are direct
discharges (33% of the total flow, predominantly from agriculture), erosion/runoff (31%, mainly
agriculture) and sewage treatment plant effluents (30%). Nitrogen loads come from: direct
discharges (35%), erosion/runoff and sewage treatment plant effluents in more or less equal shares,
again agriculture being the source for more than half the total nitrogen run-offs in many countries.
Nutrient flow from Romania. The Trans-boundary Diagnostic Analysis carried out on the basis of
a pollution source inventory for the BSEP reveals that Romania plays a particularly significant role
in the discharge of nutrients into the Black Sea, accounting for about 27% of the total discharge.
The other river basin countries (Bulgaria, Ukraine, Georgia, Russia and Turkey) together account
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for another 43% and the non-coastal countries (Austria, Belarus, Bosnia-Herzegovina, Croatia,
Czech Republic, Germany, former Yugoslavia, Hungary, Moldova, Slovakia and Slovenia) for the
remaining 30%.
Agriculture is the mainstay of the Romanian economy, primarily due to its abundant natural
resource base. Two-thirds of Romania's area is agricultural land. Not surprisingly therefore,
Romania is the biggest contributor of nutrients to the Black Sea as its entire territory drains into the
Black Sea. Total nutrient emissions in surface water in 1994 were about 284 ­ 306 kilo tons
nitrogen/year and 39 ­ 40 kilo tons phosphorous/year. About 44% of the total nitrogen input stems
from agriculture, while municipal waste water accounts for 11 ­ 12% and industry for 9 ­ 10 %. In
the case of phosphorous, the role of agriculture is even greater, accounting for about 58% of total
emissions, followed by industry with 20.6% and municipal waste water with 11.4%. Groundwater
pollution with nitrates and microbial organisms from agriculture has a major social significance
from the point of view of drinking water supply for rural settlements in Romania.
Between 1996-1999, forty-five cases of acute nitrate poisoning were reported in the proposed
project area (Calarasi Judet). In 1997, a number of infants were diagnosed and hospitalized with
acute nitrates poisoning. In fact, all cases of acute nitrate poisoning in 1997 in Romania were in the
Calarasi Judet. Between 1996 and 1999, 59 samples from public wells and microcentrales in
Calarasi were analyzed for quality. Of this, 45 samples (76.2%) exceeded bacteriological standards
and 47 samples (79%) exceeded acceptable levels of chemical content. Twenty samples (39.9%) of
the 45 samples that did not meet the maximum admitted number of bacteria, exceeded acceptable
levels for Streptococus Fecalis and and 29 samples for Fecalis Coliforms. Also, low levels of
sanitation and lack of hygiene are increasing transmission of enteric germs, leading to a large
number of diseases including Acute Diarrheic Disease (ADD).
Following the political and social upheaval caused by the transition to a market economy, and the
accompanying economic decline in the region, riparian countries have reduced the overall discharge
of nutrients into the Danube River and the Black Sea. Largely because of this, and also because of
the success of nutrient load reduction programs, particularly, in the upper Danube countries, there
has been partial recovery of coastal ecosystems. Nevertheless, the overall discharge of nutrients is
still higher than what it was in the 1960s. The economic downturn in the coastal countries is
temporary, and offers a window of opportunity for actions aimed at improving the marine
ecosystems and avoiding the return to the previous situation of chronic eutrophication.
Government Strategy. Romania has assumed its international obligations under the Bucharest
Convention, the Odessa Ministerial Declaration on the Protection of the Black Sea, Danube River
Protection Convention and is moving towards compliance with the European Union Directives. In
addition, as a member, Romania is also committed to the overall goals of the joint Danube-Black
Sea Working Party to take measures to reduce nutrient levels and hazardous substances to such
levels necessary to permit the Black Sea eco-system to recover to similar conditions as those
observed in the 1960s.
Reduction of nutrient run-off (nitrogen and phosphorous) into the Danube and Black Sea from
agriculture has been identified as a priority action under the National Environmental Action Plan
(NEAP) as well as the Black Sea and Danube River Basin Strategic Action Plans. Wetland
restoration along the Danube River has also been identified as one of the most effective ways to
reduce nutrient loads into the Danube and Black Sea and the project's selected site for promoting
ecologically sustainable land use, the Boianu-Sticleanu agricultural polder, is listed as a high
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priority area both in the NEAP and in the Danube River Pollution Reduction Program. In addition,
the project may also intervene in the Calarasi-Raul polder, should a decision be taken to restore the
polder. The Ministry of Waters and Environmental Protection (MWEP) is in the process of
harmonizing the environmental legislation with that of the EU, as a condition for accession, and in
this context is paying particular attention to the Nitrates Directive which is one of the most
important Directives under the EU accession process. On-farm environmental management is an
integral part of the Government's overall strategy for the agricultural sector, which is aimed at
creating an enabling environment to fully realize the sector's yet unfulfilled potential. In support of
the strategy, agricultural input and output prices are being liberalized as is the trade regime. Also,
about 80% of the arable land has been returned to previous owners and heirs.
Baseline Scenario
The baseline scenario includes activities that will promote Romania's agricultural sector without
GEF support. The Government's agricultural strategy and Romania's access to EU have significant
implications for the organization and management of an improved agricultural sector. Farmers and
processing industries in Romania are building capacity to enter and compete in EU markets and
must gain access to appropriate knowledge, skills and technologies. Only then will Romanian
agriculture be competitive and efficient. However, as few of the new owners have farming
experience, measures are included under the on-going Bank's Agricultural Support Services Project
to strengthen the infrastructure for the agricultural research, extension and training system and
make the entities delivering such services more responsive to the needs of private farmers, including
access to information and cost effective agricultural technologies and practices which, while
increasing productivity, promote conservation and sustainable use of the country's natural resource
base. This may encourage non-point source pollution from increased agricultural productivity in
Romania, contributing significant and excessive loads of nutrients into the Black Sea that may lead
to widespread eutrophication and the ecological damage and economic losses associated with this
process. The long-term implication will be continued degradation of a globally significant
international waterbody and its associated bio-diversity in the shared coastal and marine
environment of the Black Sea. The Baseline Scenario does not include an effective mechanism to
address this issue. The GEF Alternative would go beyond the Baseline Scenario by allowing the
project to establish a mechanism for coordinating the approach, funding and support of activities
designed to reduce non-point source pollution from agriculture.
8. Costs. The total cost of the project is US$10.80 million. The total expenditures under the
Baseline Scenario are estimated at US$5.70 million.
Global Environmental Objective
9.
The global environmental objective of the project is to promote the adoption of
environmentally-friendly on-farm agricultural practices to reduce nutrient loads entering the Black
Sea. The dissemination and outreach features of the project will contribute to its replicability. The
role of the GEF in this project is to reduce farmers' perceived risks in adopting
environmentally-friendly on-farm agricultural practices and remove barriers for their adoption. It
would demonstrate that farmers who adopt these measures are able to get the most beneficial use
out of their lands and minimize negative impacts on the environment while improving the health of
the Black Sea ecosystem. In turn, this should lead to a sustainable increase in economic activities
such as fishing and tourism and to a healthier and wealthier population. Finally, activities promoted
under the GEF Alternative will facilitate the sharing of experiences on the search for feasible and
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affordable solutions to deal with non-point source pollution from agriculture to international water
bodies.
10.
Scope. The GEF Alternative would provide the means (above and beyond the Baseline
Scenario) for meeting the proposed project's goals. Specifically, it will: (i) install improved manure
storage facilities and equipment for manure collection, storage and application; (ii) provide manure
spreaders/applicators for efficient and cost-effective use of manure on croplands, together with
judicious use of mineral fertilizers; (iii) conduct on-farm trials and demonstrations to promote the
use of improved sustainable agricultural practices, including reduced tillage, better chemical
management systems, terracing, contour farming and buffer strips for water quality benefits; (iv)
develop a specific land use mangement plan for the integrated management of the Boianu Sticleanu
polder; (v) strengthen national policy and regulatory capacity to address agricultural pollution
control; (vi) promote regional collaboration; and (vii) undertake a broad public awareness campaign
to dissemiante benefits of project activities.
11.
Costs. The total cost of the GEF Alternative is estimated at US$10.80 million detailed as
follows: (i) Component 1: Activities in the Calarasi Level -- US$9.22million; (ii) Component 2:
Strenghtening National Policy and Regulatory Capacity -- US$0.27 million; (iii) Component 3:
Public awareness and Replication Strategy -- US$0.45 million; (iii) Component 4: Project
Management Unit -- US$0.87 million.
Benefits
12. Domestic and International Benefits. The GEF Alternative would go beyond the Baseline
Scenario by allowing the project to promote environmentally friendly agricultural and rural
practices that will reduce non-point sources of pollution to the Black Sea as well as carbon
emissions into the atmosphere which has strong implications for global climate and human health.
Given the country's precarious budgetary situation, the government can ill-afford to spend scarce
funds as financial incentives to farmers to reduce nutrient loads into the Black Sea for regional and
global gains. GEF funds will allow additional investments in sustainable farm management
practices and manure storage etc. in the selected project area of Calarasi Judet that will have an
impact on the Black Sea and provide willing farmers with an sustainable alternate technologies.
Under the GEF Alternative, the promotion of improved sustainable agricultural practices and a
decrease of manure flushing into water systems will provide greater environmental benefits and
augment the demonstration potential of the exercise. It should also improve farm profitability. It
will promote a public awareness program to effectively explain the benefits of improved
environmental practices at farm level. It will also allow the development of a strategy for project
replication within Romania and internationally.
13. The proposed project is a demonstration activity in the southern part of Romania, along the
lower Danube River. The forty-eight comunas of the Calarasi Judet located in the southeastern part
of Romania have about 410,000 ha of arable land and a total population of 332,000 in 94,000
households. In the southern part of the Judet, the project will support activities for nutrient
reduction and monitoring in seven comunas Al Odobescu, Ciocanesti, Cuza Voda, Gradistea,
Independenta, Vilcelele, and Vlad Tepes comprising 21 villages, as well as in the Boianu-Sticleanu
and Calarasi-Raul polders bordering the lower Danube river. The Boianu-Sticleanu Polder
(approx. 23,000 ha) comprises a former floodplain area, drained and transformed into an
agricultural polder in the late sixties and now containing large areas of cultivated land, small areas
of floodplain forests, degraded lands and the Iezer Calarasi water-body. The Iezer Calarasi, with a
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surface of 3,200 ha, is to be declared a nature reserve, being an important corridor for bird
migration, most of them listed on Bonn and Bern Conventions.
14.
Through improved farming practices, annual saving of dissolved nutrients flowing into the
Black Sea is estimated at 20 kg/ha N and 2.5 kg/ha P. It is assumed that through improved
handling, half of the manure is prevented from being flushed into the river systems and hence into
the Black Sea. If after 10 years, 60% of the farmers in the project area adopted similar practices,
then the estimated annual saving of pollutants flowing into the Black Sea will be significant. Also it
is reasonable to assume that through the project's public awareness campaign, field visits and
workshops, even farmers from adjoining areas may adopt the environmentally friendly agricultural
practices, thus resultig in a larger impact under the project. More detailed assessment will be
undertaken in quantifying accrued benefits during project implementation.
Incremental Costs
15. The difference between the cost of the Baseline Scenario US$5.65 million and the cost of the
GEF Alternative US$10.80 million is US$5.15 million, which will be financed by GEF. This
amount represents the incremental cost of achieving the global environmental benefits of reduced
degradation of international waters.
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Annex 5: Financial Summary
ROMANIA: AGRICULTURAL POLLUTION CONTROL PROJECT
Years Ending
IMPLEMENTATION PERIOD
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Total Financing
Required
Project Costs
Investment Costs
0.5
2.3
2.2
1.9
1.5
0.6
0.0
Recurrent Costs
0.2
0.5
0.5
0.3
0.2
0.1
0.0
Total Project Costs
0.7
2.8
2.7
2.2
1.7
0.7
0.0
Total Financing
0.7
2.8
2.7
2.2
1.7
0.7
0.0
Financing
IBRD/IDA
0.5
1.3
1.2
1.0
0.7
0.5
0.0
Government
0.1
0.9
0.9
0.8
0.5
0.1
0.0
Central
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Provincial
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Co-financiers
0.0
0.0
0.0
0.0
0.0
0.0
0.0
User Fees/Beneficiaries
0.1
0.7
0.6
0.4
0.5
0.1
0.0
Others
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Total Project Financing
0.7
2.9
2.7
2.2
1.7
0.7
0.0
Main assumptions:
Note: Figures may differ slightly due to rounding.
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Annex 6: Procurement and Disbursement Arrangements
ROMANIA: AGRICULTURAL POLLUTION CONTROL PROJECT
Procurement
Procurement methods (Table A)
The procurement of goods and works would be conducted in accordance with the Bank's Guidelines for
Procurement under IBRD loans and IDA Credits, January 1995, revised January and August 1996,
September 1997 and January 1999. Consulting Services and training would be procured in accordance
with the Guidelines for Selection and Employment of Consultants by World bank Borrowers, January
1997, revised September 1997 and January 1999. The Bank's Standard Bidding Documents; Standard
Request for Proposal; etc., will be used. A General Procurement Notice (GPN) will be published in the
U.N Development Business in September 2001.
Responsibility
The current Project Preparation Unit (PPU) which will become the Project Management Unit (PMU), will
be responsible for procurement, and would recruit a local fulltime procurement specialist familiar with the
Bank's procurement requirements. It has been agreed with the Recipient that the procurement specialist,
currently working in the PMU for the Agricultural Suppport Services Project (ASSP), will spend 50% of
his time on this proposed project. The ASSP Procurement Specialist is experienced in Bank-financed
projects. In addition, the Manager of the proposed project also has substantial experience in the type of
procurement included in the APCP.
The PMU would collect and record information regarding procurement administration, and would send
quarterly reports based on these information to the Bank. These reports would indicate:
(i)
status of procurement;
(ii)
an updated procurement plan; and
(iii)
compliance with aggregate limits on specified procurement methods.
The PMU will set up a computerized procurement monitoring system both for tracking procurement actions
as well as to prepare periodic progress reports.
Training in procurement according to the bank policies and procedures would be provided during the
project launch workshop to the PMU and other project beneficiaries. The PMU director and the technical
staff of the PMU would also receive training in procurement, enabling them to back up the procurement
officer in his/her responsibilities of conducting and coordinating project procurement.
Procurement Arrangement
The project includes civil works for well head protection and manure management and structures for soil
and water monitoring, manure pits for private farms and communa manure platforms, scattered in terms of
location and time. Goods will include the following: vehicles; equipment ­ laboratory and field equipment
(computer equipment, Laechet AE for NO#, Centrifuger, Electronics Balance, Soil Sampler, Sampling
Pump), Tractors, Spreader, Auger, Tanker, Shredders, Bins and Plant Materials for demonstrations. There
- 47 -

