PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Report No.: AB2629
ALBANIA/MONTENEGRO LAKE SKADAR-SHKODER
Project Name
INTEGRATED ECOSYSTEM MANAGEMENT
Public Disclosure Authorized
Region
EUROPE AND CENTRAL ASIA
Sector
General agriculture, fishing and forestry sector (100%)
Project ID
P084605
GEF Focal Area
International waters
Borrower(s)
GOV. OF ALBANIA AND GOV. OF MONTENEGRO
Implementing Agency

Republic of Albania
Ministry of Environment, Forests and Water Administration

Republic of Montenegro
Ministry of Tourism and Environmental Protection

Public Disclosure Authorized
Environment Category
[ ] A [ X] B [ ] C [ ] FI [ ] TBD (to be determined)
Date PID Prepared
July 2, 2008
Date of Appraisal
March 17, 2008
Authorization
Date of Board Approval
May 27, 2008
1. Country and Sector Background

1.1 . Lake Skadar-Shkoder, the largest lake on the Balkan Peninsula in terms of water surface,
is on the border between Montenegro and Albania in the Southern part of the Dinaric Alps. Its
drainage area is about 5,500 km2 (4,470 km2 in Montenegro and 1,030 km2 in Albania), and it
Public Disclosure Authorized
drains to the southeast through the Buna-Bojana River to the Adriatic. The proposed project area
consists of the lake and adjacent areas directly served by the lake. In Albania about 170,000
people live in the project area in seven municipalities and rural communes, within three Regions
of the Shkodra District. In Montenegro about 12,500 people live in the project area, distributed
among 40 small settlements within three municipalities (the larger Montenegro lake watershed
has a population of about 250,000). Both countries have declared protected areas around parts of
the Lake to strengthen overall lake protection, however, capacity is relatively well established in
Montenegro, and in Albania, a management authority is being established only in 2008.

1.2 Lake
Skadar-Shkoder has features unique among the world's major lakes--a unique
ecology and natural beauty with enormous tourist potential. The lake's complex freshwater
ecosystem, associated wetlands, floodplains, and karstic features provide valuable environmental
benefits to surrounding communities (e.g. fisheries, drinking water, recreation), and contribute to
Public Disclosure Authorized
national and regional economic and cultural assets. However, these same characteristics also
contribute to lake ecosystem fragility.

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· Karstic origin - Lake Shkodra is Europe's largest karstic lake, formed relatively recently
in a shallow subsiding tectonic depression within limestone from the Dinaric chain. The lake
can be considered at least in part the outcrop of a large transboundary karstic groundwater
aquifer which connects Lake Shkodra, through the Drin River Basin, to Lake Ohrid, and
Lake Prespa, two other karstic "Balkan lakes".
· Short water residence time/ shallow, fluctuating depth - The lake has high levels of water
circulation and mixing--average water residence is about 120 days. The lake is shallow,
fluctuating from 5 to 10 meters and groundwater from the lake's deeper parts (western side)
mix with surface water inflows preventing stratification. Periodic flooding occurs on the
flatter, eastern and northern shores, expanding the surface area in wet weather.1
· Complex conditions at the outlet - The lake outlet, the River Buna-Bojana, has weak
transport and erosive capacity to remove sediments from the river bed, due to the low
gradient of its channel bed.2 Sediment accumulates, impeding the lake's out-flowing waters,
naturally regulating the water level, and flooding the surrounding lands. High discharge in
the Drin River and low water levels in the lake create reverse/backflows. Recently landfills
from new construction have narrowed the outlet.
· High water temperature - Due to its low elevation, southern location, and shallow water
Lake Shkoder has high water temperatures, causing high rates of organic decomposition, and
because the lake never freezes, it is a prime winter location for birds.

1.3
During the 1990s, Albania and Montenegro experienced severe economic decline
accompanied by the collapse of many industries and large agricultural enterprises within the
watershed. This was bad for people's livelihoods but good for the lake because it reduced
sources of industrial pollution. Now, both governments want to revive the local economic base
and attract private investment but they face several potentially conflicting development options
and strategies for the water and natural resources--tourism as a major economic driver,
hydropower production in both countries,3 and a Buna-Bojana waterway proposal that would be
formed by dredging the river bed and lake outlet. Furthermore, Albania is experiencing rapid
population growth, which has been accompanied by illegal construction in lakeside areas.

