E802September 2003

Republic of Moldova

Agricultural Pollution Control Project

Environmental Assessment andEnvironmental Management Plan

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ACRONYMS & ABBREVIATIONS

ACSAAgency for Consultancy and Schooling in AgricultureACAAlliance for Co-operation in AgricultureAGeoMAgency of Geology of MoldovaBSSAPStrategic Action Plan for Rehabilitation of the Black SeaCAPMUConsolidated Agricultural Projects Management UnitCQConsultant QualificationECEuropean CommunityEMECEnvironmental Mitigation Eligibility CriteriaEUEuropean UnionGEFGlobal Environment FacilityGOEGovernment Owned EnterpriseGOMGovernment of MoldovaIDAInternational Development AgencyIOCIncremental Operational CostLCSLeast Cost SelectionLDPHLapusna Department for Public HealthLPALapusna Pilot AreaLTEALapusna Territorial Ecological AgencyMAFIMinistry of Agriculture and Food IndustryMECTDMinistry of Ecology, Construction and Territorial DevelopmentMFMinistry of FinanceMHMinistry of HealthNGO Non-Governmental OrganisationNSNational ShoppingNSCPMNational Scientific Centre of Preventive MedicinePAPPublic Awareness ProgrammePCCProject Co-ordination CommitteePMU Project Management UnitPPUProject Preparation UnitPSCProject Steering CommitteeQCBSQuality-and Cost-Based SelectionRECRegional Ecological Centre MoldovaRISP Rural Investment and Services ProjectSEIState Ecological InspectorateSFSState Forestry Service "Moldsilva"TACISTechnical Assistance for Community of Independent States

Exchange rate 19 April 2003. 14.75 Lei = US$ 1.

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Republic of Moldova: Agricultural Pollution Control Project (APCP).Environmental Assessment (EA) and Environmental Management Plan (EMP).

Introduction.

According to the GEF Black Sea Environmental Programme's 1997 Annual Report, the Danubecontributes 52% of the nitrogen (N) input (780,000 out of 1,500,000 t. N) and 67% of the phosphorous(P) input (100,000 out of 150,000 t. P.). These are the principal causes of eutrophication in the Black Sea.Because of decreased economic activity over the last 15 years in the former centrally planned economies,the total discharges of N & P have decreased by about 25%. However, as economic activities increase,discharge levels are anticipated to rise, unless steps are taken to introduce positive initiatives especiallyenvironmentally friendly land use practices. These practices should have the objective not only ofpreventing increased discharges with increased output, but also reducing current emission levels withoutsacrificing economic performance.

Each year, agriculture contributes about 900,000 t of N and 60,000 t of P to the Black Sea. Although onlyabout 1% to 2% of this comes from Moldova, principally because it only accounts for 1.6% of the landarea (3.38 million h ectares), the discharges of N and P from agricultural activities into surface wateraccount for about 90% and 93% respectively of its discharges into the Danube: these are far highernumbers than surrounding countries. (Nutrient Balances for Danube Countries: Moldova. ProjectEU/AR/102A/91). Therefore, trying to reduce discharges from agricultural activities is a priority. I naddition, because of the highly fragile nature of the soils in Moldova and with about 1.5 million hectares(80%) of arable land hilly,' soil erosion is relatively significant. Much of the eroded soil stays within thecountry, but some is carried into the Danube and eventually into the Black Sea: this soil contains N & P.So again, reducing this source of N & P through improved agricultural practices is important.

Groundwater pollution with nitrates and microbial organisms from excreta has a major social significancefrom the point of view of drinking water supply for rural settlements. Excessive nitrates in the water canlead to nitrate poisoning, especially in infants. Again, because most human excreta goes directly into theground without treatment, there is a danger that the drinking water will be polluted with harmful bacteriasuch as Streptococus fecalis and Fecalis coliforms. Also, low levels of sanitation and a lack of hygieneare increasing the transmission of enteric germs, leading to diseases including Acute Diarrhoeic Disease.

The proposed project is in accordance with the "Strategic Action Plan for the Protection andRehabilitation of the Black Sea" (BSSAP) formulated with the assistance of the Global EnvironmentalFacility (GEF). Thus, while the major environmental objective of the Agricultural Pollution ControlProject (APCP) is to demonstrate methods of reducing the amount of nutrients leached into groundwateror flowing directly into the river systems and then into the Black Sea, a secondary objective is to improvethe hygienic standards of rural communities. This will be undertaken through integrated land and wateruse management with the full co-operation of the beneficiaries. The project has been designed and willbe implemented in a participatory manner so as to have the maximum environmental (and financial)impact on the area. Hence, it is expected to be overwhelmingly environmentally beneficial with no majorand few minor adverse impacts, if any.

Moldova has signed a number of international conventions on environmental protection and biodiversityconservation 2 These include:* The Convention on the Conservation of European Wildlife and Natural Habitats (Bern, 1997).* The Convention on Biological Diversity (Rio de Janeiro, 1992).

Area in million ha. Total: 3.4; Agricultural land: 2.3; Arable: 1.9; Hilly arable: 1.5.2 Moldova has ratified 15 Environmental Conventions. These are detailed in Appendix 1 a.

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* The Convention on the Protection and Use of Trans-boundary Watercourses and International Lakes(Helsinki, 1992).

* The Convention on Environmental Impact Assessment in Trans-boundary Context (Espoo, 1991).* The Convention on Wetlands of International Importance especially as a Habitat of Aquatic Birds

(Ramsar, 1971).

The project will work towards honouring Moldova's international commitments to reduce nutrient loads.In this respect, it will work closely with a UNDP funded project that is assisting Moldova to harmonise itslegislative framework relevant to European Union (EU) directives, in particular the Nitrates Directive.

In terms of regional agreements, Moldova is a member of the International Commission for the Protectionof the Danube River (Danube Commission). It is also a party to:* The Protocol on Establishing the Trans-boundary Biosphere Reserve of the Danube Delta and

Scientific Reserve "Prutul de Jos", (27th July 2000 between Moldova and Romania).* The Statement on the Lower Danube Green Corridor signed by Bulgaria, Moldova, Romania, and

Ukraine (5th June 2000, Bucharest, Romania).* The Convention on Co-operation for the Protection and Sustainable Use of the Danube (Sofia, 1994).

This project has greatly benefited from two sister GEF funded projects namely the Agricultural PollutionControl Project in Romania and the Agricultural Development Project in Georgia.

The Agricultural Pollution Control Project. (APCP).

The APCP will provide a mix of investment and policy related activities to mainstream environmentalpractices into the agricultural sector. It will be implemented in close association with the US$ 40 millionIDA-funded Rural Investment and Services Project (RISP). It will harness the synergies between the twoprojects assisting both the farmers and the agro-industry beneficiaries of RISP to put in place or expandmitigation measures necessary to reduce nutrient discharge.

Through the proper storage and use of animal (and household) waste and by expanding environmentallyfriendly agricultural practices, combined with the conversion of an agricultural area back to its formerwetland status, the potential to reduce N and P flowing into ground and surface waters should besignificant. These initiatives include:* Correct storage and application of organic fertilisers.* Testing of soil, especially for N & P levels, but also C and pH.* Optimum application of mineral fertilisers (and lime if necessary).* Contour ploughing, terracing and minimum tillage.* Crop rotations and strip rotation to reduce pest and diseases and to provide green manure.* Introducing or expanding trees within the farming system (agro-forestry).* Using certified seeds to enhance productivity.* Buffer strips of perennials along watercourses.* Appropriate land use practices such as planting permanent crops in erosion prone areas.* Conversion of some land back to wetland.* Promote organic farming.* Assist agro-industries reduce their pollution, particularly wastewater.* Training, demonstration and replication.* Strengthening policy, enforcement and institutional capacity for nutrient pollution control.

All these activities should leaded to an increase in sustainable agricultural production, decreased erosionand improved quality of surface and ground water.

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This is a pilot project to test the effectiveness of the proposed intervention. A critical watershed area inLapusna Judet (County) in southeast Moldova has been chosen to demonstrate the various initiatives, forthis area displays all the symptoms of primitive manure management and poor land use practices. Also, ithas a population that is eager to participate in and learn from environmentally friendly and economicallyadvantageous farming practices. In summary, it was selected because:* Representative in terms soil, climate and other geo-ecological conditions.* Nutrient pollution of surface and underground water is an evident environmental problem.* Local authorities/communities are aware of the environmental problems and are ready to solve them

by all available means.* Project objectives are properly understood and supported by the local people.* Representative in terms of agro-industrial practices.* There is an accessible road network and good communications.

The Pilot Area and Existing Conditions.

Geographically, the pilot watershed area is part of the River Lapusna basin, which is one of the maintributaries of the River Prut3. The area encompasses eight communes 4 with sixteen villages in theLapusna Judet having a total area of just less than 50,000 hectares, with about 28,000 ha in agriculture.There is a range of areas and households between the communes. For example, Negrea commune has1,112 ha of agricultural land and 728 households (average area 1.53 ha per household) whereas Carpinenicommune has 9,121 ha of agricultural land with 4,682 households (average area 1.95 ha per household).The total 2000 population is given as 43,234 in 14,737 families (average size 2.93). The village sizeranges from under 200 (Rusca and Semionovca) to over 11,000 in Carpineni. Over the last decade thepopulation has increased slightly. Table 1 gives the current land use and ownership in the project area.

Table 1. Land Use and Land Ownership in the Project Area (hectares).

Landuse Total Private PublicHousehold Individual Collective Reserve Pasture andland fund forest

Arable land 21,363Vineyard 4,519Orchard 2,319Sub-total 28,201 2,384 8,063 17,431 323agriculturalPasture 5,698 5,698Forestl. 10,521 10,521Water and 829 829p o n d s_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Sub-total 45,249 2,384 8,063 17,431 1,152 16,219Other land 1,354(urban/roads)Total 46,603Note 1. The forest areas are used for browse and grazing. Generally, these are over-exploited.Source. Project Implementation Plan (PIP).

3River Prut is one of the main tributaries of the Danube. It has a significant importance in a trans-boundary contextsharing the frontiers between the Republic of Moldova and Romania.

4 Pascani, Lapusna, Sofia, Negrea, Carpineni, Mingir, Voinescu, Tochile-Raducani.

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Table 1 states that there are 8,063 ha as individual holdings and 2,384 ha of household land, the sameProject Implementation Plan states that there are 5,800 individual farms, two agricultural associations, 3joint-stock companies and 10 companies with limited liability. Previously, land belonged to the state andit was farmed collectively in large lots, rather than the current size, (with or without household land), ofbetween 1.8 and 1.4 ha per individual farm. Under state ownership, the emphasis was on feed and fodderproduction to supply the cattle, pig and poultry farms, rather than on wheat, maize and sunflower, nowgrown for subsistence. Inputs were provided such as feed, fertilisers, and machinery and much of theorganic fertilisers were returned to the land. Today, there is a lack of machinery especially for spreadingdung in the fields; thus most animal manure is discarded by road and riverside or in unauthorised dumps.Much of the N and P in this manure finds it way into surface and groundwater, rather than being taken upby plants. Chemical fertilisers are no longer subsidised and hence sparingly used. All this has adverselyaffected arable productivity. Also, the number of farm animal, now individually owned, have beenreduced because no longer is there sufficient food for them. But they are still in excess of the carryingcapacity, resulting in underfed animals and overuse of pastures and forests for feed, fodder and browse.

Table 2 gives the current livestock distribution by farm animal type and ownership as well as an estimateof manure production and its potential availability as an organic fertiliser.

Table 2. Livestock Numbers by Type and Ownership with an estimate of annual Dung Production,N & P content and its Availability.

Cattle Horses Pigs Sheep/Goats Poultry TotalPublic 24 32 396 1,233 0Private 5,223 1,238 8,873 13,297 115,000Total 5,247 1,270 9,269 14,430 115,000Manure/urine 47,000 11,400 14,800 10,200 2,300 [85,700]productiontonnes wet(available) (23,200) (5,600) (14,800) (4,200) (2,300) [50,100]N content and 183.3 40.0 84.5 93.6 51.1 452.5available (t) 90.4 19.7 84.5 38.5 51.1 284.2 (63%)P content and 56.4 9.1 22.2 16.3 9.2 113.2available (t) 27.8 4.5 22.2 6.7 9.2 68.2 (60%)Note. Cattle numbers and ownership have been taken from the PIP report. Manure production estimates and N & Pestimates have been taken from Table B-i1 of Nutrient Balance for Danube Countries (Moldova). ProjectEU/ARJ102A/91. These figures are different (and less) from the ones given in Working Paper 1 (page 41). Theavailability is assumed to be the days the animals spend in shelters each year, namely 365 days for pigs and poultry,180 days for cattle and horses and 150 days for sheep and goats (Working Paper 1). No account is taken of beddingstraw, estimated at 3,850 t (Working Paper 1). The mineral content of this straw is estimated to be 10 t N & 2.5 t P.Source. PIP (2002) Working Paper 1 (2002), Project EU/AR/102A/91 (Moldova Volume 1).

Table 2, indicates that an estimated 284 tonnes of N and 68 t P are potentially available to apply to cerealcrops and sunflower. This will cover about 7,300 ha of arable land each year or one-third of the area at anapplication rate of the equivalent of 10 t wet cattle dung (39 kg. N). But as stated in Working Paper 4,only 95 tonnes of manure were applied in 2000 (page 13). Thus, most of the manure was not used andmuch of this was disposed of in dumps that were liable to leakage into surface and ground water.

In addition, erosion is one of the major factors that affect the soils in the pilot area mainly because of hillylandscape as well as periodic heavy (summer) rainfalls. For example, in Sofia and Pascani communesmore than 60% of the agricultural land is moderately to highly degraded because of the erosion process.Delluvial soils are most predisposed to erosion; this is one of the main causes of the high rate of erosion.

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Besides natural factors, erosion is caused by human activities. Since land privatization, arable agriculturehas been practised without much concern for soil conservation. The conversion of hilly pastures,meadows and the occasional forest into annual cropland ignoring the relief also contributes to soildegradation. Practically, a 11 s lopes are intensively cultivated in s mall 1 and parcels. Usually they areploughed up and down, exacerbating soil erosion and washing away the top humus layer containing Nand P. Thus, much of the 21,263 ha under arable agriculture are suffering from excessive erosion.

