PROJECT IDENTIFICATION FORM (PIF) PROJECT TYPE: Full-sized Project THE GEF TRUST FUND Submission Date: PART I: PROJECT IDENTIFICATION GEF PROJECT ID1: PROJECT DURATION: 54 months GEF AGENCY PROJECT ID: COUNTRY(IES): Egypt PROJECT TITLE: Integrated and sustainable POPs Management Project GEF AGENCY(IES): World Bank OTHER EXECUTING PARTNER(S): Egyptian Environmental Affairs Agency (EEAA) GEF FOCAL AREA (S)2: Persistent Organic Pollutants GEF-4 STRATEGIC PROGRAM(s): POPs-SP1, POPs-SP2 NAME OF PARENT PROGRAM/UMBRELLA PROJECT (if applicable): NA February 20, 2009 INDICATIVE CALENDAR* Milestones Expected Dates mm/dd/yyyy Work Program (for FSP) CEO Endorsement/Approval Agency Approval Date Implementation Start Mid-term Evaluation (if 06/15/2009 08/01/2010 09/15/2010 02/15/2011 05/15/2013 planned) Project Closing Date 08/15/2015 * See guidelines for definition of milestones. A. PROJECT FRAMEWORK Project Objective: To assist Egypt meet its obligations under the Stockholm Convention for the sound management of POPs (PCBs, Dixons and Furans), and (obsolete pesticides under ASP), and contribute to the sustainable development of capacity for the management of POPs. Project Components 1. Institutional and Regulatory Strengthening Measures for POPs Management Indicate whether Expected Investment, Outcomes TA, or STAb TA 1. GOE’s policy framework strengthened to implement the Stockholm Convention. 2. GOE’s overall capacity for sound POPs management enhanced. 2 Management of dioxin and furan emissions Investment, TA 1. Development of national strategy aimed at future reduction of dioxin and furan emissions from major sources. 2. Increased awareness on major sources of dioxin 1 2 Project ID number will be assigned by GEFSEC . Select only those focal areas from which GEF financing is requested . Expected Outputs 1. Policies and regulations for PCB and obsolete pesticide management reviewed and updated. Establishment of regulations for management of dioxins and furans 2. EEAA and MOA capacity build for the sound management of POPs 1. Demonstrate BAT/BEP in two of the most pollutant industries in Egypt with the aim at enabling the future elimination of dioxin and furan emissions from these industries Indicative GEF Financinga ($) a % Indicative CoFinancinga ($) b % Total ($) c =a + b 324,000 10 3,000,000 90 3,324,000 2,025,000 29 5,000,000 71 7,025,000 1 3. Sound Mgmt of PCBs Investment, TA and furan emissions and on potential management alternatives 2. Training of government officials and other stakeholders on limiting emissions of dioxins & furans from industrial sources 1. Sound and sustainable management of PCB stockpiles and off-line PCBcontaminated equipment. 1. 100% of off-line PCB contaminated electrical equipment safeguarded, decontaminated, and/or disposed using environmentally sound options 2. Promotion of environmentally sound management, destruction and/or disposal technologies for contaminated PCB oils and equipment 2. Management plan for on-line PCBcontaminated electrical equipment developed 3. All cross contamination of lubricating oils with PCBcontaminated oils eliminated 3,321,000 45 4,000,000 55 7,321,000 4. 100% of on-line PCBcontaminated equipment identified, safeguarded (if needed) and monitored until final decommissioning 5. Training of government officials and other stakeholders on sound management of PCBs 6. Public awareness campaign launched for sound management of PCBs 2 4. Management (Prevention and disposal) of obsolete pesticide stocks3 (ASPII component) Investment, TA 1. Sound and sustainable management of obsolete pesticide stocks. 1. Development of sound pesticide life cycle management practices and Integrated Pest Management 2. 100% destruction of stocks held at MoA and other government agencies, cleanup and site remediation measures to mitigate the impact of obsolete pesticides 1,620,000 39 2,500,000 61 4,120,000 810,000 45 1,000,000 55 1,810,000 3. Development of sustainable strategies for future management of pesticide-related wastes 8. Project4 management 4. Capacity building throughout the pesticide supply chain, public awareness and communication campaigns on the appropriate use of pesticides Support EEAA and MOA with Project Management Total project costs a b 8,100,0005 34 15,500,000 66 23,600,000 List the $ by project components. The percentage is the share of GEF and Co-financing respectively of the total amount for the component. TA = Technical Assistance; STA = Scientific & Technical Analysis. B. INDICATIVE CO-FINANCING FOR THE PROJECT BY SOURCE and by NAME (in parenthesis) if available, ($) Sources of Co-financing Project Government Contribution Project Government Contribution Multilateral Agency(ies) (Arab Fund) Private Sector Type of Co-financing cash In-kind cash Project 3,000,000 4,000,000 2,500,000 6,000,000 cash Total Co-financing 15,500,000 C. INDICATIVE FINANCING PLAN SUMMARY FOR THE PROJECT ($) Previous Project Preparation Amount (a)6 CIDA GEF financing 3 4 5 6 250,000 0 Project (b) 0 8,100,000 Total c=a+b Agency Fee 250,000 8,100,000 0 810,0007 This component will be financed with GEF resources from the African Stockpile Program (ASP) Phase 2. Includes US$180,000 towards the ASP component Includes US$1,782,000 for the ASP component Include project preparation funds that were previously approved but exclude PPGs that are awaiting for approval. 