1.4
However, many factors support commitment for environmental protection. National and
local governments and local residents in both countries see tourism as the main engine for
economic development of the Lake Skadar-Shkoder area, and national spatial and sectoral
strategies identify it as a priority special interest area to develop nature, culture, and recreation-
based tourism, which depends heavily on environmental quality. Therefore tourism that is
planned and regulated is preferable to many alternative economic activities. However, tourism is
now growing rapidly--unplanned and unregulated--in the Lake Skadar-Shkoder, threatening the
lake's potential as an economic asset through inappropriate construction, untreated wastewater,
poor solid waste management, over fishing and so forth.
1 Lake total surface area varies: 353 km2 in dry periods and 500 km2 in wet periods (at maximum level, 335 km2 is in
Montenegro and 165 km2 in Albania). Lake volume varies: 1.7 km3 in dry periods to 4.0 km3 during wet periods.
2 Floods between 1848 and 1896 diverted the Drin River (Albania), whose watershed is around 14,000 km2, towards the west into
the Buna-Bojana River, a few hundred meters from the lake outlet. Large volumes of sediment raised the river bed and increased
the water level by several meters. Heavy flow in the Drin river sometimes impedes the outflow from the lake in Buna-Bojana.
3 1) Moraca Hydropower System in the Moraca River basin in Montenegro, and 2) Bushati Hydropower Plant on the
Drin River in Albania. These hydropower proposals are of bilateral interest because both countries have rising
energy demands and shared water resources.

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1.5
These current trends provide a window of opportunity for strategic, coordinated action to
set Lake Skadar-Shkoder on a path of ecological and economic sustainability. Both governments
seek to harmonize their policies, legislation, and practices with European Union (EU) Directives,
including the EU Water Framework Directive, which sets standards for water quality and calls
for integrated watershed management and transboundary cooperation. In 2003, the two
Ministries of Environment signed a Memorandum of Understanding (MoU).4 It calls for joint
monitoring of air, water and soil quality, and pollution; cooperation in environmental impact
assessment; common strategies to develop clean industries and energy; cooperation to protect the
natural environment; creation of joint regulation to control international commerce of
endangered flora and fauna, industrial and toxic wastes, and other dangerous substances; joint
educational and training activities; and creation of working groups and an Action Plan for
implementation of the MoU. In December 2007, a detailed Bilateral Agreement5 was signed as
the legal instrument for joint cooperation for protection and management of the lake, including
establishing a Bilateral Lake Management Commission (BLMC).

1.6
A Transboundary Diagnostic Analysis (TDA) carried out during project preparation
identified major trends and factors affecting the the status of the lake's natural and economic
resources including the following:
· Proposals in both countries for economic development alternatives for the lake basin need
to be carefully evaluated and any potential threats to its ecosystem reported to
decisionmakers. Projects could affect the lake level, hydrology, and characteristic rapid
flushing, undermining the lake's ecological integrity and water quality.
· Water quality is generally good but unless economic revitalization and growth in the lake
basin is managed in an environmentally sustainable way, quality could deteriorate to pre-
1990s conditions or worse.
· Remaining pollution "hotspots" have transboundary implications, including industrial
facilities, untreated wastewater from lakeside and tributary cities and villages, and runoff
of agrochemicals and nutrients (aggravated by lost natural vegetation buffers).
· Fish populations, including commercially valuable migratory species, are declining,
perhaps due in part to increasing numbers of active fishermen since 1990, particularly on
the Albanian side (many using illegal methods such as electrical shock and fish traps),
and in part due to localized pollution and habitat destruction.

1.7
Fish are the lake's most significant natural resource in terms of contribution to local
economies and employment and their mobility makes transboundary cooperation essential for
sustainable management. Some of the lake's most valuable fish species are threatened by over-
exploitation and habitat degradation. Both governments have institutions and personnel in place
to regulate fishing but lack information, mechanisms, and capacity to manage the fisheries on a
4 Memorandum of Understanding for Cooperation in the Field of Environment Protection and Sustainable
Development Principle Between the Ministry of Environment of the Republic of Albania and the Ministry of
Environment Protection and Physical Planning of the Republic of Montenegro.
5 Agreement Between the Government of the Republic of Montenegro and the Council of Ministers of the
Republic of Albania for the Protection and Sustainable Development of the Lake of Shkodra (Skadar) and its
Watershed.

