PROJECT DEVELOPMENT FACILITY
REQUEST FOR PIPELINE ENTRY AND PDF BLOCK B APPROVAL
AGENCY'S PROJECT ID:
GEFSEC P
FINANCING PLAN (US$)
ROJECT ID: 2602
C
GEF A
OUNTRY: Egypt
LLOCATION
PROJECT TITLE: Investment Fund for the
Project (estimated)
7,500,000
Mediterranean Sea LME partnership:
Project Co-financing
70,000,000
Alexandria Integrated Coastal Zone
(estimated)
Management Project
PDF A*
GEF AGENCY: World Bank
PDF B**
350,000
OTHER EXECUTING AGENCY(IES):
PDF C
DURATION: 18 months
Sub-Total GEF PDF
350,000
GEF FOCAL AREA: IW
PDF CO-FINANCING (details provided in
GEF OPERATIONAL PROGRAM: OP9
Part II, Section E Budget)
GEF STRATEGIC PRIORITY: IW-1 Catalyzing
IBRD/IDA/IFC
financial resources for implementation of agreed
Government Contribution
actions
E
Others
STIMATED STARTING DATE: July 2005
E
Sub-Total PDF Co-
STIMATED WP ENTRY DATE: June 2006
P
financing:
IPELINE ENTRY DATE: MAY 2005
Total PDF Project
350,000
Financing:
* Indicate approval date of PDFA:
** If supplemental, indicate amount and date of
originally approved PDF:
RECORD OF ENDORSEMENT ON BEHALF OF THE GOVERNMENT:
Date
Ms. Fayza Aboul Naga
09/28/2004
Minister of International Cooperation
This proposal has been prepared in accordance with GEF policies and procedures and
meets the standards of the GEF Project Review Criteria for approval. Approval is being
sought for pipeline entry only at this stage.
Project Contact Person
Dahlia Lotayef
Steve Gorman
GEF Regional Coordinator
GEF Executive Coordinator, World Bank
Middle East and north Africa
Concept/PDF Template: Version 2
March 2004
Date:
1
May 13, 2005
Tel. and email (202) 473-5439
dlotayef@worldbank.org
PART I - PROJECT CONCEPT
A - SUMMARY
1. STRATEGIC FRAMEWORK
The countries of the Mediterranean Sea basin1 face a variety of shared environmental
problems that are transboundary in nature. Key to the success in addressing
transboundary problems is the joint political commitment of all countries in the basin.
With the support of the GEF, UNEP, UNEP/MAP, and FFEM, and consistent with the
GEF Operational Strategy, the Mediterranean countries have collaborated within the
context of the Barcelona Convention to revise the Transboundary Diagnostic Analysis
prepared in 1997, and have agreed on the major transboundary environmental concerns
for the basin. The Mediterranean countries have also worked together to set priorities
related to these transboundary problems and have jointly agreed on what interventions are
needed to address such priorities through two Strategic Action Programs (SAPs):
· The Strategic Action Program to Address Pollution from Land-Based Activities
(SAP MED); and
· The Strategic Action Program for the Conservation of Mediterranean Marine and
Coastal Biological Diversity (SAP BIO).
The two Strategic Action Programs are aimed at: (i) reducing land-based sources of
marine pollution (SAP-MED) and (ii) protecting the biodiversity and living resources of
the Mediterranean, as well as their habitats (SAP-BIO).
In order to accelerate on the ground implementation of the SAPs, and assist with the early
implementation of the ICM Protocol, a collective effort for the protection of the
environmental resources of the Mediterranean - the Strategic Partnership for the
Mediterranean Sea Large Marine Ecosystem - is being proposed by UNEP and the
World Bank to all the countries of the Mediterranean and to all international cooperation
Agencies, IFIs and bilateral and multi-lateral donors. The proposed Partnership which
builds upon the model and lessons learnt from the GEF Black Sea/Danube Partnership
is a basin-wide multi-stakeholder collaboration with the main objective to assist basin
countries in implementing reforms and investments in key sectors that address
transboundary pollution reduction, biodiversity decline, habitat degradation and living
resources protection priorities identified in the two SAPs. The Partnership will serve as a
catalyst in leveraging policy/legal/institutional reforms as well as additional investments
for reversing degradation of this damaged large marine ecosystem its contributing
freshwater basins, habitats and coastal aquifers. Interventions supported under the
Strategic Partnership will be mainstreamed into the programs of the GEF Implementing
and Executing Agencies.
1 Albania, Algeria, Bosnia and Herzegovina, Croatia, Cyprus, Egypt, France, Greece, Israel, Italy, Lebanon,
Libya, Malta, Monaco, Morocco, Serbia and Monte Negro, Slovenia, Spain, Syria, Tunisia, and Turkey, are
riparian countries. Bulgaria, FYR Macedonia and West Bank and Gaza are included as part of the broader
Mediterranean basin. SAPs have been endorsed by all riparian countries and the EU. All countries except
Cyprus, France, Greece, Israel, Italy, Malta, Monaco, Slovenia and Spain are eligible for GEF support.