The Annual rainfall in the project area is moderate at around 500 mm. However, the rainfall distributionincludes heavy downpours particularly in the summer leading to a serious flood risk. In 1994, a majorrainstorm in the Lapusna River caused a serious flood. Many houses were destroyed and several peoplelost their lives. The floods were greatly exacerbated by dam failure. There are also periodic landslides.

The Existing Environmental Assessment.

This is the current position in the project area and is typical of the rest of the country. Poor agriculturalpractices are exacerbating erosion and a lack of chemical fertilisers is depressing productivity. Organicfertilisers, which could replace up to a third of chemical fertilisers, are not being used because of a lack oftransport and spreading equipment or because of poor organisation to use existing equipment.Consequently, manure is being dumped along roads, rivers and streams etc. These concentrations oforganic fertilisers leach into surface water and increase the amount of N and P in the Danube Delta, thusintensifying eutrophication rates. Also, N and P from dung percolates into groundwater and then intowell water, causing potential health hazards. Existing animal numbers are greater than the carryingcapacity of the land, especially as feed and fodder from outside are no longer available or affordable. Thepastures and woodland resources are being over used to the detriment of the soil. In addition, because'commercial' fuel availability has decreased, wood and residues are being used as substitutes. This isfurther degrading forest areas and affecting the amount of residues being returned to the soil.

Apart from arable agriculture being adversely affected, the vineyards and orchards are suffering throughlack of inputs and depressed producer prices. Therefore, routine maintenance is being neglected to thedetriment of the quality and quantity of the crops. In consequence, existing agro-industries have seen adecline in the quantity and quality of crops being delivered to the factories. This is affecting theirprofitability. They are unable to afford proper disposal of effluents from (reduced) outputs. Again mucheffluent is being disposed of in inappropriate ways, although there are (environmental) laws that governsuch disposals. Some of this untreated or partially treated effluent finds its way into surface and groundwater, adding to the pollution problem.

Agricultural areas within the country are on a downward economic and environmental spiral. But with alittle outside help, coupled with the proper use of existing resources, improved arable, pasture and forestrypractices, better co-operation with agro-industries and the full and enthusiastic co-operation of localpeople, assisted by local and central government, there is no reason why this situation cannot and shouldnot be reversed. The principal thrust of this APC project is to demonstrate how this can be achieved.

Project Components.

The project will comprise four components.

(i) Promotion of Mitigation Measures to Reduce Nutrient Load in Surface and Ground Water. Thiscomponent will be implemented at two levels. First it will work in close association with the RuralInvestment Services Project's components for business development, rural support services and ruralfinance to ensure that agricultural services and agro-industries have access to needed advice, support

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and finance. Second, the project will work in a pilot watershed area comprising part of the Lapusnatributary of the Prut River, where an integrated watershed management plan will be implemented.

(ii) National Level Strengthening of Policy and Regulatory Capacity. S The project will supportstrengthening of the national legislative, regulatory and institutional capacity of the government ofMoldova in agricultural pollution control. It will co-operate with a UNDP project that is providingassistance to harmonise local and national legislation with EU's directives on environmentalpollution control, including the Nitrates Directive (91/676/EEC).

(iii) Public Awareness and Replication Strategy. A broad local and nation-wide public informationcampaign will be undertaken to disseminate information on the benefits of the proposed projectactivities with the aim of achieving replicability nation-wide. At the local level, the main audiencewill be the direct stakeholders of the project (local and county officials, farmers, community groups,school children and NGOs). The objective of the activity will be to familiarise the population andhelp induce the behavioural changes necessary for the project to succeed.

(iv) Project Management Unit. A Project Management Unit will be established under the umbrella ofConsolidated Agricultural Project Management Unit (CAPMU). The GEF component wouldprovide support for hiring relevant staff to implement APCP in close association with the RISP.

Environmental Benefits.

The proposed mitigation measures to be supported from GEF funds would reduce environmentalpollution and should result in the following positive effects.* Improve facilities for waste management.* Provide soil testing to determine the appropriate application rate of organic and inorganic fertilisers.* Promote the use of manure as fertiliser. This should at least maintain, if not increase the organic

content of the soil, thus reducing susceptibility to erosion.* Increase the organic matter of the soil. This should help encourage good soil tilth by improving soil

structure and, therefore, reduce energy requirements for cultivation.* Promote of conservation tillage, crop rotation, planting of buffer strips and other environment-

friendly practices. This would contribute significantly to reduce surface runoff of pollutants and topromote sustainable production and increased bio-diversity.

* Introduce or extend trees within the farming system, to assist arable and pastoral production.* Reactivate a wetland to act as a filter for excessive pollutants and to encourage wetland habitats.* Recycle inert waste materials (glass, metal, plastic mass, etc.). This should contribute to cleaning up

settlements, promote civic pride and reduce energy use.* Assist agro-industries in increasing environmental compliance.

All these project interventions should significantly increase public awareness and knowledge aboutenvironmental issues, while at the same time promoting economic development.

5 A summary of the Legislative and Institutional Framework in Moldova is given in Appendix lb.

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APCP: Environmental Management Plan (EMP).

This project is classified as Environmental Category B. Therefore, an Environmental Assessment has tobe undertaken and an EMP prepared and described, including consultations and disclosures. Significantissues are highlighted and their treatment documented as a result of this analysis. As stated previously,this project i s a ssociated with the IDA credit-financed Rural Investment and S ervices Project (RISP),which is classified as Environmental Category Fl (Financial Intermediary Assessment).6 The RISP willprovide technical assistance to farmers and business people through local NGOs (advisory and extensionagency service providers) and financial assistance to a broad range of entrepreneurs in rural areas. Ifindividuals or potential or actual business people ask for loan under RISP, then RISP will have toundertake an Environmental Review. This may be followed by an Environmental Impact Assessment(EIA) (Appendix 1c). The RISP project will build capacity in the Consolidated Agricultural Project'sManagement Unit (CAPMU) to undertake environmental reviews and ensure that the mitigation measuresare followed. This technical assistance will be co-financed by a grant from the GEF through the APCP,thus minimising or avoiding negative environmental impacts. Therefore the APCP will assist RISP inproviding advice and assistance on environmental mitigation measures and monitoring activities.

Project Activities and their Environmental Implications.

All the project activities that may have direct environmental implications concern Component 1Promotion of Mitigation Measures to Reduce Nutrient Load in Surface and Ground Water. Component 2National Level Strengthening of Policy and Regulatory Capacity and Component 3 Public Awareness andReplication Strategy will be used to facilitate and expand Component 1 activities. Therefore, only theactivities under Component 1 will be dealt with in detail in relation to the EMP, but Component 2 onstrengthening i nstitutional c apacity a nd e nvironmental 1 egislation w ill a lso b e d iscussed. M ost o f theinitiatives are overwhelmingly environmentally positive, but if some of the different interventions are notundertaken in accordance with standard procedures, then there could be negative environmentalconsequences. These concerns will be highlighted. . Some of the RISP financed projects may haveadverse environmental impacts and therefore, the APCP project could provide an incremental grant tomitigate such negative impacts. The Project Implementation Plan (PIP) describes in detail the activitiesunder RISP (pages 18 to 23) and those under APCP (pages 24 to 32). Therefore, they will not be repeatedhere. Only the sections that have direct environmental implication will be discussed.

Component 1. Promotion of Mitigation Measures to Reduce Nutrient Load in Water Bodies.

RISP Initiatives.Apart from complex and potentially dangerous projects, the Law on Environmental Protection does notaddress the need for ELAs on most projects. The activities to be financed under the RISP will be small,demand-driven investments for farm and non-farm income generating activities. Given the small size ofthe activities financed under the project, the environmental impacts of individual subprojects are expectedto be small. However, for specific activities, their potential environmental impacts, and local cumulativeimpacts can only be known during project implementation. For this reason, the project will put in placean environmental review and screening mechanism that will:* carry out an environmental review and assessment as needed in accordance with Moldovan Law and

World Bank requirements;* prevent financing of projects with significant environmental impacts; and* identify mitigation measures for project with less than significant environmental impacts, to be

implemented as part of the subproject activities.

6An extract from the RISP World Bank PAD (Project Appraisal Document) is given in Appendix Ic.

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If a project dealing with agricultural and/or agro-industry in RISP Credit Application is approved andmitigation measures are proposed, then the APCP may provide grants to undertake some or all of thesemeasures. A key component is the availability and adaptability of measures at the project site. Throughdemonstration and training, the APCP will provide CAPMU and local LTEA and SEI staff with the skillsto propose various mitigation initiatives and together with the APCP and other concerned agenciesmonitor the instillation and execution of such measures. A full description of the 'Programme Guidelinesfor the Environmental Mitigation Grant' is given in Annex 4 to the PIP. The purpose of the grant is toprovide the incremental cost of mitigation measures to businesses that would otherwise be reluctant toinstall processes and techniques that could adversely affect their profits, but could reduce surface andgroundwater pollution, principally N, P and faecal material and decrease erosion. Up to US$ 2 million isavailable for such purposes to reduce negative regional, national and global environmental impacts.Together with the SEI and the local Territorial Ecological Agency, APCP staff could assist RISP andCAPMU to monitor both the installation of mitigation measures and their proper functioning.

Manure management.As part of Component 1, the project will finance and provide incentives for the installation of up to 8improved communal manure storage facilities and equipment for manure collection and application in theeight communes. All the eight sites were screened and approved by the all the legally required agenciesincluding the State Ecological Inspectorate (SEI) and therefore no further environmental assessment(EIA) should be needed provided the concerns stated below are addressed. The platform sites meetecological safety requirements such as safe distances from watercourses, shelter from the prevalent wind,suitable ground conditions and accessible. The local mayors have signed documents on the availability ofthese sites and these are lodged in the APCP office in Chisinau. In addition, 150 household storage unitswill be built in the first year to approved standards. It is envisaged that these individual units willincrease to 1,200 by year five (5). Villages and households wishing to participate in the investmentprogramme will be selected against agreed criteria and cost-sharing arrangements. Community trainingand awareness on best practices for waste collection and manure management including composting,testing, and field application will be provided. (Details are given in Working Paper 5). Some accessroads to these and existing storage facilities may be improved or built. The environmental concerns underthis sub-component may include:* leakages from the manure storage facilities (if construction is not made according to specifications);* mixing of inert waste with organic waste;* improper cleaning of the individual manure storage tanks and large manure platforms;* inappropriate manure spreading in the fields;* poor siting and use of existing storage facilities;* poor design of access roads leading to increased erosion; and* methane venting.

An environmental screening has been done and mitigating measures are proposed to address these issues:these are given in below and in Appendix 2. Also, an environmental management plan has beendeveloped to ensure that activities undertaken in this sub-component will be closely monitored withregular inspections by the Lapusna Territorial Ecological Agency (LTEA) overseen by the StateEcological Inspectorate (SEI) and the Lapusna Department for Public Health (LDPH).

Companies will bid to build the communal storage platforms according to government standards. CountyCouncil engineering staff would collaborate in the design of village-level manure stores; these will haveseparate bins for different types of inert material. The engineers will work closely with the LTEA/SEIand the LDPH to ensure that the construction adheres to environmental guidelines on preventing nutrientleakage to surface and groundwater. Four piezometers (two upstream and two downstream) will beinstalled around each of the eight manure storage platforms to monitor the quality of surface andgroundwater and to test if any nutrient seepage occurs. Community training and awareness will be

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provided on good practices for waste collection and its separation, proper cleaning of tanks and platforms,manure management including composting and testing, and its field application.

There are 29 existing platforms/dumps in the pilot watershed area where up to 45 thousand tonnes ofwaste are stored, but just 10 of them are still in use. These latter usually belong to former and existingagro-processing factories. The remaining platforms are sited outside villages. They are surrounded byearth banks 1.5-3 m high, in which any kind of waste is dumped including animal waste, inert material,food and processed residue, etc. Most do not adhere to any environmental protection requirements andusually have been placed close to the watercourses or forests. Because of inadequate access roads,especially in winter and the wet spring period, often, people have dumped waste around them and not inthem, thus expending the storage area. These sites are hazardous pollution sources.

Through technical assistance, the APCP would help local authorities prepare remedial programmesincluding designing proper access roads, waste segregation, recycling and stabilisation, includingcomposting, t o a void further leakage. The p roject w ould also s upport the r eclamation o f t he e xistingplatforms, primarily by including the land in shrub and tree planting programmes.

If the proposed new or improved access roads to existing and new platforms are not properly constructedand maintained then this could lead to increased erosion and poor accessibility at certain periods of theyear. This is unlikely as the access roads will be of short length (200 - 500 m) and be on flat or slightlyinclined land. Never the less it is important that they have proper drainage so that they are useable allyear round. It will also be good if the project would plant trees along the roadsides. The County Councilengineering staff would collaborate in the design of such roads according to government standards andwith the help of LTEA/SEI supervise the construction. The local authorities may be able to obtainincome through selling of compost etc. This could pay for road maintenance.

Pigs and poultry will be housed all year round, unlike cattle, horses, sheep and goats that will be put topasture for about half the year. Therefore, the animal waste from pigs and poultry will be collected andstored year round. Some of this storage will be under anaerobic conditions and in summer, when theambient temperature is above 30 degrees Celsius conditions are favourable for methane generation with'mesophillic' bacteria. This is a potent greenhouse gas, having a 'forcing factor' twenty times that ofcarbon dioxide. The LTEA should monitor these platforms for methane production. Methane is also aversatile energy source. Therefore, the APCP will examine the feasibility of collecting and using themethane. The slurry produced as a result of methane extraction in a 'biogas' digester has a higher N & Pvalue than unprocessed manure. Also, many pathogens are eliminated in the process. It may be possibleto obtain co-financing from other donors to have a pilot biogas project and to test cheap digesters madefrom plastic. These are being used on a commercial scale in Viet Nam. On the other hand, the digestersbeing tried in Georgia use 'thermophillic' bacteria at temperatures in excess of 600 C and work all yearround. The use of this design is another possibility.

