INTEGRATED SAFEGUARDS DATASHEET
APPRAISAL STAGE

I. Basic Information
Date prepared/updated: 08/01/2007
Report No.: AC3080
Public Disclosure Authorized
1. Basic Project Data

Country: Croatia
Project ID: P100639
Project Name: Agricultural Pollution Control Project
Task Team Leader: Aleksandar Nacev
GEF Focal Area: International waters
Global Supplemental ID:
Estimated Appraisal Date: July 31, 2007
Estimated Board Date: September 11, 2007
Managing Unit: ECSSD
Lending Instrument: Specific Investment
Loan
Sector: General agriculture, fishing and forestry sector (100%)
Theme: Pollution management and environmental health (P);Environmental policies and
institutions (P)
IBRD Amount (US$m.):
0.00
Public Disclosure Authorized
IDA Amount (US$m.):
0.00
GEF Amount (US$m.):
5.00
PCF Amount (US$m.):
0.00
Other financing amounts by source:
BORROWER/RECIPIENT
0.00
Local
Communities
2.00
Financing
Gap
0.00
2.00
Environmental Category: B - Partial Assessment
Simplified Processing
Simple []
Repeater []
Is this project processed under OP 8.50 (Emergency Recovery)
Yes [ ]
No [X]
Public Disclosure Authorized
or OP 8.00 (Rapid Response to Crises and Emergencies)
2. Project Objectives
The development objective of the project is to significantly increase the use of
environmentally friendly agricultural practices by farmers in Croatia's Pannonian plain in
order to reduce nutrient discharge from agricultural sources to surface and ground water
bodies. In support of this, the project will assist the Government of Croatia to: (i)
promote mitigating measures for nutrient reduction from agricultural sources to surface
and ground water bodies (manure management); (ii) implement a national Agri-
environment policy (Code of Good Agricultural Practices); and (iii) a public awareness
campaign that would disseminate the benefits of project activities with the aim towards
replication at the national and regional levels. The global environmental objective of the
project is to reduce the discharge of nutrients into waters draining into the Danube River
Public Disclosure Authorized
and Black Sea.


3. Project Description
Component 1: Promotion of Mitigating Measures for Nutrient Reduction from Point
Source Pollution (Manure Management) (US$14.59 million)
This component will support sustainable manure management practices with the
objective of reducing nutrient loads to the surface and ground water bodies of Croatia.
The project will establish a US$ 4.43 million Nitrates Mitigation Investment Fund within
the Ministry of Agriculture, Forestry, and Water Management (MAFWM) Payment
Directorate to finance grants for 60 percent of the tax inclusive cost of manure storage
and management. Grants will contribute to the construction of the platforms/sumps and
associated pumping and agitation equipment. The project will as well support the
installation of piezometers in select sites to monitor the quality of water flowing out of
livestock farms implementing the Project financed manure management sub-projects.

Component 2. Development and Implementation of Agri-Environment Measures
(US$3.68 million)
The project will support implementation of the Code of Good Agricultural Practices
currently under preparation by the MAFWM, and accreditation of EU compliant agri-
environment measures. The Croatian Agricultural Extension Institute will undertake a
training and demonstration program to educate and train the livestock community
(extension workers, farmers, enterprises) in sustainable, cost-effective manure
management practices.

Component 3: Public awareness and Replication (US$0.71 million)
The project will undertake a broad public awareness campaign to disseminate the
benefits of project activities with the aim towards replication at the national and regional
levels. At the project county level, the main audience will be the direct stakeholders of
the project including local and county officials, farmers, community groups and NGOs.
At the national level the project will concentrate on institutions and groups including
government agencies, national environmental or professional associations, academia,
NGOs, etc. and the population at large. The aim would be to familiarize the population
with the project and its benefits and thereby raise the interest of potential future clients.

Component 4: Project Management (US$0.72 million)
This component will provide funding for overall project management which will be
undertaken by a strengthened Project Implementation Unit of the ongoing Agricultural
Acquis Cohesion Project. In addition, a livestock/nitrates management technical
specialist will be recruited and paid through the GEF grant funds.