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The proposed Strategic Partnership consists of the two components reflecting each
agency's comparative advantage:
· Regional Component: Implementation of Regional Activities for the Protection of
the Environmental Resources of the Mediterranean and its Coastal Areas (UNEP)
· Investment Fund for the Mediterranean Sea Large Marine Ecosystem Partnership
(World Bank).
The present Concept describes a proposed project to be implemented in Egypt under the
Investment Fund of the Partnership (World Bank).
2. PROJECT RATIONALE
The proposed project is consistent with and will contribute to the ground
implementation of the goals of the Strategic Action Programme (SAP) for the
Mediterranean Sea in Egypt. The pollution discharge from land-based sources in the "hot
spot" areas of Alexandria and El-Mex Bay, Egypt, will be addressed by targeted
investments for pollution reduction, new financing mechanisms and local coastal
management bodies, and technology transfer. Experiences from the demonstration project
in Alexandria will be upstreamed to the national level to mainstream pollution reduction
strategies, integrated coastal zone management (ICZM) and environmental objectives
into sectoral and national planning in other similar highly degraded lagoon systems in
Egypt and elsewhere in the region.
The project is blended with the Egypt: Pollution Abatement Project 2 (EPAP2),
which will address industrial pollution in the Alexandria area. The GEF project and
EPAP2 will promote environmental integration with the Lake Mariout component of the
City Development Strategy (CDS) for Alexandria as well as the CDS-related Bank-
financed project, Alexandria Growth Pole Project (AGPP). It will also be closely linked
to the potential World Bank Water Supply and Sanitation Project which has received the
green light from the Ministry of Housing to address the sewage situation in Alexandria
with the new holding company.
Project development objective is: a) to reduce the load of land-based sources of
pollution (industrial and domestic) entering the Mediterranean Sea in the "hot spots" of
El-Mex Bay and Alexandria; and b) to protect/restore globally significant coastal heritage
and ecosystem processes by supporting the Government of Egypt's efforts to develop and
implement a National Coastal Zone Management Plan ..
Project global environment objective is: to implement the Strategic Action Plan
(SAP-MED) towards the targets set for the discharge of municipal and industrial
wastewater and contribute towards the GEF Partnership for the Mediterranean large
Marine Ecosystem
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B - COUNTRY OWNERSHIP
1. COUNTRY ELIGIBILITY
Egypt is eligible for GEF assistance in the International Waters Focal Area through
the World Bank.
Egypt has had several successful GEF projects under the Biodiversity Focal Area, but
is generally underrepresented in terms of GEF International Waters funding. The
GEF/UNDP Lake Manzala project will be taken into consideration during the preparation
of this project, as a good successful model for replication in Egypt and other countries in
the region with similar conditions.
2. COUNTRY DRIVENNESS
The proposed project is an important block in the ongoing Environmental
Dialogue between the Government of Egypt and the Bank. It is blended with the Egypt:
Pollution Abatement Project II (EPAP II) which is addressing industrial pollution
reduction in Lake Mariout and will be linked to a potential World Bank project on
sewage in the City of Alexandria. It is closely coordinated with the City Development
Strategy (CDS) for Alexandria which has identified the restoration of Lake Mariout as
the main environmental priority for the city. It is also linked to a World Bank Project to
implement the CDS action plan, Alexandria Growth Pole Project (AGPP), whose
objective is to support Alexandria Governorate in its efforts to attract private investment,
address high priority investment needs in infrastructure, land development around Lake
Mariout, urban upgrading and creation of economic opportunities. The Governor of
Alexandria, in a letter to the World Bank dated 9 of May 2004, has requested the Bank to
apply for coastal zone funding for the city upgrading. Also, the Egyptian Government,
through its Environmental Affairs Agency, which has since 1996, taken positive steps
towards Integrated Coastal Zone Management (ICZM) has expressed its interest in an
ICZM project in Alexandria. All resources and expertise of the Egyptian Environmental
Affairs Agency (EEAA) will be made available to the project and the Egyptian
government will provide a counterpart contribution to the project to facilitate its
operation and implementation.
The Country Environmental Assessment (CEA) for Egypt shows that the high rate of
urban development, expanding industrial and tourism activities, adversely affect the
marine and coastal environment. The CEA suggests some urgent actions to strengthen
ICZM in Egypt.
C PROGRAM AND POLICY CONFORMITY
1. PROGRAM DESIGNATION AND CONFORMITY
The proposal is consistent with the IW OP 9: Integrated Land and Water Multiple
Focal Area Operational Programme and its objectives to undertake a series of projects
that involve helping countries to address transboundary environmental concerns
degrading specific water bodies; and is consistent with the GEF's International Waters
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Strategic Priority I `Catalyze financial resource mobilization for implementation of
reforms and stress reduction measures agreed through TDA-SAP or equivalent processes
for particular transboundary systems' by building and strengthen institutional capacity
for reducing land based sources of pollution, implementing coastal zone management at
local and national levels, and provide support for targeted investments.