Environmentally-friendly land use practices.A second thrust of Component 1 is the promotion of Environmentally-friendly Land-use Practices,especially Agricultural Practices. This sub-component will promote the adoption of environmental-friendly land-use practices that would improve agricultural production while reducing nutrient dischargeinto surface and ground water. Technical assistance and financial support will be provided for sustainableagricultural practices, including:(i) nutrient m anagement - t he a pplication o f a nimal w aste m aterials o n a gricultural land a reas at

rates determined by the nutrient needs of crops and nutrient content of the waste;(ii) conservation tillage - crop production in which the crop residues from the previous crop remain

on the soil surface to provide erosion protection;

(iii) integrated cropping management - the use of crop rotations and strip cropping to prevent erosionand provide adequate supplies of animal feed and forages in integrated farming systems;

(iv) introducing or expanding trees within the farming system - these trees will assist productivity byfixing nitrogen, mulching the leaves into the soil and/or providing fodder;

(v) vegetated buffer areas - permanent vegetated strips would be established at field and streamriparian boundaries and in water courses that will reduce and help prevent soil loss and itsassociated nutrient loss loads;

(vi) promotion of organic farming - as soon as organic farming certification procedures are defined atnational level, small organic farming areas would be established in villages throughout theLapusna Judet to demonstrate and help educate farmers on appropriate procedures for theproduction of organic fruits and vegetables (see Working Paper 4).

The environmental concerns under this sub-component may include:* inappropriate application of manure and chemical fertilisers if not carried out according to

recommended rates for specific crops and/or their application at the wrong time;* through poor training and/or understanding, the recommended environmentally-friendly agricultural

practices not fully applied.

With regard to organic farming there is an agency within the Ministry of Agriculture and Food Industrydealing with organic farming as well as an independent body dealing with certification. In 2000, aNational Concept Paper on organic farming was adopted by the GOM, based on EU (IFOAM) standards.The standards have been elaborated and a guide has been printed and is available to farmers. A draft lawon organic products should be ready by June 2003. The soil institute has also produced a map of soilssuitable for organic farming: at present, there are about 40 farms growing 'organic crops.'

Also there is a department within the MOA dealing with plant protection and there are sufficientspecialists to advise farmers on such matters. Before 1990 there were 14 biological laboratories, now 4remain and before 1990 biological control was applied to 0.3 million ha. Now this has been reducedconsiderably, but the expertise remains.

An environmental screening has been done and mitigating measures are proposed to address these issues:these are given in below and in Appendix 2. Also, an environmental management plan has beendeveloped to ensure that activities undertaken in this sub-component will be closely monitored withregular inspections by MAFI, the LDPH, the LTEA/SEI and other agencies.

In order to judge the correct application rate both for organic and inorganic fertilisers, soil testing will bea standard practice of APCP. Farmers will then be advised on the correct application rate for fertilisers.Initially, the project will provide equipment to transport and spread organic fertiliser on the fields. Therewill be training in fertiliser application and demonstration plots will be established in the project area,with different application rates, to impress on farmers the correct and timely use of fertilisers. The soilresearch institute will be involved in demonstrating various environmentally-friendly agriculturalpractices. The soil and ground water will be tested on these plots for nutrient levels throughout thefarming season. Project staff, the soil institute, LDPH and the LTEA/SEI will monitor and evaluate thissub-component. The soil research institute will be involved in demonstrating various environmentally-friendly agricultural practices. Even before the project officially starts, the institute has collaborated withlocal farmers at two sites to lay out plots demonstrating strip cropping (planting along the contours), withcontrols. Erosion rates will be measured with and without strip cropping as well as yields.

In order to minimise the poor application of environmentally-friendly farming practices, demonstrationplots will be established on various initiatives and training/retraining will be given to farmers' etc. on:

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* Waste management practices that may be applied in farming and at the household level for theminimisation of well water pollution.

* The beneficial utilisation of nutrients in waste materials for increased crop productivity.* The appropriate use of crop rotations for increasing crop yield and preventing nutrient losses.* The appropriate use of conservation management practices to prevent soil erosion and nutrient losses.* Best management practices for storage and recycling of nutrients.* Importance of waste application timing to insure safe utilisation.* Preparation of nutrient management plans for land application of waste materials.

Again, the soil and ground water will be tested on the plots, with and without interventions, for erosionrates and nutrient levels throughout the farming season. Project staff, consultants and LDPH, theLTEA/SEI will monitor and evaluate these interventions. Water testing will be in accordance with theWater Quality Criteria of Moldova (MECTD, Chisinau 1998).

The project will not finance the purchase of pesticides although farmers might continue to use somepesticides for their regular farming activities during the life of the project, especially in vineyards andorchards. All farmers that use or will use pesticides on their lands will be trained in the storage, handlingand use of these chemicals as well as with respect to the careful disposal of the containers. The use ofappropriate clothing will be encouraged through demonstration. Farmers may also use chemicals for thecontrol of ticks and other parasites. These farmers will be included in the training in risk preventing; andin the handling, storage and use of pesticides. The monitoring of herbicide and pesticide use will beundertaken by LDPH and the LTEA/SEI. Testing will be in accordance with Bulletin No. 9 on Pesticides(MECTD, Chisinau 1998) to ensure that only approved chemicals -class III chemicals- are being used.

Improvedforest management and increased tree and shrub planting.Another initiative of this component is the improvement of the existing forest and woodland resourcesand the promotion of shrub and tree planting. This sub-component will support the rehabilitation ofexisting forest areas and the development of a shrub & tree-planting programme that includes:(i) planting a mixture of tree, shrub and grass belts for the protection of water bodies;(ii) providing anti-erosion forest belts;(iii) promoting the ecological reconstruction of forests;(iv) demonstrating and encouraging agro-forestry practices (as described above); and(v) promoting school nurseries and tree/shrub planting in schoolyards.

The APCP assistance would consist of providing planting material, machinery and technical assistance forplanting 132 ha as shelter or protective belts. The programme will be augmented and implemented by theState Forestry Service 'Moldsilva' with significant contributions from local communities (See WorkingPaper 6). The environmental concerns under this sub-component may include Moldsilva not havingenough funds to restore forest areas and the lack of suitable species for agro-forestry interventions. Alsothrough poor training and/or understanding the recommended environmentally-friendly agro-forestrypractices may not be fully applied. An environmental screening has been done, but these initiatives havelittle if any negative impacts. Indeed they should be of considerable environmental benefit. The treeplanting emphasis will focus on planting indigenous or well-understood exotic species such as Robiniapseudoacacia. This sub-component should lead to increased carbon sequestration in the woody biomassand the soil beneath the trees. It is also hoped that it will lead to increased planting by the peoplethemselves. Supervision will be under the control of Moldsilva assisted the LTEA and the SEI.

Wetland restoration.

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An important part of Component 1 is wetland restoration and the promotion of sustainable wetlandmanagement practices. Before construction of dams and levees, the floodplain was a natural system ofaccumulation and evacuation for the River Prut. This hydrological regime together with diverse land andmarsh vegetation was an ideal habitat for animals, mainly aquatic birds and freshwater species. Afterdraining, the Prut marshes lost about 70% of the flora and fauna species and agricultural productivity hasdecline over the years due to mismanagement. The local people have agreed to the restoration of theLapusna Wetland of about 130 ha at the intersection of the Lapusna and Prut Rivers in the Danube Delta(see Working Paper 7 and the Sociological Survey in the Wetland Pilot Area). This sub-component hasthe full backing and approval of the MECTD and it would strengthen the State Forestry Service andseveral national laboratories and enable them t o c arry out the restoration by implementing hydrologicenhancement practices, re-vegetation of wetland zones and performing associated monitoring tasks. Theconsensus of the professional experts is that this sub-component will help enhance the nutrient filtrationcapacity because of this wetland and considerably enhance the biodiversity. The environmental concernsunder this sub-component may include the introduction of aggressive (exotic) species, which mayeventually dominate the wetland and the people over-exploiting the resources of the newly createdwetland b ecause o f p oor training and wanting t o reap short-term b enefits at the expense o f l ong-termgains. An environmental screening has been done. Moldsilva and co-operating laboratories are fullyaware of the dangers of introducing exotic and/or aggressive flora and fauna and all precautions will beundertaken to prevent this. Thus, mitigating measures are proposed to address these issues: these aregiven in Appendix 2. Also, an environmental management plan has been developed to ensure thatactivities undertaken under this sub-component will be closely monitored with regular inspections byLDPH, LTEA/SEI and Moldsilva etc. (Annex 7 of the PIP). This will detail its environmental andeconomic impacts and when and where necessary propose mitigation measures to negate adverse effectsor enhancing initiatives to accentuate the benefits.

Agro-industrial pollution.Many existing agro-industries have poor effluent control and monitoring systems. Because of non-functioning public waste treatment plants and/or dilapidated treatment systems in the factories mucheffluent from these industries is discharged directly into the rivers and streams or is left to percolate intothe ground. Together with the RISP and the local Environmental Inspectorate, the project will try to helpagro-industries comply with environmental laws regarding the disposal of effluents etc. This will be donethrough inspection, advice and grants/loans to comply with existing laws. The project itself will onlyoffer technical assistance, but through its influence it may be able to persuade government agencies torepair treatment plants and lever funds so that factories can repair or install proper effluent controlsystems. The environmental concern is that despite this initiative, individual agro-industries may beunwilling or unable to undertake the necessary actions to comply with the law and continue to pollute thesurface and groundwater in the area. An environmental assessment has been done and mitigatingmeasures are proposed to address these issues: these are given in Appendix 2. Wile it is not in the remitof the project t o enforce the e xisting laws related to discharge from these factories, an environmentalmanagement plan has been developed recommending that activities undertaken under this sub-componentshould be closely monitored with regular inspections by local Environmental Inspectorate, the LDPH, theLTEA and the SEI.

Monitoring and Evaluation.Under this component a monitoring and evaluation sub-component is incorporated to monitor the soil andwater quality and the environmental impacts of the project. This sub-component will strengthen thecapacity of the Lapusna Territorial Ecological Agency (LTEA), the State Environmental Inspectorate(SEI) and the Lapusna Department for Public Health (LDPH). Under the auspices of the project, theywill carry out a comprehensive soil and water quality monitoring programme, with the help of otherbodies such as the soil institute, Moldsilva and the MOA. This will be done in order to determine theimpact of the various project activities such as manure and nutrient management, the implementation of

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environment-friendly agricultural practices and the development of riparian buffers around the LapusnaRiver. Nationally and internationally approved monitoring procedures will be employed that will includethe use of paired watershed, and upstream-downstream hydrologic and soil and water quality monitoringdesigns. For example, soil monitoring will be conducted in accordance with the "Eco-soil MonitoringGuide," [Soil Institute (Chisinau 1994)]. A modelling component will extend lessons learnt from theLapusna basin to other watersheds in the Republic of Moldova (See Working Paper 8). A summary of theM&E programme is given in the Environmental Management Plan (EMP) section.

Component 2. National Level Strengthening of Policy and Regulatory Capacity.

As mentioned previously, the MEPTD is responsible for administering the Law on EnvironmentalProtection. But, apart from complex and potentially dangerous projects, this law does not address theneed for ELAs on most projects. A comprehensive Environmental Review (Environment Sector Review,dated March 2001, in project files) was conducted by a World Bank Environmental Expert and 1 ocalconsultants to:* assess the adequacy of the legislative framework for environmental assessment;* identify institutions that would be responsible for the EIA;* determine technical assistance and training needs for these institutions to adequately implement the

environmental assessment (EJA) requirements; and* propose procedures for environmental screening, EIA preparation and implementation, possible

mitigation measures for certain sub-projects, and monitoring and evaluation of implementation ofEIA requirements.

A programme has been prepared by the above experts for strengthening the policy and regulatorycapacity. This will c arry out an environmental review and assessment as needed in accordance withMoldovan Law and World Bank requirements and provide the various levels of environmentalmanagement training for the various levels of MEPTD staff, especially SEI and LTEA personnel as wellas targeted APCP, RISP and CAPMU people in order to undertake assessments on the EIA Guidelinescompatible with the law and World Bank requirements.

The Scope and Adequacy of the EMP.

Main Features.The main feature of the EMP is to implement a comprehensive soil and water monitoring programme inthe project area in order to evaluate the effects of different project activities on nutrient reduction tosurface runoff and groundwater sources. Standardised soil and water quality monitoring tests have beendeveloped by Moldova's scientific and government agencies. These tests will provide decision-makersand public officials reliable data on problems and trends of N, P and faecal quantities in:* surface water, particularly the tributaries of the Danube River; and* ground water, especially in relation to the quality of drinking water.

In addition information will be provided on the amount and type of soil particles being eroded from theproject land and their mineral and humus content. Some of these efforts are hampered by the lack ofadequate field, laboratory and monitoring equipment and chemicals for the operation and maintenance ofsoil and water quality monitoring laboratories of the Soil Institute, the MECTD (water quality laboratoryand hydrological department of the Hydro-meteorology Service, central and regional laboratories of StateEnvironmental Inspectorate) and the Institute of Forest Research and Forestry Planning and the'Hydrometeo' service. The project will provide additional laboratory equipment, chemicals and supplies,

and training to build capacity of the SEI. The project would fund a comprehensive soil and water qualitymonitoring plan for collecting data from fields, wells, piezometers, streams, rivers and the proposedwetland that drain nutrient loads into the Danube River and the Black Sea. These data will be analysed

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and made available to all stakeholders in a usable form. The project will develop and evaluate awatershed scale computer simulation model to predict and quantify the effects of agricultural activities inthe watershed on the reduction of nutrients moving to the Danube River. The monitoring plan will beimplemented by the PMU with technical assistance and equipment provided by the SEI, the Soil Institute,the Institute of Forest Research and Forestry Planning and the 'Hydrometeo' service.

Environmental Assessment (EA).An environmental assessment of the various project activities has been made and mitigation measuresproposed to address various possible environmental impacts are addressed in the EMP shown inAppendix 2. This project should have overwhelming positive effects on the environment. The EMPaddresses various environmental issues (like surface and groundwater quality, erosion, soil quality, andbio-diversity), potential environmental impacts, and proposed actions to be taken during theimplementation phase of the EMP. Where there are potential negative impacts such as nutrient leakagesfrom platforms and erosion from poorly constructed access roads and existing farming practices, remedialmeasures are specified. The EMP has been designed to monitor the soil and water quality and erosion ofproject activities so that immediate mitigation measures can be taken if the potential for an environmentaldamage occurs. Most of the actions of the EMP will be implemented in the first year of the project.Environmental evaluation indicators have been reflected in the EMP, which meet the objectives and goalsof this project.