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lake-wide basis. Excessive tree cutting, over-grazing, and destructive construction practices have
eliminated or degraded the vegetative buffer that helps to protect Lake Skadar-Shkoder from
non-point-source pollution and siltation from adjacent and upstream agricultural areas.

1.8
Improperly stored waste at the Kombinat Aluminijuma Podgorica (KAP) aluminum plant
(along the Moraca River) has been identified as the highest priority industrial threat to the lake,
specifically as a source of heavy metals, PCBs, and other toxic pollutants, which have been
detected in the lake water, adjacent springs, wells, and some fish. These pollutants emanate from
a large, unlined, uncovered dump site containing a mixture of non-hazardous and hazardous
wastes that have been accumulating since the early 1970s.

1.9
The TDA concluded that preventive action is needed to counter existing and iminent
threats, maintain lake hydrology, and protect it from a likely increase in pollution and other
environmental degradation in the context of expected economic renewal and physical
development. Based on the TDA, a joint (bilateral) Strategic Action Plan (SAP)6 was prepared
through a participatory process with a wide range of stakeholders in both countries. The SAP
establishes a long-term vision for lake management and sustainable development, including: (i)
Strengthen legal and institutional framework for environmental protection, sustainable natural
resource management, and transboundary cooperation and exchange; (ii) Reduce and prevent
lake water pollution; and (iii) Establish effective systems for sustainable management of natural
and cultural resources, including fisheries; and promote joint sustainable tourism development.

2. Objectives

Project Development Objective:
2.1 The Project Development Objective is to help establish and strengthen institutional
mechanisms for transboundary cooperation through joint efforts to improve sustainable
management of Lake Skadar-Shkoder.

Global Objective:
2.2 The global project development objective is to maintain and enhance the long-term value
and environmental services of Lake Skadar-Shkoder and its natural resources.

Key Indicators:
2.3
· One year prior to project close, governments budgets will support operational costs of
maintaining and participating in the Bilateral Lake Management Committee, and lake-
wide database.
· Greater than 50% reduction in fishermen using illegal fishing practices.
· Agreement between Government of Montenegro/KAP owners (Rusal) on solution and
joint action plan to contain/dispose of hazardous wastes at KAP site.
· Established demonstration sewage collection and wastewater treatment system at
Vranjina village.

6 Available on Government of Albania, Government of Montenegro, and GEF/International Waters websites.

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3. Rationale for Bank Involvement

3.1
The project builds on and complements existing World Bank programs in both countries
to support environmental protection and economic development. The Bank has experience
implementing transboundary waters, sustainable tourism development, and natural resource
management projects across the region and internationally. The project contributes to Country
Assistance Strategy (CAS) objectives in both countries by strengthening public institutions that
protect and manage Lake Skadar-Shkoder, and provides an enabling environment for private
sector development in the tourism sector. The Montenegro CAS also calls for strengthening
regional cooperation and supporting their constitutional commitments to be an ecological state.
The Albania CAS focuses on governance and identifies the need to build institutional capacity
for law enforcement, among other elements. The project will strengthen regulation of water,
land, and natural resource use that affect lake water quality and economic value and contribute to
improved environmental services. The project is part of a broader Bank effort to assist
Montenegro and Albania to harmonize their environmental and natural resource management
regulations and practices with the EU environmental acquis.
3.2
Among GEF implementing agencies, World Bank comparative advantage is well
recognized in downstream implementation phases of actions plans. At a regional level, the
project supports implementation of the World Bank/German Government supported "St.
Petersburg Process," which facilitates debate on transboundary water management problems and
integrated approaches to resolving them. It directly supports Phase II of this process, which
focuses on South Eastern Europe.

4. Description

4.1
The project is based upon the joint Strategic Action Plan (SAP) for Lake Skadar-Shkoder,
which represents a long-term program of ongoing and proposed activities financed by the two
governments and by external donors. Some of the activities to be financed by the project will be
implemented jointly by the two countries through a bilateral Lake Management Committee
(BLMC) and associated Working Groups. Other activities will be carried out in each country,
but have lake-wide benefits.