3 Co-financing 100,000 15,500,000 15,600,000 Total 350,000 23,600,000 23,950,000 900,000 D. GEF RESOURCES REQUESTED BY AGENCY (IES), FOCAL AREA(S) AND COUNTRY(IES)1 Not applicable. PART II: PROJECT JUSTIFICATION A. STATE THE ISSUE, HOW THE PROJECT SEEKS TO ADDRESS IT, AND THE EXPECTED GLOBAL ENVIRONMENTAL BENEFITS TO BE DELIVERED: 1. The Government of Egypt (GOE) completed its National Implementation Plan (NIP) in mid 2005 and submitted the finalized document to the Stockholm Convention on March 16, 2006. The country’s priorities in terms of POPs, as outlined in the NIP, include actions plans to address unintentional releases of dioxin and furans, management and environmentally sound disposal of PCBs and pesticide wastes, institutional and regulatory strengthening measures, and awareness building and stakeholder involvement activities. In this regard, the Egyptian Environmental Affairs Agency (EEAA) has requested the World Bank to prepare a GEF project that will focus as a priority, on the following critical areas: i. Institutional strengthening and regulatory support – According to the NIP, although the country is equipped with institutions/research laboratories, legal mechanisms, data collection/management systems, and environment welfare organizations, there are still many shortcomings connected to the execution of the NIP. To bolster the country’s capacity for POPs management, the proposed GEF Project will include a component to review, strengthen and further develop the legal framework, by including regulations aimed at reducing and ultimately eliminating releases of PCBs, dioxin and furans, and POPs-pesticides, along the lines established by the Stockholm Convention. The Project will also explore possibilities for broadening the legislative and policy framework to incorporate a more integrated and sustainable approach to safe chemicals management. ii. Management of dioxin and furan emissions – The NIP’s inventory of dioxin and furan emissions was conducted using UNEP’s toolkit and included the following three major sources: The largest sources, contributing to roughly 51% of the estimated emissions were attributed to open burning of waste. The GOE intends to address these sources primarily through regulatory efforts combined with sound solid waste management programs, some of which are currently underway financed by the World Bank. These programs focus, among others, on waste minimization and separation programs, improved collection and disposal measures in selected hot spot areas in and around Alexandria and Greater Cairo, all of which will ultimately result in the reduction of open burning practices at waste disposal sites. The second major emitters, although smaller in relative terms, are significant and of great concern to EEAA because they involve mostly industrial processes that are not being addressed by any planned government program. More specifically, metallurgical industries (e.g. iron and steel, copper, aluminum), fossil fuel fired boilers and thermal processes (e.g. lead, asphalt, brick, and lime production) are primary sources of dioxin and furan emissions, contributing to roughly 20 gTEQ/yr. Resources from the Canadian International Development Agency (CIDA) are currently being used to assess practices from these preidentified industrial sectors and to determine, based on current local practices, which are the worst dioxin and furan emitters. The top emitting industries will be selected for demonstrations, to be financed under the GEF Project, of BAT/BEP for dioxin and furan emission reductions. It should be noted that the magnitude of dioxin and furan emissions from the Egyptian industrial sector that was estimated in the NIP appears to be relatively low when compared to other countries, particularly given the significant importance of local, heavy industries. It is therefore expected that current estimates of emissions will increase considerably after a revised assessment of selected sectors is conducted. Finally, medical waste incinerators, of which over 140 in 27 cities were accounted for in the inventory, were also among the top three categories of emitters, reaching