Stakeholder Consultation.Various stakeholders of the project have been consulted frequently. These include small farmers,members of farming organisations, agro-processing factory managers, NGOs such as ACSA, and REC,the Prefect of Lapusna and her staff, Mayors and Vice Mayors of the 8 communes, officials of MECTD,MAFI, Moldsilva, Agency of Geology (AgeoM) the Meteorological Department, and internationalagencies like the EU and UNDP. These stakeholders were visited individually or in groups and 'villagemeetings' were held. The purpose of the project was explained and the individual functions elaborated,especially in relation to the ongoing soil and water quality problems in the region and its effect on theriver system and the Danube Delta. The record of these visits are on the project files and in the variousWorld Bank documents, especially the Aide-memoires of the Bank's Task Manager/EnvironmentalExpert. Both conducted missions where they met people from many concerned agencies includingministries, departments, scientific institutes and NGOs as well as officials and farmers in Lapusna Judet.

During the brief visit to Moldova in April 2003, the Environmental Consultant met many people involvedin the project and held discussions with them. These included the project staff and people from MECTDincluding SEI, MAFI, Moldsilva (SFS), RISP, the Soil Institute, several local consultants who wrote theworking papers and NGOs such as the Agency for Consultancy and Schooling in Agriculture and theAlliance for Co-operation in Agriculture. Two visits were made to Lapusna Judet and meetings were heldwith the Prefect of Lapusna and her staff, a mayor and a vice-mayor of two villages, the local territorialecological agency, a wine factory manager and farmers. Visits were made to waste dumps, proposedcommunal platforms, a sewerage treatment plant, farms where demonstrations are to be established andseveral villages. The itinerary of this trip to Moldova is given in Appendix two (2) in the final section.

All the stakeholders agreed that interventions proposed in this project would be very good for the region.All the communes have signed up for communal platforms and many farmers agreed to have individualplatforms. S ome o f t he s takeholders h ave o ffered t heir fields for d emonstrations a nd m onitoring a ndMayors in selected villages have agreed that specific wells should be sampled for water quality. The draftEMP has been discussed with MECTD, MAFI, and Moldsilva, the Prefect of Lapusna and her staff andMayors/vice Mayors of the communes. It is proposed that this draft EMP be widely circulated to allinterested parties for comments and inputs before finalisation in line with the Government Regulation on

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Public Participation in Environmental Decision Making (January 2000). The EMP has been translatedinto Romanian in early May 2003. The translation has been delivered to:The Ministry of Ecology Construction and Territorial Development.The Ministry of Agriculture and Food Industry.The State Forest Service "Moldsilva."The Prefecture of Lapusna Judet.The Executive Council of Lapusna Judet.Lapusna Ecological Agency.The Soil Institute.The State Hydrometeo Service.The Ecological Movement in Moldova, an NGO.

The Prefect of Lapusna and the Council will share the document at village level group meetings to createawareness and seek further input to conform to the above regulation. This will be an on-going process.

Monitoring and Evaluation Plan.A comprehensive soil and water monitoring programme has been developed for implementation. Projectactivities will be intensively monitored to determine the impact of the relevant activities on soil and waterquality. A summary of the proposed monitoring and evaluation programme is given below. Moredetailed descriptions are given in the PIP and in various project annexes and working papers. Theenvironmental monitoring and evaluation would be handled by the PMU in close co-operation with theMECTD, the Soil Institute and other agencies specified below.

Water monitoring. The project will strengthen the capacity of the MECTD (water quality laboratory andhydrological department of the Hydro-meteorology Service, central and regional laboratories of StateEnvironmental Inspectorate) as well as the Soil Institute to carry out water and soil quality testing andmonitor environmental requirements. The project will support the incremental costs of:* selecting and maintaining a set of water and soil quality monitoring sites in the project area;* upgrading the equipment for monitoring of water and soil quality; and* additional operating expenses for monitoring activities.

Two paired watersheds, - the Balceana and Old Negrea, - have been selected for watershed monitoring.The Balceana tributary will serve as the control sub-basin, which is associated with the control segment ofthe Lapusna catchment (Sofia commune). The Old Negrea tributary will be used as a treated sub-basin.This sub-basin encompassing the new Negrea is designated as the one to be treated by concentrated BestManagement Practices (BMP). This is detailed in Annex 6.

An intensive soil and water-quality testing programme will be established in the eight communes tomonitor the changes in surface and groundwater. Included in this is a second upstream-downstreamdesign in the Lapusna River, described in Annex 7.

Stream water quantity and quality. To quantify this, the water flow will be measured at four measuringstations (2 to 5). These data will enable the computation of pollutant mass loadings and give arelationship between the implemented best management practices and the hydrologic response of eachsub-watershed. At the first monitoring station (1), inflow will be measured periodically, especially at thetime of sample collection. Monitoring of surface water quality will focus on the determination ofnitrogen and phosphorus constituents. In addition, parameters such as BOD5, TSS, faecal coliformbacteria and the total number of microbes will be monitored. Both chemical and bacteriological variableswill be used to document the water quality status as it relates to nutrient flows under different practices.

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Groundwater monitoring. Groundwater monitoring will be undertaken using measuring devices(piezometer) at various sites. A total of 18 piezometers will be installed on three transects, located nearthe measuring stations 1 to 3, to determine the trends in the subsurface water quality as it moves from thecommunal, residential and agricultural land towards the Lapsuna River. This is detailed in WorkingPaper 3. Samples collected from these piezometers will be used to determine the trend of pollutanttransport via subsurface flow on the quality of base-flow entering the Lapusna River. In addition, thepiezometer data will determine the beneficial impacts of improved riparian zones and the exclusion ofanimals from river zones, on reducing the river pollutant levels.

Drinking water. Twelve piezometers will be used to assess the impacts of nutrient and bacteriologicalpollution sources on the existing wells situated within residential areas. The goal of this monitoringscheme is to identify the pathways and sources of pollution to the shallow drinking water wells. At eachwell, two piezometers will be installed in the direction of the groundwater flow near existing shallowwells (one near the pollution source and another near the well). A well, selected in the lower part ofvillage, will also serve as an additional sampling point (Working Paper 8). This monitoring scheme willprovide localised examination of well contamination. In all, 6 existing wells will be monitored to assessthe seriousness and sources of contamination to drinking water for households and villages.

Pollution from platforms. Four piezometers (two upstream and two downstream) will be installed aroundeach of the eight manure storage platforms to monitor the quality of surface and groundwater and to test ifany nutrient seepage occurs.

Soil monitoring. Soil monitoring will be undertaken on seven practices as follows: nutrient management;conservation tillage; crop rotation; strip cropping; soil conservation management practices; buffer strips invineyards; and grassed waterways. Environmentally agricultural practices will be monitored on: soilconservation tillage; conventional tillage with autumn mouldboard ploughing; vineyard conservation andconventional tillage; crop-rotation-legume modified rotation; and strip cropping on slopes.

Soil nutrient loss and soil erosion monitoring will be undertaken in five fields in Negrea commune andthe quality of soil sediments, humus total and mobile N and P will be determined in the sediments. Thequality of manure will be determined from samples taken from three platforms. Finally plant growthquality and quantity will be analysed from the demonstration plots. As mentioned above the monitoringwill be in accordance with the Eco-soil Monitoring Guide, [Soil Institute (Chisinau 1994)].

Tree planting and management monitoring. Monitoring will consist of recording the area that has beenplanted with trees and shrubs and their survival rate and the area of forest that has been improved throughunder/inter planting, encouraging regeneration and better management. It will be difficult to measuredirectly the improved-micro-climate effect and the decreased river bank erosion effect, but this may comefrom anecdotal information. Regarding the silvo-pastoral interventions, the improved carrying capacityof pastureland can be measured against unimproved pastures. The benefits of the proposed 5 ha park mayonly become fully apparent after ten to fifteen years. Not included in the project at present are schoolnurseries or the provision of seeds, cutting and seedlings for private planting: the project should includethese aspects in the plans. No provision has been made for the monitoring of the C sequestration aspectsas a result of the project. If sequestration is to be considered, then a baseline survey of the areas to beplanted with trees and shrubs should be undertaken. This consists of estimating the carbon in above andbelow grown biomass and the quantity of organic carbon in soil. After the project has been initiated,estimates are made of organic carbon in soils and biomass and specific time intervals. If the productsfrom the wood are going to be used in place of fossil fuels or as substitutes for steel and concrete inconstruction, joinery a nd furniture, then t hey w ill b e r eplacing n on-renewable energy a nd c an a lso b ecounted as a carbon off-set. Similarly, the agricultural soils treated with manure should have an elevatedlevel of organic carbon. This is why testing for organic C in soils should be included alongside N & P.

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Wetland monitoring. Trees are going to be planted in and around the floodplain area. The monitoring oftrees will be the same as indicated above. In addition a 'physical parameter analysis will be undertakenby the Institute of Forest Research and Forestry Planning and the 'Hydrometeo' service will undertakewater quality analysis and sediment quality analysis. Not mentioned in this monitoring programme, butinferred, is nutrient uptake and increased biodiversity. This should be undertaken by sampling thequantity and quantity of flora and fauna at periodic intervals. It is possible that this wetland may becomea resting ground for birds or even a breeding ground. This is a good opportunity to involve the localpopulation in monitoring. S chool children and farmers near the wetland c an identify various animalsespecially birds: these should have seasonal variations. Children could also be involved in fauna surveys.

Climate data. Daily precipitation data will be collected using three rain gauges installed near themonitoring stations. Other detailed climate data will be obtained from the existing nationalmeteorological network, especially the two stations at Leova and Cornesti near the pilot area. In addition,there are two meteorological posts providing precipitation and air temperature information at Nisporenitown, I ocated 30 km to the north and at Hincesti town, 18 km to the e ast of the pilot region. Solarradiation data are only measured at Chisinau. All these stations should provide enough backgroundregional information on air temperature, precipitation, winds, and other relevant climatic data and moreprecise precipitation data will come from the above-mentioned of 3 gauges (Working Paper 8, Figure 2).

Monitoring duration. The monitoring component must be undertaken at least over the five-year projectimplementation period. This will guarantee some statistical reliability of collected data. It is crucial tostart the m onitoring p rogramme b oth a t the c ontrol and t he t reated areas o ne year b efore the p lannednutrient reduction measures are implemented in the proposed treated areas. This will provide background(baseline) data both on sub-watersheds and segments of the river basin. Pre-implementation samplingwill help in the interpretation of the final data at the end of the project. However, five years is a shortperiod and the readings after five years may not be very significant. Therefore, it may be necessary tocontinue monitoring beyond the lifetime of the project, especially as it may take a number of years beforemeaningful results are available.

Sampling Frequency: Frequency of the sampling pattern is crucial in ensuring the soundness of data withrespect to the climatic patterns as well as changes in the land use practices. The water flow rate (flowvolume) will be measured continuously at surface water quality monitoring stations. At the water qualitysampling station, the water flow data will be assessed by means of measurement of the discharge volumeat the outlet of the Lapusna water reservoir dam during collection of water samples (18 measurements peryear + storm events).

Groundwater table will be measured at the time when groundwater samples will be collected (12measurements per year + storm events). Rainfall data will be determined using five manual rain gauges(one at each stream flow monitoring station). Snow depth and other meteorological data will be purchasedon annual basis from the state meteorological authority (Hydro-meteorology Service).

Soil erosion data will be collected after every rainstorm of more than 15 to 20 mm intensity. Sedimentsamples and runoff will be measured. For nutrient and humus contents, soil samples will be collectedthree times per year in early spring, summer and autumn from two field-sized watersheds namely acontrol field (conventional tillage) and a field with environmentally friendly agricultural practices.

To determine the quality of manure, 18 samples (with two analyses per sample) from 3 platforms will beundertaken each year for five years.

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Plant density, yield and plant tissue will be measured at each harvest. This will be done on controlledfields and field with improved practices. It is also anticipated that because of increased crop and pastureyields, the average weight of the cattle, pigs and sheep etc. (or numbers) should increase towards the endof the project. This should lead to more manure production and hence, more areas on which it can beapplied. T herefore, the project should also monitor animal numbers and animal weight. The annualhousehold surveys should record some of this information.

The sampling of tree planting and management areas will take place annually to record the area planted,the survival rate, changes (improvements) in degraded areas and changes in biodiversity.

The wetland monitoring will be undertaken annually regarding plant establishment and growth. Waterquality at the inlet and outlet of the wetland should be measured at least six times per year.

While it is not the specific task of the project, water quality monitoring should be encouraged by the localenvironmental inspectorate at the outlets of the factory discharge points especially if they flow intostreams and rives. The APCP could provide technical assistance to the LTEA.

Thus throughout the monitoring programme, environmental evaluation indicators have been reflected inthe EMP, which meet the objectives and goals of this project.

International Waterways.The World Bank's OP/BP 7.50 does not apply to this project, as the project will not involve the use ofwater or potential water pollution on international waters (Para 2 of the O.P. 7.50). On the contrary theproject is designed to decrease existing levels of pollution in the Danube River and the Black Sea: Theproject will be funded under the GEF Strategic Partnership for the Danube and Black Sea Basin that aimsat reducing the pollution level in these international water bodies. The Partnership has been developed onthe basis of the Bucharest Convention for the Protection of the Black Sea against Pollution (1992) and theDanube River Protection Convention (1994) that have been signed and ratified by riparian countries. Theinterventions supported under the Partnership, including agricultural nutrient pollution control, followdirectly from the Strategic Action Plans (SAP) prepared and endorsed by the Black Sea and DanubeCommissions, which carry out these Conventions. The Commissions and 17 riparian countries whichparticipated at the Black Sea/Danube Stocktaking meeting on June, 29-30, 2000 in Istanbul endorsed thePartnership and the three model projects: this project is an additional one. Supported by this endorsementby the Black Sea riparian countries, the May 2001 GEF Council approved the Partnership.

Social Issues Relevant to the Project.The agricultural land in the project area is divided into farms, fields and plots. Farm residences areusually within villages. These households usually stable animals - poultry, pigs, cattle, sheep/goats andhorses. The area is characterised by individual 'dry latrines,' a concentration of farm animal waste,limited knowledge for its efficient storage, management and use and the dumping of this waste and otherdomestic refuse near wells and watercourses. This has an actual or potential impact on human health asgeneral pollution of groundwater with nitrites, nitrates and bacteria has steadily increased. Infants (under6 months) and children are the most vulnerable to acute nitrite intoxication and the general population todiarrhoea diseases.