4.1.1. Component 1: Capacity Building for Improved Understanding and Joint
Management of the Lake (Total: US$3.42 million; GEF: US$1.80 million) This component
builds capacity to establish and strengthen institutional cooperation to operationalize the
Bilateral Lake Management Committee. Technical working groups will be established to support
SAP activities including: develop a lake-wide management plan; raise public awareness and
conduct public education programs; and coordinate tourism planning and marketing. The
component will also support incremental activities with a transboundary dimension beyond
ongoing national-level water and ecological monitoring and research on the lake including: (a)
create a predictive hydrological model of the lake basin; (b) research and monitor to better
understand impacts of changes in inflowing water quantity and quality; and (c) harmonize
monitoring on both sides of the lake through a publicly accessible joint database. Under this
component the project will engage with GEF International Waters Learning Exchange and
Resource Network IW:LEARN, which includes project promotional materials, participation in

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international workshops, and data exchange. A key output of this component will be improved
information and coordination for transboundary decision-making.
4.1.2 Component 2: Promoting Sustainable Use of the Lake (Total: US$4.79 million; GEF
US$1.06 million). This component will promote adoption of sustainable approaches to economic
development of the lake (and its natural resources) by focusing on tourism and fisheries where
there is high potential for economically significant sustainable use. It will support
environmentally and socially sustainable tourism by improving nature- and culture-based
facilities and attractions; raising public awareness; and providing technical assistance to local
residents considering tourism-based businesses. It will support sustainable fisheries management
by helping to develop lake-wide stock assessment and fisheries management plans and by
integrating plan results and recommendations into national plans, regulations, and programs. In
response to this assessment, the project will provide incentives for fishermen to cease illegal
fishing methods and help strengthen government regulatory and enforcement capacity for
fisheries management.

4.1.3 Component 3: Catalyze Pollution Reduction Investments (Total: US$11.51 million;
GEF: US$1.69 million). This component will support selected investments to stimulate
pollution reduction activities: educate and encourage people to replicate demonstration projects
of village-level wastewater treatment and buffer vegetation restoration; and provide TA to
catalyze remediation of the lake's largest-scale industrial pollution "hotspot." A demonstration
pilot project for wastewater treatment, based on constructed wetlands, is proposed for the village
of Vranjina in Montenegro, in locations visible along the lake and the main road to facilitate
education and promote replication. Technical assistance will be provided to the Government of
Montenegro to prepare for a large-scale remediation investment. The government has budgeted
an initial 5.0 million to invest at the site, however the full cost can be determined only upon
completing an inventory, feasibility study, and site remediation design. Project TA funds will
support an inventory and characterization of on-site waste and feasibility study/preliminary
design of options study for remediation, recycling, and/or disposal. The TA would include an
international adviser to assist regulatory authorities' work on the KAP site, and some financial
support for an EIA on recommended actions from the feasibility study. Restoration of lakeshore
buffer vegetation to protect against siltation and chemical run-off will be demonstrated in
Albania. This includes: (a) Restore prioritized lakeside groves (willows and other native trees) in
erosion-prone areas; (b) Implement stream bank erosion control at one site through combined re-
vegetation, gabions, and other small infrastructure; and (c) Support community-driven vegetation
and restoration sites (prioritizing buffer vegetation for fish nursery areas

5. Financing
Source: ($m.)
BORROWER/RECIPIENT 0.74
GLOBAL ENVIRONMENT FACILITY
4.55
OTHER DONORS
5.90
LOCAL SOURCES OF BORROWING COUNTRY
8.57
Total
19.76

6. Implementation

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6.1
Project implementation arrangements will be streamlined within the existing structures of
the two governments to ensure strong government ownership and to minimize strains on
capacity. The Albanian Ministry of Environment, Forests and Water Administration (MEFWA)
and the Montenegro Ministry of Tourism and Environmental Protection (MTEP) will have
overall responsibility for project implementation, in coordination with partners in sectoral
Ministries, local governments, and universities. MTEP and MEFWA, through subordinated
units, are directly responsible for on-the-ground management of the lake and immediately
surrounding areas because the area on both sides of the border falls within formally established
Protected Areas (PAs). In Albania, MEFWA is also the Ministry responsible for protected areas,
water management, and fisheries. In Montenegro, general water management falls under the
Ministry of Agriculture, Forestry and Water Management, but Lake Skadar-Shkoder is a special
case--due to its PA status, responsibility is delegated. MTEP and MEFWA have each appointed
a Project Director (Ministry staff), and Project Coordinators (project-financed staff) and will
nominate representatives for the Bilateral Lake Management Commission and Working Groups,
according to agreed Terms of Reference.

