PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Project Name Region Sector Project ID GEF Focal Area Borrower(s) Implementing Agency Environment Category Safeguard Classification Date PID Prepared Estimated Date of Appraisal Authorization Estimated Date of Board Approval Report No.: AB1185 SUSTAINABLE PERSISTENT ORGANIC POLLUTANTS STOCKPILES MANAGEMENT EUROPE AND CENTRAL ASIA Health (50%); Solid waste management (50%) P090037 Persistent Organic Pollutants REPUBLIC OF MOLDOVA Ministry of Ecology and Natural Resources [X] A [ ] B [ ] C [ ] FI [ ] TBD (to be determined) [ ] S1 [X] S2 [ ] S3 [ ] SF [ ] TBD (to be determined) October 21, 2004 October 4, 2005 December 8, 2005 1. Key development issues and rationale for Bank involvement Persistent Organic Pollutants (POPs) are chemical substances that persist in the environment, bioaccumulate through the food web, and pose a risk of causing adverse effects to human health and the environment. POPs can be transported through the environment to regions where they have never been used or produced resulting in the call from the international community for urgent global actions. The Stockholm Convention is the United Nations treaty negotiated to eliminate persistent organic pollutants (POPs). Under the Convention, countries commit to reduce and/or eliminate the production, use, and/or release of the 12 POPs of greatest concern to the global community (including 9 pesticides, polychlorinated biphenyls (PCBs), and unintended by products such as dioxins). Moldova does not produce or use any of the POPs pesticides covered by the Stockholm convention and the use of any of them is not permitted. Moldova does not produce PCBs but there are no restrictions on their import or use. Moldova signed the Stockholm Convention in 2001 and quickly thereafter requested, and received, financial assistance from the GEF, through the World Bank, in the form of a US$410,000 GEF POPs Enabling Activity (EA)) Grant. The grant was implemented from 2002-2004 by the Ministry of Ecology and Natural Resources (MENR) and financed preparation of a POPs inventory (intended to be a first cut only) and a National Implementation Plan (NIP) which quantify the magnitude of the problem and present a planning framework to identify priority actions, respectively. Significant findings which guided development of this project are: Moldova has an unusually high level of pesticide contamination because of the intensive use of pesticides in the past [1.8 metric tonnes/1000 km2 (FAO 2,000)], which either remain in the environment, or are slowly being released into it largely due to improper storage. Moldova has an extremely high amount of stockpiled obsolete pesticides – amongst the highest of any country in the world. Of the 1,700 tons of stockpiled obsolete pesticides in warehouses/facilities (and over 4,000 tons in a landfill), 780 tons are known to contain POPs. The composition of the remaining stockpiled 920 tons is unknown, as is that of 50% of the material in the landfill, but all the material can be expected to include POPs. Polychlorinated biphenyls (PCBs) in Moldova are primarily used in the energy sector as dielectric fluids in power installations, especially transformers and capacitors. There are currently no disposal requirements for equipment contaminated with PCBs and tons of such material is stockpiled throughout the country. The POPs inventory identified approximately 26,300 transformers, 17,000 capacitors, other electro-energetic equipment with a total amount of dielectric oils of 23,920 tons that might contain PCBs. Much of this equipment is no longer in use, e.g. only 1,000 of the capacitors are used with the remainder primarily at one location (Vulcanesti) but unsafely stockpiled there. Since PCBs can be readily released into the environment via equipment failures, leakages, and vandalism, stockpiles of this equipment pose a significant risk to health and the environment. The release of POPs by-products is insignificant due to a huge decline in the industrial and other activities that might generate these products, e.g. dioxins. The project is designed to address the immediate needs to improve the storage of POPs and to clean up existing contamination while putting in place the preconditions for ultimate disposal. By centralizing and ensuring the safety of storage, through improved storage methods and facilities, the project will reduce the threats posed by the over 300 obsolete pesticide stockpile locations, and 20 power stations with unused PCB containing equipment, scattered throughout the country. The project supports feasibility studies and cost analysis of final disposal options while recognizing that that final disposal could be far in the future. It also addresses the weak institutional capacity to manage POPs and the lack of public awareness of POPs issues. The total project financing would be US$5.9 million, of which the GEF contribution is proposed to be US$4.5 million and the GoM contribution of US$1.4 million. ( It is expected that an additional US$2.8 million of donor financing will be forthcoming based on discussions during project identification with other donors). The detailed project activities will be defined during project preparation and project costs estimates may change on the basis of results from project preparation activities. 