The Alexandria Integrated Coastal Zone Management project described herein is
the forst project from the MNA region proposed for GEF co-financing under the
proposed World Bank/UNEP/GEF Strategic Partnership for the Mediterranean Sea Large
Marine Ecosystem to assist countries in implementing policy reforms and priority
investments that address transboundary pollution reduction and biodiversity conservation
priorities identified in two Strategic Action Plans (SAP) for the Mediterranean Sea. The
Partnership would support capital investments, economic instruments, implementation of
policy reforms, strengthening of public institutions and public participation through two
elements: a regional technical assistance project, implemented by UNEP and an
Investment Fund, implemented by the World Bank
The Investment Fund under the GEF partnership would primarily finance investments
that support achieving the pollution reduction and biodiversity conservation targets
agreed by the basin countries under SAP MED and SAP BIO, including domestic and
industrial wastewater treatment; wetland restoration and/or construction; improved
management of watershed and aquifers for habitat conservation and pollution reduction;
protection of endangered natural habitats and sensitive areas.
TheAlexandria Coastal Zone Management Project would assist the Government of
Egypt and the Governorate of Alexandria towards meeting selected SAP MED targets.
For municipal wastewater the target is to "By the year 2005, to dispose sewage from
cities and urban agglomerations exceeding 100,000 inhabitants and areas of concern in
conformity with the [LBS] Protocol". The proposed targets for industrial development are
" By the year 2025, point source discharges and air emissions into the Protocol Area from
industrial installations to be in conformity with the Protocol and other agreed
international and national provisions; Over a period of 10 years, to reduce by 50%
discharges, emissions and losses of substances that are toxic, persistent, and liable to
bioaccumulate from industrial installations; Over a period of 10 years, to reduce by 50 %
discharges, emissions, and losses of polluting substances from industrial installations in
hot spots and areas of concern.". Targets for physical alterations and destruction of
habitats are "to safeguard the ecosystem function, maintain the integrity and biological
diversity of species; and where practicable, to restore marine and coastal habitats that
have been adversely affected by anthropogenic activities".
The SAP MED targets would be achieved by activities at national level such as:
- by 2005, coastal cities and urban agglomerations of more that 100,000 inhabitants
to be connected to a sewer system and dispose all waste water in conformity with
a national regulation system:
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- locate coastal outfalls of sewage so as to obtain and maintain agreed
environmental quality criteria and avoid exposing shell fisheries, water intakes,
bathing areas, and sensitive environments
- to promote the primary, secondary and where appropriate and feasible, tertiary
treatment of municipal sewage discharge to rivers, estuaries and the sea;
- to promote the reuse of treated effluents for the conservation of water resources;
- to reduce discharges and emission of industrial pollutants as much as possible;
- to support programmes for integrated coastal zone management
2. PROJECT DESIGN
Problem Statement
The SAP MED has identified several "hot spots and sensitive areas" on the
northern coast of Egypt, which for several decades has been witnessing a continuous
increase in population, development and environmental degradation. Three of these "hot
spots" are located around Alexandria (Alexandria, El-Mex Bay, Abu-Qir Bay).
In 1905, the 370,000 inhabitants of Alexandria lived in an area of about 4 square
kilometers between the two harbors. Today, population is ten times higher and occupies
an area of about 300 square kilometers, with an ever-increasing demand for new land
development, including planned development of some 100 hectares of vacant land around
lake Mariout .Due to the expansion of the City of Alexandria, Lake Mariout has been
divided into five main basins by road infrastructure and is surrounded by urban and
industrial development. The demand for new land around the low laying lake is
extremely high and coastal areas are constantly encroached. The lake area today is only a
fraction of what it used to be. Sewage and industrial wastewater, in addition to the inflow
of nutrient-rich agricultural drainage water, have contributed to the degradation of water
quality and biodiversity in the lake which suffers from serious eutrophication. Seven
million cubic meter of water per day almost equivalent to the flow of the Rosetta
branch is being pumped from Lake Mariout into the hot spot El-Mex Bay in the
Mediterranean with impact on coastal biodiversity, cultural heritage and tourism in the
whole Alexandria area.
With its combination of an incredible cultural heritage, thriving urban community,
and one of the highest pollution loads to the Mediterranean, a GEF intervention in
Alexandria offers unique opportunities to make a regionally significant a reduction of the
pollution load reaching the Mediterranean Sea. The value added of GEF co-financing is
essential for securing the estimated USD70 million investments forseen under EPAP2
and a strong incentive for the implementation of the CDS action plan and potential World
Bank project on Water Supply and Sanitation. At the same time, improved environmental
quality in the coastal areas would strengthen Alexandria's competitiveness as a tourist
destination as well as improve the livelihood for a large number of marginalized user
groups such as fishing communities.
Project Components
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To secure these global, national and local,benefits three components are suggested
a) strengthening the national framework for sustainable coastal management; b) pilot
demonstration projects on reducing land-based pollution sources in the Alexandria area;
and c) monitoring and evaluation.:
Component 1: Policy, Planning and Implementation Tools for Integrated Coastal Zone
Management at national and local level.