6.2.
In Albania, a Project Coordinator based in Shkodra will be responsible for day-to-day
implementation, overseen by a Project Director (MEFWA Department Head) in Tirana. All
procurement and financial management actions will be centralized and rely on contracted part-
time experts with World Bank project experience. Some Albanian grant activities will have
technical leadership by the BLMC Secretariat, the Management Unit for the Shkoder Lake
Managed Nature Reserve (SLMNR), and the SLMNR together with Shkodra Municipality.

6.3.
In Montenegro, a Project Coordinator housed within MTEP in Podgorica will be
responsible for day-to day project implementation, overseen by a Project Director (Assistant
Minister in MTEP). All procurement and financial management will be centralized through
contracting to the Technical Services Unit (TSU) that supports many World Bank projects in
Montenegro. Some Montenegro grant activities will be lead by the BLMC Secretariat, the Public
Enterprise for National Parks (located on the Lake), the municipality of Podgorica, and a MTEP
Steering Committee for KAP site work. Other government departments, agencies, or
organizations that are beneficiaries or involved in implementing project activities, will do so
under sub-project agreements signed with MTEP (Montenegro) or MEFWA (Albania).

6.4.
The February 2008 Bilateral Agreement legally established a Bilateral Lake Management
Commission (BLMC) that includes government and civil society, as the main steering
mechanism to implement the SAP and provide a forum to reach concrete agreements on lake
management issues. The BLMC will convene Working Groups of technical specialists and local
stakeholders to identify priorities and facilitate coordination/action on Planning and Legal;
Monitoring and Research; Communications/Outreach and Sustainable Tourism Development;
and Water Management. The BLMC and Working Groups will be served by a small Secretariat
(co-located with the Project Coordinator in Albania) to facilitate communications, meetings and
outreach, and administrative reporting to the two Project Directors in MEFWA and MTEP. The
Secretariat head will be paid through the project on a declining basis. Procurement and financial
management of BLMC activities will remain centralized under coordination of the two country-
specific Project Coordinators. MEFWA and MTEP, through the Joint Bilateral Lake
Management Commission, will coordinate with any non-implementing institutions that are

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important actors and stakeholders. For example, the Drin­Bunė River Basin Administration
(chaired by the Prefect of Shkodra) covers the entire Lake Shkoder watershed in Albania, and the
Water Administration Agency in Montenegro has a lead role in implementing integrated water
management in line with the EU Water Framework Directive.

6.5.
A Project Implementation Manual, prepared in draft for negotiations, specifies project
implementation, reporting, and monitoring processes and responsibilities. All activities will
emphasize regular and substantial stakeholder involvement, particularly that of local
communities and NGOs.

7. Sustainability

7.1
The project supports government priorities and international commitments directly
aligned to the project objectives. Both countries are working to harmonize their legal and
institutional frameworks with the EU environmental acquis and Directives, including adopting a
coordinated, integrated watershed approach to managing transboundary water bodies. Finally,
both countries are committing substantial own-budget resources and donor assistance for
activities that support project activities and objectives.

7.2.
Existing organizations are responsible for implementation: (Government Ministries,
agencies; national research institutes), or bodies that the governments are committed to
maintaining over the long term (the BLMC). The bilateral Working Groups formed under the
project may continue, or be reconstituted at project close to focus on other priorities. The BLMC
costs will be supported on a declining basis to enhance sustainability. The project supports
inclusion of parameters that are significant in a transboundary context--annual monitoring costs
will continue, approximately at current levels rather than being artificially increased during the
project life. The project promotes sustainable tourism and natural resource use, in contrast to
current less sustainable practices. It will help the Government of Montengro solve the problem of
KAP legacy wastes, demonstrate an environmentally sustainable small-scale wastewater
treatment facility, and help restore degraded buffer habitats. For all these reasons, the likelihood
is high that project outputs and outcomes will continue beyond the project life .