2. Proposed objective(s) The main development objective of the project would be sustainable POPs stockpiles management and disposal for their future final destruction and for prevention of future POPs pollution. The global project objective is to prevent POPs pollution of the environment and to protect public health by the environmentally safe disposal and management of POPs, and by strengthened national capacities for implementation of the Stockholm Convention requirements. 3. Preliminary description Component I. Environmentally safe repackaging and storage of POPs stockpiles (US$4.1 M - GEF US$3.2 M; GoM US$ 0.9) Within this component the following activities would be financed: POP obsolete pesticides subcomponent This subcomponent would support: (i) supplying UN approved packaging materials suitable for long term storage of POP obsolete pesticides; (ii) repackaging, transporting and storing of obsolete pesticides in designated well-designed, secure and controlled facilities; (iii) monitoring for POPs pollution at the pesticides landfill, and mitigation measures as needed; and (iv) promoting integrated pest management and strengthened pesticides control. PCBs subcomponent This subcomponent would support: (i) a detailed feasibility study on the existing 20 power substation sites where the PCB contaminated equipment is used, or stockpiled, describing the state of the environment, quantification of PCBs (as possible), site remediation measures, and disposal options for PCB contaminated equipment and oil; (ii) provision of lockable containers for leaking capacitor drums at selected substations, as needed; and (iii) safe storage of PCBs in a designated, secure and controlled facility. Pilot project to demonstrate remediation of PCB contaminated storage sites: This sub-component would support development and implementation of a remediation plan for a selected site contaminated by PCBs. Component II. POPs Stockpiles Management (US$1.0 M; GEF US$0.7 M; GoM US$0.3 M). Within this component the following activities would be supported: Strengthening POPs Institutional capacity. The project would support: (i) developing an integrated POPs management approach, including creation within the MENR of a Center on Chemical Safety; (ii) strengthening the capacities of MENR, and the Moldovan Department of Customs, and Ministries of Energy, Agriculture and Industry related to the import/export of POPs, monitoring, transportation, and identification; and (iii) designing innovative regulatory and financial mechanisms for sustainable POPs management. Inventory, monitoring and enforcement activities. This subcomponent would support: (i) improving environmental monitoring by upgrading the analytical laboratory capacities for conducting POPs analyses and identification; (ii) strengthening of the enforcement capacity to ensure compliance with regulatory controls; and (iii) improving inter-agency information sharing and information management systems. Training and capacity building for POPs handling. This sub-component would support: (i) training of staff in the use of personal protective equipment and appropriate environmental safeguards for handling of obsolete POPs stocks; (ii) training in standard inventory techniques, storage of inventory data in special database, and standard risk assessment and prioritizing techniques for storage sites; and (iii) purchase of basic inventory equipment (e.g. digital and photo cameras, computer, data base, GPS) and staff training in its use. Component III. POPs public awareness and education. (US$0.55 M; GEF US$0.40 M; GoM US$ 0.15 M). This component is based on the Communication Strategy prepared by the GEF POPs Enabling Activities Grant and would support training, public awareness and a participation program on POPs. Component IV. Project management. (US$0.25 M; GEF US$0.2 M; GoM US$0.05M). This component would provide incremental financing for implementation of the project, incremental operating cost of the Project Implementation Unit (PIU), audit services, and monitoring and evaluation. The PIU established within the MENR for implementation of the GEF POP EA Grant will take on responsibility for implementation of the project. 