At the national level, Governmental restructuring and reduction of subsidies are influencing socio-economic conditions to a large degree, including real wage declines and unemployment. At the level ofthe project demonstration site, key rural development issues are the unsustainable use of resources,unemployment, lack of knowledge and lack of access to credit to support environment-friendlyagricultural practices. Poor economic conditions and their implications for social welfare result in a lack

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of interest in environmental protection on the part of stakeholders. The project will result in economicopportunities for key stakeholders that are linked to the objectives of the project.

A baseline household survey at the commune and village level has been conducted and is available,together with a special survey of people in the proposed wetland area. The results of these surveys havebeen used to fine-tune the project. The household survey will be undertaken annually to monitor progressof the project.

Stakeholder Participation in Project Preparation.During project preparation, key stakeholders, individual farmers, farmer organisations, NGOs and localofficials have been fully consulted in the development of detailed project components. A baseline surveywas undertaken to identify the relevant needs and priorities of the stakeholders and the informationobtained from the participating groups has been instrumental in the project's development.

Project Involvement with NGOs and other Civil Society Organisation.Project preparatory activities have been undertaken with full involvement and participation of governmentcounterparts, various research institutions, NGOs and relevant civil society organisations. Extensiveconsultative meetings were held during project preparation and the inputs of these groups have helped inthe outcome of project design. The ownership of land is mainly by individual farmers, but consolidationis beginning to occur. However, there is no resettlement issue in the project area.

Institutional Arrangements for the Project to Achieve its Social Development Goals.The Project Management Unit will ensure full participation of beneficiaries in the implementation of theproject. The PMU will annually monitor and evaluate project progress and measure the impact of projectactivities against the socio-economic baseline survey undertaken during project preparation. The PMUwill undertake a systematic analysis of the impact and achievements of project activities and the results ofthe M&E activities will be fed back into the implementation process as improved practices.

Monitoring the Project in terms of Social Development.Monitoring will be based on the baseline survey undertaken during preparation phase of the project.Extensive data from households in the communes and villages has been collected and the ProjectPreparation Unit has developed performance indicators. A well-designed monitoring and evaluationsystem that will include social indicators is being developed by the PMU, which will annually monitorand evaluate project performance through conducting beneficiary surveys. The results of M&E activitieswill be fed back into the implementation process as improved practices. A mid-term review will becarried out to assess overall progress. Lessons learnt, with recommendations for any improvements,would be used in restructuring the project, if necessary.

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Safeguard Policies.

Do any of the following the World Bank's safeguard policies apply to the project?

Policy ApplicabilityEnvironmental Assessment (OP 4.01, BP 4.01, GP 4.01) YesNatural Habitats (OP 4.04, BP 4.04, GP 4.04) NoForestry (OP 4.36, GP 4.36) NoPest Management (OP 4.09) NoCultural Property (OPN 11.03) NoIndigenous Peoples (OD 4.20) NoInvoluntary Resettlement (OP/BP 4.12) NoSafety of Dams (OP 4.37, BP 4.37) NoProjects in International Waters (OP 7.50, BP 7.50, GP 7.50) NoProjects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* No

Compliance with Applicable Safeguard Policies.The Project has several activities that will result in positive impacts on the environment. The only cautionwould be to ensure that eight (8) large manure storage facilities at the village level are designed properlyand constructed according to environmental guidelines of the SEI. The Project has put a safeguard thatdesign of these large manure storage facilities must be prepared under the supervision of County Councilengineering staff and SEI will ensure that the constructions of manure storage facilities have metenvironmental guidelines on stopping manure leakage to surface or groundwater sources. These facilitieswill not be built close to any surface water body. Also, manure storage facilities will be well covered andfenced off for to ensure safety. Another safeguard is that the project will implement an extensive soil andwater monitoring programme to ensure that seepage of manure to ground water does not occur.

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References.

MECTD 2001. Quality and Discipline in Constructions - Impact on Environment, Ministry of Ecology,Construction and Territorial Development, Chisinau, 2001.

MECTD 2000. Monitoring in Constructions. MECTD, Chisinau, 2000.

Constantinov Constantin 1987, Fighting Soil Erosion within intensive agricultural system, Chisinau,Stiinta Publishing House, Moldova.

World Bank 2003. Project Implementation Plan (PIP) for the Agricultural Pollution Control Project (with11 Annexes), APCP Office Chisinau 2003.PIP Working Papers, APCP Office Chisinau 2003.WP1 - Basic data on pilot watershed area ( Dumitru Galupa, Valeriu Mosanu, Ruslan Melian).WP2 - Community needs assessment (Dr. Nicolae Sali).WP3 - Baseline household survey (Tudor Danii).WP4 - Testing/Demonstration programme for environment-friendly agricultural practices.

(Dr. Acad. S. Andries, Dr. A. Prisacari, F. Zubatii, Dr. Robert L. Hill).WP5 - Manure Management System (Ion Raileanu, Ion Marcov, Dr. R. L. Hill, Dr. Eng. Stefan Nicolau).WP6 - Shrub and Tree Planting Programme (Dumitru Galupa).WP7 - Wetlands Management Programme (Nicolae Talpa, Ph.D. Adel Shirmohammadi).WP8 - Water and soil quality monitoring programme (Ruslan Melian, PhD. Dr. Adel Shirmohammadi).WP9 - Strengthening policy and regulatory capacity (Roman Gutu).WP 10 - Public Awareness Programme (Alecu Renita, Arcadie Capcelea).WP1 1 - Legislative and certification arrangements for promoting organic farming in Moldova (TACIS).WP12 - Project Cost Tables.WP 13 - Project Procurement Plan.

Talpa N icolae (2003). S ociological S urvey i n t he W etland P ilot A rea (Commune T ochile-Raduncani).ACPC Chisinau, Moldova.

MECTD (Dept. Environment Inspection) 1998. Pesticides: According to Bulletin No.9 MECTD,Chisinau, Moldova. The Water Standards of the State Environment Inspection, the GOST 17.1.3.04-82.Pesticides are classify into 4 classes depending on the damages it can pose on haematherms (warmblooded animals):

1. Low hazardous.2. Reasonably hazardous.3. Hazardous.4. Extremely hazardous.

MECTD (Dept. Environment Inspection) 1998. Water Quality Criteria. MECTD, Chisinau, Moldova.The national standard sampling procedures will be used as prescribed in the GOST 17.1.5.05-85."Environmental Protection. Hydrosphere. General requirements for surface and sea water, ice andatmospheric precipitation samples collection."

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Appendix la. Information Concerning Environmental International Cooperation.

1. International co-operation at global and re2ional level based on International Environmental Conventionsratified by the Republic of Moldova.

The Republic of Moldova adhered and ratified following environmental conventions:

1. Convention on Conservation of European Wildlife and Natural Habitats (Bern, 1997), ratified by ParliamentDecision No. 1546-XII from June 23, 1993;

2. Convention on Environmental Impact Assessment in Transboundary Context (Espoo, 1991), ratified byParliament Decision No. 1546-XII from June 23, 1993;

3. Convention on the Transboundary Effects of Industrial Accidents (Helsinki, 1992), ratified by ParliamentDecision No. 1546-XII from June23, 1993;

4. Convention on Protection and Use of Transboundary Water Courses and International Lakes (Helsinki, 1992),ratified by Parliament Decision No. 1546-XII from June 23, 1993;

5. Convention on Biological Diversity (Rio de Janeiro, 1992), ratified by Parliament Decision No. 457-XIII 1995;6. United Nations Framework Convention on Climate Change (Rio de Janeirol992), ratified by Parliament

Decision No. 404-XII from June 12, 1995;7. Convention on Long Range Transboundary Air Pollution (Geneva, 1979), ratified by Parliament Decision No.

399-XIII from July 9, 1995;8. Convention on Protection of the Ozone Layer (Vienna, 1995), Montreal Protocol concerning substances which

destroy the ozone layer (Montreal, 1979), ratified by Parliament Decision No. 966-XII from July 27,1996;9. Convention on the Control of Transboundary Movement of Hazardous Waste and Their Disposal (Basel, 1989),

ratified by Parliament Decision No. 1599-XIII from March 10,1998;10. United Nations Convention to Combat Desertification in countries affected by dryness, ratified by Parliament

Decision No. 257-XIV from December 24, 1998;11. Convention on Co-operation for the Protection and Sustainable Use of the Danube River (Sofia, 1994), ratified

by Parliament Decision No. 323-XIV from March 17, 1999;12. Convention on Access to Information, Public Participation in Decision-making and Access to Justice in

Environmental Matters (Arhus, 1998), ratified by Parliament Decision No. 346-XIV from April 7, 1999;13. Convention on Wetlands of International Importance especially as a habitat of aquatic birds (Ramsar, 1971),

ratified by Parliament Decision Nr. 504-XIV from July 14, 1999;14. Convention on the Conservation of Migratory Species of Wild Animals (CMS), Bonn, 1979;15. Agreement on the Conservation of the Bats in Europe (EUROBATS); African-Eurasian Water Birds Agreement

(AEWA), ratified by Parliament Decision No 1244-XIV from September 28, 2000;16. Convention on International Trade in Endangered Species of wild Fauna and Flora (CITES), Washington,

March 3, 1973, ratified by Parliament Decision No. 1246-XIV from September 28, 2000.

1.1. The Convention on Biological Diversity (Rio de Janeiro, June 5, 1992). ratified by Parliament Decision Nr.457-XIII on March 16,1995.

Within this convention was developed the first National Report, Strategy and Action Plan on biological diversityconservation, which has to be approved by the Government of the Republic of Moldova. Ranges of new appropriatelaws for the period of transition to market economy were approved. These laws practically regulate most aspects ofutilization, protection and regeneration of biological and human resources:* protection of natural habitats;* conservation of natural patrimony of single natural objects, important zones for species reproduction,

spontaneous flora and fauna;* regulation of use of biological resources;* integration of biological conservation requirements in national economy activities;Several approved laws are dedicated directly to biodiversity aspects such as, Conception of synergeticadministration development, other have "horizontal" character and are related to different environment aspects.Moldova still does not have special legislative acts that could regulate all biodiversity aspects in all their complexity.The following are laws on environment and biodiversity:* Regarding the fund of natural areas protected by state (1998);* Regarding Animal Kingdom (1998);

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* Forest code (1997);* Regarding synergetic administration development (1997);* Regarding green spaces of rural and urban localities;* Regarding environmental protection (1993);* Regarding ecological examination and environmental impact assessment (1997);* Regarding natural resources (1997);* Regarding the tax for environmental pollution (1998);* Regarding monuments protection (1993);* Regarding principles of town planing and territorial development (1996);* Regarding protection of river and basin water zones (1995).

Non-Governmental Organisations (NGO) have an important role in process of implementation of BiologicalDiversity Convention. The public information campaign is conducted by following methods: a range of TVprogrammes, ecological school lessons, introduction of environmental disciplines in all Moldovan high educationinstitutions, publications: newspapers, bulletins etc., which reflect environment issues. Expeditions to naturalreservation of Nistru and Prut rivers are organised. According to requirements of the Convention in the Republic ofMoldova was created a system of natural areas protected by state, elaborated regulations concerning organisationstructure and fields of activity, was adopted the classification of natural areas protected by state in correspondencewith Criteria of International Union on Nature Conservation (IUNC). These serve as a base for the "Law of naturalareas fund protected by state". In the last 20 years the surfaces of natural areas protected by state increased by 12times. At present, these areas protected by state are 66,467 ha, or 2 % of the country's territory.

1.2. Convention on Control of Transboundary Movement of Hazardous Waste and Their Disposal (Basel, March22, 1989) ratified by Parliament Decision Nr. 1599-XIII on March 10, 1998.

There were concluded materials and documents concerning the activity of respective institutions for Convention'simplementation, were accomplished co-ordination and prepared drafts documents for adhesion to:* Protocol on damage compensation after possible accidents during the waste transportation and their elimination.The legislative base, which regulates the order of waste administration, was improved by modifying some clauses offollowing laws:* Regarding production and domestic waste;* Regarding system of toxic substances and products;* Regarding secondary material resources.

For a strategic prospective, there was started the work on elaboration of "Regulation on transboundary transportationof dangerous waste", which was supposed to be concluded by the end of year 2000. In context of internationalcollaboration in the frame of Basel convention there are several documents for ratification:* Protocol on persistent organic pollutants on LRTAP (signed in June 1998 at Arhus);* Rotterdam convention on agreement of mandatory proceeding in international trade with certain chemical

substances and pesticides.

1.3. Convention on Conservation of European Wildlife and Natural Habitats (Bern, September 19, 1997), ratified byParliament Decision Nr. 1546-XII on June 23, 1993.

Report concerning invertebrate conservation in the Republic of Moldova was prepared.Republic of Moldova takes active part in elaboration and e stablishments of S marald Network, contributes to theelaboration and establishment of Pan-European Ecological Network. There is a plan to create the NationalEcological network. At present moment the general report for 2 years of activity regarding conventionimplementation is under preparation.

Seminars were organised on trans-boundary co-operation regarding the role and objectives of local public authoritiesin natural conservation problems. The agreement was elaborated regarding establishment and mutual managementof transboundary natural protected area in Danube River and the Lower Prut River between the Republic ofMoldova, Romania and Ukraine.

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1.4. The Convention on Long-range Transboundary Air Pollution (Geneva, 1979), ratified by Parliament DecisionNr. 399-XIII on July 9, 1995.

Since the moment of proclamation of its independence, in the Republic of Moldova, many laws were elaborated andapplied in many normative acts concerning pollution of atmospheric air:* Law on environment protection (1993);* Law on ecological expertise and impact evaluation on environment (1996);* Law on atmospheric air protection (1997);* Law on tax for environment pollution (1998).

These normative acts established the regulatory frameworks of atmosphere conservation, air on soil level,stratospheric ozone and averting of clime changing. There were created instruments of these laws:* Instruction on organisation and the effectiveness of the state ecological expertise;* Regulation on evaluation of the impact on environment of enterprises under privatisation.

To implement the legislative and rate setting, stipulating of above-mentioned convention, in the Republic ofMoldova take place general activities for air protection:* appreciation, registration and standardisation of harmful substances in atmospheric air;* determination of noxa concentration in air;* control of fulfilling the EMA normative, standard requirements, legislative and normative acts on air protection;* monitoring of air pollution;* expertise of air protection method in project documentation.

Taking into consideration the special impact of transport on air pollution, in the Republic of Moldova have beenrecommended several concrete measures for diminishing emission of harmful substances, especially of lead, whichis contained in exhaust gases.