additional 10 gTEQ/yr. Emissions of dioxins and furans from medical incinerators are being further evaluated using CIDA funds. The GOE has decided not to include activities that target medical waste incinerators under this Project until more 7 Includes US$162,000 towards the ASP component 4 information is collected. Depending on the results obtained during project preparation, the GOE may wish to request the GEF that a fraction of the Project resources be redirected to finance activities involving medical waste incinerators (e.g. management practices, pilot design of pollution abatement technologies). In light of the emissions scenario and of the current ongoing programs, the GOE has requested the World Bank to develop a national strategy for the reduction of dioxin and furan emissions. This strategy is expected to leverage results from government investments on waste management and from bi-lateral donors, while focusing on reductions of emissions from the most significant industrial sources. Specifically, technical assistance and investments will be carried out in at least two main industrial sectors8, with the objective of demonstrating how BAT/BEP can be integrated with other pollution control technologies, in order to reduce and ultimately eliminate dioxin and furan emissions. The GOE has requested the Bank to design this component such that it is consistent with the work that is being done under the second phase of the Egypt Pollution Abatement Project (EPAPII) and the upcoming EPAPIII, which aim at reducing overall air pollution and improving energy efficiency (see below). In fact, the GOE has developed and is implementing framework to assist the public and private sectors to finance investments in air pollution control, and the GEF project offers a timely opportunity to build onto these government efforts by demonstrating dioxin and furan control technologies that can be later replicated on a wider scale across the country. The overall impact of this component will be to initiate a process of industrial conversion that will lead to the future elimination of dioxin and furan emissions from at least two of the major industrial sources in Egypt9. iii. PCB management – A very limited desktop assessment of national PCB stocks was conducted under the NIP, which revealed the existence of 26 PCB-contaminated transformers and 3,666 capacitors, containing an estimated 20 tonnes of PCB oils, nation-wide. This work was followed in 2006 by a partial inventory of the Shubra el Kheirma industrial area in the vicinity of Cairo, which was financed by the Japanese International Cooperation Agency (JICA). The JICA inventory assessed all the power stations in the area, as well as a sample of public and privately-owned facilities. The study found over 600 transformers potentially contaminated with PCBs, containing an estimated 200 tonnes of contaminated oil. The study also exposed local oil recycling practices, which have surely worsened the PCB contamination problem at a national level. More specifically, companies licensed to handle hazardous wastes, unaware of potential PCB contamination in transformer oils, traditionally serviced private and government industries by collecting used oils. These oils included lubricating oils as well as untested transformer oils, which were mixed together upon collection and transported to central oil recycling facilities. Recycled oils, still contaminated with PCBs, were then resold and re-used for a variety of purposes. The practice has been banned since 2007, as a result of the JICA study, but the government is not aware of the extent of the contamination that may have resulted over the years, nor of the manner in which used transformer oils are being currently handled by users. Based on the information available to date, EEAA estimates that a substantial amount of PCB-contaminated equipment exists around the country. The Aswan High Dam Power Station, for instance, was built in the 1960s with technical and financial support from the former Soviet Union, and its electrical facilities comprise one of the largest potential sites for PCBs contaminated oils and transformer equipment in the country. The Aluminum Mill at Nag Hammadi, some 350 km to the north from the Dam is also suspected to contain a high level of PCBcontaminated equipment. There are also many other industrial and power network sites around the country that are believed to have both-online and off-line equipment which contain PCBs10. None of these areas have been assessed for PCB contamination, to date. The GOE has received financing from CIDA to extend the coverage of the partial PCB inventory. Work will start in early 2009 and will provide a more realistic picture of the estimated volume of PCB stocks that exist in the preidentified governorates, as well as on the estimated numbers of PCB-contaminated equipment (on-line and offline). The proposed GEF Project will be prepared on the basis of these results and will include: i) training and public awareness campaigns at the national level, to educate stakeholders on the risks of PCB exposure; ii) 8 Sectors to be determined as a result of CIDA’s financed assessment. 