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will also be several contracts for consultant services, individual consultants and training programs.
The thresholds by procurement arrangement for each category are summarized below. The allocation of
project costs by procurement arrangements are set out in Table A, the value of contracts for prior review in
Table B.
Civil Works
NCB: Works estimated to cost less than US$1.0 million per contract will be procured through National
Competitive Bidding (NCB), in accordance with paragraph 3.3 of the Bank Guidelines.
Minor Works: Civil Works estimated to cost less than US$90,000 each may be procured on the basis of
three written price quotations. The contract will be awarded to the lowest priced bidder that has the
necessary experience and financial resources to successfully complete the work.
Community Participation in Procurement. The following community-based procurement procedure will
apply for the construction of well-heads and household manure bunkers. This procedure will be applicable
for small projects estimated less than US$500 each:
l
an individual farmer submits an application to the PMU for analysis and approval;
l
the PMU approves the request and gives clearance to go to commune shops for comparing the prices;
choose the lowest one and to request an invoice;
l
the farmer submits the invoice to the PMU;
l
PMU compares the invoiced prices with the reference prices which the PMU will collect from the
project area shops and upgrade on a monthly basis;
l
if the prices are within the acceptable limits, PMU makes payments to the supplier directly;
l
the farmer goes to the shops with the invoice certified by PMU/commercial bank (where the PMU
opened the Special Account) that payment was made and receive the materials.
l
the farmer will be responsible for providing labor.
l
In order to ensure that farmers complete, make use of the provided materials and complete their works,
the PMU will approve only small groups of farmers for each comuna and will approve projects for the
next group of farmers only after the PMU engineer has certified that the farmers have completed the
works.
Goods and Equipment
Goods and equipment estimated to cost US$100,000 each or more may be procured on the basis of ICB.
Goods estimated to cost less than US100,000 each may be procured through International Shopping on the
basis of three written quotations from two different countries or through IAPSO in accordance with
procedures acceptable to the Bank. Small contracts for supplies and minor equipment estimated to cost
less than $50,000 each may be procured under National Shopping on the basis of three written price
quotations from local suppliers. The project contains technical services contracts each estimated to cost less
that $50,000, which will follow the National Shopping procedures.
Consultant Services and Training
Quality and Cost Based Selection (QCBS)
Consultants services estimated to cost US$200,000 or more will be procured through Quality and Cost
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based Selection (QCBS). These services will be advertised in Development Business, and in a national
newspaper for expression of interest,. and a shortlist will be drawn from responses gathered. For contracts
below $200,000, the short list may comprise of entirely qualified national consultants in accordance with
paragraph 2.7 of the Consultant Guidelines.
Least Cost selection (LCS)
The contracts for auditing services and biological and hydrological monitoring will be conducted following
the Least Cost Selection (LCS) method, in accordance with the provisions of para 3.6 of the Consultants
Guidelines.
Selection Based on Consultants Qualifications (CQ)
Contracts for consulting services, such as preparation of management plans, assistance for soil and water
monitoring, etc. estimated to cost less than $100,000 per contract may be procured using the selection
based on consultants qualifications (CQ), in accordance with provisions of para 3.7 of the Consultants
Guidelines.
Individual Consultants (IC)
Consultant services will be procured through Individual Consultant procedures in accordance with Part V
of the Consultant Guidelines. The assignments for individual consultants will be advertised when possible,
and selection will be made on the basis of comparison of qualifications and experience.
Training
For other training activities, a detailed training program will be prepared on a six-month basis and
submitted to the Bank for approval.
Incremental Operating Costs
The project will finance a portion of incremental operating costs. Incremental Operating Costs will be
procured on the basis of annual budgets to be agreed with the World Bank.
Table A: Project Costs by Procurement Arrangements
(US$ million equivalent)