Principal priorities for perfection of air protection activity.In order to perfect air protection activities, the Perfected Concept of air protection will be elaborate and opened up toexamination and adoption to colleagues of the MECTD, which will include:* improving legislative and systematic normative base, regulation of all activity directions (evidence, monitoring,

standardisation, passport control etc.);* establishment of priority directions in national and international activity to fore atmospheric pollution;* establishment national documentation priorities, that needs a urgent ratification and determination of a principal

directions of implementation;* determination of the role and place of new normative acts in ecological normative system, technical standards

and critical loads on ecosystems.

Some of priority directions of pollution averting and edification of atmospheric air:* saving the energy and resources;* forbidding the using of all types of ethyl gasoline;* modernisation of energetic sources and other combustion installations, which will be changed to function with a

pure ecological gasoline;* forbidding of mobile neutralisation resources and other installations to diminish the exhaust gases;* implementation of non-traditional sources for energy production;* implementation of gasoline standards with more drastic chemical index, with a lower content of lead and

sulphur and obligatory including in settlement standards regarding emission of aromatic substances and benzol.

In 1998 in Aarhus, Republic of Moldova signed two protocols:* protocol regarding persistent organic pollution;* protocol regarding heavy metals.

In 1998, the Republic of Moldova was involved in negotiation for protocol elaboration on control of acidification,eutrophication and ozone at the soil level. In this protocol were included dates concerning national emissions ofammonia, sulphur, oxide of nitrogen and persistent organic components for 1990 year, limiting the substanceemission for 2010 year in quality of principal obligations. Goal of this protocol is to minimise the above mentioned

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emissions to atmospheric air, control of acidulation, eutrophication of environmental components and ozoneelaboration at the soil level, protection of people health, conservation of flora and fauna.

1.5. Convention on Protection of the Ozone Layer (Vienna, 23 March 1995), Montreal Protocol concerningsubstances which are destroying the ozone layer (Montreal, 16 September 1979). ratified by Parliament Decision Nr.966-XII on 27 July 1996;

It was established the National Committee for Ozone Problem through Decree of President of the Republic ofMoldova "On setting-up of a National Committee for Ozone problem" (Nr.208 from 26.07.96).Through Government Decision of the Republic of Moldova "Concerning application on territory of the Republic ofMoldova p rovisions o f V ienna C onvention a nd M ontreal P rotocol r egarding p rotection o f o zone 1 ayer" (Nr. 300from 18.03.1998), were determined the principal directions of activity in our country for implementation ofinternational documents precautions:* Organisation of evidence of production, consume import-export of regular substances that destroy the ozone

layer, products which contains settlement substances through elaboration of annual statistic forms andeffectuation of statistic State evidence. Evidence of import-export of these products and substances by theCustoms Control Department;

* Organisation and effectuation of licensed production, consume import-export of settlement production andsubstances, respecting the utilisation code established through Montreal Protocol;

* Elaboration and presentation to Government for approbation, of the National Programme for Settlement ofutilisation in economy and substitution of substances that destroy the ozone layer;

* Forbidding of import-export for substances that are destroying the ozone layer and products, which containregulate substances from countries that are not Part of Vienna Convention and Montreal Protocol.

By Government Decision "Regarding several regulating activities in Republic of Moldova", (Nr. 859 from August13, 1998), there has been established concrete precaution for licensing several kinds of activities includingproduction import-export and consume of SDO and PDO. According to Montreal Protocol and Vienna Convention,first of all article 5 (1), the Republic of Moldova is considered as a developing country and has to reduce the use ofmaterials, which destroy the ozone layer. For implementation of these directives and control measures, stipulated inthe Montreal Protocol and Vienna Convention (art. 5.1), the following laws were elaborated and approved:* Law regarding licenses granting for some kind of activities (Nr. 332 from March 26, 1999);* National Programme for suppression of phased substances that destroy the ozone layer in the Republic of

Moldova was approved by Government Decision of the Republic of Moldova (Nr. 1064 from November 11,1999). This programme was elaborated in correspondence with requirements of Executive Committee ofMultilateral Fund of Montreal Protocol. In base of actual institution evaluation, was elaborated strategy andaction plan regarding suppression of phase and removal of use of materials that destroys the ozone layer.

In third chapter of the above mentioned programme "Starting of the process of suppression of phased substances thatdestroy the ozone layer", are stipulated principal Strategy in field of ozone layer protection and Action Plan in theRepublic of Moldova. According to above-mentioned plan, several methods of activity are planed until 2005. Thisplan includes legislative-normative mater, institutional mater, researches and monitoring, public training andinformation. Activity concerning recovering and recycling of refrigeration agents, is regulated with precaution offourth chapter "Implementation of recovering and recycling programme of refrigeration agents". According withArticle 1 of fourth chapter, it is stipulate the suppression of phasing SDO for the year of 2000.

The "Ozone" office of the Ministry of Ecology, Construction and Territorial Development, was created inaccordance with the action plan mentioned above. It is responsible for undertaking a range of activities towards theimplementation of the Montreal Protocol and Vienna Convention.

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1.5.1. Project started in the Republic of Moldova to implement the Montreal Protocol.

The following projects were launched as a support for the implementation of Montreal Protocol.

1.5.1.1. Institutional structure for implementation of Montreal Protocol in the Republic of Moldova.Project objectives:* Increasing of capacity actions with a view to ensure a adequate climate in our country, for urgent suppression of

SDO (substances that destroy the ozone layer);* intensification of co-ordination and monitoring activity of SDO suppression;* perfection of informational system regarding collecting, analyse and transmission of information about

undertaken measures for ozone layer protection;* Intensification of Protocol Parts collaboration;* Perfection of national reporting system on SDO consume;* Implementation of management plan in the refrigeration sector.

1.5.1.2. Training of instructors for refrigeration sectorProject objectives:* Training of technicians and instructors to minimise CFC utilisation according the Refrigeration Sector.

Management Plan. International consultant delegated by UNEP will organise training seminars for technicians,which settle, exploit and repair refrigeration equipment. These trained people will train other technicians later.

1.5.1.3. Training in Control and monitoring of CFCProject objectives:* Monitoring perfection and import-export control of CFC and equipment that contains CFC. For this, will be

organised training seminars for customhouse officers (with participation on International expert) and oneregional seminar for representatives of "Ozone" office and Custom Control Department.

1.5.1.4. Implementation of recycling and recuperation programme for refrigeration agents.Project objectives:* Implementation of recycling and recuperation programme of refrigeration agents. Training of technicians

regarding installation, harming, recycle recuperation methods of refrigeration agents.

1.6. The Convention on Access to Information, Public Participation in Decision-making and Access to Justice inEnvironmental Matters (Aarhus, 1998). ratified by Parliament Decision Nr. 346-XIV on April 7, 1999.

The Republic of Moldova is the first country to ratify this convention. The first steps for implementation of Aarhusconvention have been done already:* Organise and hold seminars under the auspices of REC-Moldova concerning the Aarhus convention

implementation covering access to information, public participation in decision-making and access to justice inenvironmental matters. Seminars regarding the Aarhus convention implementation took place in the north(Balti), centre (Chisinau) and southern part (Cahul) of Moldova with representatives of ministers and counties.REC-Moldova organised these seminars overseen by MECTD. MECTD in common with Pronatura Foundationand the National Institute of Ecology organised two conferences on theme 'public participation on problems ofenvironmental protection' for local authorities in two commune: Carpineni and Lapusna.

* The Ministry of Ecology, Construction and Territorial Development maintains permanent relations with thepeople through press conferences, round tables etc. Within the MECTD is the division: Public Relation, MassMedia and Ecological Education, which is responsible for Aarhus convention implementation. It includes suchresponsibilities as, public information, ecological education, and co-operation with NGOs. In collaborationwith NGOs this division is responsible for law elaboration regarding population's ecological education.

It i s i mportant to mention N GOs c ontribution i n this field o f a ctivity. T here are about 7 0 a ctive e nvironmentalNGOs, 40 of them are working in ecological education field. Their activities include TV programmes, films aboutthe environment, ecological tourism oriented to sustainable development, training for local public authorities,expeditions having scientific goals etc.

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1.7. The Convention on Environmental Impact Assessment in Transboundary Context (Espoo, 1991), ratified byParliament Decision Nr. 1546-XII on June 23, 1993.

* The Republic of Moldova participated at working group activity for reporting arrangements of countries part tothe Convention, for the second meeting of Environmental Ministry in Sofia on February 2001.

1.8. The United Nations Convention to Combat Desertification in countries affected by dryness, ratified byParliament Decision Nr. 257-XIV on December 24, 1998.

* In 1997 was organised seminar for getting knowing with United Nation Convention to combat desertification inthe Republic of Moldova;

* text of this convention was published in Romanian (official language), was elaborated and published a bookletregarding United Nations Convention to combating desertification;

* in year of 2000, Government of the Republic of Moldova adopted the National Action Plan (decision Nr. 367,April 13, 2000);

* in M ay 2 000, M inistry o f E nvironment and T erritorial D evelopment approved the N ational report r egardingconvention decision in Republic of Moldova, which have been presented to the Secretary of UN convention tocombat desertification;

* was organised seminar "Social-economic development of regions that are under desertification process";* was published the popular-scientific monograph named: "Droughts and territory degradation in Moldova";* maps publishing on territories with desertification problem;* publishing of illustrated booklets regard combating of degradation problems on local level;* organising a database concerning on droughts, territory degradation and water resources;* preparing the draft for the regional project "Sector monitoring (Hungary, Romania and Moldova)";* organising meetings, seminars with farmers, collective farmers representatives from droughts regions of

Republic of Moldova (Comrat, Ciadir-Lunga, Stefan-Voda, Cahul, Leova);* founding of video-films "Droughts and territory development in the Republic of Moldova."

2. International co-operation at global and reeional level based on International Environmental Conventionsawaiting ratification by the Republic of Moldova.

At present time documents are under preparing for adhering to following conventions:

* CITES -convention on trade with rare species of flora and fauna (Washington 1973);* Convention on Conservation of Migratory Species of Wild Animals (Bonn 1979) and two protocols within the

convention:* African-Eurasian Water Birds Agreement - AEWA, (Hague 1995);* Agreement on Conservation of European Bats Population - EUROBATS (London, 1991).

3. International co-operation with Global Environmental Organisms.

The Republic of Moldova gets technical and financial assistance for environmental projects, and internationalconventions from the following international organisations: United Nations Environmental Programme for (UNEP),United Nations Development Programme (UNDP), World Bank (WB).

4. European International Co-operation.

4.1. European UnionUndertaken actions based on Co-operation and Partnership agreement between the Republic of Moldova & the EU.

4.2. Organisation for Environmental Co-operation and Development (OECD). Working group on national plan ofactivity in environment field.

Ministry of Ecology, Construction and Territorial Development took and take active part in following programmes:* Environmental Policy, / Implementation of the National Action Plan and of the National Action Plan on

Environment in Central and Eastern Europe;

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* Environmental Management in enterprises in the New Independent States;* Management and Support Activity, work group Task Force;

4.3. Organisation for Security and European Co-operation (OSEC).

4.4. European Bank for Reconstruction and Development (EBRD).

5. Bilateral Co-operation.

5.1. Collaboration within the bilateral co-operation agreements.

* Agreement of collaboration between Ministry of Ecology, Construction and Territorial Development of theRepublic of Moldova and Romanian Ministry of Water, Forest and Environment in the field of environment andlasting use of natural resources;

* Ministry of Ecology, Construction and Territorial Development of the Republic of Moldova and Ministry ofEnvironmental Protection and Atomic Security of Ukraine;

* Agreement between the MECTD of Moldova and the Ministry of Natural Resources and EnvironmentalProtection of Republic Belarus regarding environmental collaboration.

5.2. Other relations of bilateral co-operation.

a). Finland gave assistance to the Republic of Moldova for several years in wood management. Also, it waselaborated a Strategy of Sustainability Forest Development in the Republic of Moldova.

b). The Netherlands supplied to the Republic of Moldova information and resources for agricultural programmeelaboration. A s pecialist i n sustainability d evelopment c ame from Avalon Foundation to o ffer c onsultation a t 3seminars on the same theme, organised by State Ecological Inspectorate in common with Ministry of Agriculture.This process will continue with collaboration for elaboration of agricultural sustainable programme in the future.

c). Denmark offered to assist the Republic of Moldova in the implementation of Aarhus Convention, through thesetting up of a information centre and a "green" library.

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Appendix lb. Summary Review of Legislative and Institutional Framework.

1. Existing Legislation.

Land Code, No 828, 25.12.91.* Two main legislative acts that regulate land relations are: the Constitution of the Republic of Moldova and the

Land Code. The Land Code defines the land fund and its components, the modality of conferring and alienationof land plots, the rights and obligations of landowners. It provides for two types of property: private and public.The competence of the parliament, government and local public administration authorities in the domain of landrelations are agreed upon in the Land Code.Water Code, No 1532-XII, MO 10/287,30.10.93.

* This code constitutes the legal framework for preparation of legislative acts that regulates the water fundutilisation. The code contains provisions on water usage, the modality and conditions of water resourcesdistribution, the rights and obligations of water users, reasons and procedures of cease of the rights to use water.Law on Environmental Protection, No 1515-XII, MO 10/583,30.10.93.

* The law stipulates management basis for environment protection and reflects the state policy in this field, refersto the creation of ecological funds meant to finance environmental protection programme and outlines theprinciples of their activity. The law envisages concrete and direct actions in the field of establishingradiological and food quality monitoring and biodiversity conservation.Underground Resources Code, No 1511-XII, MO 11/325, 30.11.93.

* The code regulates underground resources protection and utilisation. According to the code, undergroundresources constitute public property. The code stipulate that underground areas can only be leased or given inconcession for different uses, as for geological, geo-mechanical or ecological researching, construction orexploiting of objectives linked to mineral extraction, noxious substance storage and waste products.Law on Protection of Riparian Zones, No 440-XIII, 27.04.95.

* This law establishes the creation of protected riparian zones, their utilisation and penalties implied forinfringement of protection regime.Law on Fauna Protection (Animal Kingdom), No 439-XIII, MO 62-63/668, 09.11.95.