9 A more specific quantification of the amount of the emissions reduction will be available once the actual industries are defined, during project preparation. 10 EEAA estimates that the following governorates may be potential PCB hotspot areas, given their important industrial base. In decreasing order of significance, they include: Aswan, Assuit, Alexandria, Greater Cairo, Hurgada, Tanta and Mansoura. Estimates of potential PCB stocks are unknown. 5 securing and disposing of all stocks of PCB contaminated oils; iii) demonstrating BAT/BEP for management of off-line PCB contaminated equipment, including safe storage, treatment and disposal; iv) implementing a gradual phaseout plan for on-line, publically owned PCB-containing equipment, consistent with the targets of the Stockholm Convention; and v) developing a management plan for privately owned PCB-contaminated equipment that may not be decommissioned until 2025. The GEF project will also propose alternatives for current oil recycling practices. iv. Management (Prevention and Disposal) of obsolete pesticide stockpiles - Through a joint initiative between the EEAA and the Ministry of Agriculture, in 2006, a survey of government agencies, private pesticide distributors and users was conducted, aimed at identifying all known stocks of obsolete pesticides. A public awareness campaign was conducted and users were compensated for taking their pesticide stocks to government facilities. Roughly 450 tonnes of pesticides were collected and stored in a centralized safe storage facility situated about 35 Km south of Cairo, in the El Saff district of the Giza Governorate. The Ministry of Agriculture closely monitors the facility and will safeguard its contents until a suitable disposal option is made available. Approximately 750 tonnes of stocks that were held by government agencies (e.g. Ministry of Petroleum, Ministry of Water and Irrigation), which were either not safe to move, or which were stored in an environmentally sound manner were identified, classified and stored in their location. The EEAA has requested the World Bank that Egypt be included for the second phase of operations for the Africa Stockpiles Programme (ASP-II). This component of the project is an integral part of the second phase of the ASP partnership and will be considered as such. Project activities in Egypt will be coordinated by the World Bank and will include: i) strengthening of policy framework related to pesticide management; ii) development of sound pesticide life cycle management practices and Integrated Pest Management; iii) destruction of stocks, cleanup and site remediation measures to mitigate the impact of obsolete pesticides; iv) development of sustainable strategies for future management of pesticide-related wastes; v) capacity building throughout the pesticide supply chain; and vi) public awareness and communication campaigns on the appropriate use of pesticides. v. Project Management - EEAA will be responsible for all works related to the Components 1, 2 and 3 of the proposed Project. Specifically, EEAA will be in charge of the following tasks: i) overseeing all aspects of operations including implementation progress, procurement, disbursements and financial management matters; ii) preparation of periodic progress reports, including financial management and procurement, and submitting them to all the stakeholders; iii) preparing and following up on monitored progress indicators. EEAA will ensure that all project related funds are used for the purposes intended. The Ministry of Agriculture (MOA) will be directly responsible for all aspects involved in the implementation of Component 4. EEAA will appoint a Project Focal Point, who will coordinate with MOA on a periodic basis to ensure that all the objectives of the overall POPs management Project are being met. B. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH NATIONAL/REGIONAL PRIORITIES/PLANS: 2. The GOE ratified the Stockholm Convention on February 5, 2003 and completed their NIP in 2005. In Egypt, the elimination of POPs has been declared a national priority. Specific action plans were developed as part of the NIP process to build national capacity and strengthen institutions responsible for POPs management, and for eliminating sources of PCBs, dioxins and furans and pesticides. These national priorities are well reflected in the various components of this proposed Project. 