GLOBAL ENVIRONMENT FACILITY
PROPOSAL FOR PROJECT DEVELOPMENT FUNDS (PDF)
BLOCK B GRANT
Country:
GEF Focal Area:
Project Title:
Project Duration:
Albania
OP-12 Integrated Ecosystem Management
Integrated Water and Ecosystem Management
Project
The World Bank
The National Environmental Agency and the World
Bank Water Projects’ PIU assisted by the
international private operator
US$27.285 million
US$15 million (IDA Credit)
US$4.285 million (GEF)
US$8 million (Municipalities and Government of
Albania counterpart)
5 years
GEF-Preparation Costs:
PDF Block B Funds Requested:
PDF Co-Funding:
Block A Grant Awarded:
US$350,000
US$ 35,000
No
Requesting Agency:
Executing Agencies:
Total Project Cost:
Financing Plan:
Project Objectives
The overall project objective, the bulk of which is to be financed with an IDA credit, is to
improve water supply and sanitation services including the management of wastewater
discharges to help preserve globally significant ecosystems in the coastal cities of Durres,
Lezhe, Saranda and Shengjin. The GEF grant component will specifically address global
benefits related to reducing impacts to international waters, conserving biodiversity in
coastal and marine ecosystems, and potentially increasing the sequestration of
greenhouse gases in terrestrial and aquatic ecosystems.
The main objective of the GEF component will be to capture global benefits by reducing
land-based pollution from the four cities mentioned above and protect and restore
endangered coastal and marine habitats by introducing low cost ecologically based
wastewater treatment technologies. The project will help promote and expand the use of
man made wetlands for wastewater treatment in areas where existing pollution loads are
threatening natural wetland systems critical for biodiversity.
The GEF component would specifically help protect and increase the habitat for
endangered water-birds, halophyte plants and other species of coastal marshes; restore
tidal marshland that is currently polluted at unsustainable levels by untreated sewage;
prevent destruction of the tidal marsh from sewage and avoid difficult and costly
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restoration in the future; create a buffer zone (constructed wetland) for the globally
important tidal marshes; improve the habitat value of wetlands by creating connecting
corridors between them; enhance protection of the Adriatic marine environment by
protection endangered Posidonia oceanica meadows which are essential for the marine
biodiversity and threatened by wastewater influx; improve environmental monitoring
capacity in the participating areas; and replicate the results in other cities in the region
and in neighboring countries.
Global Significance
Pollution from Albanian land-based sources presents a clear threat to the Adriatic Sea
environment, biodiversity of the coastal zone and also to the public health. Currently,
municipal and industrial wastewater is being discharged without any treatment or
monitoring either directly to the Adriatic Sea or to coastal rivers and marshlands, thus
polluting international water bodies, coastal areas, beaches, and marshlands of global
significance. Municipal and industrial wastewater have already destroyed many natural
habitats of coastal wetlands and rivers, their deltas and nearby sea bays. The global
significance of these habitats is given by their rareness in the region (e.g. Mediterranean
tidal marshes, sand dunes, typical alluvial Mediterranean forest, etc.) and the species
supporting by these habitats (Rana balcanica and Rana lecsone [Frogs], Phalacrocorax
pygmaeus [Pygmy cormorant], Lutra lutra [European river otter], Careta careta [Sea
turtle], Halophyla stipulacea, Pinna nobilis etc.).
Background
Degradation of the quality of trans-boundary water resources, caused mainly by pollution
from land-based activities (nutrients, pathogens, and oxygen-demanding wastes) is an
important problem for Albania. Four coastal cities: Durres, Lezhe, Saranda, and Shengjin
(with the total population of about 350,000) do not have any wastewater treatment
facilities and existing raw sewage outfalls are located either directly on the seacoast, on
the bank of coastal rivers or on drainage ditches that after a short distance lead to globally
significant tidal marshlands and to the sea.
Water and wastewater services are the responsibility of the municipalities. Recently, the
Government initiated the process of merging water and wastewater services.
Water/wastewater companies have very low productivity. Operational revenues are in
most cases insufficient to cover operation and maintenance costs due to very low tariffs,
low levels of revenue collection, insufficient metering, and a high number of illegal
connections. Water supply is intermittent, e.g. two hours a day in Durres.
The water sector is one of the priorities of the National Government. Several lending
operations from international financial institutions are supporting the rehabilitation of the
water and wastewater systems in the country, including the cities of Durres, Lezhe,
Saranda, and Shengjin.
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The proposed GEF component will rely upon works that are already underway in the
water and wastewater sector under the World Bank Water Supply Urgent Rehabilitation
Project (US$14.7 million, approved by the Board January 27, 2000). The proposed GEF
component is part of the proposed Municipal Water and Wastewater Project, which is
now under preparation by IDA and will be coordinated with the following other
initiatives launched to support the wastewater and environment development sectors in
Albania:





IDA Credit: Water Supply Urgent Rehabilitation Project (P066491)
IDA Credit: Social Services Delivery Project (P055383)
Albania Biodiversity Enabling Activity (GEF, World Bank)
Conservation of Wetland and Coastal Ecosystems in the Mediterranean Region (GEF,
UNDP Regional Project)
Strategic Action Program for the Mediterranean Sea (GEF, UNEP Regional Project)
Project Description
The project, to which the GEF would contribute, aims to capture global benefits by
reducing land-based pollution from the four cities of Durres, Lezhe, Saranda and
Shengjin and protect and restore endangered coastal and marine habitats by introducing
low cost ecologically based wastewater treatment technologies. The project will help
promote and expand the use of man made wetlands for wastewater treatment in areas
where existing pollution loads are threatening natural wetland systems and marine
environments critical for biodiversity.
Project Implementation Component
Component 1: Wetland and Marine Ecosystem Improvement (US$4.0 million).

Durres (population 300,000).
The IDA component (US$23 million) will finance the management fee for the private
operator who will be in charge of operating the sewerage and water supply system.
For the sewerage system the IDA component can only finance minor improvements
in the collection system and will focus to improve the water supply which in average
is only two hours per day, with parts of the network receiving no water at all. Credit
financed investment in much needed wastewater treatment facilities cannot be
justified under the IDA component because of the desperate financial situation of the
water utilities and the competing urgent needs to provide clean drinking water to the
people.
The investments proposed under the GEF component are: (i) Improvement of the
eight kilometer long open drainage channel into which the sewage is currently
discharged. The channel needs to be dredged to allow the wastewater to flow to the
site of the constructed wetland and to avoid flooding of nearby houses, agricultural
areas and meadows; (ii) construction of a settlement basin with two chambers for
sludge collection and removal near the point where the sewage is discharged into the
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ditch. This will prevent clogging of the ditch and reduce the load of the wastewater;
(iii) construction of wetland. The constructed wetland in this location will have
positive impact on both terrestrial and marine habitats: (i) First, it will provide
additional freshwater habitat for the bird population; the constructed wetland will be
adjacent (about 3 km) to a remaining part of undisturbed wetland, the proposed
Managed Nature Reserve “Rrushkull-Erzeni River Outlet”. According to the
Government’s Biodiversity Strategy and Action Plan 1999, the area under protection
has to be extended to 2,700 ha of which 1,400 is open water surface. The proposed
area has been identified as an Important Bird Area (IBA) for over 10,000 waterbirds.
Attempts will be made to create a “Protected zone of managed resources” or an
“habitat connecting corridor” between the constructed wetland and the “RrushkullErzeni River Outlet” (According to the Government’s Biodiversity Strategy and
Action Plan). (ii) Second, it will stop further damage on Posidonia beds (Posidonia
oceanica) close to the sewage outfall. There are extensive posidonia meadows just
offshore of the present sewage outfall (Biodiversity Strategy and Action Plan 1999).
Several studies (Pergent-Martini 1994, Neverauskas 1987) have made the connection
between receding Posidonia beds and increased nutrient concentration in the vicinity
of sewage outfalls. The beds of Posidonia oceanica, an endemic species of the
Mediterranean Sea, occur in linear fringes in most of the infralitoral, between 0.2 and
40 m depth. Posidonia oceanica supports 25% of the region’s flora and fauna and
provide essential feeding habitat for sea turtles, waterfowl, cephalopods, crustaceans,
shellfish and finfish. It is a priority habitat in the EU Habitats Directive as well as
endangered species listed on Annex II of Specially Protected Area protocol of
Barcelona Convention. For both, the proposed Managed Nature Reserve and the
“habitat connecting corridor”, additional management measured needs to be
implemented under this GEF component.
At present the Durres Water and Wastewater Utility is not able to implement an
environmental sound wastewater disposal practice. Should they become able to do so
in the future, they would most likely prefer a conventional wastewater treatment
method. Protection and enlargement of wetlands do not create the local benefits the
utility is looking for. Instead the measures proposed for GEF funding would address
global benefits by (i) saving the remaining undisturbed wetland habitat from
destruction, (ii) conduct important habitat restoration by constructing a wetland in an
area of a former wetland and thereby increase biodiversity, (iii) increase wetland
habitats in the area, (iv) protection and enlargement of the habitat for endangered
hygrophyte and halophyte vegetation and related species, (v) protection of
biodiversity in nearby marine environment, (vi) saving of restoration cost by
preventing the destruction of wetlands, and (vii) improving the habitat value of
wetlands by creating an “habitat connecting corridor” between them.
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
Lezhe (population 30,000)1 and Shengjin (population 12,000).
The IDA component will finance the management fee for the private operator who
will be in charge of operating the sewerage and water supply system. For the
sewerage system the following investment is anticipated under the IDA component:
Provision of heavy duty equipment for cleaning sewers and surface water drains and
rehabilitation and replacement of critical sewers in Lezhe and Shengjin. This is
expected to end the frequent (up to three months in a year) flooding with sewage that
occurs in several settlement areas, including the area where a school is located.
Additional credit finaced investment in the sewage sector can financially not be
justified.
The following activities are proposed to be funded under the GEF component:
establishment of a constructed wetland near the existing wetland and connecting it to
the existing sewerage system. It will naturally process the collected wastewater prior
to the final discharge into the Drinit River that runs through the Kune and Vaine tidal
marshland. This will stop the current practice of discharging untreated sewage into
the Drinit River, just approximately one kilometer before the river reaches the Kune
and Vaine tidal marshland and is polluting the marshland at an unsustainable level.
This will also increase the storage of greenhouse gases in terrestrial and aquatic
ecosystems. According to the Government’s Biodiversity Strategy and Action Plan,
the Kune and Vaine tidal marshland, which covers an area of 1,700 ha, is proposed to
become a Managed Nature Reserve. It is an area of very well developed aquatic
(brackish and freshwater) vegetation and important area for waterbirds. Inside the
marsh is a small typical Mediterranean forest and the Drinit river outlet is of
particular importance for migratory fish species. Endangered species living in the
proposed Managed Nature Reserve are e.g.: a) the globally threatened Phalacrocorax
pygmaeus (Pygmy cormorant); b) Myotis-myotis (Mouse-ear bat); c) Rana balcanica
and Rana lecsone (Frogs); and d) - Lutra-lutra (Eurasian river otter).
It is foreseen under the GEF component to enhance the management of the proposed
Managed Nature Reserve. Currently the management and protection is insufficient
and illegal wood cutting and artificial changes in the fragile water regime is posing a
severe negative impact on the wetlands. In the foreseeable future, the Lezhe water
and wastewater utility will only be able to deal with the problems of flooding of
sewage in the city. At the time the utility might become capable to implement sound
sewage disposal, the fragile habitat of the tidal marshland will already be destroyed.
The construction of a wetland does not generate any local benefits, therefore it can be
expected that the utility would choose a conventional treatment system as soon as
they can effort it. The GEF component instead would address global benefits that
would otherwise not been achieved by (i) restoring tidal marshland that is currently
polluted at unsustainable levels by untreated sewage, (ii) preventing reduction of
biodiversity in the tidal marshland due to increasing inflow of sewage, (iii) avoiding
difficult and costly restoration of the marshland later on, (iv) creating a buffer zone
1
The towns of Lezhe and Shengjin are served by one utility that serves the entire area around the town of
Lezhe.
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(constructed wetland) for the globally important tidal marshland, and (v) protecting
and increasing the habitat for endangered waterbirds and other species of the
marshland by adding a constructed wetland.

Saranda (population 30,000)
The IDA component will finance the management fee for the private operator who
will be in charge of operating the sewerage and water supply system. For the
sewerage system the following investment is anticipated under the IDA component:
Construction of a main sewer trunk to connect Saran, the new coastal settlement area
south-east of the city, to the sewerage system. This, together with investment
currently undertaken by EU PHARE, would reduce wastewater discharge directly
along the tourist beach in Saranda. The marine pollution would continue further
away from the city, because the redirected sewerage flow would be discharged
untreated into Cuka canal, 500 meters before the canal ends at the shore-line.
This GEF component, designed for improving the water quality and the marine
ecosystem in Saranda Bay, would finance the construction of a wetland for
wastewater treatment close to Cuka canal. The constructed wetland is expected to
have positive effect on marine and terrestrial ecosystems. Saranda bay is adjacent to
Kakome bay, an ex military area providing resting sites for the sea turtle Careta
careta. There are documented tracks of sea turtles on the beach and failed nesting
attempts. According to the Government’s Biodiversity Strategy and Action Plan
1999, an area 2,200 ha at Kakome bay is proposed to become a “Protected Landscape
and Seascape Area”, and 400 ha should be designated as Strict Nature Reserve.
Saranda bay acts as a buffer zone that reduces the transport of pollution into Kakome
bay. According to the Coastal Zone Management report 1997 there is significant
damage to posidonia meadows at a nearby site (Ksamili bay) associated with raw
sewage inputs. Based on very high nutrient loads in the Saranda bay itself, there are
strong indications that posidonia ecosystem might be severely stressed at the bay and
surrounding area (Pergent-Martini 1994, Neverauskas 1987). Constructed wetlands
will also provide crucial freshwater habitat for birds and other animals in the Butrinti
Lake area. The ecological balance of the Butrinti lake and surrounding area has been
drastically changed as the result of the diversion of Bistrica river directly to the sea
through Cuka channel in mid fifties resulting in the lake becoming brackish. A large
number of animals registered in Butrint and Saranda bay are considered as having an
unfavorable conservation status either nationally or internationally. A detailed
analysis of the major groups of animals has shown that Saranda bay and Butrint
shelters 34 species of Global Conservation Concern (14 Globally Endangered), 88
species of National Conservation Concern and 126 species of European Conservation
Concern. Butrinti archaeological site is in the UNESCO list.
At present the Saranda water and wastewater utility is not able to implement an
environmentally sound sewage disposal practice. The GEF component will address
global benefits by reducing pollution at the beach and protecting the marine
ecosystem from destruction. Even if the Saranda water and wastewater utility should
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implement environmental sound disposal practice later, by then the marine
environment would have been destroyed without the GEF component and very
difficult and costly to restore.
Component 2: Replication Component (US$100,000). This component will fund the
dissemination of the project’s findings in other cities of the region. This project design
will have a high potential for replication in Albania and other developing countries of the
Mediterranean region. Natural wastewater treatment using constructed wetlands may
become a demonstration area for the similar projects in Croatia, Bosnia and Montenegro,
and other countries.
Component 3: Strengthening of the management, monitoring and enforcement capacity in
wetland and coastal area protection in the participating areas (US$100,000). This
component will assist the National Environmental Agency, the Ministry of Agriculture
and Forestry, or other entities to be identified, in enhancing the management of the
wetlands and coastal areas effected by the improvements under the GEF-component. It
will finance the assistance in establishing a long-term operations, maintenance,
monitoring and funding plan. Under the proposed PDF Block B Grant, the consultant will
also evaluate the need for a nation wide Coastal Areas and Wetland Conservation
Strategy. Ramsar conventions asks for a Wetland Conservation Strategy for member
countries and Albania does not have one.
Component 4: Project Management and Monitoring. Component 2 and 3 will be managed
and monitored by the National Environmental Agency. The existing personnel of the
World Bank’s Water Projects’ PIU will conduct the project management and monitoring
for component 1. This unit has experience in implementation of World Bank projects,
including financial management and procurement. Only about one-third of the World
Bank’s Water Projects’ PIU costs (two staff persons per year, or US$85,000) would be
funded by the GEF.
Implementation Arrangements
The National Environmental Agency, the World Bank’s Water Projects’ PIU and the
international private operator will implement the project. The procurement of the private
operator is ongoing and expected to be finalized by early 2002. Project monitoring will
be conducted by the National Environmental Agency and the World Bank’s Water
Projects’ PIU.
For the IDA component, a Social Assessment was already carried out. For the GEF
component a separate participation plan will be developed during project preparation.
Key stakeholders who are anticipated to participate in open discussions or workshops are:
representatives from the National Environmental Agency and its local inspectors,
Ministry of Agriculture and Forestry and their local offices responsible for managing the
wetlands, water and wastewater utilities, municipalities and communes, environmental
NGO’s, local fishermen community, and Albanian scientists.
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Description of Proposed PDF Activities
The PDF Block B Grant would help finance activities leading to the development of an
investment program for GEF and bilateral financing. Preparation activities for this
program would focus on the following:
Feasibility Study
(i)
Review and assess the available information of ground-, sea-, surfaceanddrinking water quality in the project area. Determine the requirements of a
ground-, sea-, surface- and drinking water quality monitoring scheme forthe
project area.
(ii)
Prepare the required topographical surveys, and any other information which may
be necessary to supplement the information needed to design the systems to be
built.
(iii)
Define, design and analyze alternatives for different kinds of constructed wetlands
and determine the least cost solution among all the technically feasible, including
the analysis of management options, O&M costs, knowledge transfer as well as
the social assessment to determine beneficiary habits and preferences.
(iv)
Economic analysis estimating required investments and the incremental costs of
the project.
(v)
Carry out consultation with the key stakeholders during the feasibility study phase
in order to disseminate information on project activities. Key consultation
activities should include:



Meetings with public authorities and other institutional stakeholders
Public meetings with local stakeholders and social groups representatives
Interviews with members of local communities and site workers
(vi)
Prepare a proposal to strengthen the management, monitoring and enforcement
capacity in the wetland and coastal areas impacted by the project. This proposal
shall assist the National Environmental Agency, the Ministry of Agriculture and
Forestry, or other entities to be identified, in enhancing the management of these
areas. It will include the assistance in establishing a long-term operations,
maintenance, monitoring and funding plan.
(vii)
Evaluate the need for a nation wide Coastal Areas and Wetland Conservation
Strategy.
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Environmental Impact Assessment
(viii) Assess the current baseline data on the major environmental characteristics of the
project area: water, land, biological, socio-economic, health and cultural. Review
available studies related to the environmental situation in and around the Durres,
Saranda, Lezhe and Shengjin, as well as all other areas on which the Albania
Integrated Water and Ecosystem Management Project might impact (e.g. coastal
areas and rivers in the vicinity of the four municipalities etc.).
(ix)
Identify areas for which insufficient information is available and collect additional
information. Study the existing environmental conditions in and around the
project areas, with special emphasis on surface and ground water quality, water
regime and biodiversity in the marshlands, human health, impact of wastewater
disposal practices, etc.
(x)
Determine potential impacts of proposed project, namely:
a) Determine the environmental benefits from the proposed rehabilitations in and
around the 4 municipalities
b) Provide a detailed analysis of the potential impacts, now and in the future,
both positive and negative, on all major environmental components: water,
land, biological, socio-economic, health, cultural, etc.
c) Include analysis of alternatives, including the “no action alternative”
(xi)
Carry out consultation with the key stakeholders. Consultation activities will
include:
a) meetings with public authorities and other institutional stakeholders
b) public meetings at which stakeholders will be brought together and
encouraged to discuss issues
c) interviews with members of local communities
(xii)
Prepare the Environmental Management Plan. The EMP should -identify
significant impacts of the project on various environmental components during
the pre-construction, construction and operational phases of the project. It should
outline control strategies for mitigating adverse impacts at every phase of the
project, and indicate who will be responsible and how much it will cost. The EMP
should provide details regarding any environmental monitoring consistent with
the mitigation plan. The EMP should discuss institutional arrangement for
implementation of the management plan and make recommendations for
institutional strengthening.
(xiii) Study all the aquifers in the four municipalities, and offer an opinion on what
impact the present and future use will have on the marshlands. Verify if now, or
in the future any other users are, or could be, using the same aquifers and offer an
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opinion on whether this situation is, or would be, sustainable. Outline, in detail,
the needs of further field investigation if required.
(xiv)
Check if all project components are in compliance with all relevant WB safeguard
policies: Natural Habitats (OP 4.04), Forestry (OP 4.09), Cultural Property (OPN
11.03), Involuntary Resettlement (OD 4.3), Projects in International Waters (OP
7.5), Pest Management (OP 4.09), etc. Verify if Albania is a signatory to any
international water treaties, if so, check the compliance with these treaties. In the
case of non-compliance, suggest measures for improvement.
Final Design
(xii)
Prepare detailed designs, contract drawings and contract documents including
technical reports and calculations, specifications and instructions, schedules and
quantification of materials, works and equipment in the measure required to
proceed with the construction of the works.
(xiii) Prepare detailed cost estimates for the works.
PDF Block B Outputs
The primary output resulting from the activities supported by the proposed PDF Grant
will be the Feasibility Study, the Environmental Impact Assessment and the Final Design
of the proposed GEF component.
Eligibility
Albania signed the Convention on Biological Diversity in January 1994. Besides that
Albania is the signing party of the Barcelona Mediterranean Convention for the
Mediterranean Sea (1976) as well as participant of the Regional Program for
Conservation of Wetland and Coastal Ecosystems in the Mediterranean Region (UNDP)
(since 1997).
The proposed project is consistent with the GEF Operational Strategy, supporting longterm protection of globally important ecosystems and addressing issues like:

Degradation of the quality of trans-boundary water resources, caused mainly by
pollution from land-based activities

Physical habitat degradation of coastal and near-shore marine areas, lakes, and
watercourses (for example, wetlands, estuaries), as a result of inappropriate
management (for example, land conversion, dredging, coastal construction, and
irrigation).
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
Biodiversity protection and sustainable management of coastal, marine and freshwater
ecosystems.
In terms of GEF Operational Programs, the project will support Operational Programs
No.2 (Coastal, Marine and Freshwater Ecosystem), No.9 (Integrated Land and Water
Multiple Focal Area), No.10 (Contaminated-Based) and No.12 (Integrated Ecosystem
Management).
National Level Support
The project is linked to the Albania – Biodiversity Strategy and Action Plan that was
adopted by the Government in 1999 (sponsored by GEF). The World Bank/METAP is
currently assisting the Government of Albania in updating the National Environmental
Action Plan (FY01/02), which will prioritize environmental issues and identify measures
for immediate action. Coastal zone management has already been discussed within this
process as a high priority for Albania.
Currently, the United Nations Environmental Program (UNEP) is developing the
Strategic Action Program to address pollution from land-based activities in the
Mediterranean Region (SAP MED). The project would complement the SAP MED and
the Regional Program for Conservation of Wetland and Coastal Ecosystems in the
Mediterranean Region (UNDP), and assist the Government in meeting its international
obligations under the Barcelona Mediterranean Convention (1976).
The introduction of environmentally sound wastewater treatment and adequate
management of Natural Reserves, is a prerequisite for environmentally sound
development of Albania’s coastal areas. Reduction of the untreated wastewater
discharges and rehabilitation of the tourist attractive areas are among the primary
priorities of the Albanian Government. Rehabilitation and clean-up of the Adriatic Sea
coastal areas will be a substantial factor in further development of tourism business in the
region and attraction of new investment in this part of the national economy.
With the gradual adoption of European Structures under the Stabilization and Association
Agreement with the EU, the Government plans to place an increasing emphasis on
environmental protection in the nearest future.
Justification for PDF Grant
A single project will be prepared integrating both IDA and GEF financing. The IDA
project will cover the baseline cost of wastewater collection, which generates domestic
benefits. In addition the IDA component will cover the cost for the private operator,
managing the operation of the constructed wetlands. The cost for operating the
constructed wetlands will be covered by tariffs and subsidies from the Government. The
GEF Block B grant would only finance the costs of designing those project activities that
will generate global benefits and which would be financed in the project with GEF
resources.
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Timetable
The PDF activities are expected to be completed within five months of their initiation. A
GEF Project Concept Document is expected to be delivered to the GEF Council for
review in Mai 2002.
Budget for GEF-Preparation Work Program (US$)
Activity
Feasibility
Study
Environmental
Impact
Assessment
Final Designs
Recruitment
of
private
operator
TOTAL
GOA
GEF
180,000
TOTAL
180,000
35,000
50,000
85,000
120,000
120,000
385,000
350,000
385,000
35,000
Andreas Rohde
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September 24, 2001 12:39 PM
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