4. Project Location and salient physical characteristics relevant to the safeguard
analysis
The proposed GEF investment is a pilot activity to be implemented in three selected
counties of Croatia: (i) Osijecko-Baranjska; (ii) Vukovarsko-Srijemska; and (iii)
Vara dinska. All three counties lie within the Pannonian plain which is Croatia's prime
agricultural area. The counties have well developed agriculture, livestock and associated
food industries including vegetable oils and sugar, meat processing, dairy and wineries.
These counties have been selected because of their relatively high livestock density and

their concentration of medium scale livestock farms. Poor manure management practices,
lack of awareness of sustainable agricultural practices to reduce nutrient loads to water
bodies and inadequate water monitoring infrastructure characterize the counties and
contributed to their selection for project interventions.

5. Environmental and Social Safeguards Specialists
Ms Helen Z. Shahriari (ECSSD)
Ms Ruxandra Maria Floroiu (ECSSD)
Ms Natasa Vetma (ECSSD)

6. Safeguard Policies Triggered

Yes No
Environmental Assessment (OP/BP 4.01)
X
Natural Habitats (OP/BP 4.04)
X
Forests (OP/BP 4.36)
X
Pest Management (OP 4.09)
X
Physical Cultural Resources (OP/BP 4.11)
X
Indigenous Peoples (OP/BP 4.10)
X
Involuntary Resettlement (OP/BP 4.12)
X
Safety of Dams (OP/BP 4.37)
X
Projects on International Waterways (OP/BP 7.50)
X
Projects in Disputed Areas (OP/BP 7.60)
X
II. Key Safeguard Policy Issues and Their Management
A. Summary of Key Safeguard Issues
1. Describe any safeguard issues and impacts associated with the proposed project.
Identify and describe any potential large scale, significant and/or irreversible impacts:
Environmental Assessment (OP/BP 4.01)
The Project has been classified as an environmental category B and triggers the
safeguard policy OP/BP 4.01 on Environmental Assessment. The project has been
designed to demonstrate a series of positive impacts on the environment, especially
related to reduction of nitrogen loads into the surface waters and groundwater. No major
adverse environmental impacts are anticipated under the proposed project. The
environmental concerns under the project relate to select activities under Component 1
and may occur during construction phase of the manure platforms. These impacts are
predictable and can be mitigated through application of standard measures in engineering
designs, procurement construction, operation and maintenance. The standard construction
works associated with the construction of waste platforms include following activities:
removal of fertile top-soil, excavation for foundation of the above ground manure
storage, concrete lining, excavation for the underground storage tank, etc. Adverse effects
that may occur during the construction phase are: dust from excavation processes,
exhaust emission and noise & vibrations from construction equipment and vehicles, soil
pollution caused by oil and grease leakage and improper waste disposal. The expected
impact is related to noise and dust, which will however have local short-range character
and will be temporary. Some adverse impact could be felt in close proximity to manure
storage structures only due to odor. This impact will be felt particularly during

unfavorable climate conditions (high temperatures, high air pressure, no wind). An
Environmental Management Plan was prepared to guide mitigation and monitoring of
potential noise, dust, waste, or other impacts as well as to ensure that the civil works
implementation are carried-out in accordance with the existing Croatian construction and
environmental legislation as well as with the Bank operational policies applicable to the
project.

International Waterways Safeguard Policy (OP/BP 7.50)
The project does not involve the use or extraction of international waters or cause
pollution to international waters. In addition, the proposed project activities do not
address/affect water supply nor target waste water treatment, and therefore the OP/BP
4.11 is not applicable. The project is specifically designed to reduce nutrient discharges
to Croatia's surface and ground water bodies in the Danube watershed with the ultimate
aim of improving the quality of the Danube River and Black Sea. Activities under the
project will focus on sustainable land management practices (improved manure
management and promotion of environmentally friendly agricultural practices) so that
there is reduced nutrient run-off from agricultural sources to local water bodies.

2. Describe any potential indirect and/or long term impacts due to anticipated future
activities in the project area:
The potential environmental and social implications of the physical investments to be
supported under the project are described in the Environmental Management Plan (EMP)
prepared by the Government during project preparation. The investments supported will
have positive environmental impacts. They are intended to reduce the nitrogen loads into
the surface waters and groundwater. No significant indirect or long-term environmental
impacts are expected.