3. The proposed Project will build upon the work carried out by the government and supported by GEF, JICA and CIDA. The ultimate impact will be the reduction and prevention of POPs releases to the global environment, specifically PCBs, obsolete pesticides and dioxins and furans pollutants. With enhanced POPs management capacity and demonstrated approaches to control and prevent exposure risks from key sources of POPs, Egypt will pave the way for the elimination of PCBs and obsolete pesticides, as well as significant reductions of dioxins and furan emissions using an integrated and sustainable POPs management approach. C. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH GEF STRATEGIES AND STRATEGIC PROGRAMS: 4. The overall objectives of the proposed Project are fully aligned with the GEF strategic programs in the POPs focal area. Specifically, the Project will: (i) strengthen technical capacity of the GOE, at EEAA and other relevant agencies for NIP implementation; and (ii) provide the GOE technical and financial assistance to respond to the priorities identified in the NIP in terms of PCBs, dioxins and furans and obsolete pesticides. 6 5. The proposed Project is also consistent with the GEF’s Sound Chemicals Management Framework Strategy. The development of cross-sectoral regulatory and technical capacity will forge better coordination for integrated and sustainable POPs management that can eventually be extended to other chemical pollutants and their respective international agreements. D. JUSTIFY THE TYPE OF FINANCING SUPPORT PROVIDED WITH THE GEF RESOURCES: 6. Grant resources will be provided to a selected group of industrial facilities that have confirmed high levels of dioxin and furan emissions. These grants will only cover the costs of demonstration of appropriate pollution abatement technologies, which would probably never be implemented in these types of facilities unless their potential and costeffectiveness are fully demonstrated. In the case of PCBs, grant resources will be provided to the government to partially cover the costs of treatment and disposal of publically owned PCB contaminated oils and equipment. In the absence of these grant resources and of the associated technical assistance, it is very unlikely that the GOE will be financially able to meet its commitments under the Stockholm Convention. E. OUTLINE THE COORDINATION WITH OTHER RELATED INITIATIVES: 7. CIDA Grant: Funding from the Canadian government is currently being used by the GOE to complete preliminary inventories and assessments carried out under the NIP. As noted above, work will be undertaken to evaluate dioxin and furan emissions form industrial sites and medical waste incinerators, to extend findings of the current PCB inventory, and to assess the situation of pesticide stockpiles. Findings from these ongoing tasks will become the basis of this proposed POPs management project. 8. Second Pollution Abatement Project (EPAP-II): After successful completion of the World Bank’s first Egypt Pollution Abatement Project (EPAP), this project has become a vehicle to support the Government to take advantage of the opportunities offered by the emerging carbon market established after the entry into force of the Kyoto Protocol in February 2005. The project's main development objective is to demonstrate, in the Egyptian context, the applicability of market-based financial and technical approaches to achieve significant pollution abatement in selected hot spot areas in and around Alexandria and Greater Cairo. The project provides technical and financial assistance to different industries aiming at complying with existing environmental laws. Hence, coordination with EPAP-II will maximize the effectiveness of this proposed Project in that it will provide a regulatory and financial context in which the demonstrated BAT/BEP technologies for the elimination of dioxin and furans can later be replicated and implemented. 9. Promotion of Strategies to Reduce Unintentional Production of POPs in the Red Sea and Gulf of Aden (PERSGA) Coastal Zone: A medium size project was recently approved by GEF (September 2008) which will help reduce and eliminate unintentional production of POPs in key sectors of industry (cement, incineration, metallurgy and pulp and paper) through the introduction of BAT/BEP strategies in the industrial sector of the coast in the PERSGA eligible member countries. Coordination with UNIDO will be critical to maximize the effectiveness of the proposed Project, by using lessons learnt from their experiences in the proposed demonstrations of BAT/BEP technologies. 