8. Lessons Learned from Past Operations in the Country/Sector

8.1 Project preparation benefited from several past Bank-financed projects and programs for
coordination of transboundary water bodies and other natural areas. Specific lessons from the
completed Macedonia/Albania Lake Ohrid project include:

· Identify critical data needs early to tailor ecological monitoring; partner with local
scientific community. The Project Implementation Completion Report (ICR) stated that
closer attention to these aspects could have established more practical and sustainable
monitoring programs and avoided financing nonessential equipment and infrastructure.
· Invest early in intensive public awareness and education to achieve stronger stakeholder
involvement and active participation in project activities.
· Develop and maintain open dialogue to create goodwill and trust among key
stakeholders--collaboration, compromise, and consensus-building are essential for joint

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decision making and this takes time to achieve. The project can support joint activities,
exchange visits, and so forth.
· Grant-financed projects can help leverage other spin-off projects (e.g., financing of major
infrastructure investments), which enhance project impact. Visibility efforts and concrete
action plans can attract other donors.

8.2.
The proposed project responds to these lessons by including a substantial budget for
bilateral meetings, visibility events, study tours, and jointly designed and implemented public
communications and outreach. The Strategic Action Plan and the Lake Commission will help
coordinate donors; monitoring lake-wide water quality and ecosystem parameters is designed to
complement routine ecological monitoring in both countries using local laboratory expertise.

8.3.
Other GEF and WB projects (e.g., Baltic Sea; Caspian Sea, Serbia Danube Enterprise
Reduction) provide lessons such as the importance of combining "bottom-up" planning and
implementation (and local economic benefits) with "top-down" (e.g., policy level) support; and
the value of high-visibility transboundary agreements, institutions, and programs that enable
national authorities to carry out their regulatory responsibilities. The Albania Integrated Coastal
Zone Management and Clean-up Project, Fisheries Development Project, and Natural Resources
Development Project provide Albanian experience directly relevant to the importance of
involving local communities in planning and sustainable natural resource management and
mechanisms for doing so. A study tour to the transboundary Lake Neusiedl-Ferto (shared by
Austria and Hungary) generated ideas and potential project design models; for example, effective
cooperation is possible despite substantial differences in the countries' institutional structures.
The study tour also highlighted the importance of creating a supportive environment for local
economic development, suggested innovative mechanisms to involve people from nearby
communities in day-to-day lake management, and illustrated the value of restoring terrestrial
habitats to maintain aquatic ecosystems. The project design was inspired by other institutional
structures and models for cooperative management of transboundary lakes such as the
International Commission for the Protection of Lake Geneva; the Lake Constance Environmental
Council; and the Estonian-Russian Transboundary Water Commission.

9. Safeguard Policies (including public consultation)

9.1
The project is classified Category B; activities are expected to have limited impacts that
are primarily environmentally neutral (e.g., establishing transboundary institutions) or positive
(e.g., treating wastewater, restoring ecological balance, promoting more sustainable practices).
Minor construction impacts are expected, related to small-scale wastewater investment, physical
improvements at cultural monuments, and small-scale civil works in parks. An environmental
management plan will be prepared for these investments, detailing mitigation measures required,
roles and responsibilities to prevent negative impacts during construction and operations. The
TORs for construction contracts will incorporate the EMPs in the agreements. Support to the
KAP site includes funds to prepare an EIA (to meet category A-type investment standards) of
recommended remediation options from a project-financed feasibility study. Although the
project provides only TA for this site, it requires close supervision and oversight by Bank
environment specialists given the complexity of environmental issues. The project will finance
an international adviser to strengthen supervision capacity for this activity.

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Safeguard Policies Triggered by the Project
Yes
No
Environmental Assessment (OP/BP 4.01) [x]
[
]
Natural Habitats (OP/BP 4.04)
[x] [
]
Pest Management (OP 4.09)
[ ]
[x]
Cultural Property (OPN 11.03, being revised as OP 4.11)
[x] [
]
Involuntary Resettlement (OP/BP 4.12)
[x] [
]
Indigenous Peoples (OP/BP 4.10)
[ ]
[x]
Forests (OP/BP 4.36)
[ ]
[x]
Safety of Dams (OP/BP 4.37)
[ ]
[x]
Projects in Disputed Areas (OP/BP 7.60)*
[ ]
[x]
Projects on International Waterways (OP/BP 7.50)
[x] [
]
4.01
Environmental Impact Assessment:
Environmental Impact Assessment:
An
Environmental Impact Assessment has been carried out and publicly disclosed in both countries.
The EIA describes potential activities and outlines the assessment and permitting processes for
such investments in accordance with Government and World Bank policies and procedures. The
EIA also
reviews each country's legislative and regulatory frameworks and
implementation/enforcement capacity to assess their compatibility and adequacy for World Bank
requirements; evaluates potential project environmental risks and impacts, including
transboundary impacts, and international obligations; examines project alternatives; identifies
improvements for project selection, siting, planning, design, and implementation by preventing,
minimizing, mitigating, or compensating for adverse environmental impacts and enhancing
positive environmental impacts; and describes the process for developing environmental
monitoring and mitigation plans (EMPs) for specific investments. Environmental procedure
details are in the project Implementation Manual, including processes and responsibilities.