This component would strengthen the capabilities of the Environmental Agency
(EEAA) to undertake Integrated Coastal Zone Management by:
· develop a national vision for the coastal zone of Northern Egypt, based on
Strategic Environmental Assessments (SEA) and Cost of Environmental
Degradation Assessments (COED);
· a demonstration activity on the establishment of a management committee
composed of local stakeholders of Lake Mariout;
· replication strategies to extend the experiences in Lake Mariout to other
similar coastal areas.
The proposed project will, based on a participatory process engaging a broad
range of local, regional, and national level stakeholders in identifying management and
investment needs to ensure a sustainable development of Egypt's Mediterranean coastal
areas. The national vision would put in place the enabling conditions to advance ICZM in
Egypt such as building a constituency for promoting ICZM, strengthening the existing
institutional and policy frameworks, conclude the work on a national ICZM plan and
impose the necessary authority for implementation and enforcement. Particular focus
would be put on supporting the participation of weaker user groups such as fishermen and
local communities in this process.
Lake Mariout is one of four major northern delta lakes in Egypt (Mariout, Edku,
Burollus, and Manzalah). This lake is one of the major sources of land based pollution to
the El-Mex Bay and surrounding areas identified as a "hot spot" in the SAP.
Traditionally, these lakes have produced about half of the total fish landings and income
from fisheries in Egypt, but are now in different states of degradation.. As a consequence
of the environmental degradation, Lake Mariout has changed from being the most
productive fisheries resource of the four lakes, to the least productive in a couple of
decades As a demonstration project on improving management in coastal lakes and
lagoons in the Mediterranean, the GEF intervention would support an innovative local
management approach in Lake Mariout. . The project would support the establishment of
a inter-agency management body for Lake Mariout involving the major stakeholders
under the leadership of the Governor of Alexandria. This management body would
ensure the integration between the EPAP 2, the CDS, AGPP and the proposed GEF
ICZM project.
The experiences from Alexandria will provide good replicable strategies for
upstreaming environmental objectives in development planning in coastal areas with
similar environmental conditions (coastal lakes, heavily polluted closed or semi-closed
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coastal lagoons with multiple uses such as fisheries, recreation, biodiversity, etc.) which
are common both in Egypt and elsewhere in the region. The replication of the following
components will be of particular relevance: a) a forum for developing a local vision for
coastal management, b) decentralization of natural resources management
responsibilities (technical and financial) and decision making from central to regional and
local level, c) defining roles and responsibilities of national, regional, and local
authorities in the ICZM process, d) involvement, role and contribution of non-
governmental stakeholders such as industry, private sector entities, and NGOs e)
institutional strengthening and capacity building,
Component 2: Targeted investments to reduce the pollution reaching the Mediterranean
Sea through Lake Mariout andimproved management for the protection/recovery of
valuable coastal systems. The second component will reduce the discharge of selected
pollutants (to be defined under PDF B) in the hot spots of Alexandria and El-Mex Bay by
X % (to be defined during PDF B) towards the targets of SAP-MED and the restoration
of the Lake Mariout and adjacent coastal ecosystem.
It will include:
· A local ICZM action plan pollution reduction and environmental
improvement;
· Demonstration projects to reduce the discharges of BOD,COD, TSS, and
nutrients to the Mediterranean Sea using innovative technologies for
enhanced primary treatment of sewage such as "beneficial
microorganisms", engineered wetlands and the re-use of treated sewage
water.;
The management body established under component I will develop an ICZM plan
for Lake Mariout, the Mariout Valley, and adjacent coastal areas consisting of a) an
urgent action plan to reduce the load of pollutants to the Mediterranean and restore some
basic functions which will allow Lake Mariout to maintain its own self-cleaning capacity
to reduce pollutants (e.g. to function as an engineered wetland with improved efficiency
for pollutant trapping and improved dilution by increased circulation of water); and b) a
medium-term vision of improving the function of the lake and adjacent coastal systems.
During the project preparation, a detailed circulation model and mass balance of the
major pollutants will be done (based on the Adricosm project) for the Lake and
surrounding coastal areas to define how much BOD, COD, TSS, and nutrients can be
reduced by different management and investment alternatives.
The GEF component would mainly target sewage-related pollutants identified in
the SAP which are being discharged via Lake Mariout to the Mediterranean hot spot of
El-Mex Bay. Priority actions will consist of enhanced primary treatment in existing
sewage treatment plants, including new biotechnology such as the use of "Beneficial
Microorganism" developed by the EM Research Organization in Japan which will be
tested on pilot scale to improve sewage treatment. Other actions would include the re-use
of treated sewage water for irrigation purposes, which would have the dual benefit of
reducing the large volumes of sewage water to be disposed of and reducing the pollution
loads entering the Mediterranean. Investments for addressing major pollution reduction
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measures will be provided by EPAP2 (industrial sources) and are discussed within the
Alexandria Growth Pole Project (AGPP) and Water Supply and Sanitation Project.