10. Africa stockpiles project: See above F. DISCUSS THE VALUE-ADDED OF GEF INVOLVEMENT IN THE PROJECT DEMONSTRATED THROUGH INCREMENTAL REASONING : 11. Dioxins and furans – Under the business as usual scenario, the current lack of regulations and industrial standards for dioxin and furan emissions will very likely remain unchanged, due to insufficient technical and technological capacity in the government, and particularly in the EEAA, for monitoring and enforcement. The situation is probably even less likely to improve in the local context, where the inventory of industrial emissions may have been severely underestimated, no resources are available to improve the quality of the data, and therefore where the true scale of the problem remains unknown. Without the government’s capacity and without the public’s awareness, there are no foreseeable drivers for industry to upgrade their practices and/or their facilities, following recognized BAT/BEP for reducing dioxin and furan emissions. With time, emissions are likely to further increase in aging industrial facilities, and without regulatory incentives for newly established facilities to install pollution control (including dioxin and furan) technologies. 7 12. Under the alternative scenario, financial and technical assistance from CIDA and from the proposed GEF Project will be used first to quantify the magnitude of the emissions in the highest dioxin and furan emitting sectors. Second, capacity will be strengthened within the government and in industry on issues involving pollution control and BAT/BEP, and this will drive the necessary regulatory changes that will ultimately lead to less polluting industrial operations. Third, demonstrations of cost-effective and viable practices/technologies in key polluting sectors will not only aim at achieving reductions in dioxin and furan emissions, but will also lead to greater energy efficiency and overall sustainability. These demonstrations will be well documented and carefully monitored by the government, and they will be used across sectors, to demonstrate and to promote the viability and the effectiveness of the upgrades. The timing of this Project and of the planned demonstrations is right, as the success of the EPAP program becomes widely known across the industrial sector, and the financial tools developed under that program may be used for the modernization and upgrade of heavy dioxin and furan emitters. 13. PCBs: Under the current scenario, no regulations are in place that would allow the implementation of a national phaseout of PCBs by 2025, in line with the targets of the Stockholm Convention. No national baseline is available, public awareness about the risks of PCBs is low, and no government capacity exists to evaluate potential alternatives for the safe handling of PCB-containing equipment. Moreover, no alternatives exist for the adequate management and/or disposal of PCB-contaminated oils and electrical equipment that are currently held in government or private facilities around the country. Under this scenario, no incentives exist for private or public owners of electrical equipment to determine whether it contains PCBs, and if contaminated, no there is no motivation for its safe handling. The situation is made even more critical by local, indiscriminate practices of oil recycling, which may have led to the cross-contamination of an unknown number of transformers nation-wide. Although recently banned, without enforcement the practice of opening electrical equipment, draining and mixing oils and ultimately topping up other open systems will continue, with potentially devastating impacts on human health and the environment. 14. Under a much needed alternative scenario, Project resources will be used to update the regulatory framework such that it makes it possible to control, manage and ultimately eliminate the use of PCB-containing equipment, along the country’s commitment to the Convention. The Project will build capacity, both in the public and private sectors in the use of adequate procedures for the safe-handling of PCBs. Oil recycling practices will be strongly controlled. The Project will also develop a management plan that will ultimately lead to the treatment and/or disposal of off-line, government-owned PCB contaminated oils and equipment, and that will also make provisions for the decommissioning of all on-line PCB-tainted equipment, by 2025. By strengthening regulation, building awareness, providing training, demonstrating procedures for decommissioning and safeguarding equipment, and putting in place a plan aiming at eliminating all publically-owned PCB-containing equipment, the government is setting the context to engage the private sector in a plan that will gradually phase out all PCB-contaminated equipment in Egypt. 