1
Procurement Method




Expenditure Category
ICB

2
NCB
Other
N.B.F.
Total Cost
1. Works
0.00
2.31
0.09
0.13
2.53
(0.00)
(1.17)
(0.05)
(0.00)
(1.22)
2. Goods
0.69
0.00
1.01
0.21
1.91
(0.69)
(0.00)
(0.75)
(0.00)
(1.44)
3. Services
0.00
0.00
1.77
0.08
1.85
and Training
(0.00)
(0.00)
(1.24)
(0.00)
(1.24)
4. Community Participation
0.00
0.00
0.86
0.00
0.86
(0.00)
(0.00)
(0.64)
(0.00)
(0.64)
5. Research and Extension
0.00
0.00
0.33
1.00
1.33
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Grants
(0.00)
(0.00)
(0.33)
(0.00)
(0.33)
6. Recurrent Costs
0.00
0.00
0.28
2.03
2.31
(0.00)
(0.00)
(0.28)
(0.00)
(0.28)
Total
0.69
2.31
4.34
3.45
10.79
(0.69)
(1.17)
(3.29)
(0.00)
(5.15)
1/ Figures in parenthesis are the amounts to be financed by the Bank Grant. All costs include contingencies.
2/ - Works-Others: Includes three small works contract ($0.095million)
- Goods-Others: Includes three IS contract ($0.322million), NS contracts for goods ($0.551 million)
and five NS contracts for technical services ($0.137million);
- Comm. Participation - Others: Includes contracts for materials (0.864million) less than US$500 each.
CS-Others: Includes two QCBS contracts ($0.321million), two LCS contracts ($0.176million), CQ
contracts ($0.499million), contracts with individual consultants ($0.491million), and training
($0.283million).
- Grants- Others: Includes grants ($0.330million).
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Table A1: Consultant Selection Arrangements (optional)
(US$ million equivalent)
Selection Method
Consultant Services
Expenditure Category
QCBS
QBS
SFB
LCS
CQ
Other
N.B.F.
1
Total Cost
A. Firms
0.32
0.00
0.00
0.18
0.50
0.00
0.00
1.00
(0.22)
(0.00)
(0.00)
(0.13)
(0.35)
(0.00)
(0.00)
(0.70)
B. Individuals
0.00
0.00
0.00
0.00
0.00
0.49
0.00
0.49
(0.00)
(0.00)
(0.00)
(0.00)
(0.00)
(0.34)
(0.00)
(0.34)
Total
0.32
0.00
0.00
0.18
0.50
0.49
0.00
1.49
(0.22)
(0.00)
(0.00)
(0.13)
(0.35)
(0.34)
(0.00)
(1.04)
1\ Including contingencies
Note: QCBS = Quality- and Cost-Based Selection
QBS = Quality-based Selection
SFB = Selection under a Fixed Budget
LCS = Least-Cost Selection
CQ = Selection Based on Consultants' Qualifications
Other = Selection of individual consultants (per Section V of Consultants Guidelines),
Commercial Practices, etc.
N.B.F. = Not Bank-financed
Figures in parenthesis are the amounts to be financed by the Bank Grant.
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Prior review thresholds (Table B)
With respect to goods and work, prior review by the bank of procurement documentation will be carried
out for :
l
All ICB
l
First National Competitive Bidding (NCB) for works, and first Minor Works,
l
First IS and NS contracts (for goods and technical services)
With respect to consultant services and training, prior Bank review will be required for all Terms of
Reference, irrespective of contract value. For each contract estimated to cost US$200,000 or more, after
the technical proposal has been evaluated, the technical evaluation report will be submitted to the World
bank for its review prior to the opening of the priced proposals. For contracts estimated to cost
US$100,000 or more, the Bank will be notified of the results of the technical proposals. For contracts with
individual consultants estimated to cost US$25,000 or more, the qualifications, experience, terms of
reference, and terms of employment shall be furnished to the Bank for its review and approval prior to
contract signature. All other contracts will be subject to ex-post review by the Bank.
Table B: Thresholds for Procurement Methods and Prior Review 1
Contract Value
Contracts Subject to
Threshold
Procurement
Prior Review
Expenditure Category
(US$ thousands)
Method
(US$ millions)
1. Works
<1,000
NCB
0.200
<50
MW
0.033
2. Goods
>/=100
ICB
0.690
and Technical Services
<100
IS
0.070
<50
NS
0.030
<50
NS
0.035
3. Servicesincluding
>/=100
QCBS
0.321
Training
>25
LCS
0.119
CQ
-
Ind
0.080
Incremental Operating
N/A
Annual Budgets
-
Costs
5. Miscellaneous
6. Miscellaneous
Total value of contracts subject to prior review:
USD1.578 million
Overall Procurement Risk Assessment
High
Frequency of procurement supervision missions proposed: One every 6 months (includes special
procurement supervision for post-review/audits)
during the first year of implementation and then on an annual basis (includes special procurement supervision for post
review/audits).
Table B2: Thresholds for Procurement Methods and prior Review
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Section 1: Capacity of the Implementing Agency in Procurement and Technical Assistance
Requirements
· Additional needs to be assessed and Proc staff/consultants recruited on a need-basis as project
evolves. Meanwhile, the ASSP Procurement Specialist who is experienced in Bank-financed
projects will devote 50% of his time to APCP.
· Proc Workshop for PMU.
· An operational manual to be prepared
· Training of PMU staff as needed
2. Country Procurement Assessment Report or Country Procurement Strategy
3. Are the bidding
Paper
documents for the
Status: CPAR dated Auguest 1999
procurement actions
of the first year
ready by
negotiations? Yes.
Section 2: Training Information and development on Procurement
4. Estimated date of 5. Estimated date 6. Indicate if
7. Domestic
8. Domestic
Project Launch
of General
contracts are
Preference for
preference for
workshop: January Procurement Notice subject to
Goods: Yes
Consultant
2002
publication:
mandatory SPN in
Services: No
September 2001
Development
Business: No
9. Retroactive Financing: No
10. Advanced
procurement: No
11. Explain briefly the Procurement Monitoring System: Procurement implementation progress will be
monitored through progress reports and supervision missions. At least one supervision mission every
six months during the first year of implementation and then on an annual basis will include a
procurement specialist. She/he will be responsible for updating the procurement plan, and conducting
ex-post reviews. His/her findings will be included in the supervision reports for monitoring their
implementation.
12. Indicate the name of Procurement Staff as part of the Project Team:
Naushad A. Khan, Senior Procurement Specialist Division: ECSSD Ext: 32699
13. Explain briefly the expected role of the field office in Procurement:
The project officer assigned to this project would play an important role of monitoring the procurement
process adn also serve as an intermediary between the Headquarters and PMU.
_______________________________________________________________________________________________________________
1 Thresholds generally differ by country and project. Consult OD 11.04 "Review of Procurement
Documentation" and contact the Regional Procurement Adviser for guidance.
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Disbursement
Allocation of grant proceeds (Table C)
The allocation of Grant proceeds is given in Table C, which also indicates Bank financing by expenditure
category. The project will be executed over a period of five years during which the full Grant amount of
US$5.15 million will be disbursed. Activities under the project are expected to be completed by December
31, 2006 and the expected closing date for the project will be June 30, 2007 after which no dibursements
will be made.
It was agreed that the project will initially use traditional disbursement procedures (direct payments,
reimbursements and replenishments to the Special Account with full documentation or SOEs) and produce
PMRs for reporting and management information only and not for disbursement purposes. It was also
agreed that the FM system will be re-assessed in end-2003 for the eligibility for PMR-based disbursements.
Subsequently, the Borrower, jointly with the Bank, will review the possibility of disbursing on the basis of
PMRs.

Table C: Allocation of Grant Proceeds
Expenditure Category
Amount in US$million
Financing Percentage
1. Works
1.09
50%
2. Goods
1.89
100% of foreign expenditures
100% of, local expenditures (ex-factory)
and 85% of local expenditures for other
items bought locally
3. Consulting services and training
1.07
100%
4. Grants to beneficiaries (sub-grants)
0.32
80%
5. Incremental Operating Costs
0.27
85% until December 2003; 80% until
2004; 70% thereafer
6. Unallocated
0.51
Total Project Costs
5.15
Total
5.15
Use of statements of expenditures (SOEs):
Statement of Expenditure (SOE) would be used for:
(i)
goods estimated to cost less than US$100,000 per contract;
(ii)
works less than US$60,000;
(iii)
individual consultant contracts costing less than US$25,000;
(iv)
training contracts costing less than US$25,000; and
(iv)
incremental recurrent costs.
Full documentation in support of SOEs would be retained by the PMU for at least two years after
the disbursement. This information would be available for review during supervision by Bank
staff, and for annual audits which will be required to specifically comment on the propriety of
SOE disbursements and the quality of the associated record-keeping. Invoices supporting
- 54 -