The medium-term action plan will identify investment opportunities focusing on
projects and activities for pollution reduction, conservation and sustainable use of
biodiversity and cultural heritage in lake and its surroundings. An important issue is to
restore the lake ecosystem and water circulation pattern. Technology developed by the
Adriatic Sea Integrated Coastal Areas and River Basin Management System
ADRICOSM has successfully implemented near real time planning and management
systems for urban drainage and wastewater utilities, and developed interfaces between
river basin and coastal systems. This modeling of the lake system will be undertaken
during the project preparation to test pollution reduction options, including the use of
the vegetation cover in the lake as engineered wetlands for improving the self-cleaning
capacity of the lake, and the impact on water quality, shorelines, and cultural heritage
along the coastline of Alexandria.
Component 3: Project Management and Performance Monitoring.
This component will:
· Strengthen the capacity and improve the infrastructure of the EEAA at
national and regional levels to undertake environmental monitoring; and
· provide EEAA with the necessary tool for performance monitoring,
evaluation of project progress, and M&E reporting.
· Develop the necessary tools, including but not limited to a project website,
for the dissemination of findings and results and replication at the national
level as well as the regional level, feeding into the Regional Component of
the Strategic Partnership. These results will also be presented at the
regional meetings of MAP, the GEF Partnership and annual portfolio
meetings.
The EEAA is responsible for Egypt's Sea and Coastal Zone policies, while
different national authorities are responsible for their implementation. The
Ministry of Defense and the EEAA are the main controlling and monitoring
agencies, the Ministry of Water resources and Irrigation with its Shoreline
Protection Authority is responsible for shoreline management, Ministry of
Transport is responsible for shipping. The Tourism Development Authority and
the Fisheries Development Authority are among the main users of the coastal
areas. The Governorates also have an important role in managing coastal areas at
the local level.
During project preparation the EEAA will be developing an monitoring and
evaluation framework based on its governmental mandate. The Monitoring and
Evaluation Framework would include a Results Framework, GEF IW M&E indicators,
an assessment of the M&E capacity of the stakeholders and implementing parties,
definition of clear responsibilities for monitoring and evaluation.
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Baseline scenario (without the GEF involvement): According to the
Transboundary Diagnostic Analysis for the Mediterranean Sea, the pollution load
reaching the Mediterranean Sea via the three hot spots in the Alexandria area are
significant with more than a third of the total BOD and COD loads as well as significant
loads of heavy metals.
Lake Mariout is a significant source of pollution to the El-Mex Bay. Seven
million cubic meter of water per day almost equivalent to the flow of the Rosetta
branch is being pumped from the lake to the Mediterranean Sea. According to the
Environmental Technical Report 8: Chemical and Biological Characterization of Lake
Maryout which was part of the 1997 Final Report on the Alexandria Wastewater Project
Phase II, the Lake Mariout receives inflow from three sources: the Kalaa Drain (750,000
m3/day of discharges from the Eastern Treatment Plant, agriculture drainage and
untreated sewage), the Omoum Drain (6.00million m3/day of agricultural irrigation drain)
and the Western Treatment Plant, and West Noubaria Drain (1.54 million m3/day of
agricultural irrigation drain). Groundwater may also enter the main basin. The Fisheries
basin receives little direct inflow. The Northwest Basin receives direct discharge from
several industries, while the Southwest Basin, the biggest basin receives inflow from the
Omoum Drain. The lake also receives industrial waste, either directly or indirectly from
some 194 industrial establishments surrounding the lake.
Although pesticides and heavy metals are found in water, sediments and biota in
the lake, the final report for the Alexandria Wastewater project Phase II (Environmental
Technical Report 8: Chemical and Biological Characterization of Lake Mariout), suggest
that these priority pollutants are not a major concern for the ecological function of Lake
Mariout. Instead, the ecological community of the main basin is regulated by the sewage
discharge which creates stressful condition for higher taxonomic groups. Sewage related
pollutants (nutrients, BOD, COD, coliforms) in the main basin are considerably higher
than in other basins. Also metal concentrations in sediments are higher. The sewage
discharge into the lake is also reducing the oxygen levels and causing odors due to the
release of hydrogen sulfide and methane.
Currently, the lake is only a small remnant of what it has been as large portions of
the lake has been drained and converted to land. The remaining part of the lake is split up
into several hydrologically separated basins. Lake Mariout has suffered severe ecological
damage which has considerably reduced its value as a bird area and its potential for
recreation, tourism, fishing, fishfarming as well as the livelihoods of fishermen
communities whose income and health are severely affected by the environmental
degradation.