* The law regulates the relationship in the field of protection and use of wild animals, which habit in natural modein terrestrial areas, in water ecosystems, in atmosphere. The annexes of the law specify the species, included inthe Red Book of Republic of Moldova and protective actions against hunting, fishing etc. of this species.Law on Secondary Material Resources, No787-XIII, MO 31/320, 23.05.96.

* The goal of the law is to ensure the rational utilisation of national resources and the objective is to regulate therelation that had been established in the process of collection, procurement, processing, storage, transportation,utilisation of production and consume wastes, as well as implementation of scientific technologies.Law on Ecological Expertise & Evaluation of Environment Impact, No 851-XIII, MO 52-53/494, 08.08.96.

* The law sets down the aim and principle of ecological expertise and of impact evaluation on environment, aswell as main rules of their realisation. Ecological expertise, according to the law, is obligatory for all economicactivities, in spite of their destination, form of property, investment size and source of financing.Forestry Code, No 887-XIII, MO 4-5/36, 16.01.97.

* The code regulates the institutional relations in the field of forestry resources, defines the forestry fund, whichinvolves all forests, indifferent of their type of property and managing fund. The private property on forestry ispermitted in case of forestry plantation in private areas. The main objectives of administration and managementof forestry fund are sustainable development of woods and the maintaining of their biodiversity andregeneration and extension of forests. The norms of forestry use are stipulated in the present code.Law on Natural Resources, No 1102-XIII, MO 40/337, 19.06.97.

* The objective of this law is to regulate the relations in the field of utilisation, protection and reproduction ofnatural resources in order to ensure ecological security and sustainable development of the country. The lawenvisages classification and administration of natural resources, establishes the investment policy in the area ofnatural resources and their state control.Law on Regime for Harmful Products and Substances, No 1326-XII, MO 67-68/557, 16.10.97.

* This law establishes the legal framework in the field of fabrication, storage, utilisation and transportation ofharmful products and substances, of their import and export in order to eliminate, reduce or prevent the impactof above mentioned products and substances on human health and environment.

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Law on Wastes, No 1347-XIII, MO 16-17/101, 05.03.98.* This law regulates administration of production and consumer wastes in order of diminishing of their size, their

reworking and prevention of environment pollution. The law envisages rights and duties of relevant bodies,requirements on environment security.Law on Radiation Protection and Nuclear Safety, No 1440-XIII, MO 24-25/154, 19.03.98.

* The law names public administration bodies that are responsible for radioprotection and nuclear security, theirresponsibilities and obligations. The law stipulates the rights and duties of citizens in these matters.Law on Air Protection, No 1422-XIII, MO 44-46/312, 21.05.98.

* The law stipulates the prevention principles of air pollution through the establishment of pollution and airquality normative and it also names the relevant bodies and their responsibilities.Law on Taxes on Environmental Pollution, No 1540-XIII, MO 54-55/378,18.06.98.

* The objective of the law refers to relations regarding the emission of polluting substances and storage ofproduction wastes. The law contains provisions on the modality of establishing, calculation and perception ofthe payment for air pollution.Law on Protected Areas, No 1538-XIII, MO 66-68/442, 16.07.98.

* This law establishes the legal status of state-protected areas, principles, modality and conservation of theseareas, attribution of central and local public authorities, non-governmental organisations and private persons.Law on Drinking Water, No 272-XIV, MO 39-41/167,22.04.99.

* The law stipulates the necessity of elaboration of quality requirements for water state quality standard, regulatesthe activities on water supplying.Law on Green Areas of Urban and Rural Settlements, No 591-XIV, MO 133-134/649, 02.12.99.

* This I aw r egulates r elations i n the d omain o f d evelopment a nd p rotection o f g reen a reas o f urban a nd ruralsettlements in order to ensure everybody's right to a healthy and pleasant environment.Law on Public Access to Information, No 982-XIV, MO 88-90/664, 28.07 2000.

* The law regulates relations in the field of public access to information, namely: principles, conditions, andpublic access modalities to official information. The law stipulates the rights of information applicants and theobligations of information providers in the process of insurance of public access to official information. The lawprovides the modality of defending the right to access to information.Parliament Decision approving the National Strategy and the Action Plan on Biodiversity Conservation,Noll2-XV, MO 90-91/700, 2. 08. 2001.

* The concept fixes the main directions to be followed in order to improve & conserve the country's biodiversity.Law on Biological Security has been submitted to the Parliament for approval.

* The law regulates all activities pertaining to receiving, testing, using and trading genetically altered species. Itaims to protect the population's health and life, the country's biological diversity, ecological balance andenvironment. This control shall be effectuated by a special National Commission, which will issue licenses torun corresponding activities. Any actions with genetically altered species shall only be possible upon receivingpermission from the commission which must first ensure that this is not detrimental to health and environment.

2. Draft legislation.

Law on Ecological Insurance.Law on Ecological Education.Law on Soil Conservation.Law on Underground Water.Law on Protection of Localities from Harmful Geological Products.Law on Regime of Genetically Modified Organisms.Law on Accession to the Convention Regarding Conservation of Migratory Wild Animals, Bonn 1979.Law on Accession of the Republic of Moldova to the Convention Regarding International Trade withWild kinds of Flora and Fauna that are on the endangered, (CITES)-Washington, 1973.Law on Amendments to the Law on State Ecological Expertise and the Impact of Waste on Environment.Law on Amendments to the Law on Animal Kingdom.Law on Amendments to the Law on Products Wastes.Law on Amendments to the Law on Drinking Water.Law on Ratification of the Convention on European Landscape.Law on Amendments to the Land Code.Law on Access to Ecological Information.

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3. Institutional framework.

* Ministry of Ecology, Construction and Territorial Development.* State Ecological Inspectorate, with 12 Zonal Ecological Agencies.* State Forest Service of the Republic of Moldova (Moldsilva).* State Concern " Apele Moldovei."* National Institute of Ecology.* Hydro-Meteorological Service.

4. Projects and TA.

EU/TACIS.Joint Environmental Programme (Feb. 2000 to Feb. 2003).

Activities: Support to the CIS and Mongolia in further implementation of their National Environmental ActionProgrammes (NEAPs) through leveraging TACIS grant funds to facilitate projects financing in the region at the ratio1: 15; facilitating close collaboration, initially between TACIS, the World Bank and other IFIs in identification andpreparation of investment projects for the World Bank and other financing; carrying out feasibility studies onsustainable projects; transferring know-how in project development and pre-feasibility studies.

New Regional Environmental Centres - New REC (Phase 3, November 2000 to December 2002)Activities: fostering civil society participation and promotion international as well as inter-regional co-operation inenvironmental protection issues and sustainable development; consolidating the NRECs management andoperational capacities.

Selected actions from the environmental programme for the Danube river basin in Moldova and Ukraine.

EU/EURO-Re2ions.EURO-region "Upper Prut."

Euro-region 'Upper Prut', was started in 2000 on the territory of two Romanian judets (Suceava and Botasani), twoMoldovan judets (Edinet and Balti), and the Chernovtsy district of Ukraine. Problems that still need to be solvedhere relate to ecological security, tourism promotion, protection of interests of national minorities and provision oftheir cultural needs, economy, creation of multi-cultural University in Chernovtsy. Institutional structure: Council ofEuro-Region and joint sector Commissions. It was also launched the initiative of creation an Eco-region in whichcompound must enter the Iasi district (Romania), the Vinita region (Ukraine) and the Ungheni District (Moldova).

EURO-region "Lower Danube."Euro-region 'Lower Danube', was created in 1998 on the initiative of authorities of three Romanian judets (Tulcea,Braila and Galati), one judet of Moldova (Cahul), and the Odessa district of Ukraine. The field of collaborationincludes ecology, economy and employment, infrastructure, education, health-care, joint efforts against the naturaldisasters (floods, earthquakes, etc.). The co-operation of Cahul University (Moldova) and Galati University 'LowerDanube' (Romania) has also begun and the results are good. Contact: Min. of Economy, tel: 23 38 98.

UNDP.Enabling Moldova to prepare its first national communication in response to its commitments to the United

Nations Framework Convention on Climate Change.Activities: To built capacity and take climate change-related issues increasingly into account in Moldova, thusfacilitating the country to deal with the climate change and its adverse impacts Contact: MECTD

Danube Pollution Reduction Programme.

Government of Japan.Elaboration of National Strategy of soft water resource management. Contact: "Apele Moldovei."

World Bank.Biodiversity Strategy Development (grant from Global Environmental Facilities).

Activities: Assist Moldova in implementing Articles 6 and 8 of the Convention on Biological Diversity. Supportformulation and adoption of strategies and actions for the protection and sustainable use of bio-diversity, through aparticipatory process - public and private sectors and local NGOs. Contact: Mr. Alexandru Teleuta, tel: 26 51 12.

Preparation of a Wetlands & Biodiversity Conservation Project (grant from Global Environmental Facilities).

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Activities: Prepare the project proposal for Wetlands and Biodiversity Conservation Project that would addressexisting national environmental priorities of improved water quality and habits management on the Dnister River.Contact: Biotica NGO, Mr. Piotr Gorbunkov, tel: 24 32 74.

EBRD.Chisinau water services rehabilitation.

Activities: Substantially improve both the quality and reliability of Chisinau's water supplies, making majorreduction in leakage, rehabilitate pumping stations, pipelines, storage, metering, sludge handling and treatment.Contact: Company "Apa - Canal", tel: 22 23 49.

TCP with Kingdom of Netherlands.Production of energy resources (briquettes) from biomass (Mar 1999 - Mar 2002).

Contact: Farmer's Association from Corjeuti Community, Judet Edinet.Biogas production from urban residual water (Jan 2000 - Jan 2001/Jan 2002).

Contact: Company "Apa - Canal", tel: 22 23 49.Biomass treatment and generation of energy from agricultural wastes (March 2000 - March 2003).

Contact: Mayoralty of Corjeuti Community, Judet Edinet.Pilot Project implementation of ecological pure technologies in wine production (under preparation).

Contact: Oenology Union, VITIS Hincesti, Judet Lapusna.Energy conservation and minimisation of water consume in food industry (July 2000 - March 2002).

Contact: J.V. Drojdii tel: 43 49 54.Generation of thermal-energy and electricity from organic wastes (July 2000 - Dec. 2002).

Contact: S.A. Avicola, Vadul-lui-Voda.

NGO activity.NGOs activity is mostly focused on education and information. The Regional Environmental Centre Moldova

(REC Moldova) was established in 1998 in order to assist non-governmental community of the country to solveenvironmental problems by raising public awareness and commitment in the field of environmental protection.Actually there is a growing community of NGOs in the country. Currently around 140 of them act in the field ofenvironmental protection; one of the most active NGOs is Environmental Movement of Moldova, founded in 1990 onthe basis of former republican society for nature protection. Another active NGO that also accumulated more than 10years of experience is "Biotica" ecological society. Unfortunately at present the NGOs' activity has no big resonanceor influence on the population. Contact: NGO "Contact" Mrs. Aleona Niculita, tel: 23 39 46.

5 Status.

5.1. Features of the Republic of Moldova.The Republic of Moldova has an area of 33,800 km2 ; it stretches for 350 km North South and 150 km East West. Itis one of the most densely populated countries in the region, with 128 inhabitants/km2 . The distribution of rural andurban population stabilised at 54% and 46% respectively in 1996. Moldova is a predominantly rural country, 76%of the area is agricultural land (with 20% of it irrigated) and. 10% are forests. It is delimited by the Prut River, whichit shares with Romania. On the border with Ukraine, part of its territory is on the left bank of the Nistru River(Transnistria). Moldova forms part of the Black Sea watershed. The country is relatively low-lying and hilly, withsemi-arid steppe plains in the south and a dry climate with erratic precipitation and very often droughts are present.

5.2. Legislative framework.Moldova has a comprehensive corpus of environmental laws and regulations, which is being supplemented by theaddition of new laws. There are four major problems concerning the legal framework:* Weak enforcement.* Ineffective penalties.* Structure/Content of the law.* Conflict between laws.The first two problems are temporary; they are v ery much related to economic and political transition, which isunder way. The last one is a product of structural weakness in the style of law making and co-ordination within andbetween ministries and departments.

5.3. Economic and regulatory instruments.The following economic instruments are in place to integrate environmental aspects in economic decisions:

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* Taxes on the use of natural resources (soil, water, minerals, flora, fauna);* Charges for environmental pollution and related services (discharge of polluting substances above the allowable

limits and dumping waste);* Fees to compensate for damage to the environment;* Excise duties on imported cars and fuels;* Subsidies;* Incentives to promote rational use of natural resources, apply cleaner technologies, reduce waste, water etc.

There are three sources currently used to finance environmental expenditure:The State Budget;Fees accumulated in environmental funds (National Environmental Fund and Local Environmental Funds);Enterprises resources (taxes on use of natural resources).

The Ministry of Ecology, Construction and Territorial Development is the principal responsible body. The NaturalResources and Licenses Division (DEP) within the MECTD issues licenses to generate, transport, trade and recyclehazardous wastes. The Ecological Expertise Division assesses new construction projects, and the reconstruction ofwater facilities. Bigger projects must be assessed for their impact on the environment. The DEP issues ecologicalpermits to manufactures. It is in charge of the water survey (surface water, groundwater and water management).

A system of environmental standards for ambient water and air quality that should be prepared by DEP, Ministry ofHealth and the Academy of Sciences is currently missing.The Environmental Inspectorate continues to be the institution that enforces the regulations. At the present, the ISO14000 series is unknown to business and ISO 9000 series is currently a priority in the manufacturing industry.Public access to environmental information and public input to environmental decision-making should be increased.Efforts should be made to redraft the law on access to environmental information so that it is compatible with theprovisions of the European Union legislation on this issue.There is an acute need to produce a strategic environmental plan for Moldova - the National Environmental ActionPlan (1993) is unable to fulfil the role of a strategic plan because it is too focused on identifying specific priorityissues. It has insufficiently strategic in its analysis, issue coverage and in the range and type of recommendations.The National Strategic Action Programme for Environmental Protection (1995) is rather theoretical and academic inits analysis and approach. Practical implementation of its recommendations is difficult.There is established a working group in the framework of the MECTA with the goal to produce a new strategicenvironmental plan for Moldova.