4.04
Natural Habitats : This OP is triggered because the area surrounding the lake comprises
legally designated PAs and Ramsar sites and because some on-the-ground works will be
financed within these protected areas--for example, an ecological campground, waterfowl
monitoring stations, and a village-level artificial wetland wastewater treatment facility.

4.11 Cultural Property: This OP is triggered because legally designated cultural heritage sites
exist within the project area (e.g., old monasteries) and some will be refurbished for tourism and
education purposes. Special measures will be taken in the design and construction work,
including assurance of close consultations and permissions from legal bodies responsible for
cultural heritage in each country.

4.12 Involuntary resettlement. The project will not finance land acquisition; and project activities
will not require or entail any land acquisition and/or physical relocation of people. The project
may require involuntary restriction of access to natural resources in legally designated protected
areas as background studies indicate that over-fishing likely represents a significant threat to the
* By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the
disputed areas

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sustainable use of the lake ecosystem. The extent of over-fishing will be assessed during the first
project year through a detailed study of fish resources. Reducing fishing pressure to achieve
sustainability could restrict livelihoods for some local residents so Resource Access Restriction
Process Frameworks were prepared for both countries in accordance with WB OP/BP 4.12. The
process framework does not address resettlement associated with possible demolitions by
ongoing government programs in accordance with their law. Planning supported under this
project only addresses natural resources management planning at a regional level which does not
trigger O.P. 4.12. These Process Frameworks have been publicly disclosed together with the
draft EIA and were submitted to the World Bank with cover letters endorsing the Frameworks.

7.50
International Waterways: Lake Skadar-Shkoder empties into the Adriatic Sea via the
transboundary Buna-Bojana River. The project will not finance investments that abstract water
and the interventions will be environmentally positive (reducing pollution inputs to the lake).
However, in accordance with Bank policy, this OP is triggered by the project's small-scale
investment in rural wastewater treatment with constructed wetlands in Montenegro. Notification
of the Adriatic states has been done through UNEP, which serves as the Secretariat for the
Barcelona Convention for the Protection of the Mediterranean Sea against Pollution.
10. List of Factual Technical Documents

1.
Project Concept Note
2.
Albania: Environmental Impact Assessment
3.
Albania: Resource Access Restriction Process Framework
4.
Republic of Montenegro: Environmental Impact Assessment
5.
Republic of Montenegro: Resource Access Restriction Process Framework
6.
Joint Strategic Action Plan
7.
PDF B Audit of the Annual Financial Statements for the year ended 31st. December 2006
8.
Lake Shkoder/Skadar: Transboundary Diagnostic Analysis Report
9.
Lake Shkoder Integrated Ecosystem Management Project: "Support for Preparation
Revision of Montenegrin Draft Water Law ­ Final Report, February 20, 2006
10.
Lake Skadar: Health Screening Assessment Report
11.
Social Surveys
12.
Draft Implementation Manual for the Lake Skadar-Shkoder Integrated Ecosystem
Management Project
13
Zero State Analysis (Environmental Audit) of KAP Site
14.
Agreement Between Ministry of Tourism and Environment of Republic of Montenegro
and Ministry of Environment, Forestry and Water Administration of Republic of Albania
for the Protection and Sustainable Development of the Skadar/Shkodra Lake (February
25, 2008)
11. Contact point
Contact: Karin Shepardson
Title: Senior Operations Officer
Tel: (202) 458-1398
Fax: (202)-614-0696
Email: KShepardson@worldbank.org

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12. For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-4500
Fax: (202) 522-1500
Email: pic@worldbank.org
Web: http://www.worldbank.org/infoshop

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