Since the late 1970s, the City of Alexandria has been studying different
wastewater alternatives, such as: a) disposal to Lake Mariout of secondary treated
sewage;b) secondary treatment with lake by-pass; c) secondary treatment with polishing
ponds in the main basin and sea disposal to the Mediterranean of primary treated sewage;
and d) two land-based effluent disposal alternatives with reuse options. Identification of a
final discharge location has been a major hurdle to overcome. During a first phase to
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upgrade the Alexandria sewage system, the Eastern Treatment Plant (ETP) and the
Western Treatment Plant (WTP) are in operation since 1993 discharging to Lake
Mariout. Actions toward a more sustainable and stable sanitary drainage service under a
Second Phase II have started and several studies have been carried out. The cost for
upgrading the primary treatment to secondary treatment at the WTP is estimated to at
least USD200 millions. Present investment projects are limited to expanding Phase I
activities, such as upgrading the capacity of ETP from 410 to 607 cubic meters per day,
and the WTP from 186 to 460 cubic meters per day.
The Egypt: Pollution Abatement Project EPAP 2 would provide a financial
mechanism and incentives for reducing industrial pollution in Lake Mariout by providing
attractive loans to financially viable industrial enterprises for pollution reduction
measures in the Alexandria area. EPAP 2, however, does presently not have a
mechanism to address non-industrial pollutants, coastal management and
protection/restoration of valuable coastal heritage and ecosystems or the use of
biotechnology such as engineered wetlands and beneficial microorganisms..
Alternate scenario (with GEF involvement): The combined impact of the GEF
component and EPAP 2 would reduce the pollution load reaching the hot spots El-Mex
Bay and Alexandria through Lake Mariout. Improved quality of the 6 million cubic
meter/day of water pumped from the lake into the El-Mex Bay (by far the largest point
source of pollution in the Alexandria area and a very significant point source at regional
level) will also have positive impact on marine biodiversity. The GEF project would
preliminary target sewage-related pollutants (BOD,COD, TSS, and nutrients) by
enhancing primary treatment, and use of beneficial microorganisms and engineered
wetlands.
The GEF project will also develop an institutional framework for ICZM in Egypt and
test an innovative management approach to reduce coastal degradation in Lake Mariout
and surrounding areas. The management body for Lake Mariout, under the leadership of
the Governor of Alexandria would have widespread authority in planning and executing
actions to protect the lake and surrounding coastal areas. It would also have its own
budget allocation from involved stakeholders and test economic incentives (such as user
fees, tariffs, etc) to stimulate investments in pollution reduction. Based on the
experiences from the GEF project in Lake Manzala, the project would support targeted
investments in engineered wetlands for in pollution reduction (sewage), and other
application of biotechnology such as beneficial microorganisms.. The
protection/restoration of globally significant biodiversity, ecosystems and cultural
heritage implemented by the established management committee for Lake Mariout,
would complement the pollution reduction measures towards restoring the Lake. By the
active involvement of the EEAA, the experiences of the local management body for
Lake Mariout will be upstreamed to be used in national ICZM policy development and
replicated elsewhere.
3. SUSTAINABILITY (INCLUDING FINANCIAL SUSTAINABILITY)
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The environmental degradation of Lake Mariout and surrounding coastal areas is the
major environmental concern for the Governorate of Alexandria.
The Governor of Alexandria has decided to address the issue of managing Lake
Mariout by the establishment of one single body to be responsible for improving the
environmental conditions. Today, about 14 different authorities have a role in the
management of the lake and the formal establishment of this body, supported by the
necessary authority and financial resources is a promising step and the composition and
legal/management/financial authority will be supported by the project. Supplemented by
the technical and financial assistance from the EPAP 2 and the proposed GEF project, the
political support and public demand for improved environmental management guarantees
the sustainability of this process beyond the life of the GEF project
4. REPLICABILITY
This project, as part of the GEF Partnership Investment Fund, will contribute to the
design and implementation of replication strategies expected for each demonstration
project which are :
a. Define the replication context for each demonstration, i.e.: the number,
location, areas/sites in the Mediterranean where the specific
technology/practice could apply;
b. Outline a strategy aimed at promoting actual replication of each demonstration
implemented under the Investment Fund Element of the Strategic Partnership,
or the Regional Element, identify and implement ad hoc dissemination
programs, including site visits and exchanges, etc;
c. Evaluate the overall expected impact of the full replication.
The World Bank , as the lead agency for the EPAP 2, the CDS and the proposed
GEF project will be well placed to ensure that the pollution reduction measures,
Strategic Environmental Assessments, management models and other experiences
developed under the project will be disseminated through a website consistent with
IW:Learn guidelines, and presented at regional meetings of MAP, the GEF Partnership
and annual portfolio meetings can be replicated elsewhere and upstreamed to policy
development at national/regional level. The pollution of coastal lakes, lagoons and other
valuable habitats is common both in Egypt (other coastal lakes) and other countries in
the region. Within the SAP, several hot spots (Lagoon of Nador, Morocco; coastal areas
of Ghazaouet, Algeria; and Bizert Lagoon in Tunisia) were identified with similar
environmental problems. The comprehensive approach to address multiple pollution
sources demonstrated in this project can therefore be of relevance to other polluted hot
spots or historically significant sites in the Mediterranean as well as in the Red Sea.