5.4. Water management.Moldova is situated in a region with insufficient humidity. From the country water resources 72.3% belongs toNistru River, 20.6% belongs to Prut River. Nistru and Prut Rivers are polluted with oil products, organic andnitrogen substances. In many regions the water pollution is 2-3 times higher than ecological norms. From the totalquantity of ground water only 25% can be used for economic purposes without pre-treatment, because of thegenerally high mineralisation. A major problem in the effort to manage water resources is to ensure adequatedrinking water and wastewater collection and treatment. Groundwater under 60% of the country's territory does notsatisfy drinking-water requirements. In urban localities 70% of the population is connected to the centralised watersupply, but in rural localities mainly the traditional sources are used (wells). The drinking water in village wells isestimated to be polluted. The proportion of wells with nitrate levels above the established standards in 1999 wasnearly 65%. Domestic sewage and wastewater from economic activities are a major source of surface andgroundwater pollution. About 70% of the urban population are connected to municipal wastewater treatment plants,but most of the villages discharge their wastewater without treatment. The absence of detoxifying pre-treatment forwastewater discharged from galvanic shops has resulted in an excess of heavy metals in municipal wastewatertreatment plants, undermining biological treatment. A group of foreign experts arrived in Moldova on 22.June.2000to examine the present-day state of the Prut and Nistru border rivers. NATO is financing the project.

5.5. Air management.

There is no nation wide air quality monitoring. The Republic of Moldova is exposed to imported air pollutants,although the country is practically a net exporter. To control trans-boundary air pollution, three to four additionalstations on the border with Ukraine and Romania would be necessary. The full analysis of samples of transboundaryair pollution should be performed in the laboratories of Hydrometer, together with the National Institute of Ecology

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(this will be possible only in case Hydrometer is equipped for the purpose). Reported air pollution mainly originatesfrom the use of commercial energy and, particularly, transport activities. Since 1990 the estimated combinedemissions of classic air pollutants, such as sulphur and nitrogen dioxide, carbon monoxide and particulate matterhave decreased by a factor 2 in the Republic of Moldova. Total suspended particulates (TSPs), SO 2 are measured infour cities only. All city monitoring stations were located and equipped at the time and according to the criteria ofthe former USSR. No station is equipped with automatic measuring devices. In general, relatively high annualconcentrations of particulate matter or TSPs prevail in all monitored cities; exceeding three to four times presentWHO guidelines. At current levels of nitrogen oxides and other traffic-related pollutants the urban population runsthe risk of health problems.

5.6. Waste management and clean technologies.

Waste management is rapidly growing into a major preoccupation in Moldova. Although Moldova does not produceany nuclear energy, nuclear safety is an issue of concern. Moldova is surrounded by eight nuclear reactors; all ofthem located within 150 km. of its borders. The Programme on Strengthening Radioactive and Nuclear Safety ofthe International Atomic Energy Agency (IAEA) includes projects concerning Moldova's situation. The radioactivefallout from the Chernobyl accident also affected the country. There are no official data on the methods of storage,handling or dilution of wastes from agricultural enterprises, but according to the Department of Statistics the wastequantities from agro-industrial sector are increasing. The same happens with industrial and hazardous wastes.There is no organised disposal site for hazardous industrial and chemical waste. Currently, only 5% of the industrialwaste generated annually is sent to proper disposal sites; three-quarters is dumped informally on communal tips,mixed with municipal waste, and surface water and ground water have been polluted to unknown level. Also, thereare cases of toxic waste dumps under insufficiently controlled conditions. The situation is getting worse, as themajority of industrial enterprises are in crisis and efficient standards for treatment and disposal are lacking. Anotherobstacle to the processing of hazardous wastes in the lack of basic equipment to determine the chemical compositionof some of them. Moldova does not have a programme that is in accordance with all ecological securities norms fordepositing and neutralisation of dangerous wastes.Experience with t he i ntroduction o f c leaner p roduction ( comprising t echnology a nd management a spects) i s st illlacking. To gain experience and make progress a co-operative effort will be needed by public administrations andtheir partners, private enterprises, as well as foreign investors.

5.7. Soil management.

There are 745 classified soil varieties in Moldova. Most of the soils are being used as arable land-even those thatare naturally not very suitable for agriculture. Soil erosion is a problem in Moldova. In addition to soil erosion,landslides along slopes also produce noticeable damage. Extrapolation of soil erosion losses corresponds to anestimated annual loss of US 45-55 million. Fertiliser use was high before the transition, but recently the fertiliseruse is a very low level (only 11% of the recommended fertilisers are used). Soil and groundwater contaminationswith pesticides are facilitated by poor storage facilities for pesticides and lack of enforcement of rules for theirtransport. Also significant is the 90% decline in the number of trees grown for soil and water conservation andprotection, there has been illegally cutting for firewood.

5.8. Biodiversity management.

There are two basic ecosystem types: steppes and forests. The vegetation of the steppes is practically destroyed.Forests cover 9.6% of the territory; 86% of these are planted. Natural formations represent only 4% of the totalcover. Moldova is far less forested than other European countries. The recession and high cost of imported fuelhave led to the illegal cutting of trees for fuel wood. It is estimated that 65% of fuel wood needs are met in this way.The increase in the prices of energy for households is likely to increase illegal cutting. Another threat to forest areasis grazing, because animal feed prices have risen. Newly planted areas are particularly vulnerable to grazinganimals, which destroy young plants and tear out seedlings. In 1996 Moldova worked out a strategy for theconservation of biological and landscape diversity. The Action Plan contains short-, medium- and long-termactions, as well as the respective responsible organisations and time frames. The goals to be achieved are:minimisation or elimination of negative impacts on biodiversity, sustaining the recovery capacity of biological andlandscape diversity, public participation in the conservation of biological diversity.

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Appendix lc. Environmental Assessment for the World Bank Rural Investment and ServicesProject (RISP).

Environmental Category: Fl (Financial Intermediary Assessment).

5.1. Summarize the steps undertaken for environmental assessment and EMP preparation (includingconsultation and disclosure) and the significant issues and their treatment emerging from this analysis.

The project falls into the World Bank's Fl category, as it will mainly provide funds to lending institutions that on-lend the funds to qualified applicants to implement a wide variety of rural development activities. As required for Flcategory projects, a comprehensive Environmental Review (Environment Sector Review, dated March 2001, inproject files) was conducted by international and local consultants to:* assess the adequacy of the legislative framework for environmental assessment;* identify institutions that would be responsible for the EIA under RISP;* determine TA and training needs for these institutions to adequately implement the environmental assessment

(EIA) requirements; and* propose procedures for environmental screening, EIA preparation and implementation, possible mitigation

measures for certain sub-projects, and monitoring and evaluation of implementation of EIA requirements.

The activities to be financed under the RISP will be small, demand-driven investments in farm and non-farm incomegenerating activities. Given the small size of the activities financed under the project, the environmental impacts ofindividual subprojects are expected to be small. However, the specific activities, their potential environmentalimpacts, and local cumulative impacts can only be known during project implementation. For this reason, theproject will put in place an environmental review and screening mechanism that will:* carry out an environmental review and assessment as needed in accordance with Moldovan Law and World

Bank requirements;* prevent financing of projects with significant environmental impacts, and* identify mitigation measures for project with less than significant environmental impacts, to be implemented as

part of the subproject activities.

To guide PFIs and CAPMU in this process, an environment section was developed as part of the Rural CreditGuidelines for PFIs under RISP, providing mechanisms for environmental screening of proposals, preparing an EIAand supervising its implementation.

The Project will build capacity in the CAPMU to undertake the environmental reviews and ensure that themitigation measures are followed. This technical assistance will be co-financed by a grant from the GlobalEnvironment Facility (through the Agricultural Pollution Control Project, APCP). As a result, potentialenvironmental impacts will be avoided or minimized by applying a set of good practices directed to farmers throughthe advisory Components of the RISP, such as providing guidance to clients on environmental and agriculturalsustainability m atters when advising on agricultural production activities. In addition, the A PCP and the LowerDniester River Biodiversity Project (a second GEF-financed project) will support environmentally sustainableagriculture technologies, organic farming, and provide farmer education on environmentally sound practices. Theseprojects will provide incentives to farmers and extension services to enhance agricultural productivity in anenvironmentally friendly manner.

5.2. What are the main features of the EMP and are they adequate?

For projects requiring an EIA, the EIA will identify whether an EMP is needed.

5.3. For Category A and B projects, time-line and status of EA:Date of receipt of final draft: N/A

Environmental Review prepared in March 2001.

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5.4. How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EAreport on the environmental impacts and proposed environment management plan?Describe mechanisms of consultation that were used and which groups were consulted?

Extensive consultations with stakeholders groups have taken place in various parts of the country includingstakeholders from the M inistry o f E nvironment, N GOs a nd farmer o rganizations. A workshop was held with anumber of NGO representatives and government specialists to identify major issues and problems, includingenvironmental issues facing rural people and how these problems would be best addressed. Results from theworkshop were supplemented with a background description of agricultural and rural conditions, and currentactivities in Moldova. These two initiatives provided a base upon which a number of assumptions in terms ofprobable agricultural and rural activities to be supported through the project would be made. Also, theEnvironmental Review was carried out on the basis of discussions with the Ministry of Environment.

5.5. What mechanisms have been established to monitor & evaluate the project's impact on the environment?Do the indicators reflect the objectives and results of the EMP?

The CAPMU and the lending institutions will environmentally screen each proposed activity, based on theGuidelines and Environmental Checklist. Where screening indicates that an EIA is required, the lending agency willdirect the proponent to conduct and submit to RISP management an acceptable EIA prior to funding approval. TheCAPMU will have the responsibility for verifying the need for an EIA and advising the project proponent on EIApreparation, and monitoring sub-projects implementation, including ensuring that the sub-projects meet theenvironmental requirements of the country and are consistent with the Bank's guidelines. The CAPMU will includean officer responsible for environmental management, based on EIA Guidelines. This individual, and relevant staffof the PFIs, would be given appropriate training as described in the Guidelines, again supported by APCP.

The following is a preliminary procedure for environmental screening and EIA preparation, review and approval:* application for line of credit is submitted to the lending institution;* lending institution based on an Environmental Check List, determines whether or not the activity will require an

EIA;* if EIA is needed, application is forwarded to CAPMU management for confirmation;* responsible officer reviews application and verifies need for an EIA;* if EIA is required loan applicant is informed;* if the applicant wishes to proceed he carries out an EIA (guidelines to be provided) and submits EIA to

CAPMU through lending institution;* CAPMU reviews EIA and suggests revisions and eventually approves or rejects project on the basis of the EIA;* if approved, CAPMU will monitor the activity to ensure that it is in full compliance with the management plan.

Monitoring. Frequent monitoring by the Bank and CAPMU will be required to ensure that mitigation is carried outand to also determine whether or not additional impacts, not identified in this environmental review, have not beenoverlooked. Monitoring will be carried out on a systematic basis by the project management team or its designate(e.g. a local environmental consultant). A detailed monitoring procedure will be developed and the individual(s)responsible would receive training in monitoring techniques. The World Bank should also include an environmentalspecialist on the occasional supervisory mission to ensure that environmental monitoring is being conductedeffectively and that monitoring results are being acted upon.

Training. The MEPTD is responsible for administering the Law on Environmental Protection. However, apartfrom complex and potentially dangerous projects, this law does not address the need for ELAs on most projects.Thus, RISP management staff and lending agencies' staff will require various levels of environmental managementtraining, to be provided under the Project based on the EIA Guidelines.

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Appendix 2. APCP Environmental Management Plan.

Table 1. Environmental Management Plan for Moldova ACPC Project: Environmental Impacts.

Issues Anticipated/Potential Effects on Environment Actions or Mitigation MeasuresEnvironmental Impacts

Surface i) Surface water quality will i) Increased quality and i) Develop and implement improvedwater improve with the reduction in availability of Danube River manure management andquality nitrogen and phosphorus from water and Black Sea coastal environmentally sound agricultural

cattle, pigs, sheep/goats and poultry waters will result in increased management practices in Lapusnamanure disposal sites. Agricultural use of beaches by public and County of the Lapusna River basin.areas treated with organic and increased harvest of better ii) Undertake a rigorous surface waterinorganic fertilisers, as better quality fish. quality monitoring programme fornutrient management practices will ii) Increased utility of water Lapusna River and other surface waterbe implemented by the project. for downstream users and bodies that drain into Danube River toii) Water draining into Lapusna, fisheries if any. establish a baseline database of thePrut and Danube Rivers improves. quality of surface waters, lakes,iii) Overall effects on the quality of wetlands and the Danube River asDanube river will be positive. affected by better agricultural and

Probability of occurrence: High manure management practices.Ground- i) Reduction in nutrient leaching to i) Increased quality and i) Implement environmentally soundwater groundwater quality will occur with availability of groundwater for agricultural and manure management

the introduction of better manure human and animal practices in the project area.storage and handling, and nutrient consumption. ii) Implement wellhead protectionmanagement practices. ii) Groundwater is the main programmes for rural drinking wells.ii) Quality of drinking water source of drinking water for iii) Establish extensive groundwatersupplies will improve with the rural population and decreased monitoring programme in the highlyreduction of nitrate and bacteria in levels of nitrate and bacteria in intensive agricultural and animalgroundwater as a result of water will reduce water borne production areas to determine the effectcollecting manure from individual diseases in Lapusna region of better nutrient management practices.farmer's homesteads and storing in such as nitrate poisoning and iii) Monitor groundwater quality incommunal platforms. acute diarrhoea. piezometers and wells in areas with

improved agriculture and animal wasteProbability of occurrence: High management systems

Soil With the introduction of better Better productive lands with Undertake soil monitoring of selectedQuality farming systems, soil quality will increased organic matter and areas to establish the effect of better

improve, erosion decreased carbon sequestration, reduce farming systems on soil erosion and soilProbability of occurrence: High humus and soil loss. and water quality.

Wetland With the re-establishment of a Decrease of N & P, and faecal Undertake monitoring of water qualityestablish- wetland in the lower reaches of the matter flowing into the and flora and fauna.ment Lapusna and Prut rivers will act as Danube basin.

a filter for chemical and faecal More sustainable use ofmaterial. Increase in the flora/fauna habitat.Probability of occurrence: High

Bio- Increased biodiversity will occur Increased biodiversity and Observe impact on new plant anddiversity because of better manure migratory bird population. animal populations, and soil worm and

management systems, introduction microbial activity. Measure effects onof conservation tillage systems, soil organic matter and carbon contents,forest areas, buffer strips etc. and possibly water quality.

Probability of occurrence: High

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i

ii

Ii

ii

ii

i