15. Obsolete pesticides: An independent evaluation of the ASP confirmed the multiple benefits added value of the Regional Programmatic approach adopted for implementation. It was noted that the Program approach that will be pursued under ASP-P2 and that will include all Component 4 activities to be implemented in Egypt, will provide for better leverage towards harmonization of policies and regulations across the Region. This approach will also provide better leverage for mainstreaming of global environmental concerns into decision-making. G. INDICATE RISKS, INCLUDING CLIMATE CHANGE RISKS, THAT MIGHT PREVENT THE PROJECT OBJECTIVE(S) FROM BEING ACHIEVED, AND IF POSSIBLE INCLUDING RISK MITIGATION MEASURES THAT WILL BE TAKEN: 16. The following risks have been identified at this early stage of Project preparation: Poor coordination among national and international stakeholders. To mitigate this risk, particularly under Component 3, the Project team will fully engage all stakeholders, including public and private sectors. In addition, a multidisciplinary National Steering Committee (NSC) will be set up under a Ministerial decree, which will consist of experts and senior staff from various Ministries and research organizations connected directly to POPs, as well as competent authorities of the governorates. Accidental spillage of PCBs and/or obsolete pesticides during handling, treatment or disposal. To avoid this risk the Project will ensure that a sound environmental management framework is developed to include all needed safeguarding provisions, in line with World Bank safeguard procedures. Resources may not be sufficient to support BAT/BEP adoption for dioxins and furans emissions reduction and/or for PCB management and disposal. The GOE is fully committed to its obligations under the Stockholm 8 Convention, including the total phaseout of PCBs by 2025 and the reduction of dioxin and furan emissions. The government is well aware that private sector participation in activities involving PCB phaseout and pollution abatement is essential to its ultimate objective. Demonstrating cost-effective, as well as viable technologies for treatment and disposal of PCBs and for dioxin and furan emissions reduction will be the first step in the process of achieving private sector support. The government will also focus on developing the appropriate regulatory environment and the enforcement structure that will ultimately help drive the conversion of the private sector. H. DESCRIBE, IF POSSIBLE, THE EXPECTED COST-EFFECTIVENESS OF THE PROJECT: 17. The Project cost-effectiveness will be determined during Project preparation based on the estimated PCB to be managed and collected; dioxins and furans releases to be reduced, and obsolete pesticide waste to be addressed. Through Project demonstration activities, potential alternatives will be assessed and the least cost option will be selected. Estimates of cost-effectiveness for alternatives will be provided at Project submission. I. JUSTIFY THE COMPARATIVE ADVANTAGE OF GEF AGENCY: 18. Under the GEF IV, the World Bank has demonstrated its ability to manage complex, multi-stakeholder investment projects under the POPs focal area, in particular on PCB management and elimination in China and Moldova. Relevant lessons learned from implementation of those projects will be built-in to the design of this FSP. Moreover, approximately 80% of the GEF resources requested for this Project will finance investment activities, which fall within the comparative advantage of the World Bank. The remaining resources will be used to finance strengthening of regulatory frameworks, capacity building and awareness raising, all critical Project components that, in the interest of sustainability, cannot be excluded from the overall approach. These elements reinforce the Bank’s goal of promoting institution strengthening, infrastructure development and policy reform. 9 PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT(S) AND GEF AGENCY(IES) A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE GOVERNMENT(S): (Please attach the country endorsement letter(s) or regional endorsement letter(s) with this template). NAME Dr.Mawheb Abou El Azm POSITION Chief Executive Office, EEAA MINISTRY EGYPTIAN ENVIRONMENTAL DATE (Month, day, year) AFFAIRS AGENCY B. GEF AGENCY(IES) CERTIFICATION This request has been prepared in accordance with GEF policies and procedures and meets the GEF criteria for project identification and preparation. Agency Coordinator, Agency name Steve Gorman GEF Executive Coordinator The World Bank Signature Date (Month, day, year) Project Contact Person Kanta K. Rigaud MNA Regional GEF Coordinator Telephone Email Address X34269 Kkumari@worldbank.org 10