The proposed project will make use of the experiences of the UNDP-GEF
Medwet Coast Project and in particular the activities in Lake Burulus (another Egyptian
Northern Lake that is open to the Mediterranean) where the MedWet Coast Project is
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developing a management plan for the Lake and an institutional set up for
implementation and overall management of the Lake has been established with various
level of committees that include all stakeholders, similar to what is suggested in this
proposal. Also, the experiences of technology demonstrated by the UNDP-GEF project
on Engineered Wetlands in Lake Manzala will be used in issues related to improving the
self-cleaning capacity of the wetlands in Lake Mariout.
5. STAKEHOLDER INVOLVEMENT/INTENDED BENEFICIARIES
The GEF project will support innovative implementation approaches for
environmental protection in coastal areas. It will support the establishment of local
multi-stakeholder management committees which will identify investments in
environmental improvements which will benefit local environmental agencies, local
community groups and other stakeholders. The management of Lake Mariout is presently
split under up to 14 different authorities, and the number of stakeholders is far wider
involving fishermen communities, private sector enterprises and NGO's.
During project preparation, a comprehensive stakeholder identification will be
completed and options for their involvement in the management of the lake will be
identified.
Since Lake Marriout Development is one of the CDS three component, all proposals,
including this GEF initiative, has been discussed during the meetings of the CDS
Partnership Forum, which gathers key city stakeholders to reach a shared vision of the
city development and priorities until 2020.
D - FINANCING
1) FINANCING PLAN
Component 1: Policy, Planning and Implementation Tools for Integrated Coastal
Zone Management USD3,500.000
Component 2: Targeted investments for urgent actions needed to restore the self-
cleaning capacity of Lake Mariout and the protection/recovery of valuable coastal
systems USD5,000.000
Component 3: Project Management and Performance Monitoring USD1,000,000
2) CO-FINANCING
The GEF project will be blended with the Egypt: Pollution Abatement Project 2
which consist of USD20 from IBRD, USD40 million from Japan and USD10 million
from the Carbon Fund.
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E - INSTITUTIONAL COORDINATION AND SUPPORT
1) CORE COMMITMENTS AND LINKAGES
During the Annual Meetings of the World Bank/IMF, the representatives of the
Egyptian Government reconfirmed their commitments to the parent programme,
EPAP2, which together with the proposed GEF project form a perfect "blended
operation".
At the implementing side, the Egyptian Environmental Affairs Agency (EEAA) and
the Governorate of Alexandria have been working together to produce the Concept
Note. EEAA has designated its Alexandria Regional Branch Office to become the key
counterpart during implementation.
2) CONSULTATION, COORDINATION AND COLLABORATION BETWEEN AND AMONG
IMPLEMENTING AGENCIES, EXECUTING AGENCIES, AND THE GEF SECRETARIAT, IF
APPROPRIATE.
The PCN has been discussed and received inputs from the Egyptian Environmental
Affairs Agency and the Governorate of Alexandria during a working group meeting
of the City Development Strategy (CDS) the 21st of September 2004 and discussed
with the Governorate of Alexandria and the EEAA 23 September 2004. Further
discussions on preparatory work and implementation arrangements will be held with
the EEAA and the Governorate 20-25 may 2005.
The project is submitted to the GEF to be implemented within the framework of the
GEF Strategic Partnership for the Mediterranean Sea Large Marine Ecosystem. It was
included in the Concept paper for the World Bank-GEF investment Fund for
Pollution Reduction in the Mediterranean Sea discussed at the Stocktaking meeting in
Trieste, Italy, 11 12 October 2004.
3) IMPLEMENTATION/EXECUTION ARRANGEMENTS
The project will be implemented by the Governorate of Alexandria in close
collaboration with the Egyptian Environmental Affairs Agency through the
Management Committee established for Lake Mariout.
A detailed framework for Monitoring and Evaluation will be developed during
project preparation.
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PART II - PROJECT DEVELOPMENT PREPARATION
A - DESCRIPTION OF PROPOSED PDF ACTIVITIES
The pollution load in the hot spots in the Alexandria area are of regional
significance (more than a third of BOD and COD, as well as significant heavy
metal and oil pollution) which severely affect water quality, biodiversity, cultural
heritage and tourism along in the Mediterranean coast. Despite considerable
efforts to advance a National Integrated Coastal Zone Management Plan in Egypt,
this work has not been completed. As a result, the development pressures and
related coastal problems are tremendous which was highlighted in the Country
Environmental Assessment (CEA) completed in 2004. The cost of environmental
degradation in the coastal areas of Egypt is presently being assessed by the
Mediterranean Environmental Technical Assistance Programme (METAP) in two
pilot areas.
The Investment Fund for the Mediterranean Sea LME partnership: Alexandria
Integrated Coastal Zone Management Project described in this document will
assist the Government of Egypt towards reaching the targets of the SAP-MED.
PDF B grants are sought to carry out the following activities:.