3. Describe any project alternatives (if relevant) considered to help avoid or minimize
adverse impacts.
N/A

4. Describe measures taken by the borrower to address safeguard policy issues. Provide
an assessment of borrower capacity to plan and implement the measures described.
As part of project preparation, the Government prepared an EMP to address
environmental issues associated with the proposed construction and rehabilitation work
investments. This document meets the current Croatian legislation and the World Bank
operational policies on environmental assessment and public disclosure. The EMP also
reviews the Croatian legislation related to safeguard and administrative procedures during
and after construction works including issuance of construction permits and procedures to
be followed during implementation.
Implementation of mitigation measures during the construction phase of manure
platforms will be transferred to the construction company or other entity/person
responsible for execution of such works. The measures include, among others, fencing of
the construction area, vehicle speed reduction on earthy roads and areas, implementation
of measures to reduce surface run-off and erosion on site, limiting works on the regular
daily working hours, compliance with construction work regulations, follow the waste

management system, maintenance of vehicles and construction equipment on designated
surfaces where oil and grease adsorbents are provided. Also, to limit the spread of odor,
appropriate location for construction of the manure storage structures would be ensured
in the design phase to limit its impact to a minimum.
The MAFWM as the key beneficiary of the loan, through the Payment Directorate will
take primary responsibility for addressing the environmental aspects of the loan, and
ensuring that the Environmental Management Plan is implemented. This Ministry has
been already involved with the implementation of World Bank projects and therefore
have institutional capacity to apply the bank's operational policies. A person at the PIU
unit will be responsible for the "safeguard compliance". Key participants in the EMP
have been clearly identified and include the building design teams; the regional Ministry
of Environment, Physical Planning and Construction (MEPPC) Office that issues
construction permits; the construction contractor; Croatian Waters; and the farmer as
operator.

5. Identify the key stakeholders and describe the mechanisms for consultation and
disclosure on safeguard policies, with an emphasis on potentially affected people.
Key stakeholders of the project include the MAFWM, MEPPC, county's officials and
farmers and agro-processors in the project area. The PIU will monitor the project
implementation in close coordination with local authorities and will ensure that the EMP
is followed properly. The draft EMP was publicly disclosed in local language on the
MAFWM website and in English at the Infoshop in Washington DC on July 30, 2007.

B. Disclosure Requirements Date
Environmental Assessment/Audit/Management Plan/Other:
Was the document disclosed prior to appraisal? Yes

Date of receipt by the Bank
07/30/2007

Date of "in-country" disclosure
07/30/2007

Date of submission to InfoShop
07/30/2007

For category A projects, date of distributing the Executive

Summary of the EA to the Executive Directors
* If the project triggers the Pest Management and/or Physical Cultural Resources,
the respective issues are to be addressed and disclosed as part of the Environmental
Assessment/Audit/or EMP.
If in-country disclosure of any of the above documents is not expected, please
explain why:
N/A
C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the
ISDS is finalized by the project decision meeting)

OP/BP/GP 4.01 - Environment Assessment

Does the project require a stand-alone EA (including EMP) report?
Yes

If yes, then did the Regional Environment Unit or Sector Manager (SM)
Yes
review and approve the EA report?
Are the cost and the accountabilities for the EMP incorporated in the
Yes
credit/loan?
The World Bank Policy on Disclosure of Information

Have relevant safeguard policies documents been sent to the World Bank's
Yes
Infoshop?
Have relevant documents been disclosed in-country in a public place in a
Yes
form and language that are understandable and accessible to project-affected
groups and local NGOs?
All Safeguard Policies

Have satisfactory calendar, budget and clear institutional responsibilities
Yes
been prepared for the implementation of measures related to safeguard
policies?
Have costs related to safeguard policy measures been included in the project
Yes
cost?
Does the Monitoring and Evaluation system of the project include the
Yes
monitoring of safeguard impacts and measures related to safeguard policies?
Have satisfactory implementation arrangements been agreed with the
Yes
borrower and the same been adequately reflected in the project legal
documents?
D. Approvals

Signed and submitted by:
Name
Date
Task Team Leader:
Mr Aleksandar Nacev
07/30/2007
Environmental Specialist:
Ms Natasa Vetma
07/30/2007
Social Development Specialist
Ms Helen Z. Shahriari
08/01/2007
Additional Environmental and/or
Ms Ruxandra Maria Floroiu
07/30/2007
Social Development Specialist(s):
Approved by:

Sector Manager:
Mr Juergen Voegele
08/01/2007
Comments: