PROJECT IDENTIFICATION FORM (PIF)
PROJECT TYPE: Full-sized Project
THE GEF TRUST FUND
Submission Date: 9 November 2007
Re-submission Date: 9 May 2008
PART I: PROJECT IDENTIFICATION
GEFSEC PROJECT ID1: 3543
GEF AGENCY PROJECT ID: GF/AZE/08/XXX
COUNTRY(IES): Republic of Azerbaijan
PROJECT TITLE: Environmentally Sound Management and Disposal
of PCBs
GEF AGENCY(IES): UNIDO
OTHER EXECUTING PARTNERS: The Ministry of Ecology and
Natural Resources (MENR)
GEF FOCAL AREA(S): Persistent Organic Pollutants
GEF-4 STRATEGIC PROGRAM(S): POPs-SP1, POPs-SP2
NAME OF PARENT PROGRAM/UMBRELLA PROJECT:
INDICATIVE CALENDAR
Milestones
Expected Dates
Work Program (for FSP)
CEO Endorsement/Approval
GEF Agency Approval
Implementation Start
Mid-term Review
Implementation Completion
July2008
January 2009
February 2009
February 2009
June 2010
January 2012
Project framework
Project Objective: To comply with the Stockholm Convention (SC), through implementing the PCB-related action plans of the NIP
including the necessary regulations and standards, strengthening of institutions at the national and local levels, enforcement capacity
building, and awareness among the stakeholders in order to manage PCB wastes in an environmentally sound manner.
Project Components
1. Regulatory and
institutional
capacity building
for PCBs
management
1
Indicate
whether
Investm
ent, TA,
or
STA**
TA
Expected Outcomes
Indicative GEF
Financing*
($)
Institutional
capacity capable to
support and
efficiently
implement the
ESM system of
PCBs;
compliance to SCrelated
legislations;
illegal disposal
prevented;
improved
occupational safety
system
Project ID number will be assigned initially by GEFSEC .
UNIDO PIF FSP Azerbaijan
9 May 2008 revised
Expected Outputs
Capacity developed for
ESM of PCBs,
including
- POPs-related
regulations, norms,
standards;
- enforcement
measures addressing
the SC;
- 3 workshops for
local authorities and
environmental law
enforcements
agencies;
- one laboratory
strengthened with
methodologies,
procedures and
information
management
systems for
analytical data
processing;
- training of staff of
environmental
agencies in
monitoring for safe
PCB disposal
255,000
%
45
Indicative Cofinancing*
($)
315,000
Total ($)
%
55
570,000
1
2. Sustainable and
safe management of
PCB stocks
TA/inves
tment
3. Increased
awareness among
private and public
stakeholders for
PCB management
TA
Problem of PCBcontaminated
operational and
obsolete
transformers
solved using
BAT/BEP;
danger of
spreading PCB
contamination
avoided;
efficient planning
of future actions
based on the
inventory data
permits to reduce
the ESM running
costs;
increased
compliance to
PCB-related
obligations
Acceptance and
commitment for
compliance to the
POPs-related
legislations
Adapted guidelines and
knowledge transferred
for sound PCBs
management;
country-wide inventory
of 20,000 pieces of
electrical equipment;
phasing out of PCBcontaining equipment;
540 tones of PCBcontaining equipment
and/or wastes are
disposed of.
1,720,000
30
3,800,000
70
5,520,000
Knowledge transfer on
PCB management
through training
workshops;
200 trained workers,
1000-2000 informed
people will reduce
possible unprotected
exposure to PCB wastes
and introduce protective
practice/measures at
work place
40,000
31
90,000
69
130,000
105,000
35
200,000
65
305,000
2,120,000
32
4,405,000
68
6,525,000
3. Project
management
Total project costs
* List the $ by project components. The percentage is the share of GEF and Co-financing respectively to the total amount for the component.
** TA = Technical Assistance; STA = Scientific & technical analysis.
B. INDICATIVE FINANCING PLAN SUMMARY FOR THE PROJECT ($)
Project Preparation
Project
GEF Grant
160,000
2,120,000
Co-financing
165,000
4,405,000
Total
325,000
6,525,000
Agency Fee
212,000
Total
2,492,000
4,570,000
212,000
7,062,000
* Please include the previously approved PDFs and planned request for new PPG, if any. Indicate the amount already approved as
footnote here and if the GEF funding is from GEF-3.
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UNIDO PIF FSP Azerbaijan
9 May 2008 revised
C. INDICATIVE CO-FINANCING FOR THE PROJECT (including project preparation amount) BY SOURCE and
BY NAME (in parenthesis) if available, ($)
Sources of Co-financing
Project Government Contribution (Ministry of Finance and
MENR)
GEF Agency(ies) (UNIDO)
Multilateral Agency(ies)
Private Sector (Azerenergy-parastate)
Total co-financing
Type of Cofinancing
Amount
Cash (80%)
In-kind (20%)
Cash
720,000
180,000
100,000
Cash (60%)
In-kind (40%)
2,043,000
1,362,000
4,405,000
D. GEF RESOURCES REQUESTED BY FOCAL AREA(S), AGENCY(IES) SHARE AND COUNTRY(IES)*
* No need to provide information for this table if it is a single focal area, single country and single GEF Agency project.
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 Stockholm Convention on persistent organic pollutants (POPs) recognizes that the POPs pesticides and polychlorinated biphenyls
(PCB) “possess toxic properties, resist degradation, accumulate and are transported through air, water and migratory species, across
international boundaries and deposited far from their places, where they accumulate in terrestrial and aquatic ecosystems”. Exposure to
POPs pesticides and PCBs, due to contamination of traditional foods and its subsequent biomagnification effects, represents public health
concerns, in particular for women and through them, upon future generations.
2
The central institutional framework has been created during the development of the National Implementation Plan (NIP). The NIP
identified that there are no regulations specifically addressing Articles 3 and 6 of the SC. There are no specific standards and guidelines
that would serve as a basis for the progressive phase-out and elimination of POPs wastes. Stakeholder ministries do not share information
on POPs and related activities. This might result in inappropriate implementation and consequently non-compliance to the SC.
3
During the preliminary inventory, carried out during of the Enabling Activity project, 384 tons of PCB-containing equipment was
identified. However the inventory was incomplete and the project team continues to improve the inventory of transformers after the
completion of the EA project. The number of documented PCB stocks is still increasing due to the on-going inventory at Azerenergy,
which is the largest power utility producer in the country, controlling 90% of the electricity market. Other small owners of PCBcontaminated transformers and wastes have also been identified. Currently the total identified weight of PCB-contaminated equipment
increased to 540 tons.
4
After the completion of the NIP, Azerenergy is planning to introduce new management practices for the maintenance of electrical
equipment, specifically transformers in order to minimize their cross-contamination. Transformers are tested with field test kits. However,
lack of technical expertise and improper disposal options concerning PCBs wastes are causing serious difficulties. Currently, phased-out
pieces of equipment are stored with minimal or no protection from leakages and minimum or no awareness of all groups of technical
specialists, managers and general public towards the harmful effects of PCBs to human health and the environment. The company has no
plan to complete phasing out of PCB-containing equipment. Owners of small stocks of PCB wastes in most cases are completely unaware
of the danger posed by contaminated wastes.
5
The NIP revealed that there are no facilities for the environmentally sound elimination of POPs wastes and the most obvious method of
disposal is export to a certified incineration company abroad.
6
There is a need for extensive capacity building effort, specifically on training so that central authorities can take the leading role in the
implementation of the NIP action plans and be capable of providing guidance to public and private enterprises in the sound management of
POPs. NIP implementation at the country level requires that these barriers are to be overcome and adequate capacities are to be created.
3
UNIDO PIF FSP Azerbaijan
9 May 2008 revised
Monitoring capacities are also lacking, especially proper laboratory capacities for POPs analysis, along with the necessary national
standards, methods and accreditation procedures.
B.
7
Awareness of the harmful effects that POPs pose on human health and the environment is generally low. Technical staffs, which maintain
and service transformers, have direct contact with PCB containing equipment and wastes without knowing the associated health risks. Due
to the current unsound storage conditions, PCBs are continuously released into the environment.
8
The immediate risks to the groups of population who have contacts with PCBs (or living close to such places) will be reduced by the
awareness campaign, by marking/labelling the storages and contaminated spots with special warning signs and by restricting access to
them, by training specialists, dealing with PCB-containing equipment and PCB wastes in safe methods of working with these substances,
by providing them with protective cloths and equipment.
9
The proposed GEF Full-Sized Project will consolidate ongoing and planned activities in meeting Azerbaijan obligations to the SC. The
project will build capacity in the country to effectively address the management of POPs wastes, through (a) developing appropriate
legislations, (b) providing capacity building for the key stakeholders, (c) raising awareness among private and public stakeholders
regarding POPs waste management and (d) preventing the illegal disposal/dumping of PCBs.
10
The project will overcome the PCBs-related barriers by (a) developing the detailed PCB-inventory,( b) assisting to dispose of at least 540
tonnes of PCBs waste, (c) providing training to owners of oil-containing electrical equipment on the environmentally sound management of
PCBs, (d) developing a plan and initiate for final phasing out of PCB-containing equipment.
11
The global benefit of the project will be the reduction of ongoing human health and environmental threats from POPs, through the
prevention of future releases of PCBs into the environment due to improper management of electrical equipment. The project will remove
540 tones of PCBs distributed among different owners by safe containment, storage and final disposal. The project will contribute towards
the protection of the waters of the Caspian Sea from POPs.
12
As per paragraph 1(c) of Article 10 of the Stockholm Convention the project will create awareness among local communities, especially
among women, children and the least educated on the health and environmental effects of POPs. It will facilitate the implementation
linkages of existing agreements such as the Stockholm Convention, the Rotterdam Convention on Prior Informed Consent Procedure for
Certain Hazardous Chemicals and Pesticides in International Trade, and the Basel Convention on the Control of Transboundary Movement
of Hazardous Wastes and their Disposal.
13
The cost-effective use of global financial resources is the principal advantage of the project, which will be achieved through implementing
the PCB management and disposal for the purposes of protecting the health of the people, containing the environmental pollution, reducing
the global transfer of POPs. The more efficient use of available financial resources will be achieved due to the following reason:
a) efficiency/economic reasons:
the local separation of PCB transformers and other PCB wastes, which will be done by trained specialists properly protected and
equipped, will permit reducing weights and volumes of PCB wastes for final disposal. Training and awareness programmes could
be done for all groups of technical specialists, dealing with POPs;
the specialized local transportation vehicle could be used for collecting the PCB for final disposal;
saving could be achieved by making paper works for PCB wastes of different owners while preparing them for international
transportation;
financial resources of different small and large private owners of POPs could be pooled for collection and disposal of POPs;
a larger volume of PCBs proposed for international bidding permits to receive lower specific disposal prices from incineration
companies;
b) social/health/environmental reasons:
the activities of the project will cover the whole country, thus maximum population will be positively affected by the health and
environment protection measures;
collection of PCBs from small owners will release some land, which, in some cases, could be decontaminated and used for other
purposes; the project will recommend technical solutions to the owners;
growing awareness of the danger represented by POPs could make some owners to dispose them in environmentally dangerous
methods (open burning or dumping), so the soonest actions of registering and collection of PCB-contaminated oil prevents their
illegal disposal.
DESCRIBE THE CONSISTENCY OF THE PROJECT WITH NATIONAL PRIORITIES/PLANS:
14 NIP identified the following priorities:

Key objective 1: To improve legislation on POPs substances

Key objective 2: To destroy existing POPs pesticides

Key objective 3: To eliminate PCB equipment

Key objective 4: To reduce POPs emissions from industrial and municipality wastes and sewerages
UNIDO PIF FSP Azerbaijan
9 May 2008 revised
4






Key objective 5: To improve environmental performance in the energy sector
Key objective 6: To improve environmental performance in the industry sector
Key objective 7: To improve measures on environmental impacts mitigation in the transportation sector
Key objective 8: To decrease the number of existing yet unidentified POPs sources, stockpiles etc
Key objective 9: To prohibit the production of POPs and other substances that might be included on the POPs list in the future
Key objective 10: To strive for sustainable development of ecological agriculture
15
The proposed project addresses national priorities of the NIP, specifically No. 1, 3, 5, and 8. Project activities are in line with the
corresponding action plans of the NIP.
16
Azerenergy started the detailed inventory process right after the NIP development. The inventory is progressing, but certain barriers have
been encountered such as lack of expertise, analytical resources and awareness.
C
DESCRIBE THE CONSISTENCY OF THE PROJECT WITH GEF STRATEGIES AND STRATEGIC PROGRAMS:
17
The project is consistent with SP-1 through (a) putting in place a regulatory framework for the management of POPs wastes, (b)
strengthening and improving the sustainability of the POPs waste management capacities of the central government and other
stakeholders,(c) improving the enforcement capacity of POPs-related legislations through laboratory strengthening and training, whereby
Azerbaijan will have the capacity to meet its obligations under Article 3 and 6 of the SC.
18
The project addresses SP-2 by (a) eliminating PCBs from illegal disposal, (b) disposing of PCBs wastes in an environmentally sound
manner, (c) improving the working conditions of those, who might have direct contact with PCBs, (d) reducing the exposure of local
communities to POPs, whereby the environmental and health related risks resulting from PCBs will be reduced.
D.
OUTLINE THE COORDINATION WITH OTHER RELATED INITIATIVES:
19
The second phase of the Caspian Environment Programme (CEP) entitled: Towards a Convention and Action Programme for the
Protection of the Caspian Sea Environment addresses, among other areas, PCBs management and capacity building activities with a budget
of 260,000 US$ for 5 countries of the region. It also addresses a number of other areas, like illegal use and trade of POPs pesticides,
harmonization of approach among customs authorities, improving the storage conditions of obsolete pesticides, disposal of POPs pesticides
and raising public awareness. This regional programme is limited only to coastal areas of the country and yet the program has not been
funded.
20
The project will establish proper linkages with the Caspian Programme. Initial consultations with World Bank representatives took place
during the NIP endorsement workshop in May 2007 in Baku and a follow-up meeting was held in Vienna in October 2007. In order to
avoid the duplication of actions and to establish the proper coordination, WB will be invited to the inception meeting of the project and
timely informed on the achievements of the project. In particular, the following benefit would be provided to the CEP in Azerbaijan:
improved regulations; adjusting and adaptation of different guidelines required for the EMS; trained technical, administrative staff;
technical facilities for PCB interim storage and processing; system of preparation of PCB wastes for exporting, including preparation of
papers for international transportation; recommendations and experience for reducing costs for exporting of wastes for elimination abroad
by maximizing the preparatory works locally by local companies; increased awareness at all groups of the population; etc.
E. DISCUSS THE VALUE-ADDED OF GEF INVOLVEMENT IN THE PROJECT DEMONSTRATED THROUGH
INCREMENTAL REASONING :
21
The project within its scope, framework, the proposed budget and the implementation period, will permit to support the already started
Government activities to prevent the spread of PCB wastes, to remove them from locations close to habitats, to restrict the “poisoning” of
the health and the environment. Without the GEF support the government would not be able to receive the advanced experience and
support in their actions and might repeat the mistakes of the past. The scope of the intervention would be much less and the main purposes
of their activities – prevention, containment and partial disposal from the most sensitive points – would not be attained. PCB wastes would
continue to be located next to habitats without proper management and treated without proper precautions, PCBs would continue to migrate
within and outside of the country and penetrate to the environment and to penetrate the food-chains.
5
UNIDO PIF FSP Azerbaijan
9 May 2008 revised
22
Without GEF’s support the legislations addressing POPs would not be available and the central authorities would not have the necessary
capacity to properly comply with the obligations of the SC. Without proper legislations and enforcement owners of electrical equipment
would not undertake inventories of PCBs and implement proper management practices. Due to unsound storage practices PCB
contaminated oil would continue to be released into the environment. In the absence of GEF support it would not be possible to undertake
the containment and disposal of 540 tons of PCB wastes. There is a high risk that 540 tons of PCB wastes will not be disposed of or will be
dumped and burned by unsafe methods, thus aggravating the environmental situation by producing more toxic substances: dioxins and
furans. Private sector and owners of PCBs will provide in-kind contribution (labour force, transportation vehicles, guarding of interim
storage facilities, etc.) and cash contributions for new equipment required for phasing out PCB-contaminated equipment.
23
It is foreseen that, as it is requested by Article 6 paragraph 1(e) states that Parties to the Stockholm Convention, the project will develop
appropriate strategies/recommendations on remediation measures for the owners of the sites.
24
With GEF’s assistance the basic foundational instruments for PCB waste management will be created. Authorities will have the capacity to
enforce the PCB-related legislations and provide guidance to public and private enterprises and local communities on PCBs.
25
By making full country inventory of oil-containing electrical equipment, all PCB-contaminated equipment will be labelled and regular
check-ups will be carried out. Leaking equipment will be removed from the network, therefore PCB releases from in-use electrical
equipment will be minimised.
26
With GEF’s assistance 540 tons of PCB wastes will be disposed. Capacity will be created to continue to dispose of POPs in an
environmentally sound manner and in accordance with international obligations and standards.
27
The preparation cycle for disposal of contaminated equipment, which includes collection and transportation of transformers to the interim
storage facility, separation of contaminated and clean parts will permit to reduce the costs need to be paid for incineration of PCB wastes.
The implementation of the preliminary separation procedures and preparation for final disposal will permit to keep the disposal costs within
US$ 3,000/ton. Recycling of ferrous and non-ferrous metal will contribute to the cost efficiency and permit to improve the efficiency of the
project, depending on the local prices for secondary metals. Detailed calculations of the incremental costs will be developed in the PPG
phase.
F. 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:
RISKS
RISK MITIGATION MEASURES.
The economic restructuring in the country
could cause major structural and human
resource changes at the executing agency.
Involvement and commitment of key governmental stakeholders can greatly reduce the
aforementioned risk. This commitment is available at all levels of the Government and the
legislative bodies.
Lack of national support in the enactment of
the proposed legislations and specific
standards and guidelines.
From the very beginning the project will involve all principal stakeholders as full and equal
partners. Local NGOs and civil societies will actively participate in the development of the
proposed legislations, guidelines and technical documents. It will create understanding and
strong support for the development and timely adoption of the necessary legislations.
During the PPG phase additional meetings for identifying additional locations and stocks as
well as workshops and meetings with investors and various donor agencies will be held to
address this risk.
Carefully selected success indicators and the adaptive monitoring practice will enable
timely implementation and high quality results.
The technical staff will have training in proper handling of PCB wastes and equipment.
Relevant guidelines will be developed/adjusted and introduced at the technical facilities of
the project and for transportation teams.
Protective clothes and equipment will be provided to the technical staff.
Places for wastes storage will be properly guarded to prevent admittance for non-authorised
staff.
The in-depth inventory will record volumes, weights and other conditions of PCBcontaminated equipment and wastes. The project management team and the environmental
authorities will be able to follow the disposal paths of the equipment and wastes until safe
disposal.
Removal, transportation to the dismantling facilities will be done following the
requirements for safe handling of PCB wastes. Staff will be properly trained and
specialized equipment will be provided.
Additional POPs wastes will be identified and
there will not be enough financial resources to
address them in the project.
Delays in project implementation and low
quality performance.
Technical staff, participating in the project
implementation, and, in particular, contacting
with PCB-contaminated equipment will be
excessively exposed to POPs harmful
influence.
Excessive contamination of the environment
during transportation/handling of the PCB
wastes. There is a danger that some wastes
could be disposed illegally at unauthorised
places, thus increasing the pollution of the
environment and creating new “hot spot”.
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UNIDO PIF FSP Azerbaijan
9 May 2008 revised
Human and environmental risks due to
handling of PCBs and pesticides
The immediate risks to the groups of population who have contacts with PCBs (or living
close to such places) will be reduced by the awareness campaign, by marking/labeling the
storages and contaminated spots with special warning signs and by restricting access to
them, by training specialists, dealing with PCB-containing equipment and PCB wastes in
safe methods of working with these substances, by providing them with protective cloths
and equipment.
G. DESCRIBE, IF POSSIBLE, THE EXPECTED COST-EFFECTIVENESS OF THE PROJECT:
28
The project also aims to keep POPs disposal costs below US$ 3,000/ton, which includes re-packaging, containment, handling,
transportation and disposal. The technical assistance for the local separation of PCBs waste, i.e. metal parts, dielectric, wooden and paper
wastes, will permit to reduce the weight, volumes and costs of transportation and disposal.
29
During the inventory of electrical equipment, the intention is to (a) use portable L2000DX equipment for PCBs analysis versus field testkits or GC analysis, (b) do the analysis on site versus shipping the samples to the laboratory and (c) label the equipment right after the
analysis thus reducing transportation and human resources costs. The target is to keep the cost of inventory under US$ 20 equipment,
which includes labelling.
30
Local experts versus international experts will drive public awareness activities. Assessments will be submitted electronically to the
international experts for review, thus international travel can be reduced. The Terms of Reference of the project personnel and experts will
be result oriented, with an explicit time limit for each deliverable, versus contracts for certain period of time with a list of duties. The
impact of GEF’s intervention will increase by linking project activities to the ongoing and future investment projects as stipulated above.
Detailed analysis of cost-effectiveness will be elaborated in the Full-Sized Project document.
H. JUSTIFY THE COMPARATIVE ADVANTAGE OF GEF AGENCY: GEF agency (UNIDO) is within the comparative advantage
matrix.
7
UNIDO PIF FSP Azerbaijan
9 May 2008 revised
8
UNIDO PIF FSP Azerbaijan
9 May 2008 revised