· Strategic Environmental Assessment (SEA) of two three Mediterranean
coastal areas to define potential pollution reduction and development
scenarios and their environmental implications. These SEAs would
contribute towards building up the National Vision on how to implement
SAP MED and how ICZM should be promoted in Egypt:
· Establishment of a multi-sectoral Management Committee for Lake
Mariout which under the Governor of Alexandria would be responsible for
the identification of key environmental issues to be included in the GEF
project. The PDF B activities would support the establishment of this
committee by providing options on its legal status, executive powers and
financial authority as well as an extensive consultation process with
involved stakeholders.
· Establish a near real time observing system and circulation model for Lake
Mariout and adjacent coastal areas for priority pollutants identified by the
TDA. The model would be based on similar models developed by the
Adriatic Sea Integrated Coastal Areas and Riverbasin Management
System (ADRICOSM). This circulation model would be necessary for
defining the pollution reaching the hot spots in the Mediterranean Sea,
mass balance of major pollutants reaching the Mediterranean Sea through
Lake Mariout, efficiency of different pollution reduction options and
identify best solutions for using existing wetlands as "engineered
wetlands"
· Preparation of a Monitoring and Evaluation Framework including
Results Framework, GEF IW M&E indicators, an assessment of the M&E
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capacity of the stakeholders and implementing parties, definition of clear
responsibilities for monitoring and evaluation, plus an outline on M&E
sustainability beyond the project
· Preparation of GEF Project Document
B - PDF BLOCK B (OR C) OUTPUTS
· Two three Strategic Environmental Assessments for selected coastal
areas of the Mediterranean coast
· Lake Mariout Management committee established
· Draft Stakeholder Proposal
· Lake Mariout Circulation model completed
· GEF Project Document
C - JUSTIFICATION
Land-based sources of pollution and environmental degradation of the
Mediterranean coast of Egypt are of regional significance, posing a threat to
sustainable development. Policy reforms and investments in pollution reduction
are urgently needed to comply with SAP-MED and achieving the targets of the
LBS Protocoll. The policy reforms to complete a National ICZM Plan in Egypt
need to be re-enforced. Strategic Environmental Assessment (SEA) and Cost of
Environmental Degradation (COED) have become successful communication
tools in the region to build awareness and increase stakeholder participation on
environmental issues. By increasing use of these tools, the project will support the
efforts of the Government of Egypt towards a common vision for the
Mediterranean coast, an area full of user conflicts driven by traditional land use
patterns, new development trends and global changes. Advancing the national
ICZM policy is vital for a sustainable use of Egypt's coastal areas as well as an
important contribution to towards a regional Protocol on ICZM within the
Mediterranean Action Plan.
In addition to the SEAs, the innovative management structure proposed for Lake
Mariout must be in place before the start of the project implementation. The
establishment of the Mariout Lake Management Committee, as an independent
body, is unprecedented in Egypt but may be a very useful mechanism for ICZM.
Water flows and balances in the coastal lakes in Egypt are highly engineered. Still
the information about pollution load is fragmented and integrated approaches to
water resource and coastal management have not been applied. While data on
discharge of pollutants may be available for certain sectors, the reliability of this
information is still debated by stakeholders. This is particularly true in Lake
Mariout, which is surrounded by a tremendous socio-economic land use pressure
with serious consequences. SEA, as described above, is a useful tool for building
development scenarios around the lake, but. New technology to develop near real
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time models have been successfully been developed and applied by the
ADRICOSM project both at local level on the Adriatic coast, but also at sub-
regional Mediterranean level. A module of this model for lake Mariout and the
surrounding hot spot areas in El Mex Bay, Alexandria and Abu Kir Bay would be
necessary to assess mass balances of pollutants and for efficient identification of
control measures
D - TIMETABLE
The PDF activities will be concluded within one year from the funding becoming
available
E BUDGET
Strategic Environmental Assessments (two to three areas)
Consultants
60,000 USD
Training for staff
30,000 USD
Stakeholder consultation and awareness building
30,000 USD
Publication and dissimination
8,000 USD
Establishment of Lake Mariout Management Committee
Consultant (legal/management/financial options)
12,000 USD
Start-up support and capacity building
20,000 USD
Near real time circulation model for Lake Mariout
Consultants
40,000 USD
Capacity building of local staff
50,000 USD
Monitoring
40,000 USD
Elaboration of GEF Project Document
Consultants
20,000 USD
Staff training and consultation
20,000 USD
TOTAL
350,000 USD
Co-financing Sources
Name of Co-
Classification
Type
Amount
financier (source)
(US$)
Status
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Sub-Total Co-financing
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PART III RESPONSE TO REVIEWS
A - CONVENTION SECRETARIAT
The project team is thankful for the comments provided by the GEF Secretariat which all
have been addressed in the revised version.
B - OTHER IAS AND RELEVANT EXAS
The project team appreciated the valuable comments from UNDP, which have been
included in the revised version. The project will certainly take into consideration the
previous experiences from the MedWetCoast project in Lake Burulus, as well as the
experiences from the project on Engineered Wetlands in Lake Manzala. The project team
also appreciated the comments to address the situation of local fishing communities
which have suffered from the environmental degradation in Lake Mariout.
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