4. Safeguard policies that might apply Applicable? [Y ] Safeguard Policy If Applicable, How Might It Apply? Environmental Assessment (OP/BP 4.01) The main potential negative environmental impacts of the project relate to the public health and environmental risks associated with handling and transport of toxic materials as well as with storage of the materials; and impacts of rehabilitating and building new storage facilities. Because GEF does not finance ultimate disposal of POPs, the project is designed to meet the pre-conditions for ultimate destruction, e.g. packaging of obsolete POPs in UN approved packaging is required to export the material for incineration elsewhere. The project also provides for safe storage in the interim, and supports feasibility studies and cost analysis of final disposal options. It is recognized that final disposal options may not be forthcoming in the foreseeable future, but by centralizing and ensuring the safety of storage, through improved storage methods and facilities, the project will reduce the threats posed by the over 300 obsolete pesticide stockpile locations, and 20 power stations with unused PCB containing equipment, scattered throughout the country. The project will finance clean up of the storage sites closed under the project, and the existing facilities to which the materials will be transported. One environmental impact associated with sorting and storage of these chemicals is self-ignition. This is an existing risk given the prevailing conditions of storage but the project will reduce such a risk by virtue of the integrity of the containers to be used for pesticides and PCBs. The project also finances improved security devices and guarding of the materials to prevent vandalism. An Environmental Impact Assessment (EIA) and Environmental Management Plan (EMP) will be developed for the: (i) cleanup of each identified pesticides storage sites including rehabilitation of the storage facilities; (ii) clean up, storage, and facility construction for PCBs (Vulcanesti power substation); and (iii) remediation of a selected site – yet to be determined. Sites for obsolete pesticide storage were determined during the POPs EA grant activities based upon Moldovan standards and EIAs. The EIA will review these decisions. The MENR and the Ministry of Health are responsible for supervision of the safe handling of obsolete pesticides during repackaging. There are technical standards to follow. The actual repackaging and transport is conducted by special units of the Ministry of Defense and the Department of Civil Protection, which have some training in handling of the materials and are equipped with special protective gear. The materials are transported in specialized military vehicles. During project preparation the adequacy of these standards, equipment and procedures will be reviewed with project activities designed to address deficiencies as needed. The project will finance training in training of staff in the use of personal protective equipment and appropriate environmental safeguards for handling of obsolete POPs stocks. [ TBD] Natural Habitats (OP/BP 4.04) The EIA will examine the existing sites proposed for storage none of which is reported to impact upon natural habitats but this needs to be confirmed. [ N] Pest Management (OP 4.09) Moldvoa has never produced pesticides or PCBs. All are imported. None of the POPs pesticides is presently permitted for use in agriculture, forestry or households. The project does not finance purchase or production of pesticides but rather is financing disposal of the existing stockpiles. The project will finance training in integrated pest management and strengthened pesticide control. The project is coordinating with the WB Moldova Rural Investment and Services Project (RISP) II IDA credit which supports integrated pest management and the strengthening of pesticides control The project is working closely with the WB Rural Investment Project which is financing improved pest management practices. [ N] Involuntary Resettlement (OP/BP 4.12) Storage facilities to be used are already existing. No new construction that might entail land acquisition or resettlement is included in the project. [ N] Indigenous Peoples (OD 4.20) [TBD] Forests (OP/BP 4.36). The EIA will examine the existing sites proposed for storage none of which is reported to impact upon forests but this needs to be confirmed. [N ] Safety of Dams (OP/BP 4.37) [ N] Cultural Property (draft OP 4.11 - OPN 11.03) [N ] Projects in Disputed Areas (OP/BP/GP 7.60)* [ N] Projects on International Waterways (OP/BP/GP 7.50) 5. Tentative financing Source: BORROWER/RECIPIENT GLOBAL ENVIRONMENT FACILITY BILATERAL AGENCIES (UNIDENTIFIED) * ($m.) 1.4 4.5 2.8 By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Total 6. Contact point: Contact: Rita Klees Title: Sr Environmental Spec. Tel: (202) 473-4186 Fax: Email: Rklees@worldbank.org 8.7