---

disbursements against SOEs should be kept at least one year after the Bank has received the last
audit report under the grant.
Special account:
In order to facilitate disbursements, the borrower will open and maintain a Special Account (SA), with an
acceptable bank in Romania on terms and conditions acceptable to the Bank. The Special Account will be
drawn upon to meet payments to contractors, suppliers and consultants under the project. The initial
allocation to the SA would be US$500,000 and the ceiling in the SA would be limited to US$500,000.
Funds from the Special Account will be disbursed by submitting the relevant withdrawal applications.
Replenishment applications should be submitted once every three months and must include reconciled bank
statements as well as other appropriate supporting documents. The special account will be audited
annually by independent auditors and the audit report submitted to the Bank for review and approval within
six month after the end of the Government's fiscal year.
Financial Management
Project Accounting
The PMU will be in charge of all financial management aspects of the Project. A financial management
system (FMS), including accounting, reporting, planning, budgeting, auditing and proper internal control
systems are being finalized.
The Bank has defined a time-bound action plan (attached) to specify the steps necessary for further
strengthening of procedures and staff development during implementation. The development of the FMS
will be monitored by the Bank before effectiveness, during the first supervision missions and throughout
project implementation.
The PMU includes the Project Manager, financial management specialist, accountant (if needed),
procurement specialist, a number of technical experts and an assistant. The PMU will maintain all
documentation related to project expenditures and keep financial records in accordance with sound
accounting practices. The PMU will be mainly responsible for keeping the accounting records of the
Project, in charge of all payments, operating the accounting software, handling both the Special Account
(SA) and the Project Account (PA - Government contributions), prepare all bidding documents, reporting
both to the Bank and the Government, planning, budgeting, disbursement and auditing.
The financial management specialist will be responsible for the planning, budgeting, consolidation and
reporting aspects, handle all financial accounting records, ensure that accounting records are kept up to
date in the accounting software and will be in charge of the petty cash arrangements. He/she will also
establish permanent contacts with the beneficiaries, the Bank, accounting departments of the relevant
ministries, auditors and the Ministry of Public Finance. If needed, a junior accountant may be hired later,
as project activities get underway.
The PMU staff will be responsible for: preparing the bidding documents; receive the offers and evaluate
them in accordance with the WB regulations; submit the evaluations to the WB for no objection; sign
contracts in an acceptable format; supervise the works performed by the contractors; certify (jointly with
the beneficiaries' representatives) the acceptance of the goods, works and services provided in accordance
with the terms of reference and the relevant technical specifications. The payment documents will be
prepared by the PMU only after the fulfillment of the above steps. The PMU is the only entity authorized
to make payments to suppliers.
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A financial management consultant (TAMS Ltd., Bulgaria) was appointed to develop the financial
management system for the project, in accordance with the Bank's OP/BP 10.02 and LACI requirements.
The system features a customized accounting software fully responsive to the Project needs. The financial
management specialist of the PPU is the primary operator of the software, with the PPU director
responsible for authorizing all payments. The procurement specialist will have limited rights to access the
software on procurement related aspects.
A draft version of financial management and accounting system was implemented by the selected
consulting firm (TAMS Ltd.) and the initial training provided to the PPU Manager, the Financial
Management Specialist and Project Assistant. TAMS is assisting the PPU in finalizing the implementation
and inputting the final cost estimates in the system. The software manual was finalized and delivered. The
financial management manual was presented in draft by the consultant and finalized by the PPU. The
manual documents the accounting procedures, internal controls and measures to ensure a complete
segregation of duties and avoid any conflict of interest.
The consultant, together with PPU staff, developed specific chart of accounts, detailed financial statements,
reporting formats and methods, internal control procedures, disbursement and flow of funds arrangements,
and assigned staff responsibilities in order to ensure a complete segregation of duties. The PMU will be
fully in charge of recording and consolidating all payments, procurement, contracting, disbursement,
reporting, accounting, planning, budgeting and auditing relating to the Project. No Project funds can be
transferred directly to beneficiaries or any other parties, outside the Project's documented framework.
Detailed accounts will be kept for each project component and its sub-components. The accounts will also
reflect: the status of payment against each contract; utilization of the Special Account (SA) and
replenishments made by the Bank; the amounts used from the Government contribution and other donors,
and statements of sources and application of funds.
The PMU will maintain the project accounts on the cash basis of accounting. The PMU will be responsible
for preparing PMRs and statements of expenses (SOEs) and submitting them to the World Bank, no later
than 45 days after each quarter's end.
Accounting Software
The features of the financial management software used include, inter alia, customizable chart of accounts,
foreign and local currency, English and Romanian language, contract management, Excel and Word
exporting, integrated PMRs. A draft version of financial management and accounting software was
implemented by the consulting firm appointed (TAMS Ltd.) and the initial training was provided to the
PPU director, the financial management specialist and assistant. The software manual was finalized and
delivered.
All project financial and accounting documents will be properly recorded and filed separately by the PMU,
keeping a clear linkage with the software records.
The system is customized to respond to the project components and specifics and is able to produce routine
reports such as: trial balance, general ledger, balance sheet, income and expenditure statement by sources
of funds, cash flow, general journal, suppliers' ledger, various budgets, etc. Also, all Project Management
Reports (PMRs), mentioned in the WB "Project Financial Management Manual -- Exposure Draft,
February 1999" can be produced by the system.
The PMU will keep full accounting records of the project and the system allows this to be done by project
components and sub-components as well as by each financing source. The PPU will report to the World
Bank and to the Romanian Government. The system features a customized chart of accounts to cater for
the project specifics. TAMS assisted the PPU in finalizing the implementation and inputting the final cost
- 56 -

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estimates in the system.
The accounting system will account separately by financing sources (WB, Government contribution,
Calarasi County Council, beneficiaries and other donors as applicable) and by sub-components.
A detailed draft manual of accounting procedures relevant to the project was prepared by the FM
consultant with the support of the PPU staff. The manual documents the accounting procedures, internal
controls and measures to ensure a complete segregation of duties and avoid any conflict of interest. All
accounting entries will be kept in the foreign currency as well as in the Romanian currency, lei.
The PMU will prepare reports showing detailed budgeted and actual expenditures, uses of funds by source,
summary of withdrawals and forecasts, statements of progress achieved to date and the objectives for the
forthcoming quarter and semester. The format of the Project Management Reports (PMRs) has been agreed
upon and the PMRs are fully customized and included in the software.
Project Accounts and Cash Management
The World Bank funds (GEF) will be allocated to the Romanian Ministry of Public Finance (MOPF -
`grant recipient') as per the Grant Agreement. The Ministry of Public Finance will then sign a subsidiary
grant agreement (`convention') with the MWEP, giving full rights to MWEP to use the grant proceeds.
Based on the Ministerial Order issued, the MWEP has already empowered the existing PPU (which is to
become the PMU after grant effectiveness) to fully operate and use the grant proceeds. PMU will access
the grant proceeds through the Special Account (`SA'), opened at Romanian Commercial Bank (RCB),
Calarasi Branch. Romanian Government contribution is to be channeled through the ROL account opened
at the Treasury, Calarasi Branch. In this ROL project account, the PMU will receive monthly allocations
from the MWEP which will be the Romanian Government contribution to the project. Funds from the
Special Account will also be transfered to this ROL Project Account which will allow conversion of USD
to ROL to facilitate payment to local contractors. A separate sub-account in USD was opened at the RCB
to receive the interest from the SA and cover bank charges for the SA.
Calarasi County Council Contribution to the project will be allocated monthly / quarterly to a new ROL
account to be also opened at the Treasury, Calarasi Branch. It was agreed that a protocol will be signed
between the PMU and the County Council to govern this monthly / quarterly procedure. A draft protocol
was discussed and agreed in principle with the County Council representatives. The monthly / quarterly
estimated contributions for the CY 2001 and for the full life of the project will be attached to the protocol
as an Annex. Estimated monthly contributions for CY 2002 and thereafter will have to be ear-marked by
the County Council well in advance in order to be included in the County Council yearly budget
preparation and will be an integral part of the protocol.
The beneficiaries will contribute either in cash or in kind.
All sources of financing for the project will be reflected separately in the accounting software system. All
the relevant financial accounting documents (invoices, contracts, payment orders, bank statements, etc.)
will be recorded and kept at the PMU.
Signing procedures are in place, allowing the PMU director and financial management specialist to jointly
sign when operating the above accounts.
With respect to cash management, the PMU will develop sound cash forecasting and weekly / monthly
planning procedures. Amounts kept in ROL (both amounts held in banks and cash on hand) will be held at
a minimum level to avoid the risk of possible future devaluation.
- 57 -

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Flow of funds
The PMU will have full signature rights on operating all the above-mentioned bank accounts. This will
insure an uninterrupted flow of funds and allow the PMU to consolidate all financing sources of the project.
Every invoice received by the PPU will be checked for its accuracy and split into the net invoice amount
and taxes. The PMU will then execute the payments from each financing source in accordance with the
financing agreement and the percentages for each source (WB, Romanian Government, Calarasi County
Council).
The beneficiaries will also contribute at the project, either in cash or in kind. Each beneficiary will sign a
financing agreement with the PPU. This will detail the rights and obligations of each party. In case when
the beneficiary will contribute in cash, its cash contribution will have to be deposited in a bank account and
a bank statement proving this will be attached to the agreement. When the contribution will be in kind the
financing agreement will detail the mechanism for quantifying the in kind contribution in monetary terms,
and will mention the nature of the in kind contribution (land, labor, raw materials, consumables,
transportation, etc).
Once the agreement is signed and the beneficiary's contribution agreed, the PMU will start executing
payments for the relevant sub-component activities, as invoices are received from the suppliers. These
invoices will be first jointly certified by the PMU and the beneficiary's representatives, in order to ensure
that all the relevant goods were delivered, works done and services rendered, as per the technical
specifications and terms of reference. In addition, all other project beneficiaries will be responsible for
closely co-operating with the PMU on the financial management aspects of the project resources, under the
respective project components in which they will participate.
Internal Controls
The PMU will adhere to sound internal control procedures and practices, to ensure that the Project funds
are used with economy and efficiency and only for the purposes intended. The PMU will report to the
Project Steering Committee and to relevant Ministers and will inform in a timely manner about project
implementation and progress.
The PMU staff structure agreed (manager, financial management specialist, accountant - if needed,
procurement officer, other technical experts and assistant, etc.) is perceived as able to ensure a complete
segregation of duties and to avoid any conflict of interest.
All PMU staff must become familiar with the WB regulations (legal, disbursement, procurement, financial
management, etc) applicable to their relevant area. A Financial Management Manual will be developed
jointly by the PMU and by the financial management consultant appointed, documenting various types of
financial transactions, approval and authorization steps, the flow of documents within the PMU and
between the PMU and the beneficiaries, the accounting departments of the relevant ministries and MOPF,
PMU's staff responsibilities and measures to ensure a complete segregation of duties, as well as other
internal control procedures.
In addition to the above manual, the PMU will have to follow the procedures set up in the Project's
Operational Manual. The PMU staff are requested to enhance the manuals by documenting the day-to-day
internal detailed procedures for each type of activity (such as correspondence handling, contracting and
payment procedures, operation of all bank accounts, petty cash procedures, authorization mechanism,
reporting, filling, etc.)
Auditing
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The PMU will have the project accounts audited (including special and project accounts and all statements
of expenditures) in accordance with ISA - International Standards on Auditing, by a firm of independent
auditors acceptable to the World Bank. Recruitment of such firm on a yearly renewable contract (subject
to satisfactory performance) and all the related steps are mentioned in the attached Financial Management
Action Plan.
The PPU has prepared terms of reference for the audit of the project financial statements, in a format
acceptable to the World Bank. A shortlist of auditors acceptable to the World Bank was presented. The
PPU will prepare the audit RFP and submit it for no objection to the World Bank. Once the no objection is
received, the PPU will send the RFP to the shortlisted auditors and start the selection process, as detailed in
the FM action plan.
Selection of independent auditors acceptable to the Bank is a condition of effectiveness.
Audit reports and management letters for the project will be submitted by the PMU to the Bank within six
months of the end of the Government's financial year. Invoices supporting disbursements against SOEs
should be kept at least one year after the Bank has received the last audit report under the Grant.
The cost of the project audits will be financed by World Bank GEF proceeds.
World Bank financial management certification
Prior to project negotiations, the financial management system of the project will be subject to a detailed
review and assessment by a World Bank accredited FM specialist, in accordance with OP / BP 10.02 and
LACI requirements. The result of the assessment will have to demonstrate that the FM system for the
project satisfies at least the minimum FM World Bank requirements.
It was agreed that the project will initially use traditional disbursement procedures (direct payments,
reimbursements and replenishments to the Special Account with full documentation or SOEs) and produce
PMRs for reporting and management information only and not for disbursement purposes. It was also
agreed that the FM system will be re-assessed in end-2003 for the eligibility for PMR-based disbursements.
Subsequently, the Borrower, jointly with the Bank, will review the possibility of disbursing on the basis of
PMRs.
Financial Management Action Plan
Action
Responsibility
Due date
Establishment of financial management system
Select consultant and accounting software system
PPU / Bank
Completed
Conclude contract with the accounting software system supplier
PPU / Bank / FM Completed
(financial management expert - FM consultant) and start activity
consultant
Initial installation and customization of the accounting software
FM consultant
Completed
system and provision of appropriate training
Initial draft accounting manual documenting the project's accounting FM consultant
Completed
and internal controls procedures
Final draft accounting manual documenting the project's accounting FM consultant
Completed
and internal controls procedures
Final customization and complete implementation of the accounting
FM consultant
9/30/2001
software system, including full English language capability, full
automation and final test run
Completion of training to PPU staff
FM consultant
9/30/2001
Audit arrangements
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Present shortlist of auditors and ToRs for no-objection to the WB
PPU
Completed
Confirm no-objection to shortlist of auditors and audit ToRs
Bank
Completed
Send RFP for no-objection to the Bank
PPU
9/15/2001
Confirm no-objection to RFP
Bank
9/30/2001
Send RFP to shortlisted auditors
PPU
10/01/2001
Submission and opening of the offers
PPU
11/01/2001
Final evaluation and recommendation for selection
PPU / Bank
11/15/2001
Conclude contract with selected auditors
PPU
12/01/2001
Certification of financial management arrangements
Bank Financial Management Specialist to visit project prior to project Bank FMS
8/20/2001
board presentation to confirm adequacy of project's financial
management arrangements and, if appropriate, to issue the FM
certificate 'Annex 4-B'
Bank Financial Management Specialist to visit project prior to project Bank FMS
12/01/2001
effectiveness to follow up and confirm adequacy of project's financial
management aspects
Project Management Reporting
Agree upon the final formats of the quarterly Project Management
PPU / Bank / FM Completed
Reports (PMRs)
consultant
Final customization of the PMRs, full linkage with the accounting
FM consultant
10/30/2001
system, PMR training provided and test run
Produce first set of PMRs as at September 30, 2001 and quarterly
PPU
11/15/2001
thereafter
Review the possibility with the Borrower of disbursing on the
Borrower/Bank
8/01/2003
basis of submitted PMRs
- 60 -

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Annex 7: Project Processing Schedule
ROMANIA: AGRICULTURAL POLLUTION CONTROL PROJECT
Project Schedule
Planned
Actual
Time taken to prepare the project (months)
20

First Bank mission (identification)
09/15/1999
09/15/1999
Appraisal mission departure
05/20/2001
04/23/2001
Negotiations
10/05/2001
10/02/2001
Planned Date of Effectiveness
01/01/2002
Prepared by:
Jitendra Srivastava, Doina Rachita, Meeta Sehgal, Naushad Khan, Arben Maho, Bogdan Constantinescu,
Ranjan Ganguli, Rohan Selvarathnam, John Cole, Stefan Nicolau, Dana Dobrescu, Keith Openshaw,
Adriana Dinu, Srish Kumar.
Preparation assistance:
Sharifa Kalala
Bank staff who worked on the project included:
Name
Speciality
Jitendra Srivastava
Technical
Doina Rachita
Technical
Meeta Sehgal
Technical
Naushad Khan
Procurement
Dana Dobrescu
Social
Stan Peabody
Social
Bodgan Constantinescu
Financial
Ranjan Ganguli
Financial
Rohan Selvarathnam
Project Costs
Srish Kumar
Project Costs
Arben Maho
Procurement
Peer Reviewers:
Julia Bucknall
Mahesh Sharma
Quality Assurance
Marjory-Anne Bromhead
John Hayward
- 61 -

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Annex 8: Documents in the Project File*
ROMANIA: AGRICULTURAL POLLUTION CONTROL PROJECT
A. Project Implementation Plan
See Working Papers enumerated below.
B. Bank Staff Assessments
C. Other
Detailed Strategies and Action Plans: Extension Activities, Public Awareness and Replicability
Working Papers (Available in English and Romanian)
Working Paper 1: Presentation of Project Area - Part I: Socio-Economic and Demographic Data; Part II:
Social Assessment; Part III: Proposed Set of Indicators for Monitoring the Project Impact in the Pilot Area
Working Paper 2: Assessment of Land use Suitability and Programs for Testing /Demonstration Program
of Environmentally-friendly Agricultural Practices
Working Paper 3: Design of Testing and Demonstration Program for Environmentally-friendly
Agricultural Practices
Working Paper 4: Design of Agro-Forestry Program
Working Paper 5: Assessment of Land use suitability and Proposals for Land Use Information System.
Working Paper 6: Design of Village-level Manure Storage and Handling System
Working Paper 7: Feasibility Study for Manure Storage System
Working Paper 8: Proposals for Integrated Management of the Boianu-Sticleanu Polder and Ecological
Restoration of Calarasi-Raul Polder
Working Paper 9: Strengthening capacity in Calarasi Judet for Soil and Water Quality Monitoring
Working Paper 10: Design of Public Awareness Campaign
Working Paper 11: Review of Regulatory Framework Governing Agricultural Pollution Control in
Romania
Working Paper 12: Operational Manual for Soil and Water Quality Monitoring
Working Paper 13: Financial Management Manual
Working Paper 14: Design of Project Monitoring System
- 62 -

---

Working Paper 15: Competitive Grant Manual (Agricultural Support Services Project)
Working Paper 16: Operational Manual for Manure Management System
*Including electronic files
- 63 -

---

Annex 9: Statement of Loans and Credits
ROMANIA: AGRICULTURAL POLLUTION CONTROL PROJECT
Mar-2001
Difference between
expected
Original Amount in US$ Millions
and actual
disbursementsa
Project ID
FY
Purpose
IBRD
IDA
GEF
Cancel.
Undisb.
Orig
Frm Rev'd
P043882
2000
AGR SUPPORT SERVICES
11.00
0.00
0.00
0.00
10.93
0.43
0.00
P056337
2000
MINE CLOSURE
44.50
0.00
0.00
0.00
43.52
12.05
0.00
P008797
2000
HEALTH SECTOR REFORM
40.00
0.00
0.00
0.00
40.00
3.07
0.00
P065041
2000
TRADE & TRANS FACIL IN SE EUR
17.10
0.00
0.00
0.00
17.10
0.00
0.00
P039251
1999
PIBL
25.00
0.00
0.00
1.10
17.35
4.45
0.00
P044176
1999
BIODIVERSITY
0.00
0.00
5.50
0.00
4.40
1.02
0.00
P058284
1999
CULTURAL HERITAGE
5.00
0.00
0.00
0.00
4.39
3.49
0.00
P049200
1999
SOC DEV FUND
10.00
0.00
0.00
0.00
4.59
4.59
5.04
P044614
1998
SCHOOLS REHABILITATION
70.00
0.00
0.00
0.00
59.30
34.40
-8.00
P055495
1998
CHILD WELFARE REFORM
5.00
0.00
0.00
0.00
3.64
2.74
0.00
P034213
1998
GEN'L CADASTRE
25.50
0.00
0.00
0.00
23.77
7.11
0.00
P008788
1998
TELECOMMUNICATION
30.00
0.00
0.00
7.00
17.46
21.37
3.32
P039250
1997
SECOND ROADS
150.00
0.00
0.00
0.00
32.44
-30.06
0.00
P008793
1997
HIGHER EDUCATION
50.00
0.00
0.00
0.00
30.10
30.10
11.70
P008778
1997
BUCHAREST WATER SUPP
25.00
0.00
0.00
0.00
10.18
10.05
0.00
P036013
1996
RAILWAY
120.00
0.00
0.00
0.00
44.53
43.20
0.00
P008794
1996
POWER SECTOR REHAB.
110.00
0.00
0.00
0.00
93.60
93.60
12.45
P008776
1995
(ESPP) EMPLOY. & SOC. PROTECTION
55.40
0.00
0.00
0.00
36.21
35.81
0.00
P008777
1994
PETROL SECT REH
175.60
0.00
0.00
0.00
79.45
79.45
-76.00
P008784
1994
EDUCATION REFORM
50.00
0.00
0.00
0.00
20.83
20.83
34.96
Total:
1019.10
0.00
5.50
8.10
593.80
377.71
-16.52
- 64 -

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ROMANIA
STATEMENT OF IFC's
Held and Disbursed Portfolio
Mar-2001
In Millions US Dollars
Committed
Disbursed
IFC
IFC
FY Approval
Company
Loan
Equity
Quasi
Partic
Loan
Equity
Quasi
Partic
1999
Ambro
7.66
0.00
0.00
0.00
5.11
0.00
0.00
0.00
1998
Banc Post
0.00
0.00
10.00
0.00
0.00
0.00
10.00
0.00
1998
Bilstein Compa
1.74
0.00
0.00
1.74
1.74
0.00
0.00
1.74
1996
Danube Fund
0.00
2.00
0.00
0.00
0.00
2.00
0.00
0.00
1998
Demir Romania
5.00
3.20
0.00
0.00
5.00
2.55
0.00
0.00
1997
Efes Brewery
7.63
0.00
0.00
6.00
7.63
0.00
0.00
6.00
1998
FCR Fund
0.00
10.00
0.00
0.00
0.00
10.00
0.00
0.00
1998
Garanta
0.00
0.20
0.00
0.00
0.00
0.20
0.00
0.00
1998
Krupp Compa
6.09
0.00
0.00
2.61
5.03
0.00
0.00
2.15
1997/00
Mobil Rom
15.00
0.00
0.00
20.00
0.00
0.00
0.00
0.00
1997
Rambox
1.35
2.00
0.00
0.00
1.35
2.00
0.00
0.00
1994/98
Romlease
0.00
0.30
0.00
0.00
0.00
0.30
0.00
0.00
1998
Small Bus. Loan
3.00
0.02
0.00
0.00
3.00
0.02
0.00
0.00
Total Portfolio:
47.47
17.72
10.00
30.35
28.86
17.07
10.00
9.89
Approvals Pending Commitment
FY Approval
Company
Loan
Equity
Quasi
Partic
2001
Romlease Restr.
4000.00
0.00
0.00
0.00
2001
Banca Romaneasca
3000.00
3000.00
0.00
0.00
Total Pending Commitment:
7000.00
3000.00
0.00
0.00
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Annex 10: Country at a Glance
ROMANIA: AGRICULTURAL POLLUTION CONTROL PROJECT

Europe &
Lower-
POVERTY and SOCIAL

Central
middle-
Romania
Asia
income
Development diamond*
1999
Population, mid-year (millions)
22.5
475
2,094
Life expectancy
GNP per capita (Atlas method, US$)
1,520
2,150
1,200
GNP (Atlas method, US$ billions)
34.1
1,022
2,513
Average annual growth, 1993-99
Population (%)
-0.2
0.1
1.1
Labor force (%)
0.5
0.6
1.2
GNP
Gross
per
primary
Most recent estimate (latest year available, 1993-99)
capita
enrollment
Poverty (% of population below national poverty line)
22
..
..
Urban population (% of total population)
56
67
43
Life expectancy at birth (years)
69
69
69
Infant mortality (per 1,000 live births)
21
22
33
Child malnutrition (% of children under 5)
..
8
15
Access to safe water
Access to improved water source (% of population)
62
..
86
Illiteracy (% of population age 15+)
2
3
16
Gross primary enrollment (% of school-age population)
104
100
114
Romania
Male
104
101
114
Lower-middle-income group
Female
103
99
116
KEY ECONOMIC RATIOS and LONG-TERM TRENDS
1979
1989
1998
1999
Economic ratios*
GDP (US$ billions)
..
41.5
41.5
34.0
Gross domestic investment/GDP
39.6
26.8
21.4
19.9
Trade
Exports of goods and services/GDP
..
20.9
23.7
30.1
Gross domestic savings/GDP
..
29.5
13.3
15.7
Gross national savings/GDP
..
29.7
14.0
16.3
Current account balance/GDP
..
6.1
-7.2
-3.8
Domestic
Interest payments/GDP
..
0.2
1.1
1.4
Investment
Savings
Total debt/GDP
..
2.6
24.3
27.1
Total debt service/exports
1.4
16.9
23.6
28.7
Present value of debt/GDP
..
..
23.2
27.1
Present value of debt/exports
..
..
98.5
92.0
Indebtedness
1979-89
1989-99
1998
1999
1999-03
(average annual growth)
GDP
1.5
-1.5
-4.9
-3.2
..
Romania
GNP per capita
1.2
-1.4
-5.1
-2.8
..
Lower-middle-income group
Exports of goods and services
..
4.6
5.8
8.9
..
STRUCTURE of the ECONOMY
1979
1989
1998
1999
Growth of investment and GDP (%)
(% of GDP)
10
Agriculture
..
15.7
15.0
15.5
Industry
..
56.4
36.6
31.0
5
Manufacturing
..
..
27.3
22.2
0
Services
..
27.9
48.3
53.5
94
95
96
97
98
99
-5
Private consumption
..
58.9
72.2
69.6
-10
General government consumption
..
11.6
14.5
14.7
GDI
GDP
Imports of goods and services
..
18.2
31.8
34.3
1979-89
1989-99
1998
1999
Growth of exports and imports (%)
(average annual growth)
Agriculture
..
0.6
-8.8
4.7
20
Industry
..
-1.9
-5.6
-4.0
Manufacturing
..
..
-6.4
-3.1
10
Services
..
-2.4
-0.1
-8.4
Private consumption
..
-0.1
-6.5
-6.8
0
94
95
96
97
98
99
General government consumption
..
2.3
12.0
0.4
Gross domestic investment
..
-5.7
-8.6
-3.7
-10
Imports of goods and services
..
4.4
14.1
-4.8
Exports
Imports
Gross national product
1.7
-1.7
-5.3
-3.0
Note: 1999 data are preliminary estimates.
* The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will
be incomplete.
- 66 -

---

Romania
PRICES and GOVERNMENT FINANCE
1979
1989
1998
1999
Inflation (%)
Domestic prices
(% change)
300
Consumer prices
..
1.1
59.1
45.8
200
Implicit GDP deflator
3.2
-0.9
55.0
46.4
100
Government finance
(% of GDP, includes current grants)
0
Current revenue
..
51.0
30.1
33.3
94
95
96
97
98
99
Current budget balance
..
31.1
-5.0
-3.5
GDP deflator
CPI
Overall surplus/deficit
..
13.5
-5.0
-3.4
TRADE
1979
1989
1998
1999
Export and import levels (US$ mill.)
(US$ millions)
Total exports (fob)
..
10,487
8,302
8,505
12,000
Textiles
..
..
1,583
1,310
Metals
..
..
508
502
9,000
Manufactures
..
7,056
5,238
5,654
Total imports (cif)
..
8,437
11,838
10,392
6,000
Food
..
124
523
417
3,000
Fuel and energy
..
4,728
1,687
1,251
Capital goods
..
2,148
3,206
2,689
0
93
94
95
96
97
98
99
Export price index (1995=100)
..
93
95
97
Import price index (1995=100)
..
99
98
101
Exports
Imports
Terms of trade (1995=100)
..
93
97
95
BALANCE of PAYMENTS
1979
1989
1998
1999
Current account balance to GDP (%)
(US$ millions)
Exports of goods and services
10,133
11,321
9,519
9,862
0
Imports of goods and services
11,428
8,887
12,798
11,358
93
94
95
96
97
98
99
Resource balance
-1,295
2,434
-3,279
-1,496
-2
Net income
-358
80
-442
-375
Net current transfers
..
0
753
568
-4
Current account balance
-1,653
2,514
-2,968
-1,303
-6
Financing items (net)
1,791
-1,160
2,125
1,471
Changes in net reserves
-138
-1,354
843
-168
-8
Memo:
Reserves including gold (US$ millions)
..
..
3,789
3,657
Conversion rate (DEC, local/US$)
..
19.3
8,875.8
15,332.8
EXTERNAL DEBT and RESOURCE FLOWS
1979
1989
1998
1999
(US$ millions)
Composition of 1999 debt (US$ mill.)
Total debt outstanding and disbursed
3,583
1,087
10,074
9,213
IBRD
590
0
1,469
1,703
G: 683
IDA
0
0
0
0
A: 1,703
Total debt service
142
1,941
2,310
2,876
IBRD
54
756
152
171
IDA
0
0
0
0
C: 459
Composition of net resource flows
Official grants
0
0
131
0
D: 1,021
Official creditors
151
-1,188
-123
-65
Private creditors
1,680
-432
344
-351
F: 4,968
Foreign direct investment
0
0
2,040
949
E: 379
Portfolio equity
0
0
130
-706
World Bank program
Commitments
340
0
130
340
A - IBRD
E - Bilateral
Disbursements
142
0
122
323
B - IDA
D - Other multilateral
F - Private
Principal repayments
7
727
70
85
C - IMF
G - Short-term
Net flows
135
-727
51
238
Interest payments
47
29
82
87
Net transfers
88
-756
-30
152
Development Economics
9/5/2000
- 67 -

---

Additional
Annex 11
Environment Data Sheet
ENVIRONMENTAL DATA SHEET FOR PROJECTS
in the IBRD/IDA Lending Program
Country: Romania Project ID No: GE-PO66065
Project Name: Agricultural Pollution Control Project Total Project Cost: US$10.80 million
Appraisal Date: July 2001
Board Date: December 2001 Team Leader: Jitendra Srivastava
Managing Unit: ECSSD Sector: Environment/Agriculture
Est. date for receipt of EA by Bank: 07/20/2001)
EA Category (A/B/C): B Date Assigned: 01/18/2000
Date Sheet Prepared/Updated 07/05/2000
(Please do not leave any items blank: use "N/A" or "To be developed" when appropriate)
Major Project Components: (presents description of project components)
The objective of the proposed project is to significantly increase the use of environmentally friendly agricultural
practices among eligible farmers in target project areas. The ultimate goal is to reduce the discharge of nutrients
and other agricultural pollutants into the Danube River and Black Sea through integrated land and water
management. While the farmers will receive benefits from the improved practices and investments, most of the
benefits will come from improved environmental quality of Romanian surface and groundwater and the Black
Sea.
The project has identified Calarasi county, in the southern part of Romania, along the lower Danube river, as the
project site. In support of the above objectives, the project will comprise the following components:
Component 1: Activities in the Calarasi Judet. (US$9.22 ). This will include (i) manure management practices;
(ii) promotion of enviromnmentally friendly agricultural practices; (iii) integrated management ofo
Boianu-Sticleanu Polder and ecological restoration of part of the Calarasi-Raul Polder; and (iv) strengthening
capacity in Calarasi Judet to monitor soil and water quality and environmental impacts.
Component 2: Strengthening of National Policy and Regulatory Capacity (US$0.27m). This would include
support to the Ministry of Water and Environmental Protection (MWEP) and Ministry of Agriculture, Food and
Forests (MAFF) for: (i) work relating to the application of the Nitrates Directive and harmonization of legislation
with the requirements of the European Union; (ii) developing a Code of Good Agricultural Practices; and (iii)
strengthening the capacity of the National Authority for Ecological Agriculture in its efforts to promote scientific
organic farming and land use management.
Component 3: Public Awareness and Replication Strategy(US$0.45m). A broad public information campaign
of the project's activities and benefits will be undertaken at the local, national and regional levels to achieve
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replicability of project interventions. The public awareness activities will be delivered through cost effective,
innovative vehicles (including a bilingual website) as well as through the provision of training in the use and
benefits of environment-friendly agricultural practices. The project would provide for the organization of regional
workshops, field trips, training, publication in international agriculture and environmental journals and other
activities to promote replication of project activities in other Black Sea riparian countries.
Component 4: Project Management and Monitoring (US$0.86m). The project would support a Project
Management Unit (PMU) to be established in the DGAIA offices, Calarasi. The PMU would comprise Project
Manager, Agricultural Technical Specialist (who would also handle project monitoring/evaluation), Financial
Management Specialist, Accountant, Secretary/Translator and Driver. Procurement services would be provided to
the PMU by the ASSP Project Management Unit located in the Ministry of Agriculture, Food and Forests. The
costs of the Procurement and Financial Management Specialists would be shared, with the APCP supporting the
costs of the Financial Specialist (who would be based in the ASSP, PMU, Bucharest), while the ASSP would
support the costs of the Procurement Specialist.
Major Environmental Issues: (describes major environmental issues identified or suspected in project)
None
Other Environmental Issues: (describes environmental issues of lesser scope associated with project)
The environmental concerns under this project (component 1) may include leakage of manure from the
village-level storage facilities (if construction is not made according to specifications), inappropriate manure
spreading in the fields and improper cleaning of the individual manure storage tanks and large manure platforms.
Proposed Actions: (describes actions proposed to mitigate environmental issues described in project)
An environmental assessment has been done and mitigating measures to address the above environmental issues
have been developed. Also, an environmental management plan has been developed to ensure that activities
undertaken under this component will be closely monitored with regular inspections by the local environmental
agency(ies).
A comprehensive soil and water quality monitoring program has been developed for implementation and to
provide decision-makers and the public officials with reliable data on problems and trends in the water quality of
drinking water supplies and the Danube River and its tributaries. These efforts are hampered by the lack of
adequate laboratory and monitoring equipment and chemicals for the operation and maintenance of soil and
water quality monitoring laboratories of the Environmental Protection Inspectorate (EPI) and the Public Health
Directorate (PHD) of Calarasi Judet. The project will provide additional laboratory equipment, chemicals and
supplies, and training to build capacity of the EPI.
The project will install and monitor 20 piezometers to determine the flow of nitrogen and phosphorus along the
groundwater gradient (underground water flow lines) in the aquifer that eventually is draining into the Danube
River. Also, the project will monitor water quality of three man-made and one natural drain in the lower part of
the polder area which are draining nutrients directly into the Danube River. Data from piezometers and open
drainage canals will help the project in quantifying the reduction in nutrient loads to the Danube River. At three
sites in the project area, the project will evaluate the effects of nutrient management, tillage, and crop rotations
on soil and water quality. Also, limited water monitoring equipment will be installed to monitor the positive
effects of buffer strips, tree planting, and establishment of agro-forestry on water quality. Environmental
evaluation indicators have been reflected in the EMP which meet the objectives and goals of this project.
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---

Justification/Rationale for Environmental Category: (reasons for env. category selected & explanation of any
changes from initial classification)
The project is primarily designed to provide Technical Assistance. There is no anticipated negative
environmental impact resulting from project activities. However, all physical investments will be screened in
accordance with Romania's environmental regulations to address any impacts that might arise.
Status of Category A Environmental Assessment: (presents EA start-up date, EA first draft, and current
status)
An Environmental Assessment has been undertaken and prepared in April/May 2001. Impact of project activities
on the environment will be periodically assessed by the Project Management Unit during the life of the project
and lessons learned will be fed back into the project as improved practices.
Remarks: (gives status of any other environmental studies, lists local groups and local NGOs consulted, tells
whether borrower has given permission to release EA, etc)
The Environmental Management Plan was developed in close consultation with key stakeholders including
individual farmers, farmer organizations, local officials (mayors, DGAIA engineering staff, technical staff and
inspectors from EPI, etc.) as well as NGOs, such as Romanian Association for Sustainable Agriculture.
Signed by:
________________________
Jitendra Srivastava, Task Team Leader
Signed by:
_______________________________________
Jane Holt, Environment Sector Leader
August 16, 2001
Environmental Assessment: Environmental assessment of various project activities has been made and
mitigation measures proposed to address various possible environmental impacts are addressed in EMP
(prepared by borrowers) shown in Tables 1. This project will have positive effects on the environment. The
only caution would be to ensure that 14 large manure storage facilities to be built in this project are
designed properly and constructed to ensure that manure does not leak from these facilities to surface or
groundwater sources.
Project has made an environmental assessment and has developed the following mitigation plan to ensure
that these structures are environmentally safe: i) design of these large manure storage facilities must be
prepared under the supervision of County Council engineering staff and EPI will ensure that the
constructions of manure storage facilities have met environmental guidelines on stopping manure leakage to
surface or groundwater sources, ii) these facilities will not be build closer to any surface water body, iii)
implement an extensive soil and water monitoring program to ensure that seepage of manure to ground
water does not occur. To insure safe ground water quality, four piezometers (two upstream and two
downstream) will be installed around each of the fourteen manure storage platforms by the EPI to conduct
periodic monitoring of the quality of groundwater to ensure that seepage of manure to groundwater does
- 70 -

---

not occur. During installation of these piezometers, soil samples will be taken and analyzed for nitrogen
and phosphorous contents to establish baseline data information on the existing soil and water quality at the
construction site, iv) strengthen the institutional capacity of EPI. In Calarasi Judit, there is a functional
EPI office with laboratory facilities to undertake the monitoring work, however, EPI will need additional
but newer laboratory equipment and training for their professional staff to operate new equipment
effectively. Project will provide additional laboratory equipment and training to build capacity of the EPI to
undertake the project work more efficiently, and v) public awareness will be undertaken to create
awareness of current systems and promote the adoption of environmental friendly manure management
functions to reduce the nutrient loads to water bodies.
Table 1. Environmental Management Plan for Romania Project: Environmental Impacts
Issues
Anticipated/Potential
Effects on Environment
Actions or Mitigation
Environmental Impacts
Measures
Surface water
Surface water quality will
i) Increased quality and
i)develop and implement
quality
improve with the reduction
availability of Danube
improved manure
in nitrogen and phosphorus
River water and Black
management and
transport to runoff waters
Sea coastal waters will
environmentally sound
from swine and cattle
result in increased use of
agricultural management
manure disposal sites,
beaches by public and
practices in Calarasi
agricultural areas treated
increased harvest of better
County of Danube River
with manure and agricultural
quality fish
watershed
chemicals as better nutrient
ii) Increased utility of
ii) Undertake a rigorous
management practices will
water for downstream
surface water quality
be implemented by the
users and fisheries if any.
monitoring program for
project.
iii) drinking water
Danube River and other
ii) Quality of drainage and
supplies will improve and
surface water bodies that
irrigation canals that drain
will have lesser health
drain into Danube River to
into Danube River will
related effects for the city
establish a baseline
improve.
of Calarasi as it Danube
database of the quality of
iii) Overall effects on the
River water for drinking
surface waters, lakes and
quality of Danube river will
supplies
Danube River as affected
be positive.
by better agricultural and
Probability of occurrence:
manure management
High
practices.
Groundwater
i) Reduction in nutrient
i) Increased quality and
i) Implement
leaching to groundwater
availability of
environmentally sound
quality will occur with the
groundwater for human
agricultural and manure
introduction of better manure
and animal consumption
management practices in
storage and handling, and
ii) Groundwater is the
the project area.
nutrient management
main source of drinking
ii) Implement wellhead
practices will occur, ii)
for rural population and
protection programs for
Quality of drinking water
decreased levels of nitrate
rural drinking wells.
supplies will improve with
and bacteria in water will
iii) Establish extensive
the reduction of nitrate and
reduce water borne
groundwater monitoring
bacteria in groundwater as a
diseases in Calarasi
program in the highly
result of collecting manure
region like nitrate
intensive agricultural and
from individual farmer's
poisoning. .
animal production areas to
homesteads and storing in
determine the effect of
comuna platforms.
better nutrient
Probability of occurrence:
management practices.
High
iii)Monitor groundwater
- 71 -

---

quality in piezometers and
wells in areas with
improved agriculture and
animal waste management
systems
Soil Quality
With the introduction of
Better productive lands
Undertake soil monitoring
better farming systems, soil
with increased organic
of selected areas to
quality will improve
matter and carbon
establish the effect of better
Probability of occurrence:
sequestration
farming systems on soil
high
and water quality
Biodiversity
Increased biodiversity will
Increased biodiversity
Observe impact on new
occur because of better
plant and animal
manure management
populations, and soil worm
systems, introduction of
and microbial activity.
conservation tillage systems,
Measure
forest areas, buffer strips etc.
effects on soil organic
Probability of occurrence:
matter and carbon
high
contents, and possibly
water quality.
ENVIRONMENTAL MANAGEMENT PLAN
A.
MITIGATION PLAN
1. Soil and Water Monitoring Program
(a): Manure Storage Facilities
Cost
Institutional
Comments
Responsibility
(e.g. secondary impacts)
Phase
Issue
Mitigating
Install
Operate
InstallOperate
Measure
Construction
·
None
Operation
·
Manure
Proper engineering Included in the N/A
ContractorCountry
leakage and water design according to project
Council and
pollution
British engineering
ComunaLoading and
design codes.
unloading of manure in
the facilities will ensure
proper manure storage
Decommissioning ·
N/A
B. MONITORING PLAN
Cost
Responsibility
Phase
What
Where
How
When
Why
Install
Operate
parameter is is the parameter is the parameter is the
Is the
Install
to be
to be monitored? to be monitored/ parameter to parameter to be
Operate
monitored?
type of
be
monitored
monitoring
monitored-fr (optional)?
equipment?
equency of
measurement
or
continuous?
Baseline
N/A
- 72 -

---

Construct
N/A
Operate
Nitrate,
Piezometer and Using
To detect if
Included Included in the
phosphor-us, well sites &
piezometers,
Monthly
there is any N in the
projectEPIEPI
& Bacteria in project activities wells, and soil
and P leakage project
and PHD
soil & water
sites
samplers
to water bodies
Decommission N/A
C. INSTITUTIONAL STRENGTHENING
1.
Equipment Purchases (Tabular Presentation Preferred)
(Justification is Included in the Project)

List:
l
Type of equipment
l
Number of Units
l
Unit cost
l
Total Cost
l
Local or International Purchase
Type of
Number of
Local or
Equipment
units
Unit cost
Total Cost
International
Purchase
Latchet Auto Analyzer
2
$35,000
$70,000
International
for nitrate analysis
Centrifuger
2
$1,000
$2,000
International
Electronic Balance
3
$500
$1,500
International
Soil Samplers
4
$500
$2,000
International
Sampling
2
$2,000
$4,000
International
Pump
GC Column
1
$850
$850
International
Electric. bath
1
$1,500
$1,500
International
pH Meter
1
$500
$500
International
Air Conditioner
4
$1,000
$4,000
International
Distilator
1
$2,000
$2,000
International
Refrigerator
1
$1,500
$1,500
International
Freezer
1
$2,000
$2,000
International
Agitator
1
$500
$500
International
Photo Spectro Meter
1
$4,900
$4,900
International
Water
2
$500
$1,000
International
Samplers
Computers
4
$1,500
$6,000
International
Oven
1
$3,500
$3,500
International
2.
Training/Study Tours
(Justification is included in the project)
List:
l
Type of Training (Mitigation, Monitoring, Environmental Management, Other)
- 73 -

---

l
Number of Students
Current and Future Organizational Unit in Which They Work or Current and Future
Title/Job Description
l
Duration of Training
l
Start Date/End Date (for each student)
l
Venue of Training (Domestic or Abroad)
l
Institute or Organization to Provide Training
l
Cost (Local and Foreign)
Type of
No.
Organiza
Job
Duration Timings
Venue
Institute Cost (local/
Training
Students
tion
(days)
foreign)
Mitigation
1
EPI
Chemist
15-30
Yr.1
USA
ISU*
$5,000
foreign
Mitigation
1
EPI
Engineer
15-30
Yr.1
USA
ISU
$5,000
foreign
Mitigation
1
OJSPA
Chemist
15-30
Yr.2
USA
ISU
$5,000
foreign
Mitigation
1
EPI
Chemist
15-30
Yr.2
USA
ISU
$5,000
foreign
Monitoring
5
EPI
Eng/Ch.
5
Yr.2,3,4,5 ROMANIA ICIM** $4,000 local
Monitoring
7
EPI,
Eng/Ch.
5
Yr.2,3,4,5 ROMANIA ICPA*** $8,000 local
OJSPA
Environmental
1
EPI
Engineer
12
Yr. 1
USA
ISU
$5,000
Management
foreign
Environmental
1
OJSPA
Engineer
12
Yr. 1
USA
ISU
$5,000
Management
foreign
Environmental
2
EPI
Engineer
12
Yr. 2
USA
ISU
$10,000
Management
foreign
*
Iowa State University
**
Research Institute for Environment
*** Research Institute for Soil and Agrochemistry
3.
Consultant Services
(details are included in the project)
l
Type of Service: Environmental monitoring and Mitigation
l
Terms of Reference: Provide monitoring and mitigation training, help in developing operational
manual
and implementing operational plans
l
Justification: To help in building institutional capacity
l
Cost: $5,000/yr
4.
Special Studies: None needed
Justification:
Terms of Reference
Cost
D. SCHEDULE
- 74 -

---

Present (preferably in Chart Form) Start Dates and Finish Dates for:
l
Mitigation Activities
l
Monitoring Activities
l
Training Activities
This information should be on the same chart defining the overall project schedule (Project
Implementation Plan)
E. INSTITUTIONAL ARRANGEMENTS
Write a paragraph explaining on how things will be taken care of on Monitoring information, take
mitigation actions, and make decisions on correction measures.
A narrative discussion supported by organizational charts detailing:
l
Responsibilities for mitigation and monitoring
l
Environmental information flow (reporting--from who and to who and how often)
l
Decision making chain of command for environmental management (to take action, to authorize
expenditures, to shut down, etc.)
In short, how is all the monitoring data going to be used to maintain sound environmental
performance--who collects the data, who analyzes it, who prepares reports, who are the reports sent to
and how often, and who does that person send it to, or what does he/she do with the information--who
has the authority to spend, shutdown, change operations etc.
Director of the Environmental Protection Inspectorate (EPI) in Calarasi would have the overall
responsibility for environmental monitoring, mitigation, and performance. The Director of the EPI will
be certifying the construction of manure storage facilities and installation of piezometers for
environmental controls. EPI Director has developed an implementation plan for soil and water
monitoring and collecting and analyzing the data soil and water samples from various project activities.
EPI field engineer will collect soil and water samples from the field on monthly basis (as discussed in
the implementation plan) and will bring to laboratory chemists in the laboratories of EPI and PHD.
Field chemist will analyze all soil and water samples and the field engineer and lab chemists together
will prepare quarterly and annual reports and will send to the PMU/international consultant for
evaluations. At the end of each year, soil and water quality data will summarized in usable form for the
benefit of stakeholders including the World Bank, Ministry of Water and Environment, and other Black
Sea countries. EPI will have the authority to shut down/change operations to facilitate the
implementation of a mitigation plan in case leakage/breakdown occurs until things are fixed up.
F. CONSULTATION WITH LOCAL NGOs AND PROJECT-AFFECTED GROUPS
(The details on all the consultations is provided in the project file).
- 75 -

---

Additional
Annex 12
Comments of STAP Reviewer
Scientific and Technical Soundness
The scientific and technical basis of the project is sound. It addresses the critical issue of reducing nutrient
pollution of the Danube River flowing into the Black Sea. It builds upon and is linked with the "Strategic
Action Plan for the Protection and Rehabilitation of the Black Sea" (BSSAP), formulated with the
assistance of the Global Environment Facility (GEF).

The proposal recognises the importance of community and decision maker education building acceptance of
and commitment to identifying and operating within the constraints of the natural resources and the
ecological systems which produce them. This is the most critical factor of the project.
Global Environment Benefits and Costs
Nutrient pollution of the Black sea has been identified as an environmental issue of global significance. If
this project achieves its objectives it will have clear benefits in addressing a key element in a major source
of nutrient pollution of the Black Sea from poor agricultural practices in the Romanian catchments that
drain into the River Danube.
The Context of GEF Goals and Guidelines
The project clearly addresses the objectives of the integrated land and water multiple focal area. It
addresses the objectives of providing a basis for achieving sustainability and it applies the guidelines with
respect to incremental costs and the log-frame.
Regional Context
Discussed above. The project is important in the context of the rehabilitation of the Black Sea.
Replicability
There are now several projects addressing agricultural pollution of catchments draining into enclosed seas.
The common elements of each should be positive "triple bottom line" outcomes for impoverished rural
communities through simultaneous and linked improvements in the economic, environmental and social
outcomes of agriculture. The circumstances of each is unique so it would be naïve to expect a simply
replicable "turn-key" model but this project builds on the experience of others and has immediate potential
for replication in the management of other parts of the Danube catchment.
Sustainability
This is the key to the project. The design has been developed with substantial local consultation. The
indications are that farmers in the target community will participate with enthusiasm. Provided there is
ongoing demonstration and community appreciation of the economic, environmental and social benefits of
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the agricultural methods adopted it can be expected that they will be increasingly adopted.
Community involvement, education and demonstration of benefits are critical elements of the program
design.
Contribution to Future Strategies and Policies
As discussed above. Success with this project should contribute to the broader adoption of pollution
minimising agricultural practices in the catchments of eastern Europe.
Secondary Issues
Linkages to other programmes and action plans are identified in table 2 of the proposal.
Involvement of Stakeholders
The project proposal addresses this appropriately as a critical issue. Stakeholder commitment and
involvement are key elements in the community considerations in the uptake and routine adoption of
pollution minimising agricultural practices.
Risk Assessments
To the extent that I can judge, being unfamiliar with the field operating situation, the risks seem to be
reasonably discussed and I concur with the assessments
Costs
The document as reviewed still has some figures to be finalised and a check is needed as ongoing revisions
have resulted in inconsistencies between figures in the text and tables. Notwithstanding, and subject to the
qualification above, the amounts and relativities of funding proposed for the various components appear
reasonable.
Conclusion
This is a soundly designed project drawing on the experience of similar projects to tackle critical issues of
agricultural pollution in ways that appear to be appropriate to the situation described for Calarasi Judet and
Romania. I recommend that it should proceed.
R A